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HomeMy WebLinkAboutminutes.council.19830926~,=~u~ ~.~g Aspen City Council September 26, 1983 JOINT MEETING WITH COUNTY COMMISSIONERS Mayor Stirling called the joint meeting to order at 5:10 with Commissioners Child, Kinsley, Blake, Klanderud and Madsen and Councilme~bers Collins, Blomquist, Walls and Knecht present. 1. Accepting FERC License. Mark Fuller told the Boards that the Federal Energy Regulatory Commission has issued a license joint to the city and county to construct and operatecand maintain a hydro power' plant at Ruedi. FERC requires the city and county to respond with a resolution accepting the license within 60 days of issuance. Fuller said he would like to formalize that acceptance through resolutions from both the Commissioners and Council. Fuller said the city and county staff have reviewed the license and do not find anything that is controversial. This will allow the city and county to get on with the project planning. Commissioner Kinsley moved to adopt the resolution for the county; seconded by Blake. All in favor, motion carried. Mayor Stirling said the memorandum listed some issues left unresolved; the charge to be assessed by FERC for the use of the government dam, and the format of the city/county project management. Mayor Stirling also asked how the city is going to fund this and what the mechanisms and obligations are. City Manager Chapman said the charge for the government dam is basically the amount of money the federal government would want out of the net revenue as their share for the use of Ruedi. Chapman said the highest charge they have ever assessed is 50 per cent of the net revenue. Chapman said this is the figure used in calculating the projected costs and revenues of running a hydro plant at Ruedi. The city has~project~d!~in the first year the net revenue would be $250,000 and the federal government's share would be $125,000. Chapman told the Boards there is a bill in Congress which has been introduced which would reduce the total amount the city and county would have to pay to about $16,000. Chapman said the chances are good the federal share will stay where the city planned or if it changes, it will change to the city's favor. Chapman said he, and Fuller have just finished working on the draft of the format of management of the project. This intergovernmental agreement will be on the next regular meeting. This is a fairly straightforward agreement, i not like the transit agency. Chapman said the operation of the project has been included as part of the Requests for Proposal. Chapman said the city and county would view them? selves as operators only as a last resort. If the proposals will charge a lot of money to 9perate, the city and county may want to consider operating the project. Chapman said the funding could be a privately placed financing plan. This will be part of the response to the RFPs. Everyone who responds has to include a proposed financing mechanism that is better than the municipal bond market and within the rules permitted by FERC. The FERC revisws each mechanism for funding on a case by case basis. The fall back financing plan is city of Aspen utility bonds which can be issued without going to a vote, The financing ~s in the area of $4,000,000 to $4,500,000. These would be revenue bonds payable from the proceeds of the sale of power, Right now, the staff is envisioning the city of Aspen will be the customer for sale of power; that might not be the best option. This will be part of the analysis the staff will be going through in the next three months. Chapman told the Board the city of Aspen's long term contract for power supply with PSCo expired at the end of 1982. The city is ~n a year to year renewal basis until the city give six month notice that they will no longer need power. The staff will be looking at a long term power supply contract. Mayor Stirling asked if is it clear there is a need for power. Kinsley said it will be cheaper to the consumers. Chapman said the amount of power Ruedi would generate would take care of 45 per cent of Aspen's current demand. The power costs to PSCo are 33 per cent higher than what Ruedi will be. Chapman said the cost of this project will be $250,000 by the end of this year. The city intends to capitalize all costs as part of the bond sale and get paid back in the front end. Councilman Collins asked what the schedule is. Chapman Said the RFPs are out; he expects to have a contractors meeting to review the proposals in October. The responses should be in by the end of October. The city and county will use November and December to review the proposals and make recommendations to the Boards and enter into contract documents by the end of this year. The city could go to the bond market early in 1984. The city could start construction next season and start generating power by late spring 1985 or at the latest fall 1985. Chapman said he would like to get the facility generating power in the peak season of Aspen's use. This will be a significant element in the considerations of the RFPs is the time schedule. Mayor Stirling asked who owns the water in the reservoir. Chapman said that is a signifi~ cant issue that still remains because the water could be sold off. Kinsley said this fact has been accommodated in the worst case scenario. Chapman said there are discussions about who owns the water and what the marketing plan will be. The staff has been using the environmental process to keep close tabs on the marketing planning for water sales out of Ruedi. The BOR has selected the alternative, which is almost the best marketing plan for hydro power. The staff should work with the BOR to tie up some language on this. Fuller pointed out the effect of the issuance of this license is that it gives the city and county a commitment on the part of the federal government for the development of hydro power at Ruedi. This gives the city and county the power to get into other agencies and show that Aspen/Pitkin County has a license in their hands. Councilman Blomquist asked if it wouldn't be a good idea for the city and county to buy the water. Fuller said the river district has different priorities. Chapman said the issue is "equal public bodies" and the BOR feels the river district is more equal than the city or county. Chapman said the city and county offerred to buy the reservoir in early 1982. The BOR told Aspen/Pitkin county to buy the reservoir, then when the city and county offered, the BOR said Aspen/Pitkin County are not the right people to buy the water. Chapman pointed out that Ruedi Water and Power Authority could be the right agency. Regu±ar Councilman Collins moved to adopt Resolution #29, Series of 1983; seconded by Councilman Knecht. All in favor, motion carried. The Council and Commissioners both changed their next regular meeting to Tuesday, October 11, 1983, as Monday, October 10, 1983, is a legal holiday. Commissioner Madsen requested that the Council, in the budget process, consider the sharingi of offices for the police department and sheriff's department in the new jail facility. 