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HomeMy WebLinkAboutminutes.council.19790423 ~egu±ar Meeting Aspen City Council April 23, 1979 Mayor Standley called the meeting to order at 4:10 p.m. with Councilmembers Anderson, Behrendt, Isaac, Parry, Van Ness, and Wishart present. Also present were City Manager Mahoney and City Attorney Stock. MINUTES Councilman Parry moved to approve the March 26, April 2, and 3, 1979, minutes; seconded by Councilman Isaac. All in favor, motion carried. CITIZEN PARTICIPATION 1. Tim Selby told Council he had become aware there was a resolution to endorse an appli- cation of Hy-Mountain Taxi company to the PUC. Selvy said he is trying to have another cab company, and if the Council is considering endorsement of another cab company, Selby Consideration of would like consideration of the Fresh Air Cab Company. Selby has picked up this applica- Fresh Air Cab tion for a cab company in the Aspen-Snowmass-Glenwood area. Mayor Standley said Council Company will consider this under City Attorney. 2. Brooke Peterson, representing the renters in the Smuggler Trailer Park, presented a petition signed by 75 people in the trailer park asking they be annexed into the City. Petition to There were only 4 negative responses; 68 out of 88 trailers were contacted. Annex Smuggler COUNCILMEMBER COMMENTS 1. Councilwoman Anderson told Council the Chamber had received 25 logo entries for their competition for the Centennial. The preliminary judging narrowed this to 7. Councilwoman~Logo Entries for Anderson said the entries were excellent. Centennial Cel. 2. Councilman Wishart moved to put on the agenda for reconsideration the action Council took last meeting on enforcing parking regulations during the off season; seconded by Councilwoman Anderson. All in favor, with the exception of Councilman Isaac. Motion Parking Reg. carried. 3. Councilman Parry pointed out that Ruedi Reservoir has fluctuated in the past few years, and it was the intention of an attorney out of Glenwood to keep the fluctuation so that Ruedi will never be used for or assigned as a recreational facility so that they Ruedi Reservoir could sell water. Councilman Parry asked if Council should talk to their water attorney about putting pressure on to keep Ruedi as a recreational facility without having it dry up. Mayor Standley suggested putting this on the next joint agenda as there is talk about selling water out of Ruedi. Councilman Behre~dt asked for a historical picture of the flow allowed out and projection of anticipated flows as a result of the water sales. Mayor Standley said the City and County should decide if they want anything done. The City will call John Musick and ask him to present what background material he has. Councilman Behrendt asked what this would do to minimum stream flow downstream and what will this do in the way of flood control. 4. Councilman Isaac said he had researched ski areas that stay open after Easter, both Snowbird and Alta have good crowds. Councilman Isaac said he would continue his lobby to have the Ski Corp to stay open after April 6. Mayor Standley pointed out all the eastern slope ski areas stay open. 5. Mayor Standley pointed out he had asked the Aspen Times to print an apology since the publication mistake regarding the annexation of Smuggler Trailer since it was the mistake of the Times. This was printed in last week's paper. REQUEST TO MODIFY LIQUOR LICENSED PREMISES - Little Nell's Request ot Modify Mayor Standley told Council this is a request to move the bar from one side of the room Liquor Licensed to the other. Premise-s- Little Nell's Councilman Parry moved to approve the relocation of the bar on the 18-E; seconded by Councilman Isaac. All in favor, motion carried. Councilman Wishart asked why this was being done. Phil Henke said the new location of the bar will be beneficial up against the windows. The location of the present bar is undesirable. Councilman Behrendt asked where Little Nell's is in the negotiations of the signs with the building department. Henke said all the signs are down and everything is cleaned up. LIQUOR LICENSE RENEWAL - Aspen Club Liquor License Councilman Isaac said he thought the Aspen Club was serving outside their designated Renewal- areas, in the pool area. Tom Dunlop noted when they applied for their license, they Aspen Club got the pool and deck area as part of their premise. Councilman Parry moved to approve the renewal for the Aspen Club; seconded by Councilman Van Ness. All in favor, motion carried. LIQUOR LICENSE TRANSFER - Crystal Palace Liquor Licens~ Rick Knezevitz, representing the Crystal Palace, told Council the ownership will remain Transfer- the same in Joan and Mead Metcalf. They are taking the parent corporation and putting a Crystal corporation directly beneath it, C- P. Restaurants Ltd, which is the applicant on this Palace liquor license transfer. There will be no change in the operation. Councilman Isaac moved to approve the transfer for the Crystal Palace; seconded by Council- man Behrendt. ~egu±ar ~ee~lng Aspen ulsy ~ouncl£ Aprl± z3, ±~/~ Ail in favor, motion carried. Appt. of E~ction Judges APPOINTMENT OF ELECTION JUDGES Councilman Behrendt moved to approve the election judges and election commission as submitted; seconded by Councilman Van Ness. Alt in favor, motion carried. ~Weight WEIGHT TRAINING APPARATUS Training Apparatus Ted Armstrong, recreation director, told Council he felt this is a worthwhile program for weight lifting program that wouldn't cost a lot of money. A room has become available at the high school with some equipment. Coach Pete DeGregorio suggested the recreation get involved with the school for this program, and a budget was presented of $3600. This could be used by high school and middle school kids and the community at large. De Gregorio pointed out to use weights now, people have to join clubs. The school would participate with the room and the equipment they have. Councilman Behrendt said he felt this was a program for the school to do. DeGregorio said the school and City presently share many athletic programs and have a good working relation- ship; this would be another extension of the programs the recreation department can offer to the citizens at low cost. Councilman Isaac asked what the school board had said about funding this program. DeGregorio told Council he had been trying to get the money funded privately, but thought this would be a good opportunity to let the community get into the program at a low cost. Councilwoman Anderson asked if there were funds available. Ms. Butterbaugh told Council everything has been budgeted that is available; however, there is some possibility of trading programs. Councilwoman Anderson moved to deny the program; seconded by Councilman Wishart. Councilman Van Ness asked if people would pay fees. DeGregorio said it will be a payback operation, the money would go to pay for a person watching the operation and would pay back any equipment if there was any left over. Councilman Isaac encouraged the private funding. All in favor, motion carried. Golf Course- GOLF COURSE - Golf Pro, Pro Shop, Fees Golf Pro, Pro Shop Fees Councilman Uan Ness asked if the City does not get a new pro shop, will the pro still accept the job. Ted Armstrong told Council the pro felt