City Council

Mayor Cal Sheehy Lake Havasu City Vice Mayor David Lane Police Facility Councilmember Nancy 2360 McCulloch Blvd North Campbell Lake Havasu City, Arizona Councilmember Jeni Coke 86403 Councilmember Jim Dolan www.lhcaz.gov Councilmember Michele Lin Councilmember Cameron Moses City Council Regular Meeting Minutes - Final Tuesday, January 10, 2023 6:00 PM 1. CALL TO ORDER Mayor Sheehy called the meeting to order at 6:00 p.m. 2. INVOCATION: Pastor Dale Ray, Lakeview Community Church Pastor Dale Ray, Lakeview Community Church, gave the invocation. 3. PLEDGE OF ALLEGIANCE: Havasu Balloon Festival and Fair Mr. Jim Day, Havasu Balloon Festival and Fair, led in the Pledge of Allegiance. 4. ROLL CALL Present: 7- Mayor Cal Sheehy, Councilmember Nancy Campbell, Councilmember Michele Lin, Councilmember Cameron Moses, Councilmember Jeni Coke, Vice Mayor David Lane and Councilmember Jim Dolan 5. CALL TO THE PUBLIC There were no requests to address the council. 6. CONSENT AGENDA 6.1 ID 23-3612 Approve the December 6, 2022, City Council Special Meeting and the December 13, 2022, City Council Regular Meeting Minutes (Kelly Williams) 6.2 ID 22-3580 Adopt Resolution No. 23-3624 Approving the Submission of an Application for Funding from the Arizona Department of Emergency and Military Affairs for Human Trafficking Investigations and Education, and Authorizing Execution of All Necessary Documents and Implementation of the Funded Activities (Chief Stirling) 6.3 ID 22-3581 Adopt Resolution No. 23-3625 to Approve the Submission of a Grant Application for Funding from the Arizona Department of Emergency and Military Affairs for Border Fencing and Technology, and Authorize All Actions Necessary to Implement the Grant (Chief Stirling) Lake Havasu City Page 1 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 6.4 ID 23-3584 Adopt Resolution No. 23-3626 Approving a Payroll Deduction Agreement with Lake Havasu Unified School District No. 1 to Allow Participation by City Employees in the Extracurricular Tax Credit Program Through Payroll Deductions for Tax Year 2023 (Jill Olsen) 6.5 ID 23-3602 Adopt Resolution No. 23-3627 Approving and Authorizing the Police Chief to Execute the Intergovernmental Agreement with the City of Kingman, City of Bullhead City, Mohave County Attorney’s Office, and Mohave County Sheriff’s Office for the Purpose of Providing Commissioned Officers and to Continue the Ongoing Operations of the Mohave Area General Narcotic Enforcement Team (MAGNET) (Chief Stirling) 6.6 ID 23-3596 Adopt Resolution No. 23-3628 Approving Abandonment of the Entire Blanket Public Utility and Drainage, Ingress/Egress and Parking Easement, Except the 10-Foot Wide Public Utility Easement and Drainage Easement Along Both the Easterly and Southerly Property Lines, and Dedicating an Additional 5-Foot Wide Public Utility Easement and Drainage Easement Along the Existing Southerly 10-Foot Wide Public Utility Easement and Drainage Easement for 1050 Lake Havasu Avenue N., Tract 2308C, Block 1, Lot 1 (Trevor Kearns) 6.7 ID 23-3601 Adopt Resolution No. 23-3629 Approving Abandonment of the Entire 10-Foot by 287-Foot Public Utility and Drainage Easement on the Northern Boundary of 2311 Green Drive, Tract 2171, Block 3, Lot 1 (Trevor Kearns) 6.8 ID 23-3604 Adopt Resolution No. 23-3632 to Accept Dedication of a 16-Foot by 356-Foot Public Utility Easement between Lot 1-A and Parcel A-2, a 20-Foot by 89-Foot Public Utility Easement Between Parcel A-2 and Parcel A-1 and a 10-Foot-Wide Anchor Easement on the Western Boundary of Parcel A-1, Tract 2240, Parcel A & Tract 2215, Block 7, Lot 1 (Trevor Kearns) 6.9 ID 23-3597 Approval of the Final Subdivision Plat for Tesoro Townhouses, at 1080 Acoma Place, Tract 2287, Block 3, Lot 2B, Creating a 13-Unit Residential Townhouse and 11-Unit Air-space Garage Condominium Subdivision in the Residential Southgate District (R-SGD) (Trevor Kearns) 6.10 ID 23-3613 Call for Executive Session Pursuant to A.R.S.§ 38-431.03(A) 5:00 p.m., Tuesday, January 24, 2023 (Kelly Williams) Councilmember Coke moved to approve the Consent Agenda as presented, seconded by Councilmember Moses, and carried by the following vote: Aye: 7 - Mayor Sheehy, Councilmember Campbell, Councilmember Lin, Councilmember Moses, Councilmember Coke, Vice Mayor Lane and Councilmember Dolan Lake Havasu City Page 2 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 7. CORRESPONDENCE, COMMUNICATIONS, PETITIONS, ANNOUNCEMENTS, CITY MANAGER REPORT 7.1 ID 23-3614 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 said applications are available on the City’s website at www.lhcaz.gov, and added that the deadline to submit applications for current vacancies is 5:00 p.m. on Friday, January 20, 2023. 7.2 ID 23-3615 City Manager’s Report (Jess Knudson) City Manager Jess Knudson reported on the following: • Announced various ceremonies, events, and proclamations. 8. PUBLIC HEARINGS 8.1 ID 22-3572 Series #06 Bar Liquor License, McKee’s, 2112 McCulloch Boulevard N/Goff (Kelly Williams) Ms. Williams advised that Ms. Wendy Goff has applied for a Series #06 Bar Liquor License for McKee’s located at 2112 McCulloch Boulevard North. She said all posting requirements have been met, all fees have been paid, and no objections were received. Ms. Williams added that the location is properly zoned for a Series #06 liquor license. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Dolan moved to recommend that the Arizona Department of Liquor Licenses & Control approve a Series #06 bar liquor license for McKee’s, 2112 McCulloch Boulevard N., seconded by Councilmember Moses, and carried by the following vote: Aye: 7 - Mayor Sheehy, Councilmember Campbell, Councilmember Lin, Councilmember Moses, Councilmember Coke, Vice Mayor Lane and Councilmember Dolan 8.2 ID 23-3583 Series #7 Beer and Wine Bar Liquor License, Burgers by the Bridge, 401 English Village/McLearen (Kelly Williams) Ms. Williams advised that Ms. Harriet McLearen has applied for a Series #7 Beer and Wine Bar Liquor License for Burgers by the Bridge located at 401 English Village. She said all posting requirements have been met, all fees have been paid, and no objections were received. Ms. Williams added that the location is properly zoned for a Series #7 liquor license. Lake Havasu City Page 3 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 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 #7 beer and wine bar liquor license for Burgers by the Bridge, 401 English Village, seconded by Councilmember Dolan, and carried by the following vote: Aye: 7 - Mayor Sheehy, Councilmember Campbell, Councilmember Lin, Councilmember Moses, Councilmember Coke, Vice Mayor Lane and Councilmember Dolan 8.3 ID 23-3594 Approve the Professional Services Agreement with Willdan Financial Services for the 2023 Utility Cost of Service Rate Study (Anthony Kozlowski) Assistant to the City Manager Anthony Kozlowski advised that this item is to approve the professional services agreement with Willdan Financial Services for the 2023 Utility Cost of Service Rate Study. Mr. Kozlowski stated that the one-year timeline is set to expire, and based on council’s direction at the October 2021 meeting, city staff is set to conduct a second study to provide a comprehensive review of rates. He explained that in September 2022, the city issued a Request for Proposals (RFP) for professional consulting services and received three responses with the selection committee recommending Willdan Financial Services as the top-evaluated firm. He introduced Mr. Kevin Burnett, Co-Project Manager with Willdan Financial Services, to discuss the project requirements, conservation-based rate structures, project scheduling and milestones, and findings and study results. Mr. Burnett outlined the following in his presentation: Presentation Contents • Changes in Approach/Focus Since Prior Study • Project team • Scope of Work • Summary • Questions Proposed Approach and Focus • What are Council’s goals and objectives for the study? o More conservation o Will work to incorporate all Council objectives o Some objectives may be in competition with each other • Staff will have models and Willdan support o Deviations in rate assessment after last study o If there are future deviations, models should be updated/Willdan assistance in Lake Havasu City Page 4 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 reviewing impacts of deviations Utility Revenue & Rates Understanding the difference between revenue and rates. Revenues • Amount of money required to fund water operations o Total amount of money generated by the rates to cover expenses of the water utility Rates • The calculated rates that are charged to customers o Base charge (rate/fee) o Usage (volume of consumption) Project Team – Background • Kevin Burnett – Co-Project Manager o 22 years’ experience conducting over 100 retail and wholesale utility rate studies for public sector agencies located across the country. o Responsible for communicating with the City, and the day-to-day management of this engagement. o Provide analytical support for this engagement, gathering, verifying, and analyzing the data necessary for the study. o Work with the team to develop and tailor the financial and COS models to the City’s specific needs and objectives. o Will participate in City Council and Stakeholder meetings. • Pat Walker – Co-Project Manager o 40-plus years’ experience in local government and municipal finance; has worked closely with