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HomeMy WebLinkAboutminutes.council.19881114Regular Meeting Aspen City Council November 14, 1988 1989 RFTA BUDGET 1 COUNCIL MEETING 5 CITIZEN PARTICIPATION 5 COUNCILMEMBER COMMENTS 9 RESOLUTION #40, 1988 - Adopting 1989 Budget 10 RESOLUTION #43 , SERIES OF 1988 13 ORDINANCE #35, SERIES OF 1988 - Amending Alarms 14 ORDINANCE #40, SERIES OF 1988 - Appropriations 14 ORDINANCE #41, SERIES OF 1988 - Appropriations 14 ORDINANCE #42, SERIES OF 1988 - Lease/Purchase Agreement 15 ORDINANCE #43, SERIES OF 1988 - Mandatory Odd/Even No burn Fines 15 BLOCK 19 ANNEXATION 18 ORDINANCE #44, SERIES OF 1988 - Sale of Red Roof 18 RFTA STOP SIGN REQUEST 20 BANNERS AT THE WHEELER OPERA HOUSE 21 SPECIAL EVENT CHRISTMAS FILMING 21 LAND TRADE HOSPITAL HOUSING 22 ORDINANCE #45, SERIES OF 1988 - Historic Designation Marolt Barns 23 PFISTER RANCH REFERRAL 24 HOUSING AGREEMENT AMENDMENT 24 27 Regular Meeting Aspen City Council November 14, 1988 Mayor Stirling called the joint meeting t o order at 4:15 with Councilmembers Isaac, Tuite, Gassman, Fallin and Commissioners Madsen and Crowley present. 1989 RFTA BUDGET Bruce Abel, general manager RFTA, told the Boards this proposed budget was approved by the RFTA Board October 27. Abel told the Boards in 1988, the levels of service on the valley routes were increased to respond to growing demand f or ridership. Abel said the proposed 1989 budget anticipates the continuation of the increased level of service through the entire year, rather than in winter and summer. Abel said this service is half hour headways between 6:30 and 9:30 a.m. and from 4 to 6:30 p.m. Abel said during the peak runs, there are two buses. Abel told the Boards the second new service anticipated for 1989 is the implementation of an airport shuttle from Rubey Park every half hour. Abel said he does not feel this service will compete with taxi cabs because so many tourists travel with a lot of baggage. Abel said these two increases in the level of service of 8.5 percent increase in miles. Abel told the Boards as part of their budgeting process every year, RFTA does a salary survey, looks at transit companies across the state and at similar positions around the valley. Abel said the recommendation this year was for salary adjustment of about 8.5 percent to bring RFTA into parity. The pay plan also broadens out the pay ranges to give the merit review more flexibility. Abel said a policy change is granting benefits to the part time year round drivers. Abel told the Boards there are 3 categories of employee drivers; full time year round, part time year round and seasonal drivers. Abel said there are 20 full time year round drivers, 10 part time year round drivers and as many as 45 seasonal drivers. Abel said with the tax changes, it is appro- priate to grant benefits to the part time year round employees. Abel said there are 6 supervisors and 1 lead driver. The purpose of the lead driver is to function as a supervisor during high season and driver during the shoulder season. The lead driver is also a back up employee when a supervisor is sick or on vacation. Abel said RFTA needs 6.8 full time equivalents for the super- visors so the lead driver is functioning as a supervisor about 85 percent of the time. Abel said RFTA is creating a second lead driver position for flexibility. Abel told the Board is has been a priority of RFTA to provide training for their employees. RFTA works in conjunction with 1 Regular Meeting Aspen City Council November 14, 1988 Universal Technical Institute for maintenance training. Abel said RFTA has been working with CMC to supplement training f or the operations staff. Abel told the Boards for marketing in 1989, they have included funding for a market research study to get a better understanding of the attitudes regarding transit so that RFTA has the ability to track the results of their market- ing efforts. Abel said there is $8500 for a market research study. Abel told the Boards there are new guidelines out that regulate underground storage tanks. RFTA has budgeted $6800 for insurance for underground storage tanks. Abel pointed out that last year the budget incorporated the maintenance of Rubey park into the building and grounds operations. Abel said this stretched the staff beyond the maximum limits and RFTA was not able to maintain Rubey. Abel said they have entered into a contract to take on the primary responsibility for maintaining Rubey park. This is a $12,500 expenditure. Abel said RFTA recovers about 40 percent of its operating expenses through fares and contracts f or services. The remain- der of the operating expenses are supported by the county 6th penny sales tax. Abel said this sales tax is collected on a county-wide basis with deductions for the city to fund debt service on bonds, funds for mall maintenance, and funds for food tax refunds. Snowmass Village does not participate in RFTA so they are refunded the 6th penny collections. Abel said the first $300,000 goes into the capital projects fund, the rest goes into the operating fund. The capital projects fund, regulated by the intergovernmental agreement, can be used only for capital. The debt service on the bonds that were i sued f or the bus main- tenance facility and the acquisition of the Neoplan buses comes out of the capital fund. Abel said with the increases in service and the adjustments to the pay plan, RFTA does not project a meaningful surplus in 1989. Abel said RFTA will be getting tighter and tighter in the future. Abel told the Boards he sees increasing demands for services in the valley in the level of existing service as well as demands to extend the service. Abel reminded the Boards, RFTA instituted a van program in 1988 to extend the service area beyond El Jebel. Abel said they have not had the success with the program. Abel said he has had some discussion with the town of Redstone to use a van between Redstone and Carbondale. Abel said Greyhound will be bringing their buses into town for skier shuttle and employee subscription service. Abel told the Board RFTA has come to agreement with the Ski Company f or a one year contract. Abel said RFTA requested a 5 year contract. The Ski Company would like to make a decision on 2 Regular Meeting Aspen City Council November 14, 1988 the aerial link to Snowmass before they make a long term commit- ment to additional rolling stock. Abel said the level of service will be the same as last year. Abel said the contract is a break even contract, RFTA covers the incremental cost of providing the service. Mayor Stirling asked about the Main street shuttle. Abel said RFTA ran the Original Curve loop to provide 15 minute headways on Main street. Abel told the Boards the response was very limited and the ridership was .l persons per trip and .5 persons per hour. Abel said there are problems along Durant street with the construction in front of Little Nell and the Cooper and Original intersection. Abel said for the winter, the buses will return to their old routing. Abel said this Original Curve loop was started June 14th for the summer season and will stop on Thanks- giving. Abel said the RFTA Board has indicated they are willing to look at this again if the stop signs at Cooper and Original are resolved and when the construction at Little Nell is solved. Councilman Tuite pointed out the airport shuttle will still use Main street on half hour headways. Councilman Tuite said if the Main street shuttle is continued, the Council will have to look at parking on Main street, which causes traffic and safety problems with the bus route. Abel told the Boards RFTA will work with the ARA and the lodges to get the information out about the airport shuttle. Abel said this route has had schedule problems due to the intersection at Cooper and