the former pro shop area would make a wonderful storage area, and is not conducive to a class A operation. Armstrong said he would still work for us without a new pro shop, although part of his commitment in working for the City was the opportunity to sell things. City Manager Mahoney noted the estimate for this is $4400 in supplemental funds. The finance director feels these funds can come from the existing fee structure. The $1,000 housing allowan ~ is out as a suitable house has been found. Mayor Standley said on good courses, the pro owns the golf carts, which is a $100,000 investment and the City gets a per cent of that. The pro runs the range and pays for range balls and get the money off that. They teach and get the money off that, and outfit the pro shop and get the money from that. A person has to be a pro at no cost to the City, and the City gets 100 per cent of the green fees. This first year the City will no% have a course until July but needs to get a pro here to train people, get programs going, and get information out. Jeffrey Sachs pointed out the profitability of a pro shop can be very large. Sachs said there should be renegotiation clauses annually. Mayor Standley told Council he and Armstrong had interviewed six pros in Arizona and gone through all their contracts. This is the best contract for the City; next year nothing will be obligated by the City. City Manager Mahoney told Council there are a lot of complicated elements to the next request. There is the Maco Stewart problem, the Temple of Strength lease, some law suits going on with the City's tenants and their sub-tenants. The City Attorney feels this will take at least six months to get this ironed out. Mahoney told Council the golf pro and Armstrong insist that the original pro shop area isn't where the City should be. They are recommending the City build another facility, which would be permitted under the City's zoning, but would require going to P & Z. This facility would take $60,000 to $70,000, and is planned for the second floor to be wrapped around the dining room, but not to compete with the windows. Mahoney said he had tried to think up a way to finance this; there is no money in the sixth penny. Under the Charter, Section 10.8 the City is authorized to go into a long term lease. The City is looking for someone to build the building and the City would lease it from them. The payback elements have not been worked out. Mayor Standley suggested rent- ing this space to the Plum Tree in the winter, or renegotiating the contract with the pro and charging rent for the space. Any of the revenues from the golf course over the bond requirement could apply to this. Mayor Standley told Council they had had the six pros look over the operation, and they all felt the City had under budgeted the number of rounds. Councilman Behrendt said he remembered a conversation where Armstrong stated the present pro shop would be adequate. Councilman Behrendt suggested a wooden starters booth on the first tee. Councilman Behrendt said he would like to wait and see what position the golf course will come in on. Mahoney told Council the City does not have the former pro shop right now, the City is in a law suit over it. ~egu±ar Meeting Aspen uz~y uounc~± apr,± z~, City Attorney Stock explained there are conflicting priorities, one of which is whether the City will get access to that piece of property; another is whether to uphold the City's position of refusing to lease. It is the City's argument that without authority someone entered into the area and begin renovating. Their property is in that location, and they have partially refurbished that area. The area is to the point where it is of no use to the City. If the City moves in they will move the property, rip some out and destory some property in the process. Stock said he would nat do that without a court order. Stock said in order to get a court order the City will have to establish a bond for damage to the property if the City is not correct in the law suit, or a determination of the merits. The latter could take six months or more. The Council will have to decide which their priority is, how important the suit is. Councilman Behrendt said the pressure to get a pro shop won't be on this summer, and the Council will know how the golf course is going for next summer. Mayor Standley pointed out the City just built a million dollar golf course, and $70,000 is an insignificant amount of dollars to make sure the golf course makes money. The $70,000 does not repre- sent an over run, but an unappropriated request to make money on a golf course. Armstrong told Council he had never said the pro shop was adequate, it has never been an adequate pro shop and never will be. Armstrong told Council there is no visual contact between the 1st and 10th tee; there is no control over the golf course. Mayor Standley pointed out the City is not trying to finance this out of City revenues but asking if the Council is interested in looking for somebody to build it and lease it back to the City. Councilman Wishart said he was opposed to the golf course but had to go along with a pro shop. The golf course is there, and the City should maximize what it has. Council concurred with the approach of trying to find someone to build the building. Mahoney asked Council to approve the submitted rate structure, which Armstrong had worked out with the pro, Ms. Butterbaugh and golfing people. Mahoney said these rates fit in with rates in other areas. Councilman Isaac said he did not like the season pass, which is only good for 10 rounds and has to be bought before June 15. Armstrong said he was trying to determine who is a local resident. Mayor Standley said a personcould buy another one if they one to turn in. Councilman Behrendt asked about passes for employees. Armstrong said the City has a commitment to pay off the bonds on the golf course, and this cannot be done with passes. Councilman Parry moved to approve the rate structure for 1979; seconded by Councilman Van Ness. All in favor, motion carried. Mayor Standley said there is a person in the community who has done a lot for Aspen and is an avid golfer, James E. Moore, who has just donated $100,000 land to the City. Mayor Standley said it would be a nice gesture to give Moore a lifetime pass for his contribu- tions. Councilman Parry moved to give James E. Moore a lifetime golf pass; seconded by Councilman Isaac. All in favor, motion carried. ORDINANCE ~21, SERIES OF 1979 - Annexation of Midland Park Annexation of Midland Park Mayor Standley opened the public hearing. Joe Wells presented requests from the homeowners of considerations as part of the annexation. The first is food tax rebate. Ms. Butter- baugh said the original ordinances would prohibit paying this out of sixth or seventh pennies; it could be a special rebate. The total rebate could be around $1720. City Attorney Stock told Council there are two out-of-pocket costs, the ownership report prepared by Stewart Title - $75, and engineering costs, drafting and review to total $161.04. Mayor Standley said the third request is for maintenance of the road if the homeowners deal with the parking problem. Mahoney said he did not think this would be more than $300 per year. Councilman Parry pointed out the City does nOt