2. Transit Authority. Wes Light, county attorney, presented the intergovernmental agree- ment with changes from the last joint meeting. The joint meeting language is the same as in the last draft. Paragraph 3, page 4, clarifies that the terms will be consistent with the elected officials'terms. Page 7 reflects a change pursuant to Councilman~>B~omquist's request to have a semi-annual meeting basis. Paragraph 8 adds the recommendations for the next similar season. In paragraph 9 it indicates the joint meeting will be held in early September. Councilman Blomquist recommended striking "early" for more flexibility. Light pointed out added to the review items for the joint meeting is the proposed transit budget as a discussion item. Light explained a change on page 9 for grammatical reasons only. Light said the amount of the funds to be paid over to the authority are identified by the formula set forth in the contract. Light requested that the sentence referring to exhibit A be struck as there is no such exhibit. Mayor Stirling asked if it would be put in when the payment is expected and if it is a lump payment. Stewart told the Boards this is being discussed during budget discussions. Light noted bus use incentives has been added as one of the ways to spend funds. Light said on page 12 the transfer of assets and liabilities has been written to include the fact that no liabilities of the current agencies will be transferred, the only exception to the above is the provision for providing initial operating funds in section 4 of this agreement. All current liabilities of the city and county shall not be transferred to this agency and shall remain the liability of the relevant city or county system only; however, the liability for continued payments on or buy out of buses being transferred to the agency bY~the city or county shall pass with the assets to the agency. Light said the liability associated with the assets being transferred will go to the transit agency and they will be responsible for continued payments on those items. The deficit discussed at last week's meeting will not be transferred to the transit agency. Councilman Blomquist said before the agreement is signed, the city has to know exactly what it means in terms of dollars and how to get out of the problem the city has. Council-i man Blomquist said he feels the agreement~should transfer the liabilities of the city and county transportation systems and they should not remain the liability of the city or county. Chapman said if the liability is not transferred, the city will have to show it as a subsidy from the general fund. The general fund cash surplus would be reduced by $136,000, leaving a cash balance of slightly in excess of $1,000,000. Chapman recommended that the liabilitY should be transferred. Whether it is ever collected could be subject to discussion on a yearly basis. Chapman said at some point in the future, if the trans- portation situation changes, for whatever reaon, there could be an option to disouss repayment. Chapman said this is a fairly critical issue to the city, going into considera-i tion of a 5 year capital program and having a bond issue for capital improvements. The city should take whatever steps they can to make sure the city's bond rating is as good as it can be. Councilwoman Walls asked about the implications to the transit authority. Chapman said there has been lengthy discussions with the bond counsel on the transit agency's authority to issue bonds, and they have concluded that the transit agency itself cannot issue bonds. The city or county will have to issue bonds on behalf of the transit agency. This liability would be carried by the transit agency as an?accounts Payable. Councilman Blomquist asked that the paragraph on page 13 be revised to accommodate this situation. Commissioner Kinsley said the city and county have to give the transit agency money to operate the system. Commissioner Klanderud said she has problems on the county's side of passing the liabilityl onto the transit agency. There is another issue of whether the transit agency is willing to even assume that liability. Bil Dunaway Said if the transit agency is assuming assets, they ought to be assuming liabilities. Dunaway said it would be screwing the city if the agency takes all the assets and none of the liabilities. Curt Stewart said it is being argued to transfer this liability to help the City's bond rating. Stewart said $100,000 on a $1,000,000 cash flow seems negligble. Joe Barrows, Kirchner/Moore, told the Boards the city's bond rating is waivering on being raised to an A rating. One of the problems the bond rating agency continually expresses is the adequacy of fund balances to compensate the unpredictability of income, having reliances on sales taxes. Chapman said the staff had anticipated a $179,000 transfer from transit funds to the general fund overhead, and this cannot now be transfered. Councilman Blomquist said this new entity is being created to take over a function, and this function includes both sides of the ledger. Commissioner Blake said the normal business way is make a financial analysis; it was the understanding to make the analysis at the time the intergovernment agreement is signed. Blake said this will not get his support if it carries forward a liability from the past from the city. This new organiza- tion should start with a clean slate. Councilman Blomquist said it was understood this was to be funded with a County-wide sales tax, which has not hapPened. Spence Videon said it is not a matter of what the authority is willing to accept; it is the matter of economic soundness. The budget does not give the transit authority any room for deficit. Videon said the transit agency should not be expected to accept a liability that may or may not be paid back. Commissioner Klanderu~ said when this merger was considered, the revenue the county sales tax would bring in and the other obligations in the seventh penny were taken into account. What made this joint venture feasible was that they knew what amount of money would come in, and it made sense. With this liability in the picture, the agency does not make the same kind of sense. This is a budget that is going to provide service in a consolidated ~=Wu~i lv~==~ng Aspen clty councll September 26, 1983 way that will be as efficient with the level of quality that the city and county has now. The service cannot be provided if the agency starts assuming liabilities. Ms. Klande~ud said the county has ~o consider that they have committed theirselves for $350,000 to put into the agency to make up for other deficits because of ~he hold up of the county wide sixth penny sales. Those are monies out of the general fund the county has not anticipated spending. Kinsley said it looks like =he county is willing to bi~e the bullet and the city is not. Chapman pointed out the city is transferring over $1,400,000 a year to the agency, the amount of money the city is giving up in revenue far exceeds the debt service. Chapman pointed out the city is going to rescind its seventh penny sales tax so that the county can institute their sixth penny sales tax except for the the city is already obligated to. Councilman Collins moved to adjourn the joint meeting at 5:20 p.m.; seconded by Commissioner Blake. All in favor, with the exception of Councilman Knecht. Motion carried. COUNCIL MEETING MINUTES Councilman Collins moved to approve the minutes of August 22, 24, 1983; seconded by Councilwoman Walls. All in favor, motion carried. CITIZEN PARTICIPATION 1. Chuck vidal commented on the issue of splitting up the planning department. ~.Vidal said he feels this is really moving in the wrong direction. Vidal said he felt the planning staff should be kept together, and the city and county should work toward developing a regional planning authority. Vidal said planning does not stop at city or county lines and planning issues are very much integrated with each other. The regional planning authority should have the responsibility for doing planning not case load work. Mayor Stirling said the staff and Council will be discussing this issue over the next few weeks, and suggested Vidal get a schedule if he~?would like to attend these meetings. 2. Shirley Tattenham, a Castle Ridge resident, presented a petition from tenants of buildings A, B, and F requesting reimbursements on their rents. The residents are asking that half the rent money from the first day work began on building A to the last day of work on the buildings be returned. There were about 5 people from Castle Rigde present. Mayor Stirling asked the petition be given to the City Manager so the city can find out how much money this would be. Councilman Knecht asked the reasons for the request. Ms. Tattenham said there has been heavy equipment at the project, it is b~ing completely torn up. There is no privacy or peace during ~he day; porches have been torn off and sidewalks are torn up. Councilman Knecht asked if this was from the drainage project of the founda- tion project. Bob Wells, engineering department, told Council this is the drainage project now, the Council approve the contract made in August. Councilman Knecht asked i~ the rent rebate didn't carry over from the last pro~ect. Dan McArthur, city engineer, told Council in the last pro,ecs, ~he contractors were inside the buildings and jacking up the building. This is outside corrective measures. 