Original, the 3 stop lights and the cars on Main street. Mayor Stirling asked when the new, smaller buses will be in service. Abel said these buses are to be delivered by January 31, 1989. There will be 5 of these buses to be used on the city routes. Mayor Stirling asked why the fund balance has decreased $300,000. Abel said RFTA budgeted $750,000 of the acquisition of the 5 smaller buses. Abel said when the county issues bonds for the new maintenance facility, RFTA will be participating in this and will reimburse their fund balance for the $750,000. Abel said the capital items are the Bluebird refurbishment, the spare power plant, bus stop shelters, improvements to park 'n' ride facili- ties, continue the analysis of the aerial cable between Aspen and Snowmass, work on the high occupancy vehicle lanes, improvements to the Snowmass Village terminal, maintenance support vehicles, copy machine, vacuum machine, debt service on the city buses and a personal computer. Abel said if the aerial cable study shows the community wants to pursue the aerial link to Snowmass, rather than buying new buses, RFTA would refurbish the Bluebird buses. Mayor Stirling asked if the city should be budgeting money to fund the aerial study. Abel told Council the $20,000 budgeted in 3 Regular Meeting Aspen City Council November 14, 1988 1988 did not get spent as a result of Skytrams not responding to the initial inquiries. Abel said the study will get out of the Skytram and into several varieties of technology. Abel said the Ski Company is providing $10,000, Snowmass $5,000. Abel told the Boards there is a 535,000 proposal on the table from LEA and Associates. Councilman Isaac said RFTA serves Snowmass and is spending $9,000 on the Snowmass terminal yet gives all their sales tax revenues back. Abel said Snowmass is making improvements to parcel C at the transit center. Abel said this is a heavily traveled route. Abel said RFTA is paying for the concrete and Snowmass is snowmelting this area. Abel said bus service to Snowmass is very needed and one that helps congestion. Councilman Isaac said he would like RFTA to talk to Snowmass about revenues. Mayor Stirling opened the public hearing. Richard Roth asked how many private vehicles RFTA has and how many are used for personal use. Abel said no vehicles are used for personal use. Abel said there are 2 Cherokees, one for the supervisors and one split between administrative staff and supervisors. There are 2 pickup trucks for the maintenance department and a pickup equipped with a plow. Roth asked what the travel and training expenses are. Abel said for maintenance, RFTA has contracted with Universal Technical Institute who has a specialized program f or transit diesel training. RFTA will use CMC for training and customer relations. (Commissioner Blake came into the meeting). Councilman Isaac encouraged RFTA to enlarge the park 'n' ride program. Abel said there will be paving in Basalt and Old Snowmass. Mayor Stirling closed the public hearing. Councilwoman Fallin moved to adopt the 1988-89 RFTA budget; seconded by Councilman Tuite. All in favor, motion carried. Blake moved to adopt the 1988-89 RFTA budget; seconded by Madsen. All in favor, motion carried. Fred Crowley said he would like to know what is going on with Snowmass and the transportation system. Madsen moved to approve the city/county water trust agreement; seconded by Blake. Crowley asked if the money can be spent by the city without county approval. Assistant City Manager Mitchell said the budget has to be approved by both Boards. 4 Regular Meeting Aspen City Council November 14, 1988 All in favor, motion carried. Madsen moved to approve the acceptance of the city land for the hospital employee housing uses; seconded by Blake. All in favor, motion carried. Councilman Tuite moved to approve the appropriation resolution for RFTA; seconded by Councilman Isaac. All in favor, motion carried. Blake moved to approve the appropriation resolution for RFTA; seconded by Madsen. All in favor, motion carried. (Councilwoman Fallin left the Council meeting). COUNCIL MEETING CITIZEN PARTICIPATION 1. Gideon Kaufman, representing the Aspen Institute, Fritz Benedict, representing the M.A.A., George Stranahan, representing Physics Institute, requested s study session with Council on Tuesday November 22 to review the proposal for the Meadows property before the formal SPA application is submitted. Kaufman said this proposal culminates many months of hard work. Kaufman said they will meet with the AVIA and interested citizens prior to the work session to go over these plans. Mayor Stirling moved to schedule a study session for Tuesday November 22 at 3 p.m. and to invite the P & Z; seconded by Councilman Tuite. All in favor, motion carried. Council agreed to reschedule the Shadow Mountain Trails study session from November 22 to November 29 at 5 p.m. 2. Welton Anderson, representing the new owner of the Elisha House, requested a clarification from Council on the intent to changes made to the code after the Elli's exemption. Anderson said the exactions that historically designated structures were formerly exempt from became requirements. Anderson said they would like a clarification f or the Elisha house where the owner would like to restore, not expand, and turn this into offices in an office district. Anderson said they have been told to restore the Elisha house would require 5 or 6 employee housing units. Mayor Stirling moved to bring this on the November 28 agenda; seconded by Councilman Isaac. All in favor, motion carried. 5 Rectular Meeting Aspen City Council November 14, 1988 3. Mari Peyton said last week the Coalition to Preserve Aspen's Zoning asked f or a code amendment f or lodges and PUDs to be put on a future agenda. Mayor Stirling said he has spoken to the planning department and they are working on a series of code amendments. The planning office wanted to bring all these amendments f orward at once, and this will probably be in Decem- ber. Ms. Peyton said the first meeting in December would be soon enough. 4. Ted Goudvis, representing the AVIA, presented a letter to Council requested Council continue the process which AVIA in- itiated June 20, 1988 with respect to zoning the 88 acres Aspen Institute property. Goudvis reminded Council in June the AVIA presented its conclusions reached as the result of an extensive survey regarding the property. Council asked AVIA to bring forward a proposed resolution for rezoning the property, which was presented July 11 recommending adoption of a new zone category and an action to rezone lands within the city of Aspen. Goudvis said at the same meeting, Council had a request from the non-profit organizations using the property. Council agreed to postpone action on the AVIA request for 90 to 120 days. Goudvis said the 120 days have passed and AVIA requests Council to move forward with the process and that Council refer the resolution to P & Z for comments prior to Council's consideration and adoption of this resolution. Goudvis said a ballot has been circulated by the west Side Improvement Association which reads, "I support the Aspen Valley Improvement Association's resolution recommending adoption of a new zone district category and action to rezone certain lands within the city of Aspen and I request the Aspen City Council act affirmatively on said resolution". Goudvis said 94 percent have supported the AVIA's request for zoning. Goudvis said it is the sense of the AVIA and adjacent property owners that it is the responsibility of Council to zone the property as reflected in the recommended resolution rather than to abdicate this respon- sibility to private negotiations between the land owner and the interested non-profit organizations. Goudvis said any agreement by third parties will have to be compared with the land use objectives of the proposed resolution to assure they are com- patible with the wishes of the residential community. Councilman Isaac said he wold prefer to go through the work session November 22 to hear the proposal. Councilman Isaac said he is not ready to rezone this property in a vacuum. Councilman Tuite agreed. Councilman Gassman said to make community land use decisions by private parties is not right. Councilman Gassman said the Council cannot accomplish anything before the study session November 22. Mayor Stirling said the AVIA or representa- tive should be present at the work session. 