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 (Tentative Budget & CIP Adoption) Minutes - Final Tuesday, June 14, 2022 6:00 PM 1. CALL TO ORDER Mayor Sheehy called the meeting to order at 6:00 p.m. 2. INVOCATION: Stephanie Lueras, Christ Chapel Ms. Stephanie Lueras, Christ Chapel, gave the invocation. 3. PLEDGE OF ALLEGIANCE: Mohave Mortgage Members from Mohave Mortgage led in the Pledge of Allegiance and presented a donation in the amount of $3,500 to the Fraternal Order of Police. 4. ROLL CALL Present: 6- Mayor Cal Sheehy, Councilmember Nancy Campbell, Councilmember David Lane, Councilmember Michele Lin, Councilmember Cameron Moses and Councilmember Jeni Coke Absent: 1- Vice Mayor Jim Dolan 5. CALL TO THE PUBLIC Mr. James Maniaci, citizen, addressed the council regarding the annual Truth in Taxation hearing and notice of tax increase in the newspaper. He said this tax increase concentrates on the amount of additional funding Lake Havasu City will receive from property taxes which is almost $250,000. He added that the Federal Government does not give federal grants without taking an arm and leg back and hopes the City Council is fully prepared to absorb the costs of the eleven firefighters in the next three years. Ms. Bonnie Toy, citizen, addressed the council and spoke concerning zoning notices on properties already being developed. Ms. Frankie Lyons, citizen, addressed the council and said the city needs to come to an understanding of what affordable housing is as the City Council seems to be changing zones to meet the builder; however, according to the Housing of Urban Development the payment on rent should be 30 percent of a person’s income. She said the working industry Lake Havasu City Page 1 Printed on 6/29/2022 City Council Minutes - Final June 14, 2022 in Lake Havasu City cannot afford what is being built. She said it is the responsibility of the city and City Council to address affordable housing so the city’s workforce and infrastructure is not destroyed. Ms. Lyons spoke on the need for more water conservation measures and charging an entrance fee into Rotary Park to help fund city equipment and services. Ms. Sandy Seedorf, citizen, addressed the council and spoke on motorcycle rally events and fundraisers to support veterans. 6. CONSENT AGENDA 6.1 ID 22-3329 Approve the May 24, 2022, City Council Regular Meeting Minutes (Kelly Williams) 6.2 ID 22-3324 Adopt Resolution No. 22-3583 Approving Abandonment of the 5-foot by 40-Foot Portion of the 10-Foot by 50-Foot Public Utility and Drainage Easement on the Northeast side of 3009 Sombrero Drive, Tract 2228, Block 5, Lot 30 (Luke Morris) 6.3 ID 22-3334 Approval of the Final Subdivision Plat for Ocotillo Ridge, at 2020 Swanson Avenue, Tract 2268, Block 9, Lot 10, Creating a 7-Unit Residential Townhouse Subdivision in the Residential Uptown McCulloch Main Street (R-UMS) District (Luke Morris) 6.4 ID 22-3325 Approval of a Final Subdivision Plat for Rizos-Black Hill Subdivision for 4124 Black Hill Place, Tract 2282A, Block 2, Lots 8-B and 8-C, Creating 3 Residential Lots and 1 Parcel in the Single-Family Residential (R-1) District (Luke Morris) 6.5 ID 22-3335 Approval of the Final Subdivision Plat for Tonto Desert Oasis, at 2831 Tonto Drive, Tract 2257, Block 2, Lot 4, Creating a 6-Unit Residential Condominium Subdivision in the Residential Southgate (R-SGD) District (Luke Morris) 6.6 ID 22-3340 Adopt Resolution No. 22-3586 Ratifying the Submission of a Grant Application to the Fiesta Bowl Charities for the Replacement of Soft Safety Playground Surfacing at Ramada B in Rotary Community Park (Mike Keane) 6.7 ID 22-3330 Call for Executive Session Pursuant to A.R.S.§ 38-431.03(A) 4:00 p.m., Tuesday, June 28, 2022 (Kelly Williams) Mayor Sheehy stated that the City Council received a request from a citizen to speak on Item 6.3. Councilmember Moses moved to remove Item 6.3 for separate discussion, seconded by Councilmember Campbell, and carried by the following vote: Aye: 6 – Mayor Sheehy, Councilmember Campbell, Councilmember Lane, Councilmember Lin, Councilmember Moses, and Councilmember Coke. Lake Havasu City Page 2 Printed on 6/29/2022 City Council Minutes - Final June 14, 2022 Absent: 1 – Vice Mayor Dolan. Councilmember Moses amended his motion to approve the Consent Agenda with the exception of Item 6.3, which was removed for separate discussion, seconded by Councilmember Campbell, and carried by the following vote: Aye: 6 - Mayor Sheehy, Councilmember Campbell, Councilmember Lane, Councilmember Lin, Councilmember Moses and Councilmember Coke Absent: 1 - Vice Mayor Dolan 6.3 ID 22-3334 Approval of the Final Subdivision Plat for Ocotillo Ridge, at 2020 