3. Margaret Albouy presented a proposal to the Council relating to use of the Wheeler. A local group has been trying to find space for the kids of Aspen and they have always felt the Wheeler would be an ideal location. Ms. Albouy explained in her letter why this request is late. Mayor Stirling pointed out the use of the Wheeler is on the agenda, and it would be approrpiate uo discuss~this~request a= that time. 4. Carolyn Doty, committee to preserve open space funds, asked about ~he status of the Shadow mountain trade. City Manager Chapman said his information is that the deal has not been consummated at this point. There are some title issues that need to be worked out. Chapman has been in contact with Bob Stevens, who has indicated his willingness to talk about selling but not to donate the land. COUNCILMEMBER COMMENTS 1. Councilman Knecht said he would like to talk to the staff about coming up with a resolu- tion to get in front of the situation about chain operated restaurants. Councilman Knecht said there seems to be a great deal of paper sacks and boxes that get spread around the city with this type of operation. Councilman Knecht said he would like a study done on being able to fine businesses whose trash is found spread around town. City Manager Chapman said he would report back to Council on this. 2. Mayor Stirling said the Council has been going through the budget process for about two weeks. There was an editorial in the Aspen Times which was rather appropos. Mayor Stirling said it is difficult to see what the Council is trying to deal with because of the lack of totals and comparisons. Mayor Stirling said this is a very tedious process. Mayor Stirling recommended Council give the authority to the City Manager to go forward and find from the proposed budget for 1984 where the Council can cut $250,C00 to $400,000. This is the combination of numbers the city's will be shy this year. Mayor Stirling said instead of having another budget hearing, he would like Council to ask Chapman to decide where he thinks money can be cut in 1984. This relates to the previous discussion on transportation. 3. Councilman Blomquist noted in the August 22 minutes Council requested the SPA discuss- ion to be on this agenda, and it is not. City Clerk Kathryn Koch reported the planning office had requested two more weeks and it is scheduled for the first meeting ~n October. City Manager Chapman pointed out that the budget does have an overview. For each fund there is a five year financial plan with 1982 actual, 1983 budgeted, and 1984 projected. Councilman Blomqulst moved to add a discussion of the intergovernmental agreement for the transit authority to Council's agenda; seconded by Councilman Knecht0 All in favor, motion carried. City Attorney Taddune requested Council discuss their policy on PUD or GMP application tha~ entail city-owned property. Councilman Blomquist moved to add this to the end of the agenda; seconded by Councilman Collins. All in favor, motion carrie~. TRANSIT AGENCY AGREEMENT~ Councilman Blomquist checked with the City Charter, and wherever talking in the agreement about joint appointments or joint decision, language should be inserted to state appointedli by both the City Council or County Commissioners, so that the City Council must act in its capacity. The Charter is very clear that the Council can only act as Councilmembers either in regular meetings cr in special meetings. City Attorney Taddune said it is the consensus of all the attorneys involved that inherent governmental power has to be exercised by the governmental body exercising that power. There can be a distinction made between inherent governmental powers and policy matters. Taddune pointed out that five Commissioners and one Councilmember may vote in something the majority of Council does not want. Taddune said in exercising traditional city powers, there would need to be a majority vote of the Council. Councilman Blomquist requested that the intergovernment agreement be cleaned up to agree with the City Charter. Kinsley said he did not think there is a problem with this request. County Manager Stewart asked what decisions this would apply to, only budget and appointments. Stewart said he needs to know which powers the Boards want separated. Chapman said whatever is in the intergovernmental agreement that requires a joint decision clarify it to mean that each vote separately Spence Vide0n~ said if there are major differences of the two bodies, there is no mechanism for resolving them short of dissolution. Councilman Collins said there is a_legal question whether the city can relinquish their autonomy to a combined group, and the city's Charter does not allow the city to do that. Videon asked if the Charter requires the city to provide transporation. The answer is no. !! Videon said then why isn't transportation a policy matter, not something inherent like eminent domain. Mayor Stirling pointed out the city is committing the entire seventh penny to this, so there is an indebtedness decision. Mayor Stirling asked if Council accepted these changes, everyone but Councilman Knecht agreed. Councilman Knecht moved to accept the sentence on the bottom of page 12 as it is written in the contracf, "the only exception to the above is the provision for providing initial operating funds per section 4 of this agreement. All current liabilities of the city, county transportation system shall not be transferred to the transportation agency and shall remain the liabilities of the relevant city and county only. Provided, however, that the liability for the continued payments on or buy out of buses be transferred to the agency by the city or county shall pass with the assets to the agency; seconded by Councilwoman Walls. Councilman Collins said he has a problem with the city assuming the liabilities that belongl to the transportation system. The new transit agency has taken on the transportation system, which should include the assets and liabilities. Councilman Collins said the city should not be assuming liabilities out of its general fund. Councilman Collins said in normal business practice, if you take on a system, you take on the pluses and negatives. Kinsley said it is relevant to find out how the Council felt about the budget information given to them at the last meeting, which would affect this decision. Kinsley said a way of looking at these liabilities are that they are mistakes of the management. Mayor Stirling said there are two different funds, one fund has~a short fall. This is complicateld and involves a grievance with the Ski Company going back five years. Mayor Stirling said the city has a deficit, and they have to face it in some way. Councilman Knecht~said the city and county has to give the new transit agency a clean slate. The city's problems are not going to be solved by passing on this liability. This liability has to be dealt~wi~h through the city's general fund; it should not be passed on to the transportation agency. Councilwoman Walls said the two choices are to pass on a paper deficit or to absorb the deficit in the general fund. The only problem with the latter choice is that it might affect the city's bond rating. Councilwoman Walls suggestedll the city let the transit authority start out clean, and the city has to deal with its, own problem. Councilman Blomquist said the deficit should be dealt with before the city signs the