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OPENPUBLICA · PUBLIC MEETING RECORD

Record of Proceedings

Lake Havasu City Council Regular Meeting – Tentative Budget & CIP Adoption – June 10, 2025

City Council & Planning and Zoning — Tuesday, June 10, 2025

BodyLake Havasu City, Arizona

SessionCity Council & Planning and Zoning

DateTuesday, June 10, 2025

StatusFILED

Video Record

0:00 / 2:24:40

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0:12

Good evening and welcome.

0:13

I call to order the Lake Havasu City Council regular meeting, including our tentative budget and CIP adoption on Tuesday, June 10th, 2025 at 5:30 p.m.

0:23

We'll now have an invocation from Mr.

0:25

Michael Gagnon, followed by the Pledge of Allegiance led by Don Bitterbender and Rick Foster with the disabled American vets, the Lake Havasu City Vet Center.

0:33

Michael Father God, I praise you.

0:46

You are the mighty God, the King of Kings and Lords of Lords, the creator of the universe.

0:52

You are mighty to save all that humble themselves and put their faith in the work of your son Jesus Christ.

0:57

I stand in front of these members of council and townspeople and pray that your kingdom come and your will be done.

1:03

I also ask that you give my brothers and sisters that sit here tonight, whether in whether in the attending seats or the members of the council, the strength that your spirit gives us stand by your word.

1:17

For we do not wrestle against flesh and blood, but against principalities, against powers, against the rulers of the darkness of the heavenly places.

1:26

Let us be the watchman that you command us to be let us stand for what is right and true.

1:31

Let us stand with you, Father.

1:35

Praise be to the one and only living God.

1:37

I come to you with these things in the name of your son, the name above every other name, Jesus Christ.

1:42

Amen.

2:06

Yes, please.

2:07

If um if you'd like to share a little bit about the disabled American veterans in the Lake House Center.

2:12

I'm Don Bittenbender.

2:14

I'm the past commander of disabled American Veterans, London Bridge, Chapter 27.

2:19

Uh primarily, I just like to explain some of the things we do.

2:22

Our biggest function is to provide service to veterans who need help in filing claims to the VA for service connected disabilities.

2:31

Uh we're located at 2001 College Drive in Lake Havasu City.

2:36

As you go into the county courthouse, we're just to the left, our interests there.

2:40

The biggest thing that we're needing help with right now, if we could ask anybody that would like to be a volunteer driver for our organization, we provide transportation to veterans to the Phoenix Hospital, VA Hospital, to the Prescott VA Hospital, and we're now getting ready to start providing transportation to the community-based outpatient clinic VA Clinic and Havasu.

3:04

We are very short of drivers.

3:05

We have two vans.

3:07

You do not need to be a veteran to be a driver, and you do not be a need to be a member of the DAV to be a driver.

3:13

So we'd really appreciate anybody that would like to participate with us and help us provide this services to the veterans.

3:32

Or we're in the phone book.

3:33

So give us a call if you need a claim help or if you want to be a driver.

3:36

Excellent.

3:37

Thank you very much.

3:38

Yes, thank you for everything it's you.

3:39

Councilmember Campbell, did you have a question?

3:41

Do you need a CDL license?

3:42

I beg your pardon.

3:43

Do you need a CDL license?

3:45

No, you do not.

3:46

No.

3:46

What you will do, you will go, we will transport you uh to Prescott.

3:51

You'll be fingerprinted.

3:52

You need to have proof of insurance, just that you're insurable, not that your insurance is used to protect against the use of the vans.

4:00

So it's just that the VA knows that you are insurable and you're and you're given a TB test.

4:06

And they do a background check, but no, you do not need a CDL license.

4:09

Thank you, and good luck.

4:10

Thank you.

4:11

Thank you.

4:11

Thank you for being here, and thank you for the work you do for our veterans.

4:15

All right, item four is our roll call.

4:16

Miss Williams, if you please call the roll.

4:20

Council members Nancy Campbell.

4:22

Here.

4:22

Jenny Koch.

4:23

Here.

4:24

Jim Dolan.

4:26

David Diaz.

4:27

Here.

4:28

Cameron Moses.

4:29

Here.

4:29

Vice Mayor Michelle Lynn.

Discussion Breakdown — Share of Meeting

Procedural███████████████15%

Budget Equity Analysis███████████████15%

Personnel Matters████████████12%

Technology and Innovation████████████12%

Public Safety██████████10%

Capital Improvement Planning████████8%

Public Engagement██████6%

Fiscal Sustainability██████6%

Intergovernmental Agreements████4%

Summary of Proceedings

Lake Havasu City Council Regular Meeting – Tentative Budget & CIP Adoption – June 10, 2025

The Lake Havasu City Council met on Tuesday, June 10, 2025 at 5:30 p.m. to adopt the Tentative Budget and Five-Year Capital Improvement Plan (CIP) for Fiscal Year 2025-26 and other business. Councilmember Jim Dolan was absent. Key actions included adopting a $278.8 million tentative budget with amendments to the Classification and Compensation Study, a $194 million five-year CIP, and approving several intergovernmental agreements and contracts.