Swanson Avenue, Tract 2268, Block 9, Lot 10, Creating a 7-Unit Residential Townhouse Subdivision in the Residential Uptown McCulloch Main Street (R-UMS) District (Luke Morris) Planning Division Manager Luke Morris advised that this item is requesting approval to create a 7-unit townhouse subdivision condominium project at 2020 Swanson Avenue. He said the project is just under one-half acre in size and consists of seven units (16 units per acre). He added that subdivision will have a common area, common recreational area, and attached garages. Mayor Sheehy opened the public hearing. Ms. Peggy Pollock, citizen, addressed the council and spoke concerning city density. She said historically city density comes from the city itself and not from jamming a bunch of people together off McCulloch Boulevard. She said the city has already lost the way to have real city density because there are no apartments above the buildings on McCulloch Boulevard. She said she believes the city is making a huge mistake trying to squeeze people into 500-square foot condominiums and the city is at a point where they need to step back, stop changing zoning laws, and just let everything settle. She said the housing market will self-correct like all markets do eventually and thinks the City Council is “Californicating” our beautiful city and we are losing what we have. Mayor Sheehy explained that the item before the council is approval of the final subdivision plat which is not changing the existing zoning. He said the zoning for the McCulloch Boulevard with residential above business/commercial is allowed in the commercial district. He said some of the conversations that the City Council has been having with density the zoning is already there, it is just ensuring that the zoning and General Plan intentions were met. Ms. Pollock asked if the density in the downtown area (McCulloch Boulevard) is included in the city’s 90,000 projected population, to which Mayor Sheehy said yes. Lake Havasu City Page 3 Printed on 6/29/2022 City Council Minutes - Final June 14, 2022 Ms. Pollock noted that there are properties outside the city limits (Topock and Golden Valley) where citizens can live that are relatively cheaper but require a commute. Ms. Seedorf addressed the council regarding the rental and housing market in Newport Beach. There being no further comments, Mayor Sheehy closed the public hearing. Councilmember Lane moved to approve the Final Subdivision Plat for Ocotillo Ridge, at 2020 Swanson Avenue, Tract 2268, Block 9, Lot 10, Creating a 7-Unit Residential Townhouse Subdivision in the Residential Uptown McCulloch Main Street (R-UMS) District, seconded by Councilmember Moses, and carried by the following vote: Aye: 6 - Mayor Sheehy, Councilmember Campbell, Councilmember Lane, Councilmember Lin, Councilmember Moses and Councilmember Coke Absent: 1 - Vice Mayor Dolan 7. CORRESPONDENCE, COMMUNICATIONS, PETITIONS, ANNOUNCEMENTS, CITY MANAGER REPORT 7.1 ID 22-3333 Announce Vacancies on Lake Havasu City Boards, Committees, and Commissions (Kelly Williams) City Clerk Kelly Williams announced the current and upcoming vacancies on various Lake Havasu City Boards, Committees, and Commissions. She added that applications are available on the City’s website at www.lhcaz.gov. 7.2 ID 22-3328 City Manager’s Report (Jess Knudson) City Manager Jess Knudson reported on the following: • Announced various events and proclamations. 8. PUBLIC HEARINGS 8.1 ID 22-3322 Series #9 Liquor Store Liquor License, Texaco Food Mart, 1571 S. Palo Verde Boulevard/Heron (Kelly Williams) Ms. Williams advised that Ms. Felicity Ann Heron has applied for a Series #9 Liquor Store Liquor License for Texaco Food Mart located at 1571 S. Palo Verde Boulevard. She said all posting requirements have been met, all fees have been paid, and no objections were received. Ms. Williams noted 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 6/29/2022 City Council Minutes - Final June 14, 2022 hearing. Councilmember Campbell moved to recommend that the Arizona Department of Liquor Licenses & Control approve a Series #9 liquor store liquor license for Texaco Food Mart, 1571 S. Palo Verde Boulevard, seconded by Councilmember Moses, and carried by the following vote: Aye: 6 - Mayor Sheehy, Councilmember Campbell, Councilmember Lane, Councilmember Lin, Councilmember Moses and Councilmember Coke Absent: 1 - Vice Mayor Dolan 8.2 ID 22-3321 Series #10 Beer & Wine Store Liquor License, Mobil Food Mart, 121 N. Lake Havasu Avenue/Heron (Kelly Williams) Ms. Williams advised that Ms. Felicity Ann Heron has applied for a Series #10 Beer & Wine Store Liquor License for Mobil Food Mart located at 121 N. Lake