City Council

Mayor Cal Sheehy Lake Havasu City Vice Mayor Jim Dolan Police Facility Councilmember Nancy 2360 McCulloch Blvd North Campbell Lake Havasu City, Arizona Councilmember Jeni Coke 86403 Councilmember David Lane www.lhcaz.gov Councilmember Michele Lin Councilmember Cameron Moses City Council Regular Meeting Minutes - Final Tuesday, February 8, 2022 6:00 PM 1. CALL TO ORDER Mayor Sheehy called the meeting to order at 6:00 p.m. 2. INVOCATION: Pastor Paul Russin, Redemption Hill Calvary Chapel Pastor Paul Russin, Redemption Hill Calvary Chapel, gave the invocation. 3. PLEDGE OF ALLEGIANCE Ms. Diane Klostermeier, Patriotic Americans for Constitutional Education (PACE), led in the Pledge of Allegiance. 4. ROLL CALL Present: 7- Mayor Cal Sheehy, Councilmember Nancy Campbell, Councilmember David Lane, Councilmember Michele Lin, Councilmember Cameron Moses, Councilmember Jeni Coke and Vice Mayor Jim Dolan 5. CALL TO THE PUBLIC Ms. Karen Vanderjagt, citizen, addressed the council regarding the definition of jurisdiction stating that the constitution gives the City Council jurisdiction as it relates to mandates. She also spoke on the council handbook, violations, and vaccinations. Mr. Nicholas Verdone, citizen, addressed the council and spoke concerning the hotel being built on the corner of Highway 95 and Mulberry Avenue and its close proximity to Body Beach as it is a premier motorsport destination. Ms. Ginger Dodier, citizen, addressed the council and invited Councilmembers Coke, Dolan, and Lin to attend a meet the candidates event being held at BlondZee’s. She wanted to thank the Police Department for keeping the peace during a COVID-19 testing at the balloon festival. Mr. James Gannon, citizen, addressed the council and expressed his concerns regarding the pride event that was held at the London Bridge Resort and added that it does not Lake Havasu City Page 1 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 belong on the City’s website. Ms. Bonnie Toy, citizen, addressed the council requesting that the city lower the fees at the Lake Havasu City Aquatic Center. Mr. David Leslie, citizen, addressed the council and spoke concerning the HIV testing at the pride event. Ms. Frankie Lyons, citizen, addressed the council and asked for clarification on the funding that was set aside for the Springberg-McAndrew (Querio parcel) renovation that is still not completed. She questioned why the city has not applied for the $4 million grant available for infrastructure. Mr. Don Wisdom, citizen, addressed the council and encouraged citizens to be cautious regarding fraud schemes. 6. CONSENT AGENDA 6.1 ID 22-3166 Approve the January 25, 2022, City Council Regular Meeting Minutes (Kelly Williams) 6.2 ID 22-3151 Adopt Resolution No. 22-3555 Ratifying the Submission of a Grant Application to the Federal Emergency Management Agency, Department of Homeland Security (DHS) for the Staffing for Adequate Fire and Emergency Response (SAFER) Grant Program to Hire Additional Firefighters and Authorizing Execution of Necessary Documents and Implementation of the Activities Funded by the Grant (Chief Pilafas) 6.3 ID 22-3159 Approval of the Final Plat for La Casita Condos, 2441 McCulloch Boulevard N., Tract 109, Block 2, Lot 1, Creating an 8-Unit Residential Condominium Subdivision in the Multiple Family (R-M) District (Luke Morris) 6.4 ID 22-3160 Approval of the Final Plat for La Cholla Condos, 2501 McCulloch Boulevard N., Tract 121, Block 2, Lot 1, Creating an 8-Unit Residential Condominium Subdivision in the Multiple Family (R-M) District (Luke Morris) 6.5 ID 22-3161 Approval of the Final Plat for Eagle View Villas, 2659 Jamaica Boulevard S., Tract 2271, Block 2, Lots 8 & 9, Creating a 6-Unit Residential Condominium Subdivision in the Limited Multiple-Family (R-3) District (Luke Morris) 6.6 ID 22-3152 Award Bid for the Purchase of Eleven (11) Thermal Imaging Cameras and Accessory Equipment from United Fire Equipment (Chief Pilafas) 6.7 ID 22-3165 Call for Executive Session Pursuant to A.R.S.§ 38-431.03(A) 5:00 p.m. Tuesday, February 22, 2022 (Kelly Williams) Councilmember Coke moved to approve the Consent Agenda as presented, Lake Havasu City Page 2 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 seconded by Councilmember Lane, and carried by the following vote: Aye: 7 - Mayor Sheehy, Councilmember Campbell, Councilmember Lane, Councilmember Lin, Councilmember Moses, Councilmember Coke and Vice Mayor Dolan 7. CORRESPONDENCE, COMMUNICATIONS, PETITIONS, ANNOUNCEMENTS, CITY MANAGER REPORT 7.1 ID 22-3169 Announce Vacancies on Lake Havasu City Boards, Committees, and Commissions (Kelly Williams) City Clerk Kelly Williams announced the current 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. 7.2 ID 22-3167 City Manager’s Report (Jess Knudson) City Manager Jess Knudson reported on the following: • Announced various achievements, events, and proclamations. • Reminded citizens about the HavasuNOW mobile app. 8. PUBLIC HEARINGS 8.1 ID 22-3174 Class “B” Bingo License Transfer of Location for Friends of the Food Bank/Denekas (Kelly Williams) Ms. Williams advised that Ms. April Sue Denekas has applied for a Class “B” Bingo License transfer of location for Friends of the Food Bank from 510 East Main Street (Quartzsite, Arizona) to 5601 Highway 95, Unit #F606 (The Shops at Lake Havasu). Ms. Williams noted that the application was reviewed internally and no objections were received. Mayor Sheehy asked if the funds or proceeds are directed towards the Friends of the Food Bank in Quartzsite and how the funds are differentiated between Quartzsite and Lake Havasu City. Ms. Courtney McKinney, representing the applicant, addressed the council and said that they use non-profit bingo licenses at the facility and give back part of the proceeds. She said that she was unsure about the financials and would have Ms. Denekas reach out to answer any questions. Vice Mayor Dolan stated that he was concerned with a company using a 501(C)(3) located out of town and was unsure on how this process works. Ms. McKinney said she would have Ms. Denekas reach out to the council with further Lake Havasu City Page 3 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 information because she was unsure on the financials. Ms. Williams explained that the request is for a transfer of location. She said this location currently has a bingo license that requested a transfer of location in 2020. She said the applicant is requesting to transfer an existing bingo license to this location. Vice Mayor Dolan requested the City Council table the item for more information from the applicant. Mayor Sheehy asked what the process would look like if the City Council disapproved or tabled the item, to which Ms. Williams said a recommendation of disapproval would be forwarded to the Arizona Department of Revenue. She said if the City Council has questions for the applicant, the item could be tabled for more information. Mayor Sheehy opened the public hearing. Ms. Frankie Lyons addressed the council and said she is part of Veterans United of Arizona that has a 501(C)(3) and is applying for the same type of license. Ms. Lyons added that the non-profit receives 30 percent which is controlled by the state and not the individual. There being no further comments, Mayor Sheehy closed the public hearing. Councilmember Campbell said the state regulates these licenses and revenues generated are given back to the communities. Councilmember Moses moved to table Agenda Item 8.1, seconded by Councilmember Lane, and carried by the following vote: Aye: 6 - Mayor Sheehy, Councilmember Lane, Councilmember Lin, Councilmember Moses, Councilmember Coke and Vice Mayor Dolan Nay: 1 - Councilmember Campbell 8.2 ID 22-3137 Series #9 Liquor Store Liquor License, Bashas’ #116, 3269 Maricopa Avenue #120/Basha (Kelly Williams) Ms. Williams advised that Michael Joseph Basha has applied for a Series #9 Liquor Store Liquor License for Bashas’ #116, located at 3269 Maricopa Avenue. She said all posting requirements have been met, all fees have been paid, and no objections were received. She added that the location is properly zoned for a Series #9 liquor license. Mayor Sheehy opened the public hearing. There being no comments, he closed the public Lake Havasu City Page 4 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 hearing. Councilmember Lane moved to recommend that the Arizona Department of Liquor Licenses & Control approve a Series #9 liquor store liquor license for Bashas’ #116, 3269 Maricopa Avenue #120, seconded by Councilmember Coke, and carried by the following vote: Aye: 7 - Mayor Sheehy, Councilmember Campbell, Councilmember Lane, Councilmember Lin, Councilmember Moses, Councilmember Coke and Vice Mayor Dolan 8.3 ID 22-3138 Series #9 Liquor Store Liquor License, Food City #108, 1831 Kiowa Avenue/Basha (Kelly Williams) Ms. Williams advised that Michael Joseph Basha has applied for a Series #9 Liquor Store Liquor License for Food City #108, located at 1831 Kiowa Avenue. She said all posting requirements have been met, all fees have been paid, and no objections were received. She added that the location is properly zoned for a Series #9 liquor license. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Vice Mayor Dolan moved to recommend that the Arizona Department of Liquor Licenses & Control approve a Series #9 liquor store liquor license for Food City #108, 1831 Kiowa Avenue, seconded by Councilmember Moses, and carried by the following vote: Aye: 7 - Mayor Sheehy, Councilmember Campbell, Councilmember Lane, Councilmember Lin, Councilmember Moses, Councilmember Coke and Vice Mayor Dolan Mayor Sheehy advised that the agenda would be reordered to allow Agenda Item 8.10 to be heard next. 8.10 ID 22-3149 Adopt Ordinance No. 22-1282 Approving a Planned Development Rezone Amending the Approved Development Plan of PD-02-003 for 1975 Daytona Drive, Tract 2313, Block 1, Lot 1, in the Single-Family Residential/Planned Development (R-1/PD) District, Adding a School Building and a Gymnasium (Luke Morris) Planning Division Manager Luke Morris advised that the subject property is just over 8-acres located on Daytona Avenue and currently has three buildings on the lot including a 23,000 square-foot church, 12,400 square-foot education building, and 4,300 square-foot pavilion (currently under construction). He said the abutting properties are zoned Single-Family Residential (R-1) and developed with a mix of homes and a few vacant lots. Mr. Morris explained that in 2002, the property was zoned Limited Multiple-Family (R-3) and rezoned to Light Agricultural/Planned Development (A-1/PD) by an ordinance to Lake Havasu City Page 5 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 allow a new church building and a total of three buildings on the site and allow buildings up to 40-feet in height. He said in 2016, the Development Code was updated, eliminating the A-1 zoning district, which reclassified this property from A-1/PD to R-1. Mr. Morris said the allowances and conditions under the previous A-1 planned development still apply and include building height up to 40-feet and a total of up to three buildings. He said a PD amendment is required because the staff report from the 2002 rezone suggested that the site is limited to the church and two other buildings unless additional public hearings are held and public notice is given. Mr. Morris reviewed the site plan with existing church, educational building, and pavilion (currently under construction). He said the two proposed buildings include a 26,000 square-foot two-story school building and 10,500 square-foot gymnasium. He said the proposed structure is approximately 50-feet from the abutting property lines and the parking calculations meet the development code requirements (of 325 parking spaces) with 399 proposed parking spaces. He stated that the building elevations provided for the school building is approximately 30-feet with no windows facing the residential properties along Greentree Drive. Mr. Morris noted that the building elevations for the gymnasium were not provided. He added that the Planning and Zoning Commission (“Commission”) heard this request at their January 5, 2022, meeting and recommended approval 6 to 0. Mr. Morris stated that the applicant submitted a revised site plan to the city today. Father Chauncey Winkler, Our Lady of the Lake Catholic Church, addressed the council and said the site plan was revised from a two-story building to a one-story building keeping the same footprint of the building that would allow enough space and classrooms in the future. Father Chauncey said the revisions were based on building costs and wanting to be good neighbors and attend to any neighbor concerns. Mr. Rob Sampson, Selberg & Associates, addressed the council and said when the public meetings were held it was discovered that the building was too tall and did not fit in a residential neighborhood. He added that the plan was approved by the Commission; however, they are requesting to have a one-story building as opposed to a two-story building. He said Phase 2 of the project is a future goal, and Phase 1 of the project is the same site plan that Mr. Morris displayed with the same footprint except the entry. Mayor Sheehy asked if the two-story building in Phase 1 would be built first, to which Mr. Sampson said it would be a single-story building. Mayor Sheehy asked if Phase 2 (multi-purpose building) would be located in front, to which Mr. Sampson said yes with an approximate completion date in five to ten years. Mayor Sheehy asked if the building facing to the west would still not have any windows, to which Mr. Sampson replied yes. Councilmember Moses asked if this would expand services and allow greater capacity, to Lake Havasu City Page 6 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 which Father Chauncey said yes. He said the original plan has been to bring the school up to 8th grade and have been adding a new grade every year. Councilmember Moses asked about traffic patterns, to which Mr. Morris there was discussion during the Commission meeting that traffic would not be a major impact with the number of students. Councilmember Lin asked if there were any outdoor spaces for the children to play, to which Father Chauncey said there is a playground towards the back of the building and an outdoor space facing the west side of the building. Councilmember Lin asked if the area would be fenced in, to which Father Chauncey replied yes. Councilmember Lane asked how many students are currently enrolled and how many students they anticipate once fully built-out, to which Father Chauncey said they currently have 90 students with a projection of 250 students. Councilmember Lane asked if all grades start and end at the same time, to which Father Chauncey replied yes. Mayor Sheehy stated that the flow of the new proposed plan is better; however, it is not ordinary to change plans without public input. Councilmember Campbell asked how many people attend church on Sundays, to which Father Chauncey said this time of year approximately 3,000, and half in the summer. Mayor Sheehy opened the public hearing. Mr. Dante Marinelli, citizen, addressed the council and said he is on the building community for this project and spoke concerning their timeline and setbacks if the revised plan is not approved. He stated that they were approved by the Commission for a two-story building and the revised plan reduces it to a one-story building. There being no further comments, Mayor Sheehy closed the public hearing. Mr. Morris stated that the revised plan is a slight change from what the Commission approved; therefore, staff is recommending that the process go back to the Commission for their review and approval. Mr. Morris said if the council approves this item, staff suggests possible changes to Conditions #1 and #4 within the motion as follows: Condition #1 “The development shall substantially match the Site Plan provided at the City Council Meeting” and Condition #4 “Building height for any new structure shall not exceed (number) of feet.” Mr. Morris said he does not know what height the applicant will Lake Havasu City Page 7 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 request or need for the new building; therefore, the Council has the option to put a condition, other than 30-feet, on the height or state that it shall not exceed one-story. He said the remaining conditions within the motion could stay the same. Mayor Sheehy said he is in favor of the public’s input and what was presented to the Commission. He stated that he understands staff’s recommendation of proposed changes to Condition #1 and would be in favor of changing Condition #4 to include “one-story” for