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HomeMy WebLinkAboutminutes.council.19871209Continued Meeting Aspen City Council December 9, 1987 Mayor Stirling called the meeting to order at 5:00 p.m. with Councilmembers Fallin, Gassman, Tuite and Isaac present. City Attorney Taddune reported that the courts have decided in the Kona Post case which is a complete victory for the city and county for the charges asserted against the city and county. Taddune said the county should be commended for hanging in there. Taddune told Council the city's counterclaim f or $2,500,000 has not been dismissed by the court. Taddune said because this is a civil rights action, the prevailing side is entitled to submit an application for attorney's fees. Taddune said there will probably be an appeal. The city's counterclaim will be influen- tial on whether the appeal is pursued. Taddune said the case was decided primarily on the statute of limitations. The judge ruled that the six year statute of limitation applied and the most recent action was filed beyond the six year statute of limita- tion. Taddune told Council the judge made some observations on the Colorado statutes pertaining to authorities of cities in planning matters and more or less blessed the fact that cities and counties have the ability to plan in conjunction with each other. Taddune told Council about $200,000 has been spent on behalf of the city in attorneys fees. Taddune said generally plaintiffs who prevail in these type of cases are entitled to attorneys fees and defendants are not. 1988 BUDGET Mayor Stirling said the issues are capital improvements, the 1988 budget and setting the mill levy f or 1988. Councilwoman Fallin asked how high the mill levy can go without going to an election. Cindy Shafer, finance director, said for 1987 there were some special rules. Ms. Shafer said, generally, a 5.5 percent increase can be added without going to an election but this did not apply where capital improvements were involved. Also, there were ways to go more than 5.5 percent if a city met certain public notice requirements. Ms. Shafer said the 5.5 percent is on gross revenues and one mill will generate about $170,000. The city is reducing the other mill levy besides the serial tax levy voted on yesterday. Ms. Shafer told Council the 5.5 percent applies to the revenue on the mill levy, not the mill levy itself, and it only applies to that portion that is not used f or capital improvement or to retire general obligation debts, and only about half the city's mill levy is subject to that 5.5 percent. Councilwoman Fallin asked if with annexation the city will generate more revenue from the mill levy. Ms. Shafer said in the projections for the revenue, the city included those area which have been annexed in 1987. Ms. Shafer told Council the city's mill levy will be 1.7 without the serial tax. The serial tax 1 Continued Meeting Aspen City Council December 9, 1987 levy will be .7. Ms. Shafer told Council the city's mill levy is about 5 percent of the entire mill levies. Ms. Shafer presented proposed capital improvement projects for the next 5 years. Councilwoman Fallin asked where the proposed airport business center water district would begin. Jay Hammond, city engineer, said it would probably begin at the Owl Creek road and loop to the west. Assistant City Manager Mitchell told Council neither district has been initiated. They were included on the capital improvement list because the water department feels these are two major areas of concern. The city would only institute the programs if the property owners requested it. Mayor Stirling pointed out the $125,000 for the Galena Street improvement district is a wash because it comes out of the street serial levy revenues. Mayor Stirling said what was tentatively approved is the parking garage at $50,000, the ice rink for $50,000, and $200,000 for snow storage solution. Mayor Stirling said the monies for the snow storage solution is about twice what the city will end u p needing. City Manager Bob Anderson said if the city uses a snow melt solution, the capital costs will be less than $200,000. Mayor Stirling suggested reducing the snow solution from $200,000 to $100,000 for 1988. This would leave a balance of 5100,000 f or other projects. Mayor Stirling asked what the floodway mitiga- tion project is. Hammond said this is continuing the work in the Aspen One Rio Grande area to widen the flood plain and open the channels. Councilman Isaac asked if this project could come under the snow dump solution. Hammond said it depends on how the snow solution is structured and where it would be located. Mayor Stirling said the only money the city knows they can count on f or 1988 is 5250,000 from the electric fund. The city cannot count on any monies from sale of the Red Roof. Mayor Stirling suggested Council set a limit of 5250,000 and decide which projects are the most important. Mayor Stirling suggested reducing the snow solution to 5100,000 and do the work on the Moore Pool in 1988. Bill Ef ting, leisure services director, said that money is to renovate the locker room and some other improve- ment s. Mayor Stirling moved to utilize the 5250,000 from the electric fund for the f ollowing projects; 550,000 parking garage, 550,000 for the ice garden, 5100,000 snow solution, and 525,000 for the Moore Pool; seconded by Councilwoman Fallin. Anderson