City Council

Mayor Cal Sheehy Lake Havasu City Vice Mayor Jim Dolan Police Facility Councilmember Nancy 2360 McCulloch Blvd North Campbell Lake Havasu City, Arizona Councilmember Jeni Coke 86403 Councilmember David Lane www.lhcaz.gov Councilmember Michele Lin Councilmember Cameron Moses City Council Regular Meeting Minutes - Final Tuesday, September 13, 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: Elks Lodge #2399 Members from Elks Lodge #2399 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 The following individuals spoke in opposition to the AZ Pride Tour event being held in Lake Havasu City on February 4, 2023: • Ms. Karen Vanderjagt, citizen • Ms. Cindy Johnson, citizen • Pastor Dale Ray, Lakeview Community Church The following individuals spoke in support of Constitution Week being held September 17-23, 2022, and encouraged citizens to attend: • Mr. Don Wisdom, citizen • Mr. Tom Goodfellow, citizen • Mr. Robert Fischer, citizen • Mr. Greg Logan, citizen • Ms. Diane Klostermeier, citizen Ms. Peggy Polluck, citizen, addressed the council and suggested that the city hold a Lake Havasu City Page 1 Printed on 9/29/2022 City Council Minutes - Final September 13, 2022 community Hav-A-Pride celebration for families and children with parades and games as a way to show pride for Lake Havasu City instead of the AZ Pride Tour event. Ms. Frankie Lyons, citizen, addressed the council and said last November she presented an opportunity to the City Council to bring a free dental fair clinic to the community. She said she did not get any support from any of the councilmembers except Councilmember Lin and did not think it was fair for the community to miss out on this event. She said they are trying to bring it back in 2024 and is hoping for the City Council’s support. Ms. Bonnie Toy, citizen, addressed the council and requested that they lower the rates at the Aquatic Center during the summer months and lower the property tax rates next fiscal year. She also spoke concerning citizens and pets who were affected by the storm and power outages recently, and requested that the city provide more updates and information to the public on the Facebook page. Ms. Ginger Dodier, citizen, addressed the council and said the meeting video was not available to citizens online. Ms. Patricia Chenelski, citizen, addressed the council and said the organizer of the AZ Pride Tour event was unable to attend the meeting but requested that she read his comments into the record. Mayor Sheehy advised that a voice vote from the City Council is necessary due to technical difficulties with the electronic voting system. 6. CONSENT AGENDA 6.1 ID 22-3450 Approve the August 23, 2022, City Council Regular Meeting Minutes (Kelly Williams) 6.2 ID 22-3428 Adopt Resolution No. 22-3609 Approving FY 2022-2023 Policy and Procedure for the Purchase of Supplies, Materials and Equipment from Members of the Governing Body (Jill Olsen) 6.3 ID 22-3444 Adopt Resolution No. 22-3610 Approving and Authorizing the City Manager to Execute the Third Amendment to the Environmental Access Agreement with the Arizona Department of Environmental Quality to Add Additional Monitoring Wells and Soil Sample Sites (Kelly Garry) 6.4 ID 22-3456 Approving the 1990 Chevy Step Van (Fire Rehab Unit) as Surplus and Authorizing its Sale to Mohave Valley Fire District (Chief Pilafas) 6.5 ID 22-3449 Call for Executive Session Pursuant to A.R.S.§ 38-431.03(A) 5:00 p.m., Tuesday, September 27, 2022 (Kelly Williams) Lake Havasu City Page 2 Printed on 9/29/2022 City Council Minutes - Final September 13, 2022 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 22-3451 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 22-3455 Investment Report as of June 30, 2022 (Jill Olsen) Mayor Sheehy noted that this item was for informational purposes only. 7.3 ID 22-3453 Fiscal Year 2021-22 4th Quarter Contracted Agency Reports (Chief Doyle) Mayor Sheehy noted that this item was for informational purposes only. 7.4 ID 22-3448 City Manager’s Report (Jess Knudson) City Manager Jess Knudson reported on the following: • Announced various ceremonies, events, recognitions, and proclamations. • Lake Havasu City received a letter from the King by way of the British Consulate-General of Los Angeles thanking Lake Havasu City for the kind and thoughtful message on social media paying tribute to Queen Elizabeth II, offering condolences to the people of the United Kingdom and lighting of the London Bridge purple. • The London Bridge was also illuminated red, white, and blue in remembrance of 9/11. 