Lake Havasu City Council Regular Meeting - October 22, 2024

The Lake Havasu City Council met in regular session on October 22, 2024, at 5:30 p.m. The agenda included consent items, a Go Lake Havasu quarterly tourism presentation, the city manager's report, nine public hearings, and a call to the public. Most actions were unanimous; the Second Bridge professional services agreement passed on a divided vote.

Consent Calendar

• The consent agenda was approved 7-0 without discussion or removal of items. It included approval of the October 8, 2024 regular meeting minutes; Resolution No. 24-3789 abandoning a utility/drainage easement at 2140 Eagle Drive; Resolution No. 24-3787 accepting a U.S. Army Corps of Engineers grant agreement under the Arizona & Rural 595 Program; a development agreement with CP LHC I, LLC for The Villages at Victoria Farms Road; sole-source wastewater treatment plant parts, equipment, and service purchases from Parkson Corporation; Resolution No. 24-3790 for the Arizona Supreme Court eAccess Web Portal memorandum of understanding; and a call for an executive session on November 12, 2024.

Presentations & Reports

• Go Lake Havasu Quarterly Presentation: The Go Lake Havasu team reported that tourism remains a major economic driver. Placer AI data showed 1.6 million visitors over the past year and about 61,000 permanent residents, equating to 26 visitors per resident. Average visitor spending was reported at $235 per visit, up 57.5%; hotel nights averaged about $290 with an average stay of 3.6 days. The group emphasized that Go Lake Havasu is a 501(c)(6), not a charity, and announced a new public-facing business website coming in January. In the first quarter, supported events produced $3.079 million in definite revenue, with nearly $400,000 in additional potential revenue and about $685,000 in lost opportunities.
• Board and Commission Vacancies: City Clerk Kelly Williams announced vacancies on the Board of Adjustment, one regular and one alternate member, and on the Planning & Zoning Commission, one regular member. Packets are available at City Hall and on the city website.
• City Manager's Report: Jess Knudson recognized new firefighter paramedics and Deputy Chief Garrett Roberts, noted the fire department's ISO Class 2 rating effective November 1, and reported delivery of three new ambulances. He reported that the Veterans Resource Team Standown served 125 registered veterans, with seven registering for housing assistance and one with Catholic Charities. He also provided a hydrant meter update: before May 2024 more than 60% of hydrant meters had no information, which dropped to 21% after enforcement letters and to nine meters by October 2024. In June 2024, 5.8 million gallons were accounted for, resulting in about $19,000 in water revenue. The Police Department received two Polaris Rangers through an Arizona State Parks grant for desert patrol and litter enforcement.

Public Comments & Testimony

• Vehicle sales rezone, item 7.4: Several nearby residents spoke. Dennis Bucolo and Scott Stillman did not oppose the rezoning but opposed the site plan, citing the proposed 20-foot setback and loss of the prior 50-foot setback protections. Trisha Gagnan questioned what would happen if Arizona Department of Transportation approval failed, called the view renderings distorted, and objected to replacing prior protections with a large building wall. Emiliano Torres supported the project concept but raised traffic-safety concerns about the Highway 95 entrance. Leonard Lacey asked about the city's former ownership and cleanup of the property.
• Fee schedule, item 7.6: Robert Fisher argued the proposed business license and water meter increases were counterproductive, saying the city should encourage development because long-term tax revenue offsets initial costs; he also criticized prior city spending. Another speaker with water department experience raised concerns about water system looping, dead-end mains, and trihalomethanes. Bonnie Toy thanked the council for considering lower aquatic center fees.
• Second Bridge, item 7.8: Greg Frosley, a former city engineer, opposed the contract as drafted. He questioned switching design firms after the feasibility study, called the owner's contingency and construction management fees unnecessary or duplicative, and said the total design cost appeared high. Another public speaker supported the bridge, saying it would pay for itself through future development and tax revenue on the island. A third speaker asked about utility placement on the bridge and pedestrian and bicycle protection and raised concerns about the existing London Bridge being struck.
• Call to the Public: Leonard Lacey presented London Bridge safety concerns, citing federal guidance on separating pedestrians and bicyclists from traffic and urging protective barriers on both the existing and new bridges. Another resident described the bridge as dark and dangerous for pedestrians, requested a 25 mph speed limit, and noted crosswalk signal button visibility issues.

Discussion Items & Public Hearings

• 7.1 Sake Sushi & Grill liquor license: Staff confirmed posting, fees, zoning, and no objections. The council voted 7-0 to recommend approval to the Arizona Department of Liquor Licenses and Control.
• 7.2 Dos Amigos Tacos liquor license: Staff confirmed the same routine requirements for applicant Harriet McLaren. The council voted 7-0 to recommend approval.
• 7.3 Planning & Zoning Commission appointments: Staff reported 13 applications on file and recommended JP Thornton for the regular vacancy and Phil Annette for the alternate vacancy. Councilmember Campbell expressed concerns about the selection process and transparency. The appointments were approved 6-1.
• 7.4 Rezone and General Development Plan for 2801 Highway 95 North: The 10.29-acre property would change from C-1/PD to C-2/PD for a vehicle sales development. The applicant discussed neighborhood meetings, an L-shaped showroom used as a buffer, no vehicle access to residential streets, and requested exceptions for setbacks and building heights. Staff stated the protest petition failed because owners of 2.1 acres protested, short of the required 2.7 acres. The ordinance was approved 7-0.
• 7.5 Repeal of Airport Advisory Board: Ordinance No. 24-1346 removes the Airport Advisory Board from city code. Councilmember Dolan supported the change, and Councilmember Campbell asked about keeping a council liaison. It was adopted 7-0.
• 7.6 Fees and service charges ordinance introduction: Staff presented the annual fee review without CPI indexing, including fee increases, decreases, and additions. Council discussion addressed reducing Aquatic Center drop-in and punch-pass fees, raising alcoholic beverage prices at city venue events, possible business license fee changes, and water meter fee data. The motion to introduce Ordinance No. 24-1347, incorporating the mayor's recap including further staff review, carried 7-0.
• 7.7 Wastewater Master Plan update: Jacobs staff presented the 2024 update to the 2022 plan. It updated population growth from 0.7% to 1%, maintained a 2040 planning horizon, and found treatment capacity remains below the 75% expansion threshold. The resolution was adopted 7-0.
• 7.8 Second Bridge professional services agreement: Staff recommended NV5 of Arizona for programming, design, Construction Manager at Risk management, and construction management for the Second Bridge. The proposed contract was $6,623,065, including design, environmental permitting, construction and CMAR management, and a $315,000 owner contingency, within the $35.5 million project funding. Councilmember Dolan said he would vote no and suggested a referendum; Councilmember Campbell said she would support design services only and not the full contract; Councilmember Lane supported the full agreement. A motion to send the contract back to staff failed 5-2, and the main motion approving the NV5 agreement carried 4-3.
• 7.9 Holbrook Asphalt HA5 pavement preservation: Staff requested approval for approximately 174,000 square yards of HA5 high-density mineral bond pavement preservation in an amount staff presented as about $577,656.46. The motion approving the cooperative purchase amendment carried 7-0.
• 7.10 Dick Samp Parking Lot project: Staff recommended awarding the paving contract to Pioneer Earth Movers, Inc. for $139,480 plus applicable taxes. Councilmember Campbell recused herself. The award carried 6-0 with one recusal.
• 7.11 McCulloch Boulevard and Jamaica Boulevard traffic signal: Staff reported ADOT's construction estimate was $745,277, but the apparent bid required the city to pay $531,810 in overages under the intergovernmental agreement, using city HERF funds. The council approved the payment and continuation of the signal project 7-0.

Key Outcomes

• Approved the consent agenda 7-0.
• Recommended approval of both restaurant liquor licenses 7-0.
• Appointed JP Thornton and Phil Annette to the Planning & Zoning Commission 6-1.
• Approved Ordinance No. 24-1348, rezoning 2801 Highway 95 North for a vehicle sales development, 7-0.
• Adopted Ordinance No. 24-1346 repealing the Airport Advisory Board, 7-0.
• Introduced Ordinance No. 24-1347, the fee and service charge schedule update, with further staff review before final adoption, 7-0.
• Adopted Resolution No. 24-3785 approving the 2024 update to the 2022 Wastewater Master Plan, 7-0.
• Approved the NV5 Second Bridge professional services agreement in the amount of $6,623,065 by a 4-3 vote; a prior motion to return it to staff failed 5-2.
• Approved the Holbrook Asphalt HA5 amendment and purchase 7-0, the Pioneer Earth Movers Dick Samp Parking Lot award 6-0 with one recusal, and the McCulloch and Jamaica traffic signal overage payment 7-0.
• Future meetings were scheduled for November 12, 2024 and November 26, 2024; the November 26 meeting will include swearing in councilmember-elect Diaz and recognizing Councilmember Lane.