Lake Havasu City Council Regular Meeting Police Facility, 2360 McCulloch Boulevard North, 6:00 P.M. CALL TO ORDER Mayor Mark Nexsen called the meeting to order at 6:00 p.m. INVOCATION: MINISTER CLAUDE BULGER, RETIRED, HAVASU CHRISTIAN CHURCH Retired Minister Claude Bulger of Havasu Christian Church gave the invocation. PLEDGE OF ALLEGIANCE The mayor led in the Pledge of Allegiance. ROLL CALL PRESENT: Councilmembers Mark Nexsen, Dean Barlow, Lee Barnes, Sonny Borelli, Don Callahan, David McAtlin, and Margaret Nyberg. CALL TO THE PUBLIC There were no requests to address the council. CONSENT AGENDA The following items will be considered as one item by the City Council and will be enacted with one motion with no separate discussion unless a councilmember so requests, in which event the item will be removed. a. Approval of March 15, 2011, CIP Work Session, March 22, 2011, Regular Meeting, and March 29, 2011, Special Meeting Minutes. b. Adopt Resolution No. 11-2531 Abandoning a Portion of a PU&DE @ 2103 Rainbow Ave. North (11-02300010)/APL Surveying Recommendation Adopt resolution abandoning the westerly 5 of the 10 public utility and drainage easement along eastern property line of Lot 17, Block 1, Tract 2133. No objections from utilities. c. Adopt Resolution No. 11-2532 Approving Lake Havasu City s Participation in the Mohave County Multi-Jurisdictional Hazard Mitigation Plan 2010 d. Special Event Liquor License: Lake Havasu Area Chamber of Commerce Mixer at JR Motors, 1620 Countryshire Avenue/Krueger Recommendation Recommend approval of Lisa J. Krueger s applica-tion for one beer and wine garden on April 21, 2011, from 5 p.m. to 7 p.m. Fees have been received, and no objections have been submitted. e. Special Event Liquor License: Fundraiser for Lake Havasu City Marine Association, OCM Custom Boats, 1550 Industrial Boulevard/Salscheider Recommendation Recommend approval of James G. Salscheider s application for a beer garden on April 27, 2011, from 5 p.m. to 9 p.m. Fees have been received, and no objections have been submitted. f. Special Event Liquor License: Fundraiser for Tinnell Memorial Sports Park, Ultra Star Cinema, 5601 N. Highway 95, Building 1/Talley Recommendation Recommend approval of Mark Loyd Talley s application for one bar setup on April 30, 2011, from 7 p.m. to 12 a.m. Fees have been received, and no objections have been submitted. g. Special Event Liquor License: Fundraiser for Tri State Wheelers, Rotary Community Park, 1400 Smoketree Avenue/Rizzi Recommendation Recommend approval of Randy Andrew Rizzi s application for a beer & wine garden on April 29 & 30, 2011, from 10 a.m. to 12 a.m., and ratify city manager s designation to allow sale of alcoholic beverages in Rotary Community Park. Fees have been received, and no objections have been submitted. h. Special Event Liquor License: Fundraiser for FDR From Dreams to Reality Corp., Board of Realtors Hall, 2293 Swanson Avenue/Pelayo Recommendation Recommend approval of Jose Guadalupe Pelayo s application for a bar setup on May 28, 2011, from 8 p.m. to 2 a.m. Fees have been received, and no objections have been submitted. i. Call for Executive Session Pursuant to ARS 38-431.03(A)(1)(3)(4)(7) 5:00 p.m. Tuesday, April 26, 2011. Councilmember Barnes moved that the council approve the Consent Agenda as presented, seconded and unanimously carried.
Lake Havasu City Council Regular Meeting Page 2 of 7 CORRESPONDENCE, COMMUNICATIONS, PETITIONS, ANNOUNCEMENTS, CITY MANAGER REPORT Recognition of Retiring City Employees Mayor Nexsen advised that the purpose of this item is to recognize some of the city s retiring employees. He thanked those employees for their years of service and help in making Lake Havasu City a better place to work and play. City Manager Report City Manager Charlie Cassens reported on the following: Transit ridership for March 2011 Transit s 25 th anniversary on April 6, 2011 On April 6, 2011, Transit lead John Saunders celebrated 25 years with Transit Expressed appreciation for those who participated in city auction held on April 9, 2011 First burrowing owl was spotted in one of the artificial burrows at Indian Peak Wash City staff manned a water conservation booth at the 2011 Home Show City s Facebook page City was awarded QECB Grants for energy conservation programs PUBLIC HEARING: SERIES #12 RESTAURANT LIQUOR LICENSE, WIDE OPEN WINGS, 125 PASEO DEL SOL/KELSON City Clerk Carla Simendich advised that Wade Randal Kelson applied for a Series #12 Restaurant Liquor License for Wide Open Wings located at 125 Paseo Del Sol. She added that all posting requirements have been met, all fees have been paid, no objections were received, and a liquor license was previously held at this location. Councilmember McAtlin moved to recommend that the Arizona Department of Liquor Licenses & Control approve a Series #12 liquor license for Wide Open Wings, 125 Paseo Del Sol, seconded, and unanimously carried. PUBLIC HEARING: ADOPT RESOLUTION NO. 11-2533 ADOPTING THE TEN YEAR COMMUNITY INVESTMENT PROGRAM (CIP), FISCAL YEAR 2012-2021 Budget Manager Sandy McCormack advised that the City Code requires that the city council, by resolution, adopt the Community Investment Program (CIP), with or without amendment, not less than two weeks prior to the adoption of the city s annual budget. She added that the annual budget is scheduled to be adopted in June, 2011. Ms. McCormack explained that the City Code also requires that a general summary of the program be published at least one time in the local newspaper, which has been done. She added that the ten-year Community Investment Program totals $266,893,238, of which $51,104,132 is for Fiscal Year 2011-2012. She noted that the revisions were emailed to the council. Councilmember Borrelli moved to approve RESOLUTION NO. 11-2533 to adopt the Fiscal Year 2012-2021 Community Investment Program, seconded, and unanimously carried. PUBLIC HEARING: ADOPT ORDINANCE NO. 11-1030 AMENDING LHC CODE CHAPTER 2.04, CITY ORGANIZATION AND CITY COUNCIL Assistant City Attorney Kelly Garry advised that the purpose of this item is to adopt the ordinance with the suggested revisions to City Code Chapter 2.04, City Organization and City Council, as discussed at the previous council meeting. Ms. Garry explained that the main revisions include a reorganization of Chapter 2.04 and inclusion of specific provisions for Rules of Procedure for the city council and all boards, commissions, and committees of the city council.
Lake Havasu City Council Regular Meeting Page 3 of 7 Councilmember Callahan asked if all of the other boards, commissions, and committees will be working under the same set of rules, to which Ms. Garry replied that was correct. Councilmember Callahan moved to adopt ORDINANCE NO. 11-1030 amending Lake Havasu City Code Chapter 2.04 City Organization and City Council, seconded, and unanimously carried. PUBLIC HEARING: ADOPT ORDINANCE NO. 11-1031 AMENDING SECTION 14.40.040, TEMPORARY USE PERMITS, OF THE LHC CODE (11-00500005)/LHC Development Services Director Larry Didion advised that currently, the temporary use permit process has a fee for an application for all temporary uses. The proposed Code amendment will create a tiering system by allowing for one-day events to be exempt or charging no fee, depending upon the importance. He added that a fee could be charged for a three-day temporary use as decided by council and could be set at a later date. He said for all other uses longer than three days, the existing fee and application requirements would remain the same. Councilmember Barlow wanted to know how much revenue overall this would mean for the city, to which Mr. Didion said he didn t anticipate that this would be a significant decrease in revenue for the community. Councilmember Barlow felt this was a good solution to a problem that has occurred for some time. Mayor Nexsen agreed. Councilmember Barlow moved to adopt ORDINANCE NO. 11-1031 approving land use action 11-00500005 with Planning Commission recommendations, seconded, and unanimously carried. PUBLIC HEARING: ADOPT ORDINANCE NO. 11-1032 AMENDING SECTION 14.08.040 TABLE 2-3 OF THE LHC CODE TO AMEND FRONT SETBACKS FOR GARAGES WITHIN THE R-E (RESIDENTIAL ESTATES), R-2 (TWO- FAMILY), AND R-3 (LIMITED MULTI-FAMILY) RESIDENTIAL ZONING DISTRICTS (11-00500006)/LHC Mr. Didion advised that a number of months ago, revisions were made to residential R-1 setback requirements to make it easier to acquire a building permit for a small addition. He added that unfortunately, at that time, the amendments changed the front setbacks within the R-E and R-1 zoning districts from 25 feet to 20 feet with the provision that garages remain at a 25-foot setback. For the R-2 and R-3 properties, the front setback has always been 20 feet; however, when the amendment was made, the requirement for the garage to be set back 25 feet was included for the R-2 and R-3 properties making the standard for garages more restrictive than previously allowed. This Code amendment would amend the front setback for garages to be 20 feet as previously allowed within the R-E, R-2, and R-3 residential zoning districts. Councilmember Callahan moved to adopt ORDINANCE NO. 11-1032 approving land use action 11-00500006 with Planning Commission recommendations, seconded, and unanimously carried. PUBLIC HEARING: ADOPT ORDINANCE NO. 11-1033 AMENDING SECTIONS 14.38.080(B) AND 14.40.060 (L)(6)(c) OF THE LHC CODE RE: GARAGE SALE DURATION AND SIGNS ALLOWED (11-00500007)/LHC Mr. Didion advised that there were certain sections located throughout the Code regarding garage sales. He noted that the purpose of this Code amendment was to ensure conformity of the Code, that the duration of the garage sale would be three days, and the size of the signs associated with the garage sale cannot exceed four square feet. Councilmember Callahan asked if this Code amendment addresses the issue of using cardboard boxes for signage. Mr. Didion replied that the signage issues relating to garage sales will be discussed at a future meeting.
Lake Havasu City Council Regular Meeting Page 4 of 7 Councilmember McAtlin moved to adopt ORDINANCE NO. 11-1033 approving land use action 11-00500007 with Planning Commission recommendations, seconded, and unanimously carried. PUBLIC HEARING: ADOPT ORDINANCE NO. 11-1034 AMENDING SECTION 14.12.060(C), CHANNEL RIVERWALK DISTRICT, OF THE LHC CODE (11-00500008)/LHC Mr. Didion advised that the purpose of this item is to take a policy statement within the General Plan regarding the 80 percent residential and 20 percent commercial activities in the Channel Riverwalk Zoning District. The intent is to include it in the Development Code as a regulation to ensure that developers who want to develop in the community receive all of the information they need to do their plans early. He added that the provision was somewhat hidden, and staff prefers to incorporate it into the Development Code. Mayor Nexsen thought it was an important provision, because it makes it clear that the city expects a minimum of 20 percent commercial activity along the Channel Riverwalk. It was also his understanding that the bottom floor of the proposed development must be commercial. Mr. Didion clarified that is currently a Code provision in the Zoning Code. Councilmember Nyberg moved to adopt ORDINANCE NO. 11-1034 approving land use action 11-00500008 with Planning Commission recommendations, and seconded. Councilmember Borrelli stated he would like a provision included that no residential or hotel rooms will be allowed on the ground level. Councilmember Nyberg s motion was unanimously carried. PUBLIC HEARING: ADOPT ORDINANCE NO. 11-1035 AMENDING SECTION 14.38.070(C) TABLE 3-7 OF THE LHC CODE TO ELIMINATE ANNUAL PERMIT REQUIREMENTS FOR BANNERS (11-00500009)/LHC Mr. Didion advised that the proposed amendment will change the Sign Code with regard to the permit requirements for banners. Currently, an annual renewal of the banner permit is required. The proposed amendment will eliminate the annual renewal requirement and make it a one-time application. Mayor Nexsen asked if this relates to banners on the sides of buildings versus the vertical banners. Mr. Didion responded that this ordinance relates to banners currently allowed by the Code, which are the more traditional, square, or rectangular ones placed on the structure. Councilmember Callahan asked if there will be any way to enforce the appearance of the banner so they are not an eyesore when they hang loose. Mr. Didion replied that staff regularly enforces the appearance of banners when they get too tattered, faded, or out of date. Councilmember Callahan moved to adopt ORDINANCE NO. 11-1035 approving land use action 11-00500009 with Planning Commission recommendations, seconded, and unanimously carried. PUBLIC HEARING: ADOPT ORDINANCE NO. 11-1036 AMENDING SECTIONS 12.08.210 AND 14.36.050 OF THE LHC CODE PERTAINING TO MINIMUM HEIGHT OF ADA SIGNAGE (11-00500011)/LHC Mr. Didion advised that recent changes have taken place regarding the ADA requirements that affect the locally adopted sign requirements and posting of ADA spaces. He said the proposed Code amendment relates to the minimum height of ADA signs and the location of the wheel stop. Mr. Didion added that based on the new standards, Lake Havasu City needs to amend the Code so that all new construction and alterations must comply with the new Americans with Disabilities Act Accessibility Guidelines. Mayor Nexsen wanted to know if an existing business will have to make changes if they are in compliance today, to which Mr. Didion replied they would not. However, if for some reason, the business removes the
Lake Havasu City Council Regular Meeting Page 5 of 7 sign, when they replace it, they would be asked to meet the new guidelines so that they are in conformance with the most recently adopted ADA guidelines. Councilmember Barlow moved to adopt ORDINANCE NO. 11-1036 approving land use action 11-00500011 with Planning Commission recommendations, seconded, and unanimously carried. PUBLIC HEARING: AUTHORIZE PURCHASE OF REAL PROPERTY AT 2140 AND 2160 MESQUITE AVENUE Mr. Didion advised that the city has been in negotiations for the purchase of real property located at 2140 and 2160 Mesquite Avenue. He showed a location map and photo of the two properties. He said that staff negotiated the use of $115,000 in value of a public-owned lot located at 3215 Palm Grove Drive that the city wishes to sell to offset the purchase of the two properties on Mesquite. He noted that the property on Palm Grove Drive was originally part of the sewer project and was used by one of the sewer contractors. He added that early on, Public Works Department and Development Services Department staff saw the advantage of grading it to use it as a lot and to realize a gain from it. He noted that the property on Palm Grove Drive consists of a little more than five acres that has some fairly steep topography and drainage issues. The property was appraised at $115,000. City Manager Charlie Cassens advised that one thing that makes the two parcels on Mesquite Avenue so attractive to be acquired is that they are connected and are adjacent to a piece of property that the city already owns and is currently a parking lot. The intent is to use the proceeds realized from the sale of the Agave Business Park located near the airport in order to purchase the two parcels on Mesquite Avenue. The two parcels consist of about 1.7 acres located in a prime location within the community. Staff believes that not only will the two parcels provide parking in the future, but they also allow the parcels to be master planned into something that is even better than just parking in the future. He felt they would also contribute to the overall development of that area. He added that by procuring those particular parcels, the city will have some leverage with respect to how that central area of the city can develop. Another factor is that they are located adjacent to the multi-use path. Mr. Cassens stated that staff was requesting that the council approve purchasing the properties. He said staff negotiated the purchase at length. Mayor Nexsen commented that there is a program in place along McCulloch Boulevard that if a business moves in and they are not able to provide all of the parking that is required by Code, they can actually buy out spaces. He thought there has been some reluctance to do that. He said the city can now say it has a future potential parking lot. He said he has also had people wonder why the city would take $600,000 and buy property rather than help pay for city operations when there is currently a city budget crisis. He explained that many years ago, the city council felt that if a city asset is sold, those proceeds should be used to purchase another city asset, and hopefully, a more strategic asset. He further added that this was accomplished without using any cash. He also felt that more activity will be generated in the downtown area when the ASU campus comes to the city. He thought overall, this was a very good purchase for the city, and from a long-term prospective, it was a very strategic move on the city s part. Councilmember Borrelli liked the idea that these parcels were being purchased without the use of any general fund money. He thought it was a good move and well planned out. Councilmember Callahan agreed. Councilmember Callahan moved that the City Manager be authorized to final negotiations and execute and enter into a purchase contract and related escrow instructions for the purchase of Lots 23 & 24, Block 2, Tract 161 in an amount not to exceed $725,000 and to use the value of Parcel G, Tract 2238, to offset the purchased price in an amount no less than $115,000 utilizing a budget appropriation to be transferred from Project ESPGEN-Non-Specific Stimulus Projects that will not be completed, seconded, and unanimously carried.
Lake Havasu City Council Regular Meeting Page 6 of 7 PUBLIC HEARING: APPROVE PURCHASE AGREEMENT BETWEEN THE LAKE HAVASU CITY POLICE DEPARTMENT AND SADA SYSTEMS FOR SERVICES PROVIDED BY GOOGLE APPS Police Chief Dan Doyle advised that the Police Department is in the process of entering into a contract with SADA Systems to provide Google cloud technology for the Police Department. He said the purchase agreement contains an indemnification clause in which the city is agreeing to indemnify SADA. Approval of such an indemnification clause requires council approval regardless of the contract amount. Chief Doyle explained cloud technology and that Google Apps was at the forefront of the technology. He added that rather than organizations having to purchase hardware and software, it is provided via the Internet. He discussed some of the benefits of Google Apps. Mayor Nexsen questioned the security issues related to Google Apps. Chief Doyle explained that Google Apps was secure. He named some of the other entities that were currently using Google Apps. Councilmember Barlow wanted to know if the department will have to dedicate an employee to manage it, to which Chief Doyle replied, absolutely not; that is one of the benefits of this. There will be IT technical support 24 hours a day/7 days per week via Google. Councilmember Barnes noted that the council communications stated there are 132 users, which is more than the number of personnel. Chief Doyle explained that the number of users included unfunded positions. He said that number will decrease as budget discussions proceed. Councilmember Barnes wanted to know what liabilities the city could have. Chief Doyle explained some of the possibile city liabilities that could occur. Councilmember Barnes then asked about funding. Chief Doyle explained that approximately $2,000 is payable during the current fiscal year and approximately $8,000 for Fiscal year 2011-2012. The cost will be approximately $8,000 per year for the service. Councilmember Barlow moved to authorize approval for Chief Doyle to enter into a purchase agreement between the Lake Havasu City Police Department and SADA Systems for services provided by Google Apps, seconded, and unanimously carried. PUBLIC HEARING: APPROVE ASSIGNMENT AND ASSUMPTION BETWEEN LHC, PBS&J, AND ATKINS NORTH AMERICA Public Works Director Mark Clark advised that the item was being pulled from the agenda, because it was determined that the action did not need the city council s approval. PUBLIC HEARING: APPROVE CHANGE ORDER NO. 3 FOR CHEMEHUEVI AREA SEWER PROJECT, PROJECT NO. SS2680 Mr. Clark advised that the change order for this project included the oil escalation charge of approximately $84,000 for the Chemehuevi Area Sewer Project. He added that staff will probably be coming before council to approve similar change orders for the two remaining Capriati Company projects. Councilmember Nyberg moved that City Council authorize the City Manager to execute Change Order No. 4 for the Chemehuevi Area Sewer, Project No SS2680, with Spirit Underground in an amount not to exceed $84,335, utilizing funds from WWSE Administration, Project No. SS2300, seconded, and unanimously carried. PUBLIC HEARING: AWARD BID: LONDON BRIDGE LED LAMPS REPLACEMENT, ITB B11-SM341B-2 Councilmember McAtlin recused himself from participating and voting on this item.
Lake Havasu City Council Regular Meeting Page 7 of 7 Mr. Clark advised that the purpose of this item is to award the bid for replacement of the London Bridge lights from Compact Fluorescent light bulbs (CFL) to longer lasting and more energy-efficient Light Emitting-Diode bulbs (LED). Mr. Clark noted that five bids were received and opened, and it was determined that the lighting provided by the low bidder did not match the existing bulbs. He explained the differences between the lights and aesthetics of all five bidders. It was staff s recommendation to award the bid to the second lowest bidder, Sam Nichols Electrical, of Lake Havasu City. Councilmember Borrelli asked how long the LED bulbs would last. Mr. Clark responded that they are anticipated to last about seven to eight years. Councilmember Callahan moved to approve and award the FY 2010-11 London Bridge LED Lamps Invitation to Bid to Sam Nichols Electrical, of Lake Havasu City, Arizona, for the total amount not to exceed $13,075.06, seconded, and carried, with all councilmembers voting aye, with the exception of Councilmember McAtlin, who abstained from voting. PUBLIC HEARING: DISCUSSION AND POSSIBLE ACTION, IF NEEDED, TO COMPLY WITH THE ARIZONA OPEN MEETING LAW REQUIREMENTS FOLLOWING EXECUTIVE SESSION AS NOTICED ABOVE RE: DISCUSSION AND CONSIDERATION OF THE PROPOSED CITY MAGISTRATE CONTRACT. Councilmember Callahan moved to direct the city attorney to proceed as the council directed in Executive Session, seconded, and unanimously carried. CALL TO THE PUBLIC There were no requests to address the council. CURRENT EVENTS Councilmember Nyberg advised that the Humane Society will be holding their yearly dinner on April 20, 2011, and it is open to the public. People can contact the Humane Society for more information. FUTURE MEETINGS: Tuesday, April 19, 2011 @ 4:00 p.m. Budget Work Session Tuesday, April 26, 2011 @ 5:30 p.m. Work Session Tuesday, April 26, 2011 @ 6:00 p.m. Regular Meeting FUTURE AGENDA ITEMS Councilmember Barnes requested a future agenda item to discuss jail costs, and if there is a way the city can lower the jail costs. He noted they have gone from $58 to $98 in a year s time, and it will affect the budget. ADJOURN Upon motion by Councilmember Callahan, and seconded, the meeting adjourned at 7:08 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 12 th day of April, 2011. I further certify that the meeting was duly called and posted, and that a quorum was present. Carla Simendich, City Clerk