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 22, 2022 6:00 PM 1. CALL TO ORDER Mayor Sheehy called the meeting to order at 6:00 p.m. 2. INVOCATION: Pastor Dean Wiles, Abundant Grace Church Pastor Dean Wiles, Abundant Grace Church, gave the invocation. 3. PLEDGE OF ALLEGIANCE: Bureau of Land Management (BLM) Mr. Jason West, Bureau of Land Management (BLM), 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 Mr. Don Bergen, citizen, addressed the council concerning the safety of the bike path on Swanson Avenue between Acoma Boulevard and Smoketree Avenue. He asked the city to consider eliminating the bike path and any future bike paths in this area before there is a tragic accident. Mr. Angel Miniet, citizen, addressed the council and said he recently read on social media that the City Council is planning to put electric eels in swimming pools to generate electricity. Mayor Sheehy clarified that what Mr. Miniet read on social media is not correct. Ms. Bonnie Toy, citizen, addressed the council regarding the lack of appropriate handicap accessible areas and traffic enforcement at intersections during special events. 6. CONSENT AGENDA 6.1 ID 22-3192 Approve the February 8, 2022, City Council Regular Meeting Minutes (Kelly Williams) Lake Havasu City Page 1 Printed on 3/9/2022 City Council Minutes - Final February 22, 2022 6.2 ID 22-3170 Adopt Resolution No. 22-3556 Approving the Intergovernmental Agreement to Provide Annual Inspections, Testing, Fit Testing, and Repair for Desert Hills Fire District’s Self-Contained Breathing Apparatus (Chief Pilafas) 6.3 ID 22-3180 Adopt Resolution No. 22-3557 Appointing City Councilmembers to the Lake Havasu Metropolitan Planning Organization’s Executive Board (Kelly Garry) 6.4 ID 22-3183 Adopt Resolution No. 22-3560 Approving the Submission of a Grant Application to the Arizona Governor’s Office of Highway Safety for Traffic Enforcement and Radars (Chief Doyle) 6.5 ID 22-3181 Adopt Resolution No. 22-3558 Approving Amendment No. 1 to the Lease Agreement with Mohave County for Municipal Court Purposes (Mitchell Kalauli) 6.6 ID 22-3194 Adopt Resolution No. 22-3561 Ratifying the Submission of a Grant Application to the Arizona Department of Homeland Security for the Purchase of HazMat Tools and Equipment (Chief Pilafas) 6.7 ID 22-3191 Call for Executive Session Pursuant to A.R.S.§ 38-431.03(A) 5:00 p.m. Tuesday, March 8, 2022 (Kelly Williams) Councilmember Coke moved to approve the Consent Agenda as presented, 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 22-3171 Lake Havasu City Partnership for Economic Development Annual Update (Jess Knudson) Mr. Knudson introduced Mr. James Gray and Ms. Lisa Van Ella with the Partnership for Economic Development (PED). Ms. Lisa Van Ella, Chairperson of the PED Board, introduced the PED Board Members and recognized those that were in attendance. She thanked Councilmember Campbell for serving as the council liaison last year and welcomed incoming council liaison Councilmember Moses. Mr. James Gray, Director of the PED, gave an update on the Nomadic Coworking Facility, value of investing in coworking/incubator spaces, affordable housing study, attraction and site selection, Agave Business Park, Creative Comrades, and First Friday. Lake Havasu City Page 2 Printed on 3/9/2022 City Council Minutes - Final February 22, 2022 Councilmember Lane asked about the Frito Lay Distribution at the Agave Business Park and how many jobs they will be bringing to Lake Havasu City, to which Mr. Gray spoke on their work with the Frito Lay Distribution. He said Frito Lay Distribution has now purchased the land and is ready to begin construction. He added that they would be creating approximately 12 to 18 jobs. 7.2 ID 22-3182 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. 7.3 ID 22-3193 City Manager’s Report (Jess Knudson) City Manager Jess Knudson reported on the following: • Acknowledged the retirement of Lake Havasu City Police Officer Earl Chalfant with 20 years of service. • Announced various events, proclamations, and achievements. • The next Coffee with the Mayor and City Manager will be held on Friday, March 4, 2022, at 8:30 a.m. at the Police Facility Meeting Room. 8. PUBLIC HEARINGS 8.1 ID 22-3190 Class “B” Bingo License Transfer of Location for Friends of the Food Bank/Denekas (Kelly Williams) Ms. Williams advised that Ms. April Sue Denekas with 4 Links DBA WinWin Bingo 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 (The Shops at Lake Havasu). Ms. Williams noted that the application was reviewed internally, and no objections were received. She stated that Class “B” licenses are dedicated to raising funds for the sponsoring charitable organizations. She said this item was tabled at the last City Council regular meeting for more information. She said the applicant is available tonight (remote conferencing) to answer any questions. Councilmember Lin asked if there is an application process for other non-profit organizations that would like to apply, to which Ms. Denekas, applicant, said