the height allowance if that will accommodate the needs of a gymnasium/multi-purpose room. He noted that the 30-feet as noted in the original plan was palatable by the neighbors. Councilmember Campbell requested clarification on the motion to move forward with the revised plan. City Attorney Kelly Garry said the council could make the motion that Mr. Morris suggested and clarify that it is not the site plan that was part of the original request and was presented to council at the meeting tonight. She added that the council could also make a motion to change the height. Ms. Garry said because staff just received the revised site plan this morning it has not been sufficiently reviewed by staff, has not been reviewed by the Commission, has not gone to a citizens’ meeting for input, and has not been to a public hearing before the Commission. There was discussion regarding the previously approved building height of 30-feet for the two-story building. Councilmember Campbell said the City Council could motion to approve the revised site plan with a height allowance of 30-feet. Vice Mayor Dolan asked if there were any public comments or concerns at the Commission meeting, to which Mr. Morris said there was one concern from a neighbor regarding privacy as the church sits higher than the neighbor’s backyard. Father Chauncey stated that there is no fence on that side of the property; however, there will not be any windows on that side of the building. There was discussion on the original site plan with proposed school location in the same location as the revised plan. Mr. Morris said the original site plan would work for their proposed building if they wanted to move forward with it today. He said they could come back later to amend the site plan for the gymnasium location. Father Chauncey said the original site plan would work for them right now; however, he does not want to limit their options in the future. Vice Mayor Dolan asked if this option would require any changes to the motion. Mr. Morris said all conditions could remain unchanged per staff’s recommendation. He added that the location of the proposed school building is within tolerance of design review for a Lake Havasu City Page 8 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 site plan. He said six or eight feet is not a large difference and he would consider it the same as the site plan. Mayor Sheehy stated that the applicant could begin the process for approval for Phase 2 right away if they wished to do so without having to wait four to five years. Ms. Garry noted that going back through the process will be more costly for the applicant. She said the best scenario would be for the City Council to direct it back to the Commission which is not an additional cost for the applicant and staff could expedite the process. Mr. Morris reviewed the timelines for publication and hearing and said if expedited, a hearing before the City Council could possibly be scheduled at last meeting in March or first meeting in April. Mr. Sampson said they have a very ambitious schedule and losing a month would be a detriment. Councilmember Moses asked what the application costs would be, to which Mr. Morris said $2,500. Father Chauncey said the application fee would not be an obstacle. Mr. Marinelli asked if they could move forward with the revised site plan as proposed with the understanding that the project could stop if the city felt that they were not adhering to what was approved. He said they have gone through the public input process and are proposing to be further away from the street, to connect the buildings for security, and reduce the height from a two-story building to a one-story building. Vice Mayor Dolan asked if the City Council has the authority to approve the changes, to which Ms. Garry said that is a good question. She spoke on the fundamentals of the process and if the City Council respects the process and laws in the City Code. Councilmember Lane said the city has rules in place and the City Council needs to respect the process. Councilmember Campbell moved to approve Ordinance No. 22-1282, a planned development rezone amending the approved development plan of PD-02-003 for 1975 Daytona Drive, Tract 2313, Block 1, Lot 1, in the Single-Family Residential/Planned Development District, adding a school building and a gymnasium, with the following conditions: 1. The development shall substantially match the Site Plan provided on 2/8/2022, Lake Havasu City Page 9 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 4. Building height for any new structures shall not exceed 30 feet, The motion was seconded by Councilmember Lin. Councilmember Lin asked if there were any concerns with the other conditions, to which Ms. Garry said she does not believe there were any issues with the other conditions which are necessary for moving forward. She said those conditions are established and should be included in the motion. Mr. Morris reviewed the original site plan and revised site plan. Mr. Morris said the motion on the floor is to approve the site plan provided tonight and keep the building height at 30-feet. Ms. Garry advised that Condition #2 is only for the future. Councilmember Lin requested clarification that the motion on the floor does not bring the revised floor plan before the public, to which Ms. Garry replied that was correct. Mayor Sheehy called for a vote on the motion on the floor. Motion failed by the following vote: AYE: 2 – Campbell and Lin. NAY: 5 – Coke, Dolan, Lane, Moses, and Sheehy. There was discussion regarding the motion and conditions recommended by staff. Vice Mayor Dolan moved to approve Ordinance No. 22-1282, a planned development rezone amending the approved development plan of PD-02-003 for 1975 Daytona Drive, Tract 2313, Block 1, Lot 1, in the Single-Family Residential/Planned Development District, adding a school building and a gymnasium, with the following conditions: 1. The development shall substantially match the Site Plan provided with the request, 2. The site is limited to those buildings shown on the Site Plan, unless approved in the future after additional public hearings are held and public notice given, 3. The new buildings shall be set back at least 50 feet from the property lines, 4. Building height for any new structures shall not exceed 30 feet, 5. Windows providing views of the abutting residential properties shall not be located on the northwest portion of the new buildings, and 6. Design Review for compliance with the Development Code and the conditions Lake Havasu City Page 10 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 of this approval shall be required for the project prior to building permit issuance. Seconded by Councilmember Moses, and carried by the following vote: Aye: 2 - Councilmember Campbell and Councilmember Lin Nay: 5 - Mayor Sheehy, Councilmember Lane, Councilmember Moses, Councilmember Coke and Vice Mayor Dolan 8.4 ID 22-3156 Introduce Ordinance No. 22-1284 Amending City Code Chapter 9.32, Discharge of Firearms, to Conform to A.R.S. § 13-3107 (Chief Doyle) Police Captain Troy Stirling advised that the proposed ordinance is to amend City Code Chapter 9.32, Discharge of Firearms, to align with Arizona Revised Statues § 13-3107(C) (3). Captain Stirling explained that the city previously adopted an ordinance that restricted the discharging of a firearm within one-fourth of a mile of an occupied structure without the consent of the owner or occupant of the structure in accordance with state statute. He said the proposed amendments would update the definition of an occupied structure and match the definition outlined in state statute. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Lane moved to introduce Ordinance No. 22-1284 to amend City Code Chapter 9.32, seconded by Councilmember Moses, and carried by the following vote: Aye: 7 - Mayor Sheehy, Councilmember Campbell, Councilmember Lane, Councilmember Lin, Councilmember Moses, Councilmember Coke and Vice Mayor Dolan 8.5 ID 22-3173 Adopt Ordinance No. 22-1279 Amending City Code § 9.16.160, Aircraft and Parachute Landings and Takeoffs, to Clarify Landing and Takeoffs and to Allow Commercial Parachuting and Hot Air Ballooning with a Permit (Damon Anderson) Ms. Garry said there was a lot of discussion on the introduction of this ordinance at the last Council meeting and staff was directed to bring this ordinance back for adoption and discuss helicopters separately and in more detail. Ms. Garry stated that during staff’s review it was discovered that “parachutes” was inadvertently left out of the ordinance; therefore, staff is requesting to include “parachutes” in the first sentence. She added that staff recommends adoption of the ordinance with the inclusion of the word “parachutes” in the first sentence. Mr. Knudson added that Airport Manager Damon Anderson would be discussing this item at the Terminal Talk at the airport to generate more conversation regarding helicopters. Lake Havasu City Page 11 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 Mr. Knudson noted that the inclusion of “parachutes” in the first sentence would eliminate the random chance of recreational skydiving activity and include unauthorized uses. Mayor Sheehy said the discussion at the last meeting would allow for an operator to get a permit and allow this operation to occur from the airport and for commercial hot air ballooning. He added that more discussion on helicopters would happen through a separate process. There was discussion regarding the safety of hot air balloons. Mayor Sheehy said the suggested motion proposed at the last council meeting was to discuss commercial hot air ballooning. He said this ordinance addresses aircraft and parachute landings and takeoffs and allows for commercial parachuting and hot air ballooning with a permit. Mayor Sheehy opened the public hearing. Mr. Morgan Braden, citizen, addressed the council and said he is a commercial pilot and has been flying hot air balloons for almost 40 years. Mr. Braden said hot air ballooning is very safe and is controlled by the Federal Aviation Administration (FAA) which requires a commercial pilot’s license. Councilmember Campbell asked if anyone could fly a hot air balloon recreationally, to which Mr. Braden replied no, an FAA pilot’s license is required. Mr. Don Wisdom addressed the council and asked if there is a designated landing zone for parachutes, to which Mayor Sheehy said this item clarifies a location and landing zone within the city. There being no further comments, Mayor Sheehy closed the public hearing. Vice Mayor Dolan moved to adopt Ordinance No. 22-1279 Amending City Code § 9.16.160, Aircraft and Parachute Landings and Takeoffs to add parachutes to the first sentence to include that in the aeronautical activity that requires a special event permit, seconded by Councilmember Coke, and carried by the following vote: Aye: 7 - Mayor Sheehy, Councilmember Campbell, Councilmember Lane, Councilmember Lin, Councilmember Moses, Councilmember Coke and Vice Mayor Dolan 8.6 ID 22-3147 Adopt Ordinance No. 22-1280 Approving a Planned Development Rezone for 3702 Indian Hills Drive and 3641 & 3651 Buena Vista Avenue, Tract 2208, Block 13, Parcel L and Tract 2217, Block 9, Lots 3 & 4, from Residential Single-Family (R-1) District and Lake Havasu City Page 12 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 Limited Multiple-Family (R-3) District to Limited Multiple-Family/Planned Development (R-3/PD) District not to Exceed 6.99 Units Per Acre (Luke Morris) Mr. Morris advised that the subject property is located on Buena Vista Avenue between Oro Grande Boulevard and McCulloch Boulevard South, across from Fire Station No. 3 and vacant Lake Havasu Unified School District property. He said the subject property totals 5.76-acres, the larger parcel (Parcel L) is approximately 5-acres in size and consists of a large flag lot, and the two additional lots off Buena Vista Avenue are approximately 0.3 and 0.4-acres in size. He said the combined properties have a 30-foot access off Indian Hills Drive and 185-feet of frontage along Buena Vista Avenue. Mr. Morris said the property is currently zoned Single-Family Residential (R-1) and Multiple-Family (R-3) and reviewed the surrounding zoning. Mr. Morris reviewed the conceptual plan and rendering submitted by the applicant proposing 40 detached single-family units with private streets with the main access point off Buena Vista Avenue and secondary/emergency access off Indian Hills Drive. He said it is anticipated that the dwelling units would be offered for sale as townhome/condominium units with a pool, cabana, internal driveways, and parking areas as part of the condominium common areas. He said the project will be subject to the design review approval process prior to building permit issuance and the condominium plan review process prior to creation of the condominium subdivision. The Commission recommended denial with a vote of 6-0 at their January 5, 2022, meeting with a consensus from the Commission that the proposed unit density was not an appropriate fit for this area. Mr. Morris said on January 18, 2022, the City Clerk’s Office received a written protest opposing the proposed request which meets the required threshold, as determined by the number of lots and square footage, requiring a majority vote of six councilmembers to approve the request. Councilmember Lin asked how many single-family residential homes could be built on a parcel this size, to which Mr. Morris said in the R-1 zoning district, the minimum square footage is 10,000-square foot per property with a 60-foot frontage and minimum 120-feet deep; however, the shape of this parcel is unique making it more difficult to determine lot configuration. Mr. Morris said he would suggest the density would be 4 to 6 units per acre; therefore, depending on design and size, the developer may be able to fit approximately 10 to 12 full-size R-1 lots. Mr. Morris explained that this request went before the Commission several years ago with a recommendation of denial. He said it was scheduled for City Council action; however, the developer at that time withdrew the request. Mr. Sam Woods, applicant, addressed the council and spoke on workforce housing issues and current housing market statistics in Lake Havasu City. He said he is not proposing to build tiny-homes, but to expand the development to address workforce housing needs. Lake Havasu City Page 13 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 Mr. Woods showed a conceptual drawing and said without much permission he could build approximately 14 single-family residential houses on the larger parcel with the only access off Indian Hills Drive, and 20 two-story units on the two parcels along Buena Vista Avenue with the only access off Buena Vista Avenue. He said doing this would not be ideal, would be a mess, and would not be the type of development that he would want to put his name on which is why he is requesting a rezone to R-3 to build a development that will enhance the community. Councilmember Lin asked staff if the applicant could build 14 single-family residential houses under the current zoning, to which Mr. Morris said staff is seeing this design for the first time and has not had time to review or determine dimensions. Mr. Woods stated that what is shown is close to what he can do today. Mayor Sheehy asked if Mr. Woods was proposing to change his request from 40-units to 14 single-family houses, to which Mr. Woods replied no. He said he is only showing the City Council what he can do today under the current zoning which does not make sense in terms of traffic flow on Indian Hills Drive. Mayor Sheehy requested clarification if the current zoning would allow for 14 single-family residential houses to be built, to which Mr. Woods replied yes and added that the property along Buena Vista Avenue is currently R-3 which would allow him to build as many units as he could fit. Councilmember Campbell asked the applicant when he purchased this property, to which Mr. Woods replied that he purchased the larger parcel right after he purchased the property along Buena Vista Avenue. Councilmember Campbell asked how many developments he has built in Lake Havasu City, to which Mr. Woods replied approximately five, with eight to ten currently being developed. Councilmember Campbell said these developments are adding to the inventory which is currently experiencing a supply-and-demand issue. She questioned why the Commission denied this request being across the street from other R-3 properties with multiple access points. She asked Mr. Woods if he was planning to fence the property, to which Mr. Woods replied yes. Mr. Woods stated that there is a high