Havasu Avenue. She said all posting requirements have been met, all fees have been paid, and no objections were received. Ms. Williams noted that the location is properly zoned for a Series #10 liquor license. Mayor Sheehy opened the public hearing. Mr. Maniaci addressed the council and thanked Today’s News Herald for the detailed descriptions of the council meeting items in the newspaper. Councilmember Coke moved to recommend that the Arizona Department of Liquor Licenses & Control approve a Series #10 beer and wine store liquor license for Mobil Food Mart, 121 N. Lake Havasu Avenue, seconded by Councilmember Campbell, and carried by the following vote: Aye: 6 - Mayor Sheehy, Councilmember Campbell, Councilmember Lane, Councilmember Lin, Councilmember Moses and Councilmember Coke Absent: 1 - Vice Mayor Dolan 8.3 ID 22-3316 Series #10 Beer & Wine Store Liquor License, Maverik, 2660 Sweetwater Avenue/Merrett (Kelly Williams) Ms. Williams advised that Ms. Lauren Kay Merrett has applied for a Series #10 Beer & Wine Store Liquor License for Maverik located at 2660 Sweetwater Avenue. She said all posting requirements have been met, all fees have been paid, and no objections were received. Ms. Williams noted that the location is properly zoned for a Series #10 liquor license. Lake Havasu City Page 5 Printed on 6/29/2022 City Council Minutes - Final June 14, 2022 Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Moses moved to recommend that the Arizona Department of Liquor Licenses & Control approve a Series #10 beer and wine store liquor license for Maverik, 2660 Sweetwater Avenue, seconded by Councilmember Lin, and carried by the following vote: Aye: 6 - Mayor Sheehy, Councilmember Campbell, Councilmember Lane, Councilmember Lin, Councilmember Moses and Councilmember Coke Absent: 1 - Vice Mayor Dolan 8.4 ID 22-3338 Adopt Resolution No. 22-3584 Adopting the Five-Year Capital Improvement Plan (CIP) for Fiscal Years 2023-27 (Jill Olsen) Administrative Services Director Jill Olsen advised that the item before council is to adopt the Five-Year Capital Improvement Plan (CIP). She said there have been two changes since the May budget session, including the addition of the Taxiway Alpha Pavement Project in the amount of $75,000, and $600,000 increase for the Mulberry Treatment Plant Aeration Basin Repair Project. Ms. Olsen said the total Five-Year CIP Plan is $131.1 million and the total Fiscal Year (FY) 2022-23 CIP is $46.8 million. She added that all projects within the Five-Year CIP Plan are fully funded. Ms. Olsen reviewed the FY 2022-23 CIP projects and totals as follows: • Airport: $9,135,000 o Rehab & Reconstruct Taxiway, Replace AWOS System, Runway Strengthening & Overlay, Safety Area, Taxiway Alpha Pavement • Drainage: $3,370,000 o Avalon Drain 2, Wash Crossing Improvements, Mohican Dr., Daytona Wash 4, Havasupai Wash 6 • General Government: $9,465,525 o PD Fuel Facility, Courthouse, City Fuel Facility, Bridgewater Channel Dredging, Downtown Catalyst, Police Facility & Jail Rehab • Parks: $3,061,750 o HVAC Aquatic Center, Dick Samp Park Pickle Ball Courts • Streets: $1,350,000 • Wastewater: $11,459,480 o ITP Flow Equalization Basin, Chip Dr. Lift Station, Vadose Well, MTP Aeration Basin, Park Ave. Lift Station, North End WW System Expansion, 2023 Pipeline Rehab • Water: $8,998,000 o Tank & Booster Station Improvements, Water Main Replacements, Lake Havasu City Page 6 Printed on 6/29/2022 City Council Minutes - Final June 14, 2022 Well Drilling & Backup Water Supply, Horizontal Collector Well Redevelopment Councilmember Campbell questioned the amount allocated in the CIP for the Downtown Catalyst Project ($815,000), to which Ms. Olsen said those funds are allocated for project design. Councilmember Campbell asked if $815,000 will be used next fiscal year for project design, to which Ms. Olsen said they do not have details as they are still in the process, but it has been allocated in the CIP budget should the decision be made to do something. Mayor Sheehy said the Downtown Catalyst Project is a multi-phase public outreach approach that will come back to the Parks and Recreation Advisory Board and City Council for consideration. Councilmember Campbell asked for clarification on the “TBD” listed next to several CIP projects, to which Ms. Olsen explained that the “TBD” are project numbers that have not been determined as the numbers are not assigned until created. Councilmember Campbell asked whether the city is moving forward with the City Fuel Facility Project, to which Mayor Sheehy explained that as part of the entire budget plan, allocations must be included to have the ability and flexibility to move forward