Mr. Burnett since 2002 and established a strong working relationship with Willdan over the past 8 years. o 38 years’ experience conducting utility rate studies for public sector agencies located across the country. o Work with the team to develop and tailor the financial and COS models to the City’s specific needs and objectives. o Developed both short and long-term financial plans for utilities of all sizes. • Michael Cronan – Analytical Support o 3 years’ experience in providing financial planning and rate analysis support. o Will conduct financial and rate analysis under the direction and supervision of Mr. Burnett and Ms. Walker. • Jeff McGarvey – Rate Structure Advisor and QA/QC o 25-plus years’ experience in providing a variety utility management consulting services including financial planning, rate setting and debt issuance support. Lake Havasu City Page 5 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 o Will review work product and deliverables for accuracy. Key Project Objectives/Discussion Points • Develop financial and rate model, comprehensive analysis • Scenarios created to evaluate assumptions for: o Operating and maintenance costs o Reserves o CIP funding o Cost of service allocations • Provide assessment of existing financial condition • Provide recommendations for rate updates that: o Meet cost of service o Revenue requirements o Drought management objectives o Seasonal demand o Conservation o Ensure financial stability Scope of Work • Task 1: Development of an Optimized Financial Management Plan o Conduct a staff planning workshop to review data and discuss objectives o Develop a preliminary set of financial planning scenarios for both the Water and Wastewater Funds o Prepare presentation and resource materials for the financial planning workshop o Conduct a financial decision support workshop o Workshop with Council to better understand financial objectives and goals • Task 2: Cost of Service Analysis o Allocate costs to each service  Water and wastewater o Allocate costs to functions, classifications and customer classes  We will conduct discussions with staff on the desire to expand or consolidate existing customer classes  We will also seek input from Council on refinement to the existing rate structure • Task 3: Rate Design Analysis o Conduct a rate design support workshop with Staff and/or Council  Discuss pros and cons of different rate structures  Identify importance of competing objectives o Develop a preliminary set of rate options for both the Water and Wastewater utilities  Rate options will be presented to staff and refined based on discussions Lake Havasu City Page 6 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023  We will also be looking for input from Council on rate options to be explored • Task 4: Summary of Recommendations o Preliminary draft report  Address findings and recommendations  Include assumptions used in analyses o Final report  Modification of draft report based on input from staff and stakeholders  Delivery of excel based model for staff’s future use • Task 5: Meetings and Presentations o 6 Meetings with City Staff o 7 Meetings with City Council o 3 Stakeholder meetings o Progress web conferences/conference calls (throughout project at intervals determined by City Staff) Summary • We have the experience, qualifications and depth of bench to complete the study requirements o We have the expertise but not all the answers  We will build on prior study knowledge and models o We need to partner with the City to better understand Lake Havasu’s specific goals, values and objectives o This will be a team effort • Council and stakeholder involvement will be critical to the project success Mayor Sheehy asked what the timeframe would be for the scope of work, to which Mr. Burnett said approximately three months. There was discussion on when the new rate structure would need to go into effect. Mayor Sheehy provided a brief history on the formation and expiration of the Irrigation and Drainage District (IDD). Councilmember Campbell expressed concerns with approving a second study from the same company. She suggested the city either not hire another rate study or get a second opinion. Mayor Sheehy said the city received three bids with Willdan Financial Services (“Willdan”) being the lowest bid at $51,000 versus the next lowest at $136,000. He added that in using Willdan, the city would be getting the benefit from the work that they have already done and would be doing new rate modeling based on the city’s new determination Lake Havasu City Page 7 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 of scope. Mayor Sheehy opened the public hearing. Mr. David Diaz, citizen, addressed the council and asked if the original study accomplished the city’s goal of collecting the amount needed to offset the loss of revenues from the expiration of the IDD, to which Mayor Sheehy replied no, the city is currently using fund balance to offset the loss in revenues from the IDD. There being no further comments, Mayor Sheehy closed the public hearing. Councilmember Moses said he would like to see a concerted effort to invite the homeowners' associations and multi-family units to the public meetings to provide input. Mayor Sheehy agreed and said the scope of work includes a much greater public outreach and engagement process. Councilmember Moses moved to approve the Professional Services Agreement with Willdan Financial Services for the 2023 Utility Cost of Service Rate Study in the amount of $51,465 and authorize the City Manager to execute the Agreement, seconded by Councilmember Dolan, and carried by the following vote: Aye: 5 - Mayor Sheehy, Councilmember Moses, Councilmember Coke, Vice Mayor Lane and Councilmember Dolan Nay: 2 - Councilmember Campbell and Councilmember Lin 8.4 ID 22-3579 Introduce Ordinance No. 23-1303 Declaring the Document Entitled "2023 Amendments to the Lake Havasu City Code Chapter 7.20, Water Conservation, January 24, 2023" a Public Record and Amending Chapter 7.20, Water Conservation, by Adopting by Reference Multiple Text Amendments to Revise Water Conservation Regulations and Penalties (Anthony Kozlowski) Mr. Kozlowski advised that this item is to introduce amendments to Lake Havasu City Code Chapter 7.20, Water Conservation. He explained that Lake Havasu City has a long history of thoughtful water management and has been preparing for drought conditions for decades by adhering to the principles of sound water management and focusing on sustainability and smart growth. He added that to ensure the city remains a diligent steward of water resources, staff is purposing strategic yet meaningful changes to the City Code. Mr. Kozlowski advised that the United States Bureau of Reclamation (BOR) has declared a Tier 2 water shortage and the proposed amendments bring the city’s water conservation and restrictions policy current and aligned with the BOR’s tier structure. Mr. Kozlowski reviewed the Lake Havasu City water conservation measures and restrictions as follows: Lake Havasu City Page 8 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 Tier 1 Federal Colorado River Shortage is Declared • Not using water to wash buildings or driveways at any time. • Reducing or making plant watering more efficient. • Instituting other water saving practices, such as covering pools and spas and replacing appliances with high efficiency units. • Draining pool water into the City’s sewer system instead of onto the street. • Correcting leaks, breaks, or malfunctions within seventy-two hours of the date of notice of failure or malfunction. • Restaurants refraining from serving water unless requested by the customer. • Not operating irrigation systems during the hours of 5:00 a.m. to 6:00 p.m. • Not operating irrigation systems on days other than those listed below: o Odd numbered addresses may water on Monday, Wednesday, and Friday. o Even numbered addresses may water on Tuesday, Thursday, and Saturday. • Hotels and motels shall post notices encouraging water conservation practices. Tier 2 Federal Colorado River Shortage is Declared • Use of water to wash motor vehicles and watercraft without a positive or automatic shut-off nozzle. • Operation of decorative fountains without recirculating systems. • Operation of irrigation systems on days other than those listed below: o Odd numbered addresses may water on Monday and Friday. o Even numbered addresses may water on Tuesday and Saturday. Tier 3 Federal Colorado River Shortage is Declared • Use of water to wash motor vehicles and watercraft except at commercial car washes and mobile car wash operations that use high-pressure hoses and nozzles. • Use of water from City fire hydrants for construction and pest control purposes. • Operation of irrigation systems on days other than those listed below: o Odd numbered addresses water on Monday. o Even numbered addressed water on Wednesday. “Wet Water” Shortage is Declared • Operation of irrigation systems using potable water. • Watering of turf and landscaping using potable water. • Draining a swimming pool or spa unless failure to do so will cause structural failure. • Operation of outdoor misting systems used to cool public areas. Councilmember Campbell expressed concerns on the timing and how the water conservation measures and restrictions may affect the utility rate study. She asked how the Lake Havasu City Page 9 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 restrictions would be