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HomeMy WebLinkAboutminutes.council.19880627Regular Meeting Aspen Citv Council June 27, 1988 SCHEDULED PUBLIC APPEARANCES 1 CITIZEN COMMENTS 1 COUNCILMEMBER COMMENTS 2 BOND REFUNDING . 5 CONS ENT AGENDA 6 ORDINANCE #20, SERIES OF 1988 - Fireplaces and Gas Logs 6 ORDINANCE #23, SERIES OF 1988 - Alley Vacation 12 ORDINANCE #25, SERIES OF 1988 - Election Precincts 13 ORDINANCE #16, SERIES OF 1988 - Newspaper Racks 13 SCHEDULED PUBLIC APPEARANCE 14 RESOLUTION #17, SERIES OF 1988 - Election Questions 14 REQUEST TO CONTINUE THE MEETING TO CONSIDER INITIATIVE PETITIONS 19 ORDINANCE #24, SERIES OF 1988 - 1/4 Cent Sales Tax 21 ICE GARDEN REPORT 22 SNOW DUMP REPORT 2 3 WATER RATE PLAN 2 3 SPECIAL EVENT GUIDELINES 25 SUBDIVISION EXCEPTION - Martin 26 SUBDIVISION EXCEPTION - Harmon 26 ENCROACHMENT REQUEST - McDonald 300 West Main 26 GALENA STREET IMPROVEMENTS CONDUIT . 26 JOINT MAINTENANCE FACILITY - City Storage 27 MALL EXTENSION REQUEST - The Grill 27 1989 BUDGET POLICIES 27 29 Regular Meeting Aspen Citv Council -.June 27, 1988 Mayor Stirling called the meeting to order at 5:05 p.m. with Councilmembers Gassman, Tuite, Isaac and Fallin present. SCHEDULED PUBLIC APPEARANCES 1. Mayor Stirling said last week was declared Aspen Sculpture week in light of the opening of the sculpture garden on Hopkins and also the many provocative sculptures being f eatured through- out Aspen. 2. Mayor Stirling said there is a group from Gumma, Japan, touring Aspen which he will introduce later. CITIZEN COMMENTS 1. Bill Shorr, representing the Arts Council, invited Council to arts day. The arts groups have been working together for the past two years as an advocacy under the Arts Council. Shorr said people who are involved in supporting the arts are invited to spend two days with the arts groups. These are July 15 in Snowmass and August 3 in Aspen. Shorr said they will have a tour of Anderson Arts Ranch, the Ballet facilities, and the dance connection, and a performance of the Nerd at the Snowmass Repertory Theatre. 2. Jan Collins, representing Aspen Valley Improvement Associa- tion, reminded Council at the June 20th work session, they presented recommendations as a result of their survey regarding the Aspen Meadows. Ms. Collins read, "As per the recommendations of the Aspen Valley Improvement Association presented to Aspen City Council in a study session June 20, 1988, AVIA hereby requests that the Aspen City Council accept the sentiments expressed in the Aspen Institute property survey regarding the future use of the Aspen Institute property, all 88 acres and that the Aspen City Council initiate immediate action to zone and preserve the entire property, all 88 acres, the academic and Meadows parcels, as it is, a campus, which is consistent with its present cultural and academic use." Ms. Collins told Council they AVIA will be presenting to the city a proposed ordinance. Alan Richman, planning director, told Council if they are interested in pursuing this, the Code is very clear that the first step should be an initiation and then a referral to the staff to refer to the planning commission. Richman said for Council to take a first reading would not be in order according to the newly adopted Code. Mayor Stirling suggested this be placed on the July 11 agenda to see if Council wants to remand this to staff. 1 Regular Meeting Aspen Citv Council June 27, 1988 3. Gideon Kaufman, representing the Aspen Institute, told Council they have concerns about any proposals at the Institute property. Kaufman told Council the effected non-profit groups have been working very hard for past months and have concerns about the rush to accomplish what is in the above statement. Kaufman said he would like an opportunity to make Council aware of what has been going on. Mayor Stirling said this will be an agenda item to determine if Council even wants to remand it to P & Z. Kris Marsh, on behalf of the M.A.A., Physics Institute and Design Conference, said they would be concerned about moving too rapidly to zone this property. Ms. Marsh said they would like all options open on this property. They have been working with th e non-profit groups and the owner of the property to see if something beneficial for all can be accomplished. 4. Linda Evans, 218 North Monarch, told Council they have been experiencing a high traffic and parking impact on their street. Ms. Evans told Council in the past they have had a pedestrian only designation. Ms. Evans said this area is on the historical tour; there are children playing in the neighborhood. Ms. Evans said she feels it would benefit everyone if this was a pedestrian only street. Pat Hodgson, 212 North Monarch, said they were given a promise as a neighborhood when the Jerome was recon- structed that the impact on the neighborhood would be kept at a minimum. Ms. Hodgson said there is a lot of traffic in the summer from the music festival. This is a very dangerous corner. Mayor Stirling asked Jay Hammond, city engineer, to look at this situation and report back to Council as soon as possible. Ms. Hodgson asked that the city enforce the "No Parking Here to Corner" signs in the area. Nels Elder, Bleeker street, told Council people are parking in his driveway or right behind his cars so that he cannot get out. Council asked that staff look at this situation immediately. 5. Masami Shigeta introduced Mr. Hagiwara from Gumma, Japan. Mr. Hagiwara told Council Aspen is very beautiful, the town, the mountains and the heart of the people. COUNCILMEMBER COMMENTS 1. City Manager Bob Anderson told Council there have been complications in the refunding bond issues. Joe Barrows from Kirchner Moore is here to explain. Mayor Stirling moved to add this to the agenda; seconded by Councilman Tuite. All in favor, motion carried. 2. City Manager Bob Anderson told Council he recently attended the CML and CAST meeting in Greeley. It was a good meeting. 2 Regular Meeting Aspen Citv Council June 27. 1988 3. Councilman Gassman said he is concerned about getting a variance from the Sanitation District to put in a septic system at the Marolt House. Councilman Gassman said it has been the policy of the Sanitation District f or years to not permit septic systems within its service area. Councilman Gassman said it seems like the city is asking for something they would not grant to a private individual. Councilman Gassman asked where the money would come from to put in a septic system at the Marolt property. Councilman Gassman said the Council agonizes over a volleyball court but when it comes to developing open space, the money seems readily available Councilman Gassman said to put money into something that is an improper use of open space is wrong. Councilman Gassman said he would like Council to discuss this issue. Councilman Gassman moved to place this on the July 11 agenda; seconded by Councilwoman Fallin. All in favor, motion carried. 4. Councilman Gassman said he is concerned about the barking dog issue outlined in the city manager's memorandum. Councilman Gassman said some citizens have complained to the city about a barking dog next door and feel they have not gotten an adequate response from the city. The city manager had suggested they sign up f or the conflict resolution center. Councilman Gassman said this seems like blaming the victim. Councilman Gassman said there are laws on the books, and this seems to be an enforcement problem. Councilman Gassman said he feels the conflict resolu- tion center is great but questioned if this is the proper response from the city. City Manager Bob Anderson said the city has issued six citations to the dog owners in the last year. The people have gone to court on three citations. Anderson said if the court system does not have a way to resolve this, he was suggesting a way to deal with this not through the courts. Councilman Gassman said he would like the city not to drop the ball if there is something the city can be doing. Anderson said he is of the opinion that the city should do what they can with whatever means they can. The city will continue to give tickets and continue to work through the court system. If that does not work, there are other opportunities to work things out between neighbors. 5. Councilwoman Fallin brought up the irrigation assessment. Staff suggested that people are encouraged to hook their irriga- tion systems into the city ditches. Councilwoman Fallin said she had no idea people could do this. Jay Hammond, city engineer, said the city does not actively encourage use of raw water. There are many ditches that are not controlled by the city. There are ditches in town that the city knows if capacity might be able to contract to use on a lawn. Part of the water manage- ment policy has been to redevelop raw water for use as irrigation 3 Regular Meeting Aspen City Council June 27, 1988 in lieu of using treated water. Hammond said this is not a blanket notification that this water is available. Councilwoman Fallin said if someone has a sprinkler system on an irrigation system, they would be charged; however, there is no charge for someone hooking up their hose. Hammond said there is a hose bed fee associated with the fixture inventory. It is not as high as a permanently installed irrigation system. Councilwoman Fallin said people use more water through a hose than a sprinkler system. Councilwoman Fallin said she would like this addressed in a work session when Council discusses the water rates. 