8. PUBLIC HEARINGS 8.1 ID 22-3458 Approve the Cooperative Purchase Agreement of Police Department Duty Weapons from ProForce Law Enforcement (Chief Doyle) Police Captain Troy Stirling advised that this item is requesting approval of a cooperative purchase agreement utilizing the Arizona State Contract for the purchase of duty weapons from ProForce Law Enforcement (“ProForce”). Captain Stirling said the Police Department is currently utilizing the Sig Sauer P-320 and P-365 and is seeking to move to a newer version of this weapon platform which will be outfitted with the Red Dot Reflex Lake Havasu City Page 3 Printed on 9/29/2022 City Council Minutes - Final September 13, 2022 Optics instead of traditional iron sights. He explained that the Red Dot Reflex Optics emits a “red dot” that allows officers to have a more improved target focus in various lighting conditions, allows shooters to be target focused versus sight focused, and allows for more accurate shots and clear sense of the backdrop that is important for the officers to make good use of force decisions. He said agencies that have transitioned to red dot optics have witnessed an increase in overall shooter performance, increase in shooter confidence, and accuracy of rounds on target. Captain Stirling said in addition to providing the new weapons (total cost $78,352.61), ProForce will provide the city with a trade credit ($27,003.21) for the purchase of their current duty weapons, for a total net cost of $51,349.40. In addition, seized weapons were also sold at surplus auction in the amount of $82,003, which will go towards funding this purchase. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Lane moved to approve Cooperative Purchase Agreement with ProForce Law Enforcement utilizing Arizona State Contract CTR049168 for the purchase of duty weapons for the Lake Havasu City Police Department in the amount of $78,352.61 with an offsetting trade credit of $27,003.21, authorize the City Manager to execute the agreement, and authorize City staff to exercise the option to renew for two (2) additional one (1) year terms for defense and law enforcement services, material or equipment under contract, 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 8.2 ID 22-3452 Approve the Cooperative Purchase with Exerplay, Inc., for the Removal and Installation of the Soft Playground Surface at Ramada B in Rotary Community Park (Mike Keane) Parks and Recreation Director Mike Keane advised that this item is requesting approval of a cooperative purchase to remove and replace the soft playground surface at Ramada B in Rotary Community Park with Exerplay, Inc. Mr. Keane explained that the soft play surface was installed in 2011 and has reached its lifespan and is beyond repair. He added that the new material provides the same fall protection as the rubber chip material but also allows for wheelchair and stroller access. Mayor Sheehy opened the public hearing. Ms. Toy asked how long the new play surface is expected to last, to which Mr. Keane said the city expects a lifespan of 11 to 12 years and added that the product comes with a five-year warranty. Lake Havasu City Page 4 Printed on 9/29/2022 City Council Minutes - Final September 13, 2022 There being no further comments, Mayor Sheehy closed the public hearing. Mr. Knudson said the city is working to correct the technical difficulties with the live streaming and voting equipment. He said the council meeting video is available on Channel 4 and at www.lhcaz.gov/tv. Councilmember Moses moved to approve Cooperative Purchase Agreement with Exerplay, Inc., for the removal and installation of the soft playground surface at Ramada B in Rotary Community Park in the amount of $92,092.85, and authorize the City Manager to execute the Agreement, seconded by Vice Mayor Dolan, and carried by the following vote: Aye: 7 - Mayor Sheehy, Councilmember Campbell, Councilmember Lane, Councilmember Lin, Councilmember Moses, Councilmember Coke and Vice Mayor Dolan 8.3 ID 22-3454 Discussion and Presentation from Go Lake Havasu, the City’s Convention & Visitors Bureau, Regarding the Professional Services Agreement with Lake Havasu City (Jess Knudson) Mr. Knudson said this item was requested by council as a future agenda item to discuss the professional services agreement between Lake Havasu City and Go Lake Havasu (GLH). Mr. Knudson briefly summarized the terms of the agreement and GLH’s objectives, duties, obligations, and responsibilities. Mr. Terence Concannon, President and CEO of GLH, outlined the following in his presentation: City Contract Requirements • Promote Lake Havasu City & Serve as Primary Contact for Tourism & Promotion o Current Marketing Budget  $630,300 (53% of our annual budget) o Current Tourism Revenue  Bed Tax up 26% YOY and up 59% over 2017  R&B Tax up 20% YOY and up 32% over 2017 o Media Management  Hundreds of positive articles annually, including almost $14,000 in AVE for the London Bridge 50th Anniversary • Designate, Establish & Operate a Visitor Center o Around 100,000 Visitors Annually o Certified by IBCCES as an Autism Center o Authorized by AOT as an Official Arizona Visitor’s Center • Provide City Manager with Written Quarterly Report Lake Havasu City Page 5 Printed on 9/29/2022 City Council Minutes - Final September 13, 2022 o Approximately 110 pages including:  Board Agenda, Minutes & Financials  President’s Reports  Annual Budget & Grant Updates  Visitor’s Center Sales & Attendance  Marketing & Media Report  