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, April 25, 2023 5:30 PM 1. CALL TO ORDER Mayor Sheehy called the meeting to order at 5:30 p.m. 2. INVOCATION: Pastor Ray Carter, Redemption Hill Calvary Chapel Pastor Paul Rusin, Redemption Hill Calvary Chapel, gave the invocation. 3. PLEDGE OF ALLEGIANCE: Quilts of Valor Members from Quilts of Valor 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. CONSENT AGENDA 5.1 ID 23-3734 Approve the April 11, 2023, City Council Regular Meeting Minutes (Kelly Williams) 5.2 ID 23-3741 Approval of the Final Subdivision Plat for Hudson Subdivision for 2972 Amigo Drive, Tract 2240, Block 1, Parcel A, Creating 3 Residential Lots in the Single-Family Residential (R-1) District (Trevor Kearns) 5.3 ID 23-3735 Call for Executive Session Pursuant to A.R.S.§ 38-431.03(A) 4:30 p.m., Tuesday, May 9, 2023 (Kelly Williams) Councilmember Coke moved to approve the Consent Agenda as presented, 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 Lake Havasu City Page 1 Printed on 5/10/2023 City Council Minutes - Final April 25, 2023 6. CORRESPONDENCE, COMMUNICATIONS, PETITIONS, ANNOUNCEMENTS, CITY MANAGER REPORT 6.1 ID 23-3736 Announce Vacancies on Lake Havasu City Boards, Committees, and Commissions (Kelly Williams) City Clerk Kelly Williams announced the current and upcoming vacancies on various Lake Havasu City Boards, Committees, and Commissions. She said applications are available at City Hall and on the City’s website at www.lhcaz.gov, and noted that the deadline to submit applications for consideration is Friday, May 26, 2023, by 5:00 p.m. 6.2 ID 23-3737 City Manager’s Report (Jess Knudson) City Manager Jess Knudson reported on the following: • Recognized Human Resources Director Bobbie Kimelton for being inducted into the President’s Honor Circle of VetSix. • Announced various ceremonies, events, and proclamations. • A Utility Rate Study Open House will be held on Monday, May 1, 2023, at 3:30 p.m. and 5:30 p.m. at the Lake Havasu City Police Facility. • Reported that the Lake Havasu Municipal Airport runway will be closed for all general aviation operations beginning May 1, 2023, to June 11, 2023, for the Runway Rehabilitation Project. • Project Updates: o Island Wastewater Treatment Plant Flow Equalization Basin (FEB) Replacement o 2022 Water Main Replacement on Lake Havasu Avenue North 7. PUBLIC HEARINGS 7.1 ID 23-3731 Award Bid to American Road Maintenance for Fiscal Year 2022-23 Airport Sealcoat Program (Bill Young) Transportation and Maintenance Superintendent Bill Young advised that this item is to award bid to American Road Maintenance for the Airport Sealcoat Program Fiscal Year 2022-23 in the amount of $80,000. Mr. Young said the bids includes the installation of upgraded emulsified fog seal material around the hangars and Taxiway Bravo at the same time as the runway closure to minimize additional disruption at the Airport. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Dolan moved to award the bid for the Fiscal Year 2022-23 Airport Hangar Sealcoat Program to American Road Maintenance in the amount of $80,000, seconded by Councilmember Moses, and carried by the following vote: Lake Havasu City Page 2 Printed on 5/10/2023 City Council Minutes - Final April 25, 2023 Aye: 7 - Mayor Sheehy, Councilmember Campbell, Councilmember Lin, Councilmember Moses, Councilmember Coke, Vice Mayor Lane and Councilmember Dolan 7.2 ID 23-3742 Discussion: General Overview of Hangars at the Airport ( Paul Blazer) Public Works Director Greg Froslie introduced Interim Airport Manager Paul Blazer to present an overview of the hangars at the Airport. Mr. Froslie noted that there is a significant demand for airport hangars and to meet that demand the city currently has a Request for Proposal (RFP) out that opens on Wednesday, April 26, 2023. He briefly reviewed the RFP process. Mr. Blazer outlined the following in his presentation: Ways to Park an Aircraft • Tiedown • Shadeport • Hangar What is a Hangar? • A hangar is a building or structure designed to hold an aircraft. • Hangars are built of metal, wood, or concrete, or a mix of materials, but typically are built of metal. What types of Hangars are available? • T-Hangar • Box Hangar • Executive Hangar Current Rental Rates – City-Owned & Privately-Owned Hangars • 26 City-Owned Hangars o Rentals range from $477 to $718 per month, depending on size • 52 FBO-Owned Hangars • 41 Privately-Owned