6. Councilwoman Fallin said there are people selling jewelry and tee-shirts in the mall. City Manager Bob Anderson said people are not supposed to be doing this. Tn~hen the staff sees this or someone complains, action is taken. Councilwoman Fallin said people are riding their bicycles on the mall and the sidewalks. Councilwoman Fallin said she would like to see the city step up enforcement. Councilwoman Fallin asked if the police department still has the foot patrol in the mall. Anderson said the police department is short a few people; he will check and report back. 7. Councilwoman Fallin said she would like sign requirement for no smoking in restaurants on the July 11th agenda. Councilwoman Fallin said the city has come down hard on signs, and there is not a problem with people smoking. Councilwoman Fallin said the city should be concentrating on people smoking in restaurants and not the signs. Councilwoman Fallin said she is opposed to businesses having to put up large signs in restaurants. Councilwoman Fallin moved to look at this section of the indoor clean air act ordinance July 11; seconded by Councilman Gassman. All in favor, with the exception of Councilman Isaac. Motion carried. 8. Councilman Isaac said there have been a lot of cars going through the mall, and he would like staff to keep an eye on this. City Manager Bob Anderson said he will check with the police on enforcement in the malls. 9. Councilman Tuite said he has been talking to Walter Ganz, Red Mountain Homeowners Association, who is interested in joining the city's water system. Councilman Tuite said this group has been assessed $500,000 water tap fee, they have been asked to give over their water rights, and the city is requesting an easement. Councilman Tuite said he would like to see the city manager get involved in this negotiation and report back to Council. Councilman Tuite said the city wants people to join the water system, yet is not encouraging people. City Manager Bob Anderson said the root issue is Council policy; is the city 4 Regular Meeting Aspen Cit~__Council June 27. 1988 trying to utilize excess capacity or to stick with the philosophy that every new user pays their share. Council requested the city manager take this as a test case and report back to Council. 10. Mayor Stirling said the law enforcement have been running sirens during the music concerts and asked city manager to go over the concert schedule with the police department. 11. Mayor Stirling told Council he was attending a new housing organization meeting last week and f ound that the meeting was closed. Councilman Tuite said he is a member of this group and was unaware they are closed. Councilman Tuite said he has not had a chance to talk to other members of the board about this but will. 12. Mayor Stirling said Pat O'Bryan, HPC member, has resigned. Mayor Stirling asked the city clerk's office to advertise this vacancy. BOND REFUNDING Joe Barrows, Kirchner Moore, told Council when he was doing work for delivery of the bonds, he came across a problem relating back to the 1983 issue. Barrows told Council the call feature in all the offering documents, except for the bond ordinance and the legal opinion prepared by Sherman and Howard, failed to pick up the 1990 call for two of the maturities. These have a 1993 call. Barrows said the cost to rectify this and pay interest and carrying cost for an additional 3 years significantly changes the savings available to the city through this refunding. Barrows told Council although Kirchner Moore did not prepare the docu- ments, they feel a responsibility for getting this corrected. Barrows said Kirchner Moore is willing to cancel any anticipated compensation, which will equal about $28,000 shy of the original saving anticipated. Barrows said Kirchner Moore is giving up about $117,000. Barrows said trying to reconstruct the original flow of information is very difficult. Barrows told Council he spoke with the head of the bond department at Sherman and Howard. Their feeling was since they were not retained to draft the official statement, they cannot take responsibility for the conflicts. Barrows said the escrow is going into place tomorrow. Barrows recommended the city take advantage of the $260,000 savings they can achieve and get the issue closed. Kirchner Moore will forfeit their profit in order to fund the escrow the full amount. Council agreed they want to go ahead with the bond refunding. Mayor Stirling said he feels it is appropriate that Kirchner Moore picks up these costs. The question is whether the $28,500 should be their responsibility also. Barrows said this issue should be pursued. City Attorney Taddune told Council he has discussed this with Sherman and Howard. Their position is 5 Regular Meeting Aspen City Council June 27, 1988 that their file does not have any instructions from the and er- writer regarding the call. Taddune said their position is that Kirchner Moore prepared the document. Mayor Stirling said he appreciates Kirchner Moore taking responsibility. Mayor Stirling said the city is willing to pay 528,500 but is hoping they will not have to do so. The city will still have significant savings. Councilman Tuite asked if this will be the last time this issue can be refunded. Barrows said it cannot be refunded until the escrow terminates, which is 1993. CONSENT AGENDA Cindy Houben, planning office, requested 925 East Durant final plat be included in the consent agenda. There are no outstanding issues; the applicant has met all the conditions listed in the planning office memorandum. Councilwoman Fallin moved to include 925 East Durant final plat on the consent agenda; seconded byu Councilman Gassman. All in favor, motion carried. Councilman Gassman moved to add the Harmon Group subdivision exception and the mall extension for the Grill to the consent agenda; seconded by Councilman Isaac. All in favor, with the exception of Mayor Stirling. Mayor Stirling said he objects to the mall extension being on the consent agenda. The Harmon Group can go on the consent agenda. Motion carried. Councilman Isaac moved to approve the consent agenda including the two items added above; seconded by Councilman Gassman. The consent agenda is A. Financial Performance Report B. Electric Transformer Easement - Glory Hole C. Liquor License Renewals - Paragon; Eastern D. Special Event Permit - Historical Society; Company E. Liquor License Transfer - Calypso - Shlomo F. Farmer's Market Agreement G. Contract Approval - City Attorney H. Minutes - June 6, 1988 I. Telephone System Upgrade J. 925 East Durant - Final Plat K. Subdivision Exception - Harmon Group All in favor, motion carried. ORDINANCE__#20, SERIES OF 1988 - Fireplaces and Gas Logs Winds Theatre Mayor Stirling said he has received 29 letters and calls; 2 letters are strongly in favor; 9 letters favor varying the 6 Regular Meeting Aspen City Council _June 27, 1988 ordinance, the rest are opposed. Mayor Stirling said this discussion is about PM 10 and not other emissions. Mayor Stirling pointed out this ordinance does not give the city the power to enter homes. Mayor Stirling said the driving motivation of the city is to clean up Aspen's air. The city is receiving pressure from the EPA. Staff has been responding to that pressure. Staff and the Clean Air Advisory Board are putting a plan together and drafting implementing aspects of that plan. Mayor Stirling said the EPA and the state health department have told the city's environmental health department that voluntary programs have never been a success in mitigating these issues. Based on this, staff is pressing for legislation. Mayor Stirling said Aspen has a challenge and has got to respond to it because clean air is essential f or health, for residents and visitors alike. Lee Cassin, environmental health department, told Council Ordinance #20 enacts 3 of the programs the city committed to in thei r local implementation, plan. These are requirements that stoves and fireplaces be registered, that new fireplaces be clean burning, and that existing stoves and fireplaces be converted to clean ones at the end of a certain time period. Ms. Cassin said after this passed on first reading, the Clean Air Board had a public hearing. Based on that hearing and some other work, there were some changes in the ordinance. One of these changes is to broaden the definition of an acceptable device. Ms. Cassin said this ordinance does not contain the provision about requiring upgrade on sale. Ms. Cassin said there have been comments that fireplaces are being made to take the full brunt of the clean up of PM 10. Ms. Cassin said fireplaces and sanding are both included in the local implementation plan. Ms. Cassin pointed out that fireplaces and sanding are roughly equal contributors to PM 10. This is only true if one does not count the caustic nature of the contributions from woodburning. Ms. Cassin reminded Council the only money the city has spent on the PM 10 problem has gone towards a new street sweeper. Ms. Cassin told Council Elam is experimenting with new asphalt-coated sanding material. Ms. Cassin said there are no other indications of ways to solve the sanding problem, other than not sanding at all. Ms. Cassin pointed out that Ordinance #20 deals with the toxic part of PM 10. Ms. Cassin said the staff believes the first 3 sections of Ordinance #20 need to be adopted tonight to keep the problem from getting worse. Section 4 has been modified as a result of the public hearing held by the Clean Air Board. The first 3 sections give people an extra fireplace if it has gas logs, registration of stoves and fireplaces, and the requirement that new fireplaces be clean burning. Upgrade at point of sale is not included in 7 Re ular Meetin As en Cit Council _ June 27. 