WinWin Bingo can assist any non-profit organization with the licensing application. She added that applications can be found on the Arizona Department of Revenue’s website or at the WinWin Bingo location (5601 Highway 95), and requires a copy of the organization’s 501(C)(3) and financials, as well as any state and city fees. Vice Mayor Dolan asked if a portion of the profits under this license go directly to the Lake Havasu City Page 3 Printed on 3/9/2022 City Council Minutes - Final February 22, 2022 Friends of the Food Bank in Quartzsite and Wickenburg, to which Ms. Denekas said yes as they are the only food bank with an active bingo license. Ms. Denekas said they have reached out to the local food bank to see whether they would like to join and start raising profits. She said the Quartzsite location unfortunately closed due to COVID-19 and their bingo license has been sitting null. She said WinWin Bingo can help them by transferring their license to Lake Havasu City until the license expires in May 2022. Vice Mayor Dolan asked if they would work with a new 501(C)(3) once that license expires, to which Ms. Denekas replied that the Quartzsite license could request a renewal with the Arizona Department of Revenue, and added that per state statute, WinWin Bingo can host up to 20 licenses at their location. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Ms. Denekas said WinWin Bingo is currently operating Friday through Tuesday from 10:00 a.m. to 10:00 p.m. She said if this license transfer is approved, they plan to hire five additional employees and operate seven days a week from 10:00 a.m. to 10:00 p.m. Councilmember Lane asked if any of the proceeds generated from this license stay in Lake Havasu City, to which Ms. Denekas said 30 percent of the revenues generated go to Quartzsite and 70 percent remain in Lake Havasu City for personnel, rent, and bills. Mayor Sheehy said there has been a lot of apprehension as this bill just passed last year. He said once the proof of concept can be discovered, local non-profits may be more engaged in the process and want to join in. Ms. Denekas added that she is currently working with five local non-profits in obtaining their bingo license. Councilmember Campbell added that this is a positive addition to The Shops at Lake Havasu. Councilmember Moses moved to recommend that the Arizona Department of Revenue approve a Class "B" Bingo License transfer of location for the Friends of the Food Bank to 5601 Highway 95 (The Stops at Lake Havasu), seconded by Councilmember Lin, and carried by the following vote: Aye: 7 - Mayor Sheehy, Councilmember Campbell, Councilmember Lane, Councilmember Lin, Councilmember Moses, Councilmember Coke and Vice Mayor Dolan 8.2 ID 22-3143 Series #10 Beer & Wine Store Liquor License, London Bridge Chevron, 1597 McCulloch Boulevard/Heron (Kelly Williams) Ms. Williams advised that Felicity Ann Heron has applied for a Series #10 Beer and Wine Store Liquor License for London Bridge Chevron located at 1597 McCulloch Boulevard. Lake Havasu City Page 4 Printed on 3/9/2022 City Council Minutes - Final February 22, 2022 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 #10 liquor license. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Coke moved to recommend that the Arizona Department of Liquor Licenses & Control approve a Series #10 beer and wine store liquor license for London Bridge Chevron, 1597 McCulloch Boulevard, 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 8.3 ID 22-3153 Adopt Resolution No. 22-3554 Ordering and Calling a Primary Election to be Held on Tuesday, August 2, 2022, and, If Necessary, a General Election to be Held on Tuesday, November 8, 2022, to Nominate Candidates for Mayor and Councilmember Positions; and Providing for and Giving Notice of Such Elections and the Deadline for Voter Registration; and the Place and Last Date for Candidates to File Nomination Papers (Kelly Williams) Ms. Williams advised that the resolution before council designates Tuesday, August 2, 2022, as the date for holding the Primary Election in Lake Havasu City for the purpose of nominating candidates for mayor and three councilmember positions. She said Lake Havasu City will also hold a General Election on Tuesday, November 8, 2022; however, any candidates receiving a majority of all votes cast at the Primary Election will be declared elected without running in the General Election. She said in order to be qualified to vote, electors must be registered by July 5, 2022, for the Primary Election and October 10, 2022, for the General Election. Ms. Williams said candidates seeking office may obtain the nomination petitions and other materials at the City Clerk’s Office. She said candidates must file their nomination papers and other required forms by the deadline of April 4, 2022, at 5:00 p.m. in order for their names to appear on the Primary Election ballot. Mayor Sheehy opened the public hearing. Ms. Bonnie Toy requested clarification on the primary versus general election for Lake Havasu City, to