HomeMy WebLinkAboutminutes.council.19831212 Aspen City Council December 12, 1983
JOINT MEETING WITH COUNTY COMMISSIONERS
The joint meeting was called to order at 3:10 p.m. with Commissioners Child, Madsen,
Kinsley and Klanderud present and Councilmembers Walls, Blomquist, Knecht, Collins and
Mayor Stirling present.
1. Ruedi Hydropower Project. Mayor Stirling said this discussion is on the proposed
contracts with G.E. and Shaeffer and Rolad and the approach to funding the hydropower
project. Mark Fuller said there are some issues in the contracts that are not resolved
yet. The resolutions for these two contracts have to be passed by the end of December.
Fuller said the agreement with G.Eo incorporates all the contract documents that were
part of the RFPs. Some of the exceptions are provisions for liquidated damanges, provisions
for liability, provision in which G.E. agrees not to submit changes orders because of
rock stabilization, provision setting the size and capacity of the facility at 5 megawatts,
Fuller said the problem is in the area of liability where G.E. is seeking to limit its
liability for the equipment it installs and the manner in which it is installed. The county
attorney has raised some question whether the limitation G.E. requested is appropriate.
Fuller said this can be worked out by the next meeting. Fuller said he would like the
Council to pass Ordinance ~76, 1983 between the city and G.E. on first reading. This would
clear the way to continue negotiations and make minor changes and come back with a final
contract on December 27.
Commissioner Kinsley asked if the city and county have technical capabilitY to be able
to assess these documents. The city and county have never built a hydropower plant. Fuller
said Shaeffer and Roland did a feasibilit- study and put together the RFPs and evaulated
the proposals. Shaeffer and Roland have been taken the lead in negotiations with G.E. The
result have been satisfactory to S&R. The city and county staff have been dependent upon
them for technical expertise. Kinsley asked if the facility is built and there is a major
design flaw, whose responsibility is it. City Manager Chapman said it depends upon the
nature of the flaw; it most cases it will be covered by the S&R contract, if it is not
engineered correctly. If the facility ends up not performing as specificed or designed,
then the staff will have to go back to the specs. Fuller said there is a full construction
warrantly for one year.
Bob MacGregor, Shaeffer and Roland, told the Boards the key issues in these negotiations
are liquidated damages, what happens if the job is not finished on time~ performance
guarantee, will it produce as much power as in the bid; rock stability, MacGregor pointed
out this is a hazardous area in terms of construction, will there be cost increases because
of the rock conditions. Another issue is liability. MacGregor said the first three issues
have been resolved to the city and county interest. G.Eo has agreed to take all the risk
on the rock stabilization. G.E.s proposal is for a 5 me~awatt plant, and the performance
guarantees had to be adjusted to reflect that, to which G.E. agreed. MacGregor said G.E.s
bid took exception to liquidated damanges, however, they did agree if the drag the project
out. MacGregor said in return for that, he suggested G.E. have an incentive for completing
the project early, which is reasonable. MacGregor said this would be splitting the
benefits down the middle for early completion.
MacGregor said he feels the negotiations and terms are fair and standard in the construction
industry. MacGregory said the unresolved issue is liability, and the practice of the
industry is pretty wide spread on this issue. The discussions are that G.E.:!is willing
to be liable for their equipment as they install it but do not want to be liable for
secondardy impacts. Kinsley asked why the facility has gone from 3.2 megawatts to 5 mega
watts. Fuller said G.E. gaver a number of proposals, and the one with combined impuls
turbine was deemed to be the most efficient in the long run. Going with an impulse turbine
eliminated the difficulties of the BOR requirement on water pressure. Along with that,
there are fewer requirements for monitoring reqUirements. Fuller said the downside is
there is a less efficient power producer, producing fewer kilowatts during some parts of
the year; in every other respect, this is better off.
MacGregory said with a 5 megawatt system, they can produce 22 million kilowatts a year.
It is larger and produces more power. MacGregory said this is a larger project because
bids came in so low. MacGregory said it is much more cost effective to go with a 5 kilowatt
facility. Fuller said he would like approval of the Boards of amendment to go with a 5
kilowatt facility. Councilman Collins asked if the contract with S&R called for them to
review and sing off on G.E.s engineering. Fuller said yes. Fuller said the staff and
contractors are working on a hold harmless or co-insurance clause to meet the intent of
indemnification without putting it in those words.
Fuller said the subcontractors wans to do work as soon as possible on the rock stablization,
and want to be guarantted any costs incurred in this would be repaid if the contract is
not approved. This will be done between now and the next meeting or as soon as the site
is accessible. Fuller said the major change from the county is a clause saying that the
city is liable for the costs of the contract, which is putting in writing what has always
been the understanding that the city will cover the costs of the contract through a bond
or some other mechanism. This will make it clear who is covering the project.
Councilman Blomquist pointed out in a memorandum from the city finance director, the question'
is raised whether the city actually gets this pwoer and at what rate. Chapman said the
cost of producing power is the same no matter who it is sold to. Chapman said the issue
is what price the power will be sold for. Chapman said another issue is what is the most
economic long term power supply for the city of Aspen. Chapman reminded Council the staff
has just negotiated a favorable contract with NMMP. The city of Glenwood has indicated
they would like to investigate purchasing Ruedi power. The staff needs to gather a lot
of information for th~ Board so they have information and options on the trade offs.
Chapman said the city of Aspen is the customer of last resort and may be the best customer.
Mayor Stirling said he feems the city would have an obligation to the city's whose money
is being used to produce this power, to give them the power at a savings.
Regular Meeting Aspen City Council December ±z,
Fuller said the question is whether you are giving the best advantaged to selling it to
the people who have paid for it or selling it at the best costs. Fuller said Ruedi power
will be less expensive that the available alternatives to the city or other potential
customers. It will be saleable. Mayor Stirling asked if any other similar projects on
the western slope are being proposed. Fuller said not that he is aware of in this scope.
Madsen said it does not seem that the focus is on how much is going to be saved and who
is going to save. Chapman said the Boards still have to debate that issue. Chapman said
if the power bills are lowered, only half the citizens of Aspen will realize savings. If
the Boards use the money generated, they could reduce property taxes and then property
owners benefit. The Boards will have to decide how the power is priced, who will benefit
and how much. Much more information will have to be gathered to make this decision.
Fuller said the staff has assumed all lonag the benefits over those necessary to pay the
cost Of development, will be available from the first year. This is open to modification.
Fuller said the members of the Ruedi Water and Power Authority have lent their support
to this project based on the fact there will be some benefits to them from this project.
Kinsley questioned the professional liability, and the letter indicating this is an open
question. Tom Smith, county attorney, said this issues will have to be discussed with
G.E. and S&R before the contract is signed. Smith has been discussed this with the city
and county staff to make sure everyone is satisfied with the liability provisions of this
contract.
Mayor Stirling asked about the Holy Cross contract, the length of it, and the possibility
of the city moving into that area. Rick Foster, Musick & Cope, told the Boards Holy
Cross has a franchise with the city, the city can compete with Holy Cross in providing
electricity. Mu$ick and Cope have been looking into the Holy Cross franchise; this is no~I
an exclusive franchise, and nothing in the franchise states no one can compete with Holy
Cross. Commissioner Klanderud asked if Holy Cross is interested in buying power from the
city. Fuller said there have been some preliminary talks, but Holy Cross has not indicate~
exactly what they are interested in. Fuller said Holy Cross does not need extra power, !i
so there is no incentive to buy from the city.
Ms. Klanderud asked if the Holy Cross and city rates are the same. Chapman said the city
rates in some cases are higher, in most cases are lower. Chapman pointed out if the city
were to supply power to Holy Cross customers, the city would have to either buy their
system or provide our own, whichever is cheaper. The city and county are looking at
annexation, and the implications to Holy Cross become even greater. Chapman pointed out
that NMPP in taking on Aspen as an electric customer, realizes a savings in power which ~
they pass on to their customers.
Mayor Stirling asked why the city. is taking the responsibility for the costs on this
project. Chapman said the only way the county could assume the costs would be to have a ~
referendum. Mayor Stirling said this will be a $4,500,000 bond issue that the city will
be on the line form. Councilman Knecht asked why the county is needed. Chapman said
the county is the joint holder on the FERC license. Chapman said the bond issue will give
the city back its development costs. This has been a partnership since the inception.