1988 Ms. Caskey told Council the ordinance has been changed to help the city get to evidence that is more conclusive. Ms. Caskey told Council another theme the CAB heard is that not enough public notice is given of what the environmental health department and CAB are doing. Ms. Caskey said legal notice has been given and they have tried to get as much notice in the press as possible. Ms. Caskey said some of the voluntary program ideas are linked to regulations, like taking wood off balconies. Another major theme is to put off the time needed to convert. Ms. Caskey told Council this amended ordinance #20 allows Council to answer all the concerns. Ms. Caskey told Council a voluntary or educational program, as pursued in the past, will not solve the city's problems. Ms. Caskey said the Council needs to commit to funding to helping a voluntary and educational program. Ms. Caskey told Council that the interest of the community at this point will die down until the 3-1/2 years of up. People do not have the time to think of what should go into a voluntary program. Ms. Caskey said to not pass Ordinance #20 and to have a voluntary program with no funds, will not go past the next burning season. Ms. Caskey said Ordinance #20 should be enacted with its out and also have the community stick together with a commitment toward clean air. Mayo r Stir 1 i ng sa i d he i s not su r e it makes sense to include section 4 in Ordinance #20 because he does not like a law if too little is known about what is being passed or it may have to be remanded, which is implicit in the law. Mayor Stirling said he does not want the vigil to stop. Mayor Stirling moved to adopt Ordinance #20, Section 1, 2, and 3, deleting all of Section 4 Mayor Stirling said the city needs to do something right away. The work that has been done on Section 4 is laudable, but not the outs. Mayor Stirling agreed the data is conclusive and the city has been in violation. Mayor Stirling said what is not known is what percentage is from road dust and what from fireplaces. Mayor Stirling said that is a fundamental issue. Mayor Stirling said he would be interested in an alternative program that would combine voluntary and regulatory. Mayor Stirling said he would suggest a deadline to determine what these programs will be or Section 4 will be brought up again. Mayor Stirling said there was an extensive voluntary program; people's consciousness has been raised. Ms. Caskey reminded Council there is a date by which the EPA will require the city to comply. Ms. Caskey said if the town is not 9 Regular Meeting Aspen City Council June_27, 1988 doing well in a voluntary program, the time will go by. Ms. Caskey said it is more fair to tell people what will happen in 3- 1/2 years and may them prove the community can do without tha t changeover. Mayor Stirling said a voluntary and regulatory program should be before Council on or before September 1, 1988. Council will have to determine how much money they are willing to commit to this. The plan could then be given a year to determine if it could work. There would still be time to enact laws if it is found this combined program will not work. Councilman Tuite said if Council does not adopt a plan which the EPA finds suitable, they will adopt a plan for the city. Ms. Cassin said Council has adopted a local implementation plan, which commits Council to next summer, at the latest, adopting an ordinance after another winter of data, which will give people 3 years to convert. Mayor Stirling said he is proposing a plan to draw the community into assisting the Clean Air Board. Council- woman Fallin said a voluntary program makes sense, but it has to be in writing that something will happen because the city has a deadline imposed on them by the EPA, to meet certain PM 10 standards by a certain date. Mayor Stirling moved to table Ordinance #20, 1988, to July 11 with a direction to staff f or a rewritten section 4 to embrace on or before September 1st, the Clean Air Advisory Board will continue to hold their hearings and come up with a voluntary, educational and regulatory program, with proposals how much it needs to be supported, how it will be implemented, it will run for one year, with language specifying the date by which this has to be evaluated, sometime during the summer of 1989; seconded by Councilwoman Fallin. All in favor, with the exception of Councilmembers Isaac and Tuite. Motion carried. City Manager Bob Anderson told Council the Commissioners have decided if the Council tables this ordinance, the county will also table theirs. Mayor Stirling said something does have to be done now, not 1991. The question is what is to be done. Ms. Caskey told Council the CAB meetings are the second Wednesday of every month at noon in the Council Chambers. Mayor Stirling said he is willing to try something in cooperation with the whole town. Mayor Stirling said it is expensive to convert to gas logs. Mayor Stirling said he would like to see it a point of honor that people begin to do these types of things on their own. Mayor Stirling said this will be the first action item on the July 11 agenda. Councilman Isaac asked if the new section 4 will include a date for conversion of stoves. Councilwoman Fallin said that was her understanding. Ms. Caskey told Council the CAB will not have had another meeting before July 11. Mayor Stirling said he is 10 Regular Meeting Aspen City Council -June 27, 1988 suggesting that the Ordinance be passed on July 11 with an amended section 4 and that the CAB go ahead and have their hearings in July and August and bring Council data by September 1st of how the program is going to be implemented. Councilman Tuite said this is the construction season and getting new fireplaces during this season will not make the problem any better. Mayor Stirling said he is ready to pass the first three sections at this meeting and have an amendment for Section 4 on July 11th. Mayor Stirling moved to reconsider tabling Ordinance #20, Series of 1988; seconded by Councilman Isaac. All in favor, with the exception of Councilwoman Fallin. Motion carried. Mayor Stirling moved to adopt amending it to delete Section 4 3; seconded by Councilman Tuite. Ordinance #20, Series of 1988, and to include Sections 1, 2, and Mayor Stirling opened the public hearing on sections 1, 2, and 3. Ralph Braden told Council he has not been able to put in gas logs because he was told they were illegal in trying to convert his existing fireplace. Council asked staff to look into this problem. Nick Coates said Council ought to include an incentive plan for people to convert, that people can have more than 2 fireplaces if they can get other people to convert. Councilman Tuite said there are people in this community that heat their homes with wood. Councilman Tuite said he would like to see a fund that can be given to people to convert to a certified stove. Councilman Tuite suggested people that one to put in more gas burning fireplaces pay a fee, which goes into a fund that helps to pay for conversions. Councilman Isaac asked about the section that refers to operating in "the open door mode". Ms. Cassin said the issue is whether an insert would be an acceptable alternative. Ms. Cassin said a certified insert takes a great deal of care to operate cleanly. Ms. Cassin said for these devices to be clean, they need to be tested as a fireplace, which means with the doors open. Peggy Stevens said the city is still concentrating on fireplaces. If the city cleaned up the sanding and the dust, the city would comply. Gordon Denton said there is as much confusion in the data regarding fireplaces limit the right of versus dust to make a it a serious