Hangars Ground Leases • The Airport has 41 Privately-Owned hangars, which are charged a Ground lease. • The Ground lease monthly fee is 13 cents per sq. ft. • Sizes range from 1,200 to 1,600 sq. ft. What is the Average Cost to Build a Hangar? Lake Havasu City Page 3 Printed on 5/10/2023 City Council Minutes - Final April 25, 2023 • Privately-Owned Box Hangar – $150,000 to $250,000 • Executive Hangar - $500,000 to $750,000 • Relative construction costs are approximately $75 to $80 sq. ft. • Costs vary due to square footage, door type, and amenities Why are Hangars Needed? • The demand for Hangars at Lake Havasu Municipal Airport has grown, as the development of areas within the city brings new and added interest in Hangar leases and/or ownership. • The Airports waitlist contains 104 prospective individuals wanting a Hangar, 55 of the people on the waitlist would consider a Shadeport. • Per our recent Airport Master Plan, the Airport is currently home to over 172 based aircraft, from the small Cessna 172’s to a Gulfstream 650 Transatlantic Jet, and everything in between. What Can we do to Meet the Demand? • Request for Proposal o Proposals due April 26, 2023 o Available on city’s website, Demandstar, and Southwest Chapter of the American Association of Airport Executives o People on the waiting list were notified Mayor Sheehy turned the discussion over to Councilmember Dolan who requested a discussion item on airport hangars at the City Council Planning Session in February. Councilmember Dolan said as a pilot and also a council liaison on the Airport Advisory Board (AAB) there have been many discussions at the AAB meetings and Airport Talks concerning the overwhelming need for additional hangars at the Airport. Mayor Sheehy said the Lake Havasu Municipal Airport is a huge economic driver and spoke on the day-to-day operations at the Airport. He said there is a lack of hangar inventory and thinks it is important for the council to make a commitment for future development at the airport. Mayor Sheehy said that the city completed an Airport Master Plan approximately two years ago that is in line with the need for additional hangar development and other development avenues. Mayor Sheehy noted that the Airport is nearly funded by grants and yet the economic return that the community receives far outweighs any investment that the city makes at the Airport. There was discussion regarding the hangar wait list and types of hangars that are requested. Lake Havasu City Page 4 Printed on 5/10/2023 City Council Minutes - Final April 25, 2023 Mayor Sheehy said the current hangar rents would not provide a return on investment for someone wanting to build hangars and asked if there is an expectation that the rates would be different if hangars were to be built, to which Mr. Blazer said it would depend on the direction of the RFP and if the hangars were city funded or through a public-private entity. Mr. Knudson noted that the city is restricted by the Federal Aviation Administration (FAA) on leases and rates at the Airport. He said if you were to look at similar size airports, the rates at the city airport are at the top end of those lease rates and the square footage costs to build a hangar is well beyond the city’s typical ten-year timeframe for return on investment. There was discussion relative to the city’s annual hangar inspection process, and hangar rules and regulations. There was discussion regarding the RFP timeline, request, and outline. Councilmember Dolan said he believes the aviation community would like to see the RFP address additional hangars for all aircraft sizes, space for general aviation mechanics, space for a wash bay, and enough infrastructure built to develop the entire area. Councilmember Campbell suggested the council revisit the discussion on allowing helipads in industrial areas. Mayor Sheehy opened the public hearing. The following individuals spoke in support of additional hangars and aviation development at the Airport: • Mr. Lucas Carrillo, citizen • Mr. Andy Holthe, citizen • Ms. Frankie Lyons, citizen • Mr. Victor Vance, citizen • Mr. Dan Chain, citizen • Mr. Dante Marinelli, citizen • Mr. Dante Marinelli, Sr., citizen • Miss Ashley Holthe, citizen • Dr. Reese Mead, citizen • Mr. Jim Holliman, citizen There being no further comments, Mayor Sheehy closed the public hearing. Mayor Sheehy said he would like the council to stay focused on the issue of