intergovernmental agreement; there should be a solution rather than putting this off. Kinsley said he feels this is a pivotal issue, and a negative vote on this issue will turn into a negative vote for him on the whole authority. Kinsley said the new agency should not be given a dead horse. The city has been interested all along in protecting its routesi now it wants to protect some mismanagement. Commissioner Child pointed out that if the bonding capability is the problem, it is only a one year problem. The deficit will be off the books in 1985. Child said to jeopardize the consolidated bus system for a one year problem would be unfortunate. Chapman pointed out the city could have zeroed out this deficit in 1983, but the buses would not have been ready for this ski season. Chapman agreed the deficit is a one year problem, but this is a critical year for the city and the difference in bond rating could be much more than $136,000. Councilman Collins sai~ the city has run a responsible transportation system for the last 5 or 6 years. It has been subsidized by the residents and by the Skiing Company. Councilmanll Collins sai~ if the new agency is going to take on a tremendous level of assets, they can take on some liabilities. Mayor Stirling said he was concerned about putting any kin~ of liability on the new transit agency. Mayor Stirling reiterated he would rather take care of this $136,000 liability by cutting the 1984 budget. Councilmembers Walls~ Knecht and Mayor Stirling in favor; Councilmembers Blomquist and Collins opposed. Motion carried. Kinsley said he felt that some day this transportation system gets picked up downi~the valley by other entities. Kinsley suggested not using Aspen/Pitkin County Transit Agency but rathe~ be called Rca~ing Fork TraDs~t Agency. Aspen t'lty ~ouncl± September 26, 1983 Councilman Blomquist moved the Council approve the intergcverr~er~ agreement for tke ~ transit agency and name it Roaring Fork transit and include the amendments to accommodate the Charter and that the city attorney approve the agreement as to form; seconded by Councilman Knecht. Stewart said there will be some technical language changes about the financing mechanism of transferring funds, City Attorney Taddune noted this will be approved by ordinance. Stewart said the by-laws also need to be finalized. All in favor, motion carried. ELECTION ISSUES City Attorney Taddune presented an ordinance establishing questions for the special election November 15, 1983, these are the sixth penny initiative, the increase in the RETT, the third item is financing the city's participation in the transit authority. City Manager Chapman explained there are two methods the staffhas settled upon for providing the amount of money for the bus maintenance facility and the 16 new buses. The city could issue its sales tax revenue bonds, based on the seventh penny sales sale funds. This would require an election. There was an election last may where this was approved by the county voter's on the county wide sales tax. The city would have to have an election on this sales tax because the county does not have their county-wide sixth penny sales tax.i Chapman said the other option, based on the election, held last May, is the county could issue sales tax revenue bonds and enter into a lease'~agreement with the city where the city would obligate to pay for those funds, This option could be done without having another election. The only difference in the two options is that these would be county sales tax bonds secured by a lease agreement with the city. The Board of County Con~nissioners would have to go through their bonding process and enter into a lease with the city. Joe Barrows, Kirchner/Moore, said the lease agreement between the city and county guaranteeing payment of the bonds would make the marketable. MayOr Stirling asked if there are any other options. Chapman said the staff looked at 25 different alternatives and have narrowed it to these two. Bob Irvin, KUtak Rock & Huie, city's bond counsel, said he has concluded the transit agency cannot issue bonds on a tax exempt basis. These are the only financing routes available. Mayor Stirling asked where the money would come from. Chapman said this would come out of the city's seventh penny just as if the city was issuing the bonds. Chapman said the transit agency planned their budget with these payments in it. Councilman Blomquist said he felt a city election on city's sales tax would be the cleanest way to go. Mayor Stirling asked which approach would benefit the city the most. Chapman said they are neutral, both have the same effect. Chapman said if this is the only reason to have the election, it will cost money for the election. The county has already received approval from the voters. Chapman pointed out the question would be exactly the same as the issue voted on in May except that the city would be the authority to issue the bonds. Mayor Stirling asked if this would affect the city's bonding for capital improvements. Chapman said it would in that it would be part of the city's indebtedness. Councilman Knecht said he felt the voters would think the city and county had collectively lost their minds if they put a question to the voters that was just voted on in May. Chapman said the city does have an agreement with the county to come up with funding for the bus maintenance facility and the new buses. Last year, the decision was to go for the county-wide sixth penny sales tax and the authority to issue bonds to pay for the facility and for the buses. These issues passed. What fell through is the Basalt question, which is why the Council is faced with this issue now. The city has to come up with money in December for the facility and for the buses. Councilman Blomquist asked how the Council could agree to spend more than a million dollars without having a million dollars and is such an agreement valid. Chapman said the city did agree to that. Councilman Blomquist said this should go to the electorate. Mayor Stifling agreed, and then the city would face the consequences. Chapman said it is the county's choice if they are willing to issue the bonds. If not, the city's choice is to have an election or figure out how to come up with the cash over the next year. ORDINANCE ~25, SERIES OF 1983 - Amending Ordinance 16, 1970, Sixth Penny funds Francis Whitaker, committee to preserve open space funds, told Council they have had a lot of meetings with staff; the committee has a better understanding of the sixth penny. The draft ordinance has 75 per cent of the revenues shall be allocated for open space acquisition; 25 per cent goes to.what the administration feels is needed for administering the fund, overhead allocations, food tax rebate, open space maintenance on the parks. Whitaker said the committee has made an important concession, in that any sale of assets should also be split 75/25. For instance, if the Red Roof Inns is sold the assets would be split 75/25 and could help to pay off the Wheeler. It is stated in the draft ordinance that all encumbrances, debt service, etc. will come out of the 75 per cent. The committee wants to reverse the trend to have more and more coming out of the sixth penny for other purposes than open space. Mayor Stirling opened the public hearing. City Manager Chapman said with two technical changes to the committee's version of the ordinance, the city would have no problem with the ordinance. Chapman said the first changes is in section 1 under the 25 per cent category, to insert the words "Park and mall" maintenance. Chapman said there is a slight part of the mall maintenance that comes out of the sixth penny. It would be part of the 25 per cent allocation. This proposes to spend basically what the city is doing now. The person that plants and takes care of the flowers in the mall comes out of the sixth penny, not the seventh. Whitaker said he would have no objection as long as this stays within the 25 per cent. Chapman said it is Regular