regulated. Mayor Sheehy said the city has history with “winter quarter averaging” in terms of water usage and conservation and revenues. He said the urgency with doing this now is because in October 2020, the water conservation plan was presented before any tier shortages were called and the council at that time said they wanted to give citizens and businesses certainty with water conservation measures and restrictions. Mr. Kozlowski spoke on the public outreach and education plan. He noted that enforcement would be handled through code enforcement and spoke on the violation process and associated penalties. Councilmember Campbell said she would like to see water conservation fines tabled at this time. Dr. Doyle Wilson, Earth-Hydro Consulting, addressed the council and spoke on the hydrology of the snowpack. He said there is a 60 percent chance according to the BOR and Arizona Department of Water Resources that a Tier 3 could be declared in 2024, which is in addition to the BOR asking all seven basin states to reduce an extra 10 to 20 percent. Dr. Wilson said the city is trying to be proactive and take care of what might happen to not just Lake Havasu City, but to the lower Colorado River, if the demand is higher than the available supply. Councilmember Moses said he was in favor of the fines as it gives code enforcement the tools if needed. Vice Mayor Lane spoke on the importance of water conservation and developing a plan. He suggested Section 7.20.060(A)(2), on Page 4, be changed to allow citizens to wash their vehicles and watercraft with an automatic shut-off nozzle. Mayor Sheehy stated that he could support that change. Councilmember Campbell said she believes repeat offenders should be fined and wanted to retract her suggestion on tabling fines associated with water conservation measures and restrictions. Councilmember Dolan was in favor of having a plan but expressed concern with creating solutions for problems that the city does not have yet. He asked if the proposed water conservation measures mirrored other cities or if there are statistical numbers behind the measures. He said he was in favor of the change to allow washing of vehicles and watercraft with an automatic shut-off nozzle but expressed concern with the restriction of Lake Havasu City Page 10 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 washing buildings and driveways under Tier 1. Councilmember Dolan stated that a Tier 2 shortage has already been declared and asked if the city is prepared for all citizens to start draining their pools into the sewer system. Councilmember Dolan stated that a Tier 2 shortage has already been declared, and asked if the city is prepared for all citizens to start draining their pools into the sewer system. He suggested that “Not using water to wash buildings or driveways at any time” (Tier 1) be changed to allow citizens to wash buildings or driveways with an automatic shut-off valve. Councilmember Moses said he could support that change. City Attorney Kelly Garry said the city looked at codes across Arizona and other states and found that everywhere has something similar to the proposed restrictions in place to varying extents. Ms. Garry noted that the city is getting closer to that point where it is going to affect our possible water consumption in Lake Havasu City and said the council needs to consider, when it hits Lake Havasu City’s water supply and we have to reduce water, how important is it going to be to wash your buildings and vehicles. She said this is thinking the bigger picture and worst-case scenario, which is when these things are going to be extremely important and when we are going to have to really value water more than just washing vehicles and buildings, but water that you need to consume to live. Councilmember Dolan said he feels that the plan needs to be customized to Lake Havasu City. He said citizens in Lake Havasu City do conserve a lot of water and he believes the city needs to live within our tiers and water and cannot save everyone else by doing this. He said citizens in Lake Havasu City do conserve a lot of water and he believes the city needs to live within our tiers and water, and the city cannot save everyone else by doing this. Ms. Garry said it is a collective problem and we all need to be a part of the solution. She said Lake Havasu City is going to step up to be a part of that solution and make a difference. She said staff spent a lot of time going through this plan to make it fit to Lake Havasu City to create something that is meaningful and makes a difference. Councilmember Moses suggested “Not using water to wash buildings or driveways at any time” be moved to Tier 3. Mayor Sheehy advised that the city is currently in Tier 2 and a Tier 3 shortage could be declared as early as January 30th this year. Mr. Knudson explained the city’s annual water allocations, declarations of drought from the BOR, and restrictions of water as proposed under Tiers 1, 2, and 3. He said under the “Wet Water” shortage, the BOR would reduce the city’s water allocations, which would Lake Havasu City Page 11 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 be a significant cut to water usage in Lake Havasu City. Councilmember Dolan said he feels Lake Havasu City needs to live within the allocated water usage and water area before we start punishing citizens when the city still has the water. Mayor Sheehy said Lake Havasu City is behind in implementing restrictions as a Tier 2 has already been declared. He said the BOR is close to making a declaration of the water allocation to Lake Havasu City and everyone across the basin. He stated that the intent of the plan is to give certainty to citizens and businesses. Mayor Sheehy reviewed the following changes as proposed by council: 1) Allowing use of water to wash buildings or driveways at any time with an automatic shut-off nozzle (Tier 1). 2) Allowing use of water to wash motor vehicles and watercraft with a positive or automatic shut-off nozzle (Tier 3). Councilmember Lin asked if staff has evaluated who the largest water users are to address water conservation, to which Mayor Sheehy said those evaluations have occurred and will continue to occur as part of the utility rate study. Councilmember Campbell requested clarification regarding the use of water for dust control, to which Mayor Sheehy stated that the plan would restrict potable water and citizens would have to utilize effluent water for dust control and pest abatement. Councilmember Campbell said there are strict regulations for dust control and expressed concerns restricting restricting the use of metered fire hydrants due to theas there is a high level of alkaline in effluent water. Mayor Sheehy stated that the use of effluent water for dust control and pest abatement would not go into effect until a Tier 3 shortage is declared. Mr. Knudson clarified that the restriction does not prohibit the use of potable water but only the use of potable water. from fire hydrants. He noted that an alternative would allow for citizens to use effluent water for a minimal cost. Mr. Knudson added that information on available effluent locations would be available on the city’s website. Mayor Sheehy opened the public hearing. Ms. Peggy Pollock, citizen, addressed the council and said the city has been planning for growth and water for 90,000 people and wondered what has changed with water restrictions. Mayor Sheehy replied that the city has water entitlements for the full build-out of the community that have been secured over several decades; however, the BOR could Lake Havasu City Page 12 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 potentially declare a “Wet-Water” shortage which would reduce the city’s water supply. Ms. Pollock asked if construction growth has any impact on water supply, to which Mayor Sheehy said along the seven basin states potentially, but not in Lake Havasu City. He said if the city were to stop building the water would continue down to the metropolitan area or central Arizona to use to build, and Lake Havasu City would go away. Ms. Pollock asked if citizens would still be allowed to build pools, to which Mayor Sheehy replied yes. Ms. Pollock suggested the pool permit fees be increased to reduce the number of pools being built. Mr. Emiliano Torres, citizen, addressed the council regarding the restriction of use of water to wash motor vehicles and asked if he would be considered a “mobile car wash” if he washed his vehicle with a power washer at home. Mayor Sheehy clarified that based on the discussion from council tonight, citizens would be able to wash motor vehicles and watercraft with the use of an automatic shut-off valve. Mr. David Gunnerson, citizen, addressed the council and said he has lived in Lake Havasu City for 30 years and worked for the BOR for 25 years. He said the council needs to get it out of their mindset that Lake Havasu City will be giving up water to someone else. He said everyone in the state of Arizona is being asked to cut their water. He said municipal water use in Arizona is only 25 percent of the total allocation, the other 80 percent goes to agriculture. He explained that the typical Arizona resident uses 146 gallons of water per day, but really each person uses approximately 44 gallons of water and the additional 122 gallons of water is used for outside uses (i.e.such as irrigation). He suggested the council focus on water use and offering incentives for