Consent Calendar

Approved the May 15, 2025 Budget/CIP Work Session minutes, May 27 Special Meeting minutes, and May 27 Regular Meeting minutes.
Ratified grant application to the Arizona Supreme Court Juvenile Crime Reduction Fund for Youth Court services.
Approved Fiscal Year 2025-26 Policy for purchases from governing body members.
Approved abandonment of a utility easement at 1831 Lantern Drive.
Approved Intergovernmental Agreement with Arizona Department of Water Resources for a Continuously Operating Reference Station site.
Approved Amendment No. 1 to NV5 agreement for Second Bridge project re-alignment on state lands.
Called an Executive Session for June 24, 2025 at 4:30 p.m.

Public Comments & Testimony

Joan Dzuro, citizen: Expressed support for the proposed compensation plan, calling it a reasonable first step to address underpayment of employees and urged the council to take care of city staff.
Corky Coiner, President of Lake Havasu Professional Firefighters Association: Thanked the council for proactive steps toward equitable pay, noted the plan addresses recruitment and retention challenges, and explained the psychological significance of step progression for firefighters.
Jason Lawson, Vice President of the Firefighters Association: Supported the proposal as the right direction to solve recruitment/retention issues and thanked council members for engaging with the association.
Bonny Toy, citizen: Suggested the council adjust the budget calendar next year to allow more time for discussion before the final vote.

Discussion Items

Five-Year Capital Improvement Plan (CIP) Adoption (Resolution 25-3842): Administrative Services Director Jill Olsen presented the $194 million five-year CIP ($69.6 million in FY 2025-26, including $25 million in grants). Projects included airport pavement reconstruction, drainage improvements, parks upgrades (restrooms, ADA, outdoor pool, fishing dock), public safety facilities (Fire Station 7, PD improvements), street projects (Second Bridge, Acoma Blvd., Jamaica Blvd. S.), wastewater and water system upgrades. Councilmember Campbell asked about expenditure limitation impacts; Ms. Olsen noted historically only about 50% of budgeted CIP is spent due to delays. Councilmember Diaz asked about airport projects mandated by FAA standards and the Fire Station 7 budget (total $4.5 million in FY26). The motion passed 4-2 (Councilmembers Diaz and Vice Mayor Lin voting no).
Tentative Budget Adoption (Resolution 25-3843): The original tentative budget totaled $277,326,640. Mayor Sheehy proposed an amendment to increase the budget by $1.5 million to $278,826,640 to fund parity for the Fire Department with the Police Department (including a 3.5% wage adjustment for all other employees in the open range). The amendment would bring the total wage increase from 7.2% to 8.8%. Discussion focused on the expenditure limitation, timing of the Classification and Compensation Study, and concerns about employee retention. Public comment supported the plan. After an executive session (6:50-7:00 p.m.) to discuss impacts on contracted positions, the motion to adopt the tentative budget with amendments passed 6-0.
Child Overwatch Presentation: Councilmember Campbell facilitated a presentation from Child Overwatch, a company offering AI facial recognition software to identify registered sex offenders in public spaces. They proposed a no-cost 3-month pilot at 2-4 city sites. Police Chief Troy Stirling expressed concerns: out of 85 registered sex offenders in Lake Havasu City, only 35 are notifiable, and none have restrictions on being in public spaces. Mayor Sheehy stated he was not interested in a pilot without proof of concept from other municipalities. No action was taken.
Other Public Hearings:
- Liquor License (Loco's Bar and Cocina): Approved unanimously.
- Construction Noise Ordinance Amendment (Ordinance 25-1363): Introduced to comply with new state law (SB 1182) allowing concrete pouring from 4 a.m. during summer (May 1-Oct 15) and other adjustments. Approved unanimously.
- Intergovernmental Agreements with Kingman and Bullhead City: Approved for municipal court weekend and holiday coverage services, reimbursing Lake Havasu City approximately $5,000 and $8,000 respectively. Both passed unanimously.
- Water Conservation and Reuse Project (Resolution 25-3844): Approved an agreement with the U.S. Army Corps of Engineers for a 75/25 cost-share ($2.078 million federal, $692,667 city) to convert three parks (Cypress, Jack Hardie, Rotary) to effluent water. Projected to save significant potable water (Rotary Park alone can use 1 million gallons/day in summer). Passed unanimously.
- City Magistrate Employment Contract: Approved for Mitchell Kalauli, July 1, 2025 to June 30, 2027, with a 3.5% salary increase. Passed unanimously.
- Traffic Signal Rehabilitation: Approved purchase from B&F Contracting, Inc. ($226,684.27) for upgrades at three intersections. Passed unanimously.
- Aggregate Materials Bid: Awarded to Campbell Redi-Mix for $364,580 for FY 2025-26. Councilmember Campbell recused. Passed 5-0.
- London Bridge Beach Asphalt and Cypress Parking Lot Project: Awarded to NPG Asphalt, Inc. for $322,525. Councilmember Campbell recused. Passed 5-0.

