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HomeMy WebLinkAboutminutes.council.19861013Regular Meeting- Aspen City Council Oc ob r 13. 1986 Mayor Stirling called the meeting to order at 5:00 p.m. with Councilmembers Collins and Fallin present. CITIZEN COMMENTS 1. Jon Busch told Council he has j ust returned f rom a regional convention of the American Theatre Organ Society. Busch told Council he is still looking for an instrument for the Wheeler Opera House. Theatre organs are sometimes given to establishments. 2. Jon Busch told Council the trolley advocates are waiting for Council to receive the TDP. They have received new price figures on building a trolley from firms that have installed trolleys. Busch said the new price figures make trolleys becomes a reasonable alternative to buses. The TDP is going to recommend a shuttle and parking garage. Busch said the trolleys currently stored outdoors need more covering to protect the end platforms. Busch suggested, even if Council decides to sell the trolleys, they will have them another winter. The city should advertise and accept bids for the trolleys if they decide to sell hem. Mayor Stirling asked the city manager's office to look into this and report back to Council as soon as possible; seconded by Councilwoman Fallin. All in favor, motion carried. COUNCILMEMBER COMMENTS 1. Councilman Collins asked about the action taken requesting the Children's festival to refund $250. Councilman Collins said this was not done in a regular meeting and would like some discussion about the issue. Councilman Collins moved to add this to the agenda; seconded by Mayor Stirling. All in favor, motion carried. 2. Councilman Collins said he would like to know the next step for city hall remodel. Assistant City Manager Mitchell told Council thi s wil 1 be part of the capital budget discussion on October 16. 3. Councilwoman Fallin pointed out the ice rink has 3 locker rooms for boys and only 1 locker room for girls, which is not equipped for hockey equipment. Mayor Stirling asked the city manager's office to look into this and report back. 4. Councilwoman Fallin said she would prefer to postpone the railroad SPA hearings until after the November election in order to know how the electorate feels about the issue. Bil Dunaway said the voters would like to have some definite issues to vote 1 Regular Meeting Aspen Ct~Council October 13, 198 on, and the Council is the only one that can make the conditions. riayor Stirling agreed Council discussions will help the voters to make a determination on this. Mrs. Rowland said the electorate does not know enough facts and would like to see the discussion kept going. Council scheduled the public hearing for October 14 at 5:00 p.m. at the Wheeler Opera house with the other items to follow the railroad conceptual SPA hearing. The budget hearing wil l be at city hall at 3 p. m. 5. Mayor Stirling said he has had a request to explore an outdoor ice rink in Wagner park and would like the city's cooperation in determining the cost of this. Council scheduled this for the October 27 agenda. Council requested some information about last year's ice rink in Wagner. 6. Mayor Stirling reviewed the budget hearings; arts and non- profit October 14 at 3 p.m; October 16 at 1 p.m. capital improvement program continuing Oct 21 and 23. 7. Mayor Stirling said state amendment #4 prohibits increased state or local taxes without electorate approval in every two year elections. Council had decided not to do anything collectively, only individually. Mayor Stirling said he does not feel it is in th a citizen's best interest to tie the hands of local government. ORDINANCE #42, 1986 - Lease/Purchase Trucks Cindy Shafer, finance director, told Council one truck is for streets department, one for engineering. The leasing will be done through Jinco with interest at about 9 percent. Mayor Stirling opened the public hearing. There were no comments. Mayor Stirling closed the public hearing. Councilwoman Fallin moved to adopt Ordinance #42, 1986, to include final review the city attorney, on second reading; seconded by Councilman Collins. Councilman Collins asked why the city is doing this by lease purchase when over $200,000 is being budgeted out of the a sset re placem ent fund. Councilman Collins said he thought the city was going to purchase items. Councilman Collins noted this is a 5 year lease/purchase agreement, and asked if the city was committing itself to more purchases. Ms. Shafer said the city has made a transition from operating leases to lease/purchase agreements where the city owns the vehicle at the end of 5 years. Ms. Shafer pointed out lease/purchase agreements are subject to annual appropriation approvals. Ms. Shafer told Council about half the asset replacement fund is to pay the debt on the new 2 Regular -Meeting Aspen Citv Council October 13, 198 computer acquisition as well as some major streets department purchases . There is not enough cash left to do outright purchases. Ms. Shafer told Council the staff sends out these financing packages to bids . Councilman Coll ins asked if local financial institutions bid on these. Ms. Shafer said these are all notified, and occasionally they bid on these. Roll call vote; Councilmembers Collins, yes; Fallin, yes; Mayor Stirling, yes. Motion carried. ORDINANCE #43, 1986 - Trails and Wagner Park City Attorney Taddune pointed out the conveyance of trails from the city to the county is dependent upon the outcome of the November election. Mayor Stirling opened the public hearing. Assistant City Manager Mitchell said practically the city has been maintaining the trails. Taddune said the agreement provides the city cannot change use of the trail system without approval of the electorate. Mayor Stirling closed the public hearing. Roll call vote; Councilmembers Fallin, yes; Collins, yes; Mayor Stirling, yes. Motion carried. ORDINANCE #44, 1986 - Bass Park Lease Mayor Stirling opened the public hearing. There were no comments. Mayor Stirling closed the public hearing. Mayor Stirling asked if the city had obtained the right of first refusal. City Attorney Taddune told Council he had discussed this with Bass' representative and reiterated the city's interest in either right of first refusal or acquiring title to the property. Taddune told Council Bass' representative said the property has been assessed at $850,00, and Mr. Bass is not interested in selling. Taddune told Council Bass did not see any benefit to himself in offering the city a right of first refusal. Taddune noted in the lease agreement, the city wold be required to underwrite taxes assessed against the property. Taddune pointed out the lease is for one-year .consecutive terms. Councilman Collins moved to adopt Ordinance #44, Series of 1986, on second reading; seconded by Councilwoman Fallin. Roll call vote; Councilmembers Collins, yes; Fallin, yes; Mayor Stirling, yes. Motion carried. 1987 BUDGET 3 ReQUlar Meeting Aspen City Council October 13, 1986 Mayor Stirling said the Charter requires a public hearing on the budget shall be held by Council at least 15 days prior to the final day established by law to certify the mill levy, which is November 1st. Mayor Stirling opened the public hearing. Cindy Shafer, finance director, told Council the 1987 budget was prepared based on Council's policy indicating minimal increase in expenditures; a pay for performance pool of 3 percent of the wages; no revenue sharing anticipated in 1987. Ms. Shafer told Council should the city receive any revenue sharing funds, they will be used for police protection. The city's major revenue sources remain the same. The expected sales tax revenue has been increased 6 percent. Most departmental revenues remain the same. The water and electric fund revenues are based on costs to operate the departments, which were determined on the same guidelines as the general fund. Bil Dunaway suggested the general fund be broken down as to what it contains and what it does not. Ms. Shafer said for 1986, the sales tax revenues was projected at an 8 percent increase . Mayor Stirling continued the public hearing to October 27, 1986, as which time the mill levy will also be adopted. There is no recommended increase in the mill levy for 1987. RED ROOF INNS City Manager Anderson said the staff has been working on negotiations with the Red Roof and with Dick Butera to come up with a proposal for Council's consideration. Anderson told Council Red Roof Inns would like Council to adopt the presented ordinance on first reading because timing is critical. One of the elements is a refinancing of the note between Red Roof and the city. Red Roof owes the city $2,000,000. The proposal is this $2,000,00 will be paid in 1991 and the interest will be paid as follows; 3 percent 1987; 4.5 percent 1988; 6 percent 1989; 7.5 percent 1990 and 9 percent in 1991, for an average interest rate of 6 percent. These payments would be made quarterly. In lieu of the interest payment due in November 1986, the city will receive a lien on the f urniture and fixtures. The cash out would be no later than 1991. The final price of $2,000,000, contains a credit of $200,000 f or initial improvements required to be made immediately. Some of these are roof repairs, plumbing, tennis courts, pool, installation of a phone system with a maximum of an additional 5100,000 in improvements to be approved by Council. These would be credited upon final payment of the note. Anderson told Council the interest will be assessed on the entire 5 2 , 0 0 0 , 0 0 0 . If the assignee choose s to pay of f some of the 4 Regular Meetinct aspen City Council October 13. 1986 principle before 1991, the interest will be adjusted on that but not adjusted on inf us ion of the capital . Anderson said the city would have a revolving lien on the personal property at the hotel and restaurant operation for the term of the loan. Anderson said this lien would be only for replacements of the furniture and fixtures currently on site. The city would have claim on items added to the operation, only to the extent that they are not encumbered. Anderson said staff has negotiated a guarantee from Dick Butera for $450,000. City Attorney Taddune told Council Dick Butera has agreed to personally guarantee $450,000 over and above the fair market value of the lodge and the furnishings to the extent they do not satisfy the $2,000,000 note. If the city were to f oreclose and resell the property for 51,500,000, Butera would guarantee the difference between the outstanding principle and the purchase price. The amount of the guarantee would be lessened by the amount of improvements made by Butera. Butera is willing to commit a total of 5600,000, which is 5150,000 payment to reacquire the f urnishings and fixtures from Red Roof, upon which the city will get a first lien; a right of first refusal regarding any leases negotiated on any other furniture or fixtures; $200,000 worth of improvements required by the city to be installed; an additional 5100,000 to be approved by Council; and the 5150,000 to be guaranteed by Butera. Bil Dunaway asked if there were a time limit placed on when the improvements were to be done. Mayor Stirling said Council had discussed an outside date of June 1, 1987. Taddune told Council staff is still negotiating the details and the definite date could be agreed upon during this time. Bob Grueter, representing Red Roof, told Council since Red Roof took the property back from the prior owner, it has openly been on the market and he has discussed this with about 20 interested buyers. Mayor Stirling asked if any potential purchasers questioned whether they could approach the city to renegotiate the note. Grueter said potential purchasers have contacted the city about this note. Mayor Stirling said Council received a letter from an interested buyer indicating the city taking an active role in this transaction was not considered. Grueter told Council he has made it clear to any interested parties that the city's note would have to be dealt with. Taddune told Council everyone had been instructed to follow the same procedure and submit any proposals in writing for f urther consideration. Maxwell Aley said Council potential buyers have had this has been handled may Grueter pointed out it i~ and the community a chance to make not have provided Red Roof that is should be sure all an offer. The way that opportunity. trying to sell the 5 Regular. Meeting Aspen Citv Council October 13, 198 property; they have talked to innumerable people about this property. Grueter stated this was not listed in the real estate book because of the commission structure. Bob Klein told Council he has requested information about the operating costs, which he never received. Klein said he thought the negotiations were under the same terms and conditions