6 Regular Meeting Aspen City Council November 14, 1988 5. Frank Peters objected to a work session dedicated to allowing a developer to present plans. Peters suggested a work session with the AVIA and West Side Improvement Association to allow them to convince Council to zone to use. Mayor Stirling said Council would be willing to meet with the AVIA. Peters said Council should be evaluating zoning this property to use a s an equal alternative. Mayor Stirling said having a work session before the plan has been submitted to the planning office seems to give citizens an advantage to hear the plan before it starts through the process. 6. Don Fleisher said he had written a letter to Council regarding the chain link fence around Aspen Grove Cemetery. Fleisher said he received a response from staff and answered that response. Assistant City Manager Mitchell told Council staff has the zoning department look at this fence and they indicated the city was not violating the zoning code. Mitchell said if the Council wants to do something different or mitigate the concerns of the visual impacts of the chain link fence, they should direct staff . Mayor Stirling said he feels this is a question of aesthetics and cannot imagine the Aspen Grove Cemetery being encircled by a chain link fence, which is out of keeping with the low scale in the area. Mitchell said there was an agreement with the cemetery board two years ago to place the fence. Mitchell said to replace the fence or to mitigate it will cost additional funds. Councilman Gassman said it bothers him that the city is offending the residents. Councilman Gassman said he would like to see more work on this fence. Councilman Isaac said the city should improve the areas of the fence that are being contested by the residents. Mayor Stirling moved to direct the city manager to look into this further to see if there is a way the fence can be taken up and used elsewhere and report back to Council; seconded by Councilman Gassman. All in favor, motion carried. 7. Jim Breasted, representing the Coalition to Protect Aspen's Zoning, said there is a change of heart on Council about annexing the Smuggler mountain area. Breasted said he has been working on this annexation and would like to help Council accomplish their objectives. Fred Gannett, city attorney's office, told Council he prepared an annexation petition for an annexation election for areas east of town. Gannett said Council has been waiting f or the superfund issue to be resolved before there is annexation. Mayor Stirling moved to direct the city attorney and city manager to work with the Smuggler area to begin annexation, hopefully to get this done before the May election; seconded by Councilman Gassman. 7 Regular Meeting Aspen City Council November 14, 1988, Councilman Isaac said there is a study session on annexation November 16th and this group should attend. Mayor Stirling said the city has been holding off on this annexation because there may be liability that would effect the entire town. Mayor Stirling said the city should begin the process and see if anything about the superfund comes forward in this process. Councilman Tuite said he would like the city to try and annex without taking title to any of the roads and not being named as a potentially responsible party. All in favor, with the exception of Councilman Isaac. Motion carried. 8. Cindy Houben, planning office, requested Council move Pitkin Center Condominiumization from the action items to the consent calendar. Councilman Gassman moved to put the Pitkin Center condominiumization on the consent agenda; seconded by Councilman Tuite. All in favor, motion carried. 9. Jay Hammond, city engineer, requested Council move the designation of a hazardous materials route representative from the action items to the consent calendar. Mayor Stirling moved to put the designation of a hazardous materials route representa- tive on the consent calendar; seconded by Councilman Gassman. All in favor, motion carried. 10. Gideon Kaufman, representing a lodge owner of a non-conf orm- ing lodge, told Council this lodge has been short term for many years. The lodge owner would be willing to long term part of the lodge for employee housing. The problem is that this is a non- conforming use and if the owner would do this for more than a year, he would give up the ability to short term. Kaufman said the housing authority is supportive of this. The city attorney feels the city could draft something to allow this use to take place, depending on how Council feels. Councilman Tuite said he would like to see this pursued but would like to have more information. Councilman Tuite moved to direct staff to pursue this; seconded by Councilman Isaac. All in favor, motion carried. 11. Phoebe Ryerson asked if anyone in the city is pursuing the ideas of Mr. Green on employee housing. Jim Adamski, housing authority, said he has met with Mr. Green and explained the issue of land and the development process. Adamski said there is no site for this type of housing. 8 Regular Meeting Ashen City Council November 14, 1.988 COUNCILMEMBER COMMENTS 1. Councilman Gassman said it snowed Friday and the streets were sanded. Since then, there have been 3 days of temperatures in the 40's. The streets have not been cleaned. Councilman Gassman asked why the streets have not been cleaned. Assistant City Manager Mitchell said he will follow up on this. 2. Councilman Gassman said by the end of a 4 or 5 hour meeting, Council is not giving their full attention. Councilman Gassman suggested taking a break every hour or hour and a half for 5 or 10 minutes, move around and go outdoors. Councilman Gassman said this would lend to more responsible decisions. Councilman Gassman presented an alarm to schedule these breaks. 3. Councilman Isaac explained he voted against annexation because he feels the city has to do this in a responsible manner and look at the impacts. Council has a study session scheduled in two days. Councilman Tuite agreed the city should look at the impacts before they do any annexation. 4. Mayor Stirling said there is a lot of scientific information that has been brought forward on fluoride recently. Mayor Stirling appealed to Council to open the fluoride issue again so Council can schedule a study session in 1989. 5. Mayor Stirling brought up the police report in the city manager's comments about open containers. Mayor Stirling urged the staff to begin implementation of all the items mentioned in the memorandum. Councilman Gassman agreed this was a very good memorandum. 6 . Mayor Stirling moved to take the drug and alcohol abuse policy off the consent agenda and add it to the agenda as item (m); seconded by Councilman Gassman. All in favor, motion carried. 7. Mayor Stirling moved to take the 1989 fitness/wellness program off the consent agenda and add it to the agenda as item (n); seconded by Councilman Gassman. All in favor, motion carried. 8. Mayor Stirling reminded Council there is a study session with the liquor license association Monday, November 21, at 6 p. m. 9. Councilman Isaac said Council received a letter about the renewal of the Copper Kettle/tippler liquor license. Councilman Isaac moved to take this off the consent agenda and schedule it 9 Regular Meeting Aspen City Council November 14, 1988 for November 28; seconded by Mayor Stirling. All in favor, motion carried. 