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HomeMy WebLinkAboutminutes.council.19870608Regular Meeting Aspen City Council _ June 8, 1987 CITIZEN PARTICIPATION • COUNCILMEMBER COMMENTS . ORDINANCE #1, SERIES OF 1987 - Lodge Improvement District ORDINANCE #17, SERIES OF 1987 - Refunding 1985 Sales tax Bonds . SUBDIVISION EXCEPTION - Behrendt • RAW WATER AGREEMENT - 1010 Ute Avenue • FINAL PLAT - 1010 Ute Avenue RED ROOF INN REPORT COMMENDATION RESOLUTIONS SWEARING IN NEW COUNCIL ORDINANCE #24, SERIES OF 1987 - Sale of Red Roof . THE GRILL OUTDOOR DINING . REQUEST FOR ENCROACHMENT - Elli's of Aspen • ARGUBRIGHT LAND IN LIEU OF PARK DEDICATION FEE . RAW WATER AGREEMENT - 1010 Ute Avenue COMMUNICATIONS TRAINING COURSE CONTRACT 1 1 3 8 9 11 12 15 16 16 17 19 20 22 23 24 25 Regular Meeting Aspen City Council June 8~ 1987 Mayor Stirling called the meeting to order at 5:00 p.m. with Councilmembers Isaac, Fallin, Walls, and Collins present. CITIZEN PARTICIPATION 1. Mary Martin requested Council give $100 to the Historic Preservation Committee to allow one member to attend the Colorado Preservation Conference on June 11. Ms. Martin told Council she has asked HPC and the planning staff f or this money and none is available. Mayor Stirling moved to allocate 5100 from Council's budget to HPC to allow one member to attend this conference; seconded by Councilwoman Fallin. Ms. Martin explained she is late with this request because she tried to get the money from other sources within the city. Mayor Stirling said the staff does not have money in their budgets for boards and none of the boards have a budget. All in favor, motion carried. COUNCILMEMBER COMMENTS 1. Councilwoman Walls informed Council the City Council of Chamonix, France, has approved and signed the sister city contract with Aspen. This is the fourth member of the consor- tium. 2. Councilwoman Walls said the state legislature has revised the annexation law to make it more difficult for cities to annex, regardless of the property owners wishes. Councilwoman Walls submitted CML description of this new bill. 3. Councilman Collins said he received a call last evening about the flooding in the west end around Sixth and Seventh streets. Councilman Collins said he would like Council to look into a long range storm run off program. Councilman Collins said the problem seems to originate at Seventh and Hallam. Councilman Collins said he would like the city to look at a permanent solution to this. Mayor Stirling said Council received a letter from a west end resident appealing for additional drainage. Council has not had a formal discussion about this. Jay Hammond, city engineer, said this ties into the area that Councilman Collins is talking about, this resident is impacted by flows that come off the highway at Seventh and Hallam. Hammond told Council the staff has contact with the Department of Highways, who have indicated they may be willing to come up with some sharing of funds to solve the problem. Hammond said staff is meeting with the Ski Company this week to talk about the base of Spar; there 1 Rea-ulan Meeting Aspen City Council June 81987 was damage on Ute Avenue last weekend. Hammond said this is a timely topic to discuss storm drainage across town. 4. Councilman Coll ins said the old Council was supposed to deal with the Red Roof and would like to hear the report before going out of office. City Manager Bob Anderson told Council staff has been negotiating a contract with Infotel. There is an ordinance to consider on first reading. The contract is not final but should be in two weeks. 5. Councilman Collins said he feels the Coors Contract is more appropriate for the old Council to discuss. Mayor Stirling said the Coors contract does not require any additional allocation. Councilman Collins said Council voted at the last meeting to leave the appropriation at $25,000. 6. Councilman Isaac said he would like to add to the agenda Councilmembers calling press conference and would like to set up guidelines for press conferences. Councilman Isaac moved to add Councilmember Press Conferences; All in favor, motion carried. at item VII r) Discussion of seconded by Councilman Collins. 7. Mayor Stirling said the vendor's fee was brought up on a motion to reconsider at the last Council meeting. Mayor Stirling said he disagrees with the interpretation of the city attorney. When an ordinance is voted down at second hearing, and is then moved to be reconsidered, it should go back through the process, including a formal public hearing. Mayor Stirling said the citizens were not served by the public process being omitted from the reconsideration. 8. Mayor Stirling said Governor Romer has vetoed the section of the budget which would disallow restaurant inspections. 9. Mayor Stirling said the Council has a work session scheduled for June 16 on annexation and code simplification. The county commissioners have requested a joint meeting on the issue of a joint manager. Council scheduled a joint meeting with the county on June 16th at 4 : 30 bef ore the study session. There is a study session scheduled for June 17 with RFTA, the county and Clean Air Board on PM-10 standards. 10 . Mayor Stirling complimented out assisting people all over tow fire department helped get Ovate helped get mud out of doorways. the fire department, who were n after the rain storm. The r out of units, of f of roofs, 2 Re-atxlar--Meeting -- - - -~ Aspen City Council June 8~ -198. ORDINANCE #1, -SE-Ri~S OF - i9-8-7 - Lodge Improvement District Councilwoman Fallin said this started out to be an improvement district f or the lodge area south of Durant street. This area is in need of upgrading and should not be discouraged from getting it. Councilwoman Fallin said she does not understand nor has the q uestion been answered, how the lodge improvement district got so large. There are residential districts that will not benefit but will have to pay. Councilwoman Fallin suggested taking this district back to the lodge zone only and not extend this east or west down Durant. Councilwoman Fallin said it is appalling to tear up sidewalks that have recently been installed. There are residential homes in the district whose assessment is almost as high as commercial spaces. Councilwoman Walls said she, too, has been puzzled as to how all the areas that are not the lodge district got included. A lodge area improvement district is needed, but it should be confined to the lodge area. Councilman Collins said it is inequitable t o have a rental lodge unit assessed on the same rate as a square footage of a private residence. Councilman Collins said a person's residence is not a commercial enterprise and they should not have to bear an equivalent burden. Councilman Collins pointed out at the last public hearing, December 30, 1986, Council was not in attendance. Jay Hammond, city engineer, pointed out the original proposal for the lodge improvement district was the base of Little Nell west to Monarch street. Hammond said the task force looked at larger condominiums and multi-family structures and lodges with short term accommodations. The task f orce examined logical boundaries for the improvement district. There was a showing of interest from specific properties in the east side of the district, like the Aspen Alps, Clarendon, Aspen Club and Gant, requesting to be involved in the district. The task f orce expanded the district to do improvements throughout the area, which took in areas of residential and single family homes. Hammond reminded Council the first reading of this ordinance was January 26, 1987. There was a public hearing of the ordinance February 9th, and f final adoption was postponed with direction to staff to re-examine the method of assessment. In April 1987, Council adopted this date as continuation of the public hearing and discussion of a reduction of the use factor for commercial properties. Hammond said the concern was that the orientation of this district was not toward commercial properties. The amendments to the assess- ment formula are contained in this ordinance; residential properties use factor is 1.0 with a base square foot calculation of 52.45; 1.25 use factor for street level commercial, and a reduced use factor of .5 for deed restricted employee housing, with the offer a full subsidy for properties willing to deed restrict as part of the district. 