hangars, whether that is addressed through the pending RFP process or future discussions regarding Lake Havasu City Page 5 Printed on 5/10/2023 City Council Minutes - Final April 25, 2023 an investment from the city. He said he believes that there is a need for hangars from both an economic development standpoint as well as from general aviation users. There was discussion relative to the city’s RFP process. Mr. Knudson said it is vitally important that the proposal benefits the Airport and the users at the Airport. Councilmember Campbell said the proposed property would be difficult to develop and asked if the city considered a 50-year lease versus a 30-year lease that would provide for a better return on investment for potential developers, to which City Attorney Kelly Garry said under state statute a Fixed-Base Operator (FBO) lease allows for 50-years with an option to renew for an additional 50-years. She stated that all the hangar leases at the airport are month-to-month. Mayor Sheehy said through negotiations the lease could be increased to 50-years. Ms. Garry clarified that the state statute is not specific to FBOs but leases for aviation purposes at the airport. Councilmember Campbell asked if the RFP applicants were aware that the term of the lease could be increased to 50-years through negotiations, to which Mr. Froslie said through the RFP process there was a question from a potential proposer related to the longest term the city would consider for the ground lease. He said because all of the city’s existing ground leases are 30-years, the city’s response to the question was 30-years. Mr. Froslie added that he was not certain whether the term could be changed without extending the RFP due date and creating an addendum. Vice Mayor Lane said the council recognizes the need for additional hangars at the Airport and requested that this issue stay at the forefront of the council’s discussions. Councilmember Coke agreed with Vice Mayor Lane’s comments and added that citizens have contacted her regarding this issue for many years and is happy to hear from the public regarding their concerns and looked forward to continuing these conversations. Mayor Sheehy thanked everyone for their participation and said the council will continue to move this issue forward. 8. CALL TO THE PUBLIC Mr. Morgan Braden, citizen, addressed the council regarding the proposed design concept for the Downtown Catalyst Project. He said the design reduces the usable space for events and encouraged the council to look at the design again adding more grass space with a stage, bathrooms, and lights. Ms. Bonnie Toy, citizen, addressed the council concerning the multi-residential parking Lake Havasu City Page 6 Printed on 5/10/2023 City Council Minutes - Final April 25, 2023 issues that were discussed at the last Planning and Zoning Commission meeting. She said there are a lot of people in the community who complain about parking lots in Lake Havasu City and the issue is not just in residential areas but commercial areas as well. Ms. Lyons addressed the council and spoke concerning the property tax levy rates and services the city provides for Improvement District #2 (London Bridge Plaza). She said the services include water, sewer, electricity, landscaping, parking lot maintenance, and bathrooms, and added that the tax levy rates collected in this district are approximately $16,000 a year with no evidence of revenues collected for the use of the parking lot. She asked if the parking lot is city-owned or privately owned? Ms. Lyons said the city needs to find funding for other needs including ballfield improvements and lowering the rates at the Aquatic Center and encouraged citizens to attend the upcoming City Council budget meeting on May 11, 2023. 9. CURRENT EVENTS Councilmember Moses reported that the Nomadic Co-Workspace held an open house on April 21, 2023 and is currently at 40 percent capacity. 10. FUTURE MEETINGS Tuesday, May 9, 2023 @ 5:30 p.m. – Regular Meeting Thursday, May 11, 2023 @ 9:00 a.m. – Budget/CIP Work Session Tuesday, May 23, 2023 @ 5:30 p.m. – Regular Meeting 11. FUTURE DISCUSSION ITEMS There were no requests from Council for future discussion items. 12. ADJOURN Upon motion by Councilmember Lane and seconded, the meeting adjourned at 7:16 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 25th day of April, 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 7 Printed on 5/10/2023