Community Programs Update  Event Funding & Maintenance • Collaborate With City Manager on Events, Promotions, etc. o Assistant to City Manager Anthony Kozlowski collaborates with us and advises on events and community programs o Overall, we work with the city on tons of events annually • Update and Maintain a User-Friendly Website o Go Lake Havasu.com: Users up 46% YOY, New Users up 44% YOY o Largest creator and aggregator of online content about LHC and Mohave County o GoHikeHavasu.com, HavasuSpringBreak.com, LondonBridgeTour.com o Lake Havasu Ales & Trails coming soon • Provide a Voting Board Seat for City Manager & Non-Voting Seat for a City Council Member o City Manager Knudson attends monthly as does Councilmember Dolan • Provide City Manager with Studies or Reports o No new reports or studies conducted this contract term • Seek Grant Funds o VAI Marketing Grant - $228,750 (Emerging Markets) o VAI Partnership Grant - $125,000 (Holidays in Havasu) o VAI Outdoor Recreation Grant – Proposal Submitted (Community Event Space) • Perform Projects Assigned by City Council o We are always happy to assist Council on any tourism-related project • Present to City Council Annually o Last update was March 6, 2022 • Fiscal Responsibility o While I have proposed deficit budgets that last two years, we have managed to make cuts to ensure a balanced budget • Insurance & Indemnification o We maintain a Public Liability Insurance with up to $1,000,000 in Lake Havasu City Page 6 Printed on 9/29/2022 City Council Minutes - Final September 13, 2022 liability as well as D&O Insurance o The City is indemnified from any issue arising from GLH actions • Open Meeting Requirements o All board meetings are open to the public • Discrimination o Go Lake Havasu believes in inclusive and promotes a community that is welcoming to all, regardless of Race, Age, Faith, Politics, Ethnicity, Gender, Sexual Orientation, Physical or Neurodiversity, Language or Culture. o Additionally, Go Lake Havasu is a Certified Autism Center and all of our employees are Certified Autism Professionals, trained to identify and assist those individuals on the autism spectrum in times of personal crisis. We Love our City, And it Shows • Governor’s Tourism Award Best Tourism Partnership • Go Lake Havasu & Lake Havasu City Governor’s Conference on Tourism - 2022 Councilmember Lin spoke concerning their financial statement from May 31, 2022, and asked why there is over $2 million sitting in assets when the city is paying $1.6 million to them annually, to which Mr. Concannon said they have had those reserves for quite some time and have not added any significant amount since the contract. He spoke on having some reserves in the event of an economic downturn and added that there are also funds in reserves that were earmarked for a downtown catalyst project with the city that did not come to fruition a couple of years ago. He invited the councilmembers to attend one of their board meetings to discuss ways GLH could capitalize on those reserves. Councilmember Moses said over the last few years the amount in reserves has increased from $1.6 to $2 million. He said he understands having savings and having reserves but was uncomfortable with how much money is sitting in reserves. Councilmember Moses added that he would support teaming up with GLH and putting those funds towards a project or something creative to push the city forward. Mr. Concannon said he has continued to build on a list that was started years ago of possible projects and ideas to make Lake Havasu City a better place for residents and tourists. Mayor Sheehy reminded the council that the existing contract put into place in 2021 also addressed some of these concerns that the council had at that time. Councilmember Lin asked where the $2 million in assets would go if the contract with GLH was terminated, to which Mr. Knudson replied that if terminated, any funds in their Lake Havasu City Page 7 Printed on 9/29/2022 City Council Minutes - Final September 13, 2022 account would be decided upon by their board. Vice Mayor Dolan said GLH was put together for a specific purpose; therefore, if the city were to no longer negotiate with them, they would cease to exist as they are a community marketing organization using community money. There was discussion regarding whether the assets would revert to the city. Councilmember Campbell said in speaking with the GLH board, it is her understanding the funding would revert to the city based on language in the GLH bylaws. Mr. Concannon stated that was correct, noting that if the city disengages or if the organization has no reason to exist, the monies that have been given to the organization by the city and physical assets would revert to the city. Councilmember Lin requested that the same language be added to their existing contract with GLH. Councilmember Campbell played a recording into the record. She said in the recording, Mr. Concannon states that it is not up to GLH to make moral decisions. She said maybe it is time