City Council

Mayor Cal Sheehy Lake Havasu City Vice Mayor David Lane Police Facility Councilmember Nancy Campbell 2360 McCulloch Blvd North Councilmember Jeni Coke Lake Havasu City, Arizona 86403 Councilmember Jim Dolan www.lhcaz.gov Councilmember Michele Lin Councilmember Cameron Moses City Council Regular Meeting (Final Budget Adoption) Minutes - Final Tuesday, June 27, 2023 5:30 PM 1. CALL TO ORDER Mayor Sheehy called the meeting to order at 5:30 p.m. 2. INVOCATION: Pastor Paul Rusin, Redemption Hill Calvary Chapel Pastor Paul Rusin, Redemption Hill Calvary Chapel, gave the invocation. 3. PLEDGE OF ALLEGIANCE: Go Lake Havasu Members from Havasu Heat Baseball led in the Pledge of Allegiance. 4. ROLL CALL Present: 6- Mayor Cal Sheehy, Councilmember Nancy Campbell, Councilmember Cameron Moses, Councilmember Jeni Coke, Vice Mayor David Lane and Councilmember Jim Dolan Absent: 1- Councilmember Michele Lin *Councilmembers Jeni Coke and Cameron Moses were present via remote conferencing. 5. CONSENT AGENDA 5.1 ID 23-3838 Approve the June 1, 2023, City Council Special Meeting Minutes, and June 13, 2023, City Council Regular Meeting Minutes (Kelly Williams) 5.2 ID 23-3831 Adopt Resolution No. 23-3680 Approving Amendment No. 1 to Intergovernmental Agreement with Arizona State Parks & Trails for Water and Wastewater Laboratory Services to Update Points of Contact (Kelly Garry) 5.3 ID 23-3810 Approve Professional Services Contract with Pivotal Policy Consulting for Arizona Government Relations Consultant/Lobbyist Services (Anthony Kozlowski) 5.4 ID 23-3837 Ratify a Price Increase Greater than Five (5) Percent of the Original Purchase Price of a 2023 VX50 Vactor Trailer and Tank (Greg Froslie) 5.5 ID 23-3839 Call for Executive Session Pursuant to A.R.S.§ 38-431.03(A) 4:30 p.m., Tuesday, July 11, 2023 (Kelly Williams) Lake Havasu City Page 1 Printed on 7/12/2023 City Council Minutes - Final June 27, 2023 Vice Mayor Lane moved to approve the Consent Agenda as presented, seconded by Councilmember Campbell, and carried by the following vote: Aye: 6 - Mayor Sheehy, Councilmember Campbell, Councilmember Moses, Councilmember Coke, Vice Mayor Lane and Councilmember Dolan Absent: 1 - Councilmember Lin 6. CORRESPONDENCE, COMMUNICATIONS, PETITIONS, ANNOUNCEMENTS, CITY MANAGER REPORT 6.1 ID 23-3840 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. 6.2 ID 23-3841 City Manager’s Report (Jess Knudson) City Manager Jess Knudson reported on the following: • Announced various events, ceremonies, and proclamations. • City offices will be closed on Tuesday, July 4, 2023, in observance of the Independence Day holiday. 7. PUBLIC HEARINGS 7.1 ID 23-3805 Series #7 Beer and Wine Bar Liquor License, Havasu Riviera Marina, 2067 Havasu Riviera Parkway/Lewkowitz (Kelly Williams) Ms. Williams advised that Ms. Andrea Lewkowitz has applied for a Series #7 Beer and Wine Bar Liquor License for Havasu Riviera Marina located at 2067 Havasu Riviera Parkway. 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. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Campbell moved to recommend that the Arizona Department of Liquor Licenses & Control approve a Series #7 beer and wine bar liquor license for Havasu Riviera Marina, 2067 Havasu Riviera Parkway, 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 Lake Havasu City Page 2 Printed on 7/12/2023 City Council Minutes - Final June 27, 2023 Absent: 1 - Councilmember Lin 7.2 ID 23-3843 Adopt Resolution No. 23-3682 Appointing Member(s) to the Lake Havasu City Board of Adjustment (Kelly Williams) Ms. Williams advised that the city received one application requesting consideration for appointment as a regular member to the Board of Adjustment. She said appointments are needed to fill the upcoming and current vacancies of three regular and two alternate member positions. Ms. Williams said the Application Review Panel conducted interviews for the Board of Adjustment on June 6, 2023, and recommends