demand for these types of properties and outlined the following in his presentation: current zoning, zoning clarification, landominiums, neighborhood concerns, parking, and displayed a rendering of the proposed development and pictures of his other developments throughout the community. Mr. Woods said this project is unique as the larger parcel is connected to R-3 zoning. There was discussion regarding staff’s recommendation and the recommendation of denial Lake Havasu City Page 14 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 from the Commission. Councilmember Moses asked about the total width of the two access points, to which Mr. Woods replied that the main access point on Buena Vista Avenue is 65-feet wide (two lanes) with an emergency access point on Indian Hills Drive. Councilmember Moses asked how they plan to restrict the access point on Indian Hills Drive to emergency vehicles only, to which Mr. Woods said it would be restricted through the Homeowners Association (HOA). Councilmember Moses requested additional information from the Fire Department regarding the proposed access point for emergency vehicles. Fire Chief Peter Pilafas said the conceptual plan presented has not been reviewed by staff; however, with one-way in and out the proposed development would be recommended for fire sprinklers. He said the location of the proposed development is across the street from a fire station; therefore, he does not know why the emergency access point would be off Indian Hills Drive, but that access point could be used for additional units. Councilmember Moses asked about the width of the streets within the development, to which Mr. Woods replied that he did not have the specifications as what he is proposing is only a conceptual plan, but the streets would be two-way. There was discussion regarding the required width for emergency access. Mr. Morris explained that the proposed development, if approved, would go through the subdivision process for internal review and requirements for public safety access. Councilmember Moses asked if the HOA would restrict the units from becoming short-term vacation rentals, to which Mr. Woods said banks do not like to loan on something that can be used as an Airbnb. He said the units would have a 30-day minimum and added that the HOA allows for more restrictions and a better development. Councilmember Lin asked what the price range would be for the units, to which Mr. Woods said under $400,000. Councilmember Lin said Lake Havasu City is experiencing an affordable housing crisis and felt a price-point of $400,000 does not address affordable housing. Mr. Woods said the units would be under $400,000, noting that he currently has units on the market ranging from $259,000 to $379,000. Mr. Woods added that the HOA dues would be approximately $175 per month and include pool, water, and trash services. He further added that he is working with the city on an issue with the water and is looking at something different. Councilmember Campbell said Lake Havasu City is grown-out and while city government cannot fix workforce housing, the city can assist developers by not over-regulating or denying developments. She said the more supply in Lake Havasu City, the less demand. Lake Havasu City Page 15 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 Vice Mayor Dolan was concerned with referring to this as affordable housing because the city needs workforce housing. Mr. Woods said most of his units are sold to retired and younger buyers, approximately 20 percent are sold and re-rented, and approximately five to ten percent become vacation rentals. Councilmember Campbell said the only way city government can save workforce housing is to build an affordable housing complex where city tax dollars are funding lower rents, which is not something she is hearing from the community. She said the city cannot dictate the HOA rules, how developers build or sell units, or over-govern workforce housing, but the city can depend on developers to put their money and risk building more inventory. Mayor Sheehy reminded the council that this is a zoning request. Councilmember Lin asked if there was any reason the developer would not be able to build the property as proposed, to which Mr. Morris said if the request were to go through as proposed, the applicant could develop the property per the conceptual plan and staff would review the details through the subdivision process. Mayor Sheehy clarified that the development could only be done if the rezone is approved. Mayor Sheehy opened the public hearing. The following individuals addressed the council and spoke in opposition to the rezone request: • Mr. Chuck Marin, citizen • Mr. William Newell, citizen • Mr. Scott Schedell, citizen • Mr. Rex Cross, citizen • Mr. Kelly Lutz, citizen Mr. Nicholas Verdone addressed the council regarding the current housing and rental market, affordability, and inflation of single-family homes due to tiny-home values. Mr. James Gannon, citizen, addressed the City Council regarding affordable housing and said city government should be regulating Airbnbs that way you do not have to worry about creating but regulating what is already there to have a working class. Ms. Ginger Dodier addressed the council regarding the number of houses currently on the market under $400,000. She added that the Federal government has put higher interest rates on second homes which should help first-time homeowners. Ms. Bonnie Toy addressed the council and said Lake Havasu City is going to keep Lake Havasu City Page 16 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 growing much like the Havasu Foothills development. There being no further comments, Mayor Sheehy closed the public hearing. Mr. Woods spoke on the need for affordable housing and concerns from the neighbors about traffic on Indian Hills Drive, inflation, and house values. Councilmember Lane said he likes the project and conceptual design but was not in favor of the proposed location in an R-1. Mayor Sheehy said he appreciates the housing developments that Mr. Woods has brought and is proposing in the community. He said for this project he feels the density is too great and the integrity of the neighborhoods should not come at the cost of development of future areas. He said when it comes to affordable housing, he agrees that it is a supply-and-demand issue; therefore, the more inventory types and variety available the better; however, affordable housing is different for everyone in terms of income and affordability. Mr. Woods asked if the City Council would consider approving his request if the number of units was reduced from 40 to 30, to which Mayor Sheehy said there is a process in place that he would need to go through to lower the density. Vice Mayor Dolan moved to deny Ordinance No. 22-1280, seconded by Councilmember Lane, and carried by the following vote: Aye: 4 - Mayor Sheehy, Councilmember Lane, Councilmember Coke and Vice Mayor Dolan Nay: 3 - Councilmember Campbell, Councilmember Lin and Councilmember Moses 8.7 ID 22-3148 Adopt Ordinance No. 22-1281 Approving a Planned Development Rezone for 2250 Marina View Avenue, Tract 2399, Block 1, Lot 75, from Mixed Use-General (MU-G) to Mixed Use-Neighborhood/Planned Development (MU-N/PD) and Applying the Previously Approved Maximum Allowable Building Height of up to 60 Feet for a Residential Townhome Development (Luke Morris) Mr. Morris said the subject property is located in Havasu Riviera and is currently zoned Mixed Use-General (MU-G). Mr. Morris said in 2008, Lake Havasu City adopted the Havasu Riviera Specific Plan for the 250-acre parcel designating 142-acres of residential, 80-acres of mixed-use, and approximately 28-acres of open space and trails. In the 2008 approval, the applicant requested two zoning designations, Mixed Use District (MU) and High-Density Multi-Family (R4). He said the subject lot was rezoned to MU-G applying the previous allowed maximum building height of up to 60 feet. He stated that the MU-G Lake Havasu City Page 17 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 district allows several commercial uses as well as multi-family residential; however, any residential is required to be above the ground floor. Mr. Morris added that the commercial development allowed as part of MU-G zoning has not been realized on this property; therefore, the