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 (Property Tax Levy Adoption) Minutes - Final Tuesday, July 12, 2022 6:00 PM 1. CALL TO ORDER Mayor Sheehy called the meeting to order at 6:00 p.m. 2. INVOCATION: Chaplain Bea Evans, KNLB Christian Radio Chaplain Bea Evans, KNLB Christian Radio, gave the invocation. 3. PLEDGE OF ALLEGIANCE: Lake Havasu Ballet Mr. Nathan Cottam, Lake Havasu Ballet, 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. Morgan Braden, citizen, addressed the council and read a statement into the record regarding his involvement with the administration of Havasu Orchids & Onions. Mr. Michael Petrofsky, citizen, addressed the council regarding a parking citation he received in violation of Lake Havasu City Code Section 10.12.140, Parking Out of Space, which he interprets as meaning that vehicles cannot take up two stalls. He said there are parking spaces and areas with no parking curbs; however, the city has left six areas of curbs from Querio Drive to Acoma Boulevard unpainted. He said there is open curb space (approximately 20-25 feet on each side) along Pima Wash that is plain unmarked curb with no signs in the entire area addressing this particular ordinance. He wanted to bring it to the attention of the City Council that traffic engineering needs to do a better job with the curbs and signage in this area. Mr. Kelly Lutz, citizen, addressed the council regarding several recent zoning changes altering income-generating retail and commercial areas to high-density residential areas. He Lake Havasu City Page 1 Printed on 7/28/2022 City Council Minutes - Final July 12, 2022 asked how this benefits the people of Lake Havasu City? He also addressed his concerns with the water conservation and landscape code discussion, and high bids received for several city projects including the Aquatic Center HVAC Replacement ($3 million) and New Municipal Courthouse ($7 million). He asked where is the fiscal responsibility the citizens should expect? Ms. Bonnie Toy, citizen, addressed the council requesting that the rates at the Aquatic Center be lowered during the summer months. Ms. Kelly Meister, citizen, addressed the council and said the City Council’s job is to work for the people of Lake Havasu City which involves teamwork and integrity. She said Councilmembers Coke, Lin, and Dolan have been smeared and threatened by the political agenda of Robert Peterson on Havasu Orchids & Onions. She said playing dirty and trying to run people off to get elected to the city council is wrong, and said the city needs to work as a team to keep the integrity of Lake Havasu City together. Ms. Christine Simmons, citizen, addressed the council and spoke on the kindness matters movement and supporting local businesses. Mr. Don Wisdom, citizen, addressed the council and encouraged citizens to vote at the Primary Election on August 2, 2022. Ms. Frankie Lyons, citizen, addressed the council and spoke on rezoning, water conservation, and educating the public on reducing their water usage. She asked why the Airport Advisory Board would recommend helicopter business on the island which is dense in population when the city has an airport with businesses. 6. CONSENT AGENDA 6.1 ID 22-3388 Approve the June 28, 2022, City Council Work Session and Regular Meeting Minutes (Kelly Williams) 6.2 ID 22-3323 Adopt Resolution No. 22-3582 Approving the Submission of an Application for a WaterSMART Water and Energy Efficiency Grant to the Bureau of Reclamation to Upgrade Well Water Flow Meters and Water Service Meters, and Authorizing Execution of Necessary Documents and Implementation of the Activities Funded by the Grant (Greg Froslie) 6.3 ID 22-3356 Adopt Resolution No. 22-3592 Appointing the Chief Fiscal Officer for Fiscal Year 2022-23 (Jill Olsen) 6.4 ID 22-3354 Approve Resolution No. 22-3595 Approving and Authorizing the City Manager to Execute a Memorandum of Understanding (MOU) with the Arizona Department of Public Safety (AZ DPS) for Use of the Arizona Gang Database (AZ GangNet) (Chief Doyle) Lake Havasu City Page 2 Printed on 7/28/2022 City Council Minutes - Final July 12, 2022 6.5 ID 22-3385 Authorize the City Manager to Execute the Environmental Access Agreement with Richard Holmes to Allow Installation of a Groundwater Monitoring Well and Related Activities on City Parcel “S” Adjacent to the Texaco Max Mini Mart Located at 1571 Palo Verde Boulevard S. (Jeff Thuneman) 6.6 ID 22-3358 Approve Sole Source Purchase of Two LIFEPAK 15 Replacement Units from Stryker Medical (Chief Pilafas) 6.7 ID 22-3386 Call for Executive Session Pursuant to A.R.S.§ 38-431.03(A) 5:00 p.m., Tuesday, July 26, 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 22-3384 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 22-3387 City Manager’s Report (Jess Knudson) City Manager Jess Knudson reported on the following: • Acknowledged the retirement of Sandy McCormack (Administrative Services) with 25 years of service. • Update on Lake Havasu City Code, Title 14, Political and Campaign Signs. • Announced various events and proclamations. 8. PUBLIC HEARINGS 8.1 ID 22-3377 Class B Bingo License Application for Meals on Wheels, Inc./Browning (Kelly Williams) Ms. Williams advised that Don Browning with Meals on Wheels, Inc., has applied for a Class B Bingo License to be held at 4links DBA WinWin Bingo, 5601 Highway 95 (The Shops at Lake Havasu). Ms. Williams said the bingo games will be held five days a week, Wednesday through Sunday, from 10:00 a.m. to 10:00 p.m. She added that the application was reviewed internally and no objections were received, and all fees were paid. Ms. Williams explained that bingo licenses are regulated by Arizona Department of Revenue, Bingo Section, and said a Class B license is designed to allow qualified Lake Havasu City Page 3 Printed on 7/28/2022 City Council Minutes - Final July 12, 2022 organizations to generate funds for their sponsoring charitable organizations. Councilmember Lane asked if Meals on Wheels, Inc. is a local non-profit charitable organization and if the funds raised through this license will be kept locally, to which Mr. Don Browning, applicant, said Meals on Wheels, Inc., is a national initiative but the specific use for these funds will stay within the city limits. 