if that financially makes the most sense for the city. Mayor Sheehy opened the public hearing. Ms. Toy addressed the council and asked if $9 million has been allocated for a new courthouse or the existing courthouse, to which Mayor Sheehy replied that $9,465,525 has been allocated for General Government projects including the Police Department Fuel Facility, (new) Courthouse, City Fuel Facility, Bridgewater Channel Dredging, Downtown Catalyst, and Police Facility and Jail Rehabilitation. There being no further comments, Mayor Sheehy closed the public hearing. Councilmember Campbell questioned the funding source for the Wastewater projects, to which Ms. Olsen said currently the Wastewater funds have sufficient amounts for the projects identified for FY 2022-23 projects; however, it is in year five and beyond that the funding is a concern for the Water Fund as there may not be sufficient funding for continued projects. Councilmember Lane moved to adopt Resolution No. 22-3584 adopting the Five-Year Capital Improvement Plan for the period of July 1, 2022, through June 30, 2027, seconded by Councilmember Moses, and carried by the following vote: Lake Havasu City Page 7 Printed on 6/29/2022 City Council Minutes - Final June 14, 2022 Aye: 6 - Mayor Sheehy, Councilmember Campbell, Councilmember Lane, Councilmember Lin, Councilmember Moses and Councilmember Coke Absent: 1 - Vice Mayor Dolan 8.5 ID 22-3339 Adopt Resolution No. 22-3585 Adopting the Fiscal Year 2022-23 Tentative Budget (Jill Olsen) Ms. Olsen advised that the item before council is to adopt the tentative budget which establishes a cap of $225,766,868 for the annual Fiscal Year 2022-23 budget. She said when the City Council adopts the final budget, they can adopt a lower amount but cannot adopt a higher amount than the cap that is adopted with the tentative budget. She said the items within the total amount may be changed or the amount may be reduced for the final budget scheduled for adoption on June 28, 2022. Ms. Olsen reviewed the changes since the May 2022 proposed budget session as follows: • $10 million Operating transfer from General Fund to Highway User Revenue Fund (HURF) for potential road project(s). • $3 million added for State Shared Revenue estimate • Carryforwards/Other of approximately $1.1 million Ms. Olsen stated that the property tax rate is remaining the same; however, there is an increase in the assessed valuation that is completed by Mohave County which results in approximately $248,000 in additional revenue and $140,000 in new construction for a total increase in property tax revenue of $388,000 that has been included in the FY 2022-23 budget. Councilmember Moses asked if the American Rescue Plan Act (ARPA) funds are included in the $10 million transfer from the General Fund to HURF, to which Ms. Olsen said the amount does not include APRA, only General Fund balance that is available over and above what is needed for the Budget Stabilization Reserve (BSR). Councilmember Campbell questioned the increases in the departmental budgets for example the City Manager’s budget increased from $607,000 to $818,000, to which Ms. Olsen explained that the increases are due to the reorganization of budgeted line items and expenditures that were moved from non-departmental into the departmental budgets, as well as the Cost-of-Living Adjustment (COLA) and step increases. Ms. Olsen added that the process of transferring funds in the inter-departmental funds allows for better manageability and accountability. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Lake Havasu City Page 8 Printed on 6/29/2022 City Council Minutes - Final June 14, 2022 Mayor Sheehy stated that in accordance with State Statutes the tentative budget adoption sets the cap which allows the City Council to reduce the budget but not increase the budget. He said staff has done a good job taking into account different grant opportunities and carryforwards due to supply-chain issues for projects moving forward. Councilmember Coke moved to adopt Resolution No. 22-3585 adopting the Fiscal Year 2022-23 Tentative Budget, seconded by Councilmember Lane, and carried by the following vote: Aye: 6 - Mayor Sheehy, Councilmember Campbell, Councilmember Lane, Councilmember Lin, Councilmember Moses and Councilmember Coke Absent: 1 - Vice Mayor Dolan 8.6 ID 22-3306 Adopt Ordinance No. 22-1290 Approving a Planned Development Rezone Major Amendment to the Previously Approved Planned Development for 2110, 2160, 2170, 2180, and 2190 Swanson Avenue, Tract 2268, Block 2, Lots 1 Through 11, in the Mixed Use Uptown McCulloch Mainstreet District/Planned Development (MU-UMS/PD), Replacing Assisted Living