3 Reaul-ar- MEet-i-rrg------ --- _ - ----As-pen City Council _ June. 8~ 198 Hammond told Council the city has received remonstrances from 221 individual ownerships representing about 21 percent of the ownership and 18.1 percent of the square footage in the district or 337,000 square feet. Mayor Stirling asked what percent of the district is absentee owners. Hammond said staff has not calcu- late d specifically, but about 40 percent is absentee. Hammond pointed Aut the protest letters are generally from owners of residential condominiums. Hammond said protests were received for a wide variety of reasons; some being people like the area the way it is and do not want improvements, protests because improvements being contemplated are already in place in some areas, concerns about changes in the assessment formula and reductions in the commercial assessments were creating a counter- impact on residential properties, concern about expense of the proposed improvements, scheduling of the district with the proposed private projects. Hammond said the bond requires that the funds be spent in a three-year period. Mayor Stirling opened the public hearing. Olof Hedstrom, Old Hundred Condominiums, said the plan should be rejected for its unfairness. Hedstrom pointed out Old Hundred have done their own improvements and they are quite nice. They do not want to see the destruction of what they have accomplished over the last 15 years. Jack Simmons, Holland House, presented a plat map of the area on which property owners can place an X on their property if they are opposed to the district f or a visual impact for Council. Simmons said they are opposed because of the inequity between lodges and home owners and also f or small lodge operators. Simmons pointed out the large projects yet to be built should put in the improvements under the growth management plan, then tal k to the rest of the property owners. Simmons pointed out on the map property owners west of Monarch that are against the district. Selma Feldman noted that absentee owners do not have to sign for their notices. Absentee owners often do not care what is happening because they can raise their rental rates. Simmons said private enterprise should be able to improve their property as they chose. Jerry Hewey, manager of Aspen Alps, said he requested to be on the task force to be involved in the lodge improvement district. Hewey said part of the improvements were to be water containment from the mountain. Hewey said that element was taken out of the plan. Hewey told Council when the plan was cut down, the board of the Aspen Alps voted to oppose the improvement district. Cathy Crum, Ute Avenue resident, said the taxes for the improve- ments are too much and is opposed to the district. Ed Zasacky, 4 Rerctul-ar -i~eet-i-rncr--------- --- - ---~s~~_n._e-ity Council _ _ June... 8. 1987 Aspen Chance, said they are opposed to the boundaries and to the concept of the district . Zasacky said they are particularly opposed as the drainage to help the area has been cut out of the plan. Chuck Severy, Aspen Townhouse Central, stated he is opposed because this is poor government and the district is being rammed down people's throats. Severy said there is very little support for the district other than the large unbuilt hotels. Anne Murchison, Fifth Avenue condominiums, stated she is opposed to this. The assessment is incorrect, little attention has been paid to people who live in the district and do not rent their units. Ms. Murchison said the district ought to be part of basic city services. Gene Reardon, Fifth Avenue Board, told Council Galena street needs to be improved, needs a sidewalk and some street lights. Reardon said the present lodge improvement district is too big and there are too many v ariables. Lennie Oates, representing all commercial properties owners south of the alley in block 106, stated all his clients object to the inclu- sion of their property in the district based upon the zoning classification of neighborhood/commercial. This zoning is a punitive district in the first place. Oates said this property has their improvements in place, and they should not be torn up and replaced. Oates noted in light of the proposed development in the district, it would be untimely to go forward with the district. George Gleason, Ute Avenue resident, said he does not object to his tax money going for some city improvements but does object to double taxation for these improvements. John Dolinsek, South Monarch resident, opposed this district and questioned where all the tax money has been going. Dolinsek said when buildings are built, they are to provide curbs and gutters. Dolinsek said this district will raise the taxes higher than the proposed ski ticket increase. Dolinsek asked if the people in this district will be exempt from paying for other improvements, like a parking lot. Mrs. Dean Billings said the residents on Ute avenue like it the way it is. This improvement district will change the aspect of the neighborhood. Mrs. Billings pointed out this neighborhood was not included in the original plans. Mrs. Day, Durant avenue, told Council she rents her units to year-round employees at a low cost. Mrs. Day said it is not fair that these employee units should be assessed like the larger lodges. Mrs. Day said she feel s thi s improvement district is unwanted, unnecessary, and will make Aspen look like Vail. Mrs. Day said Council should abandon this plan. Chuck Frias, Aspen Club and task force member, said the task force wanted this district to be driven by the property owners in the district. Frias said this needs to go back to the drawing 5 Regu3ar- M-~et-rnq_ __---__-----_.---Asue-n__City council _ -- -- June_ 8. _1987 board. Frias said many property owners are against the dis- trict, and the task force should look at the size, the method of funding, the noticing process. Barbara Lewis, Waters Avenue property owner, said she was not aware the assessments had changed until last month. Ms. Lewis said some improvements are needed; however, not at the scale they are proposed. Ms. Lewis said her property is being assessed, and Waters avenue is getting very few improvements. Charles Severy pointed out the costs for the district are only "estimated" and it is "anticipated" that paving will be done by the city. Severy noted the costs do not include a 6 percent fee for collection, inspection and incidentals, which raises the costs to $5,700,000. There also is a question whether the city can bond itself. Severy pointed out the cost of the district is 25 percent of the city's annual budget, which is excessive. Frank Dolinsek, 619 South Monarch, said he is opposed to this district because there is no solution to the drainage problem or to the problem of the mountain sliding. Ralph Melville, Mountain Chalet and Carriage House, said he is opposed because the problem of the parking in the district has not been handled. Melville disagreed with the number of spaces that will be lost in the district, and it is a larger number than has been stated. Melville said Aspen is a unique town and its charm is the different way properties are built and landscaped, and the town should stay with that approach. Melville said there are things in the district that have to be done by the city rather than individual property owners. David Fain, Aspen Alps, agreed Aspen is a unique town and this plan is too much like Disneyland. Jim Pavisha, representing Mine Dumps, Alpina Haus, and Aspen Mountain Lodge, stated although they f avor the district, he is sympathetic with the comments at this hearing. Pavisha said his project has to pay for improvements, and it is not the desire to include a lot of property owners who do not want to be in the district. Pavisha requested that this district not go bac k t o the drawing board. Let the property owners who want this get together, and bring it back to the city. Pavisha requested that nothing be done with the district until the ownership of the Aspen mountain Lodge property is settled. Burt MacDonald, North Star Lodge, said he would like to see improvements but has no confidence that the city can perform if this is approved. Jon Mulford, representing Harry Uhlfelder, stated his client is opposed to the district. Mulford presented a letter attached to the formal remonstrance, outlining the reasons for opposition. Mulford said the cost of this district is too high, and it should cover a much smaller area. Mulford 6 Re-au 1-ar - ~et7rc~--- ------ ___ _ . ___-AsA~n - -C tv C~urrc i 1 _ - _ _ ...June 8~ i 9 said this district will result in a 50 percent increase in taxes for many property owners. Mulford said the lodge and residential assessments should be distinguished. Mulford pointed out that lodges generate more income per square foot than residential units. Mulford recommended that this district be done f or the lodge core of the city only. Mulford filed for the record two reports of Larry Smith and Company; memoranda from the city manager dated January 20, 1987, February 3, 1987, April 10, 1987, and the March 19, 1987 mailing list, which does not include all property owners within the district. Mac Willins, representing 36 property owners, state d t hese property owners are all opposed. Willins said it is ludicrous to tear out existing improvements and to replace them at a great expense. Alan, Silver Shadow condominiums, is opposed to the district and suggested t his go back to the drawing board and have the goals reevaluated. Selma Feldman, North of Nell, said it is unfair to have taxes go up 50 percent for people who do not rent out their property. Ms. Feldman said there is no way to know that out of town tenants received the property notices. Dick Butera, Aspen Club Lodge, pointed out the sales tax propos- al, which cost $30,000 in consultants for a recreation center, was voted down 3 to 1. This district has cost over 5100,000 in consultants. Butera suggested this money could be better spent in the community than on grand schemes which the general public is not in favor of. Mayor Stirling closed the public hearing. City Attorney Taddune told Council if this ordinance is defeated, staff would recommend that this process, for a smaller district, be started over. Councilman Isaac moved to defeat Ordinance #1, Series of 1987; seconded by Councilman Collins. Councilwoman Fallin said she would like to save some of the work that has been done f or a possible improvement district f or t he lodge area. Hammond said, procedurally, this would start over but the staff would salvage the work on the improvements where they may be wanted. Michael Gassman encouraged Council to throw out the whole district. Gassman said the flaw is there are two groups; one who will benefit from these improvements, and those who may benefit but do not want the improvements but would be paying f or them. Joe Barrows, Kirchner Moore, said it would be much clearer to defeat this present ordinance and redo the procedure in order to market the bonds. Councilman Collins said the district should be defeated and the city should look at the improvements they can do within the 7 Re g u-l a r ---Me-e-t i-ng.______------ -- --- ----- ~ s~e-rr--C~ty- C-o~un ~i l- - - __ _ _ _ J une - g , 1 ~._8-7. original boundaries between Galena and Aspen. Councilman Collins pointed out the largest portion of the improvements in that area will be done by the Aspen Mountain Lodge and the Ski Company's hotel. Councilman Collins said there are funds within the serial tax to take care of South Galena street. Councilman Collins said with the funds spent on consultants, the city could have fixed South Galena street. Councilwoman Walls recommended the district should have the necessities and not all the frills. Mayor Stirling said there is no question that Mill and Galena streets need attention. Mayor Stirling said this is how the district started, and got expanded because of poor lighting, pavement, and lack of sidewalks. Mayor Stirling said the area south of Durant street is a major revenue earner for the city. Mayor Stirling stated that the objections raised at the public hearings have been legitimate, and reaffirm that the public hearing process is valid. Mayor Stirling said this may be a tax without representation. Mayor Stirling agreed he is concerned about uniformity, and noted one of the great things about Aspen is its diversity. Mayor Stirling said this district may be premature with the uncertainty of the two large, proposed lodge projects. Mayor Stirling agreed there should be a distinction between long term and short term residential proper- ties. Mayor Stirling said the district boundaries are too large, and this district has gone beyond the scope of what was original- ly intended. Mayor Stirling said the drainage solution is clearly needed in this district. Parking issues are still unresolved. Mayor Stirling said the city should define precisely the areas that need to be improved and work on those quickly. Mayor Stirling suggested staff send out a mailing to all property owners in the district to apprise them of the action taken by Council. Roll call vote; Councilmembers Isaac, yes; Fallin, yes; Walls, yes; Collins, yes; Mayor Stirling, yes. Motion carried. C}RD I~Aid£~E -#~1~ , - ~~i-E-~ -f3~` -i-g8 7 - Refunding 19 8 5 Sales tax Bond s Cindy Shafer, f finance director, requested Council table this ordinance. Joe Barrows, Kirchner Moore, reminded Council a target of 5200,000 of present value savings has been set for a refunding issue. Barrows told Council the market has gone sour since this process started. Barrows told Council he has made application to the bond insurance companies and has received insurance approval. These are ready to go any time the market improves. Barrows said marketing this and the Maroon Creek hydropower bonds simultaneously makes economic sense for the city. 8 Re-~atx~--ar- Me of nu--- -- --------______.-~s.~e_n- _~ i tv Council --- -- -- . - -- -June - 8 . -19 8~, Councilwoman Fallin moved to table Ordinance #17, Series of 1987, to July 13, 1987; seconded by Councilman Collins. All in favor, motion carried. Councilwoman Walls moved to table Ordinance #18, Series of 1987, to July 13, 1987; seconded by Councilwoman Fallin. Councilman Isaac said he has read that Boulder is making garbage into electricity and making money on the venture. City Manager Bob Anderson said Pitkin County does not have the volume of garbage to make the venture economically viable. All in favor, motion carried. S~~BI~-Ii~-i S ice--E~`E-PT~fl~1 - Behrendt Glenn Horn, planning office, said the issues are that the applicant is arguing the six month rental restrictions should not apply to this property due to its history as a mixed project. On the other hand, the project fits more clearly the definition of lodge condominiumization than a residential condominiumization. The applicant would like the six month rental restriction waived and to not require the applicant to go through lodge condominium- ization. The applicant is looking for the most flexibility possible. Horn said staff feels Council should pick one process or the other and recommends either a six month lease restriction or to go through lodge condominiumization. Gideon Kaufman, representing the applicant, note d he is asking Council go along with the recommendation of P & Z. Kaufman told Council P & Z agreed they did not intend to create lodges by definition, in the code. Kaufman reminded Council the intention of the lodge condominiumization was to help older lodges upgrade by allowing condominiumization. The definition of lodge, at that time, said if there is a kitchen, it is not a lodge. The older lodges could not have qualified under this definition. The then city attorney wrote a definition, if there are 3 or more units it is a lodge. Kaufman said this definition was created to help the older lodges and was not intended to create a new section of lodges. Kaufman told Council P & Z feels the city should relook at what is and what is not a lodge. Kaufman said this property was a four unit apartment building without any amenities. It was purchased by the applicant as an apartment building and has been used as an apartment building. Kaufman said this is a residential condominiumization, and the choice is should these be restricted to six month rental restric- tion or not. The city has tried to keep a balance in town between short and long term rentals. Kaufman is asking this 9 RE-ca-u-l-a r---Me~-t-rrncr-------- ------.. _--~-s~e-n-- Citv__ -~oun-c~.~ - . _ _ __ -dune- _ 8 ~ _i 9 87 building be allowed to do what it has traditionally done and not be restricted to six month minimum leases. Horn told Council staff feels tied to the code definition f or residential condominiumization and six month rental restrictions. Horn pointed out there is no criteria in the code which stipu- lates when the lease restrictions can be waived. Horn recom- mended until there is criteria in the code, Council continue to follow the Code and impose six month lease restrictions. Kaufman said there are two definitions of lodge in the code, one in the lodge condominiumzzation section, and one in the defini- tion section. Horn said this is a condominiumization, and the definition of lodge in that section is the one the staff is using. Horn said if Council chooses to waive the six month minimum lease restriction and not to impose lodge condominiumiza- tion, then Council needs to address a policy issue about six month minimum lease restrictions in the future. Kaufman said this issue is being addressed by the code simplification task force; however, the entire growth management plan is tied to what is a lodge and what is a residence. Councilman Isaac said when Council wrote the lodge condominiumiz- ation, the intention was that the use not change. The way the code has been written has caught this applicant in a difficulty. Councilman Isaac said he would like Council to direct P & Z to look at a code change and to approve this application as P & Z has recommended. Councilwoman Fallin said the applicant should either be a lodge or a residence with a six month minimum lease and Council should not give him the best of both worlds. Kaufman said in order to be a lodge there are definitions in the code that makes a building a lodge. Kaufman said this building does not have common amenities, no employees, no manager, and only 4 units. Kaufman said this being has always been a residence. Kaufman pointed out in the last few years, Council has waived the six month rental restriction on 4 applications. Kaufman said nothing will change with this building except the ownership. Horn reiterated Council needs discretionary criteria in the code when to waive the six month rental restrictions and when not to. Mayor Stirling said this is a short term building use and ha s bee n its historic use. Mayor Stirling said there are two definitions of lodge in the code and they are somewhat contradic- tory. Mayor Stirling noted the Council has used its discretion in the past in waiving six month rental restrictions because they felt it was appropriate to this particular cases. Mayor Stirling said Council should approve this and not apply the six month rental restriction. Councilwoman Walls said this building looks and acts like a lodge and should go through lodge condominiumization process. If the 10 Re-au 1 ar--Me-e~ti~rcr--- _ _ ~ ___ __ _ _ ,~~_ tY -C'~u2rc~i i- _ _ _ -__ .......June - 8 - i g8 applicant wants this to be a residence, they should comply with the six month rental restrictions. Councilwoman Fallin asked if the applicant is willing to meet all the conditions listed in the memorandum. Kaufman said some of the conditions apply only if this is treated as a lodge condominiumization; however, they are willing to meet the other conditions. Kaufman told Council the applicant has sold the St. Moritz and the St. Moritz has agreed to manage this building for two years. Kaufman told Council he can commit only to what the purchaser has agreed to, like using the swimming pool for two years. Kaufman said the applicant would be willing to hire a management company. Mayor Stirling moved to approve a subdivision exception for the purpose of condominiumization for a four plex located at 332 West Hyman avenue subject to conditions 1) dwelling units will remain in the short term rental market and shall not have a six month rental restriction, 2) residential units shall be physically upgraded in accordance with the recommendations of the building department, 3) applicant shall prepare a condominium map consis- tent with the code and shall designate access easements; 4) if there is any improvement district in the neighborhood, the applicant agrees to be a member of that; seconded by Councilman Isaac. Councilwoman Fallin commented since P & Z has been thorough with this, she will support their recommendation. All in favor, with the exception of Councilwoman Walls. Motion carried. Councilman Isaac said he would like P & Z to look at changing the code that conversion of existing units be restricted to whichever uses are the historic uses for the past 5 years. Mayor Stirling suggested Council address this issue during the work session on code simplification on June 16 . RAi~i--~A-TEH-- - 1010 Ute Avenue Gideon Kaufman, representing the applicant, told Council this agreement has been negotiated between the city staff and his client and was prepared by the city's water counsel. Mayor Stirling asked if the city is getting all the water rights available to the city. City Attorney Taddune said this agreement has some unique aspects of timing and maintenance considerations. Kaufman said this agreement helps the city in terms of preserving water rights. The applicant is putting ponds on their property for irrigation purposes and will not be using city-treated water to irrigate but will be using the city's surplus water. This agreement is beneficial to both the city and applicant. 11 R-e-atxi-ar --Me-erti ---. __._ ______._~ -- Erty ~o-un c~ri_ _ ___ __._____---- J ~- 8 ~ _ _ 19 ~7 Mayor Stirling asked if there is a chance of this water right flow being impeded by the applicant before it goes into the downtown area. Taddune said the city's water counsel could better answer these questions. Mayor Stirling asked if this has to be approved in order to approve the PUD agreement. Taddune said the PUD agreement incorporates this by reference. Kaufman pointed out one of the exhibits is a list of all the city's water rights. Kaufman said John Musick has explained that even in the driest years, there would not be a water flow problem because the city has senior water rights. Kaufman said this agreement is a benefit to the city because someone could argue the city is not using these water rights. Glenn Horn, planning office, told Council he has discussed the concerns with Musick about the mall drying up in a low water year, and Musick did say the city has sufficient water rights to protect the water flows. Councilman Isaac said some of his concerns are the applicant's ability to get water out of the ditch, any possible liabilities, the hazard of flooding. Councilman Isaac said he finds it hard to believe the city will be irrigating this land for free with no compensation for the use of the city's water rights. Skip Berhorst, applicant, pointed out the applicant is providing water at no cost to the city. They are pumping this water to the park they are deeding to the city. Mayor Stirling said there has been no need to put water over there because there has been no park. Berhorst said the overall improvements to the Wheeler ditch are badly needed. The headgate and alignment will be done by the applicant as a trade off for water taps. Mayor Stirling aske d about on-going maintenance. Berhorst said they will maintain only their collection area. Councilman Isaac asked about liability if there were a flood on the applicant's property. Kaufman said the applicant is doing the work according to the criteria of the city engineer. Kaufman said the present ditch is in a bad way and has a greater chance of overflowing the way it is. Mayor Stirling asked if the applicant would indemnify the city. Berhorst asked why they should do that, when the applicant is doing the work under city specifications. Mayor Stirling moved to table this agreement until later in the evening. All in favor, motion carried. ~i-i~i~, --~f,~ - 1010 Ut a Avenue Glenn Horn, planning office, said the only outstanding issue is the fee to be paid the housing authority. Horn said this is an informational item to make Council aware of how the discounting approach f or cash-in-lieu f or employee housing will work. Horn 12 R~-~gtx-l-ar--~Ie~eti nu------- __~A-~ue-rr- -C- tv _ ~ounc i i_ ._-----_-- _ _ J un e_ g~ 1~7 said staff is recommending approval with some minor change s in the agreements. City Attorney Taddune said these regard liens and encumbrances, incorporating all prior representations and submissions. Taddune said he has requested separate documents on the easements so that they will be recorded independently and provide cross referencing. Taddune has asked for separate covenants on the employee housing and that the employee unit be designated on the plat. Mayor Stirling asked if there was discussion at P & Z about the location of the proposed units, particularly along the river. Horn said there was extensive discussion about the building sites on the ridge. P & Z required the applicant to present drawings showing the visual impact of the structures on the ridge line. P & Z debated this and restricted the height of the buildings to one story above the ridge line. Horn said the planning staff originally recommended these buildings be lower than that. Horn said P & Z also discussed the building sites on the slope towards the cemetery and decided to go with the original presentation by the applicant. Mayor Stirling said there was a concern raised about the parking lot and the view from the house closest to that. John Kelly, representing the property owner, told Council he has worked with the applicant and they will create an 8 foot berm and some landscaping. Kelly said his client is satisfied with these conditions. Kelly said he is concerned about night parking in this lot, and would like to see the police department enforce this parking lot. Jim Adamski, housing off ice, said when Council approved the employee housing guidelines, they approved a discount rate amortized at 5 years at 12 percent. Adamski explained this takes the payment in lieu calculation, which was 5460,000 and with the discount rate, it will come to 5260,000. Adamski said this is a benefit to the applicant to get a reduced f ee. It i s also a benefit to the employee housing program to provide long term planning ability and to use monies in areas where they cannot generate monies for specific type housing. The applicant has met the total housing commitment as outlined in the housing guide- lines. Adamski said this applicant is giving the housing off ice up front $260,000. That money invested over 5 years would be $460,000. Adamski said applicants would be required to give cash-in-lieu when the house are built. Adamski said this discount program makes sense and seems to be working. Adamski said he uses 12 percent to calculate the discount rate, and the 12 percent is an incentive to get the money up front. Kaufman said discount is not the right term, it is a present value calculation. The assumption is that all these houses will get built in 5 years. The city is getting a good deal because the cash is computed on the assumption the city would get all this money within the next 5 years. Adamski said the housing office 13 3-a r-Me e-t~.-rrc~-_---- __ _____-- ~.-A-sue~rr ~ itv~_ Coun.ci.~:.-~- -- _ _ .. _ --`-~_e.~ g ,--~ _l 9 8 7 is receiving the money to use now, rather than waiting for the build out. Adamski said they will use this money to take care of immediate problems and plan f or future trends. Adamski said he feels this is a good program. Councilman Isaac said he has a problem with the 12 percent calculation. Kaufman pointed out Council adopted these in their employee housing guidelines. Horn told Council the code states an applicant has to receive building permits for residential projects within 33 months from the original date of the GMP conceptual submission. Horn said there has not been a land subdivision within the city, and the applicant realizes they will not get building permit s f or all dwelling units within 33 months of last December. Horn said the applicant has filed a letter asking that the code be amended to address the 33 month expiration date for a residential sub- division. Horn said P & Z has v oted to sponsor this code amendment and it will come before Council. Taddune told Council there is a special account in the housing off ice that applies only to projects that will benef it the city. Taddune said the city will be accepting a piece of property to be used as a city park of approximately 1.6 acres. Taddune told Council he will work on the language so that it is a dedication of land. Kaufman said the county has realized that the 33 month provision should apply to condominiums and not lot subdivisions. Kaufman said he has asked the P & Z use that same language. Kaufman said he would like the city to look at this expeditiously because they may have problems marketing the lots. Mayor Stirling said P & Z has agreed to sponsor this code amendment. Councilman Isaac moved to approve the 1010 final plat subdivision agreement con8itioned upon the 8 conditions in the planning off ice memorandum of June 8, 1987; seconded by Councilman Collins. All in favor, motion carried. Kaufman said the raw water agreement is tied to this agreement. Kaufman said they have worked hard on this agreement and would like to see it resolved. Mayor Stirling said Council would like staff to address their concerns about the raw water agreement. Jim Markalunas, water department, said he wrote a memorandum about this raw water agreement objecting to the trade offs against the water taps. Markalunas said there ought to be another way to handle this as the developer is getting a benefit from reduction in fees and tap size. Markalunas said only Council should waive tap fees, not the administration. Council- man Isaac asked the condition of the ditch and the benefits of having the applicant fix the ditch. Markalunas said that is a good idea. Councilman Isaac asked if it is worth giving water taps. Markalunas said the applicant will have reduced irrigation rates and will be able to reduce their tap size. Councilman 14 ~,gular Meeti~n-9_~---~ ~ ------ ~-As~en~ eitX Council- - - June 8J, x.987 Isaac asked what the city's benefits are. Markalunas said preserving and maintaining the water rights is a benefit to the city. Markalunas said what the water department has objected to is waiving the tap fees and it is inappropriate to make that trade off on a dollar per dollar basis. Markalunas said this would create an administrative headache and would rather see the applicants do the work on the ditch, present a bill to the city and let this be handled through the general fund rather than the water fund. Berhorst pointed out the applicant does not need the improvements to the ditch in order to get water from the ditch. Berhorst said this was asked by the city that the applicant does the improvements. RED ROf?F I I~i~ ~~@RT City Manager Bob Anderson told Council staff has been negotiating with Infotel partners. Staff submitted the initial contract to Council. Anderson reported this is not yet at the point where there is an agreement. Anderson said Infotel would like to continue to work on an agreement, to give the city $2,250,000. Infotel has put some contingencies into the contract that staff did not agree were contingencies. Anderson said Infotel has agreed to remove most of the contingencies, but this has not been written into a final agreement. Anderson said City Attorney Taddune has drafted an ordinance approving this contract for first reading, which Council may or may not address at this meeting. Anderson said he feels the negotiations are progressing nicely. Taddune told Council the contract was written with a financing contingency, which staff felt might have been at odds with the original agreement. Taddune said there is a 45 day approval for Infotel to obtain an appraisal to justify the purchase price. Taddune said 510,000 was presented as earnest money, and staff felt that may be insufficient for holding up a property for 90 days. Infotel has responded they will give 55,000 per month during the period of the contract. Anderson said there is the issue of clarifying 1 and use approvals, and staf f is not willing to certify to that until they look at the plans. Anderson told Council at f first glance, the proposed changes do not seem to cause problems. Anderson said he would like to get an opinion from the planning office. Anderson said the major changes in the contract so far are to add the 55,000 per month and to take out the financing contingency. Councilman Collins asked if there is a schedule f or completion. Anderson said Infotel has requested 90 days from a certain date. Staff is discussing shortening the time but it is a fairly complex transaction. Anderson said if this falls through, another purchaser would have a difficult time renovating the property in time f or next winter. Mayor Stirling said the standard earnest money deposit is 10 percent. This 15 Reat~l ar I~eeti-era------_..----- - -- -Aspen City_ Council _ ____ .. June-- 8 . 1987 earnest money deposit is slightly more than 1 percent and raised the question if it is sufficient for protection. Herb Klein, representing the applicant, said the effective date of the contract would be the date of acceptance by the city. The 90 day period runs from that time. Klein said the nature of a public offering takes about 60 days. Klein said they hope for a closing in September or early October. Klein said they would like Council to adopt this ordinance on first reading in order to start the process. Klein said there is a six figure budget to get this work done to get to a closing in order to receive money from investors. Klein said Infotel does not have $225,000 to put up as earnest money and not to have the use of during the organizational expenses. Steve Conger told Council Infotel i s going ahead with all aspects of the hotel, including marketing it, and there are many costs that are being incurred. COMM-EI~fiDAT i~--R~8b~3`PiOi~fiS Mayor Stirling said Councilmembers Collins and Walls have worked extremely hard f or the city f or a number of years . Mayo r Stirling read resolution #18, commending Charlotte Walls and presented the resolution to Charlotte. Councilwoman Fallin moved to adopt Resolution #18, Series of 1987; seconded by Councilman Isaac. All in favor, motion carried. Mayor Stirling read resolution #17, commending Charles Collins, and presented the resolution to Charles. Councilman Isaac moved to adopt Resolution #17, Series of 1987; seconded by Councilwoman Fallin. All in favor, motion carried. swEA~ING -~-~-~---eo~~e~ Municipal Judge Brooke Peterson gave the oath of office to new Councilmembers Michael Gassman and Bill Tuite and the oath of office to Bill Stirling as Mayor and presented them with certifi- cates of election of office. Council put off the election of Mayor Pro Tem and Council Appointments until June 22, 1987. Council requested staff prepare a list of the boards that Council is appointed to and what the city's role is and what these boards entail. Councilwoman Fallin moved to table the election of Mayor Pro Tem and Council appointments to June 22, 1987; seconded by Councilman Tuite. 16 ~n~re~rr C-ity Council - -June-- 8_, 1987 Mayor Stirling said Council should appoint the Mayor Pro Tem tonight and put the Council appointments off for two weeks. Councilmembers Fallin, Gassman and Tuite in favor; Councilman Isaac and Mayor Stirling opposed. Motion carried. Council requested staff add scheduling a Council Goals session to the June 22, 1987, agenda. ORIrINAN~CL ~4-:-SER__~ES f1~`~i-9-87 - Sal a of Red Roof City Manager Bob Anderson pointed out the changes in the second draft of the contract. Councilwoman Fallin moved to read Ordinance #24, Series of 1987; seconded by Councilman Isaac. Mayor Stirling said Council does need more discussion and it may be premature to read this ordinance on first reading. Councilman Gassman said he has reservations with the contract, and would rather have a firmer contract before going through the bother of an ordinance. City Attorney Taddune agreed it is good practice to have a feeling for a contract that is being approved. Taddune told Council this conceptually articulates where the agreement stands and the staff will work to refine it before second reading. There will be a public hearing before final adoption. All in favor, with the exception of Councilman Gassman and Mayor Stirling. Motion carried. ORDINANCE #24 (Series of 1987) AN ORDINANCE APPROVING THE AGREEMENT FOR THE PURCHASE AND SALE OF REAL ESTATE BETWEEN THE CITY OF ASPEN, COLORADO, AND INFOTEL PARTNERS, PROVIDING FOR THE SALE OF L OT 2 , GOL F COURSE SUBDIVISION, COMMONLY KNOWN AS THE RED ROOF INN BY THE CITY OF ASPEN TO INFOTEL PARTNERS FOR THE PURCHASE PRICES OF $2,250,000 INCLUD- ING ALL IMPROVEMENTS, FURNITURE, FIXTURES, SETTING FORTH THE TERMS AND CONDITIONS FOR SUCH SALES, AUTHORI- Z ING THE MAYOR TO EXECUTE SAID AGREEMENT AND ALL OTHER DOCUMENTS NECESSARY TO ACCOMPLISH SAID SALE ON BEHALF OF THE CITY OF ASPEN was read by the city clerk Councilman Isaac moved to adopt Ordinance #24, Series of 1987, on first reading; seconded by Councilwoman Fallin. 17 Recrul-ar --i~teet-i-na-----_------ ----:_~=~,n-_City_ Cotmci __ _3une- 81 1987 Councilman Tuite said he reviewed all the offers for the Red Roof property. Councilman Tuite said this was the best offer and was a cash offer. Councilman Tuite said the agreement in paragraph 5(b) stated it will be appraised at not less than the sales prices. Councilman Tuite said if the city starts entering into a negotiation, this should be opened up to bidders again. The offer to the city was what Council based their decision on. Steve Conger said they have agreed to delete paragraph 5 (b) from the agreement to purchase. Councilwoman Fallin agreed the city was not to be involved in any financing. Conger said they have been trying to take out the provisions that the city objects to. Councilman Gassman said he does not feel the liquor license approval contingency is appropriate nor is the agreement for the land use approvals. Councilman Gassman said this would be making land use approvals through contract rather than through the legislative land use process. Klein said the contract does not state that Council agrees to the land use approvals but states it is a pre-condition to the closing that Infotel has obtained any approvals needed. Klein said many contracts have a land use contingency. Klein said there are relatively minor land use changes proposed and no one is sure that they even require approval. The applicant would like the opportunity to go to the planning office to determine what requires approval. Klein pointed out these are listed as exhibit B. Klein said Infotel should not be penalized as a purchaser because they are dealing with the city as a seller. Infotel should have the same type of protection that any buyer would have. Councilman Gassman said the contract states not later than the date of closing, land use approvals shall have been obtained from the city, and that is putting the Council in the position of guaranteeing those approvals will have been obtained. Klein said the intent is that there is no obligation on the part of the city for approvals, and that this will go through the normal approval process. Klein said the language should be clarified. Councilman Isaac said when the Red Roof signed a contract wit h the city, the contract stated how they would perform; how many days they would be open, the services they would provide the golf course, etc. Councilman Isaac said these types of things are not in this contract; it is a buyer's contract. Councilman Isaac said he would like to see the city's interest protected more. Councilman Isaac said he is willing to go along with first reading of the ordinance, but would 1 ike to see a lot of work on the contract before second reading. Conger said the restaurant will be open to the public on a year- round basis, there will be service to the golfers, there will be access to the tennis courts. Conger noted Infotel would like to build more tennis courts. Conger requested any suggestions from 18 ~-gula r M-e et i~rrcr-_._____._._ .__ _ _--As-ue-n-- amity - Co tm_c • _ l _ __ - -- Jun e__ _ _ 9 8- Council be given to the city manager so Inf otel can work with staff on these before second reading. Councilwoman Fallin said it is critical to have service for golfers. Councilwoman Fallin asked if the rooms will be rented on a short term basis. Conger said the rooms will be available both to their conferences and to the public . Conge r said there will be times when conferences will rent the entire facility. Conger told Council Infotel has been talking to several sports psychologists to have a physical exercise component to their operation. Herb Klein told Council they plan to form a limited partnership, which would be the funding vehicle. Infotel will be the general partner and will control the entity. K1 ein told Council the percentages have not been worked out. Roll call vote; Councilmembers Isaac, yes; Fallin, yes; Gassman, yes; Tuite, yes; Mayor Stirling, yes. Motion carried. Councilwoman Fallin moved to suspend the rules and continues the meeting to no later than 9:30 p.m.; seconded by Councilman Tuite. All in favor, with the exception of Mayor Stirling. Motion carried. T-H ~; . _~ RI~_ -flH~`866~-~ I N Iii Elyse Elliott, engineering department, told Council the Grill is asking to extend their mall lease from 10 feet to 12-1/2 feet. The Grill is presently occupying space 12-1/2 feet into the mall. Ms. Elliott told Council the Grill is also asking to use as dining area the space south of the Grill next to Wagner Park. The walkway is 11'8" and the Grill would like to take up 6'8". Mickey Herron, representing the applicant, said when the original owner set up the mall space, the fence went out 12-1/2 feet. The present owner set up the space according to the previous fence posts. Herron said the Grill mall space has two trees encom- passed within it. This is the only mall lease that has trees within it. The trees take up 50 feet that cannot be used. The mall resolution provides the space should be 10 feet from the building. The lease in paragraph 5(a) states this lease shall not extend 10 feet from the building excluding any encroachments. Herron reminded Council the Grill has obtained an encroachment from the city of 18 inches for the bay windows. If the mall lease is measured from the bay windows, it only extends 7 inches. Herron said he feels the criteria adopted in the mall leases was for the malls on Hyman and Cooper. The Mill street mall is constructed differently; there is more space and is not blocked off by water ways. Herron said the criteria f or the different malls should have been different. Ms. Elliott told Council the vote at CCLC was two to two; two members felts the mall space was already there and poses no problems. The other two members 19 Re atx i a r--fie e tiara---__.__ _ --- ___ _ _~ ~ _... C itv. Co~un~ r l _ _ _ _ _ _ _ _J un a ._ 8 9 8 feel this sets a bad precedent and the other outdoor spaces are bound to 10 feet. Ms. Elliott told Council the other referral agencies had no problems, except finance notes they should be paying for more square footage. Herron questioned having to pay for the areas where the trees are. Councilman Isaac moved to correct the mall lease for the Grill to reflect the actual area that has been historically used f or dining on Mill street; seconded by Councilman Gassman. Jon Busch pointed out that the existing dining area extends 2 feet to the south beyond the building. All in favor, with the exception of Mayor Stirling, Motion carried. Council said the lessee will pay for the entire area including the tree wells. Herron said the area to the south of the Grill is in an alleyway that runs all the way to Monarch. The alley behind the Prospec- tor, to the west, is 5 feet wide. The applicant would like to use all but 5 f eet next to his building. Herron said the city staff points out that people eating in this area may be subject to danger from activities in the park. Herron pointed out the children's playground area is closer to the park and it is not closed during activities in the park. Herron said the alleyway area is not used as an access. Herron said this space would serve the public need, would open up additional dining space on the mall. These areas are very attractive to the city. Mayor Stirling noted everyone woul d 1 ike to be able to use city right-o~f-way. Mayor Stirling said the mall leases are an excep- tion to allowing this type of use. Mayor Stirling said he is co ncerne d about congestion on the south side of this building. Councilwoman Fallin said she is opposed to granting a lease o n the south side of the building. There are too many people using this area for walkway or watching activities in the park. Marvin Jordan, CCLC, pointed out there is storage space leased in the building to the west of the Grill and there is need to bring trucks down that alleyway to the entrance of the Wheeler Square building. Jordan said if this extension is granted, it would eliminate the possibility of serving the Wheeler Square building. Council was not in favor of granting this extension to the south. REOUH~--i~--Ei~-~S~HM~T - E11 i' s of Aspen Elyse Elliott, engineering department, told Council the request is for 5 encroachments for the renovation and expansion of Ell i's. One encroachment is for 5 raised planters along Mill street. Ms. Elliott recommended against this as they inhibit pedestrian flow. A second encroachment is a planter on the Main 20 Re-au l-a r-- _._ _ _------ prs~ezr~City __~o~u~lcz~ _._ _ _ ._ _J-une- S _ 8_... street sidewalk that is mainly on their property but extends over to the city' s property by 1 ' 6" . Ms. E11 iott said the CCLC looked at this request, and feels there is benefit only to the applicant. A third encroachment request is for an irrigation system on both sidewalks. Ms. Elliott recommended approval of this request as it would assure that plants on city right-of -way would receive proper care. The fourth request is the historical encroachments, planters boxes, awnings. Ms. Elliott said staff has no problems with these encroachments except to request that the awnings remain retractable. The fifth request is for subgrade footings that will extend 1 foot into the alley and sidewalk rights-of -way. Ms. Elliott told Council these will be 10 feet below grade. The utilities companies have no problems with this request. Heidi Hoffman, representing the applicant, told Council the applicant would like to plant the area on Mill street and the raised planters will incorporate trees and flowers. Councilman Gassman said one of the problems in the city, in the transporta- tion plan, is the sidewalks. These would obstruct an already busy sidewalk. Council did not favor this request. Ms. Hoffman said the second request for the planter on Main street, there is more than adequate pedestrian room on this sidewalk. The planter will allow for two trees and annual flowers. There will be 8 feet of sidewalk, not counting the planter. Council prefers the applicant work this into their own property. Councilwoman Fallin moved to approve the encroachment request for the irrigation system on both sidewalks, with the condition the watering is monitored; seconded by Mayor Stirling. All in favor, motion carried. Councilman Gassman moved to approve the historical encroachments for awnings, planters, exterior lighting, concrete steps, overhang; seconded by Councilwoman Fallin. All in favor, motion carried. Mayor Stirling asked why the subgrade footings have to encroach in the alley. Ms. Hoffman said the worst case is that they encroach 2 inches. Ms. Hoffman said she did not know when the project started how big the square footings would be. Councilman Isaac moved to approve the request for the historical encroachments in the alley and Main and Mill street frontage; seconded by Councilwoman Fallin. All in favor, with the excep- tion of Councilman Gassman and Mayor Stirling. Motion carried. 21 ~qul_ar Me~ti-rna--_-___.-__- ___A~suEm-~ty_-Co-uncil_ _- - - - 3une- 8 - _ 8~ Jon Busch, CCLC, said in their work with the streetscape guide- lines, they have requested in tree plantings that there be tree grates. Mayor Stirling moved to request the applicant to do the tree planting with tree grates; seconded by Councilman Tuite. All in favor, motion carried. Mayor Stirling moved to suspend the rules and continue the meeting to 10:00 p.m. ; seconded by Councilman Tuite. All in favor, with the exception of Councilmembers Fallin and Gassman. Motion carried. AR~~-RAT -~itfiH ~i~-- ~- $#~--RAC ~E~B~I-CAg`ifli~.. _F~E Steve Burstein, planning office, showed Council maps of the property, located at the dead end of Francis street. Burstein told Council an applicant has the right to request to dedicate land in lieu of a park dedication fee. Burstein said the applicants have suggested to dedicate right-of-way and open space land, which was appraised at $6700, and the estimated park dedication fee was 55025. Burstein said the city would be receiving a benefit by having clear right-of-way on power plant road and from the open space. Burstein said recommended condi- tions are if the applicant builds more than 2 four-bedroom units, then this should be reconsidered by Council, as the park dedica- tion fee value may change. The second condition is that a subdivision exemption plat be filed f or parcelling out the land and a building envelope be drawn. Burstein noted there are two zoning categories on this parcel; however, the bulk of the property is within the R-6, a small portion is zoned R-30. Councilman Gassman said the idea of land in lieu of cash is that there be some use of the land, and there does not seem to be a use to the city for this land. Burstein said this is basically open space. Councilman Gassman said this land would be open anyway, whether the city owns it or not. Councilman Gassman said he would rather have the cash. Councilman Isaac moved to accept the land dedication f or right- of-way and open space in 1 ieu of cash payment of park dedication fee as requested, subject to the conditions in Burstein's memo. Motion DIES for lack of a second. Laurie Moss said the city built this road without paying the people for this property. Mayor Stirling said a prescrip tive easement is uninterrupted use f or 18 years. Ms. Moss said this property owner would like to build a duplex on this site and not use the hillside. Ms. Moss said it would be beneficial to the 22 ~;- rss~ city to have this as open space because it could be built on; there is no slope reduction on this land. Councilwoman Fallin moved to table this until June 22, 1987, to give the city attorney time to review the implications of the road on this property; seconded by Councilman Tuite. Burstein said he has discussed this with staff and there is prescriptive rights on the road. Councilwoman Fallin withdrew her motion. Council said the city has the right to the road. 1010 Ute Avenue Jay Hammond, city engineer, told Council it is in the (Coun- cilwoman Fallin left the room due to conflict of interest) interests of the city to make improvements to the ditch to enhance the city's ability to get water through the Wheeler East Aspen ditch. The applicant has said they will trade direct costs of those improvements to the tap fee. Gideon Kaufman pointed out this is a dollar for dollar trade; the applicant will only get a reduction in tap fees f or as much as they put int o the ditch. Hammond said staff does not know the costs of these improvements, it could be in excess of $10,000. There is not a good diversion structure in the ditch. Skip Berhorst said these improvements to the ditch will enhance the city's use rights be improving the ditch and headgate. City Manager Bob Anderson said if the city did the work on this ditch, the money would be taken out of the water fund. Hammond pointed out this is the distinction between this request and granting a tap fee f or nothing. Mayor Stirling asked what would be a proposed water tap fee f or one of these houses. Berhorst said a 3/4 inch tap for a four bedroom house would be $8500. Hammond told Council these are city facilities, the city's concern, and staff will have the engineering done by a city consultant. Mayor Stirling said the city would have to spend money out of the water fund to have this engineering done. Anderson said these improvements are distinct from the appli- cants use of the ditch. Hammond said not only are the imrpvoe- ments beneficial, the applicant's use of the water is beneficial to the city in that it places another demand on the city's rights to the ditch. Hammond told Council the applicant's use of raw water for irrigation is in keeping with city policies. Councilman Isaac asked how much it would cost the applicant to pay for irrigation. Kaufman said it is $60 per acre per year, or a total of $360 versus the benefit of preserving the water rights. Kaufman said there are not many land subdivisions in the city, and this is a opportunity to get beneficial use of the water and to have the applicant upgrade the system. 23 Mayor Stirling moved to approve the 1010 raw water agreement; seconded by Councilman Tuite. Councilman Isaac said he is uncomfortable with this agreement. All in favor, with the exception of Councilman Isaac. Motion carried. Councilman Isaac moved to approve the consent agenda; seconded by Councilman Tuite. The consent agenda is Special Event Permit- Rugby Club; Liquor license Renewals - Cantina; Takah Sushi; Minutes April 27, 1987. All in favor, motion carried. Councilwoman Fallin said there are new rules and regulations coming from the state legislature on 3.2 beer and to whom it can be sold. Councilwoman Fallin said she would like the rugby club to have someone checking IDs. Council agreed with this request. eOMM~-I~-i-~~`P i$i~S-T~Pri~-i-~3~ ..--~-~E---E~~i'~T~ACT Councilman Tuite said his concern is that the public is being charged more for this course than for city and county employees. Councilman Tuite said he would like the price to be the same. City Manager Bob Anderson said typically organizations that do a volume business do get a discount. Anderson said he is trying to make this course available to as many people as possible. Anderson told Council this course is being offered at a price of 2 people for the price of 1. The minimum course cost is $12,500. The city has come up with $5,000 by selling a truck, which should cover the cost of police personnel and other regulatory employe- es. Councilman Tuite moved to approve the communication training course contract as discussed with the change that outside participant s be charged 5250; seconded by Councilwoman Fallin. All in favor, motion carried. Councilman Isaac moved to adjourn at 10:00 p.m. ; seconded by Councilman Tuite. All in favor, motion carried. ~-----~ / ~/1 ' -- - _ _. _ _ _ Kathryn Koch, City clerk 24