HomeMy WebLinkAboutminutes.council.19840514 kathryn ~. Koch, City Clerk
Regular Meeting Aspen City Council May 14, 1984
Mayor Stirling called the meeting to order at 5:05 p.m. with Councilmembers Knecht, Walls,
Collins and Blomquist present.
CITIZEN PARTICIPATION
1. Charles Hopton asked for a follow up on the sidewalk on Durant street; what is happen-
lng with this. Jay Hammond, engineering department, said it is up to Elam to replace or
repair anything on this project, and he will meet with Elam as soon as possible.
COUNCILMEMBER COMMENTS
1. Councilman Blomquist pointed out the new map wall and thanked the parks, engineering
and planning departments for putting this together. Design Workshop helped design the
concept and methodology. This map will enable Council to comprehend what is going on.
2. Mayor Stifling said by noon today, $28,000 worth of golf passes have been sold.
3. Mayor Stirling said there was an article in the Daily News about a city manager being
appointed; there has been no official announced of this yet. Mayor Stirling said Council
has offered the job to a potential candidate and are waiting to hear back.
4. Mayor Stirling said highway 82 east of Aspen is not open and he urged the engineering
depar~men~ to write the highway deparsmen~ and ask them to make efforts to get the pass
open.
5. Mayor Stirling said the Wheeler Opera House is having a formal opening May 22, 1984
at 6:00 p.m.
6. Mayor Stirling 5old Council he received a note from Kristin Cooper, the Olympic skier,
thanking the Council for the resolution and for "Kristin Cooper day".
7. Mayor Stifling said the real estate transfer tax is up 60 per cent over that collected
through April 1983. There is a lot of real estate activity in Aspen, which is good news
for the RETT fund.
8. Mayor Stirling said the Council needs to schedule a work session on the highway 82
corridor between Shale Bluffs and Maroon creek and the alternatives for that; the section
from Maroon creek to town; and the impact on the cOrridors and the new zoning proposals.
Council also needs a work session on capital improvements.
9. Mayor Stirling said there is a worksession planned for Monday, May 21 for the planning ~
work program and the discussion of the growth management quota system.
10. Mayor Stirling said he would like Centennial IV issues related to the tap fees and thei
bid approval for Rubey pump station added to the agenda.
Mayor Stirling moved to add Centennial phase IV and Rubey Pump station bids to the agenda
and continue the meeting to May 21 at 5:00 p.m.; seconded by Councilman Blomquist. All
in favor, motion carried.
11. Council has a work session Wednesday, May 16 at 5:00 p.m. on capital improvements and
highway 82.
12. Councilman Knecht said the Castle creek road is in bad shape from the water and sewer
line work and said he hopes it won't remain that way. Councilman Knecht asked if there wasl
a provision in this project to repair the road. Jay Hammond, engineering department, told
Council this is being taken care of by the county, which is from the housing project on
up.
CENTENNIAL PHASE IV
Mayor Stirling moved to table Centennial phase IV tap fees and contine the meeting to May
21 at 5:00 p.m.; seconded by Councilwoman Walls. All in favor, motion carried.
RUBEY PUMP STATION BIDS
Mayor Stirling moved to table this until the May 21, 1984, meeting; seconded by Council-
woman Walls. All in favor, motion carried.
ROARING FORK VIETNAM VETERANS RESOLUTION OF SUPPORT
City Attorney Taddune told Council he represents the Roaring Fork Vietnam Veterans group
as their attorney. Mayor Stirling said the Vietnam war was not a conventional war of
battles; there were no historic campaigns. For a whole generation of Americans, the Viet-
nam war was the central fact for more than 10 years. Mayor Stirling said a fundamental
sense of innocence was destroyed as a result of this war. Mayor Stirling said the Vietnam
was was morally ambiguous and many soldiers returned emotionally upset and damaged. There
was never any clear appreciation of the soldiers' efforts.
Chuck Cole said their qroup is trying to redress some of the wrongs that have been done.
The Commission would like to give tribute to Vietnam veterans who have not been appreciated!.
The problems of the Vietnam ~eterans have been gone over in the press for the last 15 years~!.
Cole said he would like the Council to adopt this resolution.
Councilman Knecht moved to adopt Resolution #17, Series of 1984; seconded by Councilman
Blomquist.
Mayor Stirling said he ran a school for returning Vietnam veterans preparing them for life,ii
jobs and school. Mayor Stirling said the Vietnam experience effected the entire country.
All in favor, motion carried. Councilman Collins said he would like the Commission to keepil
the Council informed on the work they are planning.
REQUEST FOR TWO GOLF PASSES
Ted Isaacson said during the Basalt fair there is a golf event at the Ranch at the Roaring
Fork. Isaacson said he would like two season passes from Aspen as prizes in this golf
event. The proceeds of this event are going to the Basalt community center. Jim Holland,
parks director, told Council the city has only given golf passes once, to the rugby club
raffle. Holland said the Council should watch the precedence of giving away golf passes;
a season pass is $310 and a 20-punch ticket is $120. COuncilman Blomquist suggested rathe~i
than two season passes, the city give one season pass and one 20-punch ticket.
Councilman Blomquist moved to grant to the Basalt fair a 20-p~nch pass and a season pass
for a total value of $430; seconded by Councilman Collins. All in favor, with the exceptioih
of Councilmembers Knecht and Walls. Motion carried.
CITY OF ASPEN RESORT TASK FORCE REPORT
Mayor Stirling said this Council appointed Margaret and Roby Albouy as co-chairpersons of
a task force called the city's role in Aspen - the resort. Their report has just been
distributed and is a tribute to the work of the Albouys and a wonderful expression of
citizens involvement. One of the ideas of the task force was the city's visitors center,
which will open in two weeks.
Roby Albouy said the task force is recommending a number of small tak forces; their group
could only touch on the tip of subjects. Albouy said task forces should be 3 or 4 people
chosen carefully, people who have knowledge and time available to donate to the task forceii.
Albouy also recommended the Council assign to task forces a staff member or person to keep
records and help drafting the reports. Albouy thanked the task force members who left wor~'
to dedicate time to this task force, and the city staff who answered many questions.
Albouy read a quotation to Council from the report, "People should not spend so much time
looking at each other but try to look together in the same direction". Albouy said this
pertains very much to Aspen. Albouy said the task force worked hard, presented their
report, and is now dissolved. Mayor Stirling said the task force did an excellent job.
Margaret Albouy said Council should look at the report of the task force and decide on the
next steps to be taken; they would like to insure that the work of the task force goes
forward. Council thanked the task force for their work.
FIVE YEAR GOLF TOURNAMENT PROMOTIONAL PROGRAM
Ted Armstrong, recreation director, told Council the committee on this included Sally
Fitzgerald, Jim Gibbons, Ed Podolak, and consultant Jim Mooney. Armstrong said the committee
has met and has talked to various groups in the community about this program. There have
been lots of positive comments on trying to get a major golf tournament in Aspen. Armstrong
told Council the promotional program will cost about $20,000 to work towards building a
national golf tournament in Aspen. Jim Mooney said bringing a major golf tournament to
Aspen will give the golf facility credibility and better the community. Mooney said the
golf course is a championship facility and is ready to be recognized nationally. Mooney
said this course does need to be promoted. One of the suggestions is a Scotland/Aspen
match, which would get international publicity. Another suggestion is a national junior
girls' tournament and would bring revenue to the town. There would be national publicity
and recognition around the country. Mooney said he feels the benefits from this promotional
program will come back to the community in lots of revenue. Mayor Stirling said during ~
the budget hearings, he had urged staff to consider a major event at the golf course to
broaden the summer season and focus attention on the golf course.
Mayor Stirling moved to pass and allocation from the general fund in 1984 for a maximum
of $20,000 for one year only with Jim Holland and Ted Armstrong bring back a report and
analysis of the results of this expenditure; seconded by Councilman Blomquist.
Councilman Knecht said he feel this is a good idea, but he is concerned about the expense;
it seems like a lot of money. This is an expenditure over and above the budget. Ed
Podolak said he would like to have a celebrity pro-am tournament in Aspen. This type of
event needs a coordinator; it is hard work, and it is important to have the availability
of someone like Jim Mooney. Podolak said he feels an event like this could be a revenue
producer for the town. Podolak said it is late this year to schedule an event like this
but would like to get to work on this.