property owner requests to rezone the property to MU-N/PD to allow a multi-family attached townhome residential development. He said the proposed site plan shows 17 residential units clustered in two and three-unit buildings, two-story with attached garages and served by private driveways and sewer utilities. He added that water service would be city provided. Mr. Morris stated that the applicant is requesting a planned development to ensure that the project will be developed as shown in the site plan and sample building renderings. He said the Commission heard this request at their January 5, 2022, meeting and recommended approval with a vote of 6 to 0. Mr. Mychal Gorden, Desert Land Group, addressed the council and said the Havasu Riviera community originated in 2006 through 2008 and went through an extensive planning effort working with the city, Bureau of Land Management (BLM), and other partners to master plan the community. He said in 2008, the City Council granted a specific plan for the community which guided and provided the underlining entitlements for the community and zoning moving forward. Mr. Gorden explained that the specific plan at that time was a mix of MU and MU-R zoning that allowed for up to 1,048 residential units, commerical/residential mix, and up to 300 resort-hotel type units. He said there were a lot of other moving pieces including the 280-acres that the city was working on controlling through a Recreation and Public Purpose Lease that included things like a golf course, Arizona State University, convention center, and a much larger marina and launch ramp facility. He said over the past 10 to 15 years, the specific plan has been modified to bring it in line with what the market is driving, and in 2016, the city, Arizona State Parks, and the developer worked together to build a launch ramp and parkway. He said the Havasu Riviera community is nearing completion of planning and development, and they have continued to look for ways to incorporate other uses in the community for this parcel; however, the concept of a hotel or resort-component was not feasible. Councilmember Lin asked about the benefits of keeping the property zoned commercial, to which Mr. Knudson explained the history of the parcel and said it was estimated that if developed as a hotel approximately $122,000 would be collected each year in bed tax to be utilized for city services. He said there have been a lot of discussions with the developer, but ultimately the city did not want to tell the developer how to develop the property but find a way to offset the loss revenues that are tied to a zoning change. He said they discussed various options including a phase for short-term rentals and added that the rezone would provide townhomes that would generate a residential property tax but not to the same financial impact to the city and taxpayers as the MU-G zoning. Mayor Sheehy said the previous marina component was not as large; therefore, the Lake Havasu City Page 18 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 revenue impact from the project as a whole is greater today than it was during the initial approvals of the area. He noted that the commercial activity lost by this rezone will be made up by the expansion of services at the marina area as well as the property taxes and sales taxes generated. Councilmember Lin asked how the marina is generating money back into the city. Mr. Lucas Still, Desert Land Group, addressed the council and spoke on the economic impact of the marina, sea store, and restaurant. He added that there is going to be approximately 530 to 570 homes in Havasu Riviera which benefits the city with incoming taxes. He said the commercial commerce overall in Havasu Riviera is still there, just not in the same form as it was in 2008. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Campbell moved to Ordinance No. 22-1281, a planned development rezone for 2250 Marina View Avenue, Tract 2399, Block 1, Lot 75, from Mixed Use-General to Mixed Use-Neighborhood/Planned Development and applying the previously approved maximum allowable building height of up to 60 feet for a residential townhome development, seconded by Councilmember Lane, and carried by the following vote: Aye: 5 - Mayor Sheehy, Councilmember Campbell, Councilmember Lane, Councilmember Coke and Vice Mayor Dolan Nay: 2 - Councilmember Lin and Councilmember Moses 8.8 ID 22-3155 Approve Amendment No. 3 to Havasu Riviera Development Agreement with Raging River Management Corporation (Kelly Garry) Ms. Garry advised that this item is an Amendment No. 3 to the Havasu Riviera Development Agreement between Lake Havasu City and Raging River Management Corporation. She explained that Amendment No. 2 was related to the installation and maintenance of the gate and entry station on land controlled by the city. Ms. Garry explained that the developer requests permission to install and maintain property controlled by the city adding a water feature and additional improvements (lighting, walls/fences, monument signs, and additional landscaping). She said the next item is a companion item approving an additional development agreement for Havasu Riviera; however, this agreement has to do with outside of the development, and the next agreement has to do with the infrastructure that is within the development. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Lake Havasu City Page 19 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 Councilmember Lin requested additional information on the water feature. Mr. Gorden said the marina and Havasu Riviera is all predicated on water and is the underlying theme. He said they designed a small water feature element that is part of the signage and monumentation at the entry station that will be visible to the parkway and public. He said the water feature would have a minimal impact using less water than a small residential swimming pool. Councilmember Lin stated that she was concerned about the installation of a water feature with ongoing discussion and concerns about water conservation. Mr. Gorden said he understands the concern and optics, but it is a small water element that speaks to the peace and tranquility and what water means to everyone in the community. Councilmember Lane asked if the water feature would recycle the water, to which Mr. Gorden replied yes. Councilmember Moses moved to approve Amendment No. 3 to Havasu Riviera Development Agreement with Raging River Management Corporation, seconded by Vice Mayor Dolan, and carried by the following vote: Aye: 7 - Mayor Sheehy, Councilmember Campbell, Councilmember Lane, Councilmember Lin, Councilmember Moses, Councilmember Coke and Vice Mayor Dolan 8.9 ID 22-3162 Approve a Development Agreement with Raging River Management Corporation Regarding Requirements and Conditions for Public Infrastructure and Other Improvements within the Havasu Riviera Development (Luke Morris) Mr. Morris said the previous item was a development agreement for the city-controlled property and this item is a development agreement for privately owned property within Havasu Riviera. He stated that Havasu Riviera will be served by private streets rather than public rights-of-way, and the developer must enter into a development agreement to address responsibilities associated with the installation and maintenance of public facilities within the development. Mr. Morris said the development agreement includes the developer’s responsibilities to install public infrastructure to city standards which upon city inspection, approval, and acceptance will be dedicated to the city excluding the lift stations which are privately owned and maintained by the developers association. Mr. Morris added that the agreement outlines future repairs and dedication of utility easements within the private streets and sections also concerning landscaping and gated entries. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Lake Havasu City Page 20 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 Councilmember Lane moved to approve the Development Agreement with Raging River Management Corporation regarding requirements and conditions for public infrastructure and other improvements within the Havasu Riviera development, seconded by Councilmember Coke, and carried by the following vote: Aye: 7 - Mayor Sheehy, Councilmember Campbell, Councilmember Lane, Councilmember Lin, Councilmember Moses, Councilmember Coke and Vice Mayor Dolan 8.11 ID 22-3150 Adopt Ordinance No. 22-1283 Approving a Zone Change for 6590, 6600, 6700 Chenoweth Drive and 1800 and 2000 Victoria Farms Road, for 39.54 Acres of Property, from Light Industrial/Planned Development (LI/PD), Industrial (I), and Agriculture/Preservation (A-P) to Manufactured Home (RMH) District (Luke Morris) Mr. Morris said the subject property consists of three properties and a portion of two others just under 40 acres, located on the east side of Highway 95 with access from Chenoweth Drive and Victoria Farms Road. The property is currently vacant and undeveloped. He noted that sewer service would be provided by the city and water service would be provided by EPCOR Water. Mr. Morris stated that the abutting property to the northwest is developed as storage units, and the abutting properties to the north, east, and south are undeveloped. He explained that the subject properties are zoned Light Industrial/Planned Development (LI/PD), Agriculture/Preservation (A-P), and Industrial (I), and the abutting properties are zoned Light Industrial (LI), LI/PD, A-P, and I. Mr. Morris stated that the applicant provided a General Plan amendment to reclassify the property to High-Density Residential which was approved by the City Council on December 14, 2021. He said the applicant’s letter of intent proposes a residential community (350-plus housing units and amenities) to address the current housing challenges that Lake Havasu City residents are facing. Mr. Morris added that the residential and accessory uses proposed may be allowed in the Manufactured Home (RMH) district and is allowed under the General Plan. He said the Commission recommended approval with a vote of 5 to 1. He noted that the dissenting vote had concerns that the units would not be set aside for full-time residents. Vice Mayor Dolan asked why Village 4 is not included in the outline, to which Mr. Morris stated that the property that was displayed is the conceptual plan and a portion of the lower part of Village 4 is not within the General Plan amendment and not part of this request. Mr. Waylon Gates, applicant, addressed the council and said they anticipate a portion of the project would be rental units with a combination of property ownership and investors. He noted that it is very difficult to manage short-term rentals. Mr. Gates said the property is a gated community and designated residential uses and not commercial uses. He said the project is not feasible to make it short-term rentals and added that the ideal financing is Lake Havasu City Page 21 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 agency financing (Fannie Mae and Freddie Mac) which requires that no more than 35 percent of all the units to be owner-occupied. Mr. Gates said another concern has been an increase in traffic. Mr. Gates noted that a traffic study will be conducted which is part of the permit process and added that the western portion of the development is already an approved planned development for 222-units and what they are requesting is a lower density use than what is already approved for the area. Mayor Sheehy asked for clarification on short-term rentals, to which Mr. Gates said short-term rentals are difficult for management to monitor and complicates the financing process. Mayor Sheehy asked about the timeline of the project, to which Mr. Gates replied approximately 12 to 18 months. Mayor Sheehy asked for further information on the phasing, to which Mr. Gates said the current plan is to complete Phase 1 of the development and the second half in a later phase. Mayor Sheehy asked if Phase 1 would include RV spaces, manufactured homes, and tiny houses. Mr. Gates said Phase 1 is a combination of 25 RV spaces, 60 manufactured homes, and 90 tiny houses. Mayor Sheehy asked if the tiny houses are manufactured homes as well, to which Mr. Gates replied yes. Councilmember Campbell said she has received concerns from citizens about leasing the land; however, after hearing that this would allow management more control of the facility, she is more comfortable with this item. Councilmember Lin said she liked the concept and providing more housing options and asked how this project impacts public safety (specifically fire services), to which Chief Pilafas said the Fire Department will continue to provide adequate coverage and response times and confirmed that this area would be serviced primarily by Fire Station No. 6. Mayor Sheehy asked Mr. Gates if he is willing to absorb the costs of bringing in the wastewater infrastructure, to which Mr. Gates replied yes. Mayor Sheehy asked about the impact of noise being located in an industrial area, to which Mr. Gates said it will be a managed project similar to an apartment complex acting as a buffer between the tenants and the city. He said they feel they will be able to mitigate the situation by communicating to new tenants about the proximity to the airport and other area noises. Councilmember Lane spoke concerning the possibility that these units would be occupied as short-term rentals, to which Mr. Gates said he also wants the units owner-occupied, Lake Havasu City Page 22 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 and their model is not to have short-term rentals. Mayor Sheehy opened the public hearing. Mr. Kelly Lutz addressed the council with questions regarding the property taxes. He stated that he does not feel the city needs more tiny houses or short-term rentals. Mr. Gates explained that management pays the property taxes; therefore, the owners and/or tenants are not responsible. Mr. Gates added that the owners of the manufactured homes are required to pay a personal property tax. Mr. Steve Ment, HOA President of the Havasu RV Resort, addressed the council and said they met with Mr. Gates regarding their concerns and are in support of this project. He proposed that the city consider an additional access road be provided to address traffic flow and wondered if there would be an increase in odors from the sewer lift station due to the additional units. Councilmember Campbell asked Mr. Ment if he receives complaints regarding airplane noises, to which Mr. Ment replied yes and no. He said the concerns are related to the approach zone for the airport which should be relocated to the east and not over a developed area. There being no further comments, Mayor Sheehy closed the public hearing. Councilmember Moses moved to approve Ordinance No. 22-1283, a zone change for 6590, 6600, 6700 Chenoweth Drive and 1800 and 2000 Victoria Farms Road, for 39.54 Acres of property, from Light Industrial/Planned Development, Industrial, and Agriculture/Preservation to Manufactured Home District, seconded by Councilmember Campbell, and carried by the following vote: Aye: 7 - Mayor Sheehy, Councilmember Campbell, Councilmember Lane, Councilmember Lin, Councilmember Moses, Councilmember Coke and Vice Mayor Dolan 8.12 ID 22-3158 Ratify Change Order No. 1 to Construction Contract for the McCulloch Boulevard Pavement Rehab Project with Combs Construction Company, Inc. ( Jason Hart) Project Manager Jason Hart advised that the item before council is to ratify Change Order No. 1 to the construction contract for the McCulloch Boulevard Pavement Rehabilitation Project to Combs Construction, Inc. Mr. Hart outlined the following in his presentation: McCulloch Boulevard Pavement Rehabilitation Project Refresher Lake Havasu City Page 23 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 • Project Description o This project consists of a 2 1/2” roto-milling of McCulloch Boulevard, from its intersection with Smoketree Avenue to Acoma Boulevard full width and placement of 3 inches of compacted concrete pavement full width. Also includes full depth removal at the Pima Wash Crossing. • Construction Budget = $1,200,000 • Low Bid = $728,760 (Combs Construction) • Change order incorporates the two additional streets, Mulberry Ave (between McCulloch Boulevard & Swanson Avenue) and Scott Drive (between McCulloch Boulevard & Swanson Avenue) that were added. • Both streets had PCI ratings that warranted it. • Change order also incorporates additional work involving water pipe that broke during the overlay process on Mulberry Avenue. • Some highlights of the project that occurred during construction were that the roto-milling