Key Outcomes

Resolution 25-3842 – Adopted Five-Year CIP (FY 2026-30) with a vote of 4-2 (Councilmember Diaz and Vice Mayor Lin dissenting).
Resolution 25-3843 – Adopted Tentative Budget for FY 2025-26 at $278,826,640 (amended) with a 6-0 vote, including:
- $1.5 million increase for Fire Department parity with Police Department.
- 3.5% wage adjustment for all other employees in the open range upon implementation of the Classification and Compensation Study.
Ordinance 25-1363 – Introduced (first reading) to amend construction noise code; final adoption scheduled for June 24.
Resolutions 25-3834 and 25-3835 – Approved intergovernmental court coverage agreements with Kingman and Bullhead City.
Resolution 25-3844 – Approved Army Corps agreement for water reuse project.
City Magistrate Contract – Approved for Mitchell Kalauli through June 30, 2027.
Traffic Signal Rehabilitation, Aggregate Materials, and Asphalt Projects – Approved as noted.
Child Overwatch – No action taken; council did not authorize a pilot program.
Future Meetings: June 24, 2025 (Final Budget Adoption) and July 8, 2025 (Property Tax Levy Adoption).
Meeting adjourned at 8:05 p.m.

Meeting Transcript

Good evening and welcome. I call to order the Lake Havasu City Council regular meeting, including our tentative budget and CIP adoption on Tuesday, June 10th, 2025 at 5:30 p.m. We'll now have an invocation from Mr. Michael Gagnon, followed by the Pledge of Allegiance led by Don Bitterbender and Rick Foster with the disabled American vets, the Lake Havasu City Vet Center. Michael Father God, I praise you. You are the mighty God, the King of Kings and Lords of Lords, the creator of the universe. You are mighty to save all that humble themselves and put their faith in the work of your son Jesus Christ. I stand in front of these members of council and townspeople and pray that your kingdom come and your will be done. I also ask that you give my brothers and sisters that sit here tonight, whether in whether in the attending seats or the members of the council, the strength that your spirit gives us stand by your word. For we do not wrestle against flesh and blood, but against principalities, against powers, against the rulers of the darkness of the heavenly places. Let us be the watchman that you command us to be let us stand for what is right and true. Let us stand with you, Father. Praise be to the one and only living God. I come to you with these things in the name of your son, the name above every other name, Jesus Christ. Amen. Yes, please. If um if you'd like to share a little bit about the disabled American veterans in the Lake House Center. I'm Don Bittenbender. I'm the past commander of disabled American Veterans, London Bridge, Chapter 27. Uh primarily, I just like to explain some of the things we do. Our biggest function is to provide service to veterans who need help in filing claims to the VA for service connected disabilities. Uh we're located at 2001 College Drive in Lake Havasu City. As you go into the county courthouse, we're just to the left, our interests there. The biggest thing that we're needing help with right now, if we could ask anybody that would like to be a volunteer driver for our organization, we provide transportation to veterans to the Phoenix Hospital, VA Hospital, to the Prescott VA Hospital, and we're now getting ready to start providing transportation to the community-based outpatient clinic VA Clinic and Havasu. We are very short of drivers. We have two vans. You do not need to be a veteran to be a driver, and you do not be a need to be a member of the DAV to be a driver. So we'd really appreciate anybody that would like to participate with us and help us provide this services to the veterans. Or we're in the phone book. So give us a call if you need a claim help or if you want to be a driver. Excellent. Thank you very much. Yes, thank you for everything it's you. Councilmember Campbell, did you have a question? Do you need a CDL license? I beg your pardon. Do you need a CDL license? No, you do not. No. What you will do, you will go, we will transport you uh to Prescott. You'll be fingerprinted. You need to have proof of insurance, just that you're insurable, not that your insurance is used to protect against the use of the vans. So it's just that the VA knows that you are insurable and you're and you're given a TB test. And they do a background check, but no, you do not need a CDL license. Thank you, and good luck. Thank you. Thank you. Thank you for being here, and thank you for the work you do for our veterans. All right, item four is our roll call. Miss Williams, if you please call the roll.

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