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HomeMy WebLinkAboutminutes.council.19910708Regular Meeting Asnen City Council Jul 8 1991 Y CITIZEN COMMENTS 1 ORDINANCE #18, SERIES OF 1991 - Institutional Controls Smuggler 2 . . . . COUNCILMEMBER COMMENTS ~ CONS ENT CALENDAR 9 LIQUOR LICENSE RENEWALS 9 SPECIAL EVENT PERMITS g ORDINANCE #21, SERIES OF 1991 - Electrical Code Revision , 9 REPORT OF ENERGY COMMITTEE 10 19 9 0 FINANCIAL REPORT 11 APPEAL OF CODE INTERPRETATION 13 HUNTER CREEK ACCESS 14 RUEDI RESERVOIR WATER RELEASE 16 RFTA CROSS TOWN SHUTTLE 18 19 Regular Meetinct Aspen City Council July 8,_1991 Mayor Bennett called the meeting to order at 5 p.m. with Council- members Richards, Pendleton, Reno and Peters present. Mayor Bennett said Ordinance #17, Tagert Lot Split will be tabled; the Youth Center Lease will be continued; Ruedi Reservoir Water Release and RFTA Cross Town Shuttle may be moved to action items. Ordinance #18, Institutional Controls on Smuggler will be the second item on the agenda. CITIZEN COMMENTS 1. Dave Harris, 533 Spruce Street told Council every morning at 5:30 hot air balloons take off from Rio Grande park and wake him up. Their set up requires a large fan and as they fill the balloons up it gets louder and louder. Harris said there is no noise regulations governing balloons at 5:30 a.m. Council requested Carol O'Dowd, city manager, look into this and report back. 2. Doug Allen, property owner affected by the proposed under- grounding, said staff may be requesting this project be dropped. Allen said the letter sent out to the homeowners by staff contained figures that may be revised down. Allen said this project should be reconsidered as the costs may be less than previously stated. Mayor Bennett said staff had suggested the city wait until the residents make their mind up about this project rather than imposing a project that is not acceptable to the homeowners . Allen said he would be willing to work with staff on this project. Councilman Peters said it would be worth it to renotice property owners with new costs to see if there is interest. 3. David Muckenhirn, Snowbunny Lane, submitted a letter to Council on the same issue, undergrounding project. Muckenhirn said the original costs were $7,000; there may be creative ways to reduce this cost. Everyone wants the project done; however, many people objected to the costs. Muckenhirn requested this project not be abandoned by the city and that a more accurate letter be sent to the property owners. Mayor Bennett said Council would like to see the community more united on this project before it goes farther. Councilman Reno said the property owners should also be working with Holy Cross to drop their primaries fairly close to where they are currently located which will decrease the costs of the secondary to the homeowners. 4. Paul Lux, Snowbunny Lane, agreed with Muckenhirn about the undergrounding project. Lux said the power lines are unsightly. Lux told Council after he received the letter, he was confused about the costs. Lux also requested the city not drop the project yet. Carol O'Dowd, city manager, told Council she will sent out a letter explaining the data and costs to the property owners. 1 Regular Meeting Aspen City Council July 8, 1991 Councilman Peters suggested including a form reply. Mayor Bennett agreed with the concept of a citizens group on this project. Councilman Peters moved to table Ordinance #17, Tagert Lot Split Amendment; Ordinance #20, GMQS Exemption Messiah Lutheran Church, Ordinance #22, Code Amendment Square Footage, and Ordinance #24, Pitkin County Bank Vested Right to July 22; to remove Aspen Youth Center Lease from the agenda at the request of the applicant; and to move Ordinance #18, Institutional Controls Smuggler to the next item; seconded by Councilwoman Richards. (Councilman Reno stepped down due to a conflict of interest) . All in favor, motion carried. ORDINANCE #18, SERIES OF 1991 - Institutional Controls Smuggler Jim Scherer said the remediation method selected and negotiated as the Denver agreement called for less than a ... than is nationally used on lead; a minimum of 2 feet is used, and this area was to have 1 foot. This requires institutional controls to make sure the remedy stays in place. Alston said the EPA is in the bidding mode; the contract, through the Bureau of Reclamation, is out for bid. Alston said it will be impossible for the EPA to go ahead with the remediation without the institutional controls in place. Alston requested if Council is not going to enact the institutional controls, that they continue them into the future. The EPA will have to consider their options. Alston told Council the EPA does not have the authority to remove a site from the list unless it is remediated. This is not an option. Alston said the EPA feels the best thing to do is get on with as much remediation as possible without institutional controls. Alston said the EPA can remediate hot spots that do not require institutional controls. Alston said they will move hot spots that have 20 to 40,000 ppm that are way above any standards and are the highest risk area. Alston said with this work, the EPA hopes to convince the community they can do the work right and do the rest of the work next summer. Alston suggested the city appoint a group or individual or hire a technical assistant to represent the community to watch over the remediation work. Scherer said during this time the city may go ahead with additional health studies. Scherer said the Agency does not have financial capabilities for the studies nor is that their role. The EPA is an environmental agency; they are to make sure that the environment is not a problem. Patti Clapper asked if the city does not approve the institutional controls, which are the last part of the deal for the contract, 4 party agreement, by July 31st, what happens to the state superfund contract and the lawsuit that is pending. Person said the EPA has requested of all parties that the July 1st date be extended to July 31. The city has not yet discussed this. Mayor Bennett said the topic of an earlier meeting was the city ~ s request 2 Regular Meeting Aspen City