Units, Memory Care Units, Restaurant, Health Care, and Medical Office Uses, for Lots 2 Through 5, with Multiple-Family Residential Uses (Luke Morris) Mr. Morris said the subject properties are approximately 1.56-acres in size and are located on Swanson Avenue near University Way just west of Acoma Boulevard. He said the properties are part of an overall Planned Development (PD), consisting of Lots 2 through 5, and are currently vacant. He said the properties to the north across Swanson Avenue are a mix of vacant lots and commercial development with the surrounding properties zoned Mixed Use Uptown McCulloch Mainstreet District (MU-UMS) and Mixed Use Uptown McCulloch Mainstreet District/Planned Development (MU-UMS/PD). Mr. Morris explained that in 2016, a PD was approved by the City Council for a project that consisted of four phases, Phase 1 (79 independent senior living units and accessory commercial uses which has been developed as The Views), Phase 2 (50 assisted living units and 13 memory care units), Phase 3 (restaurant, health care and medical offices), and Phase 4 (retail commercial uses). He said of the four phases, Phases 2, 3, and 4 are still undeveloped. Mr. Morris said the request is to combine Phases 2 and 3 and replace them with multi-family residential units. He added that Phase 1 (developed) and Phase 4 (undeveloped) are not part of this PD request amendment. He reviewed the site submittal consisting of 66 residential units in four two-story buildings surrounded with a density of about 42 units per acre. The units are a mix of 54 one-bedroom and 12 two-bedroom units. He stated that per the Development Code, the project requires at least 66 parking Lake Havasu City Page 9 Printed on 6/29/2022 City Council Minutes - Final June 14, 2022 spaces (one for each dwelling unit) and the plan shows 78 parking spaces provided; however, it does not specify which spaces are covered. Mr. Morris reviewed the proposed building elevation. He said the MU-UMS District only allows commercial uses on the ground floor and the proposed development calls for no commercial uses in the buildings; therefore, the applicant will need an exception to this requirement. Mr. Morris stated that the General Plan designates this property as High-Density Residential which supports this request, and added that the Planning and Zoning Commission recommended approval of this request 5 to 1 with the following conditions: 1) the development shall substantially match the proposed development plan provided with the request, 2) 100% of the gross floor area in the structures may be occupied by residential uses, 3) dwelling units may be located on the ground floor, and 4) design review for compliance with the Development Code and the conditions of this approval shall be required for the project prior to building permit issuance. Mr. Lucas Still, Desert Land Group, addressed the council and said he has been a part of this project since 2016 when they did the original rezone and the original idea was to put The Views and all the auxiliary commercial uses (bistro, liquor license, commercial restaurant, and other commercial-type uses ) together with the assisted living units based upon demand; however, after they bought it and after the pandemic the need for assisted and memory care became apparent that it was not going to happen and they looked at other medical-related uses which turned out to be a better use at a different location. He added that they are now selling the property and the buyer is wanting to do a higher density multi-family project that will appeal to the Arizona State University (ASU) campus and uptown, with a denser type of living that will target a cost that he will not call “affordable or attainable” however the buyer is trying to compete based on a good quality product at a good cost. Councilmember Moses asked if there would be common areas for these buildings, to which Mr. Still said there would be no common areas inside the buildings just on the grounds. Councilmember Moses asked if the units would be individually sold, to which Mr. Still replied no, he said the intent is to use them as apartments. Councilmember Moses asked if there would be an office on-site, Mr. Still replied yes. Councilmember Lin requested clarification on the proposed entrance to the property, to which Mr. Still said there are two points of egress and ingress, one on the east side closer to Acoma Boulevard and Phase 4 which will have access off University Way, and one right next to The Views entrance. Councilmember Lin asked if only one parking space is being proposed per unit, to which Mr. Still said they will have more parking spaces than the total