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 Revenue approve a Class B Bingo License for Meals on Wheels, Inc., at 5601 Highway 95 (The Shops at Lake Havasu), 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 8.2 ID 22-3392 Adopt Resolution No. 22-3596 Levying $0.6718 Upon the Assessed Valuation of the Property within Lake Havasu City, Subject to Taxation, Upon Each One Hundred Dollars ($100.00) of Valuation, Sufficient to Raise the Amount Estimated to be Required in the Annual Budget Less the Amount Estimated to be Received from Fines, Licenses, and Other Sources of Revenue which is an Additional Levy Amount of $248,432 Excluding New Construction, due to the Increase in Assessed Valuation; Providing for a General Fund for the General Municipal Expenses for the Fiscal Year Ending June 30, 2023 (Jill Olsen) Administrative Services Director Jill Olsen presented a video on property taxes titled “Let’s talk about property taxes!” Ms. Olsen said this item is the adoption of the property tax levies which have been discussed in detail throughout the budget process and several meetings. Ms. Olsen reviewed the General Fund Property Tax Levy as follows: • Primary Assessed Value o $834,726,780 (Adopted FY 21-22) o $892,489,091 (Proposed FY 22-23) • Tax Levy o $5,607,695 (Adopted FY 21-22) o $5,995,742 (Proposed FY 22-23) • Rate Per $100 o $0.6718 (Adopted FY 21-22) o $0.6718 (Proposed FY 22-23) Lake Havasu City Page 4 Printed on 7/28/2022 City Council Minutes - Final July 12, 2022 *The $388,047 Tax Levy increase in FY 22-23 is due to new construction and increase in assessed value (rate not changing). Ms. Olsen said staff is proposing to the leave the property tax rate the same (flat) at $0.6718 per $100 in assessed valuation. The amount of revenue that the city receives does increase over the amount of revenue received in Fiscal Year 2022 due to the increase in assessed value. She added that the additional revenue that the city would collect as a result of the increase in assessed value is approximately $248,000 and the remainder of the increase in revenues is due to new construction. Councilmember Campbell said she has received a lot of complaints from citizens regarding the rates and asked what the impact would be if the rate was adjusted from $0.6718 to $0.65, to which Ms. Olsen said the amount of revenue that would be lost as a result would need to be reduced in the General Fund budget. Councilmember Campbell said realistically reducing the rate to $0.65 would result in a reduction of approximately $100,000 in General Fund revenues. She said she was in favor of reducing the rate. Councilmember Lin asked what the impact would be for property owners with an assessed valuation of $100,000, $200,000, $300,000, etc., to which Ms. Olsen said she would not be able to calculate the exact numbers at this time; however, if Councilmember Campbell is correct, then $100,000 would probably equate to a reduction in revenues of about half of the $248,000, or approximately $124,000. Councilmember Campbell added that this does not include the increase in revenues due to new construction, which should offset any increases to give the residents in Lake Havasu City a slight reduction. She said the citizens of Lake Havasu City are suffering, the city’s revenues are higher, and city staff received a Cost of Living Adjustment (COLA), and thinks giving a reduction almost equal to the tax levy increase from new construction is a positive thing for the community. Vice Mayor Dolan said the city has a budget process that starts at the beginning of the year; therefore, if this is something that the council wants to look at for the next budget year he thinks they should give staff time to crunch those numbers versus guessing what those numbers are going to be because the council is going to have to go back to the budget and cut $100,000 to $200,000. He said the city is saving the taxpayers approximately $149 with the expiration of the Irrigation and Drainage District (IDD) property tax, and while he does not mind having this discussion, he believes the council should have the exact numbers and it is irresponsible for them to make changes to the rate without knowing the exact impact on the budget. Lake Havasu City Page 5 Printed on 7/28/2022 City Council Minutes - Final July 12, 2022 Mayor Sheehy asked if a reduction would require a new Truth in Taxation Hearing or if the city would be out of compliance with State Statutes due to calendar dates that must be met, to which Ms. Olsen said she did not believe the city would have to start the process over, but said staff would have to come back with the proposed reductions in the budget to know the actual impact. Councilmember Lane said he would like to make a public apology to Ms. Olsen who was attacked personally by the political rhetoric from Havasu Orchids & Onions. He spoke on the property taxes collected by the city that go into the General Fund to support law enforcement, first responders, fire department, and parks. Councilmember Lane asked how much the city collects in property taxes, to which Mr. Knudson said the total tax levy is a little less than $6 million. Councilmember Lane said property taxes are important for the city and helps pay for the services mentioned above. He said the proposed rate is an increase of $12.85 for the year in property taxes which no one wants to pay an increase, but people also do not want to pay taxes at all; however, the citizens will also not have the IDD tax on their property tax bill, which is a $145 savings. He said he believes that keeping the tax rate at $0.6718 for every $100 to help fund police, fire, and parks should be kept the same. Councilmember Lin said she believes the citizens are asking for empathy from the council on all the other property taxes being assessed due to the increase in assessed valuation. She stated that the council is empathetic on what that looks like and understands that citizens’ property tax bills are increasing but it is not because of what the city is imposing. She said she could support reducing the rate to $0.65. Mayor Sheehy clarified that the rate is staying the same as proposed in the adopted budget at $0.6718 per $100. He said if the council were not to take into consideration the increase in valuation that the county assessed to properties, then the rate would have been $64.33 per $100 so that is a difference of $2.85 per $100,000. Mayor Sheehy