City Council

Mayor Cal Sheehy Lake Havasu City Vice Mayor Jeni Coke Police Facility Councilmember Nancy 2360 McCulloch Blvd North Campbell Lake Havasu City, Arizona Councilmember Jim Dolan 86403 Councilmember David Lane www.lhcaz.gov Councilmember Michele Lin Councilmember Cameron City Council Regular Meeting (Tentative Budget & CIP Adoption) Moses Minutes - Final Tuesday, June 8, 2021 6:00 PM 1. CALL TO ORDER Mayor Sheehy called the meeting to order at 6:00 p.m. Mayor Sheehy announced that members of the public can attend in-person or watch or listen to the meeting on Channel 4, or live stream on the City’s website. He added that public comments are being accepted by emailing the City Clerk at cityclerk@lhcaz.gov at least one-hour prior to the posted start time of the meeting. 2. INVOCATION: Stephanie Lueras, Community Presbyterian Church Ms. Stephanie Lueras, Community Presbyterian Church, gave the invocation. 3. PLEDGE OF ALLEGIANCE: Western Welcome Club of Arizona The Mayor led in the Pledge of Allegiance. 4. ROLL CALL Present: 5- Mayor Cal Sheehy, Vice Mayor Jeni Coke, Councilmember Nancy Campbell, Councilmember David Lane and Councilmember Cameron Moses Absent: 2- Councilmember Jim Dolan and Councilmember Michele Lin 5. CALL TO THE PUBLIC There were no requests to address the Council. 6. CONSENT AGENDA 6.1 ID 21-2853 Approve the May 25, 2021, City Council Regular Meeting Minutes (Kelly Williams) 6.2 ID 21-2837 Adopt Resolution No. 21-3504 Accepting Dedication of an 8-Foot Public Utility and Drainage Easement for 2100 Holly Avenue, Along the Easterly Property Line of Tract 2307, Block 7, Lot 7A (Luke Morris) 6.3 ID 21-2667 Adopt Resolution No. 21-3508 Approving an Intergovernmental Agreement Lake Havasu City Page 1 Printed on 6/25/2021 City Council Minutes - Final June 8, 2021 with Mohave County for Housing Rehabilitation Inspection Services (Holly Morin) 6.4 ID 21-2849 Adopt Resolution No. 21-3509 Ratifying the City Manager’s Execution of Lease Addendum No. 4 to the Lease Agreement with the Arizona Department of Transportation for a Portion of the Havasu Traffic Signal Maintenance Yard Located at 2400 Sweetwater Avenue (Greg Froslie) 6.5 ID 21-2848 Approval of Contract for Sale/Donation, Indemnification and Hold Harmless Agreement with Plainfield Fire Protection District for the Donation of a Stryker Powerload and Stryker Power-PRO XT Cot (Chief Pilafas) 6.6 ID 21-2836 Recommendation of an Off-Track Pari-Mutuel Wagering License Renewal for Quality Inn & Suites, 271 Lake Havasu Avenue South / Turf Paradise (Kelly Williams) 6.7 ID 21-2854 Call for Executive Session Pursuant to A.R.S.§ 38-431.03(A) 5:00 p.m. Tuesday, June 22, 2021 (Kelly Williams) Vice Mayor Coke moved to approve the Consent Agenda as presented, seconded by Councilmember Lane, and carried by the following vote: Aye: 5 - Mayor Sheehy, Vice Mayor Coke, Councilmember Campbell, Councilmember Lane and Councilmember Moses Absent: 2 - Councilmember Dolan and Councilmember Lin 7. CORRESPONDENCE, COMMUNICATIONS, PETITIONS, ANNOUNCEMENTS, CITY MANAGER REPORT 7.1 ID 21-2838 Fiscal Year 2020-21 3rd Quarter Contracted Agency Reports (Chief Doyle) Mayor Sheehy noted that this item is for informational purposes only. 7.2 ID 21-2844 Announce Vacancies on Lake Havasu City Boards, Committees, and Commissions (Kelly Williams) City Clerk Kelly Williams announced the current and upcoming vacancies on various Lake Havasu City Boards, Committees, and Commissions. She added that applications are available at City Hall and on the City’s website at www.lhcaz.gov. 7.3 ID 21-2852 City Manager’s Report (Jess Knudson) City Manager Jess Knudson reported on the following: • Recognized the Lake Havasu Administrative Services Department for receiving the Government Finance Officers Association (GFOA) Distinguished Budget Lake Havasu City Page 2 Printed on 6/25/2021 City Council Minutes - Final June 8, 2021 Presentation Award. • The Lake Havasu City Transit Division received a generous donation of $80,000 from the Wicke family. • Reported on various proclamations and events. • COVID-19 update. 8. PUBLIC HEARINGS 8.1 ID 21-2828 Series #10 Beer & Wine Store Liquor License, Hava Gas LHC, 2085 Palo Verde Boulevard North/Sohal (Kelly Williams) Ms. Williams advised that Rajinder Sohal has applied for a Series #10 Beer and Wine Store Liquor License for Hava Gas LHC, located at 2085 Palo Verde Boulevard North. She said all posting requirements have been met, all fees have been paid, and no objections were received. Ms. Williams added that the location is properly zoned for a beer and wine store liquor license. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing and added that no written public comments were received. Councilmember Lane moved to recommend that the Arizona Department of Liquor Licenses & Control approve a Series #10 beer & wine store liquor license for Hava Gas LHC, 2085 Palo Verde Boulevard North, seconded by Councilmember Campbell, and carried by the following vote: Aye: 5 - Mayor Sheehy, Vice Mayor Coke, Councilmember Campbell, Councilmember Lane and Councilmember Moses Absent: 2 - Councilmember Dolan and Councilmember Lin 8.2 ID 21-2830 Adopt Resolution No. 21-3505 Amending Resolution No. 20-3417 Transferring Budget Appropriations from One Fund, Department, or Division to Another for Fiscal Year 2020-21 (Jill Olsen) Administrative Services Director Jill Olsen advised that this item is the amendment of the current Fiscal Year (FY) 2021-21 budget. She explained that historically the Council adopts amendments throughout the year; however, with only minor housekeeping items the first half of the year, staff combined all amendments and adjustments for this fiscal year for Council approval. She said the amendments do not increase the budget but allow for transferring of budget appropriations from one fund, department, or division to another. Ms. Olsen reviewed the amendments and Mayor Sheehy noted that there were a total of 11 budget fund transfers. Councilmember Campbell asked if the funds are transferred from a savings account line Lake Havasu City Page 3 Printed on 6/25/2021 City Council Minutes - Final June 8, 2021 item, to which Mayor Sheehy explained that the funds are transferred from savings within the same department. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing and added that no written public comments were received. Councilmember Moses moved to adopt Resolution No. 21-3505 amending Resolution No. 20-3417 approving the transferring of budget appropriations from one fund, department, or division to another as listed on the amended Schedules D, E, and F for Fiscal Year 2020-21, seconded by Vice Mayor Coke, and carried by the following vote: Aye: 5 - Mayor Sheehy, Vice Mayor Coke, Councilmember Campbell, Councilmember Lane and Councilmember Moses Absent: 2 - Councilmember Dolan and Councilmember Lin 8.3 ID 21-2845 Adopt Resolution No. 21-3506 Adopting the Five-Year Capital Improvement Plan (CIP) for Fiscal Years 2022-26 (Jill Olsen) Ms. Olsen advised that this item is the adoption of the Capital Improvement Plan (CIP) for FY 2022-26. She explained that there have been no changes to the five-year CIP since the April 22 and May 13 CIP work sessions. She said the five-year CIP plan totals $63.9 million, with $34.8 million identified for FY 2021-22, and added that all projects in the five-year CIP plan are fully funded. Ms. Olsen summarized the CIP projects for FY 2021-22 as follows: • Airport: $9,849,442 o Taxiway Alpha Pavement, Rehab & Reconstruct Taxiway, Safety Area • Drainage: $3,766,667 o Havasupai Wash 3, Avalon Drain 2 • General Government: $3,501,396 o Downtown Catalyst, Transit Transfer Station, London Bridge Lighting, PD Fuel Facility, Courthouse • Parks: $2,200,000 o HVAC Aquatic Center • Streets: $1,200,000 • Wastewater: $8,225,000 o 8” Ductile Iron Force Main, Chip Dr. Lift Station, Island Treatment Plant Flow Equalization, Mulberry Treatment Plant Aeration Basin, Master Plan • Water: $6,082,910 o Tank & Booster Station Improvements, Water Main Replacements, Well Drilling & Backup Water Supply Lake Havasu City Page 4 Printed on 6/25/2021 City Council Minutes - Final June 8, 2021 Councilmember Campbell asked if some of these projects are federally funded, to which Ms. Olsen explained that there are a variety of funds including grant and federal funds for airport and transit projects. Mayor Sheehy added that a majority of the airport projects are funded with federal grant dollars with a small local match from the City. Mayor Sheehy asked if there is $16 million in carry-forwards for FY 2021-22, to which Ms. Olsen explained that a portion of the FY 2021-22 budget is due to carry-forwards from FY 2020-21, additional water and wastewater projects, and a large airport project. Mayor Sheehy opened the public hearing. Ms. Williams read the following written comment received into the record: • Mr. Steve Pardi, citizen There being no further comments, Mayor Sheehy closed the public hearing. Mayor Sheehy said in response to Mr. Pardi’s comments, the Fire Department is requesting funding that will allow the Fire Chief to assist in determining the resources from a fire perspective throughout the entire community. Councilmember Campbell moved to adopt Resolution No. 21-3506 adopting the Five-Year Capital