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HomeMy WebLinkAboutminutes.council.20050523Regular Meeting Aspen City Council May 23~ 2005 CITIZEN COMMENTS ..................................................................................................... 2 COUNCILMEMBER COMMENTS .................................................................................. 2 CONSENT CALENDAR ................................................................................................... 2 · Resolution #34, 2005 - Police Vehicle Lease Agreements .................................... 3 · Minutes - May 9, 2005 ........................................................................................... 3 RESOLUTION #35, 2005 - Contract - Study of Global Warming Impacts on Aspen ...... 3 RESOLUTION #36, 2005 - Little Nell Housing Mitigation Off-site at Heatherbed ......... 3 ORDiNANCE #26, SERIES OF 2005 - Code Amendment Recycling Initiatives ............ 4 ORDiNANCE #29, SERIES OF 2005 - Galena and Main Subdivision ............................ 4 ORDINANCE #30, SERIES OF 2005 - Supplemental Appropriations ............................ 9 ASPEN HISTORICAL SOCIETY DISTRICT SERVICE PLAN ..................................... 9 REUSED WATER PROJECT - Feasibility and Financing Proposal .............................. 11 Regular MeetinR Aspen City Council May 23~ 2005 Mayor Klanderud called the meeting to order at 5:00 p.m. with Councilmembers Semrau, Richards and Torre present. Mayor Klanderud announced the city's Arbor Day festivities were held over the weekend and Mayor Pro Tem Rachel Richards read a proclamation at that ceremony. 175 trees were given away to help continue Aspen being a Tree City U.S.A. CITIZEN COMMENTS There were no comments COUNCILMEMBER COMMENTS 1. Councilwoman Richards reminded everyone there is a runoff election for one Council seat, which will be held June 7th. 2. Councilwoman Richards noted the recycle center needs to be cleaned up. Steve Barwick, city manager, said he will take care of this. 3. Chris Bendon, community development department, introduced Alex Evonitz, the community development department engineer, and Sarah Adams, a summer intern, who is working on a graduate degree in historic preservation. Ben Gagnon is joining staff as a special projects planner. 4. Councilman Torte announced the S-curve demonstration started today. There has been a lot of apprehension about the demonstration. Councilman Torre said this is an experiment to find out how much re-routing the traffic alleviates congestion on the S- curves. Councilman Torte said he hopes the citizens work with the city on this experiment. Mayor Klanderud thanked Lynn Rumbaugh and John Krueger for doing a great public relations job. 5. Mayor Klanderud handed out the ACRA cards for the summer marketing campaign highlighting all the best in Aspen. 6. Councilman Torre said he will be going to NWCOG meeting this week in Vail and asked Council for comments on proposed agenda topics, if they have any. 7. Mayor Klanderud reported the RFTA board met 10 days ago. The issue of the rail salvage came up and RFTA affirmed its previous decision to move forward with the rail salvage. CONSENT CALENDAR Councilman Torre pulled Resolution #35, Contract Study of Global Warming Impacts on Aspen, and staff requested Resolution #36 Little Nell Housing Mitigation be removed from the consent calendar. 2 Regular Meeting Aspen City Council May 23~ 2005 Councilwoman Richards moved to approve the consent calendar; seconded by Councilman Semrau. The consent calendar is: · Resolution #34, 2005 - Police Vehicle Lease Agreements · Minutes - May 9, 2005 All in favor, motion carried. RESOLUTION #35~ 2005 - Contract - Study of Global Warming Impacts on Aspen Councilman Torre said he is hesitant to vote for this contract without having a discussion with the newly hired global warming specialist. Councilman Torre said he does not want to get ahead and not partner with the correct other parties. The scope of work might be enlarged to encourage other participants. John Worcester, city attorney, said staff wanted Council to consider this contract because the assessment study should be done as soon as possible. The study will take 10 months. The global alliance members reviewed the scope of work, recognizing that it will be tweaked before it is fully implemented. A full day retreat with the city's global warming specialist has been scheduled for early June to go over this scope of work as well as what he will be doing. Womester pointed out the Aspen Global Change Institute will be staffing this study; John Katzenberger's time is free; a professor from CU is donating his time. This is a 10-month project and the details will change. Worcester noted the specific impacts on Aspen will not be known until this study is done. Councilman Torre said he would prefer to hold offfor several months and see if there are more interested partners. Worcester said staff