Council July 8, 1991 and EPA's agreement to furnish additional technical details of exactly what they are proposing to do this summer. Ms. Clapper noted the EPA was only going to do a limited remediation plan this summer anyway. Stephanie Costello told Council her land in Smuggler lies adjacent to and is part of the berm area. Part of her land has been fenced off for the last 5 years . Ms . Costello said she has been negotiat- ing with the EPA on the relocation of the berm and has not been able to come to an agreement. Ms. Costello said there is no plot plan or agreement on what will be done on her property. The EPA is pushing for a clean up process to begin and there is no agreement on the finished look of the berm and the residences along the berm. Ms. Costello pointed out the berm acts as a sound and visual barrier between Smuggler and the Racquet Club. Mayor Bennett asked if it is possible to get more information from the EPA on the berm and its relocation. Mark Alston said he thought the berm configu- ration was worked out. Ms. Costello said the location and materials have not been agreed to and there is nothing signed. Sue, president of Smuggler homeowners association, told Council their association does not yet have a remediation plan for the common areas. Sue said they too are concerned about what the remediation will look like for the Racquet Club repository. Sue said they would like to see finished drawings and a remediation plan. Mayor Bennett said EPA has said they do not need Council's agreement to go forward with their plan. Mayor Bennett asked that the berm related concerns be addressed by the EPA. Barry Siegel said the purpose in delaying the clean up is to protect the residents from possible airborne contamination. Siegel said it seems the residents should have the scientific data to reassure them before the clean up is started. Siegel said he would like to see pictures of the planned repository. Siegel said he would like to know that the dirtiest dirt is not going to be moved before it is moved. Tim Anderson, Smuggler Trailer Park, said the EPA is making this up as they go along. Anderson said the EPA law is not just. Anderson said he would like the noise aspect of the clean up probed. Deedee Brownstein said she is concerned about noise and diesel fuel. This is not the way to care for the earth. Preparing the repositories is moving dirt and boulders around. Sue Considine, Smuggler Trailer homeowners association, said if the homeowners want to dig trees or beautify their land, they will have to get permits. The rules in the institutional controls are unacceptable. Terry Hale told Council he has gotten involved in this because the EPA does not seem to be doing this project right. Hale said the real question is whether there should be a remediation at all. Hale pointed out the EPA standards for blood levels in post 3 Regular Meeting Aspen City Council July 8, 1991 remediation are that 95 percent of the population be under 10. Aspen's population is already was under 10. Hale said Aspen is a town of environmentalists and is in favor of what the EPA generally is trying to do. Hale said it is not easy to share the idea that this area needs remediation in the face of all data that has been accumulated. Hale asked who would have to tell the EPA that there is no health hazard in this community. Scherer said EPA is not a health agency and does not regulate human health; the EPA regulates the environment. The standards the EPA is given is that 500 ppm of lead is an acceptable level. Scherer pointed out this has already been changed that to 1000 ppm. Scherer said when there is a change in Washington D.C. in the scientific community that supports the standard, he will change his implementation. Scherer said it is the cumulative effect of lead in the environment that is the responsibility of the EPA by law to get rid of. Nick DeWolfe said cleaning lead up is a high tax burden being imposed on the citizens. DeWolfe said residents feel this program will reduce the lead levels by 2 or 3 micrograms per deciliter of 1 or 2 people at a cost of $30,000,000 for stages 1, 2, and 3. DeWolfe said that is too high a cost to pay. DeWolfe said a large scale blood test should be done before one wheelbarrow of dirt is moved. DeWolfe said this study should be done so that the community is in the position of making the EPA liable if people's lead levels go up. Pat Simpson, Smuggler Trailer Court, said geotextile put in the dirt that is going to last 50 to 100 years has got to be more dangerous than the lead currently in the soil. Ms. Simpson said the green muck they are going to use in the area must also be dangerous. Tom Dunlop, environmental health department said this is a dust stablizer with color added which is being used at the request of the BOR. Jan Wirth, Smuggler Caucus, told Council they were given the encouragement there may be room for negotiations. The Caucus came up with proposals for negotiating points and possibilities under the ROD and suggestions for future actions that everyone could work on. Mike Garrish commended Council for their time on this issue. Garrish told Council he has lived in this area 80 years, worked in the mines, and gardened, and is healthy. Garrish now has 1/2 acre in the superfund site that he cannot sell or contract out. Patty Clapper said as long as mines have operable permits, they do not have to be remediated. Scherer said the mine would be under a permit from the state of Colorado. It would be outside the purview of the superfund. The tailings in place right now would be within the purview of the superfund. Jeff Winagle asked what is the liability of EPA to the city for 2500 dump truck loads of dirt 4 Regular Meetina Aspen Citv Council July 8, 1991 going through town on the roads, bridges and pedestrians, and to the tourist industry. Scherer said the EPA is liable for negli- gence. Scherer said one reason the EPA went with an on-site remedy was because of tourism. John Moscato, attorney for Department of Justice, said the United States liability is defined in the federal court claims act, like negligible acts. Moscato said there may be other laws that permit legal