homeowners to reduce the number of plants in their yard to conserve water. He added that everyone must cut their usage to some extent, and it would behoove the city to create a program where people have an incentive to not use water. He added that the council also needs to look closely at Tier 3, as it will be declared much sooner than anticipated. Mr. Rick Lathrop, citizen, addressed the council and spoke on draining swimming pools. Rick Lathrop, citizen, addressed the council and spoke on draining of swimming pools. He said the problem with draining pools to the sewer system is that you can only drain up to 6 gallons per minute which is 360 gallons per hour. He said with approximately 20,000 pools in town that represents 1,000-acre feet of pool water into the sewer system that no one is managing. He added that the city is plumbed for effluent that is not hooked up, which should be a priority for the city at this time. Councilmember Campbell asked Mr. Lathrop about the Reverse Osmosis (RO) system for pools, to which Mr. Lathrop spoke on his business using RO technology or “high pressure/high volume multiple membrane filtration” with a a 90 percent water recapture rate. Lake Havasu City Page 13 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 Councilmember Campbell asked if the council would consider adding RO technology to the water conservation plan for draining pools instead of draining to the sewer system. Ms. Garry advised that this is not something that staff saw anywhere else; therefore, it is not something that she would be comfortable recommending putting in today. She said the city does not have enough information to know whether it is viable, used by other places, or how it is regulated and controlled, but is something that the city can look into further and something that the council can add to the plan at a later daytime. Mr. Chad Nelson, citizen, addressed the council and suggested the council consider upgrading its water storage. He said he also was in favor of the idea of a program that incentivizes citizens and builders to remove plants and use artificial plants to conserve water. Mr. Craig Geary, citizen, addressed the council and suggested that the restrictions of operation for irrigation be changed to weekends as more citizens are home on the weekend to monitor their irrigation and water usage. He said three days for operation of irrigation is more than generous as turf will survive; however, one day a week will not keep turf alive. He asked the council to keep the condition of the city parks and turf in mind when restricting water usage. Councilmember Campbell was in favor of changing one of the days to a weekend when the operation for irrigation is limited to two days a week. Councilmember Moses asked if the restrictions would include city parks as well, to which Mayor Sheehy replied that the code as written would not include municipal uses. Councilmember Moses asked if the city could include language in Tier 3 that would limit water usage for golf courses and parks as well. Mayor Sheehy noted that most of the golf courses and some parks are using effluent water already, and added that there is also an inherent need for the city to get rid of effluent water. Councilmember Moses said he would not suggest restrictions on effluent, but potable water for sure. There being no further comments, Mayor Sheehy closed the public hearing. Mayor Sheehy reviewed the proposed changes as follows: 1) Allowing use of water to wash buildings or driveways at any time with a positive or automatic shut-off nozzle (Tier 1). 2) Allowing use of water to wash motor vehicles and watercraft with a positive or automatic shut-off nozzle (Tier 3). 3) Use of water from City fire hydrants for construction and pest control purposes. Lake Havasu City Page 14 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 Adding language that “effluent water would be available” (Tier 3). Councilmember Dolan requested more detailed information and calculations to better anticipate the changes in terms of water usage and conservation. He spoke on the importance of educating the public on landscaping and irrigation conservation. Councilmember Campbell requested the council look at ways the city can incentivize homeowners to reduce their water usage. Councilmember Moses moved to introduce Ordinance No. 23-1303 declaring the document entitled "2023 Amendments to the Lake Havasu City Code Chapter 7.20, Water Conservation, January 24, 2023" a Public Record and amending Chapter 7.20 by adopting by reference multiple text amendments, seconded by Councilmember Coke, and carried by the following vote: Aye: 7 - Mayor Sheehy, Councilmember Campbell, Councilmember Lin, Councilmember Moses, Councilmember Coke, Vice Mayor Lane and Councilmember Dolan 8.5 ID 23-3608 Introduce Ordinance No. 23-1300 Amending Lake Havasu City Code Section 3.20.040, Schedule of Fees and Service Charges, to Update Costs Recovered (Jill Olsen) Administrative Services Director Jill Olsen said in December 2022, staff brought forward the fee schedule and sought direction from the council on how to apply the Consumer Price Index (CPI) to the fees. She stated that the council gave direction to apply the CPI at 13.85 percent to all fees for the council’s review. Ms. Olsen explained that every two to three years staff will do an in-depth analysis of the fees which represents the cost the city incurs when providing the services related to those fees and a cost recovery rate is applied to that fee (except for court fees, building permit fees, and utility rates). Ms. Olsen noted that the items highlighted in yellow on the master fee schedule did not get increased at the same level as the other fees based on the current market rate and how it fits within the community. She added that the Parks and Recreation Department also recommends that the fee for S-354, Junior Lifeguard Program, remain the same. She said if this ordinance is adopted at the next meeting, the fees would go into effect on March 1, 2023. Mayor Sheehy explained that the council has directed staff to bring back the master fee schedule every two years and do an analysis; however, due to high inflation costs, staff did a quick analysis and realized that some of the items would be increasing at double digit percentages. He said when staff brought this item to the council in December 2022 there was consensus from the council to move forward with this review which if adopted tonight would go into effect on March 1, 2023. Mayor Sheehy added that he was one of the advocates for looking at the fees every two years. Mayor Sheehy opened the public hearing. There being no comments, he closed the public Lake Havasu City Page 15 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 hearing. Councilmember Lin asked if lifeguards hired by the city have to be trained first, to which Parks and Recreation Director Mike Keane replied no. He said the city will hire individuals as a trainee and put them through the lifeguard training. He said the Lifeguard Training fee is for requests from outside agencies or businesses for lifeguard training, where the individual is not working for Lake Havasu City. Vice Mayor Lane moved to introduce Ordinance No. 23-1300 amending Lake Havasu City Code Section 3.20.040, seconded by Councilmember Moses, and carried by the following vote: Aye: 6 - Councilmember Campbell, Councilmember Lin, Councilmember Moses, Councilmember Coke, Vice Mayor Lane and Councilmember Dolan Nay: 1 - Mayor Sheehy 8.6 ID 23-3585 Adopt Resolution No. 23-3633 Approving a Minor Amendment to the Future Land Use Map of the City’s General Plan for 340, 350, 380, & 390 Beachcomber Boulevard, Grand Island Estates Parcels A, B, C-1, & C-2, to Change the Future Land Use Designation from Resort Related to Resort Residential (Luke Morris) Planning Division Manager Luke Morris stated that the subject properties are part of the Grand Island Estates Planned Development approved in 1994 which consists of a resort-hotel, casitas, and a commercial development (shown in red as Parcels A, B, and C) and also includes five single-family residential subdivisions (shown in green as Parcels D, E, F, G, and H) and a park (shown as Parcel G). He said this Planned Development is currently in place, and Parcels A, B, and C are subject to this proposed General Plan development and the following two rezones. He said in 1996, a development agreement was entered into between the Grand Island Estates developer and Lake Havasu City, and a supplementary development agreement was executed in 1998 (referred to together as the “Development Agreement”). Since that time the various parcels of the development have been sold off to different developers and according to its terms the Development Agreement as a whole automatically terminates on May 19, 2028, or automatically terminates as to any portion of the development in which a developer or owner fails to obtain a permit for development for any improvements by May 19, 2013, or automatically terminates as to any lot which has been fully subdivided and individually sold or leased to the end purchaser or user. Mr. Morris explained that the Development Agreement for Parcels A, B, and a portion of C automatically terminated based on the developer/owner failing to obtain a permit for development for any improvements by May 19, 2013, and in 2019 the owner of those parcels requested that the parties formally acknowledge termination of the Development