plow inside the Meadows, the Gant or Alps, and should not be snowplowing inside this property. Stock said if the City does take on this expense, the homeowners should be required to dedicate this as a public right-of-way. If the City does accept this road, it does not become a precedent. The fourth consideration is zoning of R-6, mandatory PUD for the eastern portion.and PUD for the west side. Wells said he felt this is the most appropriate zone districts given the style of the development, Mandatory PUD would trigger an application for any substantial alterations of the project. Councilman Van Ness said he is opposed to the food tax rebate in principle as there is a law which clearly describes who qualifies, and this does not qualify. Councilmembers Parry, Wishart and Anderson agreed. Council had no problems with picking up the engineer- ing and plat costs. Wells said in the long run, maintenance implies upkeep on the road, not just snow plowing. The homeowners have a solution to the parking solution; insufficent off street parking was provided in the original approval. Mayor Standley pointed out that a regular size snow plow may not be able to get through the cul-de-sac. Ellis told Council this is a standard road, except for width. Some of the problems in the winter will be where to put the snow. Wells asked if it was Council's sense to reconsider based on a positive response from the maintenance department. Mayor Standley said this is a budget increase and to wait until the new Council sits and get a recommendation from Puppy Smith. Mayor Standley closed the public hearing. Councilman Behrendt moved to read Ordinance #21, Series of 1979; seconded by Councilman Wishart. All in favor, motion carried. ORDINANCE #21 (Series of 1979) AN ORDINANCE ANNEXING CERTAIN UNINCORPORATED TERRITORY TO THE CITY OF ASPEN, COLORADO was read by the city clerk. Regular Meetlng Aspen City Council April 23, 1979 Councilwoman Anderson moved to adopt Ordinance #21, Series of 1979, on second reading; seconded by Councilman Van Ness~ Roll call vote; Councilmembers Parry, aye; Wishart, aye;~ Behrendt, aye; Anderson, aye; Van Ness, aye; Isaac, aye; Mayor Standley, aye. Motion carried. Councilman Wishart moved to grant the request of the homeowners for the City to undertake the work outlined in element 2 of their memo, basically the engineering work, and to forward Midland/Park to the P & Z for rezoning with the request of zoning consideration by the Midland Park homeowners, and to agree the City will undertake reconsideration of item 3 when a new Council sits; seconded by Councilman Isaac. All in favor, motion carried. ORDINANCE 922, SERIES OF 1979 - Density Bonuses Density Bonuses Mayor Standley opened the public hearing. Ms. Smith, planning director, told Council this come from P & Z with a 4 to 1 vote in favor, and is a proposal geared to promote the provision of employee housing by creating additional bonus in CC, C-l, and O, office. Right now there is a bonus of floor area ration in each district, but it is entirely for employee housing. This proposal divides the bonus space into bonus commercial and bonus employee housing. The proponents feel the bonus as it stands without commercial bonus does not create employee housing. Ms. Smith said she remains unconvinced this is necessary or very much of an incentive. If additional commercial space is allowed, this creates the demand for more employee housing and provides less supply. Ms. Smith pointed out in the O, Office district it was primarily residential in the first place and the incentive is not as necessary in that district. · he FAR for the O, office district was designed to maintain existing balance of lodge to commercial to residential. Jeffrey Sachs reminded Council P & Z voted 4 to 1 for this density bonus in all three zone districts, CC, C-l, and O, not just CC. Sachs pointed out there is no growth management applicable to the O, Office district. Sachs agreed there have been tremendous land increases and this will probably only be temporary. The land increases have been so astro- nomical no one has been able to take advantages of the bonuses. Presently, the housing bonuses do not require a person building a commercial building to add any housing. Sachs said the planning office feels this density bonus will increase the commercial square footage in all three zones. Sachs pointed out no one has asked for the entire commercial allotment yet. Sachs said under this proposal, for every 2 feet of commercial build out, there will be 3 feet of employee housing; it is a 60/40 ratio. Sachs disagreed that this proposal undermines the purpose of the office district, as the office district includes much housing and a lot of it is historic preservation overlay. The major objection of the planning office is that this proposal creates more need for employee housing but causes less supply. Sachs said this is totally erroneous and the planning office omits the employee housing build out figures. In the CC and C-1 zone, if you add the bonus it is 40 per cent commerical and 60 per cent housing, total bonus of .5. In the office~' zone it is .10 of commercial and .15 of employee housing. Sachs presented charts running these total out for all zone districts. Sachs said the extra space under this proposal will sponsor employee units. Sachs told Council he feels people will use this density bonus proposal. Right now, the City does not have adequate employee housing bonus for the office zone. The only dissenting vote on P & Z felt this should go one step further and downzone CC to ratio of 1:1. Councilman Beh~endt asked about the parking requirements. Sachs said a typical lot has difficult supporting the parking; they can get a variance on the amount of parking. These zones are downtown and there is not a need to transport the employees. Councilman Van Ness asked about the ratio needed for housing. Ms. Smith told Council when the planning office was establishing the growth management plan, lthey established a ratio of commercial space to permanent units. 500 square feet of commercial space per unit was used in 1977 and recognized as being in balance. Ms. Smith said if more commercial space is created, each 500 square feet built will create the need for ~ne more dwelling unit. Ms. Smith stated the City is in a deficit situation right now. Welton Anderson said he did not feel employee housing was inconsistent with the O, office district as it is listed in the code under the intent. There are other vehicles to limit the amount of commercial uses in the office zone. Not one employee unit has been built in three years under the growth management plan. In the office district, there are no growth management incentives for employee housing, and this is a positive way of encouraging employee housing with an understanding of the economic reality. Ms. Smith reiterated she felt this was not closing the gap, as any addtional commercial space created, creates the need for more employee housing. This provides less employee housing because some of it is taken up by commercial space, less than if all the bonus .5 is given to employee housing. Mayor Standley asked if the Council could require employee housing at the .5 level to make sure it occurs without any bonus. There is too much development in town and no