that Robin Hill be re-appointed as a regular member to the Board of Adjustment with a term ending June 30, 2026. The following applicant was in attendance and gave a brief introduction to the City Council: • Ms. Robin Hill Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Vice Mayor Lane moved to adopt Resolution No. 23-3682 appointing Robin Hill as a regular member to the Lake Havasu City Board of Adjustment with a term ending June 30, 2026, 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 Absent: 1 - Councilmember Lin 7.3 ID 23-3844 Adopt Resolution No. 23-3683 Appointing Member(s) to the Lake Havasu City Parks & Recreation Advisory Board (Kelly Williams) Ms. Williams advised that the city received two applications requesting consideration for appointment as a regular member to the Parks and Recreation Advisory Board. She said appointments are needed to fill the vacancy of two regular member positions. Ms. Williams stated that the Application Review Panel conducted interviews on June 8, 2023, and recommends that Mercedes Kaiser and Jason Mitchell be appointed as regular members with terms ending June 30, 2026. The following applicants were in attendance and gave a brief introduction to the City Council: • Ms. Mercedes Kaiser • Mr. Jason Mitchell Lake Havasu City Page 3 Printed on 7/12/2023 City Council Minutes - Final June 27, 2023 Mayor Sheehy opened the public hearing. Mr. Jeffrey Callen, citizen, addressed the council and asked if residents could run for office if they lived outside Lake Havasu City limits, to which Mayor Sheehy replied no. There being no further comments, Mayor Sheehy closed the public hearing. Vice Mayor Lane moved to adopt Resolution No. 23-3683 appointing Mercedes Kaiser and Jason Mitchell as regular member(s) to the Lake Havasu City Parks & Recreation Advisory Board with terms ending June 30, 2026, seconded by Councilmember Campbell, and carried by the following vote: Aye: 6 - Mayor Sheehy, Councilmember Campbell, Councilmember Moses, Councilmember Coke, Vice Mayor Lane and Councilmember Dolan Absent: 1 - Councilmember Lin 7.4 ID 23-3845 Adopt Resolution No. 23-3684 Appointing Member(s) to the Lake Havasu City Planning & Zoning Commission (Kelly Williams) Ms. Williams advised that the city received six applications requesting consideration for appointment as a regular and/or alternate member to the Planning and Zoning Commission. She said appointments are needed to fill one regular and one alternate member vacancy. She said the Application Review Panel conducted interviews on June 6, 2023, and recommends that Suzannah Ballard be re-appointed as a regular member with a term ending June 30, 2026, and JP Thornton be appointed as an alternate member with a term ending June 30, 2025. The following applicants were in attendance and gave a brief introduction to the City Council: • Ms. Suzannah Ballard • Mr. JP Thornton Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Dolan moved to adopt Resolution No. 23-3684 appointing Suzannah Ballard as regular member with a term ending June 30, 2026, and JP Thornton as an alternate member with a term ending June 30, 2025, to the Lake Havasu City Planning & Zoning Commission, seconded by Vice Mayor Lane, and carried by the following vote: Lake Havasu City Page 4 Printed on 7/12/2023 City Council Minutes - Final June 27, 2023 Aye: 6 - Mayor Sheehy, Councilmember Campbell, Councilmember Moses, Councilmember Coke, Vice Mayor Lane and Councilmember Dolan Absent: 1 - Councilmember Lin 7.5 ID 23-3846 Adopt Resolution No. 23-3685 Appointing a Member to the Public Safety Personnel Retirement System Local Police and Fire Boards (Kelly Williams) Ms. Williams advised that the city received one application requesting consideration for appointment to the Public Safety Personnel Retirement System Local Police and Fire Boards to fill an upcoming vacancy of a regular member position. She said the Application Review Panel conducted interviews on June 