opened the public hearing. Ms. Meister addressed the council and said the Governor just gave cities control over vacation rentals again and suggested the city add an emergency service tax to hotels and vacation rentals, like they do in other vacation towns such as Las Vegas and Miami, and lower the property tax to $0.65 for the citizens. Mayor Sheehy clarified that the legislature and Governor gave cities the ability to regulate short term rentals, but it does not go into effect for 90-days from the close of the session which is not until October. Ms. Meister asked if the council could reduce the property rates now and then discuss adding an emergency service tax in 90-days. Lake Havasu City Page 6 Printed on 7/28/2022 City Council Minutes - Final July 12, 2022 Mr. Edward Boyd, citizen, addressed the council requesting clarification on whether the property tax rate is $0.6718 per $100,000 or $100. Ms. Olsen explained that $100,000 was used as an example that was put in the explanation of the notice related to the property tax levy so people would have an idea that for every $100,000 in assessed valuation the rate would change by $2.85. Mr. Knudson said it is $0.6718 per $100 or $67.00 per $100,000. Ms. Toy addressed the council and said she appreciates Councilmember Campbell’s suggestion to lower the tax rate for the citizens of Lake Havasu City and questioned how two cents equates to a reduction of $100,000. Mr. John Sproule, citizen, addressed the council and said the city has not addressed the total tax evaluation for the entire city this year for resale and new builds. Mayor Sheehy said the primary assessed value increased $69 million in the community from last fiscal year; however, the tax levy shows the increase in revenues which is approximately $300,000. Mr. Sproule asked if the proposed tax levy rate was factored into the budget, to which Mayor Sheehy replied yes. There being no further comments, Mayor Sheehy closed the public hearing. Councilmember Moses said he sees the city as a net-zero business where the city takes in enough money to provide the services it should. He said the city needs to make sure it can keep the lights on and accomplish all the goals. He said with so much uncertainty, he does not think the city council in good faith can lower the rates right now without knowing the costs. He said with so many variables, to change the formula now would not be fiscally responsible for the city to ensure proper services to the community. He stated that he needs more data and more time to see where things fall and suggested the council look at this further and determine how much the city needs next budget year. Councilmember Coke stated that she does not think this is the appropriate time for the council to make changes but agrees with the city council looking into and discussing it further; however, it needs to start in the budget process when the council is having the conversations and directing the staff on what monies to spend and cut. She said the thought and concern is there and thinks the council should have it on their radar for next budget year to be able to make some positive changes for the community at that time. Councilmember Lin asked if a reduction in the property tax rate would equate to a difference of $100,000 that would that come out of fire and police services, to which Mr. Knudson said in terms of what that looks like he would have to sit down with the Lake Havasu City Page 7 Printed on 7/28/2022 City Council Minutes - Final July 12, 2022 department heads that are part of the general fund to determine what funds to cut. Vice Mayor Dolan stated that there is a difference between democracy and republic and he is elected by the people to make the decisions. He said there is a budget process for a reason and thinks it would be very fiscally irresponsible to cut a number from the budget when the city has no idea where it is coming from. He said he does not mind having the discussion but thinks it should be done at the right time and encouraged citizens to attend the budget meetings. Councilmember Campbell asked why the city does a Truth and Taxation and public notice so late and asked why it is not done earlier in the budget process. She said she is just trying to do what the constituents are asking for, which is a little help. She said to say it is fiscally irresponsible to make changes late in the process, then what is the point of doing a public notice so late? Mayor Sheehy stated that it is required by State Statute and explained the budget and public hearing process. He said he does not disagree that the council should look at this going forward for next year’s budget year. He said the city has left the rate the same for five years, and prior to that the rate fluctuated based on priorities. Mayor Sheehy said he has not heard from anyone about lowering the rate prior to this meeting but what he has heard is how citizens really enjoy the parks and emergency services. He said he is empathetic to it and will have those conversations during the next budget process on what that looks like based on priorities that citizens set for the city council. Councilmember Lane moved to adopt Resolution No. 22-3596 adopting the Lake Havasu City property tax levy rate of $0.6718 per $100 assessed value for Fiscal Year 2022-23, seconded by Vice Mayor Dolan, and carried by the following vote: Aye: 5 - Mayor Sheehy, Councilmember Lane, Councilmember Moses, Councilmember Coke and Vice Mayor Dolan Nay: 2 - Councilmember Campbell and Councilmember Lin 8.3 ID 22-3393 Adopt Resolution No. 22-3597 Adopting the Property Tax Levy and Certifying the Annual Financial Requirements of Lake Havasu City Improvement District No. 2 (London Bridge Plaza) for Fiscal Year 2022-23 (Jill Olsen) Ms. Olsen advised that this property tax levy is the assessment that provides for the maintenance and operation of the London Bridge Plaza, which includes the parking lot, electrical service, water service, and landscaping. She said the city levies the rate at $0.7370 per $100, which remains the same as last fiscal year; however, due to increased valuation in that area, the total assessment is $16,110 which is an increase of approximately $600 from last fiscal year. Lake Havasu City Page 8 Printed on 7/28/2022 City Council Minutes - Final July 12, 2022 Councilmember Campbell asked