Agreement as to those parcels and the City Council approved this acknowledgement and was recorded by the Mohave County Recorder’s Lake Havasu City Page 16 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 Office. The Development Agreement for the other portion of Parcel C automatically terminated as it was sold to the end purchaser or user, and in 2007 that owner began construction of a hotel project, which was ultimately abandoned and the foundation was removed. Mr. Morris noted that the Development Agreement is not part of this General Plan amendment and is not subject in the two subsequent plan rezones. Mr. Morris said the first item is a minor General Plan amendment and the next two items are for Planned Development rezones. He said the General Plan land use map provides a high-level general land use designation for properties, not the actual zoning, and helps to guide decisionmakers as to which of the potential types of zonings may be allowed under that General Plan designation. He said the General Plan amendment is the first step for these properties to be rezoned, and the two Planned Development rezone items are the second step and establish the zoning for the properties. Mr. Morris displayed an area map and said the subject properties consist of four parcels (A, B, C-1, and C-2) that together measure approximately 23-acres, and are vacant and undeveloped. He said the properties are located on the Island on the northwest corner of Grand Island Estates development near the western edge of Beachcomber Boulevard. Mr. Morris said the properties are currently zoned Mixed-Use Neighborhood Planned Development (MU-N/PD), the properties to the north and west are vacant Arizona State Lands and zoned Island Body Beach, and the properties to the south and east are zoned Residential Estates Planned Development and developed with single-family homes, vacant lots, and the Grand Island Park. He said the requested Resort Residential land use designation allows for uses such as resort-residential development and accessory structures and is intended to provide opportunities for resort and residential development primarily on the Island and along the shoreline and encourages the use of clustering, higher densities, and innovative techniques. Mr. Morris said the proposed uses comply with the resort-related land use category and is consistent with the existing residential developments in the Grand Island Estates. Mr. Morris displayed the existing Planned Development which was approved in 1994 and includes up to 70-foot hotel-resort with approximately 225 rooms, 45 residential casita units, and approximately 50,000 square-feet of commercial uses (shown in red as Parcels A, B, and C). The proposed General Development Plan is asking to amend the city’s General Plan from Resort-Related to Resort-Residential to facilitate development of residential uses on the properties. The proposal includes two separate development areas that are part of the existing Planned Development and no longer included in the Development Agreement for Grand Island Estates. The first area is approximately 18-acres (shown in green) and includes approximately 55 detached single-family homes on individual lots. This area will be similar to the existing areas in Grand Island Estates development. The second area is approximately 5-acres (shown in blue) and is proposed Lake Havasu City Page 17 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 for a multi-family development with a maximum density of 8-units per acre which will result in a maximum of 40-units on this property. Mr. Morris displayed a table comparing the existing approved and proposed developments for the properties. He said the proposed request will eliminate the currently approved commercial, resort, casitas, and residential hotel use and replace it with approximately 55 single-family units and maximum of 40 multi-family residential units, which will result in only residential uses on this development. Mr. Morris explained that the existing Planned Development approved for Grand Island Estates included five residential subdivisions that were approved for a maximum of 402 lots. These five subdivisions are final platted with only 342 lots which is 60 lots fewer than what was originally approved. The proposed development is for 55 lots which when added to the 342 existing lots is less than the 402 lots that were originally approved for the entire Grand Island Estates project. The proposal will also replace the approved 45 resort casitas on Parcel B with a maximum of 40 multi-family residential units resulting in at least five fewer multi-family units than were originally approved for the Grand Island Estates project. The result will be the elimination of all the commercial, resort, and hotel element with a net decrease of approximately 13 dwelling units from what was originally planned in the Grand Island Estates. Mr. Morris noted that city departments, including Development Services, Public Works, Police and Fire, met and reviewed the proposed amendment and have no concerns about the development. He said it is determined that the project is not anticipated to have a negative impact on the existing access to the Island or to police or fire response times and there is also adequate capacity for sewer and water service to the development. He added that the Planning and Zoning Commission (“Commission”) heard this item at their December 7, 2022, meeting and approved the request 5-2. Mr. Luke Still, Desert Land Group, addressed the council and spoke on the complexity of the General Plan and provided a summary on the history and proposed development for the properties. He said the entire neighborhood has been active throughout this process expressing objections and concerns regarding the height and density with the proposed multi-family development. Mr. Still said their concern is that the multi-family use is not going to happen anytime soon and the owner believes that is a better plan for the property but something that they want to do in the future. He said there is a lot-line adjustment that makes both parcels work better together so the parties have been working together on the General Plan amendment and filed two different applications for the zoning. He said at the Commission meeting the 5-acre piece was approved for the General Plan but was rejected at the zoning level. He said if that happens tonight the owner is left uncertain with what he could do with the 5-acres. He asked staff and council for guidance on their options if they wanted to try and pull the request for the 5-acres and move forward with the General Plan amendment and rezoning only for Mr. Rohl’s piece. Lake Havasu City Page 18 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 Mayor Sheehy recommended the council hear all three items as presented on the agenda and if the City Council approves the General Plan amendment but not the rezone request, the council can come back and reconsider to address the General Plan amendment this evening that aligns with the underlying zoning determined by council. Mr. Still said it is his understanding that if the General Plan amendment is approved, but the rezoning is denied, they would have to get the General Plan changed back if they wanted to build a resort-hotel related use. He addressed additional concerns that need to be discussed with city staff regarding lot-line adjustments and a 20-foot public utility easement (PUE) that needs to be dedicated to the city. He said the owner is very concerned about the General Plan going one way and not really having a use and would like to spend more time with city staff understanding what the existing use potential is and moving forward separately and individually with a more detailed plan and more certainty on when it will be built. He said ideally they would like to move forward at this time with Mr. Rohl’s property only. Mayor Sheehy said the council can proceed with removing the 5-acre parcel out of consideration as requested. Ms. Garry advised that the council would have to decide how they feel about making the General Plan amendment with the removal of the property. She added that by doing that, it would withdraw their application for the rezone for the 5-acre parcel. Mr. Still advised that he is representing the owner who would like to remove the 5-acre parcel from consideration of the General Plan amendment. Mr. Morris said this item is for the General Plan amendment which is the overlying layer that would guide the underlying zoning categories. He said with the removal of the 5-acre parcel, instead of the entire area being subject to the General Plan amendment, the property now subject to the General Plan amendment is the 23-acres (Parcel A-1). He said the only change is the overall boundary and there will still be the General Plan designation for the new property and the 5-acre piece will remain its existing designation. Ms. Garry advised that because this amendment is coming in late what the City Council does not have is an analysis from staff on this request and the overall effect resulting in a resort-related use changing to residential with a small resort-hotel related piece. Mr. Morris reviewed the subject property overlay for Parcels A, B, and C and the request for amendment removing the 5-acre piece. He noted that when the City Council reviews the rezone request they will notice that the 5-acres cuts through the existing layout of the property