10. Mayor Stirling moved to take the tow contract off the consent agenda and add it as item (o) ; seconded by Councilman Isaac. All in favor, motion carried. 11. Councilman Isaac moved to add Poppycock's and Hibachi's liquor license renewals to the consent agenda; seconded by Mayor Stirling. All in favor, motion carried. Mayor Stirling moved to approve the consent calendar; seconded by Councilman Gassman. The consent calendar is: A. Liquor License Transfer - Pinon's B. Liquor License Renewals - Wienerstube, Guido's, Elk's Club, Maurice's, Hickory House, Bentley's, Primavera, Copper Kettle, Lauretta's, Chart House, Grog Shop, Pinocchio's, Pour la France, Country Roads, Poppycock's, Hibachi C. Minutes - October 24, 1988 D. Pitkin Center Condominiumization (Cindy Houben) E. Designation of a Hazardous Materials Route Represen- tative All in favor, motion carried. RESOLUTION #40, 1988 - Adopting 1989 Budget Cindy Shafer Wilson, finance director, said Council has held l7 work sessions and spent quite a bit of time on the 1989 budget. Ms. Wilson said the 1989 budget includes money for the renovation of city hall based on proceeds from the sale of the Red Roof Inns. Ms. Wilson said the conservative approach is revenue from the sale equal to the expenditure for city hall. The budget includes a parking facility of $6,200,000 funded from bond proceeds that will be issued in 1989. The budget also includes $90,000 for a street sweeper, $30,000 for the pool enclosure and $28,000 for the operation of the pool, $37,000 for lockers at the ice rink, $35,000 for improvements to the Koch lumber site, $125,000 for snow melting improvements and $100,000 for storm drainage improvements in the Ute Avenue area, and $70,000 for trails out of the land fund. Ms. Wilson told Council the other capital improvements will be financed in the general fund by a transfer from the electric fund, which is $445,000. Ms. Wilson said the budget includes increased funding for arts and non-profit groups, which Council discussed last week, and all changes to the budget since September. Ms. Wilson pointed out the resolution shows a deficit in the general fund of about $93,000. This deficit is anticipated to be funded from savings anticipated in 1988, where the general fund fund balance will be 10 Regular Meeting Aspen City Council _November 14, 1988 greater than what was previously discussed. These savings come from $18,000 of additional revenues in the golf course fund. This will be used to reduce the subsidy that the general fund pays for the golf course. There is 525,000 of additional real estate transfer tax revenues beyond what was budgeted. This will be used to reduce the subsidy that the general fund pays the Wheeler. There is 550,000 of general savings in the general fund which are primarily from sales tax revenues. Ms. Wilson recommended approval of Resolution #40 and cautioned Council they should be considering the long term impact of financing future year's budget from savings of the current year. Mayor Stirling opened the public hearing. Phoebe Ryerson asked where the snow dump shows in the budget as an expense. Ms. Wilson said the existing snow melt is financed out of the 1988 capital budget. The operations of the new machine are included in the 1989 budget. Mayor Stirling said the 5125,000 included will only be spent based on the experiment for the 1988-89 winter. Councilman Tuite said the city is able to finance capital items because Council made a decision to lower reserves that have been carried over the years. Councilman Tuite said Council is still being conservative; however, they are taking out of the savings without adding to it. Councilman Tuite said if the city does not increase their bonding, their may be more funds available. Councilman Tuite said as far as operations and revenues generated, the city is getting tighter and tighter all the time. Councilman Tuite said he would like to have Council look at the budget in early 1989 and go through it with a fine tooth comb to see if there are ways to cut operations. Mayor Stirling said he went through the Blue Ribbon Panel's list of capital improvements from 1983. This panel proposed a list of 35 projects to be funded from sales tax revenue bonds, property tax levies, utilities bonds, etc. Mayor Stirling pointed out since 1983, over 20 of these projects have been completed and an additional 7 or 8 projects are proposed for 1989. Mayor Stirling said 80 percent of these projects have been done with cash rather than long term funding. Mayor Stirling said it is a tribute to staff, citizens and Council to see the list of projects that have been done and how much they have been done without financing. There have also been open space purchases during this time. Ms. Ryerson asked if the Council is going to allocate money or land for low cost housing. Mayor Stirling said the voters allocated a portion of the Marolt property for long term housing as well as allowing the use of the Red Roof Inns for low cost housing. 11 Regular Meeting Aspen City Council November 14, 1988 Mayor Stirling moved to not increase the business license fees; seconded by Councilman Tuite. Mayor Stirling said he does not see any reason for increasing the business license fees. Mayor Stirling said there should be some benefit tied to the increase of fees. Mayor Stirling said it costs a great deal to do business in Aspen and the city should not add more to it. Councilman Isaac said the city is funding the Chamber affairs and information services for the ARA. The businesses have a low fee compared to other communities. Councilman Isaac said he feels the businesses should share in paying for expenses that the whole community is funding. Councilman Gassman agreed. Councilman Gassman said the town of St. Moritz has trade marked their name and businesses or products cannot use it without paying a fee. Councilman Gassman said the name and reputation and good will is owned by the public. Councilman Tuite and Mayor Stirling in favor; Councilmembers Isaac and Gassman opposed. Motion NOT carried. Councilman Isaac requested that Council reconsider its funding for ERGS environmental research group, and the funding of the erosion mitigation for highway 82. Councilman Isaac said the county has had a use tax passed and this should be funded by the county. Councilman Isaac moved to withdraw the $10,000 funding from ERG; seconded by Councilman Tuite. Councilman Tuite said he would support talking to the BOCC about funding this program. The city is in a lot of joint projects with the county and should not jeopardize the future of projects by withdrawing this $10,000. Mayor Stirling said $30,000 is being paid by the highway department and $10,000 each by the forest service, city and county. Mayor Stirling said this area is the gateway to Aspen six months a year. Councilman Isaac said the city is running short on cash. Councilman Isaac in favor; everyone else opposed. Motion NOT carried. Councilman Isaac said he would like to increase the funding f or Anderson Ranch to $5,000. Mayor Stirling moved to contribute $2500 to the Anderson Ranch and deduct the $1500 from Council's 1989 contingency fund; seconded by Councilman Isaac. Mayor Stirling said Anderson Ranch is one of the most special, nationally recognized artistic efforts and it benefits the entire valley. Mayor Stirling said Council has set no jurisdictional limits for what is funded. 