Councilwoman Walls asked why this expenditure was not coming out of the golf fund. Acting
City Manager Ron Mitchell said the golf fund does not have the additional cash; it has
to be subsidized out of the general fund. Holland told Council he feels that two or three
of the outlined events are feasible for this summer. Mooney said he has done some ground ~
work for two of the tournaments. Councilman Kn~cht asked if the committee had considered
including the Snowmass golf course. Armstrong said the committee did not feel this was
an advantage. Mayor Stirling said he feels this idea is in keeping with the task force
report, and where the town should become more assertive spending money to build the summer
season up. Mayor Stirling said this should be done on a one year basis to see how it works
All in favor, with the exception of Councilmembers Collins and Walls. Motion carried.
Mayor Stirling said he would like reports on this and meetings on the progress.
PROSPECTOR TIME SHARE
City Attorney Taddune told Council he has made progress in negotiating the settlement with
Merit Investment, which is the timesharing lawsuit. Taddune told Council the essence of
the settlement is that the applicant will comply with all the amendments made to the time-
sharing ordinance, and upon approval of the Prospector timeshare application, will dismiss
with prejudice the lawsuit. Taddune said the only outstanding issue is what Council
intended regarding handicap access. Taddune told Council this is a deferral to the land
use process, rather than a settlement. Taddune said if Council agrees, they should
reconsider the Prospector application, refer this to the planning director for comments.
Mayor Stirling said his sense of the handicap access was not to block projects by making
the requirement too onerous. There is some confusion about access to amenities; this
particular project has an amenity on the rooftop, and requiring access to the rooftop
would be too onerous.
Taddune said his amended language reads, "satisfactory provision shall be made to provide
handicap access to 10 per cent of the units and to and throughout the project as required
by the uniform building code". Jim Wilson, building inspector, told Council that handicap
access is handled by state statutes and the uniform building code and the city ordinances.
Wilson the the C.R.S. would require access to two units in the Prospector lodge. Wilson
said as far as access to amenities, he has to look at what the typical service of a parti-
cular building has been. The C.R.S. only requires access to two units. Wilson said the
city amendment only requires handicap access only to the level closest to the grade and
exempts access to the floor above or below grade.
Gideon Kaufman, representing the applicants, told Council they are willing to do everything!
the UBC and the city of Aspen requires. Kaufman said they will provide handicap access to
one floor and two of the 19 units. Kaufman said most of the amenities in the Prospector
are in the individual units. Kaufman pointed out this project is already built, and the
C.R.S. talks about practical realities.
Mayor Stirling moved to clarify the amendment that the intention is 10 per cent of the
units be accessible, not 10 per cent of the amenities; seconded by Councilman Knecht. All
in favor, with the exception of Councilman Collins. Motion carried.
Councilman Blomquist moved to reconsider the application of the Prospector timeshare projec~
and table this until May 29 and request the planning office do a complete review and present
this to Council; seconded by Councilman Knecht.
Ail in favor, motion carried.
TRAILS PLAN
Councilman Blomquist moved to table this item to May 29th; seconded by Councilwoman Walls.
All in favor, motion carried.
VISITORS CENTER CONTRACT
Monroe Summers presented a contract to have the ARA operate the visitors center in the
Wheeler Opera House. Acting City Manager Ron Mitchell pointed out the one area Council
left open was the additional maintenance cost for the visitors center and for the bathrooms<.
The contract says the city is accepting responsibility for maintenance. Summers said the
contract does not specify the level of the maintenance service. Councilman Blomquist
suggested sending this back to staff requesting a list of all janitorial services the city
buys or provides and how this has been handled. Mitchell said all city facilities are
handled by contract. Councilman Blomquist said he would like to see bids for this.
Mitchell said there were bids for the Wheeler, and in order to clean the office space, the
visitors center and the bathrooms is an additional $1200. The $10,000 figure is the parks
department hiring someone to do the mall bathrooms and the bathrooms in the visitors
center. These are public bathrooms and have to bee cleaned continuously, rather than once
a day. Mayor Stirling requested this issue be brought back to Council at the continued
meeting May 21st.
Mayor Stirling moved to dea~iwith the budget consideration related to the bathrooms and
cleaning of the visitors center and office on ~nday, May 21st; seconded by Councilman
Collins. All in favor, with the exception of Councilmembers Knecht and Walls. Motion
carried.
Councilman Knecht asked what the expenditures are related to the visitors center. Tom
Hines, ARA, said Council gave the ARA $18,000 one time to complete the space and $21,666
operation budget for the rest of 1984. Hines said this is not instead of the contribution
to the ARA but is in addition to it for the operation of a visitors center. Councilman
Blomquist said this is the city's visitors center, and the city is hiring the ARA to run
Councilman Collins moved to approve the contract, subject to the City Attorney's approval
as to form; seconded by Councilman Blomquist.
Councilwoman Walls said this contract represents a decision the Council made to negate a
vote of the citizens to not require mandatory membership in the ARA. This is forcing
everyone through their taxes to be supporting members of the ARA. Councilwoman Walls said
the city ought to be doing things people cannot do for themselves, like clean water and
clean streets, parks and trails and beautifying the whole city. Councilwoman Walls said
this is something the business community ought to be doing for itself. Mayor Stirling
said for the first time in the city of Aspen, there will be a city visitors center; this
has been discussed for many years. The visitors center will be in a public, historic
building. The city has created a contract with the ARA to see if they can run the visitors
center, and the contract will be reviewed at the end of the year. Councilman Blomquist
said it is his expectation there will be no discrimination against non-ARA members in
giving any information. This is a city facility being used in the public interest; the
information must be objective, honest and fair for the benefit of the visitors. Hines
said this will not be exclusive to non-ARA members; however, the ARA will use the discretion
on the quality.
All in favor, with the exception of Councilwoman Walls. Motion carried.
WHEELER VISTORS CENTER SIGNAGE
Monroe Summers said this is providing informational signs to the visitors center coming in
from either direction. These signs will be put up early summer and taken down in the fall.!I
These are standard road department signs; there may be a logo of the Wheeler screened on
to these. The signs will be placed at the city limit on the east and starting at the Brush!
Creek intersection on the west. Summers told Council these will be as 'discrete as possible.
Summers said the city will provide three spaces on Hyman in front of the Wheeler for short
term parking and loading, and 5 to 7 spaces across the street for short term parking.
Summers said the total cost of this project is $841.00.
Councilman Collins moved to approve signs for the visitors center of $841 out of the genera!
fund; seconded by Councilman Blomquist. All in favor, motion carried.
UTILITY UNDERGROUNDING - WEST SIDE IMPROVEMENT ASSOCIATION
Jan Collins told Council the West Side Improvement Association is 12 years old, and 10 years
ago they requested undergrounding of the utilities in the west ~ide. At that time, the
decision was made to underground the commercial core. The WSIA felt at that time the city
was getting an overall undergrounding program initiated. The city undergrounded the
commercial core in 1977. This program has not moved on, and the WSIA felt it was time to
re-initiate the second phase of undergrounding. The WSIA feels the west side is appropriate
to be undergrounded; they are organized, they have looked at the cost and have talked to
the city engineering staff. The cost will be $1,575,000. Ms. Collins said the west side
is a very visible part of town, especially in the summer. Ms. Collins said the WSIA polled!
their membership, and 92 per cent of the people responding voted as first priority they
would like the utilities undergrounded.
George Vicenzi said there is a fair surplus in the electric fund, and the WSIA feels this
should stay within the electric fund, and undergrounding would be appropriate. The WSIA
would like to have the city look at this and have the project done while the funds are
available. Acting City Manager Ron Mitchell told Council this project was not included
in the capital improvement review. Mitchell suggested Council look at the entire capital
improvement program as approved by the Blue Ribbon panel as well as the new items that have
been requested. Council can establish a priority and determine where the funds should come
frome.
~=~u~ ~u~u~n~ aspen city Council May 14, 1984
Mayor Stirling said Council hawing a work session May 16th on capital improvements, and
can address this request at that time. Council has to look at the entire list. Council-
man Blomquist requested staff prepare a map showing the part of the city that is under-
grounded, and identify the Holy Cross boundary. Councilman Blomquist said the money in the!
electric fund is accrued from the city electricity. Councilman Blomquist asked that staff
resurrect a former study done on staging undergrounding of utilities. Councilman Blomquist
said he would also like to know about the street lighting program, and if the city is
going to underground, lights should be put in. Councilman Blomquist said he would also
like to know about the cable plans and where they will be tearing up the streets. Council-
man Collins said this is something that has been discussed for many years, and it is time
to get on with this and finish undergrounding.