concern to build. If the city person who owns property and is going to restrict the rights wants to of these people to have fireplaces, the rights of fireplace should b everyone else who has a e building standards restricted. Si Coleman pointed out that change continuall Thi i y. s s upg rading the 11 Regular Meeting Aspen City Council June__27, 1988 standards. Stan Stevens said 50 percent of the cause of pollu- tion is from dust; some number less than 50 percent is from fire- places. Most of the days the city exceeds the limits are from cars on the road raising dust. Stevens said the city should be able to clean this road dust up. Stevens said temperature inversions are associated with clear days and nights. What is being measured is road dust, not smoke from fireplaces. Stevens said the dust should be a major and first priority to clean up. Mayor Stirling said the city is working on the dust problem. The Clean Air Board can take testimony on the dust problem and give Council ideas. Mayor Stirling said the city has spent $100,000 on sanding and will continue to work on this. Jeffrey Evans said until the city comes up with a lan that with, people will not p People are comfortable Evans told Council he has tried totworkeir registration program. and met with problems. Evans said this latest eo dinancer•Board in proportion to the is not problem and is not in keeping with the wishes of the community. Roll call vote; Councilmembers Gassman, no; Tuite, yes; Isaac, yes; Fallin, no; Mayor Stirling, yes. Motion carried. Mayor Stirling said the Council will entertain a new ordinance related to the directions and suggestions that have been given. ORDINANCE #23, SERIES OF 1988 - Alley Vacation Jay Hammond, city engineer, told Council this is a request for an alley vacation at 1000 East Hopkins. Hammond reminded Council there were requests made at the first reading. There is a memorandum from the planning office indicating the acceptability of the trail alignment. The easement will be wide enough to accommodate the existing trail or a revised trail graded to be wider. Hammond suggested the detailed identification of this easement can be dealt with at the subdivision process. The location of the trail is in general conformance with the trail master plan. Hammond said there was some question of the acceptability of the utility easement. Staff spoke with the sanitation district, who is willing to accept the 20 foot easement centered on the sewer line. Hammond said 5 foot temporary easements will be granted on either side of the permanent easement and there will be no structural improvements within that area. Hammond recommended approval of this vacation, subject to the trail easement, the general utility easement with the additional 10 f eet of construction capability and approval of subsequent subdivision of the project consistent with the representations made in this process. 12 ~~ Regular Meeting Aspen City Council June 27, 1988 Mayor Stirling opened the public hearing. Roberta Allen told Council this vacation would be a benefit to the city because it would allow the developer to push the project back and to have landscaping in the f ront . Ms. Allen told Council she is a partial owner of the property. Mayor Stirling closed the public hearing. Councilman Isaac moved to adopt Ordinance #23, Series of 1988, subject to the 3 conditions and an amendment about the notice; seconded by Councilman Tuite. Councilwoman Fallin said she is opposed to vacations no matter where they are located. The benefit lies with the city retaining the ability to use their alleys. Roll call vote; Councilmembers Fallin, no; Isaac, yes; Tuite, yes; Gassman, no; Mayor Stirling, no. Motion NOT carried. ORDINANCE #25 SERIES OF 1988 - Election Precincts Mayor Stirling opened the public hearing. There were no com- ments. Mayor Stirling closed the public hearing. Councilwoman Fallin stated she does not approve of the city having only one election precinct. The city should have pre- cincts in each of the 5 primary precincts for the convenience of the electors. City Clerk Kathryn Koch reported the Secretary of State does not want the city to use the same precincts as the primary. Councilman Isaac moved to adopt Ordinance #25, Series of 1988; seconded by Councilman Tuite. Roll call vote; Councilmembers Isaac, yes; Gassman, yes; Fallin, yes; Tuite, yes; Mayor Stir- ling, yes. Motion carried. ORDINANCE #16 SERIES OF 1988 - Newspaper Racks Bil Dunaway, Aspen Times, told Council the Supreme Court recently ruled that cities do not have the right to regulate as much as this ordinance contemplates. City Attorney Taddune told Council the finding was that municipalities cannot delegate to an administrator in an imprecise way, the power to determine where newspaper racks should be installed. Taddune told Council he will provide them with a synopsis of the case if they are interested in continuing investigating this ordinance. Mayor Stirling moved to table Ordinance #16, Series of 1988, to 13 Regular Meeting Aspen Citv Counci_1_ June 27. 1988 July 25th; seconded by Councilman Isaac. All in favor, with the exception of Councilwoman Fallin. Motion carried. SCHEDULED PUBLIC APPEARANCE Tara Miller introduced Phillipe and Sylvia from Caquila, Peru, who are weavers visiting Aspen for the summer. Their work will be shown at local arts fairs. RESOLUTION #17, SERIES OF 1988 - Election Questions City Attorney Taddune told Council an initiated ordinance was delivered to the city clerk's office this afternoon. This is for determination of the signatures will allow this to go to an election. Taddune said the first proposed question on the ballot is issuance of bonds for $6,500,000 and authorization of an addi- tional 1/4 cent sales tax. Councilman Isaac moved to include in Resolution #17, the proposed 1/4 penny sales tax to fund a parking facility; seconded by Councilwoman Fallin. City Manager Bob Anderson said the city has discussed adding into the question language to make it possible to fund street and other improvements in connection with the parking structure. Anderson asked if the wording of this question would allow that. Taddune told Council he put the detail on the parking facility in Ordinance #24, which imposes the additional 1/4 penny sales tax. The ordinance is very specific. Taddune said "transportation related services" are included, and what is intended by that is space for bus facilities, ticket sales, etc. Paving of new streets and the surface parking, landscaping the roof are also included. Taddune said these specifics will be included in the title of the bond ordinance. Councilman Tuite brought up the 20 year provision. Taddune said in Ordinance #24, there is a provision stating Council will not amend the ordinance. There is a sunset provision stating that the tax will expire after 20 years or when all indebtedness underwritten by the tax is paid off. Mayor Stirling said he is worried about a large, empty garage and a new l/4 penny sales tax and cars being parked in residential areas. All in favor, with the exception of Councilman Gassman and Mayor Stirling. Motion carried. Councilman Tuite said the parking garage does not stand on its 14 Regular Meetnq___ Aspen City Council June 27, 1988 own. The city has to look at enforcement options and other issues. Taddune said question #2 is the exchange of property with Cap's Auto Supply. The amount of property to be exchanged has been reduced to 2400 square feet. Councilwoman Fallin asked if the question should state the city is going to trade the land in conjunction with the construction of a parking facility. Taddune told Council this was discussed, and it was decided it was a good idea to make the change independently. Lennie Oates, represent- ing Cap's, pointed out the question says Council may exchange this land. Councilman Isaac moved to include question #2 on the ballot; seconded by Councilwoman Fallin. All in favor, motion carried. Taddune told Council question #3 is one of the first employee housing/M.A.A. questions. The parameters for this question were provided by the housing office. The description is "generally bounded on the north by Castle Creek road f or about 150 f eet, across from the hospital/Castleridge housing, then northerly approximately 1300 feet forming a rectangle approximately 290 feet wide, located on the plateau above and alongside the west of Castle Creek". Taddune said staff wanted to give an indications to the elections the property in the question. Councilwoman Fallin said she has a problem with 4 questions using different properties for employee/M.A.A. housing. When the voters look at this, it will be overwhelming on one election. Councilwoman Fallin said she feels the city would be better off to take only one question at a time to the voters for the use of these properties. Councilwoman Fallin said the Red Roof is already constructed; it has had a full year of being used as employee housing. The electors are used to this and more accepting of it. Councilwoman Fallin said she would not want to see all four questions fail because there are too many. Councilwoman Fallin said she would like the city to get one accepted and hold off on the Koch and Marolt property until next spring. Councilman Isaac pointed out the Red Roof in inadequate to the needs of the M.A.A. Unless additional housing gets approved and constructed, the town is in danger of losing the M.A.A. Council- man Isaac said the community has to make some choices. Council- woman Fallin said all of these properties combined are not going to solve the employee housing problem. Fritz Benedict, M.A.A, told Council there are some board members that feel it would be a mistake to have all 3 properties on the election. Benedict suggested the question use bedrooms rather than units. Councilman Tuite moved to put question #3 on the ballot; seconded by Councilman Isaac. 