12 Regular Meeting Aspen City Council November 14, 1988 All in favor, motion carried. Councilman Tuite moved to increase Mountain Rescue's contribution from $2500 to $3500 to come out of the contingency fund, the extra $1,000 for capital improvements; seconded by Mayor Stirling. Councilman Tuite said as the city's budget gets tighter, the arts and non-profit can expect to look at the city for funding. The community will have to make a decision if they want the city to get more funding from more sources and keep funding these type of groups or to just maintain basic services. Councilman Tuite said he would like a goals session early in 1989 to re-evaluate where the city is going. Mayor Stirling agreed and said there should be a joint budget goals sessions with the Commissioners. All in favor, with the exception of Councilman Gassman. All in favor, motion carried. Councilman Tuite moved to adopt Resolution #40, Series of 1988, as amended; seconded by Councilman Gassman. Mayor Stirling commended the finance director and finance staff for their work on the 1989 budget. Mayor Stirling said he was hoping the Council could reduce the 1989 and would also like to have a Council work session on the 1989 to look at operations. Mayor Stirling said the arts contributions have increased 50 percent since 1986. Mayor Stirling said this budget is the best Council can do given the restraints and demands and the level of services that are required. Councilman Isaac said he is not happy with the erosion of the fund balances. Councilman Isaac said if the city keeps spending their reserves, and runs into a bad year, they won't have any money available. Councilman Isaac said the city needs a long term plan. Mayor Stirling said the fund balance has gone f rom very low in the 197 0' s to an artif i- cially high level. Mayor Stirling said the city ha s not been able to do a reallocation on advantages that businesses on the mall receive that no other downtown businesses get. All in favor, with the exception of Councilman Isaac. Motion carried. RESOLUTION #43, SERIES OF_1988 Cindy Shafer Wilson, finance director, recommended the mill levy be 2.515 mills which would generate $510,800. Ms. Wilson told Council last year the mill levy way 2.404 mills. This is a 4.6 increase in the mill levy and the revenue generated will be a 1.6 increase. Ms. Wilson reminded Council the state changed the 13 Regular Meeting Aspen City Council November__14, 1988 process for valuing residential property. The assessed value is now 16 percent of the market value. Last year the assessed valuation was 18 percent of the market value. The amount of tax a residential property owner will pay is reduced by 7 percent and the amount of tax a commercial property owner will pay is increased 4.6 percent. Ms. Wilson told Council in 1987 the mil levy was 5.38 and the difference in the change in assessed valuation. Councilman Gassman moved to approve Resolution #43. Series of 1988; seconded by Councilman Isaac. All in favor, motion carried. ORDINANCE #35, SERIES OF 1988 - Amending Alarms Fred Gannett, city attorney's office, told Council this ordinance should be withdrawn. The ordinance is being redrafted as no one is satisfied with it. Councilman Tuite moved to withdraw Ordinance #35, Series of 1988; seconded by Councilman Gassman. All in favor, motion carried. ORDINANCE #40, SERIES OF 1988. - Appropriations Mayor Stirling opened the public hearing. There were no com- ments. Mayor Stirling closed the public hearing. Cindy Shafer Wilson, f finance director , told Council this or- dinance incorporates changes in salary based on the pay for performance. Most of this is reallocating funds to specific departments. Councilman Isaac moved to adopt Ordinance #40, Series of 1988, on second reading; seconded by Councilman Gassman. Roll call vote; Councilmembers Tuite, yes; Gassman, yes; Isaac, yes; Mayor Stirling, yes. Motion carried. ORDINANCE #41, SERIES OF 1988 - Appropriations Mayor Stirling opened the public hearing. Cindy Shafer Wilson, finance director, told Council this or- dinance contains appropriations Council has approved as well as several department requests. Mayor Stirling closed the public hearing. Councilman Tuite moved to adopt Ordinance #41, Series of 1988, on second reading; seconded by Councilman Isaac. Roll call v ote; 14 Regular Meeting Aspen Citv Council November 14, 1988 Councilmembers Isaac, yes; Tuite, yes; Gassman, no; Mayor Stirling, yes. Motion carried. ORDINANCE #42, SERIES OF 1988 - Lease/Purchase Agreement Mayor Stirling opened the public hearing. There were no com- ments. Mayor Stirling closed the public hearing. Councilman Gassman moved to adopt Ordinance #43, Series of 1988, on second reading; seconded by Councilman Tuite. Roll call vote; Councilmembers Gassman, yes; Tuite, yes; Isaac, yes; Mayor Stirling, yes. Motion carried. ORDINANCE #43, SERIES OF 1988 - Mandatory Odd/Even No burn Fines Tom Dunlop, environmental health department director, told Council staff and community groups have been discussing this ordinance. Dunlop said the environmental health department feels this ordinance has a definite public relations value to improve the community awareness and involvement. Dunlop told Council his department is prepared to enforce this like the smoking ordinance is enforced, where there is an ability to cite people into court. Dunlop said the odd/even burn program will be difficult to enforce because violations will generally occur during the night. The environmental health department is not staffed to work 24 hours a day. Dunlop said the department is prepared to respond to complaints. Dunlop said for the first offense a verbal warning will be issued; a second and each additional offense at a specific address, a written warning will be sent. Dunlop said a fine system and actively pursuing violators may have an effect on the city's attempts to gather information for real time monitoring on the impacts of woodburning. Dunlop said the variable of an odd- even program will be difficult to adjust the statistics the city will be gathering. Dunlop said he would prefer to spend the department's energy developing the real time monitoring in order to have a better explanation for the community at the end of the winter. Dunlop said the environmental health department plans surveys this winter to do observations in specific parts of town to see if there is compliance with this ordinance. Dunlop said the ordinance requires verbal warnings for the first offense and written warnings for the second offense to the responsible party and to be able to have the warning sent to the owner or property manager. Mayor Stirling opened the public hearing. 15 Regular Meeting Aspen Citv Council _November 14, 1988 Si Coleman, Clean Air Board member, told Council this ordinance has not been shown to the CAB. Coleman said Council passed a mandatory odd/even no burn ordinance but did not adopt a schedule of fines. Coleman said the point of passing this ordinance is to put some teeth in it. Coleman said it makes foolish the passage of the first ordinance if the city is only going to issue warnings. Coleman suggested there should be a fine based only on blatant multiple offenses. Council can then instruct the Clean Air Board and staff to come back with a proposal on what those fines should be. Coleman said without fines, there is no way to cite people. Dunlop said he is interested in the fairness and equitability of the ordinance. Dunlop reminded Council the effectiveness date of the ordinance was November 1st. Lee Miller said if the city is going to have fines, they should be fining the person who is offending the law at the moment, not the homeowners. Miller said the homeowner or property manager cannot control the actions of the tenants. Miller said if this is a town problem then the town should address the problem. Miller said he would not like to see fines this winter. Miller said there is a lot of confusion in the rental market about this ordinance. Molly