Meeting Aspen very clear where the limitation is, and the staff has no problem interpreting it. The other change is in the next paragraph stating that all land fund monies should be expended on land within the city. Chapman said the intent is land acquisition should be within the city. Iselin park is not in the city, and sixth penny funds are spent to maintain Iselin park. Adding the word "acquisition" would make it clear the city could maintain Iselin park. Chapman said with these two changes, the ordinance is what the city is trying to do now. City Attorney Taddune added that this phrase should be inserted "for the purpose of this ordinance 'municipal purpose' shall be defined as follows:" Councilman Blomquist asked the members of the petitioners committee if they would accept the changes outlined by Chapman. Mari Peyton said as long as it stays within the 25 per cent. Marge Riley agreed. Whitaker also agreed. Mayor Stirling closed the public hearing. Councilman Knecht moved to adopt Ordinance #25, Series of 1983, on second reading as amended; seconded by Councilwoman Walls. Roll call vote; Councilmembers Walls, aye; Knecht, aye; Collins, aye; Blomquist, aye; Mayor Stirling, aye. Motion carried. Francis Whitaker thanked the city staff for giving the committee all the information they requested and for working so well with the committee. ORDINANCE ~48, SERIES OF 1983 - Increasing the Real Estate Transfer Tax Councilman Blomquist moved to read Ordinance ~48, Series of 1983; seconded by Councilman Collins. All in favor, motion carried. ORDINANCE ~48 (Series of 1983) AN ORDINANCE AMENDING ORDINANCE NO. 20 (SERIES OF 1979) REGARDING THE IMPOSITION OF A REAL ESTATE TRANSFER TAX UPON THE TRANSFER OF INTERESTS IN REAL PROPERTY AND PAYABLE BY THE GRANTEE SO AS TO INCREASE THE AMOUNT OF REAL ESTATE TRANSFER TAX PAYABLE FROM THE RATE OF ONE-HALF OF ONE PERCENT (1/2 of 1%) OF THE CONSIDERATION PAID IN RETURN FOR THE TRANSFER OF OWNERSHIP OR TITLE TO THE RATE OF ONE PER CENT (1%) OF SAID CONSIDERATION AND TO CODIFY THE AFORESAID ORDINANCE, INCLUDING THE IMPOSITION OF PENALTIES FOR THE VIOLATION THEREOF, AS AMENDED, AS NEW ARTICLE VI, CHAPTER 21 OF THE MUNICIPAL CODE OF THE CITY OF ASPEN; MAKING THIS ORDINANCE EFFECTIVE JANUARY 1, 1984, ONLY UPON APPROVAL OF THE SAME BY THE ELECTORATE PRIOR TO SET EFFECTIVE DATE was read by the city clerk (Ten minutes of conversation is lost due to the electricity failure). Richie Cohen said the four years this has been in effect there has been no objection to 1/2 per cent RETT because people know it is specifically for the arts and people support that. Cohen said the city might run into a lot of problems if they start adding things to specific tax. Cohen said he felt the volume of the RETT will grow over the next couple of years. Cohen said he felt it would be opening Pandora's box if the city tries to double a tax the voters supported at one time. Gideon Kaufman said it is curious when developers for projects come to Council, the Council is reluctant to bail out developers. When the city Council spends money on projects and uses up the funds, their response is to raise an additional tax. Bob George said he felt this increase in the RETT is a violation of trust as to how the Council original sold the issue. George said the city went to the people and gained support assuring this would not be increased and would be a reasonably temporary tax. George said he feels Council will run the risk of a lot of resentment on that basis. Lee Alexander said she felt this is a highly convulted way to bring more money into open space. George Bryan encouraged the Council to tighten their betls rather than increasing this tax. Councilman Blomquist said in Section 21-127 he would like to see the $100,000 spending limit in any year to support the visual and performing arts striken. Councilman Blomquist said Whatever is left over after the Wheeler debt should go to the arts without limitations. Councilman Blomquist projected doubling the RETT would bring in $500,000 to $600,000. The $250,000 that is taken out of the land fund for the Wheeler could be released back to the open space fund and the RETT would be covering the Wheeler debt service. Council could then develop a mechanism for intelligent guidance for uses of the open space fund and with the arts groups. Mayor Stifling said he may be interested in supporting some amendments to the original ordinance. Mayor Stirling said the city is always looking to other sources of money whenever a fund is low rather than tightening the belts. Mayor Stirling said the election in 1979 was very close. The land fund is low because the city has purchased Marolt and Shapery properties. Mayor Stirling said this is a norrow tax; it is taxation without representation. Mayor Stirling said he felt this increase is inappropriate at this time. Councilman B10mquist moved to amend in section 21-127(a) by eliminating the last sentence and changing the title to reflect that; seconded by Councilman Knecht. All in favor, with the exception of Councilman Collins and Mayor Stirling. Councilman Collins moved to adopt Ordinance ~48, Series of 1983, as amended on first reading; seconded by Councilman Blomquist. Roll call vote; Councilmembers Knecht, aye; Blomquist, aye; Walls, aye; Collins, nay; Mayor Stirling, nay. Motion carried. ORDINANCE ~50, SERIES OF 1983 - Election Issues City Attorney Taddune recommended Council adopt this on first reading so that they retain some flexibility on the ballot questions. The questions will probably be revised between first and second reading. The question concerning Ordinance ~16, 1970, has been resolved in favor of the initiative petition, so it does not have to be included in this ordinance. There is a question about the transfer of the city's interest in the county dump. There is also the RETT increase in this ordinance, and the city's sales tax bond question for the transportation issue. Aspen city ~ouncl± September 26, 1983 Joe Barrows said the way the sales tax question was drafted was to keep it as simple and as closely related to the same language in the county sales tax authorization of last May and to make reference to that. Councilman Collins asked why the principle was $1,800,000 when the debt is $1,200,000. City manager Chapman said the break down is $1,200,000 for the buses and maintenance facility. The figure of $1,800,000 was the figure in the county question to cover the buses, maintenance facility, the buy out of the 20 buses, a year's capitalized interest, reserve:~funds and bond issuance costs. Barrows said the actual bo D~ issuance will only be whatever it takes to acquire the buses and the cormuitment to the maintenance facility. There probably will not be the need to use the full authorization. Taddune said the second question has to do with disposing of the dump site. Chapman said in 1983 the county agreed they would pick up the full costs of operation of the dump. Previously, the city had been paying $17,000 to $20,000 a year to the county as their share of the operating costs of the dump. The county agreed the city would not have to pay for operation in exchange for transferring the city's interest in the dump. Mayor Stirling asked if there should be some compensation. Chapman said the city no longer has to pay their share of the operating costs. Mayor Stirling asked what the county's plans are if this is no longer used as a dump. Councilman Blomquist said the dump is laid out so that a ring of lots can be sold around it. This land does have real estate potential. Councilman Blomquist said he did not think this should go to the electorate until Council knows all the aspect of this. Mayor Stirling agreed this should not go to the electorate until the Council has much more information about all the city and county lands. Council's consensus is to leave this off the ballot. Councilman Collins moved to read Ordinance #50, Series of 1983, as amended; seconded by Councilman Knecht. All in favor, motion