Councilman Collins moved to ask the city staff and city engineer to furnish Council with
information on tke undergrounding program, would the program needs, what it would cost,
etc; seconded by Councilwoman Walls. All in favor, motion carried.
PARKS/GOLF SHOP VENTILATION
Jim Holland, parks director, told Council this issue came up due to a study done by the
environmental health department on monitoring carbon monoxide levels in city facilities
around town. Holland told Council his mechanic participated in the program and found
there is a problem with carbon monoxide in the parks shop. Holland is requesting funds
from the general fund to solve the problem. Holland said he had a ventilation engineer
check out the shop, and the problem can be solved for $3600 with heating and ventilating
for the area. Mayor Stirling asked if there are any other city buildings faced with the
same problem. Lee Cassin, environmental health department, told Council she monitored
the shop and ice garden also; the shop does not appear to have a problem, but the ice rink
does.
Councilman Collins moved to approve a budget request for ventilation for a total of $3600;
seconded by Councilman Blomquist.
Mayor Stirling said it is imperative with a dangerous situation like this that the city
move to solve it with haste.
All in favor, motion carried.
ORDINANCE ~8, SERIES OF 1984 Cable Television Permit
Councilman Collins moved to read Ordinance ~8, Series of 1984; seconded by Councilman
Blomquist. Ail in favor, motion carried.
ORDINANCE #8
(Series of 1984)
AN ORDINANCE APPRO ~NG THE ISSUANCE OF A FIFTEEN YEAR NON-EXCLUSIVE REVOCABLE
PERMIT TO CONSTRUCT, OWN OPERATE, AND MAINTAIN A CABLE TELEVISION SYSTEM WITHIN
THE CITY OF ASPEN, COLORADO, TO MICRO CABLE COMMUNICATIONS CORPORATION, A
WASHINGTON CORPORATION, d/b/a CANYON CABLE TV CORPORATION; APPROVING THE TERMS
AND CONDITIONS OF SAID PERMIT, AND AUTHORIZING AND DIRECTING THE MAYOR TO
EXECUTE THE SAME ON BEHALF OF THE CITY, AND REFERRING A QUESTION CONCERNING
APPROVAL OF SAID PERMIT TO THE ELECTORS was read by the city clerk
Councilman Blomquist moved to adopt Ordinance #8, Series of 1984, on first reading; seconded
by Councilman Knecht.
Acting City Manager Ron Mitchell told Council this ordinance is a result of the TV advisoryl
committee work. Council previously adopted a general ordinance establishing criteria and
guidelines for submitting an application. Canyon Cable has submitted an application. The
advisory committee worked with Canyon Cable and came up with the permit that is being
recommended. Mitchell gave Council the proposed programming in the upgraded system and
the rate schedule for the new cable system. Mayor Stirling asked when this election is
proposed for. Mitchell said staff is suggesting this be added to the election scheduled
for late July for the performing arts center. Mitchell told Council in order to get the
construction started, this item has to be voted on fairly soon.
Roll call vote; Councilmembers Walls, aye; Knecht, aye; Collins, aye; Blomquist~ aye; Mayor~
Stirling, aye. Motion carried.
Councilman Blomquist said he feels it is wasteful to have an election with just one item
on it. Mitchel told Council Canyon Cable has agreed to pay their half of the election.
Mitchell said the outstanding issue for the performing arts center is the study done on
the arts center in.~relationship to the parking center. Mitchell said staff has just
selected a firm to do this. Jay Hammond said the staff was not sure they could let this
contract without Council approval. Mayor Stirling said this permission was given previously
~ and staff should award the contract. Hammond told Council they have given the consulting
firm 30 days to.complete the work, it will be back to Council the middle of June.
RESOLUTION #15, SERIES OF 1984 - Sunny Park Annexation Request
i! Mayor stirling said this petition from the county is related to the access for Centennial
phase IV. Mayor Stirling asked if the city would do this for any developer, and if as a
~ result of annexation, is this land increased in value. The county plans on selling some
of thia land to recoup their costs. Glenn Horn, planning office, told Council the county
~ does not plan to increase density on this but only intends to recoup public monies spent
~ to purchase the lot. The county purchased this lot in order to get access to the Centennial
project.
Regular Meeting Aspen C~ty Council may ±4, x~
Councilman Blomquist asked the status of the previous annexation petition affecting the
Smuggler mountain area. City Attorney Taddune said he has given the petitioners' an
opportunity to supplement the signatures, and has not gotten a response.
Councilman Blomquist moved that Council request the count~ sign the annexation request
presented by the Smuggler mountain area; seconded by Councilman Collins.
Councilman Blomquist said the county lobbied against the first petition. This is an
important issue. Taddune pointed out that annexation election petitions have priority
over an annexation petition, which this is. Councilman Blomquist pointed out Council had
agreed that annexation is a high priority, implying an orderly program. Councilman
Blomquist said this represents the opposite of an orderly program. Taddune said he would
like to present Council more information and research before they vote on the motion on
the floor.
Councilman Blomquist amended his motion to submit the issue to Taddune for further clarifi~
cation and for a report May 29th; seconded by Councilman Collins.
Jay Hammond told Council the county has purchased a lot at the top of Park Circle in order
to continue the road to Centennial. The county is attempting to annex a small portion of
their property up the hill to make the lot a developable parcel. Hammond said there are
other issues; this lot is affected by the 8040 line, it is a very steep site, the access
would have to cross the Salvation ditch. Councilman Blomquist asked where the annexation
study is. Horn said the staff is completing the land use data base.
All in favor, motion carried.
McDONALD' S MALL IMPROVEMENTS
Monroe Summers showed Council the improvements previously done by Pitkin County Dry Goods
around their building. McDonald's is requesting the city's permission to extend the
landscaping to the alley with a planter, some trees, mall benches the same as the city
benches, all adjacent to McDonald's. McDonald's will improve this at their cost, donate
this to the city for general public use at the cost of $8,000. These improvements will be
based on traditional designs used in the malls. Summers told Council both the parks departi-
ment and the CCLC have gone over this, are satisfied, and approve of the plan.
Councilman Collins moved to approve the mall improvements indicated on the attached plan i
subject to a written agreement by McDonalds, approved as to form by the city attorney,
guaranteeing acceptance of the debt for the improvements and cooperation with the city
parks director in their timely construction completion; seconded by Councilman Knecht.
All in favor, motion carried.
Jay Hammond said McDonald's is requesting encroachment permission to place a precast con-
crete grease trap in the alley adjacent to the structure. Hammond said he has spoken with
the utilities involved in the alley, they do not have any objections. The engineering
department has no problem with this; it creates no above ground encroachments, there would
be two manholes. Councilman Knecht asked if there is any smell associated with this.
Hammond said not in operation.
Councilman Knecht moved to approve the encroachment license subject to the conditions
listed in the city engineer's memorandum of May 10, 1984; seconded by Councilman Knecht.
All in favor, motion carried.
MALL LEASES
Acting City Manager Ron Mitchell said the staff recommends the format of the mall leases
continue at a price of $1.50 per square foot per month, which is a six per cent escalation.
Mitchell said the lessees pay for the entire four month period at the time of signing the
lease. Mitchell said the finance department checked out the price for rental with Mason
and Morse and with Jim Mollica, and these prices are comparable.
Councilman Knecht moved to approve the mall leases for 1984 at $1.50 per square feet per
month; seconded by Councilman Blomquist. All in favor, motion carried.
ASPEN MOUNTAIN LODGE CONCEPTUAL PUD REVIEW
Sunny Vann, planning director, told Council this review is for the residential part of the
Aspen Mountain lodge PUD, and all the rest of the development for the PUD site. The
employee housing issue is still outstanding and is being reviewed by P & Z. Vann said there
are 12 units to be constructed on the 700 South Galena site, one unit added to the Summit
place. 700 South Galena competed successfully in the GMP competition for 12 units. The
33 units at Top of Mill and the one unit at Summit place are reconstruction units for units
that have been demolished on the site. Vann told Council this is conceptual PUD review;
the Top of Mill has a rezoning, a proposed land trade, which Council has to determine
whether is appropriate or not. :
Chris Gleister, architect for Top of Mill, told Council this site has 5% acres and has a
number of distinct physical characteristics which Gleister pointed out to Council. Gleisterl
said this site represents a transition between the city and the mountain, and rather than
having apartment-type units, these should be single family units arranged in a compact
arrangement. The applicant is proposing 33 units of about 3,000 square feet each for a
build out of less than 100,000 square feet and a footprint of about 17 per cent of the
available site. Gleister said. the architects are trying to provide a relationship between
the development and the grid pattern of the streets in Aspen, and also to minimize the
Visual impact outside the site. The most prominent units are the same height as the
surrounding development.