Chapman said a private sector applied for the FERC license, and the Board decided the city
and county ought to also apply for the FERC license. This was also applied for in context!
of the Ruedi water sales.
Fuller pointed out, on the non-monetary side, the county stands to benefit in terms of
maintaining the flows in the Frying plan river, in maintaining down valley economies and
making money from the hydropower project available to these communities. Fuller said the
city had the economic capability to pursue the project, but the project is 50 miles from
the city. Having the county as a partner would help establish credibility of the project.
Kinsley said one advantage is tke security of supply; the more the city and county
develop their own generation, the less vulnerable are the city and county.
Puller said the draft access agreement with th~ BOR is close to the final document. Some
language on co-insurance has to be finalized. The FERC license amendment of changing to
5 kilowatts will have to justify it will not create any futher impacts. Child asked if
that would put the license in jeopardy. Fuller said this will open the license to challenge
but only on the grounds of the amendment, not the original license. Chapman said one of
the things FERC reviews is that someone is making the best possible use with the license.
This will translate into the most power produced, and this amendment is what FERC would
like to see.
Fuller said S&R have submitted a cost estimate for design and construction, plan review
and resident engineer on the project at $265,000. A potential for savings has been
---~cluded. Fuller saind in terms of the percentage of the total project cost, this
contract is high. Councilman Blomquist suggested this is because this is a small project
in a field where most projects are huge, but the engineering and checking have to be
the same. MacGregor said a big~actor for this percentage is that G.E.s price is low;
the engineering did not change that much. S&R originally tkought the project would cost
$4,000,000 to construct and G.E.s bid is $2,900,000. MacGregor said this is a cost plus
contract. Fuller said the staff will go over the work plan to be sure that the costs
are justified. Fuller said given the nature of this project, and that it has to be
coordinated with FERC and BOR, and that S&R has been in since the beginning and established
good working relationships with all parties, there are strong reasons for maintaining them
on the job.
Councilman Collins said he would like to continue with Shaeffer and Roland because of their
past history. Councilman Collins said using staff as engineers, the savings can be very
illusionary. Councilman Collins said he would prefer the consultants have the responsi-
bility for the project and carry it to the end. Mayor Stirling asked how much city and
county staff time will be devoted to this project. Fuller said the staff is working on
how will be in charge.
Aspen City Councl£ December 12, 1983
Fuller said on the operations and maintenance agreement with G.E. the staff is just beginning
to negotiate it. What this comes down to is who is liable for what. G.E. has proposed a
long 5erm maintenance and operations agreement with the city and county. Fuller said the
staff will continue to work on this. Mayor Stirling asked if it is normal that the
contractor continues the maintenance contract following construction. MacGregor said it
is extremely unusual. The usual agreement is that the contractor guarantees his equipment,
typically for a year. Because this is an unusual contract, there are advantages in nego-
tiating with G.E.; this is an area of business that the city and county are not normally
engaged in. The site is remote from the city and county area of business. G.E. would have
a better capability of covering unexpected conditions.
Ernie Nelson, G.E., said the concept of operation and maintenance is not a normal situation.
G.E. does no~ maintain any plants at all; G.E. submitted a list of similar situations in
terms of operations of plants. Mayor Stirling asked why G.E. wants to operate this plant.
Nelson the RFP asked for it. MacGregory said the idea of operating and maintaining is a
whole new area of business.
Sheree Sonfield, finance director, said the staff has been looking at a $4,500,000 bond
issue in order to finance the project until it produces enough revenue to pay back the
bonds. There are capitalized interests for one and a half years, insurance on the bonds,
issuance costs, contribution to trailhead funds, repayment of the city's expenditure of
$400,000 so far, operation expenses, engineering and construction costs with a 6 per cent
contingency, plus interest earnings during construction. Mayor Stirling asked how much
of the bond is administrative costs. Ms. Sonfield said the engineering is $266,000 the
contingency is $167,000, development costs to date of $450,000. Ms. Sonfield said this
will average $500,000 a year for principle and interest payments.
Councilman Collins asked what the trailhead payment is. MacGregor said this is related to
fixing up any staging areas used during construction. It is a forest service requirement.
Kinsley asked if the staff costs could be recouped. Chapman said the only costs that can
be recouped are direct out of pocket costs, like payments to S&R and Musick and Cope.
Chapman said the city's administrative costs are being recouped by charging the electric
fund. Fuller's costs are a contribution to the project and have been very valuable.
Councilman Blomquist moved to approve the amendment to the FERC license; seconded by
Commissioner Child. All in favor, motion carried.
Councilman Blomquist moved to read Ordinance ~76, Series of 1983; seconded by Councilman
Knecht. All in favor, motion carried.
ORDINANCE ~76
(Series of 1983)
AN ORDINANCE APPROVING THE TERMS OF AN AGREEMENT BETWEEN THE CITY OF ASPEN
AND PITKIN COUNTY (AS OWNERS) AND THE GENERAL ELECTRIC COMPANY (AS CONTRACTOR)
FOR PERFORMANCE OF WORK IN ACCORDANCE WITH THE CONTRACT DOCUMENTS FOR THE
RUEDI DAM HYDROPOWER PROJECT AND AUTHORIZING AND DIRECTING THE MAYOR TO
EXECUTE SAID AGREEMENT ON BEHALF OF THE CITY OF ASPEN was read by the city clerk
Councilman Blomquist moved to adopt Ordinance ~76, Series of 1983, on first reading;
seconded by Councilman Knecht. Roll call vote; Councilmembers Walls, aye; Collins, aye;
Knecht, aye; Blomquist, aye; Mayor Stirling, aye;. Motion carried
Councilman Blomquist moved to read Ordinance #77, Series of 1983; seconded by Councilman
Knecht. All in favor, motion carried.
ORDINANCE ~77
(Series of 1983)
AN ORDINANCE APPROVING THE TERMS OF AMENDMENT II TO THE AGREEMENT BETWEEN THE
CITY OF ASPEN AND COUNTY OF PITKIN (AS OWNERS) AND SHEAFFER & ROLD, INC. PERTAINING
TO PHASES 4 AND 5 OF ENGINEERING SERVICES RELATIVE TO THE CONSTRUCTION OF
HYDROELECTRIC FACILITIES AT RUEDI RESERVOIR AND AUTHORIZING AND DIRECTING
THE MAYOR TO EXECUTE SAID AGREEMENT ON BAHLF IF THE CITY OF ASPEN was read by
the city clerk
Councilman Blomquist moved to adopt Ordinance #77, Series of 1983, on first reading;
seconded by Councilman Knecht.
Mayor Stirling asked what phases 4 and 5 area. Fuller said phase 4 is review and approval
of final design plan~and specs and phase 5 is resident engineer and construction management.
Roll call vote; Councilmembers Collins, aye; Knecht, aye; Blomquist, aye; Walls, aye; Mayor
Stirling, aye. Motion carried.
COUNCIL MEETING
CITIZEN PARTICIPATION
1. Franc~s Whitaker said every winter for at least the last five years, citizens have had
to call to the attention of Council the deplorable condition of the sidewalks. Whitaker
pointed out there is an ordinance which requires snow removal 24 hours after it falls.
Whitaker said he is horrified at the condition of the sidewalk, and Council should not have
to be reminded about enforcing the ordinance. Whitaker said he would like to see the image
of Aspen where citizens can walk safely on the sidewalks.
City Manager Chapman told Council the staff, every year, instructs the traffic control
officers to check the sidewalks that are not in compliance. The traffic control officers
stop in at businesses and issue warning citations with the requirement that the sidewalks
be cleaned. The tcos follow up, and if the sidewalk is not cleaned, they issue a citation.
City Attorney Taddune said people comply with this regulation once they understand it is
their responsibility.
Regular Meeting Aspen City Councll uecemDer ~z, ~
Councilman Blomquist suggeSted the ordinance be amended to set up violations of snow
removal on sidewalks the same way traffic tickets are handled, and issue tickets for a
fine. Chapman said the city has that authority, but the policy has been for the traffic
control officers to issue warnings for the first time. Whitaker said in the past he has
compiled a list of problem sidewalks and has given it to the city. Mayor Stirling requested
the staff to work on this problem and report back.