carried. ORDINANCE ~50 (Series of 1983) AN ORDINANCE CONCERNING QUESTIONS TO BE SUBMITTED TO A VOTE OF THE QUALIFIED ELECTORS OF THE CITY OF ASPEN, COLORADO, AT A SPECIAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 15, 1983; DIRECTING THAT QUESTIONS BE SUBMITTED TO THE QUALIFIED ELECTORS OF THE CITY OF ASPEN FOR THE FOLLOWING PURPOSES: (1) AUTHORIZATION FOR THE ISSUANCE OF THE CITY SAL~S TAX REVENUE BONDS FOR THE PURPOSE OF GUARANTEEING THE CITY'S:SHARE OF COSTS ASSOCIATED WITH THE DEVELOPMENT OF THE PROPOSED MAINTENANCE FACILITY AND PURCHASE OF SIXTEEN (16) NEW BUSES IN CONNECTION WITH THE CITY/PITKIN COUNTY UMTA GRANT; (2) SUBMISSION TO THE ELECTORS FOR THEIR ACCEPTANCE OR REJECTION OF AN ORDINANCE AMENDING ORDINANCE NO. 20 (SERIES OF 1979) COMMONLY KNOWN AS THE "REAL ESTATE TRANSFER TAX ORDINANCE" TO, AMONG OTHER THINGS,~ CODIFY SAID ORDINANCE INTO THE MUNICIPAL CODE AND INCREASE THE TAX THEREBY TO THE RATE OF ONE PER CETN (1%) OF THE CONSIDERA TION PAID IN RETURN FOR THE TRANSFER OF OWNERSHIP OR TITLE; PROVIDING FOR A SINGLE VOTING PRECINCT AND POLLING PLACE; AND SETTING FORTH OTHER DETAILS IN REGARD TO SUCH ELECTION was read by the city clerk Councilman Collins moved to adopt Ordinance #50, Series of 1983, on first reading, as amended; seconded by Councilman Knecht. Roll call vote; Councilmembers Knecht, aye; Walls, aye; Blomquist, aye; Collins, aye; Mayor Stirling, aye. Motion carried. ORDINANCE ~42, SERIES OF 1983 - M.A.A. Water Line Extension Mayor Stirling opened the public hearing. City Attorney Taddune said he has not had a chance to go over this draft of the agreement. Councilman Knecht moved to continue the public hearing and table Ordinance #42, Series of 1983, until October 11, 1983; seconded by Councilwoman Walls. All in favor, motion carried. Councilman Blomquist moved to change Council's next regular meeting to Tuesday, October 11, 1983; seconded by Councilwoman Walls. All in favor, motion carried. WHEELER OPERA HOUSE - Use of Basement Eve Homeyer, Wheeler Board, told Council the com~mittee's problem grows worse each week. The Wheeler Board knew they would have to be patient while the new Council gets caught up. The Council has twice reaffirmed Ordinance ~10, 1982. Ms. Homeyer pointed out the city is losing a lot of money in rent because leases have not been signed. The Board has found tenants for the basement twice, and they have been lost twice because the tenants: had to make other plans. Ms. Homeyer said the Wheeler needs to be completed. Ms. Homeyer said the people on the committee love being on the committee, but they are very frustrated. Ms. Homeyer said when the Board brings in a recormmendation, they would like to be allowed to go along with and not have Council start all over again. Mayor Stirling said this is a public building, and Council has heard from public groups that might want to use the building. Ms. Homeyer said there is a date to open the theatre, and the Board does not know if they can make that date at the rate it is going. Mayor Stirling said the initial proposal for the basement was rent of $~7,000; that person backed out. The second proposal rent was almost half that amount. Mayor Stirling said the Council feels, based on that, they should look at other uses for the basement. Ms. Homeyer: said the Board does not want to go for another proposal until the Council decides which way to go. Regular Meeting Aspen ~luy uouncz~ O~Fu~L~=z Councilman Blomquist asked if an unfinished basement prevent the opening of the Wheeler theatre. Bob Murray said the theatre is not contingent upon finishing the basement; it will affect t~e budget. Councilman Blomquist said the Council is talking about commitment~ that will have far reaching consequences. The public use of the building Council is concerned about, and there are public uses that have not been looked at. Margaret Albouy has presented a proposal for a teen center. Councilman Blomquist said he would like to examine all the options. Councilman Knecht moved to reaffirm Ordinance 10, 1982, to give the Wheeler Board as much autonomy in this decision making process as was originally proposed; seconded by Council- woman Walls. City Attorney Taddune said if Council approves this and the Board makes a recommendation, Council should follow that recommendation. This Board has been given this responsibility. Councilman Blomquist said this is a temporary board, and Council has to approve the financial transactions. Councilmembers Knecht, Walls and Mayor Stirling in favor; Councilmembers Blomquist and Collins opposed. Motion carried. Margaret Albouy told Council work has gone on for six years of the idea of having a facility for people under 21 in town. There have been extensive studies and committees on that. This space should be a place to go where kids can have snacks, games, listen to music, dance, etc. The kids want to be right downtown. Ms. Albouy said this is a primary need in Aspen that is not met and something should be done about it. The Wheeler is an ideal place for this activity. Ms. Albouy proposed that the city take responsibility for the cost of the space, and her group would get equipment and locate persons to operate this. Councilman Knecht moved to meet jointly with the Wheeler board on October 3, 1983; seconded by Councilman Collins. Mayor Stirling said at this meeting, it should be established who should be in the basement of the Wheeler. Councilwoman Walls said the BOard understood they were to make the space pay to support the Wheeler. The Council will have to decide if they still agree with that or should the space be considered for public purposes. Councilman Blomquist pointed out leasing the entire basement to public purposes would cost $30,000 per year. Councilman Knecht asked who would pay. Councilman Blomquist said the Council would. Ms. Homeyer pointed out the tenants were required to do their own interior finishing. TIME SHARING Mayor Stirling said the Council has been sued by the people who applied for time sharing. !i Councilman Collins questioned if the Council is in litigation, should time share ordinance! be discussed. City Attorney Taddune Said he would like to discuss the litigation in an executive session. Councilman Collins moved to table action and go into executive session; seconded by Councilman Blomquist. Mayor Stirling said he is not in favor of executive sessions; it is important that the public be party to discussions in this. All in favor, with the exception of Mayor Stirling. Motion carried. Councilman Blomquist moved to table time sharing until the next regular Council meeting; seconded by Councilman Collins. All in favor, motion carried. CASTLE CREEK WATER TREATMENT PLANT EXPANSION Bob Wells, engineering department, presented Council a summary of the three bids that came in and a letter from the city's engineering consultant. Rea Cassens has reviewed the bids and has checked Coreco's references. Cassens is recommending the contract award to Coreco in the amount of $1,570,673. City Manager Chapman explained this is part of the $9,000,000 water bond issue for the city's water management program. This is part of the original budget 3 years ago. Mayor Stirling asked if Coreco has done any projects for the city. Dan McArthur, city engineer, said they were the general contractor on the Wheeler. Wells said their sub-contractors have done work for the city before on water related projects. Mayor Stirling asked if Coreco has a lot of experience in water related projects. Rich Cassens said they have built sewer and water treatment facilities. Cassens said he had worked with the president of Coreco in 1976. Cassens said on plant type of facilities, he feels they are very qualified. Councilman Collins moved to approve the contract award to Coreco in the amount of $1,570,673.02; seconded by Councilman Blomquist. All in favor, motion carried. MAROON CREEK DIVERSION DAM Bob Wells, engineering department, told Council Coreco was the low bidder for this project also. The same