Improvement Plan for the period of July 1, 2021, through June 30, 2026, seconded by Councilmember Moses, and carried by the following vote: Aye: 5 - Mayor Sheehy, Vice Mayor Coke, Councilmember Campbell, Councilmember Lane and Councilmember Moses Absent: 2 - Councilmember Dolan and Councilmember Lin 8.4 ID 21-2846 Adopt Resolution No. 21-3507 Adopting the Fiscal Year 2021-22 Tentative Budget (Jill Olsen) Ms. Olsen advised that this item is to adopt the Fiscal Year (FY) 2021-22 tentative budget which establishes a cap of $195,729,113 for the annual FY 2021-22 budget. She explained that in accordance with State law, items within the total amount may be changed or the amount may be reduced for the final budget scheduled for adoption on June 22, 2021, but may not be increased. She reviewed the changes since the May 13 budget work session as follows: • Added additional $1.8 million to expense for second payment of American Rescue Plan Act (ARPA) funding • Reduce estimated Grant Revenues by $2.4 million due to reduction in amount of funding being received from ARPA • Add additional $3 million in expense for Police Station and Jail Refurbishment Lake Havasu City Page 5 Printed on 6/25/2021 City Council Minutes - Final June 8, 2021 • Add additional $3 million in grant revenues for Direct Appropriation from Congress Grant She said the tentative budget also includes an increase of $16 million in CIP and $8 million in supplemental items due to an increase in sales tax revenues. Mayor Sheehy spoke on the budget cap and total budgeted amount for FY 2021-22. He said the proposed budget before Council is fully funded, fiscally sound, and includes funding in the City’s Budget Stabilization Reserve (BSR) and contingency, proposes no debt financing, and allows the property tax rate to remain flat for the fifth year in a row. Mayor Sheehy opened the public hearing. Ms. Williams read the following written comment received into the record: • Ms. Pat Culhane, citizen Mayor Sheehy said to address Mr. Culhane’s comments; Mohave County is having different discussions regarding their ARPA funds. He said the City is budgeting ARPA funds within the FY 2021-22 cap to ensure that any funding received is budgeted in accordance with State law and used based on the community’s needs and expectations. There being no further comments, Mayor Sheehy closed the public hearing. Vice Mayor Coke moved to adopt Resolution No. 21-3507 adopting the Fiscal Year 2021-22 Tentative Budget, seconded by Councilmember Lane, and carried by the following vote: Aye: 5 - Mayor Sheehy, Vice Mayor Coke, Councilmember Campbell, Councilmember Lane and Councilmember Moses Absent: 2 - Councilmember Dolan and Councilmember Lin 8.5 ID 21-2800 Adopt Ordinance No. 21-1255 Amending City Code Chapter 12.08, Building Codes, to Adopt Designated Updated Editions of Published Building Codes, Declaring as a Public Record the Local Amendments to the Published Building Codes, and Adopting the Local Amendments by Reference; Including the 2018 International Building Code, 2018 International Residential Code, 2018 International Mechanical Code; International Fuel Gas Code, 2018 International Plumbing Code, 2017 National Electrical Code, 2018 International Property Maintenance Code, 2018 International Existing Building Code, and 2018 International Building Code Implementation Standards (Jeff Thuneman) Development Services Department/Building Official Jeff Thuneman said this item is the Lake Havasu City Page 6 Printed on 6/25/2021 City Council Minutes - Final June 8, 2021 adoption of the 2018 Building Code amendments which were introduced at the May 25 City Council meeting. He said the amendments will align Lake Havasu City with the tri-city areas, metropolitan areas, and the Arizona Department of Housing and keep the Lake Havasu City Insurance Services Office (ISO) rating at a “3,” which is important for the community’s homeowner insurance rates. Mr. Thuneman said the City will implement the adoption slowly and allow a transition period of 90 days from the September 1, 2021, effective date. Councilmember Moses asked if any citizens or developers contacted the City with any concerns since the last meeting, to which Mr. Thuneman replied no. Mayor Sheehy added that Mr. Thuneman reached out to the building industry for feedback prior to the May 25 meeting. He said all comments received have been positive, as the changes are more consistent with the tri-city areas. Councilmember Campbell suggested that City staff consider collaborating with the Colorado River Building Industry Association when reviewing future amendments to the building codes. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing and added that no written public comments were received. Councilmember Moses moved to adopt Ordinance No. 21-1255 amending City Code Chapter 12.08, Building Codes, to adopt designated updated editions of published building codes and local amendments by reference effective as of September 1, 2021, in accordance with staff’s implementation plan and declaring the local amendments to the published building codes a public record, seconded by Councilmember Campbell, and carried by the following vote: Aye: 5 - Mayor Sheehy, Vice Mayor Coke, Councilmember Campbell, Councilmember Lane and Councilmember Moses Absent: 2 - Councilmember Dolan and Councilmember Lin 8.6 ID 21-2803 Adopt Ordinance No. 21-1256 Amending Lake Havasu City Code Chapter 12.12, International Fire Code, to Adopt Designated Updated Edition of Published International Fire Code, Declaring as a Public Record the Local Amendments to the Published International Fire Code, and Adopting the Local Amendments by Reference (Scott Hartman) Deputy Fire Chief Scott Hartman said this item is the adoption of the 2018 Fire Code amendments which were introduced at the May 25 City Council meeting. He said at the last meeting there was discussion and questions from the Council regarding the “crowd manager” position and staff has verified that the code does have exceptions allowing the Lake Havasu City Page 7 Printed on 6/25/2021 City Council Minutes - Final June 8, 2021 City the ability to be flexible and control the numbers. He added that he participated in the Crowd Manager Training Class to become certified and said the crowd manager position really emphasized the value of crowd managers in interior locations (indoor events) and the ability to safely evacuate a building. Mr. Hartman said there was also discussion and questions from the Council at the last meeting regarding the new code requirement for existing buildings (A-2 occupancies) with more than 300 people to have fire sprinklers. He said staff confirmed that there are no A-2 occupancies in Lake Havasu City that will be affected. Mayor Sheehy opened the public hearing. Mr. David Diaz, citizen, addressed the Council and asked if the City determined how many crowd managers would be required for outdoor events such as Desert Storm, to which Mr. Hartman explained that the crowd manager position was originally intended for indoor locations but is also applicable to outdoor locations; however, there is flexibility in the code that gives the City the ability to adjust and control the numbers. There being no further comments, Mayor Sheehy closed the public hearing and added that no written public comments were received. Vice Mayor Coke moved to adopt Ordinance No. 21-1256 amending Lake Havasu City Code Chapter 12.12, International Fire Code, to adopt the 2018 edition of the published International Fire Code and the local amendments by reference effective as of September 1, 2021, in accordance with staff’s implementation plan and declaring the local amendments to the International Fire Code a public record, seconded by Councilmember Lane, and carried by the following vote: Aye: 5 - Mayor Sheehy, Vice Mayor Coke, Councilmember Campbell, Councilmember Lane and Councilmember Moses Absent: 2 - Councilmember Dolan and Councilmember Lin 9. CURRENT EVENTS Councilmember Moses gave an update from Go Lake Havasu on budget and event sponsorships, advertising efforts, and upcoming events. He said Go Lake Havasu recently received an award for their “Water, Earth, Air, and Fun” marketing campaign for Lake Havasu City. Mayor Sheehy gave an update from the Mohave County Water Authority and spoke on the anticipation of an official drought and impact to Lake Havasu City, as well as the Drought Contingency Plan renewal, and water needs and conservation efforts. 10. FUTURE MEETINGS Tuesday, June 22, 2021 @ 6:00 p.m. – Regular Meeting (Final Budget Adoption) Lake Havasu City Page 8 Printed on 6/25/2021 City Council Minutes - Final June 8, 2021 Tuesday, July 13, 2021 @ 6:00 p.m. – Regular Meeting (Property Tax Levy Adoption) 11. FUTURE DISCUSSION ITEMS There were no requests from Council for future discussion items. 12. ADJOURN Upon motion by Councilmember Moses and seconded, the meeting adjourned at 6:45 p.m. CERTIFICATION I hereby certify that the foregoing is a full and true copy of the Regular Meeting Minutes of the Lake Havasu City Council held on the 8th day of June, 2021. I further certify that the meeting was duly called and posted, and that a quorum was present. ____________________________________ Kelly Williams, City Clerk/MMC Lake Havasu City Page 9 Printed on 6/25/2021