2. Tim Cottrei1, fire department, told Council Willard Clapper has been on the fire
department 25 years and was chief 16 years. Clapper has just retired. Cottrell said
Clapper has done a tremendous job for the city and citizens of Aspen. Cottrell, repre-
senting the fire department, request a Willard Clapper day. Cottrell also requested the
city name the park between the fire station and thrift shop Willard Clapper park. The
bell from on top of the fire station will be installed in the park. Cottrell requested
the city do a plague for this bell to honor Clapper and 25 years of service. Cottretl
also requested a lifetime golf pass for Clapper. Council said this will be put on the
December 27th agenda.
3. Pat Fallin, .president of the League of Women Voters, addressed the salary proposals
later on the agenda. Councilwoman Walls moved that the salary proposals be discussed
first; seconded by Councilman Knecht. All in favor, motion carried.
4. Vanessa deWolfe, from the Aspen Figure Skating Club invided Council to the Ice Show.
Ms. deWolfe said there are justifications for the renovations being requested. The Ice
Show is December 16 and 17 at 8 p.m.
5. Jim True commented to Council in recognition of the good work animal control has done.
True said he has had an opportunity to watch them and wanted to express appreciation of
their work. They do an excellent job and show compassion to the animals.
COUNCILMEMBER COMMENTS
1. Councilman Blomquist asked how the Isaac report on accessibility is doing, and how
the goals task force report is doing. Mayor Stirling said Isaac said his report might be
ready for December 27th meeting. Sunny Vann said the goals task force should be done
before December 27th.
2. Mayor Stirling said everyone is excited about the prospects of this winter, and the ARA
is in place. Mayor Stifling said the town is not fully booked, and word of this should
be broadcast to the world. The actual reservations are behind last year.
3. Mayor Stirling said he had a request to rename Fisherman's Park Henry Stein park.
Staff said they thought this had been done and would look into it and report back.
4. Councilman Collins said he would report on the Roaring Fork Transit Agency along with
the bus bonds lease.
5. Councilman Kneeht said in the Pitkin Reserve project, there looks like a big house
being built right on the edge of the road. Councilman Knecht said he would like a report
from the plannning office on this. Sunny Vann said his department has had a number of
questions about the gatehouse being constructed at Pitkin Reserve. This project was
approved and amended through the PUD process. Vann had a report on this drafted, which
he has not had a chance to review. Vann said based on preliminary review, it appears
the project is being constructed in compliance with the approvals. Vann said he would
pass his report on to Council.
SALARY PROPOSALS
Councilwoman Walls said there was good coverage of this item in the newspaper and she has
received a lot of support from the public. Councilwoman Walls is proposing two separate
actions; one is that the Council direct personnel director Patsy Malone to do a comparable
worth study to see if the city needs to make salary adjustments. This is a complicated
process and Ms. Malone will take a course to learn how to !apply the figures and will repor~
back to Council in March. The second proposal is to give an immediate raise of $100 to
people in certain job categories that are underpaid. Councilwoman Walls listed five job
categories whose pay is below the same jobs in other public or private sectors. Council-
woman Walls said this raise is long overdue and is a matter of justice.
Councilman Collins said he feels the comparable worth study is certainly appropriate and
he would support it. Councilman Collins said he would like the issue of vehicle usage
by certain employees be in the scope of this proposed study. Pat Fallin, League of Women
Voters, said the League supports the equal rights amendment and support this salary
request. Ms. Fallin suggested the city adopt a goal oriented affirmative action plan.
Francis Whitaker pointed out there have been three turnovers in the city clerk's office.
The cause of the turn overs is salaries and more pay would keep people in the job. Ida
Truscott, Aspen Women's Forum, supports both issues proposed. The Women's Forum is concerned
about discrepancy of salary between women and men in Aspen as well as nationally. Ms.
Truscott urged Council to have a study of comparable worth done, urged a 2 per cent cost
of living raise, and an increase of $100 a month in the lower categories.
Councilwoman Walls said her focus is on job categories that are mostly filled with women
because the pay is low. If there are men in these certain categories, they should also
have the raise. Edie Dunn supports these requests. Councilman Blomquist said if Council
agrees the study should be done, they expect a solution from that study. Councilman
Blomquist said the second part of the proposal is predetermining the study and granting
raises without benefit of the study. Councilman Blomquist agreed the study should be done
and addressed in March. Mayor Stirling said the initial research done by Councilwoman Walls
are clear there is an unjust situation in city hall. Mayor Stirling said waiting for the
Aspen ~lty ~ounc~£ December 12, 1983
results of a study seems to be a dilatory tactic. Councilman Knecht said he feels the
comparable worth study is a valuable took. Councilman Knecht said rushing into the second
part of the programs with some raises seems to be reverse discrimination. Councilwoman
Walls said the raises she is proposing are not tied to the comparable with issue. Council-
woman Walls said Patsy Malone did a survey this summer of public and private sectors, which
showed people in the same jobs at city hall are underpaid compared to the level of training
and responsibility for other job. Councilwoman Walls said there are job categories mentioned
an her memorandum that are low paid, and that is the second and separate issue.
Councilman Collins agreed a number of jobs in the lower eschelon need consideration but he
would like to know where the distinction is and which jobs are considered for raises.
Ms. Malone said Council needs to consider comparable worth is a moral issue and they are
having the study done because Council believes there is discrimination in the city. Mayor
Stirling said he feel there is discrimination in the city against woman. The study will
produce some mathmatical application to determine the distinctions and specific amounts.
Councilman Blomquist said he feels there is discrimination but has no idea how wide spread
it is, where it is, etc.
Councilman Collins moved to proceed with comparable worth study; seconded by Councilwoman
Walls. All in favor, motion carried.
Councilwoman Walls moved to give $100 raise to the job categories listed in her memorandum;
seconded by Councilman Collins.
Councilman Collins said he would like some specificity to the classifications Council is
addressing or to have a proviso in the motion to provide that information as a condition
of the motion. Chapman said the city passes an ordinance very year with the pay classifi-
cations, and this would be covered in that particular ordinance. Councilwoman Walls said
she feels the lower ranges should be adjusted first.
Councilwoman Walls moved to amend her motion to direct the city manager in his salary
recommendation for 1984 to include $100 per month raises in grades 1 through 9; seconded
by Councilman Collins.
Chapman asked if Council is doing this as an economic reason at the lower end of the salary
scale, and these adjustments will be made whether there is a male or female in the position.
Councilwoman Walls said in the past the raises have been a percentage, which increases the
difference between the high end and low end. The personnel at the lower rates just stay
where they are.
All in favor, with the exception of Councilmembers Knecht and Blomquist. Motion carried.
1984 BUDGET RESOLUTION
Mayor Stirling said the budget has increased 29 per cent since 1979, and the city staff has
grown from 130 to 160 workers. Mayor Stirling said during this time, the size of Aspen has
remained static, fewer tourists, and the sales tax is less reliable. Mayor Stirling said
hte 1983 sales tax revenues will be 2 or 3 per cent less than projected. Mayor Stirling
said it would be poor planning to count on a 4 per cent increase in sales tax for 1984.
Mayor Stirling said the businesses that have survived the recession of the last four years,
have economized and become more efficient. Mayor Stirling said reducing the 1984 budget
will not cut into essential services; services are not dollars. Mayor Stirling said the
city of Aspen must learn to manage its resources better. Mayor Stirling said he and the
Council were elected with a charge to make the government more efficient, not to protect
the status quo of a growing bureaucracy.
Mayor Stirring proposed a 10 per cent reduction in the 1984 budget, which will let citizens
and tourists feel direct benefits. Mayor Stirling said of the 10 per cent reduction, 75
per cent will go towards the "pay as you go" capital improvements including Neale street
bridge, roads, undergrounding utilities, trails, upgrading city properties. The other 25
per cent will aid the water fund. Mayor Stirling proposed not making any salary increases
for any city staff earning over $20,000. Mayor Stirling proposed decreasing education and
fitness budget, the travel budget. Mayor Stirling said meals in the city of Aspen should
not be paid for. Any unnecessary jobs or vehicles should be reduced. Mayor Stirling said
there should be no personal use of city vehicles.