21, 2023, and recommends that John Nuss be appointed as a regular member with a term ending June 30, 2027. The following applicant was in attendance and gave a brief introduction to the City Council: • Mr. John Nuss Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Dolan moved to adopt Resolution 23-3685 appointing John Nuss to the Public Safety Personnel Retirement System Local Police and Fire Boards with a term to expire on June 30, 2027, seconded by Councilmember Campbell, and carried by the following vote: Aye: 6 - Mayor Sheehy, Councilmember Campbell, Councilmember Moses, Councilmember Coke, Vice Mayor Lane and Councilmember Dolan Absent: 1 - Councilmember Lin 7.6 ID 23-3853 Adopt Resolution No. 23-3686 Amending Resolution No. 22-3593 Transferring Budget Appropriations from One Fund, Department, or Division to Another for Fiscal Year 2022-23 (Jill Olsen) Administrative Services Director Jill Olsen advised that staff is requesting an amendment to transfer budget appropriations from one fund, department, or division to another for the current Fiscal Year 2022-23. She said approximately $41,000 from Non-Governmental Department in the General Fund was transferred to the Refuse Fund to cover a $41,000 shortfall due to credit card fees, bad debt, and outside services. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Lake Havasu City Page 5 Printed on 7/12/2023 City Council Minutes - Final June 27, 2023 Councilmember Dolan moved to adopt Resolution No. 23-3686 approving the budget amendments listed on the amended Schedules E and F for Fiscal Year 2022-23, seconded by Vice Mayor Lane, and carried by the following vote: Aye: 6 - Mayor Sheehy, Councilmember Campbell, Councilmember Moses, Councilmember Coke, Vice Mayor Lane and Councilmember Dolan Absent: 1 - Councilmember Lin 7.7 ID 23-3849 Truth in Taxation Hearing and Public Hearing on the Proposed Fiscal Year 2023-24 Property Tax Levy (Jill Olsen) Ms. Olsen advised that this item is the hearing that the city conducts each year related to an increase in property tax revenue. She noted that the city property tax rate is not changing for Fiscal Year (FY) 2023-24; however, the increase in assessed valuation for properties within the city limits will generate additional tax revenues (approximately $375,000) with a portion of that due to new construction. She said the property taxes collected by the city help fund services such as police, fire, and parks, and only 6.7 cents of every dollar paid by Lake Havasu City property owners is collected by the city. Ms. Olsen reviewed the levy rates, assessed values, and levy amounts for FY 2022-23 and FY 2023-24 as follows: • Levy Rate o $0.6718 per $100 assessed value (FY 2022-23) o $0.6718 per $100 assessed value (FY 2023-24) • Assessed Value o 892,489,091 (FY 2022-23) o 945,969,724 (FY 2023-24) • Levy $ Amount o $5,995,742 (FY 2022-23) o $6,355,025 (FY 2023-24) Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Dolan moved to approve the levy of the proposed Fiscal Year 2023-24 Property Tax and to assess the levy at the July 11, 2023, City Council meeting, seconded by Vice Mayor Lane, and carried by the following vote: Aye: 6 - Mayor Sheehy, Councilmember Campbell, Councilmember Moses, Councilmember Coke, Vice Mayor Lane and Councilmember Dolan Absent: 1 - Councilmember Lin Lake Havasu City Page 6 Printed on 7/12/2023 City Council Minutes - Final June 27, 2023 7.8 ID 23-3851 Adjourn to Special Meeting The meeting adjourned to Special Meeting at 6:04 p.m. 7.9 ID 23-3850 Adopt Resolution No. 23-3687 Adopting the Fiscal Year 2023-24 Final Budget (Jill Olsen) Ms. Olsen stated that the resolution before the council is to adopt the Fiscal Year 2023-24 final budget and reviewed the budget process, development, and timeline as follows: • Budget Development o 10-Month Timeline Governed by Policy  CIP Starts in September/October  Operating Starts in December  Council Retreat in February 2023 Highlighted Trends  Review of