action against the United States. Moscato said the Agency cannot say what it's liability is for acts that are speculative. Moscato said the Agency needs to comply with the same types of regulations the city applies to normal construc- tion activity when they are off-site. Winagle asked what the noise and pollution factor for 3 years of 2500 more trucks going up and down the city trucks would be. Dunlop said he does not perceive the EPA as different from anyone else they would take an action against. The EPA knows the maximum sound level readings. The environmental health department will enforce on complaints. Phoebe Ryerson asked why the EPA cannot delay this whole project until more medical reports are in and the petitions in the county are in. Councilwoman Richards asked if there is a relocation plan for Council to look at. EPA representa- tive told Council they will have this plan when they give Council the report to look at. Dodie Rourke told Council she has received a letter stating they will have to be relocated for 3 weeks, which is a long time to move out of one's residence. Councilwoman Richards also requested a mock up of what the repository is going to look like. Councilman Reno said he favors continuing this until there is more detail on the EPA proposal. Scherer agreed the city deserves a relocation plan and a conceptual plan of the repository plan before they adopt the institutional controls. The citizens next to the berm need to know how it will work aesthetically and for a noise barrier. The EPA will come back to Council with these plans. Councilman Reno said he would like to see as much information on the entire program, including operable unit #2, before the city votes on the institutional controls. Angie Griffith asked why one has to wait 5 years after remediation to get off the list. Scherer said the 5 years is from the beginning of the remediation and the reason is to make sure the remedy works. Moscato said 120(c) mandates 5 years review whenever hazardous waste is left at a site. Someone said there is a recent residential liability policy change made by EPA which states if an individual homeowner is cooperative in the clean up of their site, there will not be any liability on the part of that homeowner. Scherer said this indicates the same would be true of future homeowners who buy a site. Walt Siebert asked if the city can find out why the EPA does not have to do an environmental impact statement. Jed Caswall, city attorney, said he has researched this and found that the EPA has 5 Reaular Meetina Asben Citv Council Julv 8. 1991 been exempted from having to perform those types of analysis. Caswall pointed out most of these analysis are submitted to the EPA for their study. This issue has been litigated and the EPA has prevailed. Coleman suggested getting the EPA to upgrade Chris Weiss's study to include a more realistic estimate of the differen- tial impact of their proposed remediation but also to cover dust that is brought indoors and trapped. Councilman Peters asked if the city has gotten a response from the EPA requesting the allowable blood levels be lowered. Dunlop told Council he has not received a response. DeWolfe asked if backup beepers meet the city's noise standards. Dunlop said mobile sources are allowed louder decibel levels because they are thought to be transient. Mayor Bennett closed the public hearing. Councilman Reno moved to table Ordinance #18, Series of 1991, to July 22, 1991; seconded by Councilman Peters. Councilman Peters asked if the contract for air quality monitoring will be let with the overall contract for clean up; will one contractor be responsible for both. Dunlop said there will be a prime contractor awarded the major contract and subcontractors under that. They will hire a company or health and safety officer to do the monitoring separate from the prime contract. Dunlop told Council he requested the ability to look at the air monitors and to request equal authority with the Bureau employee to discontinue work on the project if their health and safety officer does not initiate that action. Dunlop said he cannot order the contractor to stop work but can go to the health and safety officer and have them order work to be stopped. Mayor Bennett said the EPA seems to be inviting that type of participation. Mayor Bennett said if the city cannot stop the work from starting this summer, they ought to make sure there is all the monitoring with the city ability to shut the job down. Mayor Bennett said the city ought to take that right unilaterally if it is not offered by the EPA. Councilwoman Pendleton said the city ought to be pushing for blood level studies to be done before one shovel of dirt is turned. Roll call vote; Councilmembers Pendleton, yes; Peters, yes; Richards, yes; Reno, yes; Mayor Bennett, yes. Motion carried. Mayor Bennett suggested directing the city staff to get together with the medical community, the residents, the EPA and CDC to plan a health study to determine what type of health threat there is. Dunlop said he would like to set a strategy session to see where they are going to go with this, get some guidelines laid out and see where there are resources. Terry Hale told Council a medical committee staff has been set up from the hospital. Si Coleman 6 Regular Meeting Aspen City Council July 8, 1991 pointed out federal agencies are very protective of their methodol- ogy and if tests are not done their way, they will determine the tests are not valid. Mayor Bennett said the EPA in Washington should know the second thing the Council did after tabling the institutional controls was to vote on the health issues. Councilman Peters moved to direct the city manager to work through the environmental health department to coordinate with the Aspen Valley Hospital staff and board and the EPA and ATSDR to devise a health study that may include a blood screening program to evaluate the environmental risk of living in Aspen; seconded by Councilman Reno. All in favor, motion carried. Councilman Peters said one question that has come up is what has happened to the Colorado Department of Health study and why is it taking so long. Councilman Peters moved the city Council request of the Colorado Department of Health that this report and raw data be released immediately; seconded by Councilwoman Pendleton. All in favor, motion carried. COUNCILMEMBER COMMENTS 1. Councilwoman Richards said she has received a call from citizens regarding the danger of bicycle riding on sidewalks. Councilwoman Richards said this should be added to the work program for the pedestrian enhancement of the downtown area. 2. Councilwoman Richards asked the city attorney for a written legal statement to have payroll bonding for new businesses or out of state ownership of businesses. If this is not possible to do through liquor license process, suggestions for the same objective. Councilwoman Richards said she is looking for protecting the employees or small persons from having to collect monies from out of state. 