Mayor Stirling proposed to cut some benefits, such as increased health insurance. Mayor
Stirling pointed out the health insurance is increasing 60 per cent, and who should pay
for it. Mayor Stirling proposed individual should pay $5 per month and employees with
dependent coverage should pay $10 per month to make up the short fall. Mayor Stirling
presented the 1984 budget narrative and Resolution 938, 1983, adopting the 1984 budget.
Finance Director Sheree Sonfield said the budget as presented is the one Council approved
in the budget hearings from last September. There were some changes made at that time and
they are included in this resolution. Ms. Sonfield identified the changes; council approved
a $67,000 grant for the Neale street bridge, which is 80 per cent of the total project.
Council approved $16,800 for the matching grant from the capital project fund. Ms. Sonfield
said in the recreation department they will have to pay for two vans because the transit
agency is taking over transportation. There is a difference in the communications budget
of $13,500. Ms. Sonfield pointed out the Council has approved expenditures of $5200 for
the tipsy taxi and $8,000 for the Coors classic. Ms. Sonfield said there was a savings
in Council non-profit budget, and an additional allocation for the CML dues, which was left
out of the budget.
There is a net savings.in the joint departments of $4,000. Mayor Stirling said the
expenditures in the general fund for 1984 are $4,722,686 and he would like that figure
reduced by 10 per cent. Ms. Sonfield said the proposed 1984 budget is only 1/2 per cent
over what staff expects the final 1983 budget to be. Mayor Stirling said during budget
hearings, the Council voted not to raise the mill levy, they reduced the proposed arts
requests by 25 per cent, Council granted less than half of the requests for non-profit
Regular Meeting Aspen ~lty ~ouncl± ~ecemDer ±z, ~
group requests. The Council has been moving towards reducing the budget and being fiscally
responsible. Mayor Stirling said he feels this is a critical time and a time to make a
change. Mayor Stirling said the Council only increased one fee, the liquor license fee,
which was requested by the restaurant and bar owners. Mayor Stirling said to hope to get
a 4 per cent increase in sales tax revenues and to build a budget around that is backwards.
Mayor Stirling said a 10 per cent budget cut would create $470,000 to be used in captial
improvements and in the water fund. Councilman Collins agreed there have been increases
over the last few years in the size of the government. Councilman Collins said the city
is facing some problems in the water fund. There are essential government projects that
need to be done in the capital improvements. Councilman Collins said he would generally
support a recommendation to reduce the budget by 10 per cent.
Councilman Collins moved to adopt the budget with a 10 per cent reduction in the general
fund of $4,722,686; seconded by Mayor Stirling.
Councilman Knecht said the Council went through a long budget process and this general cut
was never brought up. Councilman Knecht said based upon the fact the revenues may not be
coming in does not mean Council should necessarily cut the budget. Councilman Knecht said
if the budget is cut, services will be cut. Councilman Knecht said he feels that capital
expenditures should not be spent without a vote. Councilman Knecht said "pay as you go"
should be for things like maintenance; long range capital improvements should be done with
bonding. Councilman Knecht said now is when Aspen really needs full services to support
the city.
Councilman Blomquist said if any budget cutting is to be done, the Council should study
individual situations to make a knowledgeable adjustment. Councilman Blomquist said he
would be willing to take the time to do that. Councilman Blomquist said an across the
budget reduction is not a proper approach. Councilman Blomquist said the budget as ~
presented is well thought out and well done. Councilman Blomquist said the city has worked
over the last few years to get the city into a good financial position. Councilman
Blomquist said the city should be investing in the future of the community; there may be
some places more money needs to be spent. Councilman Blomquist agreed there are places
in the budget that can be cut, but they should be identified and researched.
Councilwoman Walls agreed the 1984 budget needs to be cut because it depends on an increase
in sales tax that may not be there. The city is behind on projected sales tax income in
1983. Councilwoman Walls said a 10 per cent cut seems like too much; it will cut back ~
beyond the 1983 budget. Councilwoman Walls suggested cutting the 1984 budget to the 1983
budget level, which will still be a cut taking inflation into consideration. Councilwoman
Walls said she would support a 4 or 5 per cent cut.
Mayor Stirling pointed out there are always unexpected costs the city has not considered.
Mayor Stirling is propsoing supplementing funds that are beleagured, such as the water
fund. Mayor Stirling pointed out the Council is talking about $4,500,000 more bonds for
the Ruedi project. Mayor Stirling said the city should not raise any fees or levies or
to continue to look for other sources of income.
Councilman Collins, Mayor Stirling in favor; Councilmembers Knecht, Blomquist, and Walls
opposed. Motion NOT carried.
Councilwoman Walls moved to reduce the 1984 budget lin the general fund by 5 per cent;
seconded by Councilman Collins.
Councilman Collins said he feels these adjustments should be made without cutting across
the board, and would hope that the Council will do this on a select basis. Councilman
Blomquist said the Council should adopt Resolution #38, 1983, as is, and have the staff
come back with suggested cuts and a resolution to adopt that. Councilman Blomquist said
there has been no specificity on where to cut and he would like staff proposals on where
this 5 per cent should be cut.
Councilmembers Collins; Walls, and Mayor Stirling in favor; Councilmembers Knecht and
Blomquist opposed. Motion carried.
Councilman Knecht moved to adopt the balance of Resolution #38, 1983, seconded by Council-
man Collins. All in favor, motion carried.
ORDINANCE ~55, SERIES OF 1983 - Time Share Changes
Mayor Stirling opened the public hearing. Alice Davis, planning office, said there are
four issues discussed for changes in time sharing. The first is the zone districts which
should allow time sharing; the first reading allowed time sharing in L-l, L-2, and L-3 and
removing it from RMF, CC and CL. P & Z has recommended the three lodge districts as well
as CC and CL, and remove it from RMF. Ms. Davis said the planning office agrees with the
P & Zs recommendation, but understands Council's approach to see what the ramifications
are. If Council wants to restrict time sharing, they should leave it out of L-3 and CL.
The purpose of the CL zone is for mixed uses of commercial and lodge, and time share
projects under the code have to be 100 per cent. Also the CL district is almost built out~
Ms. Davis said the L,3 is controversial; P & Z and the planning office agree this is where
the most benefit of upgrading requirements. P & Z has stated several times one reason they
want time sharing is for the L-3 zone.
Ms. Davis said the second issue is the giving of gifts. The ordinance on first reading
said the giving of gifts should not be allowed in any form. P & Z recommends allowing
the giving of gifts but to prohibit the giving of gifts in a deceptive manner. P & Z
recommends adding language to define a "deceptive gift", to prohibit misleading gifts,
like gimics; to prohibit giving of gifts to a large group on a wide-scale basis; time
share advertisements cannot offer the gifts; reitering the city will have a case by case
review to review every marketing aspect.
Aspen city Council December 12, 1983
Ms. Davis said the planning office agrees with P & Z gifts should not be deceptive but
there is a useful purpose for giving ef gifts; there are some acceptable gifts. The
third area is providing handicap access; this is already provided by state law in the
Uniform Building Code. Councilwoman Walls pointed out the Board of Appeals can grant a
variance if an alternate method of access is given, and asked what the Prospector Lodge
offered as an alternate. City Attorney Taddune told Council the Prospector appealed to
the Board of Appeals who deferred the decision to the City Council. Ms. Davis said the
Board granted the variance and told the applicant they would waive the handicap requirement
if the applicant could get Council to provide a Code amendment. This was not handled
appropriately by the staff.
Ms. Davis said the first reading of this ordinance included an annual licensing program
and fee to monitor time share projects in the city. P & Z disagreed feeling this was
cumbersome and time consuming and woul5 be an administrative hassle. P & Z recommended
a quarterly review of all time share projects until the project has sold all initial
sales. This would be conducted by the planning office, who would review all sales and
marketing materials. The project woul~ be charged the additional billing rate of the
planning office. Ms. Davis said the planning office feels this would be very time
consuming and would probably take a full time staff person. The existing regulations give
Council the right to implement a monitDring program at any time. The licensing fee has
not been discussed, but any reviews should pay for themselves.