would like this study done before there is the major global warming conference. Councilwoman Richards moved to approve Resolution #35, Series of 2005; seconded by Councilman Semrau. All in favor, with the exception of Councilman Torre. Motion carried. RESOLUTION #36~ 2005 - Little Nell Housing Mitigation Off-site at Heatherbed James Lindt, community development department, told Council the request to pull this off the Council agenda comes from the applicant, who would like to make an amendment to the conditions in this resolution. Lindt noted that both staff and the housing authority agree with this amendment. Lindt pointed out the condition in the original resolution did not allow the applicant to bank mitigation credits for future development in deed restricting the two-bedroom unit at the Heatherbed. This condition came from the housing authority whose main concern was administration of the credit. The housing authority believes they can handle this as long as a document is filed. Lindt told Council it is consistent with the code to deed restrict on off site unit as long as it is within the urban growth boundary. 3 Regular Meeting Aspen City Council May 23~ 2005 Councilman Torre moved to approve Resolution #36, Series of 2005, with the amended language about the ability to track the mitigation credits; seconded by Councilwoman Richards. All in favor, motion carded. ORDINANCE #26~ SERIES OF 2005 - Code Amendment Recycling Initiatives Councilwoman Richards moved to continue Ordinance #26, 2005, to June 13; seconded by Councilman Torre. All in favor, motion carried. ORDINANCE #29, SERIES OF 2005 - Galena and Main Subdivision Chris Bendon, community development department, told Council this is unit lA of the Galena condominiums at 426 East Main street. The existing building is a two-level commercial building, one level above grade. The request is to add on to have 3 levels above grade and one level below grade. The street level will be commercial; it can be retail or office. Council is being asked to approve a subdivision for a multi-family building, to accept the growth management scoring from P&Z and to exempt the affordable housing units. The scoring is for one free market residence. There will be an overall reduction in commercial space. There are three category 2 affordable housing units proposed; these can be rented. There is a free market unit on the top level. There are two parking spaces in the alley for the free market unit. There is parking mitigation, approved by P&Z, for $105,000 and a donation to the car share program of $20,000. P&Z recommended the entire sum, $125,000, be donated to the car share program. Bendon said there are voluntary contributions of $5,000 to RFTA, to the city's recreation center of $7,000 and to the historic society $5,000. Bendon pointed out this is located in the commercial core district and complies with all zoning requirements of that zone. The project went through the city's old growth management competition. Bendon said in this section, there was a deadline of November 1st SO that everyone applied at the same time. This application was submitted for that deadline. The free market unit went through scoring and received a passing score, and Council is being asked to accept that score. Council is also being asked to exempt the affordable housing from growth management scoring. This project received conceptual approval from P&Z and has received special review approval from P&Z for parking mitigation and residential design waivers. The approval for moving the commercial to street level is an administrative review and has received approval pending Council approval. Bendon reminded Council there were some questions on their discretional authority. Bendon said the process for the growth management approval for the free market unit is scoring by P&Z. There is a public hearing before Council who must allocate the allotments between eligible applicants. Bendon stated this project is eligible for growth management allotments and staff does not feel this is a discretionary review but is an administrative action. The exemption from growth management for affordable housing has two steps; referral comments from housing and a recommendation from P&Z. Council has criteria they review before determining ifa project is exempt. This, too, is 4 Regular Meeting Aspen City Council May 23~ 2005 discretionary. The last is subdivision review, which is required because this is multi- family housing. This also requires public hearings with P&Z and with Council. There are criteria for this review; these criteria limit Council's discretion. Bendon pointed out exhibit C to the memorandum are a series of questions from adjacent property owners. There are responses in the memorandum. Bendon told Council staff feels this is a good project, which received unanimous recommendations or approvals from HPC and P&Z. The project complies with city zoning and with the review criteria. Glenn