number of units. He said the code requires 66 covered parking spaces and they are proposing to do at least 66 covered with a total of 78 parking spaces. Councilmember Lin expressed her concerns with overflow parking using the student parking spaces at Lake Havasu City Page 10 Printed on 6/29/2022 City Council Minutes - Final June 14, 2022 ASU. Councilmember Lin asked who their target audience would be and estimated price range, to which Mr. Still said to meet the proposed density the units will have smaller floorplans (600-square feet for one-bedroom plans and 800 to 900-square feet for two-bedroom plans); therefore, given the size, they expect to compete on the lower end of the market for units that have been built in 2010 and after. He added that they are trying to hold their prices down as low as possible to compete based on a cost basis. He added that the same developer has built a few other multi-family projects in town and wants to do more. He said he has been successful at occupying these at a pretty high rate and does that because he offers them at a good rental rate compared to competition. Councilmember Lin asked if they have discussed this project with ASU, to which Mr. Still said yes. Councilmember Lin asked if ASU had any issues, to which Mr. Still replied no. He added that a lot of the nursing students, occupying some of the other units that the developer owns right now, are excited to have more opportunities. Mayor Sheehy opened the public hearing. Mr. Robert Bennett, citizen, addressed the council and said he owns the vacant property directly across from the subject property. He said years ago when the city decided that they wanted to improve the uptown district they created an RU-D with the idea that the city was going to supply parking spaces and add a $5,000 rate for each parking space that any developer could buy. He said now there is a situation where this developer wants to put in a substantial number of apartments without adequate parking. He said he has a problem with that because he bought a lot across the street that he uses for parking that he had to purchase. Mr. Bennett said the city needs to address the parking problem and he is not willing to put up with anything less than that and intends to protect his property rights. He said the subject property does not have adequate parking and should build parking underneath similar to the El Condo complex. Mr. Bennett said the city needs to address the original agreement when the RU-D was created years ago in the uptown district where the city was going to buy property and install parking lots. He said if the city does not do that they are in violation of the agreement and are diminishing his property value. He added that he does not have a problem with the apartments, but something needs to be done about the parking. Mayor Sheehy asked for clarification from staff on the parking situation Mr. Bennett was referring to, to which Mr. Morris said he was not certain; however, the RU-D Mr. Bennett was referring to may be the R/UDAT Study that was completed 10 or 12 years ago. Mayor Sheehy asked Mr. Bennett for clarification regarding the $5,000 rate per spot, to which Mr. Bennett said it was in the agreement. He stated that he was been through this Lake Havasu City Page 11 Printed on 6/29/2022 City Council Minutes - Final June 14, 2022 before with the city when they originally did the development and wanted him to start paying taxes to support McCulloch Boulevard. He said he set up a group to fight it and was successful. He said at the time the city was talking about building 2 to 4-story garages on the back of privately-owned property along McCulloch Boulevard, which they could not do legally because they did not own the property. Mayor Sheehy asked if this was only discussion or if Mr. Bennett paid $5,000 per lot, to which Mr. Bennett said he paid $30,000 for a lot so he would never have to pay that rate. Ms. Diana Goodrich, citizen, addressed the council and said she rents a unit from Mr. Bennett. She said ever since the city did the road work on Swanson Avenue that took away parking along the street, every day she goes into work she has to chase people out of the parking lot that are parking there from ASU, the coffee shop, and The Views. She said the number of proposed parking spaces for this project is not enough and the city needs to do something. Ms. Toy addressed the council and asked if the potential buyer would have to come back to request a new development plan if they went in a different direction for this property. Mayor Sheehy explained that the item before the council is a PD that already exists and reviewed the existing uses and