Mayor Stirling said the Council has be~n through hearings en time sharing since 1982 and
in the last six months. David Zaagman said there are good and bad points to time sharing,
and it is Council's job to pick out what is good and what would cause harm. David White,
P & Z member, said the P & Z has gone 9ver this issue extensively and feel their recommenda-
ticns for time sharing are as good as they can be. White said the P & Z wants time sharing
in every zone but RMF, and the P & Z is strong on quarterly review. Gideon Kaufman
said the controversy surround the RMF zone, and the consensus is in eliminating the RMF
zone from time sharing. Kaufman said ~liminating the CC zone goes against the staff,
P & Z and committees recommendation. Kaufman said it does not make sense to eliminate
time sharing in a tourist area. Kauf~n urged Council to adopt the recommendation of
P & Z and the planning office.
Kaufman said he did not feel it was po.~sible to enfoce an outright prohibition on the
g~vlng of gifts. Time sharing is a re.~l estate sale, and real estate agents do buy clients
lunch or a drink. The P & Z came up w.th a list of ideas they wanted outlawed as far as
g~fts. The key in the P & Z's recommei~dation in the the advertising, one cannot advertise
gifts or trips. The P & Z recommendat.on will preserve people's ability to market the
units. Kaufman pointed out in two yea~s of time share studies, the staff and P & Z positions,
have evolved and the recommendations h.~ve bee to adopt time sharing with strict reviews in
this ordinance. Kaufman said all the .nput received from staff, public and P & Z have
been positive on time share. The Coun.~il should listen to these recommendations.
Charlotte Slater said these time share owners will be part of the community, they will live
here and have a stake in the community
Mayor Stifling closed the public hearil g.
Mayor Stirling said this Council inherited the time share ordinance. A lot of work on
research went into the time share ordii~ance. Mayor Stirling said time share has potential
to be of economic benefits; has the ability to bring business in the shoulder season, it
has the potential to employee people ~ar round. Mayer Stirling said he feels this will
increase sales tax revenues by the amount of spending these people will do. The time
share owners will be using the property as owners and their attitude toward the property
will be different. Mayor Stirling said he would support the removal of the CL zone and
the RMF zones. Mayor Stirling said he would leaving in the giving of gifts as allowing
as there are enough monitoring devices. Mayor Stirling said, as far as the handicap
access, he would go with P & Z recommendation. Mayor Stirling said he would accept the
quarterly review.
City Attorney Taddune recommended giving staff the direction on these four issues, and he
would like the opportunity to refine the ordinance before Council votes on it. Councilman
Blomquist said he wants time sharing limited to L-1 and L-2 only, no other zones.
Councilman Blomquist said he would prohibit giving of gifts but not lunch or normal type
real estate business practices. Councilman Blomquist said he wants transportation and
lodging out. On the handicap access, the ordinance should be specific about it. As far
as licensing, Councilman Blomquist would strike the section. Councilman Blomquist said
he would prefer an annual review.
Councilwoman Walls said she would allow time sharing in L-l, L-2, L-3 zones. Councilwoman
Walls would agree with Blomquist on the giving of gifts and exclude transportation and
lodging, and would leave the rest of the ordinance the way it is.
Councilman Collins said earlier Council discussed repealing time sharing and he would
rather repeal time sharing than amending the ordinance. Taddune said he is researching
prohibiting time sharing but is not ready to render an opinion. Taddune said the approach
taken by the last Council is more defensible as opposed to prohibition. Taddune told
Council that time sharing has been recognized as a legitimate form of real property owner-
ship, which weakens the ability to totally prohibit time sharing. Councilman Collins
said he would support time sharing only in L-l, L-2 as the L-3 zone is similar to RMF
and is incompatible with residential neighborhoods. Councilman collins said the giving
of gifts should be prohibited. Councilman Collins said the handicap access should be
· ncluded witk specific language. Councilman Collins said on licensing he does not have
strong feelings, but would not like to see a lot of administrative work on this.
Councilman Knecht said he would rather repeal the time share ordinance. However, if it
is ~o be amended, he would vote for L-1 and L-2 only; no gifts as it is too hard to police;
handicap access should be left in. Councilman Knecht said on the licensing and policing
of time share, someone will have to pay for it. Councilman Knecht said he feels there
should be strong fees on a yearly basis paid to monitor time sharing. Councilman Knecht
said he would like to hear from the attorneys on repealing time sharing all together.
Councilman Knecht moved to table Ordinance ~55, Series of 1983, until December 27, 1983;
seconded by Councilwoman Walls.
All in favor, with the exception of Mayor Stirling. Motion carried.
ORDINANCE ~61, SERIES OF 1983 - Business Occupation Tax
Mayor Stirling said this is a discussion of the reconsideration of this ordinance which
adopted a tax on every single employee $25 per year. There has been some confusion on
the definitions and when the time period would be. Councilman Blomquist said this is
a tax on the business but by employee count, which is the way it has been done in the
past. Councilman Blomquist drafted a definition of employee for this ordinance. Mayor
Stirling recapped the original Ordincne #61, 1983, was a 10 per cent increase of the
business occupation tax to $110, $220, and $440. During the second reading, the ordinance
was amended that the business occupation tax was to be $25 per employee in any business.
Mayor Stirling opened the public hearing.
George Byers said he is opposed to the $25 per employee license, and urged the Council to
consider something more equitable and more balanced. Byers said under this ordinance,
larger organizations would pay far more than smaller ones to do business in Aspen.
Byers said larger businesses are not more profitable than small businesses. Byers said
full time employees should not be perceived as a liability.
Francis Whitaker said his business is outside the commercial core. Businesses are being
taxed to' make improvements in the commercial zone, for which not all businesses benefit.
These improvements should be paid for out of the gsneral fund not out of a business tax.
Whitaker said the Council should make provisions for self-employed persons or senior
citizens. Whitaker said if the city is going to provide services to businesses and tax
them, the city should provide equal service. Whitaker suggested the city drop this tax
to $50 and not fund the CCLC improvements.
Charles Hopton said this amendment may raise the city less money for the city than the
present structure. Hopton said he felt the $25 per employee amendment is totally off base.
Jerry Hewey, manager of Aspen Alps, presented a letter to Council. Hewey said the
concept of charging per employee would penalize larger employers, the service oriented
businesses. This concept is in contrast to the theories of the businesses in hospitality.
Hewey said there is a misunderstanding that the larger the establishment, the larger the
net return. Hewey said Aspen should encourage good service, and businesses should not
be discouraged in this effort.
Molly Campbell, The Gant, said the lodging and tourist oriented businesses have.made a
commitment to high levels of quality services. This requires a lot of employees, which
also requires good training, good motivation, good bonus incentives, which cost money.
These businesses are dedicated to doing this. Ms. Campbell said these businesses feel
they have lost a partner. Ms. Campbell said money to pay an employee head tax will come
out of services, out of marketing, out of operations.
Bil Dunaway said the reports from staff indicates this will not increase revenues to the
city. Dunaway said this is inequitable to largers businesses. The city cannot police
this and will not get as much revenue as projected. Wainwright Dawson said he feels
this is a good opportunity for~ Council to show businesses, who could use some money for
marketing, to cut this tax back to $50 and show the community the city is trying to help
them spend money in the right place.
Mayor Stirling closed the public hearing.
Councilman Knecht said Hewey pointed out that Aspen should continue to provide an abundance
of service and anything the Council does to penalize the abundance of service is not good.
Councilman Knecht said the city should take the funds from the business license tax, put
it in the general fund and fund the CCLC from the general fund at whateve.r level the Council
feels comfortable with. Councilman Knecht said this business license fee should go back
to what it was without any increase. Taddune said he would have to amend the original
occupation tax because there was a clause on how the money would be spent. Taddune said
if Council defeats this ordinance, the business license tax will be $100, $200, $400.
Councilman Knecht moved to defeat Ordinance #61, Series of 1983; seconded by Councilman
Collins. Roll call vote; Councilmembers Blomquist, nay; Knecht, aye; Collins, aye;
Walls, aye; Mayor Stirling, aye. Motion carried.
Councilman Knecht moved to instruct staff to bring back a recommendation to Council on
earmarking the funds based on putting the revenues into the general fund and then funding
the CCLC; seconded by Councilman Collins. All in favor, motion carried.