Departments’ Budget w/City Manager  April 13 and May 11 Council Review of CIP and Operating  June 13: Adoption of CIP and Tentative Budget  June 27: Adoption of Final Budget and Property Tax Hearing  July 11: Adopt Property Tax Levy Ms. Olsen stated that the tentative budget was published in the newspaper on June 20th and 27th as required by law and noted that the council may change or reduce the amount of the final budget but cannot increase the amount. She added that there have been no additional changes to the budget since the tentative budget adoption on June 13, 2023, and staff is proposing adoption of the Fiscal Year 2023-24 budget in the amount of $228,632,955. Ms. Olsen added that the City Council will meet on July 11, 2023, for the purpose of adopting the tax levy rates for City Property Tax and Special Districts. She said the property tax rates for Fiscal Year 2023-24 are proposed as follows: • City Property Tax o $0.6718 per $100 Assessed Value (Levy Rate) o $6,335,025 (Levy Amount) • Improvement District #2 (London Bridge Plaza) o $0.7370 per $100 Assessed Value (Levy Rate) o $16,865 (Levy Amount) Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Lake Havasu City Page 7 Printed on 7/12/2023 City Council Minutes - Final June 27, 2023 Discussion ensued relative to the budget, Five-Year CIP, and grant appropriations. Vice Mayor Lane moved to adopt Resolution No. 23-3687 adopting the Fiscal Year 2023-24 Budget in the amount of $228,632,955, 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: 1 - Councilmember Campbell Absent: 1 - Councilmember Lin 7.10 ID 23-3852 Reconvene to Regular Meeting The Council reconvened to Regular Meeting at 6:15 p.m. 7.11 ID 23-3835 Approve Services Agreement with H.A.V.E.N. Family Resource Center, Inc., for Domestic Violence Response / Victim Assistance for Fiscal Years 2023-24 and 2024-25 (Chief Stirling) Police Chief Troy Stirling advised that this item is requesting approval of a services agreement with H.A.V.E.N. Family Resource Center, Inc., to provide domestic violence response and victim assistance for Fiscal Years 2023-24 and 2024-25. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Dolan moved to approve the Services Agreement with H.A.V.E.N. Family Resource Center, Inc., for Domestic Violence Response / Victim Assistance for Fiscal Years 2023-24 and 2024-25, and authorize the City Manager to execute the Agreement on behalf of the City, seconded by Vice Mayor Lane, and carried by the following vote: Aye: 6 - Mayor Sheehy, Councilmember Campbell, Councilmember Moses, Councilmember Coke, Vice Mayor Lane and Councilmember Dolan Absent: 1 - Councilmember Lin 7.12 ID 23-3848 Approve Statement of Work with Camptra Technologies LLC for Oracle Cloud Software Support for Human Capital Management, Enterprise Resource Planning, Projects, Budget Planning, and Financial Reporting Modules for Fiscal Year 2023-24 (Trinna Ware) Finance Division Manager Trinna Ware advised that this item is requesting approval of a statement of work with Camptra Technologies LLC to receive technical assistance for Oracle Cloud Software Support for Fiscal Year 2023-24 in the amount of $242,520. Lake Havasu City Page 8 Printed on 7/12/2023 City Council Minutes - Final June 27, 2023 Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Dolan moved to approve the Statement of Work with Camptra Technologies LLC for $242,520 for Fiscal Year 2023-24 and authorize the City Manager to sign the Statement of Work, seconded by Vice Mayor Lane, and carried by the following vote: Aye: 6 - Mayor Sheehy, Councilmember Campbell, Councilmember Moses, Councilmember Coke, Vice Mayor Lane and Councilmember Dolan Absent: 1 - Councilmember Lin 7.13 ID 23-3820 Adopt Resolution No. 23-3681 Approving a Minor Text Amendment to the Lake Havasu City General Plan to Align the City’s Procedure for General Plan Amendments with Arizona Revised Statutes Related to Timing and Hearing Date Requirements for Major Amendments (Trevor Kearns) City Planner Trevor Kearns advised that this is the first of two housekeeping items to ensure that the city’s General Plan language aligns with Arizona Revised Statutes (A.R.S.) for major General Plan Amendments. Mr. Kearns explained that prior to 2022, A.R.S. only allowed municipalities to accept major General Plan Amendments between January 1st and February 15th of each calendar year and processed by October 1st in the same year as filed. He said House Bill 2482 amended A.R.S. allowing major General Plan Amendments to be submitted anytime during the year and presented at a public hearing within 12 months of filing. Mayor Sheehy opened the public hearing. Ms. Bonnie Toy, citizen, addressed the council and asked why general plan amendments must be done during a specific time. Mayor Sheehy spoke on the city’s General Plan adopted in 2016 and the process for major General Plan Amendments. There being no further comments, Mayor Sheehy closed the public hearing. Councilmember Dolan moved to adopt Resolution No. 23-3681 approving a minor text amendment to the Lake Havasu City General Plan, to align the City’s procedure for General Plan amendments with Arizona Revised Statutes related to timing and hearing date requirements for major amendments, seconded by Councilmember Moses, and carried by the following vote: Lake Havasu City Page 9 Printed on 7/12/2023 City Council Minutes - Final June 27, 2023 Aye: 6 - Mayor Sheehy, Councilmember Campbell, Councilmember Moses, Councilmember Coke, Vice Mayor Lane and Councilmember Dolan Absent: 1 - Councilmember Lin 7.14 ID 23-3822 Adopt Ordinance No. 23-1311 Amending City Code Title 14, Zoning (Development Code), Section 14.05.04(M), General Plan Amendment, to Align the City’s Procedure for General Plan Amendments with Arizona Revised Statutes Related to Timing and Hearing Date Requirements for Major Amendments (Trevor Kearns) Mr. Kearns said this the second of two housekeeping items to ensure that the city’s Development Code language in the City Code aligns with State Statutes for major General Plan Amendments. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Campbell moved to adopt Ordinance No. 23-1311 amending City Code Title 14, Zoning (Development Code), Section 14.05.04(M), General Plan Amendment, to align the City’s procedure for General Plan Amendments with Arizona Revised Statutes related to timing and hearing date requirements for major amendments, seconded by Vice Mayor Lane, and carried by the following vote: Aye: 6 - Mayor Sheehy, Councilmember Campbell, Councilmember Moses, Councilmember Coke, Vice Mayor Lane and Councilmember Dolan Absent: 1 - Councilmember Lin 7.15 ID 23-3714 Approve Amendment No. 1 to the Engineering Professional Services Agreement for the City Fueling Facilities Improvement Project with Jacobs Engineering Group, Inc. (Jason Hart) Public Works Director Greg Froslie said the city currently has two fuel facilities, located at the Lake Havasu City Municipal Airport and Police Department, with underground storage tanks that due to the age of the tanks and insurance requirements must be removed. Mr. Froslie said with the removal of these two tanks, this item is requesting approval of an amendment to the professional services agreement for the City Fueling Facilities Improvement Project with Jacobs Engineering Group, Inc. Mr. Froslie said the project will include the design and construction administration of a new fuel facility at the Public Works Maintenance Facility (London Bridge Road) and between the Police Department Facility and Fire Station No. 1 (Inlet Drive). He said the project is anticipated to take eight months (completion in February 2024) and displayed aerial photographs of the proposed locations and layouts of the fuel facilities. He said if approved, the city Lake Havasu City Page 10 Printed on 7/12/2023 City Council Minutes - Final June 27, 2023 would likely use the Mohave County Bulk Fuel Contract to purchase fuel in bulk. He said last year the city spent approximately $900,000 for fuel (144,000 gallons of unleaded fuel and 61,000 gallons of diesel fuel). He said when applying the contract price for bulk fuel purchases through the Mohave County Cooperative Contract, compared to what the city has been paying, staff calculated a savings of approximately $400,000 or 47 percent, and with this, staff has calculated an eight-year return on investment based on the estimated savings and staff’s preliminary cost estimate for the project ($3.2 million). Mr. Froslie noted that the Mohave County Bulk Fuel Contract used in the analysis has since expired and a new contract has been opened for the next five years; however, staff has not had a chance to analyze the new contract but anticipates the cost per gallon to be slightly higher due to inflation. He said some benefits of this project including a secure location for officers to fuel vehicles, back up generators at both facilities, emergency fuel supply, and integration with new vehicle maintenance software. Mayor Sheehy asked how city vehicles are currently fueling, to which Mr. Froslie explained that the city is currently using gas cards for fueling at local gas stations paying the rate at the pumps. He said the city previously had a contract with Parker Oil that has since expired, and the Police Department purchased their last bulk tank order in anticipation of this project. Mayor Sheehy opened the public hearing. Mr. Don Wisdom, citizen, addressed the council and suggested the city look at installing charging stations for electric vehicles in the future. Mr. Froslie said the city does not own any electric charging stations; however, it is something that staff is looking into and would be a separate endeavor when the need arises. Ms. Toy addressed the council and asked if this project would result in city vehicles not purchasing fuel from the local economy. Mayor Sheehy said the Police Department has been buying fuel in bulk for the police vehicles until the underground tank was decommissioned. He said the other city vehicles have been purchasing fuel locally; however, as Mr. Froslie reported, the cost savings of this project and being able to buy fuel in bulk for all city vehicles will be realized by the taxpayers. There being no further comments, Mayor Sheehy closed the public hearing. There was discussion regarding the bulk fuel costs. Mr. Froslie said the prices listed on Lake Havasu City Page 11 Printed on 7/12/2023 City Council Minutes - Final June 27, 2023 the cooperative contract are fixed; however, there is some fluctuation based on delivery costs. Councilmember Dolan moved to approve Amendment No. 1 to the Engineering Professional Services Agreement for the City Fueling Facilities Improvement Project with Jacobs Engineering Group, Inc. in the amount of $259,515, seconded by Vice Mayor Lane, and carried by the following vote: Aye: 6 - Mayor Sheehy, Councilmember Campbell, Councilmember Moses, Councilmember Coke, Vice Mayor Lane and Councilmember Dolan Absent: 1 - Councilmember Lin 8. CALL TO THE PUBLIC Ms. Toy addressed the council concerning the traffic at the intersection of McCulloch Boulevard and Smoketree Avenue. 9. CURRENT EVENTS Vice Mayor Lane provided an update from the Parks and Recreation Advisory Board and Go Lake Havasu Board meetings. Councilmember Campbell reported on the Rural Transportation Advocacy Council (RTAC) and Lake Havasu Chamber of Commerce. 10. FUTURE MEETINGS Tuesday, July 11, 2023 @ 5:30 p.m. – Regular Meeting (Property Tax Levy Adoption) Tuesday, July 25, 2023 @ 5:30 p.m. – Regular Meeting 11. FUTURE DISCUSSION ITEMS There were no requests from the council for future discussion items. 12. ADJOURN Upon motion by Vice Mayor Lane and seconded, the meeting adjourned at 6:50 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 27th day of June, 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 12 Printed on 7/12/2023