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HomeMy WebLinkAboutminutes.council.19871221Regular Meeting Aspen City Council December 21, 1987 DONATION OF SCULPTURE 3 SUBDIVISION EXCEPTION - Two Hares 4 SUBDIVISION EXCEPTION - Torpen . 4 SUBDIVISION EXCEPTION - Woods Hall 6 EMPLOYEE BENEFIT - Sick Leave Bank 6 SUBSTANCE ABUSE POLICY 7 LIQUOR LICENSE TRANSFER - Andre's 7 ARA REQUEST FOR DISPLAY OF CARS IN MALL 7 SUBARU ASPEN WINTERNATIONAL PERMITS 8 LIQUOR LICENSE TRANSFER - Down Under Australian Bistro 9 ORDINANCE #65, SERIES OF 1987 - Non-Conformities 10 ORDINANCE #66, SERIES OF 1987 - Lease/Purchase Agreement 11 ORDINANCE #64, SERIES OF 1987 - Workers' Comp Self Insurance 11 ORDINANCE #67, SERIES OF 1987 - Modification of Lease Agreement Roaring Fork Land & Cattle Company 12 LETTER OF INTENT - Brush Creek Hydropower Project 13 REQUEST FOR FUNDS - GRIP 14 15 Regular Meeting Aspen City Council December 21, 1987 Mayor Stirling called the meeting to order at 5:15 p.m. with Councilmembers Gassman and Isaac present. CITIZEN COMMENTS There were no comments COUNCILMEMBER COMMENTS 1. Councilman Gassman said he has had second thoughts about the RFTA budget. Council approved it very quickly. Councilman Gassman said the community at large is spending a lot of money on transportation, and he has serious doubts about what the com- munity is getting. Councilman Gassman said RFTA as an agency went from enthusiasm and creativity when it was started to a moribund phase very fast. Councilman Gassman moved to reconsider the RFTA budget at the January 11, 1988 meeting; seconded by Mayor Stirling. Councilman Isaac said at the last meeting Council indicated they wanted to discuss the RFTA budget more, which should be done. Councilman Isaac said the budget had to be approved before the end of 1987 because of state law. Councilman Isaac said he would like to discuss it more than 20 minutes during a Council meeting. Mayor Stirling pointed out there are only 3 pure city routes; all the rest of the routes are suburban, down valley or subcontracted through the Skiing Company. Mayor Stirling said the city is giving almost $1,000,000 to RFTA and there are only 3 routes serving the city. Mayor Stirling said he was stunned that RFTA could turn down $58,000 for a downtown shuttle which would serve the city in a pure way as well discover if a shuttle might relive some of the circulation and parking problems downtown. Mayor Stirling said Aspen is one of the few resorts that does not have an airport shuttle, which may have something to do with taxis fares. All in f av or, with the exception of Councilman Isaac. Motion carried. 2. Councilman Isaac asked if Council would be interested in discussing prohibiting "booting" of cars in town or some controls over it. Councilman Isaac said he has talked to the city attorney's office and they will get some information on what is being done in other communities. Council agreed to put this on the January 11, 1988, agenda. 3. Mayor Stirling said he would like to bring up an airport shuttle with RFTA. Mayor Stirling said he has talked with owners of the taxi companies. Mayor Stirling noted Councils have 1 Regular Meeting Aspen Citv Council December 21. 1987 discussed cleanliness, safety and courtesy over the years but never cost. Mellow Yellow charges $1.50 per mile and High Mountain just received permission to charge $1.80 per mile. Mayor Stirling said Key West taxis charge $1.50 per mile, Daytona Beach 51.20, Myrtle Beach 51.25, Honolulu $1.40, Atlantic City 51.35, Las Vegas 51.70. Mayor Stirling said in Denver there are 3 cab companies with 1,000 cabs; one cab for every 10,000 persons. Aspen has about 100 cabs, and using permanent popula- tion that is one cab for every 50 people. 4. Mayor Stirling said in the city manager's comments, it is suggested that Hadid Aspen Holdings hire an architect to work for the city. Mayor Stirling stated he has difficulties with this. Mayor Stirling said the concept is a good concept, but if the city thinks they need that service and the assistance of an architect, the city will be second guessed if the developer applicant pays for this service. Mayor Stirling moved to allocate 51500 out of the 1988 con- tingency fund and give Alan Richman the discretion to hire whomever he needs for this service; seconded by Councilman Gassman. Alan Richman, planning director, told Council it is very common when working with large complex projects that a community may need assistance they do not have on the staff. Very frequently communities place a condition on applicants not only to prepare studies, like traffic studies, but that they hire an independent consultant to work for the city to review that study. Richman said he would appreciate the assistance in this project and will do his best to keep the expenditure below 51500. Councilman Isaac pointed out the city's policy has always been that develop- ers will pay their costs of review and development. Councilman Isaac said to put this as a taxpayer cost is not fair and is a change in philosophy. Councilman Isaac said this is a very large project and the review will cost more than for most projects. Councilman Gassman asked if this project will need any other consultants. Richman told Council most of the parameters of the project are not changing. Architecture is an area the P & Z has to review and score, and is it the area where the most change is occurring. Councilman Gassman said if this is a limited review, he can see the city paying for it. Mayor Stirling said he is concerned about the city retaining a very independent stance in this project, and if the developer is paying for an architect to help review his plan, is raises the possibility of lack of objectivity. Bil Dunaway pointed out almost every city makes the developer pay for consultants but the city hires the consultants. Mayor Stirling said if the money is coming from the developer, 2 Regular Meeting Aspen City Council December 21, 1987 someone could interpret that the city did not have enough objec- tivity in the project. All in favor, with the exception of Councilman Isaac. Motion carried. 5. Mayor Stirling said this building has been the city hall since 1945, and as bad as the condition of this building it, it is city hall. Mayor Stirling said the city manager is proposing hiring an architect to deal with community center using f and s from the city hall renovation. Mayor Stirling said he would like to hear all the issues, rent, moving, etc. City Manager Bob Anderson said he wanted Council to know he is getting quotes on this architecture work and then will bring it back to Council for a decision. Jay Hammond, city engineer, told Council he has talked to the architect about a range of costs, broken down into several categories including overseeing the construction, detailed engineering, mechanical systems in the community center. The total package, including interior work, selection of modular furniture was about $22,000 for architecture fees. rTayor Stirling said if the fees are that high, this work should be bid. Mayor Stirling said he would like to see that number factored in with the rest of the work. Councilman Gassman pointed out that figure is one-quarter of the cost to fix city hall. Anderson noted there would also be architectural fees to fix up city hall. Councilman Isaac asked how much of this the county will be paying for. Anderson said who pays for what will be factored into the process. Anderson said it will be easier for one entity or the other to pay for this part and then factor it into the entire cost. Mayor Stirling said he is concerned the city will start paying more than anticipated. DONATION OF SCULPTURE Bill Efting, leisure services director, told Council the city has been offered to sculpture by Jean Eymere. Efting said he has looked at spaces in Rubey Park and the mall. Efting said one possible location is along the trail to the post office. Efting said RFTA has problems with locating an 8 foot sculpture in Rubey Park. Efting said he has some problems with the mall because of the use and snow removal. Mayor Stirling moved that the city graciously and enthusiastically accept the sculpture but to leave it up to Efting in concert with the museum staff to figure out a location; seconded by Councilman Isaac. All in favor, motion carried. 3 Regular Meeting Aspen City Council December 21, 1987 SUBDIVISION EXCEPTION - Two Hares Cindy Houben, planning office, said this is a request to con- dominiumize a duplex located in the R-15 zone on Snowbunny Lane. The applicant proposes to condominiumize for the purpose of selling the units separately. The referral comments from the engineering department request additional information on the plat as well as request that the applicant join in any improvement districts for the area. Ms. Houben said Council has the ability to grant exception from full subdivision as staff does not feel it is necessary to go through the full subdivision process. The applicant has adequately addressed all the criteria for condo- miniumization. Ms. Houben said staff supports this request with one exception. The applicant requests the Council waive the six month minimum lease restriction. Ms. Houben said staff disagrees because it is felt in some areas it is appropriate to have the six month rental restrictions waived but in the more residential districts it is appropriate to maintain long term situation for housing. Ms. Houben said this is located in a long term, primary residential area. Allowing short term in this area is inappropriate because of the impacts, like traffic, parking and noise. Councilman Isaac moved to grant purpose of condominiumization two conditions outlined in the seconded by Councilman Gassman. subdivision exception for the for 1250 Snowbunny Lane with the memorandum