Horn, representing the applicant, presented affidavit of notice for the record. Horn reiterated this is an expansion of the Main and Galena building to a 3-story building, which will include 3 affordable, and 1 free market units. Horn said this project is consistent with the Aspen Area Community Plan; 62% of the bedrooms are affordable bedrooms and 75% of the units are affordable. This is not automobile dependent and locates employees right in town. There is a funding commitment to the ride share program. There are no variations from the CC zone being requested. This building is below the height limit and below the floor area limit. Horn pointed out in almost every category, this project received above average scores from P&Z. Steven Holly, architect, referenced landscape plan #18 showing the location of the building, the area the building would encompass. Holly said they have tried to fit this building into the streetscape, the historic Courthouse and the bank building to the west, referring to massing study 12B. The lower level will be storage to maximize the retail space along Main street. On the second level, there are 2 two-bedroom affordable units and a studio with a deck. The free market unit is the entire third floor. Holly said they have committed to a sustainable development and to exceeding the model energy code by 10%. Holly referred to lower level plan 3, Main street plan 4, second level plan 5 and third level plan 6. Councilwoman Richards said she would lik.e staff to answer how the height is measured and how it relates to the building code. Bendon told Council staffhas reviewed the plans; it complies with the way height is measured, which is on a vertical plane from the lower of either existing grade or developed grade to that portion of the building. When one is in the courtyard, the building is measured from there. On the Galena and Main street, those portions are measured from the sidewalk. Holly illustrated on the south elevation rendering 7A and west elevation #11, an elevation as if one was standing against the bank in the courtyard. At the Main street side, the tallest portion of the roof is 37'6" and it drops down in courtyard to 41'7". Councilwoman Richards asked about the administrative process. Bendon said there was suggestion that this applicant could not apply for rezoning for a certain period of time. The application is not for a rezoning. The election in November 2004 addressed the zoning of the property with a PUD overlay and asked the voters whether that should be repealed. There is a limitation against a PUD overlay; however, there is no request for a PUD overlay. 5 Regular Meeting Aspen City Council May 23~ 2005 Mayor Klanderud opened the public hearing. Sharon Engle Ruhnau, adjacent property owner, said the administrative issue is whether this is a resubmission or a new submission. The project is identical to the one that was rejected by the voters in November 2004. The HPC treated it identically; approved it in its original form and continue to approve it based on the original submission. This should wait one year before the plan is resubmitted. Ms. Ruhnau said they have legal issues that have not been responded to and were told to address these issues in a public forum. Ms. Ruhnau questioned the accessibility of the building regarding parking on Galena and Main. Ms. Ruhnau said every city agency stated it was not their issue but is an issue of enforcement. Ms. Ruhnau said she would be happy to become a complainant against the city with the ADA. Ms. Ruhnau gave Council a copy o the settlement agreement between the United States and the town of Vail regarding accessibility. David Rulmau said although the project will be ADA accessible, one cannot get to the project. Ruhnau said the parking should either be eliminated or it should be parallel parking along this section of North Galena. John Worcester, city attorney, said it is true the voters overturned an ordinance on this property; however, it is staff's position this is not the same project that was repealed by the voters. The only thing the voters repealed was the rezoning. There is no rezoning being requested as part of this application. The Charter states an ordinance repealed by the electorate may not be re-enacted for a period of 6 months after the date of the election, which date has passed. Worcester told Council he responded to the Ruhnaus that this is a quasi-judicial proceeding and he could not respond to their inquiries because it is only fair for the applicant to be able to respond as part of the public hearing. Worcester said the building is ADA accessible. The sidewalk is not the responsibility of the applicant but of the city. If city cars are blocking access, these cars should be moved. Ms. Ruhnau read from the Municipal Code about an applicant not being able to re-apply after denial of that project. Worcester reiterated staff has determined what was denied in the original