was able to be completed in one day instead of two (night work). • Mainline paving was accomplished in three days as opposed to four (day work with no full corridor closure) • Project still well under budget with additional work. Councilmember Campbell asked why the City Council is approving a 17 percent increase on a job that has already been completed. Mr. Hart said when the project went out to bid with the scope of work in place the project was going to be close to $1.2 million; however, after the bid came in lower it made sense to add it to the project and is being ratified since this item exceeds the $50,000, threshold for council approval. Councilmember Campbell said in terms of process she would like to see ratifications brought to the City Council for approval earlier in the process moving forward. Mayor Sheehy suggested that if bids come in lower than expected and there are alternatives that staff come to the City Council with options for approval. Mr. Knudson said ratification is never taken lightly when the determination is made in terms of the authorization and staff is not in control of expenditure of funds over $50,000 threshold. He said a legal process was followed but staff needs to do a better job of eliminating ratifications when possible. Councilmember Campbell spoke on perception and conflict of interest. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Lane moved to ratify the City Manager’s execution of Change Lake Havasu City Page 24 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 Order No. 1 to Construction Contract for the McCulloch Boulevard Pavement Rehab Project with Combs Construction Company, Inc., in the amount of $77,984.56, seconded by Councilmember Moses, and carried by the following vote: Aye: 6 - Mayor Sheehy, Councilmember Lane, Councilmember Lin, Councilmember Moses, Councilmember Coke and Vice Mayor Dolan Nay: 1 - Councilmember Campbell 8.13 ID 22-3164 Approve Amendment No. 1 to the Engineering Professional Services Agreement for the Island WWTP Flow Equalization Basin (FEB) Replacement Project with Carollo Engineers, Inc. (Jason Hart) Mr. Hart advised that this item is requesting approval of Amendment No. 1 for the Island WWTP Flow Equalization Basin Replacement Project to Carollo Engineers, Inc. Mr. Hart outlined the following in his presentation: Island WWTP Flow Equalization Basin Replacement Project Refresher • Original FEB was constructed in 1983 and then modified in 1999 for odor control. • FEB was shut down due to various issues in 2011 and Carollo Engineers was hired in 2019 to design replacement FEB. Island WWTP Flow Equalization Basin Replacement Project Amendment Need • Construction project awarded to Technology Construction, LLC, on July 13, 2021, for $4,109,001. • Purpose: o To replace existing earthen flow equalization basin with a new concrete equalization basin. • Construction management contract awarded to Carollo on April 13, 2021, for $234,777. • Amendment covers extensive unanticipated additional work Carollo performed to update Aquifer Protection Permit in the form of closure plan, final APP modification report, etc. prior to construction be permitted. • The amendment also covers a re-design needed to be added for relocating Programmable Logic Controller, ramp relocation and basin depth adjustments that arose during construction. • Additional permit and design work amounts to $57,692. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Vice Mayor Dolan moved to approve Amendment No. 1 to the Professional Services Agreement for the Island WWTP Flow Equalization Basin Replacement Project with Lake Havasu City Page 25 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 Carollo Engineers, Inc., in the additional amount of $57,692, seconded by Councilmember Moses, and carried by the following vote: Aye: 7 - Mayor Sheehy, Councilmember Campbell, Councilmember Lane, Councilmember Lin, Councilmember Moses, Councilmember Coke and Vice Mayor Dolan 8.14 ID 22-3134 Presentation on the Pre-Construction Contract for Construction Manager At Risk (CMAR) Services to FCI Constructors, Inc., for the New Municipal Courthouse Project (Dan Sloan) Assistant City Engineer Dan Sloan said this item is to discuss the Pre-Construction Contract for Construction Manager at Risk (CMAR) Services for the new Municipal Courthouse. Mr. Sloan outlined the following in his presentation: Pre-Construction Contract for Construction Manager At Risk (CMAR) for the New Municipal Courthouse Project Delivery Methods • Design/Bid/Build • Design/Build • Construction Manager At Risk (CMAR) Construction Manager at Risk (CMAR) • Two phases: Pre-Construction during design and Construction for a Guaranteed Maximum Price (GMP) • Pre-Construction includes: o Cost Estimating o Project Scheduling o Value Engineering o Sub-contractor selection o Early GMP’s (long lead-time items) o Final GMP for construction Request for Statements of Qualifications (RFSQ) • Formal Request for Statements of Qualifications (RFSQ) process was performed to select a contractor to provide CMAR services • Six firms responded to the RFSQ • Four firms were interviewed by the selection committee • Highest ranked proposer: FCI Constructors, Inc. • Pre-Construction Contract: $44,010 Timeline • August 2021: Programming Phase Update to City Council • September 2021: Write CMAR Request for Statements of Qualifications (RFSQ) Lake Havasu City Page 26 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 • October 2021: Advertise CMAR RFSQ • November 2021: Selection committee review of proposals, conduct interviews • December 2021: Negotiate Pre-Construction contract • January 2022: Prepare presentation for City Council meeting • February 2022: City Council Update Mr. Sloan provided a conceptual design of the courthouse space planning and reviewed the phases selected during the programming. He said Option No. 1 was selected as the lowest cost option and included a new Heating, Vent, & Air Conditioning (HVAC) system and a fully built out second courtroom, which consists of a council room, jury assembly space, audio visual center, and an elevator. Design Contract Modifications • Design contract reductions by using CMAR • Cost estimating: $24,948 • Bidding phase: $3,660 • Total design contract savings: $28,608 Updated Schedule • Design/CMAR Pre-Construction – February 2022 through July 2022 • Long lead time procurement – May 2022 • Construction Phase – August 2022 through June 2023 • FF&E/IT: Fall of 2023 • Building Opening: First Quarter of 2024 Mayor Sheehy stated that this method is more cost effective to the current contract with the architectural firm and a tremendous savings with CMAR. He noted that this item is under $50,000 and does not need to go to council for approval; however, it is a very important project and is a great opportunity to receive public input. Mayor Sheehy opened the public hearing. Ms. Diana Benton, citizen, addressed the council and expressed her concerns on the progress of the project, space capacity, parking concerns, sally port requirements, and the layout of the courthouse. Mayor Sheehy said City Magistrate Mitchell Kalauli has engaged his court staff and worked with city staff to do space planning. Mr. Knudson added that there has been a lot of discussion with the architects, Judge Kalauli, and city staff regarding court operations. Lake Havasu City Page 27 Printed on 2/25/2022 City Council Minutes - Final February 8, 2022 Ms. Bonnie Toy addressed the council requesting additional information on the Problem Solving Courts and the Municipal Court. Mayor Sheehy said while the item before the council is discusion regarding the pre-construction contract the Problem Solving Courts (Veterans Treatment Court & Youth Court) falls under the umbrella of the Municipal Court. There being no further comments, Mayor Sheehy closed the public hearing. 9. CURRENT EVENTS There were no council committee reports. 10. FUTURE MEETINGS Tuesday, February 22, 2022 @ 6:00 p.m. – Regular Meeting Tuesday, March 8, 2022 @ 6:00 p.m. – Regular Meeting 11. FUTURE DISCUSSION ITEMS There were no requests from council for future discussion items. 12. ADJOURN Upon motion by Vice Mayor Dolan and seconded, the meeting adjourned at 10:06 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 February, 2022. 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 28 Printed on 2/25/2022