where this money is spent, to which Mr. Knudson said all the items that those funds are used on are identified in the original resolution adopted by the council for the creation of this district, which includes the parking lot, restrooms, and landscaping. Mayor Sheehy added that this special taxing district was put in mind with the ability to have the swap meet events at London Bridge Plaza. Councilmember Moses asked if the city provides the funding to the association, to which Ms. Olsen said the city pays the bills directly. Councilmember Moses asked if the association maintains the parking lot, to which Ms. Olsen said they oversee the management and notify the city of any issues that need to be addressed. Councilmember Moses said from his business standpoint, he does not see the value from this and would be willing to look at the property tax formula moving forward to determine where the money goes and who is responsible for the maintenance and operation. Mayor Sheehy added that these funds are identified and expensed out in the budget which is available to the public and on the City’s website. Mayor Sheehy opened the public hearing. Mr. Wisdom addressed the council and asked if the Christmas lights are included in this property tax, to which Mayor Sheehy replied no. He said the Christmas lights on McCulloch Boulevard are paid for by the city. Ms. Lyons addressed the council and questioned where the money was spent last year as there was no repaving and very little landscape, to which Mayor Sheehy said the $16,000 collected was spent on monthly landscaping (contracted service) and bathrooms. Ms. Olsen said the city pays for water, sewer, and electrical bills in the area in addition to the landscaping. Ms. Toy addressed the council and questioned why the city has multiple taxing districts, to which Mayor Sheehy explained that these property taxes were self-imposed by the property owners in this area for improvements. There being no further comments, Mayor Sheehy closed the public hearing. Vice Mayor Dolan moved to adopt Resolution No. 22-3597 adopting the Lake Havasu City Improvement District No. 2 (London Bridge Plaza) property tax levy rate at $0.7370 per $100 assessed value for Fiscal Year 2022-23, seconded by Councilmember Moses, and carried by the following vote: Lake Havasu City Page 9 Printed on 7/28/2022 City Council Minutes - Final July 12, 2022 Aye: 7 - Mayor Sheehy, Councilmember Campbell, Councilmember Lane, Councilmember Lin, Councilmember Moses, Councilmember Coke and Vice Mayor Dolan 8.4 ID 22-3394 Adopt Resolution No. 22-3598 Adopting the Property Tax Levy and Certifying the Annual Financial Requirements of Lake Havasu City Improvement District No. 4 (McCulloch Median) for Fiscal Year 2022-23 (Jill Olsen) Ms. Olsen advised that this property tax levy is the assessment for the McCulloch Median, which includes the maintenance and landscaping of the median along McCulloch Boulevard (from Smoketree Avenue to Lake Havasu Avenue) and Wheeler Park. She added that the assessment pays for the electricity, water service, and landscaping associated with maintaining this area. She said the funds are kept and tracked separately, and reviewed the tax levy rate as follows: Improvement District No. 4 - McCulloch Median • Tax Levy o $62,687 (Adopted FY 21-22) o $63,381 (Proposed FY 22-23) • Rate Per $100 o $0.5040 (Adopted FY 21-22) o $0.5040 (Proposed FY 22-23) Councilmember Campbell said she noticed some of the trees in the McCulloch Median are dead or need to be cut, and said she hopes the city can increase the staff’s ability to make it look better for $63,000 and possibly consider moving forward with finishing the McCulloch arch with these funds. She asked if the arch is part of the McCulloch Median beautification, to which Mayor Sheehy said the arch was never part of the city, and the footings that were poured were done by a private association. Councilmember Moses said as mentioned previously he would like to look at the property tax formula moving forward to determine where the money goes and who is responsible for the maintenance and operation. There was discussion regarding the process and percentage of property owners required to form a new district. Councilmember Lane said the council has been discussing the budget for close to ten months and what the tax rates were going to be. He said the adoption of the property tax rates is the last step and suggested that the council bring it up at the beginning of the budget discussions next year, not at the end of the budget. Lake Havasu City Page 10 Printed on 7/28/2022 City Council Minutes - Final July 12, 2022 Councilmember Campbell said she is a new councilmember and this information is just getting out to the citizens who have been talking to her. She said the council has all been warned that this is where we will be going next year for further conversations. She said she does not want to hold up this process but does not want to vote without answering some questions from the constituents. Vice Mayor Dolan said he fields a lot of these questions as well but was voted to represent them to come to the meetings to listen and learn so he can explain to constituents what he knows and if he cannot answer the questions, he goes to staff to get answers and follow up with them. He said sometimes it is not the councils’ job to be the voice of democracy where every little thing is brought back to council. Mayor Sheehy opened the public hearing. Ms. Toy addressed the council and said a few years ago she requested the fees be lowered at the Aquatic Center and was told to request it earlier in the budget process. She said she has requested it over the past few years, but nothing has been reduced. She said she thinks it is not too late for the council to make changes. Ms. Lyons addressed the council and said the council gets these questions within the last few weeks and there is no way that they can teach or talk to people with the information that they have about past incidents. She said it is important for the council to look at what is happening here and now because so much has changed within the last six months when the budget process started, and said it is unfair to not understand what people are asking here and now. There being no further comments, Mayor Sheehy closed the public hearing. Councilmember Coke moved to adopt