overall and the Planned Development. Lake Havasu City Page 19 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 Mr. Still added that he believes the amendment solves a lot of the neighborhood concerns including leaving some commercial-related components in place potentially. He added that they have a preliminary plan for the piece that would convert over to a residential component with additional concessions based on the concerns heard and some additional setbacks to stay away from the other neighborhood. Mr. Still said he appreciated the City Council’s willingness to consider the application as amended. Councilmember Dolan asked if the amendment removes the 40 multi-family units, to which Mr. Still replied yes. Mayor Sheehy opened the public hearing. Mr. Frank Hayes, citizen, addressed the council and said he is a retired battalion chief who was a supervisor in the fire prevention bureau for the City of Long Beach and is currently a college professor who teaches fire science including fire prevention courses. Mr. Hayes said he is against any proposed general plan amendments, rezoning, or any other construction project at this time until a second bridge being constructed. He said the number one priority of any city government is to provide for public safety and from a general perspective the fire service priorities are life, property, and the environment. He spoke on the occupancy, density, and exits on the Island which could be classified as an “Assembly Occupancy (A-5)”. Mr. Hayes said with the ever-increasing population, this was proposed in 1994 and in 1997 there are documents that state that they had severe concerns about moving forward with any projects on the Island. He said the issue is with getting on the Island and said you can never plan when an incident will occur. He said there are more people and homes on the Island which will result in more calls for service and spoke on property protection with the number of mobile home parks on the Island that are very flammable and positioned close together. Mr. Hayes said the presentations earlier this evening addressed water and sewer issues and said he has heard stories that Lake Havasu City is going to receive 40 percent less water and people in other areas of Arizona are not going to build because they cannot project if they will have enough water, but this item is requesting to build another 100 houses on the Island that is already overcrowded and was never developed for this many residents and visitors. He said he understands that there is money in building mass development but does not feel that Lake Havasu City needs more housing. Mr. Hayes stated that he is not against development but is against something that is being rushed and urged the City Council to not waste this prime land for single-family homes. Mr. Nelson addressed the council and said he believes the city, homeowners, and applicant can come to a resolution as this project has come a long way. He said he does not believe the City Manager nor the City Council has the experience with these parcels Lake Havasu City Page 20 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 that have created a lot of controversy over the years. He said in 2019 when the Development Agreement was approved there were no comments which is interesting because it has been a turbulent piece of property. Mr. Nelson said he does not believe this project is ready and should be denied because there is a Planned Development in place on the whole property, which is not being replaced with a complete Planned Development and believes the loss of mixed-use with residential and commercial-accessory uses may not be applicable today, but the City Council only has one chance to develop this property. Mr. Nelson asked that the concessions, for example the number of single-family homes, be adopted into the resolution. Mayor Sheehy clarified that the number of homes is included and clarified that with the removal of the 5-acre parcel the commercial-component remains in place. There was discussion regarding the removal of the 5-acre parcel and what elements of the Planned Development remain in place, to which Ms. Garry stated that the Planned Development for the 5-acre parcel would be required to come back to the City Council to look any different than the existing Planned Development. Councilmember Campbell requested clarification on whether the proposed Planned Development would have less density, to which Mr. Morris replied yes. Councilmember Campbell said she is a strong supporter of property rights but stated that she would be hesitant to support any new development on surrounding trust lands until the city has the traffic and second bridge studies in place. Ms. Monique Hayes, citizen, addressed the council and said many homeowners on the Island bought their homes based on the existing Planned Development. She said the proposed plan is for more single-family homes and not the Island-resort living with a hotel, outdoor dining, commercial, and retail uses. She said the council has the opportunity to develop the property into something magnificent and believes it is a disservice to the residents to remove the 5-acres and only have a plan for part of the property. She added that a petition has been signed by over 500 residents on the Island who are against this plan. Ms. Debbie Young, citizen, addressed the council and said the original Development Agreement talked about a second bridge being in place before being built-out and said there should be studies done every 10 years to see the impact on traffic and infrastructure. She said she does not believe those studies have not been done and asked how they can build anything there when the original Development Agreement restrictions were not followed. She said the owner bought the property knowing that and should be held to the restrictions that were originally in place. Lake Havasu City Page 21 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 There being no further comments, Mayor Sheehy closed the public hearing. There was discussion regarding the city’s traffic studies and water and wastewater master plans. Mr. Knudson said the city has a solid understanding of the city’s traffic, sewer, and water systems. Fire Chief Pete Pilafas addressed the council and said the entire city is a concern when it comes to fire and emergency medical service protection. He said the Fire Department’s priorities are firefighter safety and customer service. He said life, property and the environment are all key points for fire protection, but Lake Havasu City is an all-hazard fire department. Chief Pilafas noted that the number of incidents on the Island to date is less than three percent of 10,000 calls for service throughout the community. He explained that when looking at development plans, they make sure it will not have an impact and that the Fire Department has the services and desired response times. He noted that as the Island continues to develop, the Fire Department will continue to do an analysis for future developments as they are a professional organization and run a professional fire department that looks at everything with decisions that are based on having adequate protections for Lake Havasu City. Chief Pilafas added that there were no major fires on the Island in 2022 or 2021; however, there are risks as there are risks everywhere in the community, but it is how the city tolerates risks in making sure we have the appropriate staffing. Councilmember Moses expressed concerns with splitting the property as staff has not been able to vet the proposed amendment and added that he does not like removing the commercial or resort node from the property as the city depends on taxes from commercial parcels to help pay for services. He said he agrees that the 5-acre parcel should be residential as it is surrounded by residential and the commercial should be on the water where it can have the highest and best use, but his fear is that the second bridge never comes, and the city never gets commercial and keeps infilling with residential homes. Mayor Sheehy noted that the biggest challenge is the last-minute change to the proposed amendment. Vice Mayor Lane moved to adopt Resolution No. 23-3633 approving a Minor Amendment to the Future Land Use Map of the City’s General Plan for 340, 350, 380, & 390 Beachcomber Boulevard, Grand Island Estates Parcels A, B, C-1, & C-2, to change the Future Land Use Designation from Resort Related to Resort Residential, excluding 350 Beachcomber Boulevard, Grand Island Estates Parcel C-2, and a portion of 340 Beachcomber Boulevard, Grand Island Estates Parcel B, as shown on the zoning boundary attachment, seconded by Councilmember Dolan, and carried by the following vote: Lake Havasu City Page 22 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 Aye: 4 - Councilmember Campbell, Councilmember Coke, Vice Mayor Lane and Councilmember Dolan Nay: 3 - Mayor Sheehy, Councilmember Lin and Councilmember Moses 8.7 ID 23-3586 Adopt Ordinance No. 23-1301 Approving a Planned Development Rezone for 340, 380, & 390 Beachcomber Boulevard, Grand Island Estates, Parcel A, and Portions of Parcels B, C-1, and C-2, Removing the Property from the Original Mixed Use Neighborhood/Planned Development District (MU-N/PD), and Establishing a New Residential Estates/Planned Development District (R-E/PD), Allowing the Following Exceptions: Minimum Lot Area Reduced from 15,000 Square Feet to 10,000 Square Feet, Side Setback Reduced from 10 Feet to 5 Feet, and Rear Yard Setback Reduced from 20 Feet to 15 Feet (Luke Morris) Mr. Morris advised that the subject property consists of Parcels A and portions of Parcels B, C-1, and C-2 that together measure approximately 18-acres and are vacant and undeveloped. He said the properties are located on the Island at the northwest corner of the Grand Island Estates development near the western end of Beachcomber Boulevard. The properties are currently zoned Mixed-Use Neighborhood Planned Development (MU-N/PD), the properties to the north and west are vacant Arizona State Lands and zoned Island Body Beach, the properties to the northeast are zoned MU-N/PD, and the properties to the east and south are zoned Residential-Estates Planned Development (R-E/PD) and developed with single-family homes, vacant lots, and the Grand Island Park. Mr. Morris reviewed the existing Planned Development and said the applicant submitted the proposed General Development Plan to allow the proposed residential zoning district. He said the proposed request is for approximately 18-acres and includes 55 detached single-family homes on individual lots that are part of the existing Planned Development but are no longer included in the Development Agreement for Grand Island Estates. Mr. Morris reviewed the Planned Development rezone comparing the existing approved and proposed developments for the property. He said the request will eliminate the currently approved commercial resort casitas and resort hotel uses and replace with approximately 55 single-family units which will result in only residential units for the property. Mr. Morris said the existing Planned Development approved for Grand Island Estates also included five residential subdivisions (shown in green) that were approved for a maximum of 402 lots. He said these five subdivisions are final platted for 342 lots, which is 60 fewer than the 402 approved. He said the proposed development is for 55 residential lots, which when added to the 342 existing lots, is fewer than the original 402 lots approved for the entire Grand Island Estates project. He said the applicant is requesting to rezone the Lake Havasu City Page 23 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 properties to R-E/PD and is asking for the following PD exception requests: • Minimum lot area reduced from 15,000 square feet to 10,000 square feet, • Side setback reduced from 10 feet to 5 feet, and • Rear yard setback reduced from 20 feet to 15 feet. Mr. Morris added that the exceptions are similar to what has been requested for other single-family residential lots within the Grand Island Estates development. Mr. Morris noted that city departments, including Development Services, Public Works, Police and Fire, met and reviewed the proposed amendment and have no concerns about the development. He said it is determined that the project is not anticipated to have a negative impact on the existing access to the Island or to police or fire response times. There is also adequate capacity for sewer and water service for the development. He added that the Commission heard this item at their December 7, 2022, meeting and as a result their motion (approved 6-1) included two conditions of approval as follows: 1) The development shall be limited to no more than 55 lots, and 2) The minimum building setback for lots abutting the Grand Island Estates, Parcel D development, also known as Monacello Estates, shall be 20 feet. Mr. Still said it is a straight-forward application and they have details of the lots with small adjustments made based on setbacks and lot lines. He said they also have no concerns and accept the two conditions as approved by the Commission. Mayor Sheehy opened the public hearing. Mr. Nelson addressed the council and spoke on the use path on the property that connects to the walking path around the Island. Mr. Morris clarified that a part of the use path is located on the subject property and the upper portion of the use path is on the property that has been withdrawn. Mr. Nelson stated that he would like to see the applicant dedicate those portions of the path to the city. Mr. Still said a portion of the path is over private property as the original master plan called for a 10-foot access easement and overall 20-foot PUE. He reviewed the setbacks and easements and said they intend to work with the city to dedicate the use path. Mr. Morris clarified that the narrowest portion of the two properties are just over 20-feet wide and shown as a PUE and access easement. Ms. Young addressed the council and expressed her concerns regarding the need for a second bridge. She said she agrees with wanting less density and stated that R-E is supposed to have 15,000-square foot minimum lots and the applicant is asking for a Lake Havasu City Page 24 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 reduction to 10,000-square foot minimum lots so they can build and sell more homes. She asked why the city would allow them to have more density than the R-E currently allows, as 15,000-square foot lots would provide less density than 10,000-square foot lots. Mr. Morris said through the Planned Development process an applicant can ask for reductions or exceptions from the underlying development standards for a specific zoning category, in this case R-E, they are asking for smaller lot sizes and smaller setbacks. He said the proposed subdivision is not dissimilar to other subdivisions in Grand Island Estates that have various setbacks. He added that the proposed rezone is in keeping with what the city sees in Grand Island Estates. There being no further comments, Mayor Sheehy closed the public hearing. Vice Mayor Lane move to adopt Ordinance No. 23-1301 for Land Use Action No. 22-3586 for a Planned Development Rezone for 340, 380, & 390 Beachcomber Boulevard, Grand Island Estates, Parcel A, and portions of Parcels B, C-1, and C-2, removing the property from the original Mixed Use Neighborhood/Planned Development District (MU-N/PD), and establishing a new Residential Estates/Planned Development District (R-E/PD), allowing the following exceptions: minimum lot area reduced from 15,000 square feet to 10,000 square feet, side setbacks reduced from 10 feet to 5 feet, and rear yard setback reduced from 20 feet to 15 feet, with the following conditions: 1. The development shall be limited to no more than 55 lots, and 2. The minimum building setback for lots abutting the Grand Island Estates, Parcel D development, also known as Monacello Estates, shall be 20 feet. Motion seconded by Councilmember Dolan, and carried by the following vote: Aye: 6 - Mayor Sheehy, Councilmember Campbell, Councilmember Moses, Councilmember Coke, Vice Mayor Lane and Councilmember Dolan Nay: 1 - Councilmember Lin 8.8 ID 23-3587 Adopt Ordinance No. 23-1302 Approving a Planned Development Rezone for 350 Beachcomber Boulevard, Grand Island Estates, Portions of Parcels B, C-1, and C-2, Removing the Property from the original Mixed Use Neighborhood/Planned Development District (MU-N/PD), and Establishing a New Multiple-Family/Planned Development District (R-M/PD), Reducing the Maximum Density from 20 Units Per Acre to 8 Units Per Acre, and the Minimum Density from 10 Units Per Acre to 4 Units Per Acre (Luke Morris) Mayor Sheehy advised that Item 8.8 has been pulled from the agenda. Lake Havasu City Page 25 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 8.9 ID 23-3593 Approve the Cooperative Purchase of Fourteen (14) Complete Sets of Structural/Extrication Personal Protection Equipment (PPE) from Matlick Enterprises dba United Fire Equipment Company (Chief Pilafas) Chief Pilafas advised that the item before the council is to approve a cooperative agreement for the purchase of 14 complete sets of Personal Protection Equipment (PPE) in the amount of $52,060.96. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Dolan moved to approve the cooperative purchase of fourteen (14) complete sets of Structural/Extrication PPE from Matlick Enterprises dba United Fire Equipment Company in the amount of $52,060.96, and authorize the City Manager to execute additional renewal options, seconded by Councilmember Moses, and carried by the following vote: Aye: 7 - Mayor Sheehy, Councilmember Campbell, Councilmember Lin, Councilmember Moses, Councilmember Coke, Vice Mayor Lane and Councilmember Dolan 8.10 ID 23-3592 Adopt Resolution No. 23-3634 Approving an Intergovernmental Agreement with the Arizona Department of Transportation to Design and Construct a Traffic Signal on McCulloch Boulevard and Jamaica Boulevard Intersection, Flash Beacons and ADA Modifications at Acoma Boulevard Crosswalks at Clubhouse Drive and Wood Lane, and Speed Feedback Signs (J. Greg Froslie) Public Works Director Greg Froslie advised that this item is to approve an Intergovernmental Agreement (IGA) with the Arizona Department of Transportation (ADOT) to design and construct a traffic signal at the McCulloch Boulevard and Jamaica Boulevard intersection. Mr. Froslie added that the IGA will allow for improvements to pedestrian crosswalks on Acoma Boulevard to bring up to current Americans with Disabilities Act (ADA) standards, as well as speed feedback signs in the same area and in the McCulloch Boulevard and El Dorado Avenue area. He stated that these items are safety improvement projects that were submitted through the Lake Havasu Metropolitan Planning Organization (LHMPO) to receive funding. There was discussion regarding costs to the city, to which Mr. Froslie said there is language in the IGA that makes the city responsible for cost overruns; therefore, if the project comes in overbudget the city has the ability to reduce the scope to keep the project within state funding. Mayor Sheehy opened the public hearing. Lake Havasu City Page 26 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 Mr. Robert Donofrio, citizen, addressed the council and recommended the use of solar powered stop signs on both sides of the road as opposed to installing a traffic light as it would reduce costs and allow for more signs throughout the city. Mayor Sheehy said the city looks at various traffic management systems and said this intersection allows for this type of infrastructure. He added that the city is looking at a lot of traffic safety enhancements throughout the community. Mr. Froslie added that the McCulloch Boulevard and Jamaica Boulevard intersection currently has stop signs and this would be an improvement because of safety issues. There being no further comments, Mayor Sheehy closed the public hearing. Vice Mayor Lane asked if the traffic light would incorporate the same technology as the flashing yellow light intersections on Lake Havasu Avenue, to which Mr. Froslie said the city would be working with the ADOT designer on the programming. Councilmember Campbell added that this light should also assist with the El Dorado Avenue and Bermuda Avenue cross streets. Councilmember Moses moved to adopt Resolution No. 23-3634 approving the Intergovernmental Agreement with the Arizona Department of Transportation to design and construct a traffic signal at McCulloch Boulevard and Jamaica Boulevard Intersection, flash beacons and ADA modifications at Acoma Boulevard Crosswalks at Clubhouse Drive and Wood Lane, and speed feedback signs, seconded by Vice Mayor Lane, and carried by the following vote: Aye: 7 - Mayor Sheehy, Councilmember Campbell, Councilmember Lin, Councilmember Moses, Councilmember Coke, Vice Mayor Lane and Councilmember Dolan 8.11 ID 23-3617 Adopt Resolution No. 23-3631 Approving a Grant Agreement with Arizona Department of Transportation, through its Multimodal Planning Division, for the Purpose of Aiding in Financing the Runway 14/32 Rehabilitation Project and Authorizing All Actions Necessary to Implement the Grant (Damon Anderson) Airport Manager Damon Anderson addressed the council and advised that this item is to adopt a resolution to approve a grant agreement with the Arizona Department of Transportation (Multimodal division) to finance the runway rehabilitation project. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Coke moved to adopt Resolution No. 23-3631 approving a grant agreement with Arizona Department of Transportation, through its Multimodal Lake Havasu City Page 27 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 Planning Division, for the purpose of aiding in financing the Runway 14/32 Rehabilitation Project; and authorize the City Manager to execute all subsequent agreements, deliver all documents necessary to carry out the terms and intent of the grant, and take all steps necessary to implement and complete the activities funded and required by the grant, subject to necessary review and approval by the City Attorney, seconded by Councilmember Campbell, and carried by the following vote: Aye: 7 - Mayor Sheehy, Councilmember Campbell, Councilmember Lin, Councilmember Moses, Councilmember Coke, Vice Mayor Lane and Councilmember Dolan 8.12 ID 23-3606 Award Task Order No. 3 to the Master Services Agreement to C&S Companies for Construction Management Services for the Airport Runway Strengthening and Overlay Project (Jarod Thiele) Project Manager Jarod Thiele advised that this item is to award an agreement for construction management services for the Airport Runway Strengthening and Overlay Project. Mr. Thiele outlined the following in his presentation: Background • Existing runway was constructed in 1991 • Runway extension & overlay was constructed in 1999 • 2” rubberized asphalt overlay placed in 2012 • Existing pavement is distressed and experiencing raveling and cracking • Geotechnical evaluation was performed and consisted of 17 boring locations • Recommendation by the design engineer to remove and replace full depth asphalt • City Council awarded a contract to Sunland Asphalt in the amount of $5,880,000 on August 23, 2022 • 60 Day Construction Contract • 45 Day Runway Closure starting May 1, 2023 He displayed pictures of the existing pavement conditions. Construction Management • A Scope of Work and Fee Proposal was requested from C&S Companies to assist the City’s Project Manager which includes the following services: o Pre-Construction Meeting, Weekly Progress Meetings o Review of Alternate Construction Methods o Review of Pay Requests o Daily Inspection o Materials and Compaction Testing Lake Havasu City Page 28 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 o Payroll Compliance Reporting required by the FAA and ADOT o Issue Certificates of Completion to the FAA and ADOT Recommendation Action • Staff is recommending the Award of an Agreement in the amount of $192,550 for these Professional Services as Task Order No. 3 to the existing Master Professional Services Agreement with C&S Companies Councilmember Campbell recused herself from participating and voting on this item. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Dolan moved to approve Task Order No. 3 for Professional Services with C&S Companies, Inc. for Construction Management and Administration Services for the Runway Strengthening and Overlay Project, seconded by Councilmember Lin, and carried by the following vote: Aye: 6 - Mayor Sheehy, Councilmember Lin, Councilmember Moses, Councilmember Coke, Vice Mayor Lane and Councilmember Dolan Recused: 1 - Councilmember Campbell 8.13 ID 23-3598 Award Agreement for Professional Services to Selberg Associates, Inc., for the Preparation of a Work Plan and Bid Documents for the Lake Havasu Police Department Remodel Project (Jarod Thiele) Mr. Thiele advised that this item is to award agreement for professional services for the Lake Havasu Police Department Remodel Project. He outlined the following in his presentation: Background • On February 9, 2021, an Agreement was entered into with Selberg & Associates to conduct a Building Assessment of the Police Department Facility including the following areas: o Scoping the sewer lines for blockages, damage, corrosion and rust o Evaluation of the HVAC System o Inspection of the interior building walls, ceilings, restrooms and Jail Facility o Inspection of the entire roof He displayed pictures of the existing conditions in need of repair. Recommendation Report Lake Havasu City Page 29 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 • Selberg & Associates provided a Recommendation Report to the City in May of 2021 which highlighted the following: o An immediate need to replace the HVAC System o Replacement of the interior sewer lines o Roof repairs or replacement o Interior finish repairs (cabinets, countertops, tile, ceiling) o Floor covering replacement o Upgrade to LED lighting o Repair of wall cracks o Replacement or repair of jail doors o Plumbing fixture replacement o Fire sprinkler and fire alarm replacement • The report identified approximately $4M worth of work to improve the facility Recommendation Implementation Plan • Staff requested a Scope of Work from Selberg & Associates to prepare construction drawings for this work to include: o Initial project kick-off meeting with City staff to prioritize repairs based on budget o Design of preferred improvements o Bid documents o Work-plan for construction sequencing o Bid Phase Services o Cost estimating o Construction Administration Schedule • Begin Design January 2023 • Receive Bid Documents May 2023 • Open Bids July 2023 • Construction August 2023 – June 2024 Funding • General Fund - $447,875 • Congressional District Grant - $1,778,000 • Additional Grants and other funding sources are being sought to support the construction costs Recommendation • Staff is recommending to award a professional services agreement to Selberg & Associates in the amount of $261,550 for this work. Lake Havasu City Page 30 Printed on 1/26/2023 City Council Minutes - Final January 10, 2023 Mayor Sheehy expressed his appreciation to Senator Kelley for using his discretionary spending in Lake Havasu City for the Police Department. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Vice Mayor Lane moved to award the Agreement for Professional Services for the Police Department Remodel Project to Selberg Associates, Inc. in the amount of $261,550, seconded by Councilmember Coke, and carried by the following vote: Aye: 7 - Mayor Sheehy, Councilmember Campbell, Councilmember Lin, Councilmember Moses, Councilmember Coke, Vice Mayor Lane and Councilmember Dolan 9. CURRENT EVENTS There were no council committee reports. 10. FUTURE MEETINGS Tuesday, January 24, 2023 @ 6:00 p.m. – Regular Meeting Wednesday, February 1, 2023 @ 8:30 a.m. – City Council Planning Session 11. FUTURE DISCUSSION ITEMS There were no requests from council for future discussion items. 12. ADJOURN Upon motion by Vice Mayor Lane and seconded, the meeting adjourned at 9:40 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 10th day of January, 2023. 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 31 Printed on 1/26/2023