which Mayor Sheehy said Lake Havasu City follows state statute which allows for a candidate in the Primary Election who receives 50 percent plus one (majority vote) to be declared elected to that office. He said elections for Lake Havasu City can be determined in the Primary Election, so it is important for voters to vote in the Primary Election. Lake Havasu City Page 5 Printed on 3/9/2022 City Council Minutes - Final February 22, 2022 Ms. Toy asked whose responsibility it is to let electors know to get out and vote in the Primary Election, to which Mayor Sheehy said voter outreach is done by Mohave County as well as the city. There being no further comments, Mayor Sheehy closed the public hearing. Councilmember Lane moved to adopt Resolution No. 22-3554 ordering and calling a Primary Election to be held on Tuesday, August 2, 2022, and, if necessary, a General Election to be held on Tuesday, November 8, 2022, to nominate candidates for Mayor and Councilmember positions; and providing for and giving notice of such elections and the deadline for voter registration; and the place and last date for candidates to file nomination papers, 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 8.4 ID 22-3163 Adopt Resolution No. 22-3559 Approving a Minor Amendment to the Future Land Use Map of the City’s General Plan for 40 Retail Centre Boulevard, Retail Centre-2 Parcel B, to Change the Future Land Use Designation from Employment to Medium Density Residential (Luke Morris) Planning Division Manager Luke Morris advised that the subject property is located on Retail Centre Boulevard and is approximately 18-acres in size, vacant, and undeveloped. He said the abutting properties to the north, south, and west are vacant and the property to the east is developed as an RV and vehicle sales facility. He added that city water and wastewater services to the subject property are available. Mr. Morris explained that the subject property and abutting properties are zoned General Commercial (C-2), and the property to the west lies within the boundaries of Mohave County with a zoning designation of General Commercial. He said this request is to amend the General Plan Land Use Map and since the property is less than 40 acres and outside the original platted area, the Planning and Zoning Commission (“Commission”) and City Council can review this application as a minor amendment. He stated that the applicant’s letter of intent requests to amend the city’s General Plan Land Use Map to facilitate the development of residential uses for this property. Mr. Morris said if this request is approved, the applicant would propose a request to rezone the property to an appropriate residential zoning district. He added that after the zoning district approval, the applicant may submit a subdivision plan for review for water, wastewater, traffic, right-of-way improvements, and fire department access that will be reviewed for compliance with the city’s standards. Mr. Morris said the applicant’s proposed letter of intent describes an obtainable housing development consisting of duplexes and single-family dwelling units (700-900 square feet) with an attached garage. He said the subject property is currently designated as Employment within the General Plan which is appropriate for uses such as light Lake Havasu City Page 6 Printed on 3/9/2022 City Council Minutes - Final February 22, 2022 manufacturing, research and development, professional offices, and office showroom type uses. Mr. Morris stated that the requested Medium Density Residential land use designation is to provide opportunities for a mix of housing options and densities. He explained that the growth projections and capacity section of the General Plan discuss how future land uses relate to the future land use plan and map of the city and suggest that changes may be made by the Commission and the City Council if the proposed land use and zoning proposals are consistent with the other goals and policies within the General Plan. He added that the lack of land dedicated to low-cost housing is a problem for many cities in Arizona including Lake Havasu City. Mr. Morris said this proposal asks the city to consider changing its philosophy regarding affordable/obtainable housing in a specific area by changing the designation of the General Plan to Medium Density Residential thus paving the way for a rezoning to begin to address the housing shortage. He noted that the existing platted area within the city cannot adequately address the housing short comings; therefore, it may be appropriate for the Commission and City Council to consider how and where Lake Havasu City can address housing issues in a more efficient manner. Mr. Morris said the proposed amendment is in conformance with the goals and policies within the city’s General Plan and added that the Commission heard this request at their January 19, 2022, meeting and recommended approval 5 to 1. Mr. Chris Stark, developer, addressed the council and spoke on their proposed plan to build 136-units (duplex-style). He said their initial intent was to develop storage condos; however, due to the economy and lack of housing in Lake Havasu City they changed directions and decided that the proposed project would be a better fit for the city and the site. Mr. Stark reviewed the site plan drawings for “Yellow Bell Villas” consisting of a 40-foot by 60-foot metal style garage (consistent with the surrounding RV storages), modular house (700-900 square feet) with 2-bedroom/2-bath or 3-bedroom/3-bath, and minimal yards. He said their goal is to build obtainable housing that has a lower price-point for consumers. Mayor Sheehy asked if the homeowner would own or lease the land, to which Mr. Stark said the land would be rented and managed through a Homeowners Association (HOA). Mayor Sheehy asked if the buyer would lease the land and own the structure, to which Mr. Stark replied yes. Mayor Sheehy questioned the language in the presentation that referenced “affordable housing,” to which Mr. Morris said the language was from the applicant’s letter of request. Mr. Stark said they are proposing a project that is obtainable or affordable to build at a low cost to pass to the consumer. He added they are not looking to build Section 8, just something in the lower price-range. Mayor Sheehy said he cautioned using the word “affordable” as it means something different for everyone and while he is proponent of more product and supply, he does not want to mislead citizens that the proposed project is Lake Havasu City Page 7 Printed on 3/9/2022 City Council Minutes - Final February 22, 2022 in the affordable realm if it is not truly affordable. Councilmember Campbell spoke on supply-and-demand in Lake Havasu City. She said while people may not agree with this project, the city does not have control over the market. She added that leasing the land versus owning the land allows for better control over the HOA and thanked the applicant for coming up with a project that addresses both storage and housing needs. Mayor Sheehy said leasing the land is beneficial because it is in the opportunity zone, to which Mr. Stark replied yes. Councilmember Lane said the proposed project is better than storage units and is a great business model. He said while the city cannot regulate who these units are sold to, the development can apply Covenants, Conditions & Restrictions (CC&Rs) to renters or owners to ensure residents are living their six months out of the year to address workforce housing. Councilmember Moses thanked the applicant for his time and effort. He said he believes this project will add more housing supply and rejuvenate the mall area. Councilmember Lin asked what the price-point would be, to which Mr. Stark said they are looking at approximately $200,000 to $300,000. Councilmember Lin stated that she had concerns with this project using the term “affordable housing” as it is obvious what this will be but said it will create more housing and more options in Lake Havasu City. She expressed her concerns regarding additional strain on public safety resources with continued growth and new developments. Mayor Sheehy opened the public hearing. Ms. Sandy Seedorf, citizen, addressed the council requesting clarification on the proposed project location, to which Mayor Sheehy said the project is located along Retail Centre Boulevard. Ms. Donna McCoy, citizen, addressed the council and asked if the applicant had an estimate on the cost for rent (land lease) per month, to which Mr. Stark (from the audience) said the rent would be a few hundred dollars per month. Mr. Angel Miniet asked if the units would be owned or rented, to which Mayor Sheehy said according to the preliminary model that Mr. Stark presented, the homeowner would lease the land but own the structure. Lake Havasu City Page 8 Printed on 3/9/2022 City Council Minutes - Final February 22, 2022 Ms. Bonnie Toy asked what the total rent would be, to which Mayor Sheehy said as Mr. Stark presented the project is in the preliminary stage but would have a monthly lease for the rent of the land and a mortgage payment for the housing structure. Councilmember Campbell said she compares land lease fees to property taxes and added that the land lease would include the HOA and other possible amenities. There being no further comments, Mayor Sheehy closed the public hearing. Mayor Sheehy said he was in favor of more variety and opportunity, and the need for more housing in Lake Havasu City. He said he hoped the applicant heard the feedback from the citizens and council moving forward. Councilmember Moses moved to adopt Resolution No. 22-3559 approving a minor Amendment to the Future Land Use Map of the City’s General Plan for 40 Retail Centre Boulevard, Retail Centre-2 Parcel B, to change the future land use designation from Employment to Medium Density Residential, 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 8.5 ID 22-3196 Accept Quitclaim Deeds and Patents for S.A.R.A. Park from the United States, Bureau of Land Management (Kelly Garry) City