3. Councilwoman Richards said the airport has conducted an independent audit of the airport hostess program. Councilwoman Richards asked that the airport and county make this available to the city when it is complete. Councilwoman Richards requested the city manager prepare a proposal for Council to consider auditing the funds the city gives to the Aspen Chamber Resort Association in general and in specific to the visitor's center. Councilwoman Richards said she would like to understand how many employees this buys the city; what are the performance standards of these employees; are all funds passed forward to the ACRA being spent in the visitor's center. Council agreed with this request. Council- woman Pendleton said she resists singled out one group; this should either be done for all groups Council gives money to or none. Councilwoman Richards agreed but said she is concerned about the magnitude of funds given to the ACRA. Carol O'Dowd, city manager, 7 Reaular Meetina Aspen Citv Council July 8, 1991 told Council one procedure for this year's budget is for groups that have received money from the city to write up what they did with these funds and how they implemented what Council contributed funds for. Mayor Bennett asked if Council specifically wants an audit or wants an accounting of how the money was spend. Council- woman Richards said she wants an audit. Mayor Bennett requested the city manager to bring back to Council what this would entail. 4. Councilwoman Richards said she is concerned about the discussions between RFTA and the Ski Company regarding the skier shuttle system. This has large effects on the city, the pedestrian plan and mass transit. Councilwoman Richards said there is a work session scheduled July 15th and Council should understand the players and the positions being taken on this issue. Councilwoman Richards requested the city manager have staff review the applica- tion of the Little Nell SPA and the gondola as it relates to traffic mitigations and assurance given to Council on traffic generated from the center. Councilwoman Richards said Council also has to look at the sales taxes and the free city buses that take people to Rubey park in order to use the free skier shuttle. Councilwoman Richards requested research from the city attorney's office why there is no tax on ski lift taxes. Amy Margerum, planning director, told Council staff is working on the research. Councilwoman Richards said it is important that this issue come to full community light. The community needs to answer the large questions of whether there is a commitment to mass transit; is the community willing to trash a great marketing tool ; is the community willing to eliminate the greatest perceived value that the guests receive. Councilwoman Richards said the ski company has not been taxed on its transportation impact because it had voluntarily contracted to mitigate that impact. 5. Councilwoman Pendleton moved to move RFTA Cross Town Shuttle to IX(f); seconded by Councilman Peters. All in favor, motion carried. 6. Councilwoman Pendleton brought up the housing day care fund. Councilwoman Pendleton said she has not been able to read the housing authority's budget. Councilwoman Pendleton said she has pushed to get housing produced. Councilwoman Pendleton suggested Council sit down with the housing board and housing authority to determine what subsidy Council feels comfortable with, what units they want to see produced, and what Council expects from the housing authority. Councilwoman Pendleton said she expects a much better accounting system for the monies given than what she has received. Councilwoman Pendleton said she thought the city would be getting monies back from housing project that would be turned into more projects. Councilwoman Pendleton requested input from other Councilmembers on what they would like covered at a work session. Council scheduled this for August 5 at 5 p.m. 8 Regular Meeting Aspen Citv Council Julv 8, 1991 7. Councilwoman Pendleton commented the ice cream social was a good community event and complimented the Historical Society for putting this event on. 8. Councilman Reno agreed with Councilwoman Richards' comments on the skier shuttle. Councilman Reno emphasized any work should be done in a spirit of cooperation rather than "us" and "them". 9. Councilwoman Pendleton nominated Augie Reno to serve on the Nordic Council; seconded by Councilwoman Richards. All in favor, motion carried. 10. Councilman Reno said he received a letter about the drainage problem in the west end. Councilman Reno said during budget he would like to see proposals from the staff on what can be done in the west end to help the drainage. 11. Councilman Reno thanked staff for arranging 2 extra weeks on the day camp. CONSENT CALENDAR Councilman Peters moved to approve the consent calendar; seconded by Councilwoman Richards. The consent calendar is (a) Minutes June 10, 24, 1991; (b) City Hall Bike Lockers. All in favor, motion carried. LIQUOR LICENSE RENEWALS Councilwoman Pendleton moved to approve the renewals of Syzygy and Omi; seconded by Councilman Reno. All in favor, motion carried. SPECIAL EVENT PERMITS Councilman Peters moved to approve the special event permit for Swiss American Day August 2 and Aspen Writers' Foundation July 27; seconded by Councilwoman Pendleton. All in favor, motion carried. ORDINANCE #21, SERIES OF 1991 - Electrical Code Revision Tom Parry, building department, told Council this amendment is to update the electric code to 1990 from 1978. Mayor Bennett opened the public hearing. There were no comments. Mayor Bennett closed the public hearing. Councilman Reno moved to adopt Ordinance #21, Series of 1991, on second reading; seconded by Councilwoman Pendleton. Roll call vote; Councilmembers Reno, yes; Pendleton, yes; Richards, yes; Peters, yes; Mayor Bennett, yes. Motion carried. 