Resolution No. 22-3598 adopting the Lake Havasu City Improvement District No. 4 (McCulloch Median) property tax levy rate at $0.5040 per $100 assessed value for Fiscal Year 2022-23, 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 8.5 ID 22-3380 Approve a Five (5) Year Master Services and Purchasing Agreement with Axon Enterprise, Inc., for Digital Evidence Management / Storage, Flex 2 Camera Equipment, TASER 7 Conducted Energy Weapons, and Fleet 3 In-Car Camera System (Chief Doyle) Lake Havasu City Page 11 Printed on 7/28/2022 City Council Minutes - Final July 12, 2022 Police Captain Troy Stirling advised that this item is to approve a five-year Master Services and Purchasing Agreement with Axon Enterprise, Inc., for a digital evidence platform for management/storage, Flex 2 camera equipment, TASER 7 conducted energy weapons, and Fleet 3 in-car camera system utilizing the Sourcewell Cooperative Purchasing Contract. Captain Stirling said the current contract with Taser International, Inc., currently Axon Enterprises, Inc., which expires in August 2022, covers their body worn cameras and TASER devices in addition to the technology required for managing the information collected. He said the proposed five-year contract includes a total of all body worn camera equipment and upgrade to TASER 7 devices. He added that the contract also includes the new Fleet 3 in-car system that will place cameras in patrol vehicles utilizing funding received from Proposition 207 (marijuana tax). Councilmember Lin asked how much funding the city receives from Proposition 207, to which Mr. Knudson said he did not have the exact numbers, but would get that information to the council. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Vice Mayor Dolan moved to approve a five (5) year Master Services and Purchasing Agreement with Axon Enterprise, Inc., for Digital Evidence Management / Storage, Flex 2 Camera Equipment, TASER 7 Conducted Energy Weapons, and Fleet 3 In-Car Camera System utilizing Sourcewell Cooperative Purchase Contract #010720-AXN for a 60-month payment summary total amount with tax of $1,137,399.31, 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 8.6 ID 22-3365 Approve a Sole Source Purchase of a Full Train Membrane Replacement and On-Site 6 Cassette Refurbishment for North Regional Wastewater Treatment Plant from SUEZ Water Technologies & Solutions (Thilak Fernando) Wastewater Superintendent Thilak Fernando advised that this item is requesting approval of a sole source purchase of a full train membrane replacement for the North Regional Wastewater Treatment Plant to SUEZ Water Technologies & Solutions. Mr. Fernando said there are three trains in the membrane basin at the North Regional Wastewater Treatment Plant which have a life expectancy of approximately seven to ten years. He said the city replaced train 3 in December 2020, train 2 in March 2022, and this is the final component of the set. Mayor Sheehy opened the public hearing. There being no comments, he closed the public Lake Havasu City Page 12 Printed on 7/28/2022 City Council Minutes - Final July 12, 2022 hearing. Vice Mayor Dolan moved to approve the Sole Source Purchase of a Full Train Membrane Replacement and On-Site 6 Cassette Refurbishment for North Regional Wastewater Treatment Plant from SUEZ Water Technologies & Solutions in the amount of $496,008, and to authorize the City Manager to execute the Suez Membrane Replacement Proposal, 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 8.7 ID 22-3376 Approve Amendment No. 2 to the Professional Services Agreement with DFDG Architecture for the Design of the 2nd Floor Buildout of the New Municipal Courthouse (Kathy Raasch) Project Manager Kathy Raasch advised this item is to approve Amendment No. 1 to the Professional Services Agreement with DFDG Architecture (DFDG) for the design of the second-floor buildout of the new municipal courthouse. Ms. Raasch explained that on May 27, 2021, DFDG was awarded a professional services agreement to design the new courthouse, first floor and second floor shell. To date, staff has received the 65 percent design and the next steps would be to complete the 100 percent plans and construction documents. She said staff and the project consultants came before the council on June 28, 2022, to present the 65 percent design layout and staff was given direction to come back tonight with a proposal to design the buildout of the second floor with a complete city council chambers. Ms. Raasch said a conceptual layout of the second-floor space was drafted by DFDG, which was also presented at the June 28, 2022, meeting, and consists of approximately 3,460 square feet, including a 2,600 square foot council chambers with 128 seats, two unisex restrooms, meeting space, storage room, audio visual room, and elevator. Ms. Raasch said if awarded tonight, the second-floor design would be incorporated into the 100 percent design plans and specifications for the entire renovation. She reviewed the costs and updated schedule to complete the design of the second floor as follows: • Design of second floor (DFDG): $69,570 • Pre-construction contract (CMAR) during second floor design: $4,420 • Construction of second floor: $994,251 • 100% Design: July 12 through end of August • Guaranteed Maximum Price (GMP) for construction: September • Construction Phase: October 2022 through October 2023 Lake Havasu City Page 13 Printed on 7/28/2022 City Council Minutes - Final July 12, 2022 • Furniture, Fixtures & Equipment (FF&E)/Information Technology (IT): Fall of 2023 • Building Opening: First Quarter of 2024 Councilmember Lin said the council has not received any estimated costs to furnish and maintain the second floor, to which Mayor Sheehy said at the June 28, 2022, meeting the council gave direction to staff to move forward with this process based on the design elements that were given. He said the action before the council tonight is to approve the design of the second floor which allows the CMAR contract to come back to council with a cost not-to-exceed for discussion and direction. He added that, in his opinion, if the city does not do the second floor now the cost will be greater for the citizens in the future. He said the costs to furnish the entire building are not included in the design aspect. Councilmember Lin said to be clear the council