parking. Mayor Sheehy said this request is to change the existing use to residential use that includes four two-story buildings (66 units total). He said if approved, the developer would have to go back through a similar process and request entitlements through a public process for any changes. Ms. Sue Hall, citizen, addressed the council and said there is going to be parking issues if the developer is proposing to put in 66 units with 78 parking spaces as most people own more than one vehicle. There being no further comments, Mayor Sheehy closed the public hearing. Mr. Morris said the zoning for this district requires covered parking and requires one covered parking space per dwelling unit. He said the proposed request is for 66 dwelling units and the developer is proposing additional parking for a total of 78 parking spaces. He added that the proposed parking meets the parking requirements of the Development Code. Mayor Sheehy asked if the applicant has considered the potential parking issue that may arise from tenants of the development, to which Mr. Still said they have and based on the unit mix of existing units that the developer current has, they feel this is an adequate parking mix. Mr. Still said when they originally did the PD there was parking in the street and they have made adjustments to add parking back on site to account for that; therefore, they feel confident with that but understand the fine line and believes their PD is asking Lake Havasu City Page 12 Printed on 6/29/2022 City Council Minutes - Final June 14, 2022 for a maximum of 66 units so if they had to come backwards slightly from that density to get more parking per unit they would do so in the interest of making sure they have a functional development for the people they are trying to attract. Councilmember Campbell addressed her concerns regarding parking and density issues. She stated that she will be meeting with staff in the near future to discuss downtown density and parking. There was discussion regarding the dissenting vote from the Planning & Zoning Commission meeting. Mayor Sheehy noted that the dissenting vote was regarding the current signage on the subject property. Councilmember Lane moved to adopt Ordinance No. 22-1290 approving a Planned Development Rezone Major Amendment to the previously approved Planned Development for 2110, 2160, 2170, 2180, and 2190 Swanson Avenue, Tract 2268, Block 2, Lots 1 through 11, in the Mixed Use Uptown McCulloch Mainstreet District/Planned Development (MU-UMS/PD), replacing assisted living units, memory care units, restaurant, health care, and medical office uses, for Lots 2 through 5 (Phase 3), with multiple-family residential uses, with the following conditions: 1. The development shall substantially match the Proposed Development Plan provided with the request, 2. 100% of the gross floor area in the structures may be occupied by residential uses, 3. Dwelling units may be located on the ground floor, and 4. Design Review for compliance with the Development Code and the conditions of this approval shall be required for the project prior to building permit issuance. Motion seconded by Councilmember Moses, and carried by the following vote: Aye: 5 - Mayor Sheehy, Councilmember Campbell, Councilmember Lane, Councilmember Moses and Councilmember Coke Nay: 1 - Councilmember Lin Absent: 1 - Vice Mayor Dolan 8.7 ID 22-3336 Award Bid for the 2022 Water Main Replacement Project to Premier Backhoe, Inc. (Jason Hart) Project Manager Jason Hart advised that the item before council is to award bid for the 2022 Water Main Replacement Project to Premier Backhoe, Inc., in the amount of $1,861,298.07. Mr. Hart said this project will replace one-half mile of 12-inch potable water main on Lake Havasu Avenue between Kiowa Boulevard and Acoma Boulevard Lake Havasu City Page 13 Printed on 6/29/2022 City Council Minutes - Final June 14, 2022 and replacing 1,200 linear feet of 4-inch water main on Bimini Lane, upgrading to 8-inch water main and appurtenances. He spoke on the water main failure that occurred on April 27, 2022, on Lake Havasu Avenue. He added that the project is scheduled to take approximately 150 calendar days with an anticipated completion date in February 2023. Councilmember Lane said a temporary patch has been applied to this road as a cost savings as this project was coming forward. Councilmember Campbell said this water main has broken several times and was excited for this project to be completed. She complimented the city on the temporary (cold) patch. Mayor Sheehy opened the public hearing. Mr. Maniaci addressed the council and asked if there would be a plan to detour traffic during project