for GLH to start making moral decisions for the sake of the city, and expressed citizens’ concerns with how the city’s tax dollars are spent, marketing to two of the highest crime states, encouraging large events, overtaxing city services from fire, police and parks, and leaving the citizens of Lake Havasu City to clean up the mess. She said the city needs to unite now more than ever and said speaking out on live radio about highly controversial topics and calling the citizens of Lake Havasu City bigots is not what the taxpayers pay for. She said the city needs a tourism that educates and promotes a healthy community where visitors are welcome to come without turning the city upside down. She said it is time to look at a new direction and asked if GLH would consider a new marketing strategy taking these items into consideration. She further added that the citizens of Lake Havasu City would like to hear from GLH in 30-days on proper protocol for adding events to their site. Mr. Concannon stated that GLH has event protocol that is listed explicitly on their website and reviewed the event protocol questions. There was discussion regarding the costs to provide city services related to tourism. Councilmember Lin said she is concerned that there is over $2 million in reserves that could go towards providing city services for tourism and events. Councilmember Lane spoke on the history of the contract with GLH and funding levels. He said there were concerns prior to the existing contract with the amount GLH had in reserves and that amount has continued to increase; therefore, that may be something that Lake Havasu City Page 8 Printed on 9/29/2022 City Council Minutes - Final September 13, 2022 the council needs to look at during the next contract negotiations. Councilmember Lane asked if GLH ever works with event promoters to try to make advertisements that are more open to the people, to which Mr. Concannon replied that GLH reserves the right to make suggestions and coach event promoters. Councilmember Lane reviewed Section 4(A)(1), GLH Duties, Obligations, and Responsibilities, of the contract which states that GLH agrees to “Promote Lake Havasu City – our community, our vision, our goals,” and asked if GLH could defer to this section of the contract when working with event promoters to ask for changes that do not align with the community, vision, and goals. Mr. Concannon stated that he would bring this concern to the board of directors. Discussion ensued related to the composition of the GLH board. Councilmember Moses suggested that the council liaison serve as a member on the GLH board. Mayor Sheehy opened the public hearing. Ms. Vanderjagt addressed the council and spoke concerning accountability of funds and aligning tourism advertising and marketing with other cities and towns with the same values as Lake Havasu City. She also spoke in opposition to the AZ Pride Tour event and requested that the City Council make it an adult only venue. Mr. Concannon addressed GLH’s marketing and advertising efforts to reach outlying areas based on seasonality of Lake Havasu City’s market. The following individuals spoke in opposition to the AZ Pride Tour event being held in Lake Havasu City on February 4, 2023: • Ms. Cindy Johnson, citizen • Mr. Fred Bennett, citizen • Pastor Dan Klobash, Havasu Alliance Church • Ms. Debra Feddock, citizen • Pastor Kay Zimmerman, citizen • Mr. Alfred De La Rosa, citizen • Ms. Margie Eckert-Doren, citizen Mr. Don Wisdom, citizen, addressed the council and suggested the city have brochures about Lake Havasu City at federal and state parks with a credit card that visitors can use at local merchants in Lake Havasu City. Ms. Jan Boyd, citizen, addressed the council and spoke concerning the AZ Pride Tour event. She said she see red flags when tourism money is directed towards failing states Lake Havasu City Page 9 Printed on 9/29/2022 City Council Minutes - Final September 13, 2022 with high crime rates and is concerned that GLH is taking Lake Havasu City in a morally defunct direction. She said she would like a new direction with complete transparency and a say in how taxpayer dollars are used for the betterment of Lake Havasu City, including parks maintenance, public safety, dredging the lake, and trash clean-up. She said if these things cannot be accomplished, she would like to see the funding returned or GLH’s budget lowered. Mr. Concannon noted that GLH also provides several programs and funds events in the community including First Fridays, the Farmers Market, and the Community Youth Market. He said they also worked closely with the Partnership for Economic Development (PED) during the pandemic to develop #OpenTogether Program which was a promotional program to let restaurants and guests understand what can be expected post-COVID. Mr. Goodfellow addressed the council and spoke on his recollection of events and correspondence with GLH regarding the upcoming Constitution Week event. Pastor Dale Ray addressed the council and requested that they