Attorney Kelly Garry addressed the council and said this item is for the acceptance of the Patents and Quitclaim Deeds for S.A.R.A. Park, which is a publicly administered land by the Bureau of Land Management (BLM). She said S.A.R.A. Park was originally leased to the Lake Havasu Irrigation & Drainage District in 1973 under a Recreation and Public Purposes Act Lease (“lease”) that allowed the local government to use this property for recreational and other public purposes that benefit local communities. She stated that the lease was re-assigned to Mohave County (“County”) in 1974 and the city began operating and maintaining S.A.R.A. Park in 2002 under an agreement with the County. Ms. Garry stated that in 2009, the lease was transferred to Lake Havasu City and in 2011, the requisites were made available for the city to apply for a patent. Ms. Garry explained that the application was for two different properties totaling 1,082.11-acres. She added that due to different land ownership over time of various portions of the park, the city received two Quitclaim Deeds and two Patents to accept to convey the entire acreage to the city. She noted that the terms in the patents are substantially similar except for the one for the shooting range. Ms. Garry stated that all make certain reservations to the United States for rights-of-way, mineral deposits, and valid existing rights. She said all but the shooting range patent may revert to the United States if the city transfers title or control of the land or devotes the land to other purposes, fails to use the land for the conveyed purposes over Lake Havasu City Page 9 Printed on 3/9/2022 City Council Minutes - Final February 22, 2022 five years, or fails to follow the plan of development. Ms. Garry said the lands may also revert if the city directly or indirectly prohibits or restricts the use of any part of the patented lands to any person due to race, creed, color, sex, national origin, or handicap. She said staff recommends the acceptance of the Quitclaim Deeds and Patents for S.A.R.A. Park and introduced Mr. Jason West, BLM Field Office Manager, who was in attendance. Mayor Sheehy said the city currently has a lease for S.A.R.A. Park and asked if Ms. Garry could explain what it means moving from a lease to a patent, to which Ms. Garry said currently under the lease it is for specific term so when the term expires the city would go through the application process again for the lease. She said under a patent there is no term, the city will have the land indefinitely unless it falls into one of the categories where it would revert to the United States. She added that the patent gives the city more flexibility, ownership-like rights, and control. Mayor Sheehy said another great example of a patent in Lake Havasu City is with Rotary Community Park. Mayor Sheehy opened the public hearing. Mr. West addressed the council and said this has been a seven-year effort and wanted to acknowledge Ms. Sheri Ahrens who made this possible. There being no further comments, Mayor Sheehy closed the public hearing. Vice Mayor Dolan moved to accept Quitclaim Deeds AZ-2022-001 and AZ-2022-002 and Patents 02-2022-0001 and 02-2022-0002 for S.A.R.A. Park from the United States, Bureau of Land Management, and authorize and direct City staff to file the Quitclaim Deeds and Patents with the Mohave County Recorder, 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 8.6 ID 22-3178 Approve the Purchase of a 28’ PackMan Landing Craft Police Boat and 30’ PackMan Landing Craft Fire Boat from Munson Boats Utilizing U.S. General Administration Contract (Chief Doyle and Chief Pilafas) Police Chief Dan Doyle addressed the council and said the city was awarded $800,000, from the State Lake Improvement Funds (SLIF) for watercraft replacement and as part of that process the city submitted to replace two 15-year-old boats. He said the first replacement is a 28’ PackMan Landing Craft Police Boat in the amount of $218.103, and the second replacement is a 30’ PackMan Landing Craft Fire Board in the amount of Lake Havasu City Page 10 Printed on 3/9/2022 City Council Minutes - Final February 22, 2022 $362,781. He added that the remaining funds would be used for two motor replacements and the replacement of a lifting mechanism for the fire boat. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Mayor Sheehy thanked Representative Leo Biasiucci for running the bill last year that allowed for the restoration of the SLIF funds with the support of Senator Sonny Borelli and Representative Regina Cobb. Councilmember Lane moved to approve the purchase of a 28’ PackMan Landing Craft Police boat ($218,103) and 30’ PackMan Landing Craft Fire boat ($362,781) from Munson Boats utilizing GSA Contract GS-07F-0442M in the amount of $580,884 plus applicable tax and delivery charges, 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 8.7 ID 22-3185 Award Bid for the Fiscal Year 2021-22 Asphalt Milling to Combs Construction, Inc. (Greg Froslie) Public Works Director Greg Froslie said this item is to approve a pavement maintenance project with Combs Construction, Inc., for asphalt milling in the residential estates (golf course) area. He said it is a new pilot program to address streets that are deteriorating rapidly by milling the top to re-establish the smooth driving surface and apply chip seal to give the street more structural integrity. Mr. Froslie noted that the project would be funded entirely by Highway User Revenue Funds (HURF). Councilmember Campbell asked if this item went out to bid, to which Mr. Froslie replied yes. Councilmember Moses said there is a lot of water runoff in the residential estates (golf course) areas and asked if the city can deter water runoff when working on these streets, to which Mr. Froslie said the city is looking at replacing sections of asphalt with concrete that can stand up to the water. Vice Mayor Dolan asked if this type of project has been successful in other areas, to which Mr. Froslie said they have performed this treatment in smaller areas but not an entire roadway in Lake Havasu City. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Lake Havasu City Page 11 Printed on 3/9/2022 City Council Minutes - Final February 22, 2022 Councilmember Moses moved to award the bid for Asphalt Milling to Combs Construction Inc. in the amount of $159,991.52, 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 8.8 ID 22-3186 Approve Sole Source Purchase of Badger Water Meters from Badger Meter (Greg Froslie) Mr. Froslie advised that this item is requesting approval for the annual purchase of water meters with Badger Meter. He stated that Badger Meter is the standard for Lake Havasu City with approximately 37,000 Badger Meters in the city’s system; however, there are approximately 9,000 meters that are 15-years or older and no longer read accurately. Mayor Sheehy asked if the old water meters no longer read accurately in the city or homeowner’s favor, to which Mr. Froslie responded that it is in the homeowner’s favor. Councilmember Moses asked if these meters have the capability for remote reading, to which Mr. Froslie said no. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Vice Mayor Dolan moved to approve the sole source purchase of Badger water meters from Badger Meter in the amount of $111,000, 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 8.9 ID 22-3189 Approve Professional Services Agreement and Sole Source Purchase of Satellite Imagery Analysis for Underground Water Leaks with Utilis DBA Asterra (Greg Froslie) Mr. Froslie advised that this item is approval of an agreement for satellite imagery analysis for underground water leaks with Asterra. He said the city conducts a comprehensive leak analysis every five to six years of the water distribution system to detect potential leaks. Mr. Froslie introduced Mr. Eric Trerotola with Asterra. Mr. Trerotola explained that their founder was part of a program to find water on Mars where they did find water 5,000 feet below the surface and used that same technology to find water on Earth. He explained that there are two approaches to find water: a reactive approach, where you are waiting for water to come up to the surface, or proactive Lake Havasu City Page 12 Printed on 3/9/2022 City Council Minutes - Final February 22, 2022 approach. He said the problem with a proactive approach is that most water is subsurface; therefore, you never get to see where it is. He said their technology finds the treated water that is in saturated soil (not swimming pools) with a boots-on-the-ground investigation crew that goes out to locate those leaks. He said the entire project includes both the analysis and boots-on-the-ground with a complete list of verified leaks. Councilmember Moses asked about their accuracy rate, to which Mr. Trerotola said they are approximately 80 percent sure when they see a leak, the challenge is verifying the leak which is what the field investigation crew does. He said when they detect a leak, they can bring it within a 300-foot radius. He said the system-wide scan will highlight five to ten percent of the system that needs to be looking for leaks either acoustically or using electronic devices to pinpoint the leak. Councilmember Moses asked if Asterra would provide the field investigation crew, to which Mr. Trerotola replied yes. Mayor Sheehy asked how long they have been in business, to which Mr. Trerotola replied six years, in 58 countries and 500 projects. He said they save 9.2 billion gallons of water per year. He explained that the synthetic aperture radar they use has been around since the late 1950’s, but their analysis and algorithms make this a viable project today. Vice Mayor Dolan asked if this project detect leaks only within the city’s main infrastructure or all leaks in the city, to which Mr. Froslie said the intention is to detect leaks within the city’s water system. Vice Mayor Dolan asked if the project would detect water leaks that may be found in the connections to the city’s system, to which Mr. Trerotola said they