application was the rezoning; there is no request for rezoning. The Charter speaks to the issue of when Council can reconsider an ordinance that has been repealed by the voters, which is 6 months. The Municipal Code addresses an ordinance, which has not been approved by Council. June Kirkwood asked if there is to be no open space on Main street. Ms. Kirkwood said she is opposed to this project and would prefer to see the open patch remain. Toni Kronberg noted the city's subdivision criteria include to provide procedures so that development encourages the preservation of important and unique natural and scenic features including but not limited to mature trees, indigenous vegetation or similar geographic features. Ms. Kronberg said the public notice states the applicant will be adding on to the building. Ms. Kronberg said the memorandum to Council states they will be demolishing the building and the public was mislead because adding on and demolishing are two different things. Ms. Kronberg noted the final HPC approval is not until Wednesday. Ms. Kronberg said development in a historic overlay district is covered Regular Meeting Aspen City Council May 23~ 2005 under the code. The historic guidelines have neighborhood character, community character and streetscape. There are no criteria to judge these. Ms. Kronberg entered into the record minutes from HPC and P&Z regarding this project. Ms. Kronberg said one criteria is whether there has ever been a building on this comer. Ms. Kronberg submitted the Sanborn map illustrating there has never been a building on this comer and it is an important part of Main street. Putting a structure on this comer will take away what Aspen stands for. Ms. Kronberg entered into the record a letter from the County Commissioners questioning the impact of this building on the historic courthouse. Ms. Kronberg said this building is not appropriate. Chuck Guinn stated he supports this project; it fits the block in the feel and texture. It will bring business opportunities. Sue Geist said she has concerns about this building; the voters said they do not want to see a building of this site on the comer. Ms. Geist stated the community would still vote against this building. Bob Daniel told Council he has been a tenant of this building for 12 years. Daniel stated in developing the AACP, there was tension between housing, growth, and open space as the community looks for opportunities to house employees and to lessen the dependence on the automobile. Daniel asked Council to consider the benefit of this project, which is proximity to the commercial core, ground floor retail space, and affordable housing. Rick Jones, ACRA chair, stated the ACRA has taken no vote on this project. The ACRA is appreciative of the building owner's attempt to relocate the visitor center to this location. The ACRA has no relationship to the building; there is no proposed visitor center for this building. Jones stated that the landowner has complied with all roles and regulations for this building. Jones said he supports this project. Mayor Klandemd closed the public hearing. Gideon Kaufman, representing the applicant, entered into the record a letter from Gary Beach in support of this project. Kaufman reminded Council they are to review and approve certain aspects of this project. HPC and P&Z have their approval roles. Kaufman said this project is 100% different than the previous project. The previous project was a COWOP project, a partnership between the city and the developer. This COWOP process exempts a project from city requirements. This project competed in the growth management process and received a score from P&Z. Kaufman pointed out this is the first commercial project in 12 years to pass the threshold score at P&Z. This project received high scores and received unanimous approval from P&Z. Kaufman stated that this is not open space; it is private property. Kaufman said the applicants could have doubled the FAR; they did not. The city passed a code amendment, which raised allowable heights. The applicant did not go to the maximum of the new allowable heights. Kaufman said this is not a demolition; the existing building will get a new skin to match the rest of the project. The applicants are not demolishing the existing building. Kaufman said the city code allows trees to be relocated or improved and the applicants are complying with that section of the code. 7 Regular Meeting Aspen City Council May 23, 2005 Councilman Semrau said Council is reviewing whether the affordable housing is exempt from GMQS, to accept the GMQS scoring from P&Z and to approve the subdivision. Bendon said those are the 3 issues for Council to consider. Councilman Torte asked about the 1 year versus 6 months. Womester said the land use code refers to projects denied by Council as part of the land use review process. An applicant cannot bring back the same project for 1 year if Council has rejected that