Campbell, Gant, agreed the most important point is the time of the staff. Ms. Campbell said the research data does not support what the cause of the problem is. Ms. Campbell said this winter the staff's time ought to be prioritized on furthering research and finalizing the data. Ms. Campbell supports no fines this winter and more time on research. Dwight Shellman said if there is no fine system this year, the repeat violators may be local citizens. Shellman said the city does need to get on with this program. Coleman reminded Council if the city does not come up with some proposal that will satisfy the EPA that the city is eliminating the health risk, the EPA will force the town to switch all woodburning fireplaces to gas logs. Coleman said the stakes in the program are the ability to keep a woodburning fireplace in exchange for using it responsibly. Bil Dunaway said there is no point in having an ordinance if people are just getting warnings. This will encourage people to violate the ordinance. Keith, general manager Aspen Square, agreed there is a need for teeth in the ordinance f or repeat violators. Keith said it is not correct to ask the rental guest to bear the brunt of the fines. Keith said the lodging and condominium associations have made a volun- tary effort already. Keith said the way to improve the situation is by education and positive reinforcement. Andy Bigford said one reason for using this system is the inequity between a resident and a guest. A guest could get a 16 Re4ular Meeting Aspen City Council November 14, 1988 warning each guest visit and never have to pay a fine. Bill Butler said the fining system is supposed to make people think they do not want to do an action again because there is a cost to that action. Butler said the psychology of this program is very important. Councilman Tuite said he does not have a problem adopting this ordinance without fines but would like to see monthly reporting back to Council. Councilman Tuite said he would like to know about blatant offenders. Coleman said the reason for having the owner responsible is to treat the residents and guests alike. Coleman said the people the town can educate are the people who own property in Aspen. Coleman said he would like the Clean Air Board to be able to review this before it is adopted. Councilman Isaac moved to amend Ordinance #43, 1988, to add Section 1(c) to state that third and additional offenses at a given address, the fine shall be sent to the renter, if known, or to the renter or property manager and to set the fine at $20; seconded by Mayor Stirling. Council suggested this be changed to "occupant" throughout the ordinance. Mary Martin said this program needs more communication and suggested letters in the electric bill explaining this program. Ms. Martin said the owners, not the renters, should be fine. Mayor Stirling said he is not interested in passing a law that has no teeth. Mayor Stirling said the fine should be $50 and it should be the owner who bears the burden of this ordinance. Councilman Tuite said he feels it is late in the season to be starting this program. Councilman Tuite said he would like to see this mandatory without any fine. Councilman Tuite and Councilman Gassman opposed; Councilman Isaac and Mayor Stirling in favor. Motion NOT carried. Councilman Tuite moved to adopt Ordinance #43, Series of 1988, on second reading; seconded by Mayor Stirling. Councilman Isaac said there has to be some kind of fines with a mandatory program. Councilman Tuite withdrew his motion. Mayor Stirling moved to remand this to the Clean Air Board to make a specific for a report back November 28; seconded by Councilman Isaac. All in favor, motion carried. 17 Regular Meeting Aspen City Council November 141 1988 BLOCK 19 ANNEXATION Mayor Stirling moved to table this to November 28, 1988; seconded by Councilman Gassman. All in favor, motion carried. ORDINANCE #44, SERIES OF 1988 - Sale of Red Roof Paul Taddune, special counsel, presented an agreement for sale and ordinance for first reading for Council's deliberation. Mayor Stirling said one issue is whether the city is gaining or losing residential units by this proposal. Mayor Stirling said the August election gives the right to increase the size of the Red Roof by 50 units, and does this add more value to the property by the expansion right. Mayor Stirling questioned the city's right to buy the property back. Taddune said the city would have the ability to repurchase the project for $2,100,000 in the event the project is no longer used for employee housing. The city has 90 days to exercise the option and 90 days to close. Taddune said if the property is not to be used as employee housing, the owners will have to give notice to the city. Taddune told Council this property is not zoned for employee housing and it will have to be rezoned for that use. Taddune pointed out any future development will have to be addressed through the land use process. Taddune told Council in negotia- tions, no extra value has been placed on the project on the fact that employee housing could be expanded. Taddune told Council the negotiations got hung up on how to place a value on the Zoline lease. In order to move the transaction along, the Zoline has been severed from the Red Roof transaction. Mayor Stirling said this proposal looked like it had many things to benefit the community, including dedicating long term residen- tial housing and revenues to restore city hall. Councilman Tuite said the city is having such a housing shortage right now. Councilman Tuite said the city has to retain the property and use it for employee housing. Andy Hecht, representing DeBoer, told Council they are willing to build more employee housing as soon as they are able. Hecht said they have other solutions for more employee housing. This project will not address their entire obligation and they will mitigate their impacts. The Red Roof will be one component to that solution. Councilman Tuite said more rare to the city than cash is land. Councilman Tuite said the city has to take care of employees, not just this development. Chuck Vidal said these housing units will be available to anyone in Pitkin County. Councilman Gassman said the effect of this project is than in 5 years, the city will have 50 units less than if the applicant had to provide all their housing. Vidal pointed out if the housing office pays the city 18 Reaular Meeting Aspen City Council November 14, 1988 $1,000,000 f or this property, this is money they do not have to spend on other housing. Vidal said when the applicants were considering purchasing this, it was not considered housing but was considered short term tourist accommodations. Vidal said the recent use has converted this property to employee housing. Mary Martin said she feels this first reading is premature. People's Rights Organization is doing a housing survey which will be done in about a month. Ms. Martin said PRO is contacting every business to find out how many employees they have, where they live, if they would move up valley if there is housing, etc. Jim Adamski, housing office, told Council the housing office and M.A.A. have a proposal to pay $1,000,000 and to give the city the land back at the end of the bond term. Councilman Isaac said he would be interested in the seeing the proposal of the housing office. Councilman Isaac said the applicants are getting credit for these units as employee housing for the Pfister project; however, if in the future they do not want to use them as employee housing, the city has 90 days to buy them back. Hecht said if the applicants get the credit, they would have to deed restrict the units. Richard Roth encouraged Council not to sell the Red Roof. This would be a decrease of employee housing. Roth said the vote in August was clear that people wanted to use this building for employee housing. Mayor Stirling moved to table this ordinance to November 28, 1988. Motion DIES for lack of a second. Mayor Stirling moved to bring this on the agenda for further discussion November 28; seconded by Councilman Isaac. Councilman Isaac said he would like to see a firm proposal from the housing authority. Councilman Gassman said the Council needs to make the decision whether to sell or to keep the Red Roof. Councilman Isaac and Mayor Stirling in favor; Councilmembers Tuite and Gassman opposed. Motion NOT carried. Councilman Gassman moved that the city terminate negotiations with De Boer and vigorously pursue a joint housing authority and M.A.A. proposal; seconded by Councilman Tuite. Vidal said in the event Council decides this is not the correct direction, would the De Boer group be reconsidered. Councilman Gassman said he feels their proposal has a lot of merit; however, there is a need for housing. One thing the city lacks, after housing, is a place to put it. Councilman Tuite said he wants the Red Roof to generate housing and future housing, not in lieu for another project. 