~egu~ar ~eeLlng Aspen ~lty councl± May 14, 1984
Gleister said another objective is to create an environment free of automobiles and there
should be a barrier so that cars cannot go up the mountain. They have designed the projec~
with underground parking, which is an expensive way to deal with cars but is justifiable
becuase of the value of the land. Gleister said they are providing two spaces per
residential unit. Gleister said the P & Z brought up many questions, which are detailed
in the report from the applicant. Another question was the height of the buildings, and
the applicant arrived at an agreement that the top of the roofs will be 36 to 38 feet.
Jack Robertson, architect for the applicants, said in their design they are very concernedl
with the size of the faces of the buildings one can see on the mountain. They will use
simple materials for the buildings. There is a peacefulness on the site they are trying
to retain. Councilman Blomquist asked about the resolution of the ski jump problem.
Council asked that the applicants work with the Ski Club and Ski Company on the jump and
repositioning the Ski Club building.
Mayor Stirling asked what part of this PUD portion has a public benefit. Vann said the
purpose of a PUD is to obtain development that would not occur under the interpretations
of the regulations. Vann said the Top of Mill site, excluding the C, conservation portion
and the rights-of way, there is an FAR of J5:l. The FAR, including all available land,
is .42:1, which is development below the 1:1 on the site. By allowing the application to
cluster development, there is a maximum usable open space and less visual impact. Raving
the parking underground reduced intrusion in this transition area. These are benefits to
the public. Councilman Blomquist asked if there is a possiblility of a scale model of the
entire PUD. Donald Bain, representing, the Andermans, told Council they have a strong
objection to 700 South Galena. Mayor Stirling said this will be addressed at a different time.
Councilman Knecht asked what variations were being asked for besides height. Doremus
said the variation from the underlying zoning are parking and height. Vann said the
Code requirement is one per bedroom, and the applicant is suggesting two parking spaces
per unit plus guest parking and a limosine service. Vann said the Council has already
approved a maximum FAR for the entire site as part of the lodge review. Council has
reserved the right to re-examine the FAR. Vann said there is no employee housing require-
ment since this is a reconstruction of an existing development. Councilman Blomquist said
he would like to make sure that the city gets the trail link through this property..and
to get the best connection through this property. Donald Bain introduced a letter from
his clients, the Andermans, into the record expressing a strong objection to the PUD.
Council will discuss this topic at the May 29th meeting.
CLARENDON PUD AMENDMENT - Parking Reduction/GMP Exemption
Richard Grice, planning office, told Council this property is zoned R-6, and the PUD was
approved allowing a zero lot line development. This property is zoned for 15.74 units
and currently has 15 units. Gretchen Greenwood, architect for the applicant, went to the
Board of Adjustment and received a variance to allow 16 units. This application is a
request to construct a one-bedroom employee unit, restricted to low and moderate income
guidelines. Ms. Greenwood showed Council the existing maintenance shed, to which they
will add 700 square feet for the employee unit. There will be relocation of the trash
area and sauna. There will be additional landscaping.
Councilman Blomquist pointed out the bicycle trail ends at the Clarendon and suggested
trying to get the trail to connect to the west. Councilman Blomquist said he would like
to ask the applicants for the trail easement through the Clarendon. Council agreed to
try to get the extension of the trail easement. Ms. Greenwood said she would have to talk
to the condominium owners before she agrees to the trail easement~but would be willing to
do so.
Councilman Blomquist moved to approve the Clarendon PUD amendment, parking reduction and
GMP exemption subject to conditions 1, 2 and 3 in the planning office memorandum of
May 14, 1984, and adding a fourth condition that the Ute trail easement be extended to
Glory Hole park on an alignment acceptable to both the Clarendon and the city and that
said alignment and easement be placed on the plat; seconded by Councilman Knecht. All
in favor, motion carried.
BENNIS LOT SPLIT
Councilman Knecht moved to table this item to May 29, 1984, at the request of the applicant
seconded by Councilman Collins. All in favor, motion carried.
ORDINANCE ~9, SERIES OF 1984 - Growth Management Quota System
Councilman Blomquist moved to read Ordinance ~9, Series of 1984; seconded by Councilman
Collins. All in favor, motion carried.
ORDINANCE #9
(Series of 1984)
AN ORDINANCE RECOMMENDING IMPLEMENTED TECHNICAL REVISIONS TO VARIOUS SECTIONS
OF ARTICLE XI OF SECTION 24 OF THE MUNICIPAL CODE OF THE CITY OF ASPEN, PERTAINING
TO THE GROWTH MANAGEMENT QUOTA SYSTEM was read by the city clerk
Councilman Blomquist moved to adopt Ordinance #9, Series of 1984, on first reading; seconded
by Councilman collins.
Alan Richman, planning office, said there are technical difficult issues in this ordinance
and Council should schedule a work session. Council scheduled a work session for May 21.
Roll call vote; Councilmembers Blomquist, aye; Collins, aye; Knecht, aye; Walls, aye; Mayor
Stir!ing, aye. Motion carried.
ORDINANCE ~3, SERIES OF 1984 - Dearie Hydropower Project
Councilman Knecht moved to table Ordinance #3, Series of 1984 until May 21, 1984; seconded
by Councilman Collins. All in favor, motion carried.
ORDINANCE #7, SERIES OF 1984 - City Water Treatment Plant SPA Amendment
Richard Grice, planning office, said in the process of developing the plan for the water
treatment plant, there were three storage sheds which are a physical barrier to construct
tion. This ordinance will allow redrawing of the plan and consolidation of the sheds into
one storage shed.
Mayor Stirling opened the public hearing. There were no comments. Mayor Stirling closed
the public hearing.
Councilman Knecht moved to adopt Ordinance #7, Series of 1984, on second reading; seconded
by Councilwoman Walls. Roll call vote; Councilmembers Blomquist, aye; Collins, aye; Walls,
aye; Knecht, aye; Mayor Stirling, aye. Motion carried.
ORDINANCE ~10, SERIES OF 1984 - 1983 Budget Corrections
Councilman Collins moved to read O~dinance ~10, Series of 1984; seconded by Councilman
Knecht. All in favor, motion carried.
ORDINANCE ~10
(Series of 1984)
AN ORDINANCE A~NDING APPROPRIATIONS ORDINANCE NO. 73, SERIES OF 1983, BY ADDING
AN APPROPRIATION FOR EMPLOYEE RETIREMENT FUND EXPENDITURES OF $25,000 WHICH APPRO
PRIATION WAS INADVERTENTLY DELETED FROM SAID ORDINANCE was read by the city clerk
Acting City Manager Ron Mitchell said that an employee withdrew money from the retirement
fund, which was not anticipated in the original budget.
Councilwoman Walls moved to adopt Ordinance ~10, Series of 1984, on first reading; seconded!i
by Councilman Collins. Roll call vote; Councilmembers Walls, aye; Knecht, aye; Blomquist,
aye; Collins, aye; Mayor Stirling, aye. Motion carried.
Councilman Knecht said since the last meeting, he has added up the figures the Council has
spent, which were not included in the budget. Councilman Knecht said he is concerned
about the $76,000 approved by Council outside the budget. Councilman Knecht said he does
not think Council realizes how much money they are spending, which is not in the budget.
Councilman Knecht said he would like a financial report.
CONSENT AGENDA
Councilman Knecht moved to approve the consent agenda, with the exception of the liquor
license renewal for Szechuan Gardens; seconded by Councilman Blomquist. All in favor,
motion carried. Consent agenda is Liquor License renewals - Molly Gibson, Pinocchio's;
Crystal Palace; Resolution ~16, 1984 - Penne Horn, Davis Unit; Subdivision Exception
extension of time - Durant Mall; Trolley Car Tease; Special Event Requests; IDCA;Wine
Classic; Rugby Club.
Tom Dunlop, environme~ntal health department, told Council he would like them to condition-
ally approve the Szechuan Gardens based upon compliance with the health department's
inspection. Dunlop told Council the applicant is aware of the requirements and what they
have to do.