ORDINANCE #64, SERIES OF 1983 - Cable Television
Assistant City Manager Ron Mitchell requested a study session on this Ordinance on
December 20, 1983 from 5 to 7 p.m.
Councilman Knecht moved to tabled Ordinance ~64, Series of 1983, until December 27, 1983;
seconded by Councilman Collins. All in favor, motion carried.
ORDINANCE ~65, SERIES OF 1983 - Appropriations
Mayor Stirling opened the public hearing. There were no comments. Mayor Stirling closed
the public hearing.
Councilman Knecht moved to adopt Ordinance ~65, Series of 1983, on second reading; seconded
by Councilman Collins. Roll call vote; Councilmembers Blomquist, aye; Walls, aye;
Knecht, aye; Collins, aye; Mayor Stirling, aye. Motion carried.
Aspen City Council December 12, 1983
ORDINANCE #66, SERIES OF 1983 - Bus lease bonds agreement
Mayor Stirling opened the public hearing.
City Attorney Taddune said there is a memorandum from bond counsel explaining significant
changes made to the lease agreement resulting from discussions with UMTA, who had problems
with the lease arrangement. Taddune said the county, who is the grantee, divested itself
of continuing control over the grant proceeds. UMTA is objecting to any use of the
proceeds which has not been approved in advance by UMTA. Taddune told Council the lease
has been changed with a new section giving the county absolute control, changes have been
made affirming the concept this is a joint enterprise and that the city will share in 50
per cent of costs.
Taddune said the only the city city is encumbering to fund the lease, which is clearly
stated, is the seventh penny. The city's obligations are limited to the funds received
from the seventh penny. The option agreement will protect the city's interest in the
event the city decides it wants to be in the transportation business. The continuing
control problem was solved by language inserted giving the city the right to cash out the
county, get back into the transportation business by paying the county its investment in
the project and any expenses.
Taddune said the county is the grantee and title owner, subject to the city's 50 per cent
right to use and acquire under the lease and the option to purchase the system throughout
the useful life of the premises, which are defined as the building, land, and equipment.
The lease agreement was drafted by the city' bond counsel. This is a complicated financing
mechanism to get the city's seventh penny to fund a joint consolidated transportation
system. City Manager Chapman told Council the city's limit of liability is the city's
seventh penny; it can go to no other resources of the city. If the county-wide sales tax
ever goes in place, it can only do so with a vote to repeal the city's seventh penny.
Chapman said this is set up so that other obligations out of the seventh penny will be
funding from the county-wide sales tax, like outstanding debt service, food tax rebates,
some mall maintenance.
Mayor Stirling closed the public hearing.
Councilman Knecht moved to adopt Ordinance #66, Series of 1983, on second reading as
amended with the option agreement; seconded by Councilwoman Walls. Roll call vote;
Councilmembers Walls, aye; Blomquist, aye; Collins, aye; Knecht, aye; Mayor Stifling, nay~
Motion carried.
RFTA REPORT
Councilman Collins told Council the RFTA met last week, the city attorney was there to
explain the city's policy regarding open meetings and executive session. The RFTA agreed
to ask for an a/~endment to the by-laws to cover that policy~ Councilman Collins said the
Aspen skiing Company contract was brouqht up and was discussed in open session. The bus
service agreement is still open to discussion, and Councilman Collins said it would be
more suitable for Council to wait until these questions are reconciled. The interim
agreement with the RFTA and the Skiing Company is in force.
Councilman Collins said some of the questions outstanding in the bus agreement are about
termination; full cost versus marginal costs; the buses being used exclusively for Skiing
Company employees; and accumulated employee benefits. The RFTA voted not to accept the
liability of $50,000 toward accummulated employee benefits. Councilman Collins said these
emp!oyee benefits are accrued vacation and sick leave. Councilman Collins said the Council
should address this issue and respond to the RFTA. Mayor Stirling suggested this be put
on the December 27th agenda. Councilman Collins said the city had these funds in the
seventh penny to take on this obligation, and these funds have been transferred and should
be taken care of.
ORDINANCE #67, SERIES OF 1983 - M.AoA./Wheeler Lease
Mayor Stirling opened the public hearing. This item is not ready for vote. Mayor Stirling
continued the public hearing.
Councilman Knecht moved to table Ordinance #67, Series of 1983, and continue the public
hearing to December 27, 1983; seconded by Councilman Collins. All in favor, motion
carried.
ORDINANCE #69, SERIES OF 1983 - Appropriations
Mayor Stirling opened the public hearing. There were no comments. Mayor Stirling closed
the public hearing.
Councilman Knecht moved to adopt Ordinance #69, Series of 1983, on second reading; seconded
by Councilman Collins. Roll call vote; Councilmembers Knecht, aye; Collins, aye; Blomquist
aye; Walls, aye; Mayor Stirling, aye. Motion carried.
3.2 BEER LICENSE APPLICATION - Your Pizza Run
Mayor Stirling opened the public hearing. City Clerk Koch reported the files, posting
and publication to be in order. Mayor Stirling asked the applicant how long Your Pizza
Run had been in business. Tom Laucks said five years. Laucks presented a menu and told
Council this is a delivery business of pizzas and other dinners. Laucks told Council 75
per cent of the people calling for orders want beer delivered, and it is against the law
to go to the liquor sotre and buy beer for other people. Laucks said he would like to be
able to sell beer and wine but whould have to have a full liquor license and a separate
establishment. Laucks said people like to drink beer with pizza.
Regular Meeting Aspen City Councl± ~ece~ z~,
Mayor Stirling asked for opponents to the issuance of this license. There were none.
Mayor Stirling closed the public hearing.
Councilman Knecht moved that based on the evidence presented at the public hearing, to
approve a 3.2 beer license for Your Pizza Run; seconded by Councilwoman Walls. All in
favor, motion carried.
CITY'S ROLE IN RESORT TASK FORCE
Mayor Stirling said the Council should establish a task force to study the role of the
city in the resort - Aspen. Mayor Stirling proposed the task force be in effect by the
first of 1984 and report back to Council by April 1984. Mayor Stirling suggested some
areas of study as city as host; visitor's center; ice rink; employee housing; trails;
taxis for drunks; evolution of city as a major international sports center; city's role
in continuing evolution as arts and cultural center; city's role as leader in policy
setter.
Mayor Stirling said some citizens have indicated interest in being part of the task force;i!
Roby Albouy, Margaret Albouy, Wainwright Dawson, David Fleisher, Fritz Benedict, Jack
Brendlinger. Mayor Stirling said he would llike to appoint representatives from Aspen
Highlands, ARA, CCLC, M.A.A., Arts Council, recreational clubs, hospital, restaurant/bar
association, and lodging community. Councilman Blomquist suggested the ARA share in the
responsibility of this task force, and that the assignment for the task force be tightenedI
up to make it more clear. Councilman Blomquist said he feels there is need for a series
of task forces. Councilman Blomquist said Council should have a planning session on
needed task forces and their assignments.
Councilwoman Walls said the task force could define its own areas of study. Councilman
Blomquist suggested waiting until the goals task force report is given to them. After
the report, the Council may want to combine some functions.
Councilman Blomquist moved to table this until Council has the report and can consider
the whole program; seconded by Councilman Collins. All in favor, with the exception of
Mayor Stirling. Motion carried.
DOG ORDINANCES
Councilman Blomquist moved to table this item until January; seconded by Councilman Collins.
Ail in favor, motion carried.
1984 LODGE GMP COMPETITION - Aspen Mountain PUD
Art Daily presented the three principles of this project. John Roberts, chairman of the
board of American Century corporation, which is a publicly traded company; Alan Novak,
who has been the chief liason in Aspen; Bob Calloway, developer and architect for 30 yearsl
in quality resort projects. Calloway told Council he is responsible for the development
team for the design and construction of the project. Calloway said this project has the
developers first priority and they are prepared to make a long term commitment to Aspen.
Sunny Vann, planning director, said this is a 12 acre PUD involving a lodge project on
the sites of the Aspen Inn and Continental Inn, a 33 residential unit at the top of Mill
street, and 12 units at the old 700 South Galena site. The applicants competed in the
1984 lodge GMP competition and were successful. Vann told Council the scoring has been
appealed by the only other applicant. The P & Z is still reviewing various reviews of
this project; it is a complex project. Vann said this meeting is a general presentation
of the project by the applicants. Vann said there is a January 1 deadline for the alloca-
tion of quota, which has been waived by the two applicants. The appeal will be held
December 27 by Council.