suggested the snow solution be left at 5125,000 because staff does not know what the solution is going to be. Anderson said if site work is necessary, this may cost more money. Councilman Isaac suggested leaving the snow solution at 5200,000 2 Continued Meeting Aspen City Council December 9, 1987 and have the parking garage and ice garden at a total of $50,000. Councilman Isaac said these are both planning and pre-engineering studies. Councilman Isaac said these will have to go to a vote of the electorate and a lot of work can be done in house. Mitchell said preliminary estimates on the parking garage work is $35,000. Efting said the $50,000 work for the ice garden is planning work and getting it to the point if the vote were approved, construction could begin in 1989. Ef ting said this may be able to be done f or $30,000. Councilman Gassman agreed with $50,000 for both the ice garden and parking structure. Mayor Stirling said he would agree to 525,000 for the Moore pool, 550,000 for both the parking structure and ice garden and 5125,000 for the snow solution, for a total of 5200,000. Councilman Gassman said he does not want to eliminate the trails expenditure completely. This is a continuing project that the city has already spent a lot of time and money on. Mitchell said if the city wants to complete the Shadow mountain trail, the city will have to condemn 4 or 5 parcels. Councilman Gassman said he is interesting in continuing the work. Councilman Isaac said a lot of work has been done on the Moore pool, and the department is recommending this be put off another year. Efting said one reason he budgeted this for 1989 is that he knew what kind of revenues of the city is looking at. Anderson pointed out the Moore pool is a very visible city facility and it would be nice to finish it up. Councilwoman Fallin asked if the trails work has to come from this fund and what is available in the land fund. Ms. Shafer said this revenue projection is city-wide. Ms. Shafer pointed out if the Red Roof does not sell, the 5250,000 from the electric fund is the only revenue the Council has. Ms. Shafer said there is no money in the land fund because of the Zoline property purchase and other purchases. The city has had some large balloon payments in the last f ew years. Ms. Shafer told Council there is over $1,500,000 in debt every year in the land fund. Councilman Isaac said he would like to hold off on trails acquisition until the Red Roof is sold. Mayor Stirling withdrew his motion. Councilwoman Fallin agreed that the trails work is a city priority. Councilwoman Fallin asked if the city is near a purchase in the Shadow Mountain area. Mitchell said the city is doing a survey in that area currently and will be sending out letters to the property owners the first of 1988 after getting an appraisal on the cost of the estimates and offering to buy the trail easements. Mitchell said if the property owners do not want to sell their property, this will be brought back to Council. Councilwoman Fallin asked if 5125,000 is high. 3 Continued Meeting Aspen City Council December 9, 1987 Mitchell said the last time the city had an appraisal done, it looked to be $70,000 to $100,000 if the city has to buy all the easements. Councilwoman Fallin said she feels the snow solution should be a number 1 priority. Mayor Stirling moved in 1988 to contribution $75,000 to the trails; $50,000 to the ice garden and parking structure and $125,000 to the snow solution for a total of $250,000; seconded by Councilman Gassman. Ms . Shafer asked f or clarification on the 550, 000 for the ice garden and parking structure. Mayor Stirling said it is to be $25,000 for each. Mayor Stirling said he does not like leaving the pool out but agrees on the need for the trail work. Council- man Tuite said the pool work would not be done until the spring anyway, and the city will know where the revenues are and how the year end close is. Councilman Tuite said Council should keep their intention that they want the year end surplus f or capital projects. Mayor Stirling clarified his motion that ice garden is 525,000 and parking structure is 525,000. All in favor, with th e exception of Councilman Isaac. Motion carried. Mayor Stirling moved as the first priority if there is surplus through the 1987 final budget work that the James E. Moore pool be the first priority; seconded by Councilwoman Fallin. All in favor, motion carried. Councilman Tuite said if the city has a 5100,000 surplus, he would like to see it allocated right now. The city is sparse in capital improvements and there is a long list of improvements. Ms. Shafer told Council the long range plans are updated quarterly and the updates will not be much off, maybe $50,000 in all the funds, except for RETT which is further along than projected. Ms. Shafer told Council they can shift the RETT by changing the amount that is paid tow ard the debt f or the land fund. Ms. Shafer explained that the more the RETT pays for the debts for the Wheeler Opera House, th e less the land f and has to pay. Mayor Stirling pointed out the Council has already obliga- ted some of this fund for a project. Ms. Shafer said staff' s current projection is the revenues can cover that project and pay the general fund for a certain amount of the expense allocation, which has not been done in the past, and still be ahead of the projections. Mayor Stirling said the RETT will probably be over $550,000 for 1987. Councilman Tuite moved that any additional surpluses over and above projected budget f or the calendar year 1987 be addressed for 1987; seconded by Councilman Isaac. 4 Continued Meeting Aspen City Council December 9, 1987 Ms. Shafer pointed out that sales tax will probably be $100,000 over budget . That has already been projected but the budget has not been changed to reflect it. Ms. Shafer said this motion should be based on the final adjustments to the budget, which will be made with final reading of Ordinance #60 on December 14th. Councilman Isaac said he would like to see any excesses fully fund the items proposed to be funded, like snow dump, ice garden and parking structure. Mayor Stirling said the idea is that the surplus will go to capital improvements. All in favor, motion carried. Councilwoman Fallin moved that whatever surplus there is in the RETT goes to pay the debt on the Wheeler to relieve the land fund; seconded by Councilman Gassman. Ms. Shafer requested Council consider funding part of this money toward the expense allocation, which is currently subsidized by the general f und. This is about $130,000 annually and it would be helpful to have one-quarter to one-half of that go back to the general fund. Councilwoman Fallin said her purpose of the motion is to try and build the land fund back up. Councilwoman Fallin asked how much of the land fund annually goes to pay the Wheeler debt. Ms. Shafer answered approximately 5300,000 Councilman Gassman suggested if Council wants to reduce the general fund subsidy from the Wheeler, Council should look at doing it from the Wheeler rather than from the RETT. All in favor, motion carried. City Manager Bob Anderson asked Council to set a date to look at the space for city hall. It will cost about 5150,000 to maintain city hall. Anderson said the current thinking is to find alternative space and to abandon city hall down to the f i r st floor. Ms. Shafer pointed out in Resolution #31 there will be changes out of the electric fund of $250,000 and the other resulting changes. Mayor Stirling opened the public hearing. There were no com- ments. Mayor Stirling closed the public hearing. Councilman Gassman moved to adopt Resolution #31, Series of 1987, as amended; seconded by Councilman Isaac. Anderson brought up the request from the county to go half on the budget for another zoning enforcement officer. Anderson said the entire county board wants to see stronger zoning enforcement and 5 Continued Meeting Aspen City Council December 9, 1987 would like to see another person added to the building de part- ment. Anderson said the minority view is that the building department is not up to staff currently a nd there are going to be some changes to align this with the planning department. Anderson said he feels it may be better to wait until these things happen before adding manpower. Anderson said the majority of the Commissioners stil l felt it was urgent enough to add another person. Councilwoman Fallin said she would rather fill the empty position and do the reorganization and wait six months to see if the problem s are alleviated. Councilman Gassman agreed. Council- woman Fallin said if the city is going to impose condition s on development, they do need enforcement. Council did not want to add another person to the 1988 budget. Anderson said that the chief of police is leaving the city's employ. Anderson told Council it is his intention to promote from within, if feasible, and not to add any staff at the bottom. Anderson said he will discuss reorganization and consolidation with the county. Anderson said he does not consider the fact that money is budgeted a mandate to spend it. Councilman Tuite asked if the city has a policy not to transfer from line items within depart- ments. Ms. Shafer said there are 3 areas that staff cannot transfer money between; payroll, fixed assets and everything else. Ms. Shafer said in order to transfer money from payroll to another area, a department has to have the city manager's approval. Anderson said eh cannot transf er monies from depart- ment to department without Council's approval. Councilman Isaac said in light of yesterday's election regarding the street serial tax levy, the Council needs to look at giving general revenue funds for non-profit and arts groups in the future as the needs of the streets become greater and greater. Councilman Isaac said he does not want to make the extra $50,000 given this year into an annual expectation. Councilman Tuite said as the city continues to annex, the city has to talk to the county about the distribution of the sales tax All in favor, motion carried. Mayor Stirling said Resolution #32, Series of 1987, adopts the mill levy of 2.404 for 1988. Councilman Isaac moved to adopt Resolution #32, Series of 1987; seconded by Councilwoman Fallin. All in favor, motion carried. Mayor Stirling requested a meeting with before he leaves the employ of the city to police department. Council scheduled this 1988. Council said they would discuss th the study session December 15th at 7 p.m. the chief of police share ideas about the meeting for January 6 , e city hall plan after 6 Continued Meeting Aspen City Council December 9, 1987 Councilwoman Fallin moved to adjourn at 6:25 p. m.; seconded by Councilman Isaac. All in favor, motion carried. JCL Kathryn Koch, City Clerk 7