beds. Stock said Council could demand a certain amount of parking, and it might be the same justifications could apply to housing. Council cannot demand of a development housing in excess of what is necessary for that particular development. Councilman Behrendt said he is drawn to the idea of decreasing the FAR in the commercial zone as there is so much commercial space in town. Councilman Behrendt said the City could come up with require- ments that if people are going to build, they have to build employee housing. Don Ball said if there is 5 additional required employee housing, people will end up pass- . ing that along in terms of increased cost of the retail products. The only way to get employee housing is to make it profitable. Councilman Parry agreed, and said every restric- tion the City puts on drives the prices up and drives the employees out of town. Council- man Behrendt pointed out the City has never required employee housing. Councilman Behrendt said within the existing space, the ratios could be changed; you don't have to expand what is already there. ~egu±ar meeting aspen ~lLy uouncl± aprl± Chic Collins said he did not feel this proposal helps the housing situation becuase to get housing, a bonus is given in the commercial space, which generates more commercial space, which generates more employees. Mayor Standley said at some point the employer has ' a cost trade; either paying higher salaries or provides housing. Providing housing gives better gain as they get depreciation and can write off the interest. Mayor Standley said he felt as the problem gets worse, the more attractive the bonus will be. Mayor Standley closed the public hearing. Councilman Van Ness moved to read Ordinance ~221 Seri~s of 1979; seconded by Councilwoman Anderson. All in favor, motion carried. ORDINANCE ~22 (Series of 1979) AN ORDINANCE AMENDING SECTION 24-3.4 OF THE MUNICIPAL CODE OF THE CITY OF ASPEN CONCERNING AREA AND BULK REQUIREMENTS TO PROVIDE FOR MIXED COMMERCIAL AND EMPLOYEE HOUSING DENSITY BONUSES IN THE CC, C-1 AND O-OFFICE DISTRICTS was ready by the city clerk Councilman Parry moved to adopt Ordinance ~22, Series of 1979, on second reading; seconded by Councilman Van Ness. Councilman Isaac said he would like to see figures on downzoning and giving bonuses up to~the ratios now, and also if it is possible to require hoUsing for new development. Councilman Isaac moved to table pending getting information on projects and employee housing if downzoned and whether the City can require employee housing; seconded by Councilman Behrendt. Councilwoman Anderson suggested only voting on the density bonus in the O, ~ffice district, which would let Sachs' project proceed, and the Council could then get the figures for the CC and C-1 districts. Councilman Parry said he hated to continually downzone and changing people's property values. Councilman Van Ness said he is opposed to tabling as he does not think it is a good idea to make mandatory housing party of every project. Councilmembers Behrendt and Isaac in favor; Councilmembers Anderson, Parry, Wishart, Van Ness and Mayor Standley opposed. Motion NOT carried. Roll call vote; Councilmembers Wishart, aye; Behrendt, nay; Isaac, nay; Van Ness, aye; Anderson, aye; Parry, aye; Mayor Standtey, aye. Motion carried. Mayor Standley said he felt anything that stimulates more office space in Aspen is the wrong way to be moving. Councilman Behrendt asked that the planning office look into the aspects discussed and report back to Council. ORDINANCE #23, SERIES OF 1979 - Adopting Lone Pine Water Agreement Adoption of Mayor Standley opened the public hearing. Stock told Council he has corrected the legal Lone Pine Water description in the ordinance since it was incorrect at first reading. Mayor Standley Agreement closed the public hearing. Councilman Parry moved to read Ordinance #23, Series of 1979; seconded by Councilman Wishart. All in favor, motion carried. ORDINANCE ~23 (Series of 1979) AN ORDINANCE EXTENDING THE MUNICIPAL WATER UTILITY TRANSMISSION LINES BEYOND CITY BOUNDARIES was read by the city clerk Councilman Parry moved to adopt Ordinance ~23, Series of 1979, on second reading; seconded by Councilman Wishart. Roll call vote; Councilmembers Wishart, aye; Isaac, aye; Behrendt, aye; Parry, aye; Mayor Standley, aye. Motion carried. ORDINANCE #25, SERIES OF 1979 - Obermeyer Industrial Revenue Bonds Obermeyer Ind0 Mayor Standley opened the public hearing. City Manager Mahoney submitted a memorandum outlining negotiations on the City's use of the old Obermeyer building. Obermeyer has agreed to let the City discuss the idea of a friendly condemnation. The City has requested an appraisal of the building. Councilman Isaac had asked about employee housing and Obermeyer had said he could not do it. Next door is building a second floor of employee housing. Obermeyer told Council he had asked for 3 employee units, and the architect was told this is against the zoning of the particular area, only one employee unit per building would be allowed. Ms. Smith told Council that one employee unit i per business is allowed at the Airport Business Center; it is an overall ratio. There are more businesses than units and Obermeyer could have built more units. Ms. Smith said it is confusing in the County land use code as it seems to imply one for one. Obermeyer told Council he had two 3-bedroom houses and a condominium which he uses for employee housing in town. Mayor Standley closed the publiC hearing. Councilman Wishart moved to read Ordinance #25, Series of 1979; seconded by Councilwoman Anderson. All in favor, motion carried. ORDINANCE ~25 (Series of 1979) AN ORDINANCE AUTHORIZING THE ISSUANCE OF $.1,450,000, CITY OF ASPEN, COLORADO, INDUSTRIAL DEVELOPMENT REVENUE BONDS, SERIES 1979 (SPORT-OBERMEYER PROJECT) TO FINANCE AN INDUSTRIAL FACILITY; RATIFYING CERTAIN ACTION HERETOFORE TAKEN; AUTHORIZING THE EXECUTION AND DELIVERY BY THE CITY OF A FINANCING AGREEMENT, INDENTURE OF TRUST, BOND PURCHASE AGREEMENT, SUCH BONDS AND CLOSING DOCUMENTS IN CONNECTioN THERE%~ ~egu±ar Meeting Aspen City Council April 23, 1979 IN CONNECTION THEREWITH; MAKING DETERMINATIONS AS TO THE SUFFICIENCY OF REVENUES AND AS TO OTHER MATTERS RELATED TO SUCH INDUSTRIAL FACILITY; AND REPEALING ACTION HERETOFORE TAKEN IN CONFLICT THEREWITH was read by the city clerk Councilman Parry moved to adopt Ordinance #25, Series of 1979, on second reading; seconded! by Councilman Behrendt. Roll call vote; Councilmembers Anderson, aye; Wishart, aye; Behrendt, aye; Isaac, nay; Parry, aye; Van Ness, aye; Mayor Stand!ey, aye~ Motion carried~ Council recessed for five minutes AUDITORS REPORT Dave Steiner, John Tilden and Frank Schneider of Schneider and Shuster presented the audit Auditors Report report. John Tilden told Council this is a clean, unqualified auditors report stating the auditors find the financial statements to be fairly presented both with respect to financial position and operations of the various funds. There is a combined financial statement for all various funds and account groups; this is receiving notariety among~ cities. Aspen is a leader in the area of this type of reporting. Tilden pointed out there is an increase in municipal equity combined from all sources for the year 1978 of $1,600,000, for a total municipal equity