comments as above apply here. Councilman Blomquist moved to approve contract award to Coreco construction in the amount of $188,191.80; seconded by Councilman Collins. All in favor, motion carried. SMUGGLER AREA DRAINAGE PROJECT - Award of Construction Contract Bob Wells, engineering department, recommended using deep storm sewer using aluminium pipe and to chip/sealing the roads to save money.instead of asphalt overlay. Wells said by the time this project is finished it may be too cold to do either. Councilman Knecht said he would rather spend the money and do asphalt. Councilman Knecht asked why not put this project off for six months. Dan McArthur said the Smuggler trailer park is putting their system in and the city has to provide the rest of the system this year. Councilman Collins asked if there was any way to temporarily handle the runoff for Smuggler. ~gu±ar mees~ng ~spen ~l~y uouncl± DeptemDer zb, McArthur said paving Smuggler will change the flow of drainage. Councilman Blomquist said!i the city should go ahead with this project. Councilman Blomquist moved to approve the contract with chip/seal and if at a later date decide to do asphalt go with that; seconded by Councilman Collins. All in favor, motion carried. Mayor Stirling suggested not deciding on the chip and seal until the city knows what the weather is like and what will happen with the Neale street bridge. Councilman Collins moved to reconsider; seconded by Councilman Knecht. All in favor, motion carried. Councilwoman Walls moved to approve the contract award to Swerdfeger~construction; seconded by Councilman Collins. All in favor, motion carried. NEALE STREET BRIDGE Dan McArthur, city engineer, told Council the city applied for a grant for reconstruction of the Neale street bridge. In August, the city was notified the grant was accepted and the city was awarded $67,200 for the rehabilitation and replacement of the Neale street bridge. Since that time, the staff found out that the state and federal government will be funding approach and alignment work. The city can accept the $67,000 and replace the bridge using the ~present alignment; or accept the $67,000 and make the alignment changes at the city's cost of $270,000; or deny and reject the grant money and apply next year for the total package. McArthur told Council the city has to make a decision by October 7. Councilman Blomquist said he felt the cit~!i should go ahead and try for next year's grant for the total package. McArthur said the bridge will be two lane with walkways on both sides. Councilman Blomquist said he did not see how the city would gain anything by just replacing the deck. McArthur said there are over 100 bridges in the state with a rating of 20 or less. Neale street is rated at 34; Aspen was the highest rated municipality to get grant money. Councilwoman Walls said the city ought to go ahead with what they have gotten. This is not the principle bridge access. McArthur said the bridge will be widened and lengthened. Councilman Knecht moved to go with the engineering department recommendation that the grant be accepted and that funds of $16,800 be committed to replace the bridge; seconded by Councilwoman Walls. All in favor, motion carried. SUBDIVISION EXCEPTION - Tipple Woods Lot 4 Colette Penne, planning office, told Council this request is to legitimize through the subdivision procedure the existence of two lots on this parcel. These are presently subject to a 20~i~ear lease. These two houses are above the Tipple lodge; they are accessed by stairways and tramway. The 200 year leases existed at the time the parcels were annexed into the city. Ms. Penne said these are non-conforming lots of record, Ms. Penne told Council she did a site visit. The structures are not in a good situation on this parcel~ There are non-conformities in the set bacRs. Single family dwellings area permitted use in L-2. Each lot is 3200 square feet, which is adequate. The access is somewhat difficult, but the only people using it are the property owners. Ms. Penne said she feels a 200 year lease does constitute a subdivision and recommends granting subdivision approval. Councilman Blomquist asked if there was notice to the neighbors. Ms. Penne said it is not required; however, she talked to the Tipple lodge who felt there would be no problem. Mayor Stirling disqualified himself as he manages one of the houses. Barbara Purvis, Holland and Hart, said this request is being made to clear up the title. There are no plans for making improvements. This is merely to legitimize a subdivision that occurred at the time of the lease. The lease was made for the purpose of transfer- ring ownership. Ms. Purvis told Council she asked for expedited review because referring this to P & Z would serve no public purpose. Ms. Purvis said there will be no change in terms of the structural design, Street arrangement, traffic. No planning issues will change. Councilman Blomquist moved to grant subdivision exception for the purposes of legitimizing the existence of two parcels on lot 4;i Tipple Woods subdivision with the four conditions in the planning office memorandum of September 26, 1983; seconded by Councilman Knecht. All in favor, motion carried. SUBDIVISION EXCEPTION - Winfield Arms Richard Grice, planning office, told Council this is a request to condominiumize the Windfield Arms. The planning office feels an exception from subdivision is appropriate because it is an existing building and the impacts already exists. The engineering department has requested some changes on the plat. The Code requires some criteria in condominiumization; notice to tenants, six month minimum leases, this will not result in reduction of low and moderate housing, and inspection for life, health and safety matters. Grice said the applicant has committed to notice to teants and six month minimum leases. Grice pointed out the affidavits of what the rents are for these units. At this point, the city's maximum rent for middle income housing if $.82 per square foot. However, on this agenda is first reading for new employee housing guidelines, which raises the maximum to $1.13 per square foot. Gail Schwartz, housing office, feels very strongly this is employee housing and should be restricted. Grice noted the guidelines in effect at this time and when the application was filed are $.82 per square foot. The building department made an inspection and found no life, health and safety concerns. P & Z considered this application, added two conditions and recommends approval as does the planning office. Gail Schwartz told Council the housing office was not a referral agency on this application. Since 1979 there has been an inventory of reasonable long term units in the area. The Winfield Arms has always been noted as reasonably priced units serving the local people. Ms. Schwartz told Council the housing authority has adopted these guidelines last spring. Council has not adopted because they wanted a study session. Ms. Schwartz would like Council to consider that these units fall within the housing price guidelines so there is the opportunity to maintain the existing supply of reasonable units, which is one of the elements of the master plan. Andy Hecht, representing the applicant, said the ordinance does not talk about prohibiting condominiumization but mitigating the impacts if there is displacement of employee housing, which are those guidelines adopted by Council for the purpose of the growth management plans. Hecht said although this project has served the community, it is not justification to take a property right away from an owner Councilman Knecht moved to approve the subdivision exemption for the Winfield Arms condominiumization subject to conditions 1 through 9 of the planning office memorandum of September 26, 1983; seconded by Councilman Collins. Councilman Blomquist questioned condition 8, how many parking spaces. Hecht said with the 8-½ foot width there would be 24, which is two short; if they are 8 feet, there