Lake Havasu City Council Regular Meeting - February 25, 2025

The Lake Havasu City Council held its regular meeting on Tuesday, February 25, 2025, at 5:30 p.m. The council unanimously approved the consent agenda, received the fiscal year 2024 audit results with a clean opinion, authorized a wastewater bond refunding expected to save approximately $1.1 million annually, approved several infrastructure contracts (water master plan, second bridge pre-construction services, equipment purchases, and the chip seal program), and heard public comments on disability accessibility and panhandling.

Consent Calendar

• The consent agenda was approved 6–0 with no items removed.

Public Comments & Testimony

• Bonnie Toy (resident) raised concerns about disability accessibility in city parks and sidewalks, specifically noting a lack of curb ramps at Rotary Park and newly built housing complexes. She suggested the city establish a disability advocacy group.
• Unidentified resident expressed concern about increased panhandling along Highway 95, citing safety risks and requesting city restrictions (e.g., distance limits from roadways) while acknowledging First Amendment protections.

Audit Results – Fiscal Year 2024

• Clifton Larson Allen LLP (Jean Dite Dietrich, principal auditor) presented the audit. Finance Director Trina Ware noted challenges including new GASB 100 standards, fund reclassifications, and staffing changes.
• Outcomes: Clean unmodified opinion (highest assurance); single audit with no deficiencies; no findings on highway user revenue fund or municipal court agreed-upon procedures.
• The council approved the audit report 6–0 (motion by Councilmember Koch, second by Councilmember Diaz).

Wastewater Revenue Bond Refunding (Resolution 25-3817)

• Mark Reeder (Stefan Nicholas) and Finance Director Trina Olson presented a plan to refund senior lien wastewater system revenue bonds issued in 2015 (totaling ~$130 million). The refinancing will reduce interest costs by about 1%, saving approximately $1.1 million annually over the remaining 20-year term (through 2045). Staff recommended applying $5.2 million from the rate stabilization fund to reduce principal, increasing total present-value savings to ~$10 million.
• Council discussion: Councilmember Campbell asked about using the $5.2 million for other infrastructure, but staff advised that using it to buy down debt saves ~$385,000 per year in interest. Councilmember Diaz clarified that the $35.5 million state grant for the second bridge cannot be used for other purposes.
• The resolution was approved 6–0 (motion by Councilmember Diaz, second by Councilmember Moses).

2025 Water Master Plan – Professional Services Agreement with Jacobs Engineering

• Ryan Kellett (Public Works) presented the need for a water master plan update (last done in 2019). The plan will evaluate production, distribution, supply, demand, aging infrastructure, and climate scenarios, extending to 2040. Cost: $224,940; timeline: ~7 months (kickoff March 11, final September 2025).
• Public questions: Pat Willard asked about the cost breakdown; Bonnie Toy asked about integration with the general plan and brown-water incidents. Staff explained that a recent planned water-main repair caused temporary brown water (manganese) but was not a break.
• The agreement was approved 6–0 (motion by Councilmember Campbell, second by Councilmember Diaz).

Second Bridge and Roadway Construction – CMAR Pre-Construction Services Contract with Ames Construction

• Jason Hart (Public Works) presented the CMAR pre-construction services contract for the second bridge (funded by a $35.5 million state grant). The contract for $458,042.96 includes design support, cost estimating, and utility investigation. The bridge alignment runs from the mainland (near Windsor State Park) to the island (McCulloch Boulevard).
• Council discussion: Vice Mayor Lynn and Councilmember Diaz clarified that this is not a new design but a continuation of the process. Councilmember Campbell expressed concern about potential overlap with NV5’s design contract ($6 million total, of which $480,000 has been paid). City Manager Jess Knutson and Mr. Hart explained that the CMAR contractor provides separate expertise and that the $35.5 million grant includes all costs (design, construction management). If the project exceeds the grant, the city would stop and return unused funds. The feasibility study indicated a range of $26.5–33.5 million, but tariffs and material costs could affect the final price.
• The contract was approved 6–0 (motion by Councilmember Moses, second by Councilmember Koch).

Equipment Purchases

• Generator for Port Drive Lift Station: A 230-kW emergency generator ($127,272.16) to replace a 25-year-old unit at a lift station pumping ~100,000 gallons/day. Approved 6–0 (motion by Councilmember Diaz, second by Councilmember Moses).
• Valve Maintenance Skid: A new valve operating machine ($117,199.41) to replace a 25-year-old unit, improving maintenance of 4- to 48-inch valves. Approved 6–0 (motion by Councilmember Moses, second by Councilmember Koch).

Chip Seal Program (Fiscal Year 2024-25)

• Job Order Contract Task Order #2 with Cactus Asphalt for $1,275,877.14 to place chip and fog seal on over 900,000 square yards. The per-project limit was raised to $1.3 million. Approved 6–0 (motion by Councilmember Campbell, second by Councilmember Diaz).

Council Committee Reports

• Councilmember Campbell announced a roundtable on apprenticeship programs on February 27 (3–5 p.m., MCC Room 600) in partnership with the Chamber and Arizona@Work.
• Councilmember Diaz reported attending a GoLakeHavasu board meeting and praised new CEO Sean Buckley’s revamped website and team.

Key Outcomes

• All action items were approved unanimously (6–0):
  1. Consent agenda
  2. Fiscal year 2024 audit report
  3. Resolution 25-3817 for wastewater bond refunding
  4. Professional services agreement for water master plan with Jacobs Engineering ($224,940)
  5. CMAR pre-construction services contract with Ames Construction ($458,042.96)
  6. Generator purchase from Empire Power Systems ($127,272.16)
  7. Valve skid purchase from Balor Equipment ($117,199.41)
  8. Chip seal program task order with Cactus Asphalt ($1,275,877.14) and raised project limit to $1.3 million