of $10,448,000 compared with $8,800,000 last year. Tilden said the receipts over expenditures is a he~lty position. The increase in fixed assets during the year aggregated to $3,400,000; the City had to borrow $750,000 to fund the golf course. As a result of this, the majority of the earn- nings have been reinvested into fixed assets of the City, which does not help the liquidity position of the city. The major events of the year were issuance of the bonds for the golf course, refunding of sales tax. The golf course created an enterprise fund on the premise the g61f course will be self-supporting. There is an enterprise fund for bus transit to account for the contract with the Ski Corporation. Tilden stated the auditors feel the overall condition of the City is sound, with some caution of watching expenditures of a capital nature. Mayor Standtey noted on page 42, it shows the City has decreased their long term debt by $150,000. Tilden agreed it is about $170~000. Mayor Standley asked for general comments regarding the debt to municipal equity ratio of the City or the debt to cash flor of the City as it relates to the financial position. Tilden said the City has not improved in the ratio of debt to municipal equity. Part of the cash flow coming from operations was applied to the reduction of outstanding debts. Frank Schneider said Aspen has almost a 1:1 ratio between equity and debt, which is a healthy position. Mayor Standley asked about the City's ability to meet current obligations. Tilden said the auditors have seen no problems for this year. There has been some collections, slow down on sales taxes and acquisition of land that will have an impact on 1979. The auditors gave a tabulation of the debt service requirements, both principle and interest of all the bonds, through 1992, as well as land notes and obligations under capitalized leases. This shows a requirement for 1979 of bond debt service of $1,057,000; land notes $258,000 and leases $284,000 totalling $1,600,000 for 1979. This compares with debt service in 1978 of $1,200,000. This is where the auditors give rise to watching the capital expenditures. Mayor Standley asked if there were a ratio between current debt obligation on a yearly basis and total budget. Tilden pointed out the $284,000 of the debt services is capitalized leases, the proceeds f~om the Ski Corp will provide moneis for that. Dave Steiner pointed out the investments includes the $300,000 of the employee retirement fund. Mayor Standley asked if this was a good level of investment. Tilden stated it meets all the bonding service requirements. Mayor Standley asked if the $6,800,000 long term debt accurately reflect the total debt of the City. Tilden said it does and still reflects a 1:t ratio. Dave Steiner wnet over the auditors recommendations for the City; none of the comments are critical. The City has done well in improving its financial condition. First, Steiner recommended considering establishing a data processing steering committee of all organiza-i tions using the computer to help plan and establish goals. Second~i some sort of on'the- job training program should be established, to get personnel family with running the computer. Third, as the computer is used more and more, there should be stronger controls! over the input to the computer. Four, one of the biggest expansions in the City was the ~ bus operations. It is important that the City start budgeting and accounting for bus costs separately, as the public bus service is funded out of the 7th penny. Finally, the City's internal control is generally good. It suffers from the fact there are not sufficient people to have good, adequate separation of duties. The Council should take a review of all the accounting systems. Schneider told Council the audit wnet well this year, and the letter of recommendation went well. CITY MANAGER Visual Arts Ctr~i 1. Visual Arts Center. Jay Hammond, engineerding department, gave out a comparison of the budget status and the actual total project costs on renovating the Visual Arts Center, and what is being requested for completion. The request for additional funding is $19,000 as the water costs must be budgeted as a separate fund. Hammond told Council the budgeted amount of $369,000 was based on a rough estimate by the general contractor and was provided prior to signing the final contract and was to include architectural fees, some testing, a model and utility allowances. This budget included less than 1 per cent contingency. Hammond said it was apparent that other costs would be involved, but the budget was set to expedite the project. Hammond told Council that $19,000 additional will not result, in a fully completed facility, and this budget requests only hard cash needed to achieve an opening in June. Items such as sprinkling system, paved parking lot, walkways, lighting and landscaping will result in a $460,000 total budget and have been dropped to have a June opening. ReguLar Meet.lng Aspen ~lty ~ouncl£ Aprli Hammond told Council the $19,000 being requested represents an increase of only 5.19 per cent over the original budgetland is still a tight budget. This is the reconstruction of a very old buildling, and problems that are not anticipated have been run into. There will be some in-house participation from the parks department of clean up and grading. On the positive side there will be some reimbursements; the original beam trussses have been ~ sold. Excess steel in the amount of $1200 will be sold. Hammond said public support for this project has been shown through the continuing efforts of the Visual Arts Board, they have tried to minimize costs and have donations of some of the work. Mayor Standley asked if the Council had given money for the operating expenditures. Ms. Butterbaugh said the Council budgeted $15,000. Councilman Behrendt asked what has happened to the fund raising program. Missy Thorne said they are doing reasonably well, but the building construction costs do not cover anything like furnishings.~ They have an opera- ting budget of $120,000 and another $68,000 for furnishing; and they have raised about 2/3 s of that. They have had over 300 people join the Visual Arts Center. Mayor Standley asked about the availability of transfers from the water fund. Ms. Butterbaugh said she felt this is the only feasible place to take the money from, with the understanding that should be sixth penny have extra funds, the money to the water department will be replaced. Ms. Butterbaugh told Council almost all the cash the City had invested at the end of the' year was an investment being held until March and April 1 for debt service payments. Ms. Butterbaugh said the City is in a tight cash flow position, as during 1978 the City did several major projects. Ms. Butterbaugh told Council the reason there are not available funds in the sixth penny as that the purchase of Aspen One was a high priority and trans- fer Of funds were be considered. The opportunity to buy the James E. Moore property came and, and this completely depleted the sixth penny funds. Councilman Isaac said he would like to see the funds raised from selling the beams and the steel go back into the project, and not just~ihtolthe general fmnds. Mayor Standley said he felt this water money should be reimbursable so that Markalunas has that amount of money back in for his capital improvements. Councilman Behrendt moved to approve the transfer and appropriate of $19,000 from water as a reimburseable transfer to the Visual Arts Center; seconded by Councilwoman Anderson. All in favor, motion carried. 