Councilman Blomquist moved to conditionally approve Szechuan Gardens renewal as recommended
by the environmental health department; seconded by Councilman Knecht. All in favor, motion
carried.
Councilman Collins moved to continue the meeting to Monday, May 21, 1984 at 5:00 p.m.;
seconded by Councilwoman Walls. All in favor, motion carried. Council left Chambers at
9:20 p.m.
, City Clerk.~
riMayor Bill Stirling called the meeting, a continuation of the City Council meeting of
May 14, 1984, to order at 5:04 p.m. with concilmembers Dick Knecht, Chic Collins,
Charlotte Walls, and A1 Blomquist present.
Stirling outlined three items for discussion: Rubey Pump Station Bid, revisions of the
proposed water agreement between the city and Centennial IV, and the Deane hydropower
proposal. The new and fourth item is the cleaning agreement for the Wheeler Opera House
Two of the items, Centennial and the hydropower project, were to be continued with the
iiunderstanding that the Council would have imformation prior to the weekend with which the
ilCouncil would have the opportunity to read in depth. That information was not received
i:until 5:00 p.m. this evening. He is inclined to deal only with the Rubey Pump Station,
iwhich has a bid date of May 23rd. He suggested Council only act on the memo from Rea,
i!Cassens and Associates, Inc., consulting engineers, to Ron Mitchell, acting city manager,
iidated May 7th.
ilCENTENNIAL IV, DEANE HYDROPOWER AGREEMENTS
iiMitchell noted no one from Centennial IV is present. The representatives were planning
to be here. He suggested if they do arrive allow them to indicate to Council what the
~changes in the Centennial agreement are. The city attorney recommends that all contracts
ilbe approved by ordinance. At least, approve an ordinance on the first reading for the
~acceptance of the contract. Put the second reading on the following agenda. Use the same
procedure for the Deane hydropower project. Stirling said Council is on final consideration
for the hydropower project. This issue needs to be tabled also. General consensus
of Council is that they have not had the opportunity to read the material on Centennial
and Deane hydropower projects.
i!A1 Blomquist moved to table Centennial and Deane agreements to the May 29th Council
iimeeting; seconded by Chic Collins.
Discussion follows. Stirling asked if tabling the twu issues puts the city at a
disadvantage. John Musick, water counsel, replied no. Stirling asked if the timing
forecloses any poSSibilities for the city by waiting a week. Musick replied no. Stirling
does not want to set a precedent of getting into first readings without there being
sufficient information before Council. The purpose of a first and second reading is that
a second reading may not be necessary if there is sufficient information by voting
the ordinance down at first reading.
!Mitchell wished to highlight the areas of concern with Centennial agreement.
Collins asked, if possible, for a draft of how the UCC was established. In 1982 UCC
~iwas derived at $752,000. That figure has since been adjusted. He wants a copy of how
iithat original amount was prepared based on eqr's. Musick said the memo from Wayne
iChapman dated February 17, 1984, shows how the amounts were arrived at for the Centennial
ilcharge. The agreement itself spells out in the "whereas" clauses exactly how the
eqr charge was adjusted.
i!Musick highlighted the three areas of disagreement in the Centennial agreement drafted
:'~y the city and the Centennial's attorney. The disagreement was drafted by Musick's
office approximately three months ago. It contains the modifications derived at during
the discussions with Centennial. It contains the suggestions by the city staff and
iother consultants like Rea, Cassens and Associates.
The first disagreement is paragraph 2a, page six. It states that Centennial shall
deposit $143,460 upon approval of construction financing, Centennial requests that the
deposit be less. The city (Chapman, Mitchell, and Musick) originally recommended that the
deposit be 50% of the $573,840, the tap fee, for approximately $270,000. Centennial
asked this figure_ be reduced. The lowest recommended reduction is 143,000. That is the
smallest down payment able to be recommended. Centennial requests that be reduced to
;$75, 000-$100,000 purely for financial considerations. Any lower reductions will have
!!to be made at the direction of Council.
i!The second disagreement is at the bottom of page six, paragraph "B". The city's request
is that the balance of the money be paid by December 31, 1984, unless Centennial is
unable to complete all the buildings by the end of this year and have already paid
300,000 in 1984. Under those conditions then the date can be extended to July, 1985.
These two paragraphs ar cash flow concerns for the city. Centennial requests the date be
later in the summer, August or September.
The final point is on page seven, paragraph three. City asks that Centennial deposit
$100,000 in advance of construciton for the cost of construction of the Rubey Interconnect
and attendant facilities. The balance of the contract amounts is to be paid when the
contractor builds. Centennial does not want to deposit any money. Centennial wants
!ito pay the contractor's amount as submitted to the city for payment. Centennial wants
to bond the completion of the project.
lithe balance of the disagreements can be resolved amicably among the attorneys. There is
no disagreement in concept with the rest of the points. The Council may bring out points
which may be considered.
Mitchell added that in the letter on Rubey interconnect that Centennial recommends
ionly paying up to 90,000. Centennial wan~s the rebate uPfr0nt~,Centennial is entitled
ilonly to a rebate when the other eqr's are tapped on. There is a projection of
iianother 200 eqr's which theoretically could be built out there. Centennial would get
$450 per eqr as they materialize. If they all materialize then Centennial would get back
between 90,000 and 95,000.
Continued Meeting Aspen City Council May 21, ±9~4
Musick recommended that as eqr's are connected on in the future that Centennial receive a
rebate at the rate of $450 per eqr up to a total of 200 eqr's for that service connected
onto the system. That totals $95,000 in the future. No one knows when Centennial will
be connected on. Centennial is asking that the city absorb the cost of that rebate and
and the city collect that rebate from future customers as opposed to Centennial.
Centennial does not want to be holding the 95,000 for a year or fifteen years. Centennial
wants the city to hold it.
Mitchell noted a letter in the packet from Arnold and Porter.
Bob Francis, counsel for Rick Dean, made a few comments on the agreement for the
hydropower plant. First, he was under the impression if Dean relinquished control, which
is what the agreement accomplishes, that a 50-50 basis would be used as the foundation
for the computation of the consideration. This deal uses the 40-60 basis which was
discussed some time ago.
There is also a provision that if the city decides not to build the hydroplant that his
client receives nothing. That is a concern. As part of the deal the city gets certain
things, and therefore, this makes it a contract, and thereby, there is no conSideration
on the city side toward Deane. The advantage to the city in this agreement is the
option not to build the hydropla~t. If the city does build then his client receives
no consideration or money. The city receives certain things and the city reserves the
right to give his client nothing in return.
The third concern is the compensation schedule which was attached to the agreement.
He does not know how to interpret it. It appears there may not be an index. It was
discussed earlier with the Council that ther would be an index of some kind. After
the last Council meeting, he drafted a proposed compensation paragraph. He sent
that draft to Musick around April 27th. He included an index based on two factors: the
price of electricity and the production of the project, He proposed water be used.
Today it is suggested by Rick that kilowatts be used. Kilowatts are easily measurable.
At this time, he does not know what the production of this plant is going to do. The
schedule attached to the agreement accepts a figure from an engineer. When the project
goes into operation, the figure may be 30% or 50% off. In ten years there may be a
dam at the upper end of Maroon Creek which would allow production year-round.
The goal is to get Deane to relinquish control but still basically enjoy the benefits as
though he were a partner.
The Council votes on tabling the Centennial IV and Deane hydropower plant issues to the
regular agenda for the May 29, 19842 Council meeting. All in favor; motion carried.
RUBEY WATER PUMP STATION
Stirling asked if Council is prepared to address the bids on the Rubey Water Pump Station.
Mitchell recommended that Council award the contract to the low bidders, Hunter Construc-
tion, in the amount of $92, 795.12.
Chic Collins moved to authorize the contract with Hunter Construction for the "Rubey
Water PumP Station and Pipe Lining" in the amount of $92,795.12; seconded by Dick Knecht.
Discussion. Stirling said there is an ostensible lawsuit on the old Applejack on Main
Street against Hunter Construction, He has heard that Hunter Construction is somewhat
over-extended because they have had so much work. They are the largest local contractor.
They have continued to have a substantial volume of work. He is concerned that the city
will not get priority response in this contract.
Knecht noted there is a requirement for a performance bond, he wants to see this bond.