15 ~- Regular Meeting Aspen City Council June 27, 1988 Taddune said the key in the question is the 125,000 square feet rather than the number of units. Taddune said the city does not know what will be built on this property. Taddune told Council the units are calculated at 400 square feet with additional square footage for common space . Councilman Tuite amended his motion to say "rooms" in the question rather than units; seconded by Councilman Isaac. Councilwoman Fallin asked why Council feels this issue should be on the August ballot rather than next spring. Councilman Isaac said the community has to be more aware during the summer of the shortage of housing for the M.A.A. If the city puts this off, it is delaying the struggle in finding adequate housing for the summer. The M.A.A. has already had to turn down students for this summer. Councilman Isaac said the city and M.A.A. will have to work for the passage of these issues. Jim Curtis encouraged Council to keep all of these issues on the ballot. This is a way to express support for M.A.A. employee housing, to identify sites that have been discussed. All in favor, with the exception of Councilman Gassman and Mayor Stirling. Motion carried. Mayor Stirling said question #4 is to approve changing the use at the Red Roof from short term tourist to residential. Taddune reminded Council the ballot question authorizing the sale of the Red Roof limited the use to short term tourist accommodations. Councilman Isaac moved to put question #4 on the ballot; seconded by Councilwoman Fallin. City Manager Bob Anderson explained that this question and question #5, the expansion of the Red Roof, were separated because it is conceivable that voters may want to allow the use of the Red Roof but not the expansion of the Red Roof . Mayo r Stirling said there is no mention in this question of any specific contract. Taddune said he could add that this would be determined on such terms and conditions as the Council may decide by ordinance. Council agreed this should be added at the end of the question. Chuck Vidal told Council the problem with the ballot question dealing with the Red Roof currently is that it prescribes a specific use. This question will prescribe another specific use and will preclude the use that is there now. Mayor Stirling said the question states, "in addition to currently approved uses". Andy Hecht said the question should not be mandated for employee 16 Regular Meetinct Aspen Citv Council June 27, 1988 housing, it should be permitted f or use. Council changed the word "may" for "would". All in favor, motion carried. Taddune said question # 5 u se s the same concept as the Marolt housing question. The parameters for this were provided by the housing office. Council may want to change the word "unit" to "room" to make this consistent. Councilman Isaac moved to put question #5 on the ballot; seconded by Councilman Isaac. Councilman Isaac asked if this is supposed to be an additional 100 units or up to 100 units. Taddune said it should say "no more than an additional 100 units". Vidal said he has a concern about this being very specific about a dormitory style housing. Vidal said this may be appropriate for the predominant use; however, the city may want to have a mix of rooms or uses in there. Vidal suggested the question deal primarily with the fact that this is additional employee housing. Taddune told Council he took out references to multi-family use in these questions on the recommendation of the housing office and restricted the use to dormitory use. Mayor Stirling said that is the urgent need currently in the community. Councilman Tuite said dormitory could mean a style with several bedrooms, central kitchen and living room. Vidal said with the wording, the Red Roof could not have an apartment for a manager. Jim Adamski said multi-family pictures 3 bedroom units. The housing office wants to address the dormitory needs of the community. Vidal said this should not bee 100 percent dormitory use. The city should give themselves some flexibility so that if something different is needed, they do not have to go back to the voters. Mayor Stirling said there is wisdom in having flexibility. Taddune said the original phrase was multi-family/dormitory housing. This could be included in all 3 employee housing questions. Richard Compton asked if the question includes who the housing is for, M.A.A students and seasonal employees. Councilwoman Fallin said she feels the questions should be very specific but the housing should be able to provide a manager's unit. Council suggested the purpose of "for employee/M.A.A. housing" be added to these questions. Adamski said the staff is trying to address the needs of the seasonal and M.A.A. employees. Mayor Stirling said being precise gives the electorate reliance. There is an urgent need to house M.A.A. faculty, students and seasonal workers. Taddune agreed with leaving seasonal out and putting in "employee/M.A.A. housing" and leave out dormitory style. 17 Regular Meeting Aspen City Council June 27~ 1988 Councilman Tuite moved to amend question #3 to include "employee /M.A.A. housing"; seconded by Councilman Isaac. All in favor, motion carried. Councilman Tuite moved to amend question #4 to be consistent; seconded by Councilman Isaac. All in favor, motion carried. Councilman Isaac amended the motion on question #5 to include the above; seconded by Councilman Tuite. All in favor, with the exception of Councilman Gassman. Motion carried. Taddune told Council question #6 is for employee housing at the Koch Lumber parcel and the description is "generally bounded by Garmisch street on the east side, Cooper Avenue on the north side, First street extended on the west side, and the Midland railroad bed on the south side". Councilman Isaac moved to put question #6 on the ballot deleting dormitory-style housing and adding "employee/M.A.A. housing"; seconded by Councilwoman Fallin. Councilman Isaac pointed out the property is commonly known as the Koch lumber property rather than the Koch lumber Park. Councilman Isaac said he would like to delete the work park. Councilman Isaac moved to delete the work "park". Motion DIES for lack of a second. All in favor, with the exception of Councilman Gassman and Mayor Stirling. Motion carried. Taddune said question #7 was expanded to include that the rent proceeds shall be restricted to sixth penny open space fund and the retirement of debt in connection with open space purposes. The terms of the lease shall retain uses for trails and will require that said golf course shall be available for use to the general public. Taddune noted that the question states that the lease will be approved by ordinance of the Council. Andy Hecht said he would like to be fair to the electorate so they understand this is not another municipal golf course. Hecht said this golf course will be a recreational amenity available to visitors and the public on a fee basis. Hecht said one problem is bifurcating questions #4 and #7 because the contract combines these two issues. Taddune said the questions can be tied together by stating, "shall the City Council be authorized in conjunction with the proposed sale of the Red Roof Inns property to lease long term all or a portion". 18 Reaular Meeting Aspen_CtY Council June 27, 1988 Councilman Isaac moved to put question #7 on the ballot with the revised title and language from above; seconded by Councilman Tuite. All in favor, with the exception of Councilwoman Fallin. Motion carried. KNCB Moore submitted a letter to Council asking to change the system of city elections to the primary system in sync with the general elections. Council has no interest in placing that change on the ballot. Moore's other suggestion had to do with budget policies and the desirability of further testing the city/county consolidation by having as identical as possible formats. Councilwoman Fallin said this is not a ballot issue. City Manager Bob Anderson said the staff is working on this administratively. REQUEST TO CONTINUE THE MEETING TO CONSIDER INITIATIVE PETITIONS Joe Edwards told Council they have filed initiative petitions with City Clerk Kathryn Koch totalling 30 percent of the regis- tered voters and about 70 percent of the average number of people who vote in a city election. Edwards said he feels this is a powerful indication of the community' s feeling about this situation. Edwards said there will be a sufficient number of signatures to bring this question before Council. Council's choice will be to either adopt the ordinance as presented or if they are disinclined to adopt the ordinance, it can be referred to an election not less than 30 nor more than 90 days from Council's last action on the proposed ordinance. Edwards said Council already has an election scheduled for August 9th, and it would be cost effective to add this question to the proposed election. Edwards requested, if Council does not adopt the ordinance, that they put this initiative on the August 9th election. Edwards said the city clerk, Kathryn Koch, can certify there are sufficient number of signatures to validate this petition before 30 days before the election. Edwards said if Council were to continue this regular meeting to a date certain next week so that Ms. Koch can certify these petitions are sufficient, Council can take up the issue of adoption of this ordinance or to put it on the ballot. Edwards said there is a great deal of community interest in this issue indicated by the number of signatures on the petition gathered in less than week. Edwards said it would be in everyone's interest to get this matter before the public and resolved as soon as possible. Edwards said it is possible to delay this action as long as possible in order to provide an opportunity for the applicant to rush through a new approval. Edwards told Council there is enough interest in this issue that it will be before the voters one way or another. Edwards requested this issue be handled most inexpensively and most 19 Reaular_Meeting Aspen City Council June 27, 1988 quickly and that Council continue this meeting for the purpose of considering this initiative petition. Mayor Stirling asked the effect of this initiative on the existing process in which the Aspen Mountain Lodge in now in, if this were on the August 9 ballot and were passed. City Attorney Taddune told Council the intended effect of the initiative ordinance is to prevent any application pending regarding PUD approval process. If the voters adopted the ordinance, the Hadid project as currently proposed would not be a viable project. Edwards agreed with that interpretation. Taddune told Council last month he distributed a case decided by the Eleventh Circuit, where in similar fact the court concluded that the consequence by initiative resulted in an inverse condemnation, a taking f or which the municipality was liable in damages and attorney's fees. This case has been f orwarded to Edwards f or review. Taddune told Council the city of Aurora, Colorado, is confronted with the same predicament and is at the trial stage. Taddune told Council he is in the process of obtaining the court documents. Taddune said he is researching other cases where Courts have held in an initiated ordinance that resulted in preventing a project that was pending where the right had been vested, there was a potential for an inverse condemnation that the municipality can be liable f or damages. Taddune said there will have to be legal discussion with Council concerning the ramifications. Taddune said the cases are foreboding with regard to the consequences of this kind of an ordinance postured the way it is being postured regarding the Hadid project. Mayor Stirling asked what effect this would have on a property that already has an SPA designation on it, like the Meadows property. Taddune said there is a safety valve in the SPA process, which is that the process will not be exhausted adminis- tratively until the matter is referred to the voters for approval. Taddune told Council the ordinance would require that the applicant participate in the process to obtain SPA approval by P & Z and Council. At that point it would be referred to the electors for ratification. Edwards said this is only if the application involves a hotel. Taddune told Council if an application involves a hotel and the application is pending, there is no mechanism available for the PUD process to be utilized to approve a hotel facility in the city if this ordinance is adopted. Mayor Stirling asked what would happen if there was a piece of property that had underlying mixed use of both residential and hotel. Taddune said the hotel component could be built in accordance with existing zoning. Edwards said one would be 20 - Regular Meeting Aspen City Council June 27, 1988 allowed to build a hotel on a property under city zoning but one cannot get variances. Mayor Stirling moved to continue the meeting to July 5, 1988, at 7 p.m. after Council's work session; seconded by Councilwoman Fallin. All in favor, with the exception of Councilman Isaac. Motion carried. ORDINANCE #24, SERIES OF 1988 - 1/4 Cent Sales Tax Councilwoman Fallin moved to read Ordinance #24, Series of 1988; seconded by Councilman Tuite. All in favor, motion carried. ORDINANCE #24 (Series of 1988) AN ORDINANCE IMPOSING AN ADDITIONAL ONE-QUARTER PERCENT (.25$) SALES TAX IN THE CITY OF ASPEN, COLORADO, THEREBY INCREASING THE SALE TAX TO ONE AND ONE-QUARTER PERCENT (1.25$) UPON THE SELLING OF TANGIBLE PERSONAL PROPERTY AT RETAIL UPON EVERY RETAILER OR FURNISHING OF SERVICE IN THE CITY OF ASPEN, COLORADO, OPERATIVE AND EFFECTIVE ON AND AFTER JANUARY 1, 1989; PROVIDING THAT THE ADDITIONAL REVENUES RECEIVED BY SAID INCREASE SHALL BE DEPOSITED IN A SPECIAL FUND AND MAY BE EXPENDED BY THE CITY COUNCIL SOLELY FOR PURPOSES OF CONSTRUCTING A PARKING FACILITY ON THE RIO GRANDE PROPERTY INCLUDING SPACE FOR TRANSPORTATION-RELATED SERVICES, PAVING A NEW STREET TO CONNECT MILL AND SPRING STREETS, PAVING FOR THE SURFACE PARKING WHICH REMAINS OUTSIDE OF THE PARKING FACILITY ON THE SITE, LANDSCAPING THE ROOF AND OTHER CAPITAL IMPROVEMENTS SURROUNDING THE SITE, ALL NECESSARY INCIDENTAL APPUR- TENANT FACILITIES STRUCTURE, FURNISHINGS AND EQUIPMENT, LAND ACQUISITION, GENERAL OPERATING PURPOSES, PAYMENT OF INDEBTEDNESS INCURRED IN CONNECTION THEREWITH, RESERVES AND FOR THE EXPENDITURES NECESSARY TO PROTECT ANY SUCH PROPERTY AGAINST LOSS OR DAMAGE OR DESTRUC- TION; PROVIDING FOR THE EXPIRATION OF SAID SALES TAX; PROVIDING THAT THE CITY COUNCIL MAY NOT AMEND, ALTER OR CHANGE SAID ORDINANCES; AND PROVIDING DETAILS IN RELATION TO THE FOREGOING was read by the city clerk Councilman Tuite moved to adopt Ordinance #24, Series of 1988, on first reading; seconded by Councilwoman Fallin. Roll call vote; Councilmembers Gassman, no; Tuite, yes; Isaac, yes; Fallin, yes; Mayor Stirling, no. Motion carried. 21 Regular Meeting Aspen City Council ~ June 27, 1988 ICE GARDEN REPORT Mayor Stirling moved that Council commit to fund in the fall of 1988 the first approach toward a new freon system not to exceed $89,000 and to replace all the boards and plexiglass not to exceed $103,000, that all the work be done during the f all of 1988 Councilwoman Fallin said the ice rink cannot be closed during the fall. Councilwoman Fallin said the hockey teams need this time to get into the rink and practice. Councilman Isaac said the ice rink needs to be safe. Councilwoman Fallin said she would like to see the work done by October 1st. George Pucak, ice garden manager, said the hockey camp finishes August 22. Pucak said the refrigeration work would take six weeks. They might be able to open the rink by the first week of October. Mayor Stirling amended his motion to reopen at the latest October 15th; seconded by Councilman Gassman. Mayor Stirling said the city will have to continue working on this issue. The money will have to come from fund balance and whatever savings can be effected in 1988. Mayor Stirling said both of these items have to be done at once. Councilman Tuite asked if there was money set aside in the capital improvement budget for the ice garden. Bill Efting, director of leisure services said $25,000 was budgeted for a study. Cindy Wilson, finance director, told Council the $25,000 is still available. Taking this money out of the fund balance of the general fund would be the least violation of the city's financial policies. Councilman Isaac asked if it would be better financially to do the freon system now and do the boards next spring when the ice rink is closed. Pucak told Council it takes awhile to order the boards. Councilwoman Fallin suggested if the rink closes in the fall, that they not be allowed to close in the spring. The reason the rink is closed in the spring is to give the ice breathing time. Councilwoman Fallin asked if the rink is closed in the fall, does it have to be closed again in the spring. Councilwoman Fallin said there is no sports taking place in the spring and having the ice rink open would benefit the entire community. Councilwoman Fallin said it is serious for the figure skaters to be off the ice from April to June and to lose their practice time. Pucak said they would try to keep it open in the spring. If they run all winter and do not see any movement in the concrete, they could stay open all year. Pucak said they could change their melt time to the fall, if that would work better for the com- munity. Ef ting said they will have to look at their operating 22 Reaular Meetnq___ Aspen Citv Council June 27. 