9 Regular Meetina Aspen City Council July 8, 1991 REPORT OF ENERGY COMMITTEE Bill Stirling said in April 1991 Council approved forming an energy committee in town. The committee has been working over the last 4 months. Stirling acknowledged members of the committee and the work they have done. The committee held a session and invited various vendors to demonstrate what is being done in energy efficiency . Stirling said the committee is trying to have Aspen do its part to slow global warming and halt acid rain. Stirling said the parts of this concept are efficiency, conservation, and self- sufficiency. Stirling said the committee is wrestling with a long range process and with immediate one project at a time. The committee has decided to use city hall as an example. Staff analyzed the last 15 months bills for city hall and it has cost $33,000 beginning April 1990. Stirling requested Council's approval to do an audit on city hall and bring to Council's budget hearings the cost for an energy retrofit. Stirling said the committee has asked the CCLC to do the same type presentation to Council on all the city's street lights. Tom Baker, assistant city manager's office, told Council the committee has estimated the city could save $.50 per square foot annually or $8,000 which is about 1/3 of the electric costs of the building. Baker said the Snowmass Club has done a retrofit of their facility. They have saved 66, 000 kwh and $3300 in the first year, including expanded hours of operation. Baker said energy efficient street bulbs over the life of the bulb over 1700 pounds of CO2 is being avoided is. Stirling requested a ceiling of $2,000 to come out of the city hall restoration fund. If the city uses less energy, they will be putting less pollutants into the air, damaging the eco-system less by not digging up fossil fuels. Stirling said transportation is the biggest energy conservation issue. The community needs to increase non-automobile travel. Mayor Bennett asked if this would not be a better use of contingency funds rather than from the city hall renovation fund. Councilwoman Richards asked if the work done in the energy audit would be able to be used in the renovation, and if so it would be a renovation item. Councilwoman Pendleton moved to direct the committee to advertise for bids to undertake and energy audit of city hall and if necessary to spend up to $2,000 of the city hall renovation fund; seconded by Councilwoman Richards. Baker said it is not legally required for this to go out to bids. Baker asked Council if they would trust the energy committee in getting a contract. Councilwoman Pendleton said she would be willing to accept the recommendation of the energy committee. Mayor Bennett said he would prefer to see the city bid everything. Mayor Bennett said for this project he would make an exception to 10 Reaular Meetina Asnen Citv Council Julv 8, 1991 his own rule. Councilman Peters said he does not want to waste the committee's time analyzing $2000 bids. Councilwoman Pendleton amended her motion to direct the committee to undertake an energy audit of city hall and if necessary to spend up to $2 , 000 of city hall renovation fund; seconded by Councilwoman Richards. All in favor, motion carried. 1990 FINANCIAL REPORT Cindy Wilson, finance director, introduced Dave DeZutter from Grant Thornton in Denver. DeZutter pointed out the Annual Financial Statement contains their audit opinion. Grant Thornton serves at the pleasure of the Council to fulfill the statutory audit functions. The Financial Statement is divided into an introductory letter from Cindy Wilson and her staff which summariz- es the 1990 financial information, including a certificate of achievement for financial reporting. The financial section is primarily what Grant Thornton is engaged to audit. DeZutter told Council theirs is a clean opinion and has been for several years. The financial section summarizes the accounting policies and methodology used to accumulate the information within the report. There are several different accounting policies and several different funds covered within the report. The final section of the financial statements are statistical summaries. These contain trend information, how expenditures have evolved over a 10 year period, how revenues have evolved. DeZutter said generally the city is in pretty strong financial position. During 1990 the sales taxes were up about 8.8 percent; total tax revenues were up about 14 percent; general governmental revenues are up about 3.5 percent overall; general governmental operating expenses are up about 6 percent. The general fund balance at the end of 1990 was about $1.9 million, which represents about 28 percent of the annual operating expenditures of the city or approximately 3 months. DeZutter told Council for operating funds, he recommends 1 to 3 months of operations in a fund balance. The land fund had $1.7 million reserve . The city' s policy has been to build up 70 percent of the debt service requirements or $650, 000 funded out of that fund. The mall fund has about $200,000 at the end of 1990. The city's goal is about 2 percent of operating expenditures or $140,000. The Wheeler fund has about $180,000; this fund is primarily servicing some debt and funds are trans- ferred this debt. DeZutter told Council at the end of 1990 there was about $1.7 million of fund balance in the housing/day care fund of which $780,000 has been designated as an expenditure to the 1991 budget primarily for the Kraut project. Another $700,000 of this fund is reserved to meet debt requirements under the g.o. housing bonds, 11 Regular Meeting Aspen