Rich Cassens, engineer, replied that the city attorney will have to comment on the over-
extension. There is a bidding completion date of 85 days. There is a $100 a day penalty
for each calendar day beyond the date of completion, penalty clause. The performance
bond is being used by all city projects as drafted by the city attorney's office. This
is the Aspen standard performance payment for maintenance work.
Mitchell noted that Hunter Construction has had experience with pump stations. Cassens
clarified that the personnel assigned to the project have had experience. That personnel
was not listed as having worked for Hunter Connstruction at the time the other pump
stations were buil~. But the individuals are experienced in the construction of pump
stations. Stirling asked if Hunter Construction has ever installed a pump station.
Cassens answered there is nothing on the Hunter Construction resume which indicates
they have. As a consulting engineer it is more important that the people on the project
have experience building a pump station; the people assigned to the job have built water
pump stations.
Knecht asked if the cost item for $144,000 falls within the range of the water management
plan. Cassens replied the total budget is 144,000. The contract with Hunter is in the
range of $92,000. There are certain city furnished items, electrical control panel and
the pump. Stirling said money is not being saved by favoring the low bid, the budget is
being met. Cassens said there is a contingency. Knecht said 5%. Cassens said there is
$2,025 difference between the two low bidders.
Knecht said Hunter has done a lot of work for him. Hunter has done the work always on
time. The work is excellent. And Hunter pays his bills. Hunter is a credible contractori
Stirling said as long as the performance bond is used it is safe.
Collins asked if there is a retainer fee for contracts. Cassens said there is a 10%
retainage up to 50% completion, no retainage after that in accordance with the state
statutes.
Jim Markalunas, water department, explained the location of the pump station. The pump
station is located approximately half way in the Rubey Pump subdivision, three or
four hundred feet inside the subdivision. He locates the pump station on a map. The
entrance to the Rubey subdivision is below Willoughby Way.
Council votes on the motion to accept the Hunter Construction contract of 92,795.12
for the Rubey Pump Station. All in favor; motion carried.
WHEELER OPERA HOUSE CLEANING AGREEMENT
Mitchell noted the memo 5he Wheeler cleaning agreement indicates that Monroe Summers has
me5 with the Wheeler staff and Jim Holland. The original bid from New Systems Cleaning
with the additional cleaning was $ ~400. That has been reduced to $12,000. The office
space in the basement area will be cleaned only as needed, that helps the reduction.
There is a recommendation to clean the bathrooms on an experimental bas~s: one of
Jim Holland's people will clean the bathrooms periodically through the day for a total
of one hour of cleaning per day. That amounts to $2,000 of Holland's budget. There
is no need to budget for major replacement due to vandalism. The ARA is amenable to
inspecting the bathrooms through the day. This may discourage the level of vandalism
experienced in the mall bathroom. The revised budget which handles the additional
cleaning ~s $14,000 instead o~ $24,000.
Stirling said the total gross for the Wheeler Opera House is $22,475. Mitchell said no.
The only addition is $12,000 to the Wheeler budge~. Holland will try to work the $2,000
in his budget. If the solution to use Holland's people for an hour a day does not work
out, Council may have to review this again in the future. The entire Wheeler cleaning bill
is $2,000 per month or $24,000 annually for the major portion of the Wheeler plus $12,000;
the annual ~otal is $36,000. The $2,000 per month is for cleaning the Wheeler except
the visitor center and the cffice space. That was competitively bid. This group was
substantially below. New Systems cleans city hall and the ice garden. Stirling asked
if the 36,000 is for the balance of 1984 or a full year's contract. Mitchell said the
$24,000 is for the full year, the $12,000 is for the full year also. The $1,000 per
month is an additional expense; it is not in the budge~. The $2,000 is the only amount in
the budget.
A1 Blomquist moves to approve the addition of $12,000 ~o the Wheeler Opera House cleaning
budget for routine cleaning of the Wheeler Visitor Center, public restrooms, basement and
office area. He deleted the word "nighttime." Seconded by Chic Collins.
Discussion. Collins asked exactly what space is being cleaned. Mitchell explained
the original contract only covered the theatre area, the lobby, and would-be office
space ~n back of the counter. The configuration of ~he office space and the visitor
center changed. The office space moves down to the basement because of the inclusion
of the visitor center. There is an addition of two bathrooms on the first floor.
New Systems said the expense for cleaning the additional two bathrooms, the visitor
center, and the basement office was an additional $1,200 per month. The amoun~ was
reduced to $1,000 per month by cleaning the basement office on an as need basis. The
two restaurants take care of their own cleaning. Collins asked how many square feet
are there in the basement. Someone said 1,200 square feet.
Summers said if the square footage of the new area ~s compared to overall square footage,
the area under contract, the price per square foot comes out the same. New Systems
was way below the second lowest bidder for the cleaning contract. The cleaning charge
is reasonable for the additional square footage.
Collins said New Systems ls doing the theatre and the second floor for S2,000 per month.
There is now the addition of the visitor's bureau, two bathrooms, and the basement office
for another $1,000. That is 50% of the amount for cleaning the whole second floor.
Summers said the price per square foot is the same for both parts of the cleaning proposal.
Collins said ~here ~s a discrepancy. The theatre area is 5,000 square feet, the second
floor area ls 5,000 square feet for a ~otal of 10,000 square feet. The visitor's bureau,
two bathrooms, and office is 2,000 square feet. The ratio of the former to the latter
in terms of square footage is 5:1.
Blomquist asked if MAA will be doing much of the cleaning during the summertime. Stifling
explained that agreement has city doing the cleaning and MAA pays a fee.
Blomquist amends his motion to read that the figure be pro rated for a $1,000 for the
rest of the year for a total of $7,000 for 1984.
Knecht noted there is a problem with cleaning the visitor center and the public toilets.
The use varies. Sometimes there will be high use and other tim~s~l~w~ us~ H~adoes not
like the phrase "as on an as needed basis." Mitchell clarified' that phrase applies only
to the office space. Knecht said it is the city's responsibility for maintaining a
visitor center and public restrooms. There lsa loss of control by the city by giving
that responsibility to a private group, a group outside of the parks department. Mitchell
explained the parks department still maintains responsibility. A parks employee will be
cleaning that bathroom at different times during an e~ght hour period for a to~al combined
time of one hour per day. Two and a half hours were originally recommended. But there
is the hope that an ARA personnel will assist ~n monitoring the bathroom. Knecht asked
if a private cleaning company ~s being hired at the same time parks will be responsikle
for the cleaning. Mitchell explained the parks will only clean during the day. The
cleaning company will only clean between the hours of midnight and six, the two bathrooms
will be included in this nightly cleaning with the theatre. Knecht preferred to give
the entire responsibility of cleanlng the public centers to the parks department.
Continued Meeting Aspen City Council ~ay z±, ±~
Summers agreed it is confusing. There is a basic cleaning contract for the entire building
which takes place between midnight and 6:00 a.m. That is a routine once a day cleaning.
That cleaning company does not work during the day time. Supplemental cleaning is done
by the parks department on an intermittent basis. ,He wants to expand the Wheeler contract
by $12,000 with New Systems who would provide a daily routine cleaning to everything.
The visitor's center and the two restrooms are high use areas. They need some intermittent
daytime attention. It cannot be determined exactly how much. The public restrooms in
the mall recieve a tremendous amount of abuse and it is expenslve~ keep them maintained.
He does not know how much it is going to cost in terms of time or money to keep the
vandalism down. The original suggestion was two and half hours per day. That translates
to six trips by a parks employee to refresh the bathrooms. The suggestion is ~o try
cleaning for a maximum of one hour a day on a trial basis. Vandalism may be reduced.
Vandalism cost was originally budgeted for $5,000, this might be eliminated. This figure
was based on the vandalism experienced on the mall. Set the system up for a routine
cleaning a~ night, and for one hour cleaning during the day. Anything from 0 to $5,000
is a contigency for vandalism. The one hour translates to two vists by a parks department
employee per day, seven days per week, plus some emergency treatment. A supplementary
allocation may be asked for later in the year for vandalism.
Summers will try to pro rate the figures. Contractually everything is done on a fiscal
basis. He does not know the exact dates for the New System contract, and he does not know
if it can be pro rated based on the remaining months for 1984. He will set up a contract
to reflect what Council agrees to on a monthly pro rata basis. He outlines the costs:
S12,000 The annual charge for nightime routine cleaning
S2,190 For the one hour periodic daily attention given to
the Opera House for seven days a week.
$5,000 This figure can be deleted for the vandalism and
repair factor.
$14,190 The annual total
Collins said the charge for cleaning the lobby space, bathrooms, and basement office is
very high. Stirling agreed. $1,000 for 2,000 square feet, and a portion is not cleaned
even on a regular basis, does seem high. Blomquist asked if vandalism is budgeted in any
other budget. Mitchell said vandalism is budgeted in the parks budget. He recommends
deleting the vandalism cost in the Wheeler budge~. The $5,000 of this cleaning budget
is shown as material replacement.
Blomquist and Collins withdraw the motion on the floor.
Stirling moves to table discussion of the Wheeler Opera House Cleaning Contract to the
next scheduled Council meeting on Tuesday, May 29, 1984; seconded by A1 Blomquist.
Stirling requests the possible excessiveness be explored and that Jim Holland be present
at the next Council meeting. Ail in favor; motion carried.
CENTENNIAL IV
Stirling explained to Sam Brown, developer for Centennial Phase IV, and to Harris Sherman,
counsel for Centennial Phase IV, why Centennial Phase IV agreement was tabled. It was
agreed at the last meeting to continue this issue on the assumption that the Council
would have the material in advance of this present meeting. This information should
have been delivered to the councilmembers before the weekend so they could have time to
digest the material, look at the history, and the comparisons. The material was presented
to Council at 5:00 p.m. today.
Sherman replied that the information was delivered to Council Friday of last week in
accordance with the understanding. The information was at the city in advance.
Unfortunately, he was not advised that there was a problem getting the material to the
councilmembers.
Stifling said Council has made bad decisions by rushing into an issue. He is not willing
to read material at the last minute and then make a decision. It pu~s the city at a
disadvantage despite the fact that Centennial Phase IV ~s under a time constraint.
Sherman responded that there are three substantive issues. The remaining issues Musick
and he have come to an agreement on; these are drafting issues. He can go over the three
issues very briefly tonight with Council. He is not sure reading the documents will
shed any extra light on those three questions. Stirling noted Musick earlier summarized
the ~ssues. There is reluctance to deal with those issues now. Sherman made an appeal
on this decision. Council may want to deal with this next week, but since Brown and
he are up here, and to save an extra trip for one of them next week, it would be helpful
to explain the problems of the issues from Centennial's perspective. Council can take
that into consideration with regard to its decision next week. Brown requested some
time now to outline his position on the issues which Musick raised.
The Council agreed with Sunny Vann, planning office, to reschedule the work session on
the "Planning Office Work Program" to Wednesday, June 6, 1984, at 5:00 p.m. in the
Council chambers.
Blomquist said the county applied for an annexation for a small lot at Park Circle at
the last regular Council meeting. Council turned that down. He asked if Brown will
sign the petition by the neighbors for annexation tomorrow so That Council can consider
this issue in time for the next meeting. Brown responded no. He will not sign the
annexation petition tomorrow. He ~s certain he wants to be annexed to the city, but he will
not do it tomorrow. It is Brown's understanding that the has to agree to annexation
at the time the city desires it as part of the ongoing water agreement. Stirling
said there ~s not an annexation petition before Council, it has died. Blomquist asked
how to resurrect the petition. Stirling said Paul Taddune, city attorney, returned the
Continued Meetinq Aspen City Council May, 21, 1984
petition to the attorney for the petitioners. Taddune informed the attorney there was
a number of changes which had to be made. If the changes are made then the petition can
be resubmitted. Blomquist argued that the reason there has been so much difficulty with
the petition is because the developer of Centennial Phase IV has not been party to it.
Brown said he has never been approached. Blomquist said it is the policy of this Council
to encourage the annexation of the entire fringe area, Brown is in the position to help
the process. Brown said it may wll be in the interest of the community to have the
property annexed, but the property was transferred to his company less that a week ago.
TWo weeks ago he could not have signed the petition. It was county property at that time.
He will consider signing the petitiOn.
Brown said there are two issues to be raised. His intent is to work these issues out as
quickly as possible. There is a common interest to make possible the continuation of a
project which has been widely responded to in the communitY. He hopes all can figure out
'a way to do that cooperatively.
The first issue is the tap~ fee. There is no dispute with the staff about the size of the
tap fee that is requested. The dispute is in fact one that can be managed, it is imposed
largely as a result of lenders. No one wants to make large payments out of construction
loans for tap fees for services not yet received. His proposal is that he makes a
substantial down payement on the tap fee and pays the balance on a basis prior
to the issuance of the certificate of occupancy. CounCil at that point has the trump
card. The building cannot be occupied without water in it. He gets a building built.
There is not going to be a failure to pay the tap fee in order to get the building occupied.
The question is when the tap fee is paid and how much is the down payment.
The staff's proposal is a down payment of $143,000; $300,000 in 1984; and the balance
due July 1, 1985. He does not have a problem with the payment of $300,000 in 1984.
The $143, 000 he proposes to make a $100,000. This is condition imposed by lenders who
think 10% is more than an adequate amount before the water is turned on. Brown thinks
he can convince the lenders to agree to $100,000 but not to $143,000. It is a relatively
small issue. He also wants to delay the July 1st date to September 1, 1985. This is not
a dispute of overwhelming substance but it is important to figure out.
Blomquist asked when do most people pay. He thought one pays when the building permit
is issued. Have there been any exceptions to that rule? Markalunas said he cannot recall
any exceptions. The normal procedure is to pay at the time prior to the actual tap to
the main, or at the time of issuance of the building permit. But this is a contract,
that is not normal. Sherman said this request by a projeCt of this size , 240 to 300
units, is very common. He agrees the procedure is appropriate for one house or
five units. But this project involves 240 units and involves borrowing substantial
amounts of money. The conditions of the lenders are not unusual. Brown said there
may not be a recent example of this, but he does not think there has ever been a $600,000
dollar tap fee either. This is not $2,000 to hook up the house. This is not free market
housing which would allow a margin for the fee. The project is severly priced controlled.
Special consideration is being asked for a special project to look at a realistic estimate,
He suggests a $100,000 as a down payment, a substantial feelin Aspen. The balance of
the payment, $475,000, will be assured. Brown asked if anyone has paid a $100,000 tap
fee.
Stirling and Knecht do not have a problem between a $100,000 and $143,000. Mitchell said
staff did not want to negotiate everything away. $40,000 is not substantial. ~$140,000
is close to the estimated cash deficit in the water fund at the end of the year. If
Centennial pays the $300,000 at the end of 1984 the cash deficit will be satisfied.
Musick explained that several factors entered into that figure. Staff was not arbitrary.
There is a cash deficit in the water fund. This is a matter CounCil has considered with
regard to other rate increases and is concerned about. There is the problem of the cost
of the construction of the Rubey Interconnect which could run as high as $175,000. There
is an eXisting cash deficit, could run as high as $175,000. There is an existing cash
deficit, plus a $175,000 of new unbudgeted construction, plus a reduction in the tap fee
from the previously tap level of $270,000. There is a limit the staff will go with other
people's money. That limit is reached. Guidance is needed.
Brown said the second issue is how does the city get paid for the Rubey Interconnect. The
Rubey Interconnect is a 12 inch line which goes from the Red Mountain Reservoir and
connects with the property on the top of Spruce Street, near Jim Morran's house. The
line then hooks up with the water sewer system in the entire north end of the community.
It provides an additional interconnect between the Red Mountain Reservoir and the system
which serves Silverking, Williams addition, Park Circle, basically the entire north end
of town.
The city water engineers have said the interconnect is necessary solely for the Centennial
project. Centennial's engineers have said it is not necessary. Centennial lost the
fight. Whatever the engineering reality is, it is clear that the Rubey Interconnect
is going to be built. The county commissioners do not believe the interconnect needs
to be built. Centennial will bear a substantial part of the expense.
Centennial's contention has been that the Rubey Interconnect serves not only this property
but a large part of existing property in the neighborhood. It is clear no one wants to
increase the tap fee for that line to the currently existing residents who are not thrilled
by the construciton of this project. However, these residents are substantially benefiting
from this interconnect. If the interconnect serves Centennial and additional future
growth, how should that cost be borne between this project and any ~dditional future growth,
That line will serve approximately 416 eqr's. The suggestion therefore is that Centennial
pay a proportionate share of the total service which will be provided to new potential
taps in the area as a result of the Rubey 12 inch line.