1988 budget if they are to keep the rink open during the spring. Ms. Wilson told Council financially it would be better to do this project in two phases in order to see the 1988 savings and how the 1989 budget looks. All in favor, motion carried. SNOW DUMP REPORT Councilman Gassman moved to seek request for proposals in order to select a design and construction management consultant for the project; seconded by Councilwoman Fallin. Mayor Stirling said the Council has allocated 5125,000 for this project. The proposed budget from staff is 5130,000 not includ- ing the possibility of additional staff. Jay Hammond said the staff impact s would occur in 1989. City Manager Bob Anderson said he is not convinced that an increase is staff is necessary. Councilman Gassman said he is not sure this should be located on the Aspen One property. Mayor Stirling said his presumption and motion were that it would be located on the Aspen One property. Anderson said if it is located anywhere else, this will effect the costs because the city is proposing to utilize holding ponds that are already there. Councilman Gassman suggested looking at the impound lot as an alternate site or other sites on the Rio Grande. All in favor, motion carried. Councilman Gassman said he would staff to stress in the RFPs and in the design that ugliness and noise is a problem. Councilman Gassman said he would 1 ike the staf f to emphasize sound proofing as much as possible. Hammond said the intention is to provide sound deadening, landscaping, drainage capabilities with the anticipation that there will be more than one snow melt machine located there. Ellen Archer, Trecan, recommended a 15 foot high fence to cut down the noise levels. Ms. Archer told Council Trecan has sent a price quote that is good for 30 days. Ms. ARcher pointed out if the city installs more than one machine, it will not be running as much of the time. Ms. Archer said it would be more practical to put all 3 machines in at once. WATER RATE PLAN Cindy Wilson, finance director, told Council staff has attempted to come up with different models to review how to calculate water rates. The first two models are similar to the water management plan with some changes regarding how service area f actors are calculated. Ms. Wilson said model #1 also eliminates the avoided cost charge. This can also be done in model #2. Models #3 and 4 23 Regular Meetinct______ Aspen City Council June 27. 1988 are similar to the previous system before the January 1988 bills with minor changes. Model #5 is a totally different idea based on consumption with different rates for different sizes of users. Ms. Wilson told Council model #5 will be the most difficult for staff to come up with but is available for Council to look at. Ms. Wilson proposed staff present these at a work session for Council to determine modifications, service area factors, etc. Councilman Gassman said he cannot see any point in the avoided cost charge. Councilman Gassman said the only argument he has heard in favor of the avoided cost charge is if the utility defaults on the bonds, the bonds are backed by the full faith and credit of the city. Councilman Gassman said what will happen if the city defaults is that the city will raise the water rates and everyone will be effected equally, whether they are in the city or outside the city. Councilman Gassman said he feels the rates should be the same for all the service areas. Councilman Gassman said the city should figure out if it costs more to deliver water to one service area over another, and this should be based on costs. Ms. Wilson told Council the current service area factors are based on the cost of improvements to those areas. Ms. Wilson said if Council is not satisfied with the way the service area factors are working, they should be modified in an arbitrary way. City Manager Bob Anderson said one of the basic philosophical issue was based on the premise of analyzing layers of service by cost, which included capital improvements. Councilman Gassman agreed there are some costs that are devoted to certain areas but this system seems to hit them twice; charging for capital improvements and charging higher rates. Councilman Gassman said it does not seem fair to do both. Anderson said it is not necessarily easy to separate all the issues out, like density factors. Councilman Gassman said there is an unconscious presumption if a person has a large house, they can afford to pay more for the water. Councilman Gassman said the presumption is that it costs more to serve a few big houses than a lot of little houses. Councilman Gassman said he feels it is the opposite. Anderson said if there is one unit per every half mile, there is less return per half mile than with multiple units. Councilman Gassman said in general, he favors model #5, the rates should be based on ECUs and strongly weighted toward consumption than demand. Councilwoman Fallin said she favors models #4 or #5. Council- woman Fallin said it was more expensive to put the water system up to Red Mountain, Aspen Grove and some other areas. It is also more expensive to pump water to these areas. Councilwoman Fallin said she would retain some service area charges to mitigate those 24 Regular Meeting Aspen Citv Council _ ___ June 27 , 1988 expenses. Councilman Gassman agreed with that but feels the charges are excessive. Councilwoman Fallin said these charges should be related to actual costs. Mayor Stirling said the theory in the system is that the demand charge coupled with tap fees brings back the cost of the capital system. The consumption charges are to take care of the opera- tional budget. Mayor Stirling said Council can change this theory. Mayor Stirling said the lodge and condominiums users individually paid no demand charges except a single charge f or the building. This was one of the inequities this system was trying to set right. Mayor Stirling said he would 1 ike thi s integrated in any system. Ms. Wilson said there could be different usage rates for total number of ECUs. These rates could be multiples of each other but strictly usage-based. Ms. Wilson reminded Council if there is no out-of-city rate, the customers within the city will pay more. Councilwoman Fallin said people outside the city do not pay city property taxes, and equal water rates would be giving them a gift. Stan Stevens said it does cost more to get water up higher; this has always been factored in as an additional cost per gallon. Stevens said the big inequality is the multiplier than has little to do with anything else. Stevens pointed out that the pipes on Red Mountain were put in by the developers and given to the city. Stevens said the city ought to look at this as a selling water basis, recognizing it does cost a little more to ship it up hill. Councilman Isaac said the city just passed a new water rate system a few weeks ago and should give it a couple of months to see how it works. Council scheduled a work session for July 12 at 5:00 p.m. at 5 p.m. Council requested staff present 2 or 3 models incorporating Council's comments. Ms. Wilson brought up the delinquent accounts. Ms. Wilson told Council staff's position is that there has been no consideration given for retroactive adjustments to bills, that the bills are due and should be paid. Ms. Wilson said the normal process is to send a letter and give people 10 days to pay, indicating if people do not pay, their service will be terminated. Ms. Wilson suggested notifying customers the bills are due, and if people are having difficulty making payment, they can call the staff and make arrangements for a payment plan. Ms. Wilson recommended collecting half the bill in the next two weeks and arranging for the balance in the next 4 or 6 weeks. Council agreed with this procedure. SPECIAL EVENT GUIDELINES Mayor Stirling said the CCLC is using these and would like formal 25 Regular Meeting AsAen City Council June 27, 1988 approval. Councilman Isaac said the guidelines do not address the small vendors. Mayor Stirling said that is a separate issue. Mayor Stirling moved to adopt the special event guidelines and pass them on to CCLC; seconded by Councilman Gassman. All in favor, motion carried. SUBDIVISION EXCEPTION - Martin Councilwoman Fallin moved to table this issue; seconded by Councilman Gassman. All in favor, motion carried. SUBDIVISION EXCEPTION - Harmon Council told Lennie Oates, representing the applicant, this was approved on the consent agenda. Oates pointed out the city