would be 26 parking spaces. Grice said the condition was writtern to maximize the parking as best as possible. Mayor Stirling pointed out this building is downtown, within walking distance, gives employees a change to live near work. Mayor Stirling said he would like to keep this in a rental ~1; however, the property rights cannot be denied. Mayor Stirling said the Council should address the subdivision exception process and the notice requirements. Carolyn Doty said this building is some of the only employee housing left in town that is true employee housing. People who live in these units now will not be able to afford these units. Ms. Doty said she is opposed to this condominiumization. Mayor Stirling agreed there is a tension between displacement of people living in a build- ing and the protection of property rights. All in favor, with the exception of Councilwoman Walls. Motion carried. ORDINANCE #49, SERIES OF 1983 - Housing Price Guidelines Gail Schwartz introduced Jim Dansky the new housing director. Ms. Schwartz said there are low, moderate and middle income guidelines in four areas; rental units, purchasing employee units, lodge and commercial units, developer guidlines for residential development. There is an income sketch in the ordinance and the price guidelines for development of employee housing. Ms. Schwartz told Council there are no points given for the development!I of middle units in the GMP. Middle income guidelines in only in the ordinance to accommodate existing units. Councilman Blomquist moved to read Ordinannce #48, Series of 1983; seconded by Councilwoman Walls. All in favor, motion carried. ORDINANCE ~49 (Series of 1983) AN ORDINANCE ESTABLISHING 1983 QUALIFICATIONS AND GUIDELINES FOR LOW, MODERATE AND MIDDLE INCOME FOR OWNERSHIP, RENTAL AND DEVELOPMENT OF EMPLOYEE HOUSING UNITS WITHIN THE CITY OF ASPEN AND BY VIRTUE OF THIS ORDINANCE SUPERSEDING AND AMENDING PRIOR RESOLUTIONS AND ORDINANCES (SPECIFICALLY ORDINANCE NO. 79, SERIES OF 1981, AND ORDINANCE NO. 23 SERIES OF 1982) BUT ONLY TO THE EXTENT THAT THEY ARE INCONSISTENT WITH THIS ORDINANCE was read by the city clerk Councilman Knecht moved to adopt Ordinance ~49, Series of 1983, on first reading; seconded by Councilwoman Walls. Roll call vote; Councilmembers Blomquist, aye; Walls, aye; Knecht, aye; Collins, aye; Mayor Stirling, aye. Motion carried. SAAB SCANIA AGREEMENT Mayor Stirling asked if this lease approval went beyond December 1983. City Manager Chapman said the lease goes to October 1984, but if there is no budget allocation, the lease would have to be terminated. The cars were budgeted for all of 1983. Mayor Stirling proposed to return four of the vehicles and only approve the nine police vehicles for the rest of 1983. Mayor Stirling said he would like the city manager's car, attorney's car, assistant city manager's car and recreation care returned. Councilman Collins agreed; City Attorney Taddune said his car was offered to him as part of a compensation package. Taddune said he would like to discuss the ramifications of this with Council before they act. Mayor Stirling asked if the city is tied to Saab or did the~leases go out to competitive bid. Chapman said the city got proposals in writing from five companies and Saab was lower by $65 per month per vehicle than the other lowest bid. Councilman Blomquist said he feel the cars are necessary, and for the manager and attorney are part of the benefit package. The recreation department may not need to have a Saab but some vehicle. The pool car probably pays for itself. Councilman Blomquist said he did not feel cutting these four cars gains the city anything. Councilman Knecht said he has voted against these cars in the past; however, this is not the appropriate time to make this decision. This discussion would be better during the budget time. Councilman Knecht said he would prefer a salary increase to providing a car. Councilman Knecht moved to approve the Saab Scania lease for the city vehicles and authorize and direct the city manager to sign the lease and that the Council look into further use of vehicles for the administration during budget time; seconded by Councilman Blomquist. All in favor, with the exception of Mayor Stirling. Motion carried. ORDINANCE ~44, SERIES OF 1983 - Appropriations Mayor Stirling opened the public hearing. There were no comments. Mayor Stirling closed the public hearing. 3559 Regular Meeting Aspen City Council September 26, 1983 Councilman Knecht moved to adopt Ordinance #44, Series of 1983, on second reading; seconded by Councilman Collins. Roll call vote; Councilmembers Walls, aye; Knecht, aye; Collins, aye; Blomquist, aye; Mayor Stirling, aye. Motion carried. ORDINANCE ~47, SERIES OF 1983 - Wheeler Opera House Lease - Happy Road Mayor Stirling opened the public hearing. There were no comments. Mayor S~irling closed the public hearing. Councilman Knecht moved to adopt Ordinance ~47, Series of 1983, on second reading; seconded by Councilman Blomquist. Roll call vote; Councilmembers Walls, aye; Collins, aye; Knecht, aye; Blomquist, aye; Mayor Stirling, aye. Motion carried. ASSET REPLACEMENT FUND Bill Tuite, finance department, told Council a plow/dump truck had been requested as part of the capital improvement program. The streets department needs 60 days lead time to order this, and the capital improvement program will not be voted on by them. The staff is proposing to use the asset replacement fund for the lease purchase cost of $14,000 per year. Mayor Stirling asked how much is in the asset replacement fund. Tuite said it averages around $80,000 and comes from 3 per cent of the electric sales. Councilman Blomquist moved to approve the lease purchase of a plow/dump tru~k from the asset replacement fund; seconded by Councilman Knecht. All in favor, motion carried. APPOINTMENT TO THE BOARD OF ADJUSTMENT Councilman Collins moved to appoint Anne Austin,; seconded by Councilman Knecht. All in favor, motion carried. CONSENT AGENDA Councilman Knecht moved to approve the consent agenda; seconded by Councilwoman Walls. The consent agenda is (1) Risk Management Policies and Procedures; (2) Resolution #30, 1983 - Deputy Municipal Judge, Rouhlac Garn; (3) Liquor license renewals - Judge Beans; O'Leary's; Pour la France; Roaring Pork & Spoon. All in favor, motion carried. GMP/PUD APPLICATIONS City Attorney Taddune said this is a policy staff would like to recommend to Council for applications which might combine city-owned property; that an application not be dis- qualified on that basis alone. Taddune read; "regarding GMP PUD applications which would include city-owned property as part of that application, the city Council declines to be a joint applicant in this process nor does it wish to discuss with the applicant any disposition of city-owned land prior to application~in order to maintain impa~tiatit~in all subsequent reviews; however, with the goal of encouraging all opportunities for discussion of a community good in a public forum, the Council will deem the non-ownership of city land not to be sufficient grounds for disqualifying the application from further public review through the appropriate process. The Council reserves all rights not to sell, transfer or otherwise dispose of such city-owned land which is the subject's, of the application. The planning department and the P & Z are instructed to score GMP/PUD applications in two ways, with and without the city-owned land. Should the city subse- quently not agree to sell or transfer such city-owned land, the score will be what it would be without the city-owned land." Council decided they would like more information on this proposal. Councilman Knecht moved to table this item; seconded by Councilman Collins. All in favor, exception of Councilman Blomquist. Motion carried. Council shceduled an executive session for Monday, October 3, 1983, at 5:00 p.m. Councilwoman Walls moved to adjourn at 10:10 p.m.; seconded by Councilman Knecht. All in favor, motion carried.