2. Sixth Penny and Park Dedication Recap. Ms, Butterbaugh submitted figuresheet on both sixth Penny & of these accounts. Ms. Butterbaugh noted the $50,000 hadto be brought in as revenue in Park Dedication 1978 as the City signed bores for $550,000 for the Aspen One property and the $50,000 was Recap. not to be paid for bY the City. These figures take into account all expenditures approved out of the sixth penny and is based on a full years budget of $1,080,000. Ms. Butterbaugh told Council she is anticipating the tax collections will be on budget and may be a little above. The second page deals with park dedication fee, which has generated $84,000 for the last two years Some of the money for parks improvements came out of the 6th penny rather than park dedication fees. Ms. Butterbaugh told Council the budget expectations for park dedication for this year were $75,000. Councilman Behrendt asked for a review of what the actual expenditures of park dedication fees have gone for. 3. Fiscal Impact of Bond Issues. The finance department had submitted a separate packet Fiscal Impact of to answer questions about the bond issues. Ms. Butterbaugh said she talked with the Bond Issues County Assessor to estimate the effects made on an individual's tax bill. They were usinq between 16 and 18 as the assessed value on $100,000 market value. The state requires it be assessed at 22. Pitkin County is not current with market value. Councilman Isaac said when this was discussed, it was clear it was not being a mill increase. Mayor Standley said you cannot levy a mill levy bY bond without increasing the mill levy. There is no'.wayi~to finance a GO bond of the only mill levy the City has is 100 per cent committed. Councilman Behrendt stated the Council had been told that some of these general debts were payable out of existing funds. Councilman Isaac agreed he thought these projects were being financed on existing levels. Mayor Standley pointed out there is no revenue source for Mill street. Ms. Butterbaugh said there is some confusion on the downtown beautification. The mall will be funded out of current revenues over the next 3 or 4 years. Should the mall not pass, there will be monies available in the 7th penny to pay for the downtown beautifica- tion. The sixth penny is committed through 1980 and 1981; in 1982 there will be sixth penny money availabe to pay the GP indebtedness. 4. Senior Citizen Water Rebate. Jim Markalunas reminded Council they had adopted an Senior Citizen ordinance that requires phased metering program. By April 1, 1980, everyone has.to be Water Rebate on a meter or pay a surcharge. Markalunas said he felt something should be done about senior citizens. Markalunas had suggested an administrative rebate and had set up certain criteria for this rebate. A lot of old people have old houses and the plumbing is not very good. They have to run water all winter to keep the pipes from freezing; if they are on a meter, it will increase their water bill. Some senior citizens are on fixed income. Markalunas said he did not feel this would be a great deal of people. Budge Bingham told Council they had addressed this problem a couple of years ago as a rebate for senior citizens for water and electric. After much discussion, it was felt it would be cleaner to have no income restrictions and the $50 per year per senior citizen was decided upon. This has worked very well. Ms. Butterbaugh said she felt this is full of problems such as proving income, rentors, li~ing with children, etc. Mayor Standley suggested letting Markalunas decide as administrator. Councilman Wishart moved to have Markalunas administrate the senior citizen rebate program; seconded by Councilwoman Anderson. All in favor, motion carried. Regular Meeting Aspen City Council April 23, 1979 Parking Regulati~nspARKING REGULATIONS IN OFF-SEASON in Off-~eason Mayor Standley said this has been put on the agenda for reconsideration. There have been a lot of complaints and disgruntled people. Councilman Behrendt said one of the problems with City has is creating confusion with the irregular enforcement. The Municipal Court department would like to see the enforcement stay on during the off-season. Chief of Police Rob McClung said the police department has a definite problem with enforcing off- season parking. The citizens would like to see the streets returned to them during the off-season. McClung said in a community like this, everyone would like the chance to relax during the office season and have no pressure from tickets. McClung said this is the only time he can allow the TCO's to go on vacation. Mayor Standley moved to reconsider; seconded by Councilman Wishart. All in favor, with-the exception of Councilman Isaac. Motion carried. Councilman Wishart moved not to enforce on-street parking during the off'season; seconded by Councilwoman Anderson. Councilman Van Ness asked for a date specific; Councilman Wishart added to June 15 to his motion. Councilman Wishart asked if this is timed parking only. Council said yes, everything else will be enforced. Councilman Isaac said he felt this is a step backwards in trying to solve the parking problems. Councilman Parry agreed. Councilmembers Wishart, Anderson, Van Ness and Mayor Standley in favor; Councilmembers Isaac, Behrendt, and Parry opposed. Motion carried. SUBDIVISION EXEMPTION - Helmich Subdivision [Exemption- Richard Grice, planning office, told Council this is an application request for condomini- Helmich umization of an existing duplex in West Aspen Subdivision. The Helmich have lived on one-side for 10 years. The other side is currently rented for $450 per month. Helmich has no objection to 5 year restriction within the housing pool. Stock has recommended approval subject to the property being deed restriction to six month minimum leases and to comply with the notice and option requirements, and that at least one unit is restricted in price and occupancy. The engineering department~has requested approval be conditioned upon receiving new improvements surveys. The P & Z has recommended approval subject to the comments of engineering and the City Attorney. Councilman Behrendt moved to approve the subdivision exemption given engineerings considera- tions and the restrictions imposed by City Attorney Stock; seconded by Councilman Wishart. All in favor, motion carried. Subdivision SUBDIVISION EXEMPTION - Victorian Square Condominiumization ~xemption- Victorian Grice told Council this application comes from Garfield & Hecht, who own this building and SQuare Condo- are seeking condominiumization. The building is occupied by Garfield & Hecht and several miniumization businesses. The subdivision will result in no increase in density, and there are no residential units involved. Councilman Behrendt moved to approve the subdivision exemption for condominiumization; seconded by Councilman Parry. All in favor, motion carried. CONCEPTUAL SUBDIVISION - Herndon Conceptual Subdivision- Grice pointed out Sec. 24-10.2(d) allows for this