The question is how much does this cost and how does th~3 get paid. The high cost estimate
is $175,000. The former city manager told Centennial that $135,000 was a realistic estimate
of the real cost. There was discussion: if Centennial's cost was below the $175,000 then
Centennial would have the savings. If the line cost $175,000 Centennial proportionate
share to all taps which could tie in is 90,860.
Continued Meetinq Aspen City Council May 21, 1984
The next question is if the interconnect is goang to cost $175,000 how much should
Centennial pay and how should any future refunds work. Centennial's contention ~s that
it is reasonable for Centennial to pay its proportion for all the taps in the area. City
is in the position to get any refunds or additional costs from future taps. His concern
is if Centennial agrees to pay the $175,000 there is no incentive for the city to save
except for the goodwill of the staff.
Consequently, what is a fair solution is that Centennial pay the $90,000. If it costs
$135,000 the city can charge $90,000 to future developers and make money. This gives
the city incentive to save. Centennial bears its proportionate share. If in fact,
Centennial pays it all and receives a refund, carries the cost of the money, it has no
way of collectin or insuring the cost in the future. He suggests Centennial pay the
$90,000 and any future tap ins or tie ins the city put that money into its pocket. The
city may be able to build the interconnect for $135,000 and my be able to collect $90,000
in future fees; that is an incentive.
The second aspect of this issue is when is the $90,000 to be paid. He proposes that
Centennial give the city security about when Centennial pays the fee: a letter from
the lender, an escrow account, a promissory note , a letter of credit, some security
agreed upon as acceptable to the city. The staff proposes that Centennial pay it on
the front end. The fair solution is to pay the fee when the city completes the inter-
connect. In order to secure the city that fee gets paid an a timely fashion, Centennial
will provide some security. He noted that a letter of credit for a $100,000 costs him
$1,000. If he puts up a $100,000 non interest bearing it will cost $6,000 or $8,000. The
city is secured either with a letter of credit or promissory note.
Musick said the has to enforce a letter of credit, a bond, some type of security other
than cash. The city is in litigation now on bonds that were not fulfilled. Council has
to take this into consideration. That is why he recommended cash. Brown asked if a clean
draft letter of credit payable serves the same purpose as cash. Musick said it needs to
be enforced against ~the entity issuing the order of credit. If the issuing entity
cannot exercise against Centennial they will refuse to pay. Sheree Sonfield, finance
department, interjected in the meantime the city has contracted with the contractor and
the city has to pay the contractor, that is the issue.
Musick said the second point is the responsibility of the city. The engineers emphasize
taking not the lowest cost, but the lowest and best. Markalunas has told stories of
invasion pipes being constructed throughout the areas out around the city, and the city
is having to assume the responsibility for that; those areas are causang the single
greatest problem. That is the reason for the justification. The city cannot guarantee
an upset figure on the $175,000 cost to construct Rubey. The cost has to be lowest and
best. The city owes it to the citizens.
Cassens clarified the interconnect starts at the ridge of Red Mountain with a two million
gallon reservoir. The Rubey Interconnect starts approximately 300 feet east of the Rubey
Pump Station. The difference between $135,00 and $175,000 is found in paragraph 3a
of the contract. The Rubey Interconnect is to be constructed along with the parallel 8
inch water main in Park Circle. The second pipeline is not included in the $135,000.
Sherman commented on the letter of credit. Centennial can demonstrate a letter of credit
in sufficient form and procedure which would satisfy the city's concern of making the
payment on time. The question is basically one of equity and fairness. Centennial is
perfectly willing to pay its fair share. There has to be a system where Centennial pays
its fair share and where there is incentive for the city to save money. The city can
save money and administer eqr's at a later time to make some money also. The proposal
for Centennial to pick up the entire package is hard and unfair, and will complicate
Centennial's ability to move forward.
Sonfield suggested Centennial give the $175,000 to the city. The city would in turn hold
and invest that money, and give Centennial the interest earnings. Centennial woul~ not
have to pay the $1,000 for the letter of credit and would no~ lose the interest earnings
on its money. Brown said some interest earnings would be lost. One cannot borrow money
at the same rate one invests money° He noted it costs 14% to borrow, the return is only
10% on money invested. If the City could be provided adequate security, which Centennial
will work out to the satisfaction of Musick, then Centennial does not need to be burdened
w~%h~ ~ another $5,000. His lender, for instance could give the city a letter which states
the lender will pay upon billing for that out of the constructicn loan and that letter
could be provided from the bank. That is a level of security which does not involve him.
Stirling summarized the three issues: the amount down, the extension in 1985 from July 1st
to September 1st, and the amount of the interconnect.
Musick said it is customary practice that a developer install the lines to service his
area. There is a dispute over the necessisty of the lines. The city engineers take a
position categorically that the lines are necessary to serve Brown and no others. It
is the customer's policy of the city that the rebate go to the developer as connections
are added on in the future.
Sherman commented on a third issue. The $572,000 fee has been based on the amount of
water that Centennial is to consume. Included in Musick's draft was a surcharge an the
event Centennial exceeded the 200 gallons per person. If Centennial uses below
200 gallons per person then Centennial is entitled to a rebate calculated on the same
formula as the surcharge is calculated. That formula is set forth in Musick's draft of
the agreement, exhibit "b". Musick said this is referred to in paragraph ten, page
thirteen. Exhibit "b" is in draft form. Musick did not have the final numbers from
Sherman's office. Musick is without direction from the Council. 'There was no prior
direction by Chapman or Mitchell. This is a recommend~ation Musick makes to the Council.
This recommendation could cost the city tap fee money. But the advantage is considerable
3723
Continued Meeting Aspen City Council May 21, 1984
to the city: conservation. It demonstrates to new developments, like the the hotel, if
the developer takes the extra step which could save on capital construction in the future
as demonstrated by this program, it will save the city money in the long run. There are
certain staff members and city consultants who are not in agreement with this, particularly
Markalunas.
Blomquist asked the Council to consider why this type of concession should not be made
uniform to all developers, from the smallest project to the largest. Centennial is arguing
because of scale, it should be entitled to these different methods and concessions. The
"little guy" has just as much trouble coming up with the money at the time he gets the
building permit. There is a precedent being established here possibly for the destruction
of Aspen.
Knecht does not have a problem with the $100,000 down payment nor with the balance being
paid at time of building occupancy. The Council unanimously does not want additional
growth in the Centennial area. This project is adding substantial growth in that area.
The new water line, the Rubey Interconnect,adds 416 eqr'~, the project needs 216; 200 eqr's
are left over. He does not know what to do with the extra 200 eqr's since the Council
does not want the growth. Council would probably turn down any future big projects
in that area. Without Centennial paying for the interconnect upfront, the city has to come
up with the money. The city then pays the interest. If it was not for the project the
the Rubey Interconnect would not be required. The amount of money for the interconnect
should come from the developer.
Stirling agreed with Knecht's position on the third issue, bu~ he was not ready to state
a position on the first two issues tonight. Collins noted concessions have been made.
He wants to review the code to see if there is some discretion allowed for low cost
housing projects. What concessions have been made to reach the $540,000 figure? What
additional concessions are being made? If some consideration is given to the request by
Centennial and some consideration to the present water code, the costs will have to be
made up somewhere else. There are people already on the line with water saving devices.
Teh concessions need to be handled equitabley. Shereman said the $572,000 figure is
derived from a 20% reduction. There ought to be a conservation effort.
Brown said the inexpensive way to irrigate the land is to use the wasteful sprinkler heads
which are used in parks. The expensive way is to put in small, very discrete sprinkler
heads, and use very low water use landscaping to the extent the county planning and
zoning will allow him to use the low water use landscaping. But the expensive installation
is the right way if the goal is to cut down water use. That is in the interest of all.
There needs to be some incentive provided. Give economic incentives for conservation
measures to a developer who is willing to take responsiblility for the level of future water
use in the project. That is also good for capital expenditure requirements of the
community. It helps to preserve the values of Aspen.
Musick said no concession has been made to Brown for this development that would not be
made to any other developer whether little or big. An ordinance was drafted in 1977
and 1978 by a previous Council which implements water conservation, Brown is being
used as a test case. The only concession being made which is different from previous
developers is how Brown pays what is actually arrived at. Every one else has been asked
to pay upfront.
The continued hearing adjourned at 6:30 p.m.
Barbara Norris, Deputy City Clerk