is asking that a lot line adjustment be done. Oates told Council neither one of the property owners are the ones that were there when the problem was created. Oates said it may be difficult to get the adjoining property owner to cooperate. Oates said they would like the city's help if necessary. ENCROACHMENT REQUEST - McDonald 300 West Main Jay Hammond, city engineer, told Council this is a project located at Second and Main. The applicants in creating a restaurant as a conditional use are required to provide a certain amount of on-site parking. HPC and P & Z waived the full parking requirements. The original proposal was to reconfigure the parking along Second street as angle parking. Staff had som e concerns with that. Parks department argued that paving of angle parking along Second street would endanger the existing trees on site. Hammond said the staff supports an encroachment request for one parking space on-site off the alley. There is a sidewalk requirement, and it will be constructed on Second street and will not interfere with the parking. Councilman Gassman moved to approve the McDonald encroachment request; seconded by Councilman Tuite. All in favor, motion carried. Mayor Stirling moved to suspend the rules and meet for 15 minutes; seconded by Councilwoman Fallin. All in favor, with the exception of Councilman Gassman. Motion carried. GALENA STREET IMPROVEMENTS CONDUIT Jay Hammond reminded Council at the June 6 Council meeting, they directed staff to look into details of the need f or conduit and 26 Regular Meeting AspenCity Council June 27~ 1988 the costs associated with placing this in the South Galena South Mill project. Hammond said this will be a $9100 expenditure. Hammond told Council this will be placed in Mill street only. Hammond recommended the 59100 be appropriated from the electric fund f or an addition to the project budget. Hammond reminded Council 5125,000 of city money from the serial tax levy has been committed to thi s improvement program. Thi s f unding i s f ul ly committed to basic improvements. The remainder of the money is contributions from the district membership and is devoted to aesthetic concerns. Councilman Isaac moved to appropriate 59100 from the electric fund for placement of conduit on South Mill street; seconded by Councilwoman Fallin. All in favor, motion carried. Hammond told Council there are possibilities of leasing this or the need for additional undergrounding, extending electric service in this area. JOINT MAINTENANCE FACILITY - City Storage City Manager Bob Anderson said the city would love to do this proposal but does not know where the money would come from. Council agreed. Council requested another look at this during budget hearings. MALL EXTENSION REQUEST - The Grill Councilman Gassman moved to approve the Grill mall lease exten- sion request; seconded by Councilman Tuite. Mayor Stirling said Council has already granted the Grill more space into the mall than other lessees. Mayor Stirling said he would rather see the applicants put a door into the patio space to the north. Councilwoman Fallin agreed they have gotten more than their share. Councilman Isaac suggested the applicants can trade some mall space for this space to the north. All in favor, with the exception of Mayor Stirling and Council- woman Fallin. Motion carried. 1989 BUDGET POLICIES Mayor Stirling said there are items in the budget policies that need more discussion. Mayor Stirling said he does not want to commit to a 6 percent increase. Cindy Wilson, finance director, told Council staff went through the general fund in some detail in projecting sales tax. Ms. Wilson said she is confident with the 6 percent figure; it has been proven to be conservative. Ms. Wilson told Council she expects the 1988 general fund to be ahead 27 Regular Meetinq_ Aspen City Council June 27. 198.8 of budget. Ms. Wilson said staff looked at other general f and revenues to give projections in order to get target for expenses for the departments. Ms. Wilson proposed that personnel will stay at the same number of positions or less than 1988 budget. The pay for performance raises will allow for a range of 0 to 8 percent, comparable to 1988. Ms. Wilson pointed out if some other targets do not fit within revenues, the pay for performance pool will be reduced in order to balance the budget. Ms. Wilson said temporary personnel will be kept at the same level or lower as 1988. The supplies and services will be targeted at 1987 actual expenditures plus 5 percent. This is below project inflation considering it is over a two year period. The finance department will estimate utilities and liability insurance. Ms. Wilson requested Council adopt the recommended policies; if there are concerns with departments or revenues, this can be discussed in detail at the budget hearing. Councilman Gassman said he found the budget process one of the most frustrating experiences. Councilman Gassman said Council spends a lot of time and detail. Councilman Gassman said the Council can get bogged down in the detail .and lose sight of very general things, like where the money should be spent. Councilman Gassman asked if a lot of the work could not be done more like a consent agenda, get the information, and if Council has questions or suggestions, talk about that. City Manager Bob Anderson suggested talking about goals setting at the front end. Mayor Stirling said he f eels this is a good way to learn about all the departments and to have direct contact with Council. Mayor Stirling agreed it is a long process. Anderson said staff will talk about shortening the process. Councilwoman Fallin said departments bring groups into to lobby for their projects. Councilwoman Fallin said it is an opportunity for Council to work with departments and not outside people. Councilman Gassman moved to approve the budget policies in concept; seconded by Councilwoman Fallin. All in favor, motion carried. The council meeting is continued to July 5, 1988, at 7:00 p.m. to discuss the initiative petitions and hear a report from City Clerk Kathryn Koch. Council left Chambers at 9:15 p.m. ,~ ~ ~~~ Kathryn Koch, City Clerk 28 Regular Meeting Aspen Citv Council June 27, 1988 the ordinance. Ms. Cassin told Council Section 4 gives the community some outs for the ultimate conversion requirement if the community can be successful enough about lessening the impacts from woodburning. Ms. Cassin said the Clean Air Board held a public hearing on what would be enough time to give people to convert, to clean up the air and be equitable. The Clean Air Board recommends the conversion be done by December 1, 1991. Ordinance #20 requires that the Clean Air Board report to Council annually on how well programs are going. The Clean Air Board will discuss mandatory ways to make wood be burned less and to be burned more cleanly at their July meeting and will report back to Council with a recommendation. Ms. Cassin said the Clean Air Board will be working on a proposal which would allow people to keep their fireplaces if they can prove they will only use them on days when pollution will not be a problem. It is the hope these two measures, along with a successful voluntary program, will prevent the need f or conversion at the end of 3-1/2 years. Ms. Cassin told Council staff and the CAB feel these programs need the added push of the knowledge that conversion will be necessary to make them more effective in the interim. Ms. Cassin said staff has been discussing ways to help finance conversions. Ms. Cassin said this Ordinance is not asking people to spend any money before the situation is known. What the ordinance is asking is that people know that at the end of this time period, conversions will have to be made. Ms. Cassin said staff has done a very complete voluntary program aimed at the entire community, both cars and woodburning. Ms. Cassin said staff supports a voluntary program. Ms. Cassin told Council current data indicates the town will have to make the conversion at the end of 3-1/2 years. Ms. Cassin said staff is more than willing to give other options a chance to work so that cony er- sions are not necessary. Ms. Cassin told Council subsection vi of Section 4 states that if the city finds that woodburning does not contribute significantly to the health problems or that alternative programs have suffi- ciently reduced PM 10 pollution, the Council may by resolution, delay or stay the implementation of the conversion requirements. Suzanne Caskey, Clean Air Board Chairman, told Council the CAB met after the public hearing and tried to come up with major themes they heard. Ms. Caskey said one theme they heard is that the information presented on PM 10 is not conclusive. Ms. Caskey said the city has a lot of data over the last 13 years, all of which continues to lead to the same conclusion. Ms. Caskey said for people who do not feel there is enough data, there should be something in the ordinance to allow the city to gather more data. 8