exemption from growth management if Herndon restricted %o single family dwelling. The lots are located at the West end of Francis streets and are in excess of 44,000 square feet. There will be at least 6,000 square feet for each lot after deducting that which is over 30 per cent slope. Marky expressed doubt on adequate water supply. Dave Ellis had some concerns, but feels these problems can be addressed along with access and easements, and these can be addressed at preliminary plat state. P & Z recommended approval with the understanding these concerns will be addressed. Gideon Kaufman told Council he had gone to the property with Dave Ellis and Bob Jacobs and everything can be worked out. There are adequate water main, and the access will be off wes~ Francis street. Councilwoman Anderson moved to give conditional approval; seconded by Councilman Wishart. All in favor, motion carried. SUBDIVISION EXEMPTION - Blitz Subdivision Exemption- Ms. Smith said the planning office recommends approval of the Blitz condominiumization Blitz application, which is a duplex on lot 14 of the Anthony Acres subdivision, zoned R-15 and does allow for duplex. The application received 8040 greenline review in 1975. Ms. Smith said this is not affected by displace of low, moderate and middle income tenants as it is recently build and never has been occupied. P & Z recommended approval with condition of a 15 foot trail easement, and the property should be deed restricted to six month minimum leases. Bob Jacobs has reviewed this for the impact on fire access. Bob Jacobs told Council this property has no emergency access road. The road they face on is covered by snow six months of the year and is unusable. The owners have shown a desire to provide private equipment. Mayor Standley said he felt the fire access was a serious problem. Gideon Kaufman told Council they had installed a fire hydrant and have bought hose. Mayor Standley said he was not interested in supporting this with the fire dangers. Kaufman told Council this is a 6,000 square foot duplex; a 4,000 unit on top two floors and a 2,000 unit on the bottom. Councilman Van Ness pointed out the City has an entire process to go through, and tell people what the rules are and what they can build. After the building is built, you cannot come along and tell them the building is no good. Mayor Standley said the person who builds this knows what the risks are; a person buying it may not know what the risks are and will come back on the City because there is no fire pro- tection. Kegu±ar Meeting Aspen ul~y ~ouncl± Aprl£ Z3, Councilman Van Ness said he did not believe the City has an obligation to guarantee every- thing about a place. City Attorney Stock told Council they should not treat condominiumi-ii zation any differently than they treat any type of ownership of a particular piece of property. This went through the approval process; they obtained visual review and mass under the 8040 greenline process; they worked with the fire marshal and put in what he requested. Stock said Council's arguments as to size and location are not valid when considering condominiumization. Councilwoman Anderson asked if the City is setting itself up for a lawsuit in approving this. Stock said this is not a violation of the Colorado Fire Code. The Council can resolved this by requiring a hold harmless clause to the City. Councilwoman Anderson moved to approve this conditioned upon a hold harmless to the City on fire with a six months minimum lease agreement and the easement for the trail; seconded by Councilman Wishart. All in favor with the exception of Councilman Behrendt and Mayor Standley. Motion carried. Councilman Behrendt requested of the planning office an~investigation of the property on the mountain capable of development like this. SUBDIVISION EXEMPTION - Kuen-Fourplex Subdivision Exemp-! tion- Grice told Council this fourplex is located on East Cooper between Original and West End. iKuen0Fourplex The bottom floor has been the owner's residence and the upstairs has been short termed and to music students in the summer. The City Attorney has recommended approval with the condition that all units be restricted to six month minimum leases and that one unit be deed restricted for 5 years to the current guidelines. The Engineering department recom- mended approval subject to four concerns. P & Z recommended with the engineering and attorneys comments. Councilman Parry moved to approve with the attorney's and engineer's conditions; seconded by Councilman Behrendt. Mayor Standley said he would not like to loose these units to the music students. Stock said Council could modify the six month minimum lease provisions to restrict to only one shorter tenancy and another if used by the M.A.A. or give them 3, if they are used only by M.A.A. Mayor Standley said if this is not subdivided, it is easier to run as an apart- ment and rent to locals than to have four more absentee owners. Kaufman pointed out now this is 4 short-term rentals; by approving the subdivision, there will be four units with six-month rental restriction units lived in full time. All in favor, Councilman Wishart, Mayor Standley opposed. Motion carried. HARVEY GILMORE - MELLOW YELLOW Harvey Gilmore Mellow Yellow Mayor Standley stepped down from the table as Hy-Mountain is his client. Harvey Gilmore, one of the owners of Mellow Yellow, addressed the request by Hy-Mountain for PUC endorse- ment. Gilmore said council's stamp of approval will almost guarantee PUC will issue the license regardless of the findings of the PUC examiner, and without putting the applica- tion through the department of the Stated trained to handle such applications. The PUC examiner carefully scrutinizes the character of the applicant, financial responsibility, need for service, and effect on existing service. Gilmore told Council if they endorses this applicant on the basis of promises, the Council will have no recourse if the promises are not lived up to. Gilmore pointed out in Kamm's memorandum to Council Kamm pointed out things wrong with Mellow-Yellow's operations. The allegation that there has been a substantial reduction in senior citizen's di~l-a-ride program because of high cost is not true. Mellow Yellow contacted the program and said some senior citizens were abusing or taking advantage of the program. Because of that, the program has become more coordinated and their bill has dropped. Kamm stated competition will have a leveling effect on the spiralling cost of taxi service. Gilmore stated whether there is competition or not, Mellow Yellow will be applying for a rate increase. Gilmore presented annual reports of their past competitor and stated not one year shows a profit. Gilmore said they have always contended the community is not large enough to support two transportation companies. In the 4 or 5 years Mellow Yellow has been in business, they have shown a profit every year. Gilmore told Council Kamm promised lower rates to the community while promising higher revenues to the drivers. At the April 9 Council meeting, Kamm had told Council he would not go into business unless he had sqbstantially equal licenses with Mellow Yellow. Gilmore told Council comparing the two applications they are not equal; Mellow Yellow has an on-schedule limos±ne service, Hy-Mountain