Citv Council Julv 8, 1991 leaving about $200,000 fund balance. The debt service funds are to service the city's debt funded by sales tax. Council should keep an eye on the water fund; it has a $325,000 loss in 1990, about $1,000,000 was used in operation in 1990, primarily for construc- tion and capital assets. $900,000 was transferred to employee housing and repaid in 1991. The cash position of the water fund is getting slimmer. The electric fund has a $560,000 loss before depreciation, about $950,000 was transferred to other funds; $360,000 went into the transportation fund for overruns in the parking structure. This will not happen in the future. The parking fund generates sufficient sales tax revenue to service debt but not to cover operations. The Ruedi, golf course and ice garden funds are all cash sufficient; the operations have been consistent throughout the years and generate enough income to support their operations. DeZutter said the housing fund is comprised of the operations of 2 housing projects supported by general obligation debt. These are Truscott and Marolt project. There is a deficit in the fund; there is an operating income of $150,000 before depreciation. This fund needs to be watched very closely to make sure the operating revenues are sufficient to fund debt service and the operations of the projects. Councilwoman Richards asked if DeZutter would recommend specific funds that should have greater reserves. DeZutter said this is a decision of management and what they anticipate these funds to be doing in future years. Ms. O'Dowd told Council these are reviewed with Council during the budget process. DeZutter said the other document is a management letter. As part of the audit, they review the internal control procedures in the city and make a determination on the sufficiency of these proce- dures. DeZutter told Council they found the city's internal control structure is sufficient to safeguard the city's assets and to generate financial information that is able to be relied on. DeZutter said during the audit they come across practices they like to comment on to Council. The comment letter is divided into 2 sections. The first section addresses comments from the 1989 audit and the status of those issues. DeZutter pointed out in all instances the city has addressed the comments to the mutual satisfaction. DeZutter said one comment on the 1990 audit is the housing fund and the potential for cash flow shortages. Another comment relates to the enterprise funds and operating losses before depreciation. DeZutter recommended the useful lives of assets be looked at by staff and the auditors. This is not a significant issue from year to year but it can build up where it becomes a problem. 12 Regular Meetina Aspen Citv Council Julv 8. 1991 Councilman Peters moved to accept the 1990 financial report; seconded by Councilwoman Pendleton. All in favor, motion carried. APPEAL OF CODE INTERPRETATION Jed Caswall, city attorney, told Council staff was hand delivered a letter from Charles Collins' attorney, Tom Smith, asking to withdraw the request for the public hearing, not their appeal. Caswall asked Council to formally accept the letter. The applicant has waived their right to be present and to be heard. Councilwoman Richards asked about de novo and the implications to staff. Caswall said in his memorandum he pointed out the land use code does not specify the type of review under which they are to conduct this appeal. Caswall suggested Council use a standard of review which is arbitrary and capricious which means unless Council finds the interpretation is not substantiated by any reasonable interpre- tation of the Code, Council affirm that. The applicant's attorney has asked Council use a standard of review called de novo, which means Council start fresh; they hear the views of the planning director but do not give it any type of weight and make a determi- nation in the absence of the planning director's determination. Caswall asked Council specify which type of standard of review they are going to use and recommended using arbitrary and capricious. Council has the authority to review administrative decision making; generally these standards are arbitrary and capricious not de novo reviews. It is consistent and fair to continue to utilize that standard. Amy Margerum, planning director, told Council the first issue brought up by Collins was discussed in detail during the Meadows public hearings. The issue is that by putting a road across Charles Marquesee's lot, which is currently a non-conforming lot, it would be inconsistent with the non-conforming section of the land use code. Ms. Margerum told Council her interpretation of the land use code is that a new, non-conforming lot cannot be created. The code does not speak to an easement over an existing lot. Ms. Margerum said the second issue raised is subdivision. Collins was concerned throughout the process that the city was not following the subdivision requirements of the land use code as they related to the new road entering the Meadows property and the types of safety improvements for a new road. Ms. Margerum told Council this is not a real valid concern. Staff processed an amendment to the code to allow any project with an SPA overlay to vary the subdivision regulations. Ms. Margerum said Collins would have been correct if this code amendment was not processed prior to taking action on the Meadows. Councilwoman Richards asked if "new" is one lot that is changed for the creation of a new, second lot. Ms. Margerum said Collins feels 13 Regular Meeting Aspen City Council July 8, 1991 a new lot was created by virtue of putting an easement across an existing lot. Ms. Margerum said this is not creating a new lot. Councilman Peters asked if Marquesee received any payment for the easement. Ms. Margerum said this is still being worked out. Caswall pointed out this is an appeal and code interpretation and Council is to consider what is on the record, not take public comment. Caswall said this is the opinion of the planning director that is under scrutiny based upon the documentation in front of Council. Ms. Margerum reiterated the code was amended to make it clear that under an SPA, the city has the ability to vary the requirements on roads. Caswall said Council should put on the record which standard of review they have chosen to examine this matter under and whether or not an interpretation made by the planning director should be affirmed, reversed or otherwise modified. Councilman Peters moved to use the arbitrary and capricious standard; seconded by Councilman Reno. All in favor, motion carried. Councilwoman Richards moved to reject this appeal of the planning department's code interpretation; seconded by Councilman Reno. All in favor, motion carried. Councilwoman Richards moved to suspend the rules and extend the meeting to 9:30 p.m.; seconded by Councilwoman Pendleton. All in favor, motion carried. HUNTER CREEK ACCESS Fritz Benedict submitted a letter to the Forest Service and one to the County Commissioners. Benedict read "Enclosed are two letter I hope environmental and governmental groups will endorse. Last year the county decided that the road over Smuggler should be the only automobile access into Hunter Creek. This decision was in the spirit of the Forest Service's management policy the Hunter Creek valley remain as free of cars as possible. The Commissioners are well aware that Jim Auster had hired an appraiser who value Jim's property at well over $1,000,000 provided Auster was able to force a public road through McCloskey's land". Benedict said it very unlikely the Commissioners will pay that kind of money and if the road has to be up Smuggler, the appraisal will be much less. "Recently the Forest Service announced that the Smuggler road does not provide adequate access and they want a paved road through McCloskey's and a parking lot within the valley. Many of us feel that that would be the end of Hunter Creek as we know it. Whether or not it was paved, the road would mean that the valley could be reached in just 7 minutes". Benedict showed a map of the road going up Red Mountain and to McCloskey's house. Benedict told 14 Regular Meeting Aspen City Council July 8, 1991 Council the Forest Service's plan would be to continue the road to a parking lot in the valley with a road continuing to Van Horn park and the upper Hunter valley. Benedict said if there is a road and a parking lot in the valley, it will be so much more used. Art Daily said the Hunter Creek valley is one of the most wonderful areas and open space resources close to Aspen there is. Daily said the decisions about the use of the valley should be made in this community rather than by a judge in Denver. Daily requested Council take a position on the issues of Hunter Creek that will be before the Commissioners shortly. If there is a road and parking lot, there will be a dramatic increase in the number of people using the valley. Daily said the environment is too fragile for any more intense type of use. Daily said Friends of Hunter Creek have achieved the goals of good accesses to the valley. Daily said the community should now shift their focus to saving the valley from too much access. Daily requested Council give encouragement to the County to settle this matter without providing any addition- al vehicular access along the north side of Hunter Creek. Councilwoman Richards said she is concerned about getting a one- sided presentation on this issue and cannot consider taking action unless there is a proposal from the Forest Service. Councilwoman Richards moved the Council take no formal action on this proposal; seconded by Councilman Peters. Councilman Peters said he feels the county has done a good job trying to work this issue out. Hunter Creek valley has been despoiled more by development than it will be by people using it. Councilman Peters said he does not think the Forest Service is trying to build a highway to Van Horn park. Councilwoman Pendleton said she feels there is plenty of access to Hunter Creek right now. Councilman Reno agreed he does not want to see any more access. Mayor Bennett said he feels strongly about this issue and supports what Benedict is trying to do. Mayor Bennett said he would like to support the County without usurping any of their powers. Mayor Bennett said there should be parking where the traditional parking has always been. Mayor Bennett said he abhors the idea of a parking lot within Hunter Creek. Mayor Bennett said Hunter Creek is the most valuable open space the city has. Mayor Bennett said there should not be cars in Hunter Creek. Councilwoman Richards reiterated she is concerned Council is only hearing one side of this issue. Councilwoman Richards said she feels the city is being asked to interfere in a county issue. Mayor Bennett said he feels the city is helping present a united front to the Forest Service and to the courts in the same way the city is trying to present a united front on the EPA issue. 15 Regular Meeting ___ Aspen City Council July 8, 1991 Councilman Peters said if Council wants to speak as one voice, they should do some listening to the County first. Mayor Bennett agreed to consulting the Commissioners before the Council takes any action. All in favor, with the exception of Mayor Bennett. Motion carried. Councilwoman Pendleton moved to suspend the rules and extend the meeting to 10:00 p.m.; seconded by Councilman Reno. All in favor, motion carried. RUEDI RESERVOIR WATER RELEASE Councilwoman Pendleton, member of the Ruedi Water & Power Authority as well as the Aspen Yacht Club, told Council Ruedi is full at 101 acre feet. In the record of decision and round 2 marketing program of January 1990, the Bureau of Reclamation has said they will try and keep the marketing sales of the water and the recreation program going and try to take care of the squaw fish near Grand Junction. The BOR will let out 10,000 acre feet in the months between August and October. Part of this water should come from Green Mountain reservoir as long as their water level is not below 20,000 acre feet. When Ruedi reservoir drops below 91,000 acre feet, it impacts the recreational activities. For it to drop any lower than that and to 81,000 acre feet would just about shut the reservoir down. Councilwoman Pendleton said there is no