Joe Wells, representing the applicant, presented executive summaries of the project and
told Council there are full copies if they would like them. Wells showed the site plan
of the project, showed an aeriel of the site with the four parcels involved. The top of
Mill site is proposed for 33 unit residential development. The lodge parcel assumes the
Continental~ Aspen Inn and Blue Spruce would be demolished and in their place a 480 lodge
room facility will be built. The lodge facility will be two separate U-shaped structures
one on either side of Mill street connected by a bridge linking the two structures. Wells.
told Council the employee housing will be on three sites, one the conversion of the Copper~i
Horse on Main street, the conversion of the Alpine Haus on Durant and 50 employee units
to be built on Ute avenue on the same site of the housing approved for the Little Annie
project several years ago.
Wells showed the 480 room proposal with the amenities, including a conference facility of
22,000 square feet with a major ballroom, meeting rooms, etc. underground. There will
be underground parking for 315 cars. The recreational amenities include two pools, one
on each side of the facility. One of the reflecting pools will be an ice rink in the
winter. There is a ski trail easement linked into the existing trail system. The open
space has two acres tied up in perpetuity. Wells told Council the owners of the hotel
have consented to the formation of a lodge improvement district for the entire lodge
district. Wells said if this district proceeds, the applicants feel they could make a
major commitment to upgrading the street scape in the entire neighborhood.
Wells said architecturally, obiously the facility is large to support the high level of
amenities. The applicants are not unaware of the need to maintain the scale with the
surrounding neighborhood. They have tried to pull the building back from Durant street
so that it is not immediately on the sidewalk. Terraces have been excavated out so that
the interiors of the wings of the building can go below existing grade. The wings of the
building are turned at 45° angles to get the best exposure and also tO break up the facades
so it does not seem like one monolithic structure. The height has been moderated so that
it is a varying facade and does not read like one continuous roof structure. The archi-
tecture has evolved as a result of P & Z meetings. Wells said the applicants hope to
complete the project by the end of 1985.
~.~ ...... ~==~l~ aspen ~lty Counci± December 12, 1983
John Doremus said the big issue is does Aspen want and need a first quality hotel. Doremusi
said the 1982 short term accommodations report supports this. Doremus quoted from the
report that Aspen has not gotten any lodge rooms since the GMP. The only addition to the
lodge inventory since 1975 have been the completion of the Gant, 54 rooms at the Woodstone,
and the uncompleted Aspen Inn. The report states the inventory of short term units has
been frozen to that of the mid-1970's, and there has been an attrition of some of the
smaller lodges to other uses. Doremus said the issues of feasibility for the develOper
are land price, which have been controlled by the bankruptcy issues, land size.
Doremus said the applicant has had studies done for the feasibility of this project, which
determine the number of rooms. The applicants arrived at a number of units which could
fit the site and be a successful project, which is 480 units. Doremus said this project
would clean up a substandard area in the center of town. The support facilities and the
amenities would be available for the first time in Aspen. Doremus said this operation
will bring people to town who want a full service facility. The hotel will produce off
season business through marketing and utilization of the conference facilities. Doremus
said they plan to underground all utilities on this site. They would also be adopting a
unified street scape plan for 12 acres in the center of town.
Doremus gave Council some figures from the feasibility consultants. In the early years,
the payroll will be $6,900,000 a year; the taxes will be in excess of $1,000,000 per year.
The first year revenue projects of $10,000,000 in rooms, $6,000,000 in food and beverage
and $22,000,000 spent in retail, service and restaurants throughout town. Doremus said
this would be growth in Aspen. They are proposing 480 lodge units, of which 277 units
already exist, which is a net growth of 203 units. The applicant has past years allocation
of 50 and this years allocation of 35; taking that from 203 units is 118 units. The
applicant is taking two existing lodges and converting them to employee housing; this
is taking 60 units off the market. If this figure is subtracted from 118 units, there is
remaining 58 units. This project will take two years to construct so that the next two
years allocation could be used. Doremus said provisions of the code were written so that
projects of this size could be built.
Doremus said regarding the residential projects, one is single family and duplexes of 33
units; the other is a condominium of 12 units, and one additional unit at Summit for a
total of 46 units. Doremus said there are 40 units existing now, which ill be removed so
this is only a growth of six units. As far as the demand on services, the water, sewer,
haVe advised the increase can be handled. Doremus said the applicant is making significant
line improvements which will upgrade the whole system. The transit center is across the
Street from the hotel. Another issue is the size and threat of blocking views. Wells
has addressed this. The applicant has 480 units on 5 acres; it has over the required
amount of open space. The floor area ration is 1.27:1, which is a true indication of the
bulk of the facility.
Doremus said in dealing with the height, the code refers to the relationship of the proposed
building with the existing developments. There are two existing projects in the area over
60 feet and another over 55 feet. The por~ects maximum height range will be ±52 feet,
and the applicant feels they are Conforming to the existing neighborhood. The project
will provide for 100 per cent of the requirement for parking underground. Doremus told
Council their traffic planner has indicated there will be one more car per traffic signal
cycle as a result of this project. Larry Stricker, architect for the project, invited
Council to come and view the model of the project, which is at Doremus' office, and he
would welcome any comments.
RESOLUTION #39, SERIES OF 1983 - Allocation of L-3 Quota
Colette Penne, planning office, said the results of the scoring at P & Z for these projects
is in her memorandum. The Aspen, formerly Applejack, requested 3 units; the Hotel Lenado
requested 4 units for a total of 7. The available quota in the L-3 zone is 10 units.
Both projects met the threshold, but the Aspen has to have 20 parking spaces. The Aspen
put in some amenities which reduced the parking and they have to provide this parking or
get a variance. Ms. Penne said it is unfair to hold up the Hotel Lenado while the Aspen
is working on their parking problem. This resolution only allocates room to ~ the Hotel
Lenado. Councilman Knecht asked if the four rooms are included in the present Hotel Lenado.
Ms. Penne sai'd they are part of the structure as they got an FAR bonus; however, the
understanding was nothing could be occupied until they successfully competed in GMP.
Councilman Blomquist moved to adopt Resolution ~39, Series of 1983; seconded by Councilman
Knecht. All in favor, motion carried.
ORDINANCE #75, SERIES OF 1983 - Waiving Utilities for the Ice Rink
Councilman Blomquist moved to read Ordinance ~75, Series of 1983; seconded by Councilman
Collins. All in favor, motion carried.
ORDINANCE #75
(Series of 1983)
AN ORDINANCE PROVIDING FOR A ONE HUNDRED PERCENT (100%) EXEMPTION FOR
ELECTRIC SERVICE AND WATER SERVICE USAGE CHARGES AND EQUIVALENT SUBSIDIES
FOR THE ASPEN ICE GARDEN FACILITY; SETTING FORTH THE PERMITTED USES FOR
THE EXEMPTION AND SUBSIDY MONIES, SUCH BEING FOR CAPITAL IMPROVEMENTS TO
THE ICE GARDEN AND PROGRAMS TO REDUCE FEES FOR PUBLIC USE OF THE ICE GARDEN;
AND SETTING FOR A PROCEDURE FOR AN ANNUAL FUND TRANSFER was read by the city
clerk
Mayor Stirling said he feels the ceiling is the lowest priority of the three requested
items; however, the ceiling may draw more people. Ted Armstrong, recreation director, said
that as well as it will reduce the use of electricty.
Roll call vote; Councilmembers Walls, aye; Blomquist, aye; Knecht, aye; Collins, aye;
Mayor Stirling, aye. Motion carried.
Reqular Meeting Aspen Cit~v Council December 12,
Councilman Knecht said Council should give staff some direction on what should be financedi!
and how it should be financed. Councilman Knecht said he feels Council should go for the
whole program, Zamboni, cooling,tower and ceiling as requested by staff. Councilman Knech~
said he would like to do these improvements through a loan, pay the interest and get the
use of the improvements. Mayor Stirling suggested that the ice rink not be exempt from
electric charges when the payments are over. City Manager Chapman said Council can rescind
an ordinance at any time. Councilman Collins said transferring funds from department to
department is a policy approach, Council should look at what this portends. Councilman
Collins said he supports the improvements and would like to see a look at other methods
of financing.