has applied for a call and demand service. This has caused hassels in the past. Gilmore said Kamm had stated existing carriers have been unable to provide adequate Aspen to Denver service. Mellow Yellow has nearly double the sixe of the taxi fleet and tripled the size of the limos±ne fleet and has carried 200,000 passengers this winter 1,000,000 miles. This winter Aspen had 50 per cent badlwsekends at the airport; the airport manager stated even with another cap company, they could not hahdle people backed up at the airport on bad weather weekends.. Gilmore stated to the Council many of Kamm's statements are incorrect, misleading or blatant lies. Gilmore asked the Council to let the PUC do its job. Councilman Isaac asked if the Council votes on this resolution and acdept it, does that mean the PUC will judge the application any differently than if Council did not. Stock answered the PUC will not give the Council its authority to make a decision. The resolu- tion in and of itself is not sufficient to carry w~ight to give the certificate of con- venience and necessity. However, the Council will have some influence as the local commun~ ity will have a better grasp than people living in Denver. ~egu±ar Meeting Aspen City Council April 23, 1979 Bob Grueter, representing Fresh Air Cab Company, told Council he had spent years practising ~ before the PUC and it does carry weight when a governing body recommends an application. Grueter said he felt it would be unfair to recommend one applicant over another. The applications are a little different, but they are both filed and ready for hearing. Councilman Behrendt asked Council if they wished to endorse any or all applioations and to send this on to the PUC. Councilwoman Anderson pointed out two weeks ago Council endorsed the idea of competition, and then Hy-Mountain as there were no other applicants present. Councilwoman Anderson asked how Hy-Mountain answers the allegations that the two applications are dissimilar and how does the application differ from Fresh Air Cab Company. Fred Kamm, one of the officers in Hy-Mountain, told Council that Gilmore had neglected to point out Mellow Yellow had added an additional letter of authority for charter service which gives them the right to carry a maximum of 15 people. Kamm stated the scope of where they wanted the authority to go is identical to Mellow Yellow's and the applications are almost identical. As far as Fresh Air, Kamm told Council this did not come up in the last two weeks; but their application was filed on January 9. Kamm said the application before the PUC for Fresh Air is in the name of Suzanne Reznick, not Tim Selby. Kamm told Council that Fresh Air's application was intended to be for local taxi service, Aspen and Snowmass, limited to 30 miles. Kamm told Council the license was supposed to be sold, 49 per cent of it, to Mellow Yellow drivers and Reznick would maintain 51 per cent. Kamm said this application was not taken to Council or the Commissioners for endorsement. The application has been transferred to Tim Selby. Kamm said he felt this application would have to be refiled with the PUC. Kamm said if this is not a ploy, not a division of Mellow Yellow, he would not object to the application. Kamm said he felt Council was being asked to support an application that does not exist. Councilman Van Ness said the real question is is the City Council qualified tO endorse one particular application to the exclusion of another. Councilman Van Ness said he had no ideas of plans for maintenance facilities, what studies show on the competitive situation. Council is not qualified to make a determination that this application is clearly merited; that is the job of the PUC. On the other hand, Council can say they feel competition is good. Kamm told Council~a lot of support they have generated has been because of the Aspen-Denver, Aspen-Grand Junction problems. Kamm told Council if they see a need for increased service from Aspen's airport out of town and into town, endorse the concept of a second taxi company fully licensed to do that. Councilman Behrendt said he felt Council's charge is to try to improve things, and anything that opens the taxi situation up is an improvement. Councilman Behrendt s&id they should include Fresh Air, the more licenses there are, the more possibilities there are people i will genuinely compete. Councilman Wishart said he would like to change Council's recom-' mendation to the City Manager to recommend to the PUC Council sees the need for competition in the area, but not support any company over another. Councilwoman Anderson agreed. Councilman Isaac agreed but reserved the right that if another taxi war is started, they ought to all be thrown out. Stock told Council he could amend Resolution 910, Series of 1979, to include both Hy-Mountain Transportation and Fresh Air Cab Company~ Councilman Wish~rt moved to adopt Resolution #10, Series of 1979, as amended; seconded by Councilman Isaac. Council decided to include languauge referring to service to Denver and to Grand Junction. Councilman Wishart included this amendment in his motion; Councilman Isaac seconded. All in favor, motion carried. Councilman Behrendt asked Stock to draft an ordinance concerning taxi cabs operating withi~ the City to have an operating meter. Mahoney said he would like to look at that recommenda, tion along with licensing of drivers, regulations of cabs within the City limits more than~i the City currently has. ~ Intent to Annex INTENT TO ANNEX SMUGGLER Smuggler Councilman Isaac moved to authorize Mayor Standley to sign the petition to annex; seconded by Councilman Parry. All in favor, motion carried. Councilman Isaac moved to adopt Resolution #11, Series of 1979, and publish it four times; seconded by Councilman Behrendt. All in favor, motion carried. ORDINANCE ~26, SERIES OF 1979 - Smuggler Enclave Annexation Councilman Isaac moved to add Ordinance 926, Series of 1979, to the agenda; seconded by Councilwoman Anderson. All in favor, motion carried. Councilman Van Ness moved to read Ordinance 926, Series of 1979; seconded by Councilwoman Anderson. All in favor, motion carried. ORDINANCE ~26 i(Series of 1979) AN ORDINANCE ANNEXING CERTAIN UNINCORPORATED TERRITORY TO THE CITY OF ASPEN, COLORADO was read by the city clerk Councilman Parry moved to table Ordinance #26, Series of 1979; seconded by Councilwoman i i Anderson. All in favor, motion carried. ORDINANCE 928, SERIES OF 1979 - Ratifying Lease/Word Processor Ratifying Lease/ Word Processor Councilman Behrendt moved to read Ordinance 928, Series of 1979; seconded by Councilman Van Ness. All in favor, motion carried. 2630 Regular Meeting Aspen City Council April 23, 1979 ORDINANCE #28 (Series of 1979) AN ORDINANCE APPROVING THE TERMS AND CONDITIONS OF AN EQUIPMENT LEASE BETWEEN THE CITY OF ASPEN AND THE FIRST NATIONAL BANK Was read by the city clerk Councilman Isaac moved to adopt on first reading Ordinance #28, Series of 1979; seconded by Councilwoman Anderson. Roll call vote; Councilmembers Van Ness, aye; Anderson, aye; Isaac, aye; Parry, aye; Behrendt, aye; Wishart, aye; Mayor Standley, aye. Motion carried. Councilwoman Anderson moved to adjourn at 8:50 p.m. ;seconded by Councilman Wishart. All in favor, motion carried. ' Kathryn ~' Koch, City Clerk