construction, to which Mr. Hart said the road will be open for traffic during construction adding that the scope of work includes traffic control plans from the contractor to allow for two-way traffic and added that they will have flaggers as needed. There being no further comments, Mayor Sheehy closed the public hearing. Councilmember Moses asked if the local businesses in the area will be notified of any closures and what to expect, to which Mr. Hart said this project will require a high level of public relations and they will be in constant contact with the business owners. Councilmember Campbell moved to award the bid for the 2022 Water Main Replacement Project to Premier Backhoe, Inc., in the amount of $1,861,298.07, seconded by Councilmember Lane, and carried by the following vote: Aye: 6 - Mayor Sheehy, Councilmember Campbell, Councilmember Lane, Councilmember Lin, Councilmember Moses and Councilmember Coke Absent: 1 - Vice Mayor Dolan 8.8 ID 22-3332 Approve the Purchase of Three (3) Ford F-150 Pickups for Water Division with San Tan Auto Partners, LLC, dba San Tan Ford (Bill Young) Transportation & Maintenance Superintendent Bill Young addressed the council and said this item is requesting approval of three Ford F-150 pickups with San Tan Ford in the amount of $85,977.51 to replace two existing vehicles that are beyond their lifespan and adding one vehicle for a new position in the Water Department. Councilmember Lin asked if this will replace three existing vehicles, to which Mr. Young said they will be replacing two existing vehicles and adding one vehicle for a new Field Lake Havasu City Page 14 Printed on 6/29/2022 City Council Minutes - Final June 14, 2022 Supervisor position in the Water Department. Mr. Young reviewed the age, mileage, and repair and maintenance costs of the existing vehicles. Councilmember Lin requested that the agenda materials include details on the existing vehicles and scoring based on the Vehicle Replacement Plan. Mayor Sheehy opened the public hearing. Ms. Toy addressed the council and asked if the city has looked into electric vehicles. There being no further comments, Mayor Sheehy closed the public hearing. Councilmember Moses moved to approve the purchase of three (3) Ford F-150 Pickup Trucks with San Tan Auto Partners, LLC, dba San Tan Ford in the amount of $85,977.51 utilizing the City’s cooperative purchase agreement 2464, seconded by Councilmember Lane, and carried by the following vote: Aye: 6 - Mayor Sheehy, Councilmember Campbell, Councilmember Lane, Councilmember Lin, Councilmember Moses and Councilmember Coke Absent: 1 - Vice Mayor Dolan 8.9 ID 22-3341 Approve Change Order No. 2 to Construction Contract for the McCulloch Boulevard Pavement Rehab Project with Combs Construction Company, Inc. ( Jason Hart) Mr. Hart advised that this item is to approve Change Order No. 2 with Combs Construction Company, Inc., in the amount of $25,791.34. Mr. Hart said the change order was necessary due to a water main break that occurred on Mulberry Avenue and Scott Drive. Councilmember Moses asked for the total cost of the McCulloch Boulevard Pavement Rehabilitation Project, to which Mr. Hart said the total cost, including the Change Order No. 2, is $832,000. Councilmember Moses asked what amount the contractor originally submitted for Change Order No. 2 prior to negotiations, to which Mr. Hart replied $51,000. Councilmember Lane said the reason for these breaks is due to the city’s failing infrastructure and deferred maintenance. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Lake Havasu City Page 15 Printed on 6/29/2022 City Council Minutes - Final June 14, 2022 Councilmember Lane moved to approve Change Order No. 2 to Construction Contract for the McCulloch Boulevard Pavement Rehab Project with Combs Construction Company, Inc., in the amount of $25,791.34, seconded by Councilmember Coke, and carried by the following vote: Aye: 6 - Mayor Sheehy, Councilmember Campbell, Councilmember Lane, Councilmember Lin, Councilmember Moses and Councilmember Coke Absent: 1 - Vice Mayor Dolan 9. CURRENT EVENTS There were no council committee reports. 10. FUTURE MEETINGS Tuesday, June 28, 2022 @ 5:00 p.m. – Work Session Tuesday, June 28, 2022 @ 6:00 p.m. – Regular Meeting (Final Budget Adoption) Tuesday, June 28, 2022 @ 6:00 p.m. – Regular Meeting (Property Tax Levy Adoption) 11. FUTURE DISCUSSION ITEMS There were no requests from council for future discussion items. 12. ADJOURN Upon motion by Councilmember Lane and seconded, the meeting adjourned at 7:34 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 14th day of June, 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 6/29/2022