clarify the language in the contract regarding the funds reverting to the city and how events are reviewed and added to the GLH calendar. He suggested that the GLH board include a member from council and suggested they create an ordinance that protects and prevents minors from certain events. Mr. Ted Boyd, citizen, addressed the council and spoke concerning the AZ Pride Tour event. He suggested the GLH board only budget what they get paid with a line item that states that any additional funds be returned to the city. Mr. Greg Logan, citizen, addressed the council and said events approved on city property should be added to the calendar and asked why GLH is advertising to sanctuary cities? Ms. Toy addressed the council regarding GLH’s advertising strategies and Facebook page. She suggested the council look at using GLH reserves when considering lowering the property tax rates next year. Mr. Morgan Braden, citizen, addressed the council and spoke concerning the AZ Pride Tour event. He said Boise, Idaho, had the same problem and their council stood up and said no children could attend. He said he thinks the city is overpaying GLH if they have $2 million in reserves and suggested the council cut GLH’s budget in half and give the other half to police, fire, and parks to maintain the problems that they are addressing with major weekends and events. Ms. Lyons addressed the council and asked if the city receives financial statements from Lake Havasu City Page 10 Printed on 9/29/2022 City Council Minutes - Final September 13, 2022 GLH, to which Mayor Sheehy stated that the council receives those statements quarterly from the City Manager. Ms. Lyons asked if the City Manager sits on the GLH board, to which Mr. Knudson replied yes. She asked if the City Manager’s involvement with the contract while sitting on the GLH board as a voting member was a conflict of interest, to which Mr. Knudson explained his role and involvement with the contract. Mayor Sheehy clarified that the contract was negotiated prior to the City Manger position being a voting member. Ms. Chenelski addressed the council and asked if representation from both political parties would be attending the Constitution Week event, to which Mayor Sheehy replied that it is being advertised as a non-partisan event. Ms. Chenelski spoke concerning the comments made by the audience tonight grouping the AZ Pride Tour event with pedophiles. Mr. David Diaz, citizen, addressed the council and asked if GLH has considered removing the language allowing children to attend this event from their website as the issue being addressed tonight is about exposing children to this type of event. Mr. Concannon said to answer Mr. Diaz’s question, he believes Councilmember Lin asked for that as well, and said someone would need to make that request formally before the GLH board of directors because it is his understanding that they have never taken an event off their website in the history of their organization; therefore, in care of any possible legal challenge, he would not remove it, but he would at the direction of the board. Mr. Knudson further clarified that his role on the GLH board is to represent the city’s interests. Mr. Robert Fischer, citizen, addressed the council and said he does not think Lake Havasu City has a problem attracting tourists as the London Bridge has been here for over 50 years. He spoke concerning the $2 million in assets and asked who could change the GLH bylaws, to which Mayor Sheehy said traditionally bylaws can be changed by the board of directors. Ms. Dodier addressed the council and spoke regarding the increase in tourism during the pandemic and questioned why GLH did not cut back their advertising budget during that time. She spoke on the AZ Pride Tour event and the pedophilia symbol on their website if using a mobile device. She questioned the legality of not removing the event from their website when they have a pedophilia symbol and read into the record a Facebook post from the AZ Pride Tour event organizer. Councilmember Campbell requested the City Council consider adding a line item in the Lake Havasu City Page 11 Printed on 9/29/2022 City Council Minutes - Final September 13, 2022 budget to show the revenues collected by the city from the restaurant and bar tax and bed tax, as well as the expenditures (including contracts and city services) related to tourism. Councilmember Lin asked if Mr. Concannon could remove the words “family-friendly” from their event page on the GLH website, to which Mr. Concannon said he would have to defer that to the board of directors. He said he would not want to put the organization or the city at legal risk and would respectfully ask that it go through the board of directors as they are the body that oversees their efforts. He said GLH is simply listing the event, not promoting the event, and has given no money to the event. Mr. Concannon stated that GLH could talk with the organizer of the event to see if there is a compromise. Councilmember Lin asked how long