will be looking at the main waterlines, but since it is pipe agnostic they cannot see a customer-side leak versus a utility-side leak; therefore, quite often when they go out in the field to look for a leak it is on the customer side. Councilmember Moses asked if the city would notify citizens of any leaks detected on their property, to which Mr. Froslie replied yes. Mayor Sheehy opened the public hearing. Ms. Bonnie Toy asked if the company would scan one-time or would continue to scan and monitor for leaks, to which Mr. Trerotola explained that they would perform one scan with an analysis that identifies points-of-interest that would then be verified by the field investigation crews. There being no further comments, Mayor Sheehy closed the public hearing. Councilmember Moses moved to approve the professional services agreement and Lake Havasu City Page 13 Printed on 3/9/2022 City Council Minutes - Final February 22, 2022 sole source purchase of Satellite Imagery Analysis with Utilis dba Asterra in the amount of $110,000, 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 8.10 ID 21-3112 Approve Sole Source Purchases for the Trojan UV3000+ Disinfection Systems at the Island, Mulberry and North Regional Treatment Plants from Trojan Technologies (Thilak Fernando) Wastewater Superintendent Thilak Fernando advised that this item is requesting approval to purchase disinfection system improvements at the Island, Mulberry, and North Regional Wastewater Treatment Plants with Trojan Technologies. Mr. Fernando stated that Ultraviolet (UV) radiation is the most effective, safe, and environmentally friendly way to disinfect wastewater. He added that the UV system provides broad-spectrum protection against a variety of pathogens, including bacteria, viruses, and chlorine-resistant protozoa. Mayor Sheehy asked if the UV wiping system was hydraulic, to which Mr. Fernando replied yes. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Lane moved to approve sole source purchases for the Trojan UV3000+ Disinfection Systems at the Island, Mulberry and North Regional Treatment Plants exceeding $50,000 for Fiscal Year 2021-22 from Trojan UV Systems, a division of Trojan Technologies, and authorize the City Manager to execute a Trojan Contract Addendum, which is a mutual agreement to Purchase Order Terms and Conditions between the City and Trojan, 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 8.11 ID 22-3168 Ratify Acceptance of a Second Price Increase Exceeding 5% for Hill Brothers Chemical Co. for Odor Control Chemicals for the North Regional Wastewater Treatment Plant and the Mulberry Wastewater Treatment Plant (Thilak Fernando) Mr. Fernando said this item is to ratify the acceptance of a second price increase exceeding five percent with Hill Brothers Chemical Co. for odor control chemicals at the North Regional and Mulberry Wastewater Treatment Plants. He noted that due to supply chain disruptions and market conditions the city has a challenging time ahead. Lake Havasu City Page 14 Printed on 3/9/2022 City Council Minutes - Final February 22, 2022 Councilmember Moses asked if the city could go out to bid again for odor chemicals, to which Mr. Fernando said Hill Brothers Co. has indicated that they will not increase their prices for the remainder of the fiscal year. He said other suppliers are reluctant to sell to the city due to limited supply as we are not their primary customer. Mr. Froslie said due to limited supply if the city were to go back out to bid no one would bid as the product is in such high demand. He said because the city has an established relationship with this chemical supplier and is notified and given the first right of refusal, if the city were to say no, they could cancel the contract and sell to someone else that would pay the higher cost. He said it is strictly a passthrough, the company is not profiting from the increase. Mr. Froslie added that the city is looking at a new approach next year moving to biological odor control to reduce the city’s reliance on chemical products. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Moses moved to ratify acceptance of a second price increase effective January 1, 2022, exceeding 5% for Hill Brothers Chemical Co. (B22-PW-500145) for odor control chemicals for the North Regional Wastewater Treatment Plant and the Mulberry Wastewater Treatment Plant, 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 9. CURRENT EVENTS Councilmember Campbell reported that she was excited to join the Lake Havasu Metropolitan Planning Organization Executive Board this year. 10. FUTURE MEETINGS Tuesday, March 8, 2022 @ 6:00 p.m. – Regular Meeting Tuesday, March 22, 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 Councilmember Lane and seconded, the meeting adjourned at 7:50 p.m. CERTIFICATION Lake Havasu City Page 15 Printed on 3/9/2022 City Council Minutes - Final February 22, 2022 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 22nd 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 16 Printed on 3/9/2022