informa- tion that the water released is helping the squaw fish spawn. Councilwoman Pendleton said it is too much of an impact on Ruedi to ask to contribute another 10,000 acre feet when part of the agreement was to take care of recreational facilities at Ruedi. Councilwoman Pendleton said there is a letter requiring the Bureau of Reclamation to not dump another 10,000 feet down the river. Wayne Ethridge, county commissioner and member of Ruedi Water and Power Authority, told Council in 1989 there was an EIS prepared at the request of fish and wildlife service to look at ways of augmenting flows in August, September and October to assist in spawning. The EIS said that 10,000 acre feet could be utilized; 5,000 from Ruedi and/or Green Mountain. In 1990 10,000 acre feet was released from Ruedi. This year the proposal is 20,000 acre feet from Ruedi. Ethridge told Council when he asked fish and wildlife why other sources were not used, the answer was there were political and technical problems with other sources. Ethridge said it is disturbing this has gone from 5,000 acre feet to 20,000 acre feet in 2 years. Ethridge told Council about half the normal pond of Ruedi is for sale. Ruedi WAPA has been attempting to purchase the water for a number of years. WAPA has been opposed by the Colorado River Conservation District. Ethridge said the community needs to 16 Regular Meeting Aspen City Council July 8, 1991 organize a political effort. Ruedi WAPA is willing to host this effort to make people aware this reservoir is in jeopardy. Ethridge said in addition to the 53,000 acre feet for sale, there is some concern the oil shale reserve on the western slope is looking at Ruedi as a source of water. With these two concerns and the endangered species releases, Ruedi would be dewatered. Ethridge said the recreation economy based on this reservoir has never been addressed by the BOR. Ethridge pointed out Ruedi serves a large area of the western slope. Gideon Kaufman said from Aspen to Grand Junction to Vail, Ruedi is the only recreational reservoir there is. Kaufman told Council the eastern slope has purchased the dam above Shoshone and will start taking water down. The only water available to fulfill that is Ruedi. Kaufman said if the water is purchased, there will be no water-based recreation in this entire valley. Ethridge said the city is also concerned about a predictable power supply. If the reservoir is drained in the summer, there is nothing available in the winter for power generation. There are incredible spikes. Councilwoman Pendleton said it seems like a waste of water just to let it go. Kaufman told Council the river district and BOR are siding against allowing either Pitkin County or WAPA to acquire the water. Kaufman said the county will have to lobby the congress on this issue. Councilwoman Richards asked what can be done to create pressure to also stop from over selling the Colorado river and then using Ruedi to save the squaw fish. Ethridge said this is part of the effort of Ruedi Water and Power Authority is willing to undertake. WAPA is at odds with the water district. The most immediate issue is trying to preserve the recreational aspect of Ruedi. The other issue of over-appropriation of the Colorado is separate. Councilwoman Pendleton said there is a deadline of July 15th for public input. Councilman Peters said this release does not have to be; it can be drawn down from Green Mountain reservoir whose change in levels are so drastic it does not have recreational uses. That reservoir is not being tapped for this. Ethridge said if Council is interested in having the Ruedi WAPA double their efforts to preserve this recreational resource, they can work through Councilwoman Pendle- ton. The other action is to have the Mayor sign the letter to the Bureau of Reclamation. Councilwoman Richards asked if WAPA has a budget or will this be volunteer. Ethridge said WAPA does have a budget for water issues and some small hydro projects. Councilman Peters moved to ratify the letter to Felix Cook changing "Aspen Yacht Club docks" to "boat docks" and to follow up in support of the Ruedi WAPA to safeguard and preserve recreational 17 Regular Meeting Aspen City Council July 8, 1991 interests at Ruedi Reservoir; seconded by Councilwoman Pendleton. All in favor, motion carried. Councilwoman Pendleton moved to suspend the rules and meet for 15 more minutes; seconded by Councilwoman Richards. All in favor, motion carried. RFTA CROSS TOWN SHUTTLE Dan Blankenship, RFTA General Manager, gave Council a memorandum highlighting the issues to be addressed in order to make a cross town shuttle successful. Blankenship told Council he checked with Snowmass about the availability of their vehicles. Snowmass uses these to handle conferences at Snowmass and could not let RFTA have them all the time. Blankenship said because of the passage of the Americans with Disabilities act, the law states any vehicles new, used or leased must be equipped with wheelchair lifts. Blankenship said the vehicles he has looked at would run about $1500/month. Blankenship said the summer is half over, and it may be better to target the winter season. Councilwoman Pendleton said what she wants to see is Council give RFTA the go ahead to come up costs and alternatives in order to make this a good test program and to have these numbers by the budget session. Mayor Bennett said he would like to see alternatives besides the Council paying far this or other service being reallocated. Council agreed. Councilwoman Richards said a cross town shuttle from the parking garage to the gondola is a publicly-subsidized skier shuttle, which is adding again to the skier shuttle in a public way. Councilwoman Richards said she would like to see some routing proposals. Councilwoman Richards said she is not in favor of the shuttle going down the Mill street mall. Mayor Bennett agreed; he would like to see a proposal for a shuttle north/south on Galena. Council scheduled a work session on the cross town shuttle August 19th at 5 p.m. Councilwoman Richards moved to adjourn at 10:15 p.m; seconded by Councilwoman Pendleton. All in favor, motion carried. Kathryn Koch, City Clerk 18