the event has been listed on the GLH calendar, to which Mr. Concannon said since February. Councilmember Lin expressed concern that GLH has been receiving requests from the citizens to remove the words “family-friendly,” but has waited until now to have discussions with the event promoter. Councilmember Campbell said from her understanding the contract states that the director can make the direction on whether to remove the language, and although she cannot speak for the City Council, she would be willing to take that risk. Mr. Sam Scarmardo, citizen, addressed the council and asked if the city is going to allow Mr. Concannon, whose position is paid for by the city, to insult the citizens of Lake Havasu City by calling the citizens bigots. He said he is irritated that Mr. Concannon makes the policy for one issue, for example Constitution Week, and does not make it for the AZ Pride Tour event. He said the AZ Pride Tour event is recruiting children to that lifestyle. There being no further comments, Mayor Sheehy closed the public hearing. Vice Mayor Dolan said there is history in the room, and no one wants to say it, but no one wants to be called a bigot and while he is not defending what Mr. Concannon said the truth is a year ago there were people in the room and it had nothing to do with children, it was about gays and people not wanting that in their neighborhood. He said citizens can go back and watch the video from the patriot group and that is what it was about. Vice Mayor Dolan said he is very concerned about the children and will be talking with the Police Department and bringing his concerns to the board of directors, but there are people in the room right now that are bigots. He reiterated that he will be bringing his concerns to the board and spoke on his role as the liaison, but said his job is to abide by the constitution and follow the laws. Councilmember Lin said the purpose of requesting this item was not to be discussing the AZ Pride Tour event; however, she is glad that people were able to speak and provide Lake Havasu City Page 12 Printed on 9/29/2022 City Council Minutes - Final September 13, 2022 their thoughts and opinions. She said the purpose of this item was to discuss the professional services agreement with GLH. Councilmember Lin asked if GLH could provide the City Council with a copy of their current year’s budget as well as a copy of their goals. There was consensus from the City Council to direct the City Manager and City Attorney to come back with an amendment to the contract to include that any monies that have been given to the organization by the city and physical assets would revert to the city. Councilmember Coke said she previously worked for the CVB for one year and the Lake Havasu Chamber of Commerce for 14 years and is well-versed on how GLH operates and their budget, and said she does not have any questions regarding the contract. Mayor Sheehy spoke on the history of the bed tax (3%) and food and beverage tax (1%) that was created to go into a tourism and economic development fund, with 25% of the funds going to the PED and 75% going towards tourism development by way of GLH, and the funding level changes that the City Council made in the existing contracts for the services that they provide to the city. He spoke on the disservice to the community if they did not have tourism promotion and said the dollar amount may be something that the City Council needs to monitor and manage. He noted that the city has another year and half under the current contract but can do an amendment moving forward to solidify contractually the obligation if something were to happen to GLH where those monies and the assets would go. Councilmember Campbell said she believes this item has been discussed at length due to Mr. Concannon’s statements on the radio and asked if there is a code of conduct in the contract as she would like to see the level of professionalism from GLH elevated. Mayor Sheehy stated that the existing contract does not have a code of conduct listed specifically but it is something that the council could address in future contracts. 8.4 ID 22-3457 Approve Change Order No. 1 to Construction Contract for the Island WWTP Flow Equalization Basin (FEB) Replacement Project with Technology Construction, LLC (Jason Hart) Project Manager Jason Hart advised that this item is to approve a change order to the construction contract for the Island WWTP Flow Equalization Basin (FEB) replacement project. He outlined the following in his presentation: • Original FEB was constructed in 1983 and then modified in 1999 for odor control. • FEB was shut down due to various issues in 2011 and Carollo Engineers was hired in 2019 to design replacement FEB. • City Council awarded construction contract to replace existing FEB to Technology Lake Havasu City Page 13 Printed on 9/29/2022 City Council Minutes - Final September 13, 2022 Construction on July 13, 2021, for $4,109,001, nearly $1.2 million below budgeted allotment and engineer’s opinion of