STOPLIGHT AT CASTLE CREEK
Councilman Collins moved to table this; seconded by Councilman Blomquist. All in favor,
motion carried.
ORDINANCE ~74, SERIES OF 1983 - Lease Agreement for Animal Shelter
Councilman Knecht moved to read Ordinance ~74, Series of 1983; seconded by Councilman
Collins. All in favor, motion carried.
ORDINANCE #74
(Series of 1983)
AN ORDINANCE APPROVING A LEASE BETWEEN THE CITY AND COUNTY AS LEASSEES AND
STEVE SCHUBERT (CRITTER CORRAL) AS LEASOR FOR ANIMAL CONTROL SHELTER WHICH
LEASE IS ATTACHED AS EXHIBIT "A" was read by the city clerk
Bill Tuite, finance department, said the city is working on a formal lease with Schubert,
but does not have one at this time. Tuite recommended proceeding so public notice will
given. Tuite said the staff would like to get a commitment from the county for this
facility at a joint meeting. The staff has been negotiating with Schubert to buy the
facility or for a long term lease.
Councilwoman Walls moved to adopt Ordinance ~74, Series of 1983, on first reading; seconde~
by Councilman Knecht. Roll call vote; Councilmembers Knecht, aye; Collins, aye; Blomquisti~
aye; Walls, aye; Mayor Stirling, aye. Motion carried.
ORDINANCE 971, SERIES OF 1983 Planning Office fees for 1984
Councilman Collins moved to read Ordinance #74, Series of 1983; seconded by Councilman
Knecht. All in favor, motion carried.
ORDINANCE ~71
(Series of 1983)
AN ORDINANCE REESTABLISHING THE LAND USE APPLICATIONS FEES CHARGED BY THE
ASPEN/PITKIN PLANNING OFFICE AND REPLEAING ORDINANCE NO. 82 (SERIES OF 1981)
AND ORDINANCE NO. 67 (SERIES OF 1982) TO THE EXTENT SAID ORDINANCES ARE
INCONSISTENT WITH THE FEES AND PROCEDURES ESTABLISHED HEREIN was read by
the city clark
Mayor Stirling said these fees look like a high percentage increase. Sunny Vann, planningll
director, said the fees are fixed to the cost of living associated with increased wages.
These fees should cover about 100 per cent of the city's case load work. Councilman Colli~s
said he does not see it necessary to increase these fees every year, maybe every other
year. Vann said it has been Council's policy to wash the total cost of code administration
function. City Manager Chapman said the planning office the first year covered only 50
per cent of the case work, after the second year it was increased to 100 per cent. After
that, the fees will keep even with the cost. Vann said it has been the policy to pass
the costs onto the public; if Council wishes to subsidize these costs, it is fine.
Councilwoman Walls moved to adopt Ordinance 971, Series of 1983, on first reading; seconded
by Councilman Blomquist. Roll call vote; Councilmembers Blomquist, aye; Collins, aye;
Walls, aye; Knecht, aye; Mayor Stirling, nay. Motion carried.
ORDINANCE 472, SERIES OF 1983 - Workers Compensation, Self Insurance Pool
Assistant City Manager Ron Mitchell said the city will save approximately $30~000 annuallylI
by joining CRISA workers compensation plan. Mitchell said this appears to be a good deal
for the city.
Councilwoman Walls moved to read Ordinance ~72, Series of 1983; seconded by Councilman
Blomquist. All in favor, motion carried°
ORDINANCE 972
(Series of 1983)
AN ORDINANCE APPROVING THE CITY'S PARTICIPATION IN THE SELF INSURANCE POOL FOR
WORKER'S COMPENSATION (CIRSAWC) AND AUTHORIZING AND DIRECTING THE MAYOR TO
EXECUTE A CONTRACT FOR A SELF INSURANCE POOL ON BEHALF OF THE CITY OF ASPEN
was read by the city clerk
Councilwoman Walls moved to adopt Ordinance ~72, Series of 1983~ on first reading; seconded
by Councilman Blomquist. Roll call vote; Councilmembers Walls, aye; Collins, aye; Blom-
quist, aye; Mayor Stirling, aye. Motion carried.
GOLF COURSE LICENSE AGREEMENT - sleigh Rides
Monroe Summers presented a lease with Bob Holmes and told Council each year there has been
a contract with one or more horse outfitters to provide sleigh rides on the golf course.
3611
Regular Meeting Aspen City Council December 12, 1983
Summers told Council the last few years this has not taken place due to the snow conditions.
This contract is the same as in years past~except the fee, which is the past was a per
week fee when the course was used. Circle B has offered to pay $300 in advance for the
entire season. Summers said the'contract will protect the golf course. They will
operate in conjunction with the Red Roof Inns. The course goes outside the cross country
ski track. Bob Holmes told Council he will advertise through TV, the Daily News and the
lodges. Holmes said he has been operating at the Pomagranate since summer.
Councilwoman Walls moved to approve the golf course license agreement; seconded by Council-
man Collins. Ail in favor, motion carried.
ORDINANCE #73, SERIES OF 1983 - Appropriations
Councilman Collins moved to read Ordinance #73, Series of 1983; seconded by Councilwoman
Walls. All in favor, motion carried.
ORDINANCE ~73
Series of 1983)
AN ORDINANCE APPROPRIATING GNEERAL FUND EXPENDITURES OF $28,775; RECOGNIZING
GENERAL FUND REVENUES OF $171,250; APPROPRIATING WATER FUND EXPENSES OF
$3,827,100; APPROPRIATING POLIC PENSIONS OF $80,400; APPROPRIATING LAND FUND
EXPENDITURES OF $4,500: TRANSFERRING $30,000 FROM THE LAND FUND TO THE 1982
SALES TAX REVENUE AND IMPROVEMENT REFUNDING FUND; APPROPRIATING 1982 SALES
TAX REVENUE REFUNDING FUND EXPENSES OF $40; TRANSFERRING $40 FROM THE
TRANSPORTATION MALL FUND TO THE 1982 SALES TAX REVENUE REFUNDING FUND;
APPROPRIATING WHEELER TRANSFER TAX FUND EXPENDITURES OF $5,000; RECOGNIZING
CAPITAL PROJECTS WHEELER AND OPEN SPACE FUND REVENUE OF $4,800;
APPROPRIATING CAPTIAL PROJECT WHEELER AND OPEN SPACE FUND EXPENSES OF $4,800;
TRANSFERRING $35,000 FROM~EPLOYEE RETIREMENT FUND TO GENERAL FUND; APPROPRIATING
TRANSIT FUND EXPENSES OF $1,205,000; RECOGNIZING TRANSIT FUND REVENUES OF
$140,000; TRANSFERRING $150,000 FROM THE TRANSIT FUND TO THE GENERAL FUND;
APPROPRIATING TRANSPORTATION MALL FUND EXPENDITURES OF $90,000; TRANSFERRING
$450,000 FROM THE TRANSPOTATION MALL FUND TO THE TRANSIT FUND; TRANSFERRING
$331,696 FROM THE GENERAL FUND TO THE TRANSIT FUND; TRANSFERRING $87,984 FROM
THE GENERAL FUND TO THE TRANSIT FUND; T~NSFERRING $87,984 FROM THE GENERAL
FUND TO THE TRANSPORTATION MALL FUND was read by the city clerk
Councilwoman Walls moved to adopt Ordinance #73, Series of 1983, on first reading; seconded
by Councilman Knecht. Roll call vote; Councilmembers Knecht, aye; Blomquist, aye; Collins,
aye; Walls, aye; Mayor Stirling, aye. Motion carried.
LIQUOR LICENSE RENEWALS
Councilman Knecht moved to approve the renewals for The Shaft; Of Grape and Grain;
Hotel Jerome, Aspen Mine Company~ seconded by Councilman Collins. All in favor, motion
carried.
Councilman Collins moved to adjourn at 10:15 p.m.; seconded by Councilman Knecht. All in
favor, motion carried.
Kathryn S~Koch, City Clerk