already approved $500,000 for the original plans and now the council is going to spend an additional $70,000, to which Mayor Sheehy said yes, to complete the second floor. Councilmember Lin asked if the original $500,000 was only for the bottom floor. Mayor Sheehy said the design includes space planning, planning, and construction documents. Mr. Knudson said the last direction from the council prior to the contract with FCI for the CMAR was to spend $4.7 million with a completed second courtroom, HVAC system, and the second floor shelled-out, which is the direction staff took and presented to council at the June 28, 2022, meeting. He added that if the council wants to consider a council chambers on the second floor then the timing of that would take place now to incorporate it in the 100 percent design documents. Vice Mayor Dolan said the second-floor council chambers is a want versus a need. He said he feels it is important to utilize the existing space, which is why he was adamant that the council include the second-floor shell in the $5 million. He added that $70,000 is a lot of money to spend but doing this now will ensure that the city has the plans for the second floor (electrical, water, plumbing) without having to do anything to the lower-level courtroom. He said he supports moving forward with the design of the second floor. Councilmember Campbell said she does not support moving forward with the second floor with council chambers due to safety, parking, street, and elevator concerns. She spoke on the total design and construction costs. She said she thinks the second floor is a want versus a need, and that the project is overbudget. Mayor Sheehy clarified that $70,000 is for the design of the second floor and $1 million would include full buildout of the second floor not just the shell. There was discussion regarding the parking concerns. Lake Havasu City Page 14 Printed on 7/28/2022 City Council Minutes - Final July 12, 2022 Councilmember Lane spoke on the history of this project, deconsolidation of the courts, and needs and requirements of the municipal court. Mayor Sheehy explained that the CMAR contract will be brought to council in September with a cost not-to-exceed that the council can discuss and direct staff whether to proceed with the second floor and ground floor with a cost not-to-exceed for each of those different elements. He said if there is savings, due to changes in the market conditions, the city will receive those savings, and if the prices increase, the city will not pay more. Mayor Sheehy opened the public hearing. Ms. Lyons addressed the council and said two members of the city council and the City Magistrate were told to go to the courts and ask for a deconsolidation. She said she was unable to find an agenda item that went before the city council directing the city to do that without the input from the city council or citizens. She said a negotiation happened on April 26, 2019, and it was presented to the courts that the city wanted to deconsolidate which they agreed to. She said the city was not kicked out of the building. She spoke on the discussion that took place at the May 19th Board of Supervisors workshop regarding the deconsolidation and negotiations of splitting the courts. She stated that she has asked for information through FOIA requests and has not received the information. Vice Mayor Dolan stated that there is a difference between deconsolidation and the city being asked to move out of the courthouse because they are not going to rent space to the city anymore. Mr. Knudson said the records as requested were provided to Ms. Lyons. He added that there was also a tremendous amount of conversations that occurred through contract negotiations at that time. City Magistrate Mitch Kalauli spoke on the laws and requirements of running a municipal court. Councilmember Campbell asked if the municipal court has been able to condense the number of files, to which Judge Kalauli replied that they were able to get rid of approximately 30,000 files. There was discussion regarding virtual hearings and online court payments. Councilmember Campbell asked if the deconsolidation of the courts was discussed and voted on by the city council, to which Mr. Knudson said the deconsolidation was identified through the annual intergovemental agreement with the County which was Lake Havasu City Page 15 Printed on 7/28/2022 City Council Minutes - Final July 12, 2022 approved by the Board of Supervisors and then brought before the city council for approval. Ms. Toy addressed the council asking why the city has to pay an additional $70,000 for the design of the second floor when the council has already approved a design contract for $500,000, to which Ms. Raasch replied that the original contract was to create an upstairs shell and the walls, additional electrical, plumbing, mill work, and doors are all included in the additional $70,000 design. She explained the difference between the conceptual drawings and design/construction plans. There being no further comments, Mayor Sheehy closed the public hearing. Councilmember Lane moved to approve Amendment No. 2 to the Professional Services Agreement with DFDG Architecture for the design of the 2nd floor buildout of the New Municipal Courthouse in the amount of $69,570, seconded by Vice Mayor Dolan, and carried by the following vote: Aye: 5 - Mayor Sheehy, Councilmember Lane, Councilmember Moses, Councilmember Coke and Vice Mayor Dolan Nay: 2 - Councilmember Campbell and Councilmember Lin 8.8 ID 22-3364 Award Bid for the Aquatic Center HVAC Project to Comfort Systems USA SW (Kathy Raasch) Ms. Raasch advised that this item is to award a bid for the Aquatic Center HVAC Project. She said in 2016, Henderson Engineers evaluated the Aquatic Center’s existing heating and ventilation system and made recommendations for improvements to the existing system to install a new cooling and dehumidification system. She said the existing system only has the ability to ventilate and heat the space and was configured in a way that cooling cannot be incorporated in the existing system; however, the existing ductwork will be utilized in the proposed project. Ms. Raasch reviewed the project description as follows: • Pool Area Air Conditioning & Dehumidification System • Upper Deck Party Area • Locker Room Heating and Cooling