cost. • Construction began late November 2021 and was suspended late December due to field conditions that arose. • Design contract with Carollo Engineers amended February 8, 2022, for design revisions, etc. • Carollo Engineers completed design changes on March 28, 2022, with package delivered to Technology Construction. • Technology Construction provided original quote and documentation for proposed changes, cost escalations, etc. on May 24, 2022. • Review of proposed quote package was performed by Carollo special construction group and City staff. Review was completed on June 21, 2022, and comments/questions sent back to Technology Construction. • Negotiations were completed on July 5, 2022, with a cost reduction of $124,000 and overall contract increase of approximately 25%, a standard the City is seeing across the board on project cost estimates. Mr. Hart added that several project materials have been secured and paid for already including piping, mixers for odor control, bridge anchors, and rebar. Councilmember Lane asked if the original engineer’s estimate was $1.2 million higher than the original bid amount, to which Mr. Hart responded yes. Councilmember Lane noted that even with the change order the city is still under the original engineer’s estimate, within budget, and not utilizing any contingency funds. Councilmember Coke said the City Council has the option to reject the change order and rebid the project but takes the chance of the bid coming in higher and potentially losing out on materials that have already been purchased, to which Mr. Hart replied yes. He added that if the council rejected the change order, the city would have to go back to the consultant to repackage the bid, which would result in additional costs as well. In addition, the city would like to utilize the materials on hand because they are specialty items can be a challenging subject with contractors when they have to provide a warranty for materials that they did not purchase. Mr. Hart said if the project were rebid, he would anticipate bids coming in much higher. Councilmember Campbell asked if legally the city can accept a change order of this amount, to which City Attorney Kelly Garry responded yes. Mayor Sheehy opened the public hearing. Ms. Toy addressed the council and said the council does not know whether rebidding the Lake Havasu City Page 14 Printed on 9/29/2022 City Council Minutes - Final September 13, 2022 project would be more difficult or take more time and encouraged the council to try. Mr. Fischer addressed the council and asked if the purchased materials (rebar) have been protected from the elements for utilization, to which Mr. Hart said the city is aware that they will have to evaluate the condition of the rebar to see whether it meets the standards and specifications. There being no further comments, Mayor Sheehy closed the public hearing. Councilmember Moses moved to approve Change Order No. 1 to the Construction Contract for the Island WWTP FEB Replacement Project with Technology Construction, LLC, in the amount of $1,053,864.13, 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 8.5 ID 22-3446 Approve Cooperative Purchase of Auto Parts and Services from (Carquest) DAB Auto, Inc., dba Jack’s Auto Parts and Annual Expenditures Exceeding $50,000 (Bill Young) Transportation and Maintenance Superintendent Bill Young advised that this item is requesting approval of a cooperative purchase agreement with CarQuest dba Jack’s Auto Parts for aftermarket parts for the city’s fleet and equipment services. Councilmember Lin asked if the increase in expenditures is due to inflation, to which Mr. Young explained that the increase in costs is due to aging fleet, new fleet, and inflation costs. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Coke moved to approve the Cooperative Purchase Agreement for aftermarket auto parts, supplies and services from DAB Auto, Inc., Lake Havasu Carquest dba Jack’s Auto Parts in excess of $50,000 annually, utilizing OMNIA Partners Contract; authorize the City Manager to sign the Cooperative Purchase Agreement; and authorize City staff to exercise the option to renew as provided for in the Agreement, 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 9. CURRENT EVENTS Lake Havasu City Page 15 Printed on 9/29/2022 City Council Minutes - Final September 13, 2022 Mayor Sheehy provided an update on the Mohave County Water Authority. He said they met earlier today to discuss water in the southwest system and poor condition of flows, and said they elected to hire a federal lobbyist. 10. FUTURE MEETINGS Tuesday, September 27, 2022 @ 6:00 p.m. – Regular Meeting Tuesday, October 11, 2022 @ 6:00 p.m. – Regular Meeting 11. FUTURE DISCUSSION ITEMS There were no requests from the council for future discussion items. 12. ADJOURN Upon motion by Councilmember Lane and seconded, the meeting adjourned at 9:32 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 13th day of September, 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 9/29/2022