application. Worcester said the Charter addresses an ordinance repealed by the electorate and states it shall not be re- enacted for a period of 6 months after the date of the election. The Charter takes precedence over the land use code. Councilwoman Richards noted the physical structure of this application is the same as before. It is the uses and the zoning that are not the same. The previous project had no affordable housing; this project has 3 units. This project does not require a rezoning. Councilwoman Richards said a community sentiment was expressed on the vote in November. The sentiment may have been against the building, or against the visitors' center in that location. Councilwoman Richards said she cannot find a legitimate reason to vote against this application. Councilwoman Richards said the city cannot afford to buy up every parcel that might be built upon. Councilwoman Richards noted this application is below the height limits, it has mitigated for every issue required. Councilman Semrau said the police can enforce keeping the sidewalk on North Galena unobstructed. Councilman Semrau agreed the vote in November was about a visitor center and that the owner has a right to build a building in this location. Councilman Semrau stated people have a right to improve their property. Mayor Klanderud asked if the view of the Courthouse is obstructed going east on Main street; this was an issue during the COWOP process. Bill Poss showed exhibit 12, which illustrates that the Courthouse is visible from mid-block. Mayor Klanderud agreed the cars parked on North Galena obstructing the sidewalk must be enforced. Mayor Klanderud stated she understands concern over loss of a view; however, each person has a right with their personal property as long as they are within the code requirements. Mayor Klanderud agreed this is not the same building that was presented to the voters in November 2004. Mayor Klanderud noted the city's transportation fund is facing declining revenue and suggested putting the $125,000 into the transportation fund rather than solely car share. Bendon told Council the requirement is $20,000 for the car share program and $105,000 for parking mitigation. P&Z indicated they would like the entire amotmt to go to the car share program. Council need not make the decision at this meeting. Mayor Klanderud said the fact that this project has been done within the code requirements without any requests for variances and there have been monetary commitments made to the ARC and to the historical society is commendable. Mayor Klanderud supports this project; it represents why the city is trying to do in the core with infill and with vitality. Councilman Semrau moved to adopt Ordinance #29, Series of 2005, on second reading; seconded by Councilwoman Richards. 8 Regular Meeting Aspen City, Council May 23~ 2005 Councilman Torre said there is sentiment attached to this comer. Councilman Torre said he will vote no because of the historical integrity of Main street and the AACP identified Galena thoroughfare to connect Rio Grande to the downtown. Councilman Torre said this is not a structure he would like to see on Main street. Councilman Torre said the plans for the Rio Grande and the thoroughfare are not yet completed. Roll call vote; Councilmembers Richards, yes; Semrau, yes; Torre, no; Mayor Klandemd, yes. Motion carried. ORDINANCE #30~ SERIES OF 2005 - Supplemental Appropriations Paul Menter, finance director, noted this ordinance contains all the savings carry forward requests from departments and the capital projects that have not been completed. The ordinance also contains supplemental requests already reviewed by Council. Michael Phillips, budget director, said $18.3 million of this total is capital projects approved in 2004 and not yet completed. The savings are $2.4 million and $5.8 million are requests Council has reviewed but have not been appropriated. Mayor Klandemd opened the public heating. Toni Kronberg said there are no details on what is being increased. Ms. Kronberg asked what the $18.3 million covers. Ms. Kronberg asked if this ordinance covers any improvements to the swimming pool. Ms. Kronberg asked what the costs for Burlingame will be. Menter said phase I total costs are projected at $40 million including infrastructure. Councilman Semrau asked if the city received anything in writing from Pitkin County about reimbursement for the animal shelter. Menter told Council the BOCC will discuss that this week. Steve Barwick, city manager, stated if the county does not put in $200,000 towards the animal shelter, it will be brought back to Council. The city is not on the line for $600,000 unless all the other monies are in. Councilman Semrau stated he would like to see the original budget for the animal shelter, which were $2.4 million and how this project got to $3.235 million. The change orders do not have explanations. Council agreed they would like to see the explanations and