19 Regular Meeting Aspen City Council November 14, 1988 All in favor, motion carried. RFTA STOP SIGN_ REQUEST Mayor Stirling said there has been a request f rom RFTA to relocate the stop signs. Mayor Stirling said RFTA is going to discontinue the Main street shuttle at the end of November because of lack of ridership and that they could not keep the time schedules. Dwight Shellman, RFTA Board, told Council there has been a change in demographics and there have been reductions in ridership in the city bus routes. Shellman said he would like to transform the way transportation services are delivered in Aspen. Shellman said he would like to see about 7 minute headways in buses going the same direction on the same routes. Shellman said until these seats are available and the community knows about them, the city cannot challenge the community to ride the bus. Shellman said there should be bus stops and places for people to sit along the Main street route. Shellman said the bus stop signs were not installed until July and there are not additional bus stop areas. Shellman said at Cooper and Original the sto p signs stop the buses rather than the other traffic. Shellman said the TDP recommended a modification of that intersection to stop traffic going east. The lack of implementation of this program poses a problem to the Main street shuttle bus route. Shellman said there also has to be some type of control on Durant coming out of Rubey park. Shellman said one reason the stop signs at Cooper and Original were not changed is that this did not meet the state highway warrants. Shellman said if the city is going to have a bus system which costs 52,500,000 and which will make a difference, the city will have to give this bus system a priority over private vehicles. Shellman said RFTA cannot continue to run the buses as ineffi- ciently as they are run. These buses need to be exposed to a new market or to be used in down valley transportation. Shellman requested Council instruct their representatives on RFTA to maintain the Main street shuttle alignment. The next step is to open up areas on Main street for the buses to pull over and to provide places to sit. Councilman Gassman said he would like to see the stop signs at Cooper and Original changed. Mayor Stirling moved to direct Bill Tuite and Dwight Shellman to work to continue this process and really test it out properly to see if it can work; seconded by Councilman Gassman. Councilman Isaac said RFTA has tried this route for the summer and f all and said it does not work. Shellman said there are some difficulties with the route, like the construction on Durant 20 Regular Meeting Aspen City Council November 14, 1988 street. Shellman told Council the Ski Company construction will move on to their site soon. Mayor Stirling said he feels it makes a lot of sense to continue the Main street shuttle without having a separate bus route at minimal cost. Mayor Stirling All in favor, motion carried. Jim Gibbard, engineering department, told Council he has received tentative approval from the state highway department to recons- truct the intersection at Cooper and Original. The state highway department will not approve taking the stop sign away at the south leg of Original. BANNERS AT THE WHEELER OPERA HOUSE King Woodward said the original request was to hang six 20 foot by 4 foot banners. Woodward said this request is for two banners in front of the entrance to the Wheeler. These will be on poles and aligned with the existing lampposts. Woodward said they would like these banners up from December 1988 to December 1989. Councilman Gassman moved to approve the banners at the Wheeler Opera House; seconded by Councilman Tuite. Mayor Stirling said there were misgivings about attaching these to the building. Mayor Stirling said this is an excellent alternative. All in favor, motion carried. SPECIAL EVENT CHRISTMAS FILMING Patsy Malone, personnel director, told Council there will be filming on the mall and requested a portion of the m all to be closed off. There are some no parking and some street closures requested. David Laughren, Avalanche Productions, said this is for taping of John Denver's Christmas In Aspen, which will be shown on CBS. The entire show will be shot in and around Aspen. Laughren said on November 28, they will be taping at the Sardy house and would like no parking on Aspen street between Bleeker and Main from noon to midnight. Laughren said they would also like to have no parking in front of the library for the same time period. Laughren told Council from 7 p.m. on, they request two lanes of Main street be closed. Mayor Stirling asked about highway department approval. Jay Hammond, city engineer, told Council this is possible with coordination with the highway patrol. Laughren told Council they would like to close Main street from Monarch to First from 9 p.m. to midnight and detour the traffic. 21 Regular Meeting Aspen City Council November 14, 1988 That will be the actual taping time. Ms. Malone told Council she has met with the police department and RFTA in order to work these requests out. Councilman Isaac asked if this is requesting police service. Ms. Malone said Avalanche Productions is paying police for their service. Ms. Malone said Avalanche Productions has contacted people that will be effected by this. Councilman Isaac moved to approve closing of Main street on November 28 from 7 p.m. to midnight; seconded by Councilman Tuite. Councilman Gassman asked if this is something that benefits the town. Councilman Gassman said there are some real costs to the town in this type of thing. This is television using a shared, commonly owned resource for individual profit. Laughren said they intend to show Aspen in it's best light. All in favor, with the exception of Councilman Gassman. Motion carried. Laughren said the second day of shooting in the city is December 1st and they will be on Galena street and the Hyman Avenue Mall. Laughren requested no parking on Galena from Hyman to Cooper, and on Hyman from 3 to 6 p.m. Laughren at 6 p.m. they will be shooting on the mall. The side sections of the mall will remain open to pedestrian traffic and for businesses. Laughren told Council they have contacted every business in this area and have had no objections. Laughren showed the areas they are requesting to be closed for no parking. Councilman Isaac moved to approve the proposed closings; seconded by Councilman Tuite. Richard Roth said this is a public facility that is being used for private profit. Roth said they should offer some contribu- tion to the city. Mayor Stirling said this will feature Aspen in a way that is beneficial. The