Units • Locker Room Ductwork Replacement • Lobby and office Heating and Cooling Units • Chemical Storage Room Improvements She said two bids were received with the apparent low bidder being Comfort Systems USA SW in the amount of $3,098,353, with a project completion date in August 2023. Lake Havasu City Page 16 Printed on 7/28/2022 City Council Minutes - Final July 12, 2022 Vice Mayor Dolan asked about the age of the building and humidity issues with the current system, to which it was answered that the building was constructed in 1994. Ms. Raasch said the pool area has never had air conditioning as the existing system is ventilating the area with a fan unit and has a heating system for the winter months. Councilmember Lin said the Parks and Recreation Advisory Board (“Board”) has been adamant about maintaining the existing equipment. She said while the Aquatic Center is not a place where the city is making money, it provides services for the community, and while she does not like the price, she supports this project. Councilmember Lin said this project uses American Rescue Plan Act (ARPA) funds and was concerned with the process of using ARPA funding without discussion from the council first on the distribution of those funds. Mr. Knudson said the city had discussions a few months ago regarding the creation of the Community Resource Coalition and identified $1 million for that effort as well as funding for parks, public safety, and streets. He said the council should never assume that they are forced to make some sort of vote or otherwise and have the freedom to make a motion to support, not support, or support using specific funds. He said the recommendation from staff is the use of ARPA funds for the remaining balance ($298,000) for this project. Vice Mayor Dolan agreed that the council did not want the ARPA funds to be placed into the budget without any control or say on where it goes. There was discussion on the humidity in the building causing problems and additional maintenance costs over the years. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Vice Mayor Dolan moved to award the Base Bid plus Force Account for the Aquatic Center HVAC Project to Comfort Systems USA SW in the amount of $3,098,353 with funding from the Capital Improvement Plan and American Rescue Plan Act funds, 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 8.9 ID 22-3383 Award Bid for the Chip Drive Lift Station Rehabilitation Project to Schofield Civil Construction, LLC (Jason Hart) Project Manager Jason Hart advised that this item is to award bid for the Chip Drive Lift Station Rehabilitation Project and outlined the following in his presentation: Lake Havasu City Page 17 Printed on 7/28/2022 City Council Minutes - Final July 12, 2022 • Lift Station was originally constructed in 1996 • Lift Station’s various pieces of equipment need upgrade • Project Schedule – 240 Calendar Days (8 months) • Anticipated Completion – March 2023 o Materials NTP August 2022, then 4 months to get material (projected) • Engineer’s Estimate = $778,300 • Low Bid = $1,015,500 (Schofield Civil Construction, LLC) • Replacing valves, header piping and full electrical system rehabilitation including three pump panels, main service upgrade, lighting, etc. Mayor Sheehy asked about the difference in the engineer’s estimate and low bid, and asked how the engineer’s estimates are calculated, to which Mr. Hart said NCS, Inc., was the city’s engineering consultant and has done several projects involving lift stations. He said the market today is such that it is hard to gauge what kind of bids will be received and the city is seeing bids come in as high as 23 percent over the engineer’s estimate. He said bid item numbers two and six were both areas where staff noticed an increase in costs over the engineer’s estimate. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Vice Mayor Dolan moved to award bid for the Chip Drive Lift Station Rehabilitation Project to Schofield Civil Construction, LLC, in the amount of $1,015,500, 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 8.10 ID 22-3382 Award Agreement for Professional Services for the Design of the Park Avenue Lift Station Renovation Project to Narasimhan Consulting Services, Inc. (NCS) ( Dan Sloan) Assistant City Engineer Dan Sloan advised that this item is to award the design contract for the Park Avenue Lift Station Renovation Project and outlined the following in his presentation: Background: • Park Avenue Wastewater Lift Station was originally constructed in 1995, and has mainly served only the Aquatics Center • Due to the age of the existing equipment, and new development in the area, the lift station requires upgrades and equipment replacement Lake Havasu City Page 18 Printed on 7/28/2022 City Council Minutes - Final July 12, 2022 Schedule • Design: 6 to 7 months • Bidding: May 2023 • Construction: Starting in August 2023 Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Lane moved to award Agreement for Professional Services for the design of the Park Avenue Lift Station Renovation project to Narasimhan Consulting Services, Inc. (NCS), in the amount of $155,720, 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 8.11 ID 22-3372 Award Agreement for Professional Services (Design) for the Havasupai #6 Wash Stabilization Improvements Project to Kimley-Horn & Associates, Inc. (Mike Wolfe) Project Manager Mike Wolfe addressed the council and advised that this item is to award an agreement for professional services (design) for the Havasupai Wash #6 Wash Stabilization Improvements Project and outlined the following in his presentation: Background • Based on the Wash Stabilization Study in 2015 the Havasupai Wash Reach 6 was prioritized as number 6 of the top ten washes. This Wash section 6 having a high priority with significant erosion and scour • The purpose of the Project downstream of the Sandwood Drive at-grade crossing is to: o Construct a more stable channel profile with drop and energy dissipation structures to reduce scour and erosion within the first half and bank protection for the downstream half o Provide grade control and maintenance accessibility o Reduce risk for adjacent property damage Condition Assessment • Significant Scour and Slot Cut occurring • Wash Bank Erosion along meandering segments • Sediment Transport into Avalon Drain 