change orders. Councilman Torre moved to adopt Ordinance #30, Series of 2005, on second reading; seconded by Councilman Semrau. Roll call vote; Councilmembers Richards, yes; Torre, yes; Semrau, yes; Mayor Klandemd, yes. Motion carried. ASPEN HISTORICAL SOCIETY DISTRICT SERVICE PLAN Mayor Klandemd said the city has been left out of this process and Council sent a letter to the Commissioners outlining the city's concerns. Mayor Klandemd reiterated that the Historical Society has had funding problems. Last fall, the County gave $250,000 and the city appropriated $76,000. The county directed the Historical Society to come back with a plan for a stable funding soume for the future. The county also requested a repayment of some of the $250,000. Mayor Klandemd said she envisioned discussions Regular Meeting Aspen City Council May 23~ 2005 between the city and the county before the district service plan got this far. If this is to go to the voters, the city should be strongly behind the plan. Mark Fuller said the Historical Society had a choice of reducing their activities to match their income, which would mean shutting the doors; continued funding requests from the city and county; increased fund raising efforts, which they have done; or form a special tax district to provide public funding that would be accountable to the historical society's entire constituency. This district would raise sufficient money to provide the historical society with a stable funding base and would allow them to fund raise and to look for other sources of funding. The tax district is a safety net for the Historical Society while they grow other sources of funding. Fuller said the concept of a parks and recreation district was dictated by state statute, as there are no district solely for the purpose of historic preservation. Fuller noted historic preservation is an element of the authority given to a parks and recreation district. Fuller told Council the process is to get this question on the ballot through the county commissioners. The city does not have a formal role in this election issue. Fuller noted that staff responded to concerns of Council. Mayor Klanderud asked if this district will have an end date. Fuller said them is no sunset provision so the district will stay in place. The anticipated funds from this district are $500,000 and the Historical Society's budget will be $675,000. Councilwoman Richards asked if the service plan should state that the Historical Society will not compete for GOCO funds with the city. Fuller said the city was concerned about the annual distribution of GOCO monies and the city was concerned that the annual monies would be halved if this district was formed. The Historical Society indicates it is willing to forego that distribution; however, they have not indicated an opportunity to compete for grant monies. Councilwoman Richards agreed with that intent and that it should be included in the service plan. Councilwoman Richards asked what will happen when the city chooses to pursue a typical recreation district. Councilwoman Richards suggested an addition to the service plan that the city make seek approval for a recreation district, requiring a vote of the public, and a modification of the Historic District's service plan. Councilwoman Richards said the city may not be able to fund all its recreation programs in the future without a recreation district tax approval. Fuller said the service plan can acknowledge that the city may at some point drive a request to modify the service plan. Mayor Klanderud noted Snowmass Village is included in this district, and they may have their own plans for a special district in the future. Jackie Kasabach, president of the Historical Society, said it is difficult to raise money without staff to carry that out. Ms. Kasabach said the Historical Society needs operating money to maintain the properties that they own. The state historical society only funds capital improvements. Councilwoman Richards supports this effort. The Historical Society is unique among the valley non-profit groups; it maintains Independence ghost town and Ashcrofi, as well as a historical collection. Councilwoman Richards said she would like an acknowledgement on the GOCO funding. 10 Regular Meeting Aspen City Council May 23, 2005 Mayor Klanderud asked if fund raising has decreased since announcement of the formation of this district. Fuller said the fund raising has actually increased. One reason the proposed mill levy is so low is that the Historic Society will keep cultivating their donor base. Mayor Klandernd said her concerns have been what is the best and most long lasting way to keep the Historical Society operating and viable. Ms. Kasabach said they feel they cannot raise enough funds through private donations in a small community to operate a Historic Society. Steve Barwick, city manager, suggested an additional paragraph to acknowledge possible future need to modