HomeMy WebLinkAboutminutes.council.19861028Continued Meeting Aspen City Council October 28, 1986
Mayor Pro Tem Walls called the meeting to order at 5:05 p.m. with
Councilmembers Fallin, Isaac and Collins present.
OUTDOOR ICE RINK
George Pucak said staff was requested by Council to look a the
feasibility of an outdoor ice rink at Wagner park. Pucak
reminded Council the city did an experimental refrigerated ice
unit on Wagner park in March. Pucak told Council the city has
attempted several outdoor rinks with some success. In Wagner
Park has a lot of solar exposure and fluctuating temperature
ranges. Pucak said the city could spend a lot of time and money
and not guarantee a satisfactory skating service. Pucak told
Council many factors influence the surface besides sun; wind,
dust, animals. The surface would have to be large enough to be
maintained by a surfacer. There would have to be some type of
control over the rink, there would be exposure to the city of
some liability, there are noise and light impacts to the
surrounding community. Pucak said there is some potential f or
damage to the grass and irrigation piping of Wagner park.
Pucak told Council staff contacted other areas in Colorado that
have outdoor natural ice rinks and found there is a unique set of
circumstances to each town. Some towns use lakes that are
- already in existence and have a capacity for large masses of
frozen ice. Some of the towns are located in valleys with shade
and protection. Pucak said the situation at Wagner would require
the berming of a retaining wall and a leveling of the park f or
the skating service. Pucak said alternatives for a community
skating area would be at Herron park, low along the river with a
natural hollow and shading from the trees. The golf course pond
is also an alternative if staff could stop the water from flowing
through it . Mayor Pro Tem Walls asked how much use the golf
course pond got when it was used as a skating area. Pucak said
it was fairly successful, the parks department is very close to
the pond. The problem is the water flowing through the pond,
when it dropped in level the skating surf ace was ruined.
Councilwoman Fallin pointed out the reason this is before Council
for discussion is to have a tourist amenity close to downtown.
The town has an ice rink for locals. Pucak said the problems in
Wagner park are keeping the ice surface, getting to the rink in
skates, no place to sit and put skates on, no place to rent
skates. Pucak said the feasibility study may recommend a proper
sheet for Wagner with a permanent piping system and buried
refrigeration plant. Pucak said the city should still have to
consider shading or covering the surface.
Councilwoman Fallin moved that the city not do an outdoor ice
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Continued Meeting Aspen City Council October 28, 1986
rink; seconded by Councilman Isaac. All in favor, m otion
carried.
GMP ALLOCATIONS
Councilwoman Fal l in lef t due to conf 1 i ct of interest . Steve
Burstein, planning office, presented Council a resolution
breaking out the buildings in the CC, C-1 district Council
discussed and approved last night. Burstein brought up (f) the
number of employees for the Hunter Plaza. Burstein said staff
feels the housing a uthority ought to have a chance to review this
to see if the employees generated should be changed or not.
Burstein added language to the resolution "subject to the housing
authority's approval in this regard". Burstein said decreasing
the FAR could effect the numbers of employees generated, and the
housing office should have a chance to review this. Councilman
Isaac said he would prefer to leave it the way Council decided at
their last meeting.
Councilman Isaac moved to approved Resolution #37, Series of
1986; seconded by Councilman Collins.
Councilman Collins asked how the cash-in-lieu payment is
calculated. Burstein said it is based on the percentage of
employees generated then on so much per employee. Burstein said
for low income it is $20,000 and for moderate income it is
$12,300. Mayor Pro Tem Walls asked why the cash-in-lieu is
higher for low income than moderate. Burstein said it is
considered the greatest commitment and if one is deed restricting
to low income, they are making the greatest compensation to the
community.
All in favor, motion carried.
ORDINANCE #48, SERIES OF 1986 - Water Rates
Cindy Shafer, finance director, told Council staff is projecting
at the end of 1986, there will only be 52,000 in the water f and
balance. The reasons for this are a decrease in expected tap fee
revenues, mainly due to not building the Aspen Mountain Lodge.
The monthly revenues in the water plan were reduced 5120,000
because of the wet summer. Ms. Shafer pointed out totalling the
commercial, residential and wholesale revenues for 1986 is
51,328,000; the debt in the water fund for 1986 if 51,524,000,
which is an indication of the problem in the water fund. Ms.
Shafer said without a rate increase in 1987, there will be a
negative cash flow as well as a negative balance.
Ms. Shafer said there have been water rate increases over the
past 5 years at 10 per cent a year. This was part of the
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Continued Meeting Aspen City Council October 281__198
X9,000,000 water management improvements approved by the voters
in 1981 and is what most of the debt service represents. Through
1988, there is $300,000 a year that is old debt service, the rest
is debt service on the $9,000,000 bonds. Ms. Shafer showed some
rate comparisons with and without the proposed rate increase and
how this would effect an average water consumer.
Bob Anderson, city manager, pointed out the city has already
incurred the debt for the water system, whether there was growth
or not. Anderson showed the increases Council has approved and
what the staff projected as needed. The variances are due to
higher projected tap fees as well as a 20 percent increase that
was not approved. Councilwoman Fallin said when the city
proposed the $9,000,000 ballot issue they also told v oters t he
water rates would go up to pay for this program. Assistant City
Manager Mitchell told Council the city put out a detailed
brochure showing the improvements the city was planning as well
as indicating the rates would go up 10 percent a year for 5 years
as well as the tap fees increasing 20 percent a year for 5 years.
Councilwoman Fallin said when the voters approved the new water
system, they knew they would have to pay for it with rate
increases over a number years.
Ms. Shafer noted early in 1983, staff realized the planned
increases would not be enough for the water f und. There was no
to p fee increase in 1982, and this in combination with how the
bonds were issued made the debt higher than originally
anticipated. Ms. Shafer told Council she has not included an
increase in tap fees; however, if Council is interested that will
alleviate some of the problems in the monthly rates. Ms. Shafer
explained the way the monthly rate ordinance works, the taps fees
are projected first and monthly revenues make up the difference.
Any increase in tap fees would reduce the increase in monthly
revenues. Ms. Shafer told Council tap fees were intended to
cover 60 percent of the debt; they never have and probably won't.
Bil Dunaway asked why the water department needs to transfer
$194,000 to the general fund in 1987. Ms. Shafer answered that
is the expense allocation transferred by all enterprise funds.
This represents all departments within the general f und w ho do
work f or other funds. Anderson told Council this is a typical
accounting practice in cities. Ms. Shafer said this transfer is
based on the percentage of time departments spent doing work f or
other funds. Anderson told Council what is needed for the water
fund is a 40 percent increase in revenues, and he feels Council
should enact a 20 percent increase. Dunaway said the water
customers should not be penalized because the city made a mistake
and did not invest the monies. Mayor Pro Tem Walls said this has
to be paid for somehow. Mitchell told Council the investment
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Continued Meeting Aspen City Council- October 28, 1986
mistake effected the capital improvement plan. The city cut out
projects because of that; this does not effect the operating
costs.
Councilwoman Fallin said she will support a rate increase;
however, tap fees ought to be increased as well. Councilman
Collins said the program to spend 59,000,000 on capital
improvements was based on 20 percent increments for tap f ees and
10 percent increases for 5 years for consumption. Councilman
Collins said if the consumption increases are compounded,
including a 40 percent increase, people are paying 125 percent
over 5 years ago. The tap fees have become astronomical.
Anderson noted the choice is not how much to raise the rates but
where the c ity will get the money to pay the debt service for the
capital projects that have already been done.
Councilman Isaac moved to adopt Ordinance #48, Series of 1986,
amending it to increase the rates 25 percent; seconded by
Councilwoman Fallin.
Councilman Isaac said he would like to see a tap fee increase
ordinance by the first meeting in November. Councilman Collins
asked if all 5 of the 20 percent increases have been enacted.
Mitchell answered only 2 tap fees have been enacted.
Councilwoman Fallin asked if the water rates are raised 10
percent and the tap fees are increased 20 percent, would that put
the water fund into the black. Ms. Shafer answered the water
fund needs 5500,000 in revenues. An 10 percent increase in
monthly rates will generate about 5140,000; 20 percent increase
in tap fees generates 560, 000 f or a total of 5200 , 000 of the
needed revenues. Councilwoman Fallin said she would feel more
comfortable with a 20 percent increase in monthly rates.
Councilman Isaac pointed out if the Council has to borrow money
from the general f and for the water fund, they will have to cut
other programs. Ms. Shafer said there is potential in 1986 that
the water fund may need a transfer from the general fund.
Roll call vote; Councilmembers Collins, no; Fallin, yes; Isaac,
yes; Mayor Pro Tem Walls, no. Motion NOT carried.
Councilman Isaac moved to adopt Ordinance #48, Series of 1986,
amending the rate increase to 20 percent; seconded by
Councilwoman Fallin.
Councilman Collins asked if this increase will effect the cost of
water sold to the Skiing Company. Anderson said staff will look
at the contract and report back.
Roll call vote; Councilmembers Isaac, yes; Fallin, yes; Collins,
no; Mayor Pro Tem Walls, yes. Motion carried.
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Continued Meetincr Aspen City Council October 28, 1986
ORDINANCE #49, SERIES OF 1986 - Lease-purchase Agreement Computer
Craig Overbeck, assistant f finance director, told Council this
ordinance authorizes the financing for the computer equipment.
Overbeck told Council he put this out to bid and received 14
responses. Staff is proposing Council accept financing with
Security Pacific, 5 year schedule with semi-annual payments.
This has been budgeted in the asset replacement f unds. The
payment is $75,606 semi-annually. Overbeck told Council they had
budgeted $90,000 for these payments and the bids came in very
good and at 7 percent. The savings over 5 years will be about
5100,000 in the asset replacement fund for the city's share.
Councilman Isaac moved to read Ordinance #49, Series of 1986;
seconded by Councilwoman Fallin. All in favor, motion carried.
ORDINANCE #49
(Series of 1986 )
AN ORDINANCE APPROVING THE TERM AND CONDITIONS OF AN
EQUIPMENT LEASE/PURCHASE AGREEMENT BETWEEN THE CITY OF
ASPEN, COLORADO, AND SECURITY PACIFIC MERCHANT BANKING
GROUP, SETTING FORTH TERMS AND CONDITIONS FOR THE LEASE
OF COMPUTER HARDWARE AND SOFTWARE WHICH LEASE IS FOR A
TERM OF FIVE (5) YEARS AND PROVIDES FOR A SEMI-ANNUAL
LEASE PAYMENTS OF $75,606, AND DIRECTING THE MAYOR TO
EXECUTE SAID AGREEMENT ON BEHALF OF THE CITY was read
by the city clerk
Councilman Isaac moved to adopt Ordinance #49, Series of 1986, on
first reading; seconded by Councilwoman Fallin. Roll call vote;
Councilmembers Collins, yes; Fallin, yes; Isaac, yes; Mayor Pro
Tem Walls, yes. Motion carried.
DATA PROCESSING SERVICE AGREEMENT
Assistant City Manager Mitchell told Council this is the
agreement to operate the data processing agreement between the
city and the county as well as the county's agreement to pay
their share of the computer acquisition. Mitchell told Council
the city and county have been working towards service agreements
so that data processing is a county department and the city would
contract for services. When the proposal to move data processing
to the county building did not work out, it was switched so data
processing will stay in city hall, city will provide the services
and house the computer. Mitchell told Council the county has
indicated they wold prefer this stay as a joint agreement rather
than a service agreement. The Council has preferred service
agreements to eliminate the dual management and budgeting issue.
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Continued Meeting Aspen City Council October 28, 1986
Mitchell reminded Council service agreements became a way to
improve the joint department operation and to effect
consolidation.
Tom Oken, county finance director, told Council the county is
favoring the j oint department approach. Oken said data
processing as a joint department has worked very well over the
past 11 years. Oken said a new computer and software is being
installed and the next year will be fairly significant
undertaking. The county is reluctant to change the management of
data processing. The county would pref er to have direct input
into the department. Oken said this does create more
administrative overhead; however, that has not been a big issue
in the past.
Councilman Isaac said he does not have any problem putting the
service agreement off for one year. There will be changes with
the new computer, and one year will give more experience. City
Attorney Taddune said the county is putting half the money into
the new computer and they want some control over that equipment.
Taddune said he agrees with county's position to have a j oint
agreement. Oken said one of the complaints of joint departments
has been doing two budgets. The county has agreed to look at the
city's budget format to cut down on work.
Councilman Isaac moved to have the staff bring back a joint
agreement for the data processing agreement; seconded by
Councilwoman Fallin. All in favor, motion carried.
CITY HALL INTERIM REMODEL
Assistant City Manager Mitchell told Council in order to house
the new computer, the first floor will have to be remodeled.
When staff looked at this plan, they tried to solve finance
department's problem of being housed on two floors. The total
cost for the city is $7900, with the county paying half of the
costs attributable to the computer. Mitchell told Council there
is $175,000 in city hall remodel budget available. Mitchell
said, based on the last capital improvement budget discussion, it
will be 6 to 9 months before construction is started on city
hall. During this time, data processing and finance department
have to be operated, and staff is recommending this interim
remodel. City Anderson Bob Anderson said the early time is a
crucial time for computer operations. It would be important to
house finance on the same floor as the computer operations.
Mitchell said it would cost $5,000 to house the finance
department on the first floor. Cindy Shafer, finance director,
said having finance department on two floors has caused problems.
They have tried innumerable approaches to physical staffing.
This remodel is the best they can come up with for an interim
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Continued Meetinct Aspen Citv Council __October 28, 1986
plan. Mitchell said an unforeseen problem was locating the
Council chambers on the first floor, which interrupts the finance
department on the second floor and vice versa.
Councilwoman Fallin moved to authorize staff to obtain bids on
proceed with the necessary remodel charges on the first floor of
city hall to accommodate the computer system and place the
finance department on the first floor ; seconded by Counc ilman
Isaac.
Councilwoman Fallin said she does not favor spending money on
city hall; however, the computer has to have a space. Mitchell
reminded Council the city will have to take any financing for the
entire city hall remodel back to the voters. This interim
remodel staff can live with for awhile. Council said if the bids
come in at any more than what is proposed, they would like to see
this.
All in favor, with the exception of Councilman Collins. Motion
carried.
ORDINANCE #52, SERIES OF 1986 - Lease/purchase Agreement - Police
Radios, Wheeler Lighting
Craig Overbeck, assistant finance director, told Council radios
for the police department have been previously approved in last
year's budget of $11,300 per year through 1988. The police had
an additional $8700 for a total of $22,000. The police
department has indicated they are willing to forego other
purchases to have these radio units. Overbeck received a bid of
519,000 a year for 5 years to cover these radios. Overbeck told
Council he was asked by the Wheeler to include in this bid a new
computerized lighting system. Overbeck said between now and
second reading, the Wheeler has to work on reallocating their
budget to come up with their share of $6400. Assistant City
Manager Mitchell told Council the police department is expanding
their channel capacity to match other agencies in the valley.
The police department will make their excess radios available to
city departments that need them.
Councilman Isaac moved to read Ordinance #52, Series of 1986;
seconded by Councilman Collins. All in favor, motion carried.
ORDINANCE #52
(Series of 1986)
AN ORDINANCE APPROVING THE TERMS AND CONDITIONS OF AN
EQUIPMENT LEASE/PURCHASE AGREEMENT BETWEEN THE CITY OF
ASPEN, COLORADO, AND COLORADO NATIONAL LEASING, INC. ,
SETTING FORTH TERMS AND CONDITIONS FOR THE LEASE OF
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Continued Meetin}„c~ Aspen City Council October 28. 1986
POLICE RADIOS AND A COMPUTERIZED THEATRIX LIGHTING
SYSTEM, WHICH LEASE IS FOR A TERM OF FIVE (5) YEARS AND
PROVIDES FOR ANNUAL LEASE PAYMENTS OF $25,448 AND
DIRECTING THE MAYOR TO EXECUTE SAID AGREEMENT ON BEHALF
OF THE CITY was read by the city clerk
Councilman Isaac moved to adopt Ordinance #52, Series of 1986, on
first reading; seconded by Councilwoman Fallin.
Finance Director Cindy Shafer told Council the police radios were
presented with the asset replacement f und. The lights f or the
Wheeler, Council has not seen. The lights were on the Wheeler's
capital budget list, which staff did not feel was appropriate;
they should be incorporated in the Wheeler budget. The finance
department is trying to establish if the Wheeler has budget left
in 1986 to purchase these lights.
Councilman Collins asked if the city would save the 8 percent
interest if they paid cash. Ms. Shafer said yes, but the city
does not have the money to pay cash. Councilman Collins aske d
what the total of the asset replacement fund is. Ms. Shafer said
Council budgeted $188,000, has $40,000 to carry over, for a total
of $230,000. Ms. Shafer told Council all the items on the asset
replacement f und have to be lease/purchases in order to acquire
them. Mitchell told Council when the city started the asset
replacement fund, they were leasing equipment only, not
purchasing the equipment . The city has tried to buy as many
vehicles as possible; however, with the larger purchases and with
the number of replacements necessary, this has had to be done on
a lease/purchase basis. This enables the asset replacement fund
to go farther. City Manager Bob Anderson told Council spreading
the payments over years is diluting the interest by money made on
cash invested.
Roll call vote; Councilmembers Fallin, yes; Isaac, yes; Collins,
no; Mayor Pro Tem Walls, yes. Motion carried.
REO UEST FOR GRAPHICS - Mountain Chalet
Ralph Melville, applicant, told Council they are proposing to do
a graphic on the west wall of the Mountain Chalet where the Blue
Spruce was. Dave Gibson, architect, told Council in Section 24-
5.12 of the Code covers wall painting of building in Aspen and
requires Council permission. Gibson showed the west wall, which
was not designed to be seen. Gibson said they would like to
enhance this side of the building with painted architecture.
Gibson said they are proposing to use 4 colors of paint and paint
a series of architectural elements similar to what exists on the
Mountain chalet. Gibson said they hope to enliven thi s wall ;
there will be no advertising placed on the wall.
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Continued Meeting Aspen City Council October 28. 1986
Councilman Collins moved to approve the painted graphics as
presented on the west wall of the Mountain Chalet; seconded by
Councilman Isaac. All in favor, motion carried.
FUR LEGISLATION
City Attorney Taddune presented proposed legislation regarding
the fur ordinance. Taddune told Council he sent copies of this
to various pe opl e f or comment . Taddune suggested Council
consider decriminalizing violation of this ordinance with respect
to jail time. This may mitigate exposure to a civil rights
action and make the ordinance more legally defensible. Taddune
told Council recently an attack on a New Jersey statute has been
upheld by a trial judge and a state statute prohibiting the use
of leghold traps has been upheld. Taddune recommended giving the
people he sent the proposed ordinance to time to comment and then
present it to Council for first reading.
Taddune requested Council look at the ordinance and comment
before f first reading. Georgie Leighton suggested in (c) (3)
having the tag showing the date as well as the country of origin.
Taddune told Council he has been trying to work within the
framework of the fur industry and the labels they are expected to
produce are common place. Ms. Leighton suggested dropping
reference to a Coneybear trap so the ordinance is conf orming with
regard to the type of traps .
RESOLUTION #39. SERIES OF 1986 - Mills Settlement
City Attorney Taddune told Council he has received a letter from
Mills' attorney who intimated this case would not be settled
unless the city returned to Mills the $7500 in attorney's f ees
the court ordered to be paid. Taddune said he indicated in his
discussion with Mills that this additional element would
complicate the settlement Council has expressed an interest in.
Taddune recommended Council approve Resolution #39, 1986, should
Council feel the settlement is in order. The effect would be
that the city would no longer claim any interest in the Mills
parcel, adjacent to the Hall property, next to the Chapman
condominiums. Taddune showed Council a map of where these
properties are located on Cemetery Lane.
Councilman Isaac asked what Dr. Hall says about this. Taddune
told Council when staff was negotiating an acquisition, Hall's
attorney indicated they were not willing to make a contribution.
Taddune told Council Hall is interested in receiving a cash
settlement for the easement across his property. Taddune told
Council staff approached Mills regarding buying his interest in
the parcel, and a settlement at $110,000 to $120,000 based on
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Continued Meeting, Aspen City Council October 28. 1986
appraisals was discussed. Taddune told Council Mills came back
with a figure in the $200,000 range. Taddune said when staff was
trying to put together a package, they approached Hall with a
view towards increasing the purchase price, with the city
contributing to resolve this for the benefit of the golf course.
Taddune submitted a memorandum outlining the background and
effect of this settlement. The net effect is that Mills would no
longer cross claim for attorney's fees, and the city would no
longer claim any interest in that parcel.
Mill s has asked the planning off ice to comment on the
developability of the lot, which they indicated could have a
duplex provided access could be obtained. Taddune told Council
what is preventing development of this parcel is that there is
not access. Mills attempted to condemn an access easement across
city property. The law suit was dismissed about 5 y ears ago.
Mills then attempted to condemn an access easement against Hall's
property. Taddune told Council staff took another look at the
golf course acquisition regarding this parcel, and expressed some
concern about the city's interest. Taddune said the city was
then j oined as a party to the lawsuit in order to allow Mills
quiet title. In the initial stages of litigation, the city was
abl a to demonstrate that Mills did not own it under the legal
concept known as the doctrine of "after acquired title". The
Court allowed Mills to amend his complaint to assert a new
theory, the acquisition of the property from a holding
corporation, W.C.& R. Investments.
Bil Dunaway asked if the city could condemn this for the golf
course use. Taddune said that alternative has been discussed
and, given the cost, has been rejected. Assistant City Manager
Mitchell told Council Mills has appraisals of $200,000 to
$250,000; the city's appraisals indicate the property to be worth
$120 ,000 . Mitchell reminded Council they had indicated they
would like to get out of this lawsuit. Taddune said staff has
been negotiating with Mill's attorneys to withdraw from the
lawsuit. Taddune said passage of this resolution would allow him
to stipulate, on behalf of the city, withdrawing any interest in
the property.
Mitchell told Council the golf course superintendent indicated
not having this property will not interrupt play; it would be
more of a hazard to people who live there. The golf course was
designed around this parcel. Mitchell said Council indicated
they did not want to spend more than $110,000 for this parcel and
cold not get a contribution from Hall to get closer to Mill's
purchase price. Mitchell told Council this parcel is not worth
$250,000 f or the fringe edge of the golf course. This does not
impede play. Taddune said this may have been a lack of detail
when the city closed on the golf course property. Taddune told
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Continued- Meeting Aspen Citv Council October .281___198
Council the parcel was conveyed from Mills to Simmons, and there
was an agreement - not executed - where Mills agreed in the event
he constructed a golf course, he would accept a reconveyance at
no cost to Mill s f rom the S immons of the portion west of the
irrigation. Taddune said he got involved in the development of
the Happy Hearth, conveyed everything to Crosby and Randalls,
then called upon the Simmons to have the property west of the
irrigation ditch transferred back to him. Under the doctrine of
"after acquired title" he took that property to the benefit of
Crosby. Taddune said Mill s remedied the defect by having W.C. &R
quit claim its interest to him.
Councilwoman Fall in moved to adopt Resolution #39, Series of
1986; seconded by Councilman Collins. All in favor, with the
exception of Councilman Isaac. Motion carried.
Council 1 eft the meeting at 7 : 3 0 p. m.
- ~__ _---
Kathryn Koch, City Clerk
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