2 at the confluence Project Site Photos • Scour Occurring in Wash, need to account for secondary side Lake Havasu City Page 19 Printed on 7/28/2022 City Council Minutes - Final July 12, 2022 channel confluence • Grade Control for sediment transport into Avalon Wash Permits & Environmental Studies Required • US Army Corps of Engineers (ACOE) o Section 404 Individual Permit • Biological Review o Per Endangered Species Act • Cultural Resource Compliance o Cultural resources survey • ADEQ o 401 Certification – for in Wash Construction Timeline • Design and Construction Document Preparation o Research, Survey, & Geotech – August 2022 – November 2022 o 30% & 60% PS & E – December 2022 – March 2023 o 100% Bid Documents – March 2023 – May 2023 o Construction – July 2023 Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Mayor Sheehy said this item and the next two companion items are for the improvement of the washes utilizing flood control dollars. Vice Mayor Dolan moved to award the Agreement for Professional Services for the Havasupai #6 Wash Stabilization Improvements Project to Kimley-Horn & Associates, Inc., in the amount of $161,876, 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 8.12 ID 22-3373 Award Agreement for Professional Services (Design) for the Wash Crossing Improvements Project Phase I to Holistic Engineering and Land Management (Mike Wolfe) Mr. Wolfe advised that this item is to award an agreement for professional services (design) to Holistic Engineering and Land Management for the Wash Crossing Improvements Project, Phase I, and outlined the following in his presentation: Background Lake Havasu City Page 20 Printed on 7/28/2022 City Council Minutes - Final July 12, 2022 • This project was identified to improve wash crossing safety during storm events by elimination of the at-grade crossing of El Dorado Avenue North at the Iroquois Wash with a raised box culvert design like the Bahama Avenue crossing downstream • Upon further review of this wash crossing another benefit will be the improvement of sight distance for traffic exiting Dolphin Drive • The crossing will be designed for storm flows so as not to impede vehicular or pedestrian traffic during wet conditions Project Site Photos • Improved crossing conditions with proposed box culvert • Sight distance from Dolphin Drive looking across wash over blind spot in at grade crossing Permits & Environmental Studies Required • US Army Corps of Engineers (ACOE) o Section 404 Permitting Nationwide Permit 14 • Biological Review o Per Endangered Species Act • Cultural Resource Compliance o Per AZSITE Data Base • ADEQ o 401 Certification – for in Wash Construction Timeline • Design and Construction Document Preparation o Research, Survey, Geotech, & Alternatives – August - November 2022 o 30% & 60% PS & E – December 2022 – March 2023 o 100% Bid Documents – March – April 2023 o Construction - June 2023 Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Lane moved to award the Agreement for Professional Services for the Wash Crossing Improvements Project Phase I to Holistic Engineering and Land Management in the amount of $162,663, 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 Lake Havasu City Page 21 Printed on 7/28/2022 City Council Minutes - Final July 12, 2022 8.13 ID 22-3375 Award Agreement for Professional Services (Design) for the Daytona Wash Reach 4 Stabilization Project to Holistic Engineering and Land Management (Mike Wolfe) Mr. Wolfe advised that this item is to award an agreement for the design and improvements for the Daytona Wash Reach 4 Stabilization Project and outlined the following in his presentation: Background • Based on the Wash Stabilization Study in 2015 the Daytona Wash Reach 4 was prioritized as number 7 of the top ten washes having critical need for improvements • The purpose of the Project between Snead and Oak Drives is to: o Construct a more stabile channel profile o Reduce channel scour and erosion o Control lateral bank erosion o Reduce risk for adjacent property damage o Facilitate wash maintenance Condition Assessment • Two side channel confluences • Wash bank erosion • Channel scour • Sediment transport Project Site Photos • Green Wash confluence • Side bank and grade control Permits & Environmental Studies Required • US Army Corps of Engineers (ACOE) o Section 404 Permitting Nationwide Permit 14 • Biological Review o Per Endangered Species Act • Cultural Resource Compliance o Per AZSITE Data Base • ADEQ o 401 Certification – for in Wash Construction Timeline • Design and Construction Document Preparation o Research, Survey, Geotech, & Alternatives - August – Lake Havasu City Page 22 Printed on 7/28/2022 City Council Minutes - Final July 12, 2022 November 2022 o 30% & 60% PS & E - December 2022 – March 2023 o 100% Bid Documents - March – April 2023 o Construction – June 2023 Councilmember Moses asked if the city has addressed the higher ranked wash projects, to which Mr. Wolfe replied yes. Mr. Sloan added when they took this over the first five projects had been completed and they just completed the Havasupai and Avalon wash projects. Mayor Sheehy opened the public hearing. Ms. Toy addressed the council and asked if the engineering department handles the project design and construction preparation, to which Mayor Sheehy said the engineering department staff are the project managers on behalf of the city for these projects to manage the professional consultants that do this kind of work. There being no further comments, Mayor Sheehy closed the public hearing. Councilmember Campbell moved to award the Agreement for Professional Services for the Daytona Wash Reach 4 Stabilization Project to Holistic Engineering and Land Management in the amount of $245,163, 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 9. CURRENT EVENTS There were no council committee reports. 10. FUTURE MEETINGS Tuesday, July 26, 2022 @ 6:00 p.m. – Regular Meeting Tuesday, August 9, 2022 @ 6:00 p.m. – Regular Meeting Tuesday, August 23, 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 Moses and seconded, the meeting adjourned at 9:31 p.m. CERTIFICATION Lake Havasu City Page 23 Printed on 7/28/2022 City Council Minutes - Final July 12, 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 12th day of July, 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 24 Printed on 7/28/2022