of the note the Red roof held. Klein said the fact that the city is willing to renegotiate their terms and is willing to take a $200,000 loss, should be given to everyone to have a f air chance to come in under the same terms. Mayor Stirling said Council had hoped the personal guarantee might be stronger than presented. Anderson said the distinction in the amount is that it was never clarified how the credit was to be worked out. Mayor Stirling said he would have liked at $500,000 personal guarantee. Mayor Stirling said he would accept the $450,000 to be guaranteed but only allow $200,000 to be credited maximum so the guarantee would remain at $250,000. Dick Butera said he is purchasing a property which is worth about $1,400,000 for $2,150,000 and is proposing to spend 5450,000 to bring the property up to rentable standard and to pay Red Roof 5150,000. Butera said it is difficult to guarantee values that do not exist. Butera pointed out the building is run down, there are no bookings and no reputation. Butera said this is a distressed piece of property and has feels he has gone beyond the normal guarantees. Butera said this asset is not worth 52,150,000. Mayor Stirling said the upgrading of the property is very important. Mayor Stirling said the potential purchaser has a proven track record in Aspen in the hotel business. Mayor Stirling said the city is willing to sell the property with no money down, as well as negotiate an interest rate that is almost 2 points below the T-bill rate. Butera said this is not no money down. There is a payment to Red Roof of 5150,000 for the furniture and fixtures, and the property cannot be opened without spending 5200 , 000 . Mayor Stirling said the city is not the seller but is extending the length of the note, renegotiating the payment and not requiring any principle payments until 1991. Councilman Collins asked if the city has documents on how much and for what the previous owners put into the property. Taddune told Council when Red Roof initially look over the lodge, they installed the golf pro shop, the golf cart storage shed. Red Roof wanted to put on a new roof but could not negotiate that with the city. There have been discussion on the drainage and sewer. The water service line has been a problem over the past years. The exterior was renovated and landscaping was installed by Red Roof, the rooms were refurbished and the conference room was redone. Councilman Collins asked if the last owner did any 6 Regular Meetnq_ Aspen Citv Council October 13 , 1986 work on the lodge. Taddune said under the purchase agreement, they were required to repair the roof, which they did not do. Councilman Collins said he feels it is incumbent upon the city to make the best deal to most benef it the city. Councilman Collins said this may require putting this out to bids. Councilman Coll ins said the bidding process does take time; however, the only risk to the city is not having the lodge open this winter. Councilman Coll ins suggested approving this ordinance on first reading but also have invitation available to anyone who may have a better offer. Councilwoman Fallin said Council has been talking about this for a month; the lodge has been sitting empty for 6 months. Nothing may be accomplished by dragging this out another 2 or 3 months. Councilwoman Fallin moved to read Ordinance #51, Series of 1986; seconded by Mayor Stirling. All in favor, motion carried. ORDINANCE #51 (Series of 1986) AN ORDINANCE APPROVING AN AGREEMENT FOR MODIFICATION OF A PROMISSORY "NOTE" AND "DEED OF TRUST" BETWEEN RED ROOF INNS, INC. AND THE CITY OF ASPEN, COLORADO, AND ASSIGNMENT OF NOTE PROVIDING FOR THE SALE OF LOT 2, GOLF COURSE SUBDIVISION, COMMONLY KNOW AS THE RED ROOF INN, BY THE CITY OF ASPEN TO RED ROOF INNS, INC. IN THE AMOUNT OF $ 2 , 0 0 0 , 0 0 0 , AND ASSIGNMENT OF THE SALE TO T . RICHARD BUTERA SETTING FORTH THE TERMS AND CONDITIONS FOR SUCH MODIFICATIONS, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT AND ALL OTHER DOCUMENTS NECESSARY TO ACCOMPLISH SAID MODIFICATION AND ASSIGNMENT ON BEHALF OF THE CITY OF ASPEN was read by the city clerk Councilwoman Fallin moved to adopt Ordinance #51, Series of 1986, on first reading; seconded by Councilman Collins. Mayor Stirling said he feel this proposal, except for the personal guarantee, has the potential to meet the goals of the citizens. The property would be open this winter; it would be under the operation of a proven operator; the property will be upgraded $200,000. Mayor Stirling pointed out one of the worst things that can happen to property is to sit empty. Mayor Stirling said he would like, before final hearing, to see the personal guarantee increased to $250,000. Roll call vote; Councilmembers Fallin, yes; Collins, no; Mayor Stirling, yes. Motion carried. 7 Regular Meeting Ashen Citv Council October 13, 198 DONATION OF TREE City Attorney Taddune stated Council, on behalf of the city, may receive or refuse requests, gifts, etc. This is a proposal to solve a problem at the intersection of Mountain View drive and Cemetery Lane. Jim Gibbard, engineering department, said golf course superintendent is willing to accept this tree and the golf course can use the tree. Councilwoman Fallin questioned whether the tree can be moved and live, as it is very large. Gibbard said staff has had landscapers look at the tree, and they feel it can be moved. Councilman Collins moved Council accept the donation of a large blue spruce tree, which has a value of $2100, by Marjorie Brenner and David and Peggy Amory; seconded by Councilwoman Fallin. Mayor Stirling said the city has received two written estimates from landscapers outlining the value of the tree. Councilman Collins said he feel 5200 may be low to move the tree. Gibbard told Council he has worked with staff and a landscaper to come to this amount. All in favor, motion carried. REQUEST FOR ENCROACHMENT - Independence Lodge Jay Hammond, city engineer, pointed out during the remodel, the new entrance to the lodge was placed on the west side of the building on the Galena mall . The entryway has an encroachment license at grade. The applicants have indicated they would like a permanent awning over the existing encroachment. The HPC and parks department have recommended some conditions, including completion of the columns, painting the entryway, and repair and replacement of mall bricks in that area. Stan Mathis, representing the applicant, told Council they had been notified the mall brick repair was insufficient at the time was done. Mathis instructed the construction company to redo it and the brick work was accepted at the time of certificate of occupancy. Mathis said if it can be redone within the warranty, he has no problem with that. Mathis told Council one of the original conditions from HPC was grill-like woodwork between the new columns, which did not get implemented. That has been installed, and the applicant has agreed to paint the interior alcove. Mathis said the awning is needed to protect the stairs. Mayor Stirling asked why the awning has to go so far north. Mathis said the awning should cover the entire indentation of the entry. Mathis told Council they are proposing to cover the rest of the brick work with trompe 1' oeil, which has been approved by HPC. Councilwoman Fallin said the staff comments are that the 8 Regular Meeting Aspen Citv -Council October 13 . 198 snow fall be removed by the Independence Lodge and would like this as a condition in the motion. Councilman Collins moved to grant the encroachment license with conditions 1) that the brick work be redone; 2) that the alcove be repainted; 3) the columns be installed and 4) that snow shedded by the awning be the responsibility of the Independence lodge; seconded by Councilwoman Fallin. All in favor, motion carried. ORDINANCE #45, SERIES OF 1986 - Water Extension Agreement- Maroon Creek Homeowners Councilwoman Fallin moved to read Ordinance #45, Series of 1986; seconded by Councilman Collins. All in favor, motion carried. ORDINANCE #45 (Series of 1986) AN ORDINANCE APPROVING THAT WATER MAIN EXTENSION AND SERVICE AGREEMENT BETWEEN THE CITY OF ASPEN, COLORADO, AND THE MAROON CREEK RANCH HOMEOWNERS PROVIDING FOR THE SUPPLY OF WATER TO THE HOMEOWNERS WITHIN THE CITY' S WATER SERVICE AREA 5; SETTING FORTH THE TERMS AND CONDITIONS FOR THE SUPPLY OF WATER BY THE CITY TO SAID HOMEOWNERS; AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT ON BEHALF OF THE CITY OF ASPEN was read by the city clerk Councilwoman Fallin moved to adopt Ordinance #45, Series of 1986, on first reading; seconded by Councilman Collins. Jay Hammond, city engineer, told Council the Maroon Creek homeowners obtain their water supply from a pipe in the stream in Maroon creek and pump it to their subdivision. Hammond said the homeowners were concerned when the Maroon creek hydro plant was proposed that the uses of water in the hydro plant and the return of that water to the stream could effect water quality at their in-take. Hammond told Council a number of options were discussed, and the homeowners have agreed to tap to the raw water flume. Hammond said this option is minimal in terms of expense. Mayor Stirling asked if the $ . 50 per 1 , 000 gallon delivered is a standard rate. Assistant City Manager Mitchell said this is a minimal rate to take care of any repairs. Mitchell told Council this agreement contains the conditions the county placed on the approvals for the hydropower plant. City Attorney Taddune pointed out the subdivision is not interested in annexation, and they have requested the paragraph ref erring to that be deleted. Taddune said the reason for this water service agreement is to 9 Regular Meeting Aspen City Council October 13. 198 put the homeowners in the same position they would have been in if the hydro power plant were not to be constructed. The homeowners are insecure as to the effects the facility may have on their water. Roll call vote; Councilmembers Mayor Stirling yes; Collins, yes; Fallin, yes. Motion carried. SELECT ION OF LIGHTING CHOICES FOR COMMERCIAL CORE AND MAIN STREET Jay Hammond, city engineer, told Council the specific choice of the luminares for the lights has been studied by the CCLC for the last year. The sample block was installed in October 1985 and different luminares, bulb and globe combinations have been tested. The selection of the proposed mercury vapor Styletone is based on factors including the appearance of the light, the color rendition generated by the light, the glare of the source, the efficiency of the light source, and the efficiency of the light output. The CCLC considered maintenance costs, w hick has a direct relationship to the life of the bulb, and also the lighting created at the street level. Hammond told Council the lighting level at the streets is a combination of the output of the luminare as well as the spacing of the standards. Hammond gave Council a spread sheet with comparisons with a variety of mercury vapor Styletone lamps and 3 options of incandescent lamps that generate the same light level as that of the sample block. Currently, the sample block is a single 100 watt mercury vapor Styletone. Clem Kopf, project consultant, told Council if the light level in incandescent in the commercial core were to duplicate the level of light in the mall, there would be an increase in annual operating cost of $60,000. Councilwoman Fallin said she does not like of the lights in the sample block. Councilwoman Fallin asked about using lower watt incandescent bulbs. Kopf told Council using a 50 watt bulb produces .04 foot candles, which is just above moonlight. Kopf said the city should have a 6 to 1 uniformity ratio light to dark spots on the ground in pedestrian areas, and a 3 to 1 ratio on Main street. Kopf said the tested a 75 watt bulb and felt the light level for seeing in the intersection was inadequate. Kopf told Council the mercury vapor lights decrease in lumen out put continuously from the day they are installed. Kopf said mercury vapor lights could be installed on two arms on some of the light standards. Kopf told Council to obtain a minimum safety level, one has to put up with a degree of brightness. Mayor Stirling said the city has installed a test block and has received objections to these lights. Mayor Stirling said the city, HPC and CCLC has spent a lot of time and effort on this 10 Regular Meeting Aspen Citv Council October 13 , 1986 project and have tried to create a balance between ambience and a reasonable economy. Kopf said the city has spent 53,000 per pole to get the highest quality poles and luminares. The city can change the top of these poles to almost anything. Gary Plumley, CCLC, pointed out the incandescent bulbs currently in the mall are often not functioning. Jon Busch said if the city chooses incandescent, they will have to also have a regular replacement program. Georgeanne Waggaman, HPC, has been working to get a soft lighting program on the historic buildings around town rather than pinpoints of lights. The present lights fight with the historic buildings in town. Councilwoman Fallin said it seems silly to spend a lot of money on antique fixtures and then put mercury vapor lights on them. David Fleisher agreed the lighting program may be too bright in the downtown, contrasted to the darkness of past years; however, the safety of Main street should not be compromised. Mayor Stirling said he would like to see a compromise look at the lighting program. Kopf recommended Main street at 1/ 2 foot candle and downtown at 1/ 4 foot candle . Kopf said the engineering standards would not be appropriate for this community, and they are recommending using 1/4 of these standards. Joe Wells said he feels it is a mistake to expect the 1 ights to provide both a safe condition and one that the community will accept. Wells said he feels the lights should be toned down and also be supplemented with another type of fixture. Wells said he feels there will be a bright light source in the non-milk globes, regardless of the bulbs inside. Kopf said the Council has to decide the look and the level of safety they want to end up with. If safety is not a factor, the lights can be made any level of lumination. Councilman Collins said he has not heard there is a high degree of safety problems in the downtown area. Fleisher said what bothers people is the intensity of the lights. Fleisher suggested the city get the correct level of ambience and then supplement this in the areas that need it. Ms. Wagganman agreed the problem is not the actual lumination but the bright globes. Kopf said the light standards could have two globes, each containing half the 1 evel of 1 umen output . Kopf said thi s will cost about 5200,000 plus annual operating costs. Kopf told Council there are three kinds of high intensity discharge lamps, high pressure sodium, with an orange appearance which was unacceptable to the CCLC for use in Aspen; a metal halide and the smallest size puts out 14,000 lumens, which is 4 times the lights in Aspen. Kopf told Council they have selected what they felt was the best given the criteria to work with. The incandescent lights were rejected because of the cost and maintenance. 11 Regular Meeting Aspen Citv Council October 13. 1986 Kopf suggested re-Tamping the test block at lower wattages. Mayor Stirling said he would like to see incandescent and low level mercury vapor in the test block. Council scheduled a site visit of the test block for Monday, October 20 at 8 p.m. Mayor Stirling said Council is grateful for all the time the committees have spent on the 1 ighting program. The Council is concerned about the aura in downtown and is trying to find the best balance between lumination and safety. Kopf recommended 175 watt incandescent on Main street to maintain the uniformity ratio. Council agree there may be a need to different levels of lighting in different parts of town. CASTLE CREEK PEDESTRIAN BRIDGE - Construction Staging Site Chuck Roth, engineering department, requested permission to use space on the Marolt property as a staging area until January lst. Roth said there is a flat area with no vegetation that they would like to use for a truck and equipment for this project. Roth said the site probably is not visible from the highway; if it is, this can be relocated to where they are staging for the electric project . Councilwoman Fallin moved to approve the staging site for the pedestrian bridge; seconded by Councilman Collins. All in favor, motion carried. ORDINANCE #47. SERIES OF 1986 - Increase Electric Rates Councilman Collins moved to read Ordinance #47, Series of 1986; seconded by Councilwoman Fallin. All in favor, with the exception of Mayor Stirling. Motion carried. ORDINANCE #47 (Series of 1986) AN ORDINANCE ADOPTING A NEW RATE SCHEDULE FOR RETAIL ELECTRICAL SERVICE AND ADDING A NEW SECTION 23-26 TO THE MUNICIPAL CODE, TO AUTHORIZE THE IMPOSITION OF A SERVICE CHARGE FOR THIRTY ($30.00) DOLLARS FOR EACH TURN ON AND EACH SHUT-OFF OF ELECTRICAL SERVICE was read by the city clerk Cindy Shafer, finance director, told Council this rate increase is based on the 1987 budget and would be effect in January 1987. This increase is established by the existing rate setting methodology, tying the rates to the budget. There are three sub- rates in the rate structures; purchase power rate, residential city facilities and commercial city facilities. Ms. Shafer said city facility costs are all costs to operate the system, 12 Regular Meeting Aspen City Council October 13 , 1986. including debt and any existing budget transfers. The purchased power cost is recovered through the purchased power subrate. Ms. Shafer told Council this rate increase will cover the cost of the 1987 budget costs. If no rate increase is passed, the electric fund will be operating in a deficit f or 1987. The electric fund for 1986 includes $210,000 Castleridge settlement, which would cover any deficit. Ms. Shafer said if Council chooses not to approve rate increases, there may be some alternatives like which items should be recovered through the costs in the electric fund, asset replacement fund transfers, other department transfers, the rate to pay f or Ruedi power, as well as a different allocation between commercial and residential rates. Mayor Stirling pointed out the increase in Ruedi per kilowatt hour rate went from 3.5 to 4.5. Ms. Shafer told Council the Ruedi cost increase was anticipated at the time the project was started, and the reason for the difference is that the 3.5 cents did not cover any debt service. In the initial year, the debt service was covered by the bonds proceeds. Ms. Shafer said the city and county set the rate for Ruedi power, which is cost plus 20 percent to fund the reserve. Ms. Shafer said Ruedi power is a high rate but was anticipated to be high because the city chose to finance the debt over 15 years. The plant will have a longer life than that. Councilman Collins said it seems like the city is subsidizing a generating plant that was supposed to make money. Ms. Shafer said implementation has taken longer than anticipated. Also, the city pays Ruedi the cost to operate the plant plus 20 percent into the reserve fund. Mayor Stirling said he feels the timing of this increase is very difficult because the overall electric system has been having a lot of problems and has not been reliable. There will be no benefits this winter from the undergrounding improvements. Mayor Stirling said he does not feel an increase in rates will be palatable by the users. Councilwoman Fallin asked how the city could change the Ruedi rates when they are in the agreement with other governmental entities. Ms. Shafer suggested this rate structure would have to be negotiated with the county. Ms. Shafer said just to cover the cost of operation would be 4 cents per kilowatt hour. Ms. Shafer suggested investigating restructuring the debt to 20 years. Council said staff should look at restructuring the debt as well as scheduling a meetin g with the county commissioners to discuss the Ruedi power rate. Council agreed these should be done bef ore the electric rates are increased. Ms. Shafer asked Council how they feel about the residential versus commercial rates. Ms. Shafer explained the rate 13 Reaular Meetina Aspen Citv Council October 13, 1986 difference is in keeping with the city facility subrate for commercial and residential and a historical ratio that has been used. Councilman Collins said his concern is automatically raising both the electric and water rates each year. Councilman Collins said he feels the city should make the budget fit the revenue that is available. Ms. Shafer noted the major cost in the electric fund is the purchased power rate. Ms. Shafer told Council after this increase, the average increase will only be about 3 percent. 1987 requires going to two cost recovery systems and that has made the rate increase high. Council asked staff to address the items brought up before they vote on this ordinance. ORDINANCE #48, SERIES OF 1986 -Water Rate Increase Councilman Collins moved to read Ordinance #38, Series of 1986; seconded by Councilwoman Fallin. All in favor, motion carried. ORDINANCE #48 (Series of 1986) AN ORDINANCE AMENDING DIVISION 3 OF ARTICLE III OF CHAPTER 23 OF THE MUNICIPAL CODE OF THE CITY OF ASPEN, COLORADO, ENTITLED "WATER RATE AND CHARGES" (THEREBY AMENDING ORDINANCE NO 18-1984) BY INCREASING CERTAIN WATER RATES AND CHARGES was read by the city clerk Mayor Stirling said this is different than the electric rate because it is a reformation of the entire rate structure. The rates are more equitably distributed in the water rate system. Without the computer program available to implement the new water management system, the city has to make an interim water rate increase. Cindy Shafer, finance director, told Council one of the problems has been gathering information for the new water rate structure. Ms. Shafer told Council if they do not improve these rates, the water rate structure becomes effective January 1, 1987, which will be almost impossible for staff to deal with given the lack of data and computer program. Ms. Shafer told Council they will have to adopt some interim structure until the new water structure can be put into effect. Ms. Shafer told Council in order to meet revenue projections, the rates would have to be increased 40 percent. Ms. Shafer is recommending a 10 percent increase until the new rate structure is implemented. Ms. Shafer told Council when the 1986 budget was prepared, tap fees were estimated at $600,000; some problems resulted from the anticipation of the Aspen Mountain Lodge project. This summer was very wet and the monthly usage was low. If no rate increase is approved for 1987, the water fund will have a decrease in cash of $510,000 and would require a subsidy from the general fund. 14 Reaular Meeting Aspen Citv Council October 13, 1986 Jim Markalunas told Council since 1981 water consumption has been down due to unusual amounts of rain. Markalunas said the city should adopt a system of fixed charges for fixed costs. When the water usage drops, the city's water department still has fixed costs and debts to pay. Another factor influencing the revenue is mandatory metering. Markalunas said the flat rate customers have been supporting the water fund and have been paying 2 and 3 times the normal water bills. Ms. Shafer said the situation in the water fund will become better as the new water ordinance is implemented. Councilwoman Fallin moved to table Ordinance #48, Series of 1986, until October 27, 1986; seconded by Mayor Stirling. All in favor, motion carried. UEUE SYSTEMS COMPUTER CONTRACT City Attorney Taddune explained this agreement will be superceded by a lease/purchase agreement. Jim Considine, data processing director, told Council staff is still working on some of the clauses in the agreement. Taddune said the city is subject t o open disclosure laws, and the confidentiality clause needs to be worked out. Considine pointed out the agreement states Queue will not be liable for any indirect or special damages. If the computer system does something to how the city works, they will fix it but not be liable for the damage that results. Considine said Queue has agreed to add a clause that this does not intend to limit the liability for personal injury or damage to tangible property caused by Queue's negligence. For instance, Queue will fix utility billing software, but will not reimburse the city because the billing went out late. Taddune told Council the city will not accept the software until sure it will run adequately. Considine explained the contract is set so the city is buying one piece of software from Queue, and based upon experience, has optioned other software. The majority of the system is hardware and programs to run that. Taddune noted the city and county are jointly funding this acquisition. This agreement is before Council so they can get a $12,000 reduction in the purchase price. Monies have already been appropriated by Council for this purchase. Taddune said this agreement will be assigned to a lessor, which will require an ordinance. Councilwoman Fallin moved to approve the computer hardware/software agreement between the City of Aspen and Queue Systems, Inc; seconded by Councilman Coll ins. Councilman Collins asked if this cost is split 50/50 between the city and the county. Considine answered it is structured so the city is paying for software directly attributable to their operations, as is the county. Councilman Collins asked what the 15 Regular Meetinct __ _Aspen Citv Council October 13 , 198 modification definition is. Considine told Council as part of the process of making a decision, staff went through Queue's software in detail and worked out modifications the city and county would want in order to make it work. Considine said this required several weeks of staff and vendor t ime, and the city agreed to pay for this process to know up front how much work it would take to make this software work. All in favor, motion carried. Councilwoman Fall in moved to suspend the rules and extend the Council meeting to 9:30 p.m.; seconded by Mayor Stirling. All in favor, motion carried. WHEELER OPERA HOUSE - Air conditioning Construction Documents Wayne Pleasants, technical director, reminded Council they had approved $81,000 for study and implementation of an air cooling system for the Wheeler. Pleasants told Council staff went to Potopa-Mancini, the original contractor for the air ventilation system, who took, and weeks later, turned the job down. This caused not being able to install the air cooling system b of ore the summer season. Pleasants said staff has the study, they would like to go to construction document phase and use the engineers that did the study for the air cooling systems. This firm has the documents and the inf ormation necessary and would be less costly to the city. Pleasants told Council this step is necessary to get the various Board approvals, like Board of Adjustment, P & Z, HPC. Pleasants told Council the recommendation from the study is to add the air conditioner t o the roof. The Wheeler Board has agreed to do this in a stepped process. Pleasants said they started out with an air exchanging unit on the roof to pull the hot air out of the attic, add more air flow inside the auditorium and increase the other ventilation units to 100 percent outside air and interlock their controls to work when needed. Pleasants told Council this summer the staff increased some of the air handling, renovated some of the units and removed damper units, the air flow was increased. Staff found this did not work and decided to add an air washer unit, adding $16,000 to the cost. This will give two systems to work from; next summer if they find they need thinned and ref rigeration, that will be discussed next fall. Pleasants told Council the Wheeler Board has been discussing funding of the air conditioning system with private donors. Pleasants said the $8700 request is part of the total already funded by Council and is just for construction documents. Pleasants said he has to go through approval processes and then go to bid in about 30 days. Councilwoman Fallin asked, if Council has already approved $81,000, why each installment has to be approved. Assistant City 16 Regular Meeting Aspen City Council October 13 , 1986 Manager Mitchell reminded Council they have been concerned about the solution at the Wheeler, and the Wheeler staff does not have the authority to commit to an 58000 contract. Pleasants told Council, due to some problems with the architect and construction manager, when staff opened boxes of the air handling system there were no controls in them. Mayor Stirling asked if there was any recourse for the city. Pleasants said the recourse time is long gone. Mayor Stirling said the city should keep working on the Wheeler to get it in the best shape possible. Councilman Collins asked about the size and shape of the roof unit. Pleasants said the roof units i s 5 feet 6 inches by 12 feet by 6 feet wide and is the smallest unit staff could come up with to handle the amount of air to be moved. Mayor Stirling asked if this will be visible from the street. Pleasants told Council it will be present f rorn Hyman avenue and from the second floor of the Jerome. Councilman Collins asked if Council could condition this on favorable response from city Boards. Councilman Collins moved that RMH Group be authorized to complete construction documents necessary to put out to bid for the HVAC system at the Wheeler Opera House conditioned on favorable review of the appropriate Boards; seconded by Councilwoman Fallin. All in favor, motion carried. Pleasants told Council due to all the Boards review necessary, this will put the project at the end of the fiscal year. He will need to carry this project over to 1987. CITY HALL FIRST FLOOR INTERIM REMODEL Assistant City Manager Mitchell told Council in order to house the new computer, there will have to be some modifications to the first floor. When staff looked at this, they also recommended putting finance on the first floor. The estimated cost is 59740, county's share of 51850, net cost to the city of 57 890 to be spent out of the $109,000 from city hall renovation. Mayor Stirling said he is reluctant to spend any more money on city hall, and asked how this would fit into the total renovation of the building. Mitchell told Council any renovation work on city hall is about 9 months away, and the money will have to be spent to house the computer, which is arriving in December. Mayor Stirling said he would prefer to table this to the budge session October 16, when Council can meet the with architects and see the plans for renovation. Mayor Stirling moved to continued VII (m) to October 16 during capital budget session; seconded by Councilman Collins. All in favor, motion carried. CITY MANAGER DUPLEX 17 Regular Meeting Aspen--City Council October 13. 1986 Councilman Collins reminded Council there are two lists for this duplex, safety items to bring the residence into conformance with the building code, and improvements and replacements to bring the duplex up to some standard of living. Councilman Collins said the city provided the land for these units , and the employees were allowed to do their own building and to include "sweat equity" in construction of the units. Councilman Collins told Council in this particular unit, there were a number of deficiencies and variances in construction from the standards. Councilman Coll ins said the committee looked at the items to bring the unit up to code. The other items were to improve certain standards that a normal resident would expect, which are outlined on page 2 and which add to the value of the house. Councilman Collins said these items should be added to the estimated price. Councilman Collins said the opinion of value is $280,000 less the land of $90,000 for a value of $190,000, subtracting commission of 511, 400 for a total of 517 8, 600. There are items that do not exist at the house like two skylights, central vacuum system, sliding door, missing accessories for an assigned value of $2,300 subtracted from the value for a total of 5176 , 300. Councilman Collins said the committee added the amenities that needed to be replaced, like atrium doors, the work, replacing two wood stoves, washer dryer, hanging fan, etc. which the committee felt added to the value of the house. These additions were $13,145 added to the net base value for a rounded off total of $189 , 500 . City Manager Anderson told Council the cost and the value in some of the items are not the same price and $15,725 is recommended to be spent plus $2760 remaining to be authorized. Councilwoman Fallin said Council authorized $18,500. Anderson said there is 52760 more than Council authorized to be done plus $15,725. Mayor Stirling said he feels the washer and dryer should be covered by the purchaser. Councilman Collins said the committee felt that should stay on the list and at such time the house is sold, they will be part of the improvements. Anderson told Council these are the type of items he would finance if he were doing a private purchase. Anderson told Council the previous owner removed many items from the house, like electric switch plates, hot tub and left a hole. Anderson said these items should add to the value of the house and would be paid for in the financing. Mayor Stirling said these items make the unit a more sellable unit and protects the city's investment. Council accepted the formula arrived at by the committee. Mayor Stirling pointed out there are 3 proposed options for financing, two with the city financing the unit, and one with private financing. Mayor Stirling said he would prefer not to have the city financing the unit. Mayor Stirling said the costs 18 Regular Meeting Aspen Cit~_Council October 13. 198 are very close. Anderson said he will be able to have in equity only 5 percent of the purchase price of this unit and cannot come up with the down payment necessary to finance this totally on the private market. Anderson said whatever portion the city finances, it will be set up so that the city will make more on the money than through private financing. Anderson said he can get the best rate if he can get the price to 5133,000. Anderson said he needs to be able to make up the difference between his 5 percent and the minimum needed of 20 percent. Mayor Stirling asked if the city has the ability to make private loans. Taddune said if it is done in an installment sale, as opposed to a personal loan, it can be done. Anderson told Council he would be paying this through monthly payments and a large lump sum. Mayor Stirling said his preference is to see the city get 5151,000 and carry 529,500. Councilmembers Fallin and Collins agreed. Mayor Stirling asked about doing a balloon in advance of 25 years and amortize it out. Mayor Stirling said he would rather see a shorter term on the second with a balloon in 5 or 7 years. Anderson said he would like it to balloon out as long as possible. Mayor Stirling suggested a balloon in 10, amortized in 30 with a variable rate. Anderson proposed to look at what the city makes on CDs and typical tracking. Mayor Stirling moved to authorize a ceiling of 519,000 for continued repair and code work and the additional added value items in the memorandum; seconded by Councilwoman Fallin. All in favor, motion carried. STARR ENTERPRISES REPORT-ON GOLF TOURNAMENT Tim Vanatta, leisure services director, said the city approved an agreement in June 1986 to have a golf tournament. Vanatta said an event of this magnitude and quality takes some time to put together. Vanatta asked that the contract be extended to 1987. Valerie Allen, Starr Enterprises, told Council she has met with some of the pros and they ar very excited about an event in Aspen. Ms. Allen recommended scheduling the event for August 31, 1987. This will be a one day pro am 18 hole tournament. Mayor Stirling pointed out the city has already allocated $10,000. Mayor Stirling moved to direct Starr Enterprises to continue working with staff in an effort to firm up the event, looking toward August 31, 1987, and that the current contract be amended to reflect 1987; seconded by Councilman Collins. All in f avor, motion carried. USE OF WHEELER FOR CITY PROGRAMS Mayor Stirling noted earlier this year Council sponsored a free concert at the Wheeler. There is an evening planned for 19 Regular Meeting Aspen CitX Council Qctober 13. 1986 November, "Aspen - A Historical Perspective", a lecture and film, which will be a free event . SCHOOL CROSSING SIGNS Council requested staff keep them posted on the progress. Council would still like to see the alternatives for the school crossing before the stat mandates a sign. CON SENT AGENDA Councilwoman Fallin requested that Of Grape & Grain's renewal be withdrawn from the consent agenda. Councilwoman Fallin said an investigation was done by the juvenile officers and has been turned over to the district attorney's office. j No charges have been filed. Councilwoman Fallin said she has talked to the police department and this seems to be an isolated incident; this is not a known place for underage kids to buy alcohol. Councilwoman Fallin moved to approve the consent agenda with the exception of Of Grape & Grain's renewals; seconded by Councilman Collins. All in favor, motion carried. The consent agenda is Liquor License Renewals - Aspen Grove Cafe; Carl's Pharmacy; O'Leary's; elk's Club; August 11, 1986, minutes. REQUEST FOR REFUND OF DONATION Councilman Coll ins said the city had requested a refund of a donation of $250, which is unusual. Councilman Collins said the Council should legalize this by formal action at a Council meeting. Councilman Collins said he had no opportunity to hear the response and it is a matter of hearing both sides of the issue and deciding to approve or disapprove. Mayor Stirling said he raised the issue at a budget hearing and it was a unanimous decision of the four Councilmembers present to write a letter asking for a refund of Council's donation. Councilman Collins said he is addressing the procedural aspect of Council action. Mayor Stirling moved that the letter sent to the Crises Center be submitted and made part of the public record; seconded by Councilwoman Fallin. All in favor, with the exception of Councilman Collins. Motion carried. t~ Kathryn S Koch, City Clerk 20