town could not buy this hour on television. This show will be in the long term best interests of the town and will feature the town in a positive way. All in favor, with the exception of Councilman Gassman. Motion carried. LAND TRADE HOSPITAL HOUSING Fred Gannett, city attorney's office, told Council there is a joint resolution with the county, which the county has already approved. There is also an ordinance to authorize the implemen- tation of the documents. The third document is the donation agreement, which sets forth the terms and conditions of the land 22 Regular Meeting Aspen Citv Council November 14, 1988 donation. Gannett said this is proposed to give to the county a small portion of land in the Thomas subdivision to be used by the hospital, county and housing office as a public housing project. Councilman Tuite moved to approve the joint resolution; seconded by Councilman Isaac. All in favor, motion carried. Councilman Isaac moved to read Ordinance #46, Series of 1988; seconded by Councilman Tuite. All in favor, motion carried. ORDINANCE #46 (Series of 1988) AN ORDINANCE IMPLEMENTING THE TERMS OF THAT LAND DONATION AGREEMENT BETWEEN THE CITY OF ASPEN ("CITY"), DATED __________________, 1988, BY AUTHORIZING AND DIRECTING THE MAYOR TO CONVEY TO THE COUNTY BY SPECIAL WARRANTY DEED THAT PARCEL OF LAND REFERRED TO IN THE AGREEMENT AND COMMONLY KNOWN AS THE "A1 PARCEL, THOMAS SUBDIVISION", AND DETERMINING THAT SAID CONVEYANCE IS EXEMPT FROM THE DEFINITION OF SUBDIVISION; THE IMPOSI- TION OF A CONDITION UPON SAID CONVEYANCE IMPOSING A RESTRICTIVE COVENANT ON THE PROPERTY THAT IT SHALL REMAIN IN USE FOR EMPLOYEE HOUSING IN PERPETUITY UNLESS OTHERWISE WAIVED BY WRITTEN INSTRUMENT EXECUTED BY THE CITY OF ASPEN OR SHALL AUTOMATICALLY REVERT TO THE CITY was read by the city clerk Councilman Tuite moved to adopt Ordinance #46, Series of 1988, on first reading; seconded by Councilman Gassman. Mayor Stirling said hi s only objection is that he feels this should go to a vote of the electorate. Roll call vote; Councilmembers Tuite, yes; Isaac, yes; Gassman, yes; Mayor Stirling, yes. Motion carried. Hans Wiik, hospital director, thanked Council and especially Councilman Tuite for work on this. This will add 24 pillows by next winter. ORDINANCE #45, SERIES OF 1988 - Historic Designation Marolt Barns Councilman Tuite moved to read Ordinance #45, Series of 1988; seconded by Councilman Gassman. All in favor, motion carried. ORDINANCE #45 (Series of 1988) 23 Regular Meeting Aspen City Council November 14, 1988 AN ORDINANCE DESIGNATING THE HOLDEN-MAROLT BARS/LIXIVI- ATION RUINS SITE AND THE OPAL MAROLT HOUSE AS H, HISTORIC LANDMARK PURSUANT TO DIVISION 7, SECTION 7-701 AND 7-702 OF THE LAND USE CODE was read by the city clerk Councilman Gassman moved to adopt Ordinance #45, Series of 1988, on first reading; seconded by Councilman Isaac. Fred Gannett, city attorney's office, told Council the legal description is broader in scope that it has to be. Gannett said putting employee housing into this overlay may force an addi- tional review of a housing project. Gannett said staff will substitute a more definitive legal description before second reading. Roll call vote; Councilmembers Gassman, yes; Isaac, yes; Tuite, yes; Mayor Stirling, yes. Motion carried. PFISTER RANCH REFERRAL Glenn Horn, planning office, recommended Council spend at least an hour on this referral. Horn told Council this project is before county P & Z and the review is anticipated to last until February. Horn said this will not go to the Commissioners until spring. Horn said he would like the comments of Council be ready to go to the Commissioners. Council scheduled a work session for January 16, 1989 at 5:00 p.m. HOUSING AGREEMENT AMENDMENT Jim Adamski, housing director, told Council they have been working with the Aspen/Pitkin Employee Housing Inc. to produce an expansion of Hunter Longhouse. Adamski said he found it is practical to finance this through the housing authority rather than the non-profit group because of the pending legislation and new tax bill. Adamski said one issue is the intergovernmental agreement of 1984, which created a multi-jurisdictional housing authority. Adamski pointed out the first resolution will incorporated into the intergovernmental agreement that the debt will be picked up by the city or county housing authority if the joint housing authority is dissolved. Adamski told Council in order to finance any project, that clause has to be in the agreement to be in accordance with legislation. Tim Whitsitt, county attorney's office, told Council any bond purchasers will want to know that provisions are made for payment of bonds. Councilman Tuite moved to adopt Resolution #41, Series of 1988; seconded by Councilman Isaac. All in favor, motion carried. 24 Regular Meeting __ Aspen City Council November 14, 1988 Mayor Stirling said the housing authority is the only one that has no elected officials on the board. Mayor Stirling said there is interest on Council's part to reconstruct it so there is a n elected official on the board. Harry Truscott, housing board, said the state statutes say either the Council is the housing board or they have to appoint a board. Mayor Stirling said Council will discuss this with the Commissioners. Adamski told Council deed restricted property is not marketable. Adamski said the Commissioners have already approved both of these resolutions. Whitsitt said in 1985, Hunter Longhouse was going to a private non-profit corporation out of the hands of the government and it was necessary to put a deed restriction on the project. Whitsitt said now the property has been leased to the housing authority. Whitsitt said the private non-profit group will be deeding its interest back to the housing authority. Whitsitt said the housing authority only has the authority to do low and moderate income projects. Whitsitt said it becomes redundant to also deed restrict the project. Whitsitt said the bond consultants have told the housing authority it is almost impossible to market the bonds with a deed restriction on the project. Whitsitt told Council the Commissioners made the release contingent on the issuance of bonds by the housing authority. Mayor Stirling said he is worried about the risk of losing the project. Mayor Stirling said the project has already needed an infusion of cash. Truscott pointed out that money was like a down payment on a commercial market. Truscott said the $250,000 is part of the program and is being paid back. Truscott said by the end if the 10th year, they will have a fund of about $390,000 that could be used to refinance the project. Councilman Isaac moved to adopt Resolution #42, Series of 1988, as amended; seconded by Councilman Tuite. Councilman Tuite asked if the city will run into the same problem with the Marolt project. Adamski said the city will run into this problem any time a revenue bond is used for a deed restric- ted property. Whitsitt said the housing authority can only act to the extent of it's authorization and by statute it is authori- zed only to operate low and moderate income housing. Truscott said the only way this project can be lost f or moderate incom e housing would be for the housing authority to sell it. Truscott told Council the only way to get tax exempt bonds is to build low and moderate income housing. The housing authority would need the city's approval to sell any project. All in favor, motion carried. 25 Rectular Meeting Aspen City Council November 14, 1988 Mayor Stirling moved to end the meeting and to continue the water trust agreement, encroachment license, drug and alcohol policy and fitness wellness program to November 28; seconded by Councilman Gassman. All in favor, motion carried. Council lef t the meeting at 9:00 p.m. ~~~~ Kathryn Koch, City Clerk 26