from Cindy Houben; All in favor, motion carried. SUBDIVISION EXCEPTION - Torpen Steve Burstein, planning office, said this is a request for condominiumization of a duplex located at the end of East Hopkins in the RMF zone district. The engineering department has commented that the plat needs to be updated and that the applicant should join any special improvement district that is formed in the area. Burstein said this request meets the code requirements regarding tenant displacement and reduction of low and moderate income housing. This has been a vacant lot for some time. Burstein said the applicants are requesting the six month minimum lease restrictions be waived. Burstein said it is not clear cut that this area is a long term residential area. Burstein told Council staff looked at the immediate vicinity and concluded there is a mix of long and short term; however, the area is predominantly long term. Burstein included a map in Council's packet identifying single family and multi-family structures. This project is fairly removed from downtown and is 4 Regular Meetina__ Aspen City Council December 21, 1987 not a tourist-oriented neighborhood. Burstein recommended that the six month minimum lease be applied to this approval. Gray Young, representing the applicant, told Council the plat has been modified to meet with the engineer's standards. The applicant has no problem with joining any special improvement district. The waiver of the six month minimum lease is a problem with the applicant. Young agreed this is a mixed area with short and long term rentals. Young stated there are substantial number of short term units in the area. The Riverview condominiums surround this duplex and have 12 short term units out of 27 units. Gavilon has 1 short term unit; Queen Victoria has 2 short term units; East Hopkins has 5 units short term; Original Curve has a couple of short term units. Young said within a couple of blocks there are 87 short term units available. This request is for only 2 units to be short term. The Endeavor Lodge, which is being run as a lodge, is only one block away. Young told Council the proposed guidelines indicate Council is to consider lodges in the area and what predominantly is in the immediate vicinity that is available for short term use. Young said is duplex is different from a 30 unit complex, and it appropriate that Council waive the six month restrictions. Councilman Isaac said the other application was clearly a residential area and this one is mixed. Councilman Isaac said he does not want to see this neighborhood slowly eroded until it is all short term. This forces people down valley. Mayor Stirling said he does not feel these projects force people down valley. Mayor Stirling said this duplex is on a previously vacant lot. Mayor Stirling said what Council needs to do is amend the code to get a contribution to employee housing when someone tears a building down. Alan Richman, planning director, said that code amendment has been prepared at Council's direction and will be before P & Z soon. Mayor Stirling said this neighborhood is going to be radically changed. Mayor Stirling said since 1977 every new project that has gone in in this area has had a six month rental restriction. Mayor Stirling said this is a mixed neighborhood and is changing. If Council deals with the code amendment to protect employee housing, they ought to waive the six month minimum restrictions for this project. Mayor Stirling moved to grant subdivision exception for the purposes of condominiumization of the Torpen condominium at 1018 East Hopkins subject to joining a special improvement district, not subject to the six month minimum lease and filing a plat. Motion DIES for lack of a second. Councilman Isaac moved to grant subdivision exception for the purpose of condominiumization for the Torpen Condominium at 1018 East Hopkins subject to the conditions in the planning office 5 Regular Meeting AsAen Citv Council _ December 21, 1987 memorandum including the six month minimum lease; seconded by Councilman Gassman. Councilman Gassman said although this is a mixed neighborhood, the general felling and character is primarily long term residen- tial. Councilman Gassman agreed this neighborhood is going to be under pressure in the coming months and Council should take whatever steps possible to preserve this residential neighbor- hood. Mayor Stirling said the purpose of the six month lease restrictions are to retain a residential character and to make housing potentially available for local people. Mayor Stirling said these units are over half million dollars each and would not be employee housing. All in favor, with the exception of Mayor Stirling. Motion carried. SUBDIVISION EXCEPTION - Woods Hall Mayor Stirling moved to table this to January 11, 1988; seconded by Councilman Isaac. All in favor, motion carried. EMPLOYEE BENEFIT - Sick Leave Bank City Manager Bob Anderson told Council the city had a situation where an employee was involved in a serious accident and has been gone from work for a long time. This employee has used up her sick leave and vacation time. Anderson told Council a number of employees have asked if the city had a system where they could donate some sick leave time to this person's use. Anderson told Council this is done in some companies; however, the city does not have a policy to allow this. Anderson said staff has done some investigation, including a survey to employees. Anderson said the employees were in favor of this. Anderson told Council there are lots of problems with this approach. Anderson told Council he feels disability insurance should be explored before this approach goes any farther. Anderson said he has no objections to employees donating their time to Elyse Elliott on a one-time, voluntary basis. Councilman Isaac moved that the city manager oversee the sick leave pool for Elyse Elliott and set it up as described; seconded by Councilman Gassman. Mayor Stirling said he disagrees with a sick leave policy that allows people to build up a number of days. Mayor Stirling said he favors a "use it or lose it" policy. Mayor Stirling said this brings sick people to work and allows people to cash in on something. Mayor Stirling said he would like to talk about this 6 Regular Meeting ___Aspen City Council December 21, 1987 overall policy with Council sometime. Anderson said he f avors sick leave and a disability program. Anderson told Council this is a typical governmental program. Anderson said he will start the discussion in-house with an employee group. All in favor, motion carried. SUBSTANCE ABUSE POLICY Mayor Stirling moved to table this to January 25, 1987; seconded by Councilman Isaac. City Manager Bob Anderson said he would like to take this policy to the county and have them look at it also. All in favor, motion carried. LI UOR LICENSE TRANSFER - Andre's Councilman Isaac moved to approve the transfer of Andre's liquor license to Caspian corporation; seconded by Councilman Gassman. Ebe Saghatoslami said he plans to keeps the business as a restaurant and night club. Ebe told Council he will keep the menu the same through the winter season. All in favor, motion carried. ARA RE UEST FOR DISPLAY OF CARS IN MALL Michael Forbes, ARA, told Council this is the 37th Winterskol, and to keep a large, 5-day event going, they had to get sponsors. Forbes told Council it costs a lot of money to put on some of the event. Ford has agreed to be one of the sponsors. Forbes said Winterskol used to be a local event and has turned into a marketing tool for Aspen and brings business into town in a traditionally slow period of town. Ford would like to be able to publicize their cars. Ford will do a drawing to give away a Ford Taurus for a year. Ford will make a major donation to a local charity. Ford would like to put two cars in the mall January 13 to 17. Forbes told Council he will work with the city on snow removal and maintenance. The cars will be removed at night. Mayor Stirling said it is a good idea to seek sponsors for Winterskol; however, there is a question of whether Council should allow commercial sponsors to use public property. Mayor Stirling said Subaru gives all the prof its f rom the raffle to local charities as well as the car. Councilman Isaac said Ford is giving $7500 to Winterskol, $1,000 to a charity, and use of a Ford car for one year. Mayor Stirling asked about using private 7 Regular Meeting AsAen Citv Council December 21, 1987 property. Forbes said the mall is the highest concentration of traffic, and most of the events go on in town. Councilman Isaac moved to give approval to u se the Cooper and Hyman Avenue malls to display 2 Ford cars over Winterskol and to display 2 cars in Wagner Park Wednesday and Saturday. Motion DIES for lack of a second. Mayor Stirling asked why the mall is not all right and Wagner park is. Bill Efting, leisure services director, told Council he looked at this like other events held in the park. Efting told Council his work with the ARA has always been good, and he does not have a problem using Wagner park. Mayor Stirling said he has difficulties allowing commercial enterprises to have access to public property. Councilman Isaac said last year when Audi wanted to use the mall, Council discussed guidelines like donating proceeds to a local, non-profit organization. Council- man Isaac said it appears Ford has gone out of their way to contribute to the community. Councilman Isaac pointed out Council is not in a position to donate 57500 to Winterskol. Councilman Gassman said this is like saying everything is for sale. Councilman Gassman said the malls contribute to Aspen's character and humanity and it should not be sold. Mayor Stirling said there are a lot of private places in the commercial area to display these cars. SUBARU ASPEN WINTERNATIONAL PERMITS Cindy Griem, Skiing Company, told Council they have a new event this year, Party in the Park, proposed to be held the day after the A La Carte. Ms. Griem told Council they are aware of the problems from last year and are taking precautions to make sure the park is clean and the rules will be followed. Mayor Stirling said last year Diner's Club was a major sponsor, and asked if a restaurant had to take Diner's Club to participate. Debbie Arnold said yes. Councilman Isaac asked if any restaurant could carry Diner's Club. Ms. Arnold said any restaurant can, and Diner's Club is offering a special to this area of 3.2 percent. Dan Arrow told Council although this event competes with his business in a very important week, he would be willing to work with it and make it happen. Arrow pointed out last year Council found out after the event it was exclusionary to businesses that carried Diner's Club. Arrow objected to exclusive use of a public park by Diner's Club as an advertising for their card. Arrow said this is very similar to the previous discussion about Ford. Arrow said this event can happen in a non-exclusive manner and could be fair and a benefit to the entire community. Arrow requested Diner's Club be denied use of the park and that the 8 Regular Meeting Aspen Citv Council December 21, 1987 restaurant association do the event in a fair manner. Arrow said th e majority of the restaurant association is in favor of this event. Bil Dunaway agreed it is wrong to give exclusive use to the park. Ms. Arnold said Diner's Club spent $150,000 on the event last year. Ms. Arnold said this event is not just a promotion of Diner's Club card; it is a benefit to the community and an opportunity to do something the restaurant association ha s not been able to do. The restaurants in Aspen and Snowmass have an opportunity to have a tasting on an equal level. This event is open to the public and not an invitational event. Ms. Arnold said the money from the food coupons goes back to the restaurants to reimburse them for their food costs, the money from the beverages goes to Tipsy Taxi. Any monies beyond that will be turned back into the community. Diner's Club is not making a profit from this event. Ms. Arnold said the event last year was fun and successful. Ms. Arnold said they have a clear under- standing of the problems that occurred last year and are ready to take care of them. Mayor Stirling said he does not favor the A La Carte event; it is a sole sponsorship and very commercial. Councilman Isaac said it was a wonderful event and someone has to sponsor it. Mayor Stirling moved to table this request to January 11, 1988; seconded by Councilman Gassman. All in favor, motion carried. Councilman Gassman said he does not see how public property can be used for an event which excludes some of the people. It is not fair. Ms. Arnold pointed out the people that are excluded are making that choice. LIQUOR LICENSE TRANSFER - Down Under Australian Bistro Tony Knowlson, manager, told Council they will have Australian beer, wine and mineral water. Councilman Isaac said he had a problem with this when Chelsea's Terrace got a beer and wine license. Councilman Isaac said when this building was renovated the second floor was supposed to be non-commercial space because it did not meet the code and did not have any access. Councilman Isaac said this location is not appropriate for a restaurant, and this is perpetuating it. Alan Richman, planning director, told Council he is not familiar with a limitation on second floor use of this building. Mayor Stirling moved to approve the transfer of the liquor license from Chelsea's Terrace to Down Under Australian Bistro; seconded by Councilman Gassman. 9 Regular Meeting Aspen City Council December 21, 1987 Councilman Gassman said the would like to know the history of the restaurant and of the building. Councilman Isaac said he would like to not perpetuate restaurant uses that do not have access. Knowlson said they have purchased the space from Chelsea's and are planning on opening as soon as the space is remodeled. Mayor Stirling said access is an issue to be addressed. Mayor Stirling pointed out there was no access to Cordon's restaurant and they are making access available as part of their Council approval. Rich Luhman said this is not a new application and is currently licensed. Luhman said this issue was not brought up during the applicant's negotiations for purchase of the business. Council- man Gassman said the record is not clear how a restaurant got approved for this space. Mayor Stirling said there has been reliance in this process. Mayor Stirling said there is no land use issue in terms of change in this application. The Council should address this problem but perhaps not for this applicant. Councilman Isaac said Chelsea's Terrace was given permission to put a restaurant in against the code. If Council approves this transfer, that space will always be a restaurant. Councilman Gassman said the question of access is independent of ownership. Councilman Gassman said staff ought to look at the uses originally approved the for building. All in favor, with the exception of Councilman Isaac. Motion carried. Councilman Isaac moved to have the planning office and building department look into the records of the Aspen Grove building to see what the intent of the construction of the second floor was and to look at the permissible use of a second floor restaurant; seconded by Mayor Stirling. All in favor, motion carried. ORDINANCE #65, SERIES OF 1987 - Non-Conformities Mayor Stirling moved to read Ordinance #65, Series of 1987; seconded by Councilman Gassman. All in favor, motion carried. ORDINANCE #65 (Series of 1987) AN ORDINANCE OF THE ASPEN CITY COUNCIL REPEALING AND RE-ENACTING ARTICLE XIII OF THE MUNICIPAL CODE PERTAIN- ING TO NON-CONFORMITIES was read by the city clerk Councilman Isaac moved to adopt Ordinance #65, Series of 1987, on first reading; seconded by Mayor Stirling. Alan Richman, planning director, told Council this ordinance synthesizes an extremely complex regulation in the Code. Richman 10 Regular Meeting Aspen Citv Council December 21, 1987 told Council non-conforming use and non-conforming structure provisions show up in a number of sections of the Code. Richman said there are also policy changes regarding non-conformities. Richman told Council this section has been modelled on the ABA model land development code. Roll call vote; Councilmembers Isaac, yes; Gassman, yes; Mayor Stirling, yes. Motion carried. ORDINANCE #66, SERIES OF 1987 - Lease/Purchase Agreement Mayor Stirling moved to read Ordinance #66, Series of 1987; seconded by Councilman Gassman. All in favor, motion carried. ORDINANCE #62 (Series of 1987) AN ORDINANCE APPROVING THE TERMS AND CONDITIONS OF AN EQUIPMENT LEASE/FURCHASE AGREEMENT BETWEEN THE CITY OF ASPEN, COLORADO, AND SECURITY PACIFIC MERCHANT BANKING GROUP, SETTING FORTH TERMS AND CONDITIONS FOR THE LEASE OF A 1987 CHEVROLET SUBURBAN AND 1988 ETNYRE STREET FLUSHER, WHICH LEASE IS FOR A TERM OF FIVE (5) YEARS AND PROVIDES FOR A QUARTERLY LEASE PAYMENT OF $4,767 AND DIRECTING THE MAYOR TO EXECUTE SAID AGREEMENT ON BEHALF OF THE CITY was read by the city clerk Councilman Isaac moved to adopt Ordinance #66, Series of 1987, on first reading; seconded by Councilman Gassman. City Attorney Taddune told Council the lender has required a insertion to read "the City Council hereby represent s that the reasonably anticipated amount of qualified tax exempt obligations which have been and will be issued by the lessee does not exceed $10,000,000 for the calendar year within which this municipal lease and option agreement is entered, and hereby designates this municipal lease and option agreement to be a 'qualified tax exempt obligation' pursuant to Section 265(b)(3) of the Internal Revenue Code. Taddune told Council this will be a new section 4 in the ordinance. Councilman Isaac amended his motion to adopt the Ordinance as amended with a new section 4; seconded by Councilman Gassman. Roll call vote; Councilmembers Gassman, yes; Isaac, yes; Mayor Stirling, yes. Motion carried. ORDINANCE #64, SERIES OF 1987 - Workers' Comp Self Insurance City Clerk Kathryn Koch told Council staff recommends staying 11 Regular Meeting Aspen City Council December 21, 1987 with state worker's compensation, and not adopting this ordinance. ORDINANCE #67, SERIES OF 1987 - Modification of Lease Agreement Roaring Fork Land & Cattle Company Councilman Gassman moved to read Ordinance #67, Series of 1987; seconded by Councilman Isaac ORDINANCE #67 (Series of 1987 AN ORDINANCE APPROVING THE TERMS AND CONDITIONS OF A MODIFICATION AGREEMENT BETWEEN THE CITY OF ASPEN, COLORADO, AND THE ROARING FORK LAND AND CATTLE COMPANY D/B/A T-LAZY-7 MODIFYING THAT LEASE AGREEMENT DATED AUGUST 7, 1984, SO AS TO ALLOW 85 PERCENT OF THE ESTIMATED $150,000 DIVERSION PIPELINE REPAIR TO BE CHARGED AGAINST THE MAROON CREEK HYDRO PROJECT, DIRECTING TH E MAYOR TO EXECUTE SAID AGREEMENT ON BEHALF OF THE CITY was read by the city clerk Councilman Gassman moved to adopt Ordinance #67, Series of 1987, on first reading; seconded by Councilman Isaac. Jay Hammond, city engineer, said there are a schedule of provis- ions within the existing agreement whereby the net profit from the proposed hydropower project is determined, and T-Lazy-7 shares in that profit based on the use of the land and easements. Hammond told Council the original agreement did not include a provision for repair or upkeep of the raw water flume, which will supply water to the hydro. Hammond said the staff determined there was a reasonable split of those cost, 85 percent to the hydropower project and 15 percent to the city's use of raw water for water treatment. This will modify that agreement to include that expense in calculating the net profit from the project for distribution between the city and Roaring Fork Land & Cattle. Hammond said this is a benefit to the citizens, otherwise the citizens would be paying for it through water rates. Councilman Isaac said he has had problems with the agreement with the Deanes as it gave them a lot of windfall. Councilman Isaac asked if this modification makes the city's position better in recovering their costs. Hammond said it attempts to include all costs associated with the project. Roll call vote; Councilmembers Mayor Stirling yes; Gassman, yes; Isaac, yes. Motion carried. 12 Regular Meetinct Aspen City Council December 21, 1987 LETTER OF INTENT - Brush Creek Hydropower Project Jay Hammond, city engineer, said Bob Kopp is proposing to develop a small hydro plant in the area of Highway 82 and Brush Creek. Kopp has approached the city about purchasing power from this plant. Hammond said the city's initial concerns included costs and difficulties obtaining wheeling agreements for a power source that was so small. Hammond pointed out one element of the letter of intent would be to place it on the Brush Creek Hydro to obtain the wheeling agreements. The other element of the letter of intent is that the city will agree to pay not more than the going rate for power considering the city's sources through MEAN and through Ruedi. Hammond said Brush Creek will determine how much power is produced and will send the city a bill every month. Bob Kopp said this is something they would like to do which is possible on site, is environmental, will not be unsightly. This is a renewable source of energy. Kopp told Council they tested the cfs on Brush Creek for over six months. The average will allow them to build the project and recover their costs. Hammond told Council Ruedi gives the city an average of 40 percent of their power needs; Maroon will give around 20 percent of the city's power needs. This project will give about 1.5 percent of power needs. City Manager Bob Anderson said if the city is paying on an average cost basis, it should be clear the city might be buying this power at more than the cost of the cheapest power they could get at the time. Hammond said the city is looking at buying power from Salt Lake, which is even cheaper than MEAN power. The city may end up where the costs of MEAN power is the average, and this agreement talks about the average cost the city pays to other power suppliers. Anderson said the city may not be buying this power at the lowest costs. Anderson said he favors lowhead hydro power but wanted to point out there may be some price the city is paying for this. Councilman Isaac asked who owns the water rights. Kopp said the Brush Creek hone owners own the rights for hydro power. They have adjudicated 20 cf s on the creek. The irrigation rights are owned by th a ranches but not used much. Hammond told Council this is a good deal for the city and will be a better deal in the future. One of the elements of hydropower is that it is cheaper in the long run than other available sources. Hammond said the power the city receives from Ruedi right now is the most expen- sive power because the city is paying off debt. In the long run, this will become the cheapest power. Anderson said he does not want to be locked into negotiating on the basis of average power. Anderson said he would like to take advantage of the fact that it 13 Regular Meeting Aspen City_Council December 21, 1987 will be cheaper in the future. Anderson recommended a letter of intent but would like the negotiating more open that using the average power costs. Mayor Stirling moved to direct to the city manager and city engineer to put together a letter of intent, not as narrow as the one presented, and come back to Council as soon as possible; seconded by Councilman Gassman. Councilman Isaac said he does not want to be in a position where the city guarantees to purchase this power if they can get power at a lower price somewhere else. Kopp told Council the reservoir will be above ground. The dam will be just below the culvert where the water crosses the highway. It will be a 20 feet reservoir and will be piped underground. Kopp said the a ntire project will be on his property. The storage part could be 8 feet deep, 40 feet wide and 30 feet long. All in favor, motion carried. REQUEST FOR FUNDS - GRIP Councilman Gassman moved to table this item; seconded by Council- man Isaac. All in favor, with the exception of Mayor Stirling. Motion carried. Councilman Gassman moved to approve the consent agenda; seconded by Councilman Isaac. The consent calendar is Colorado Historic Society Grant Contract; Nordic Council Contract; Liquor License Renewal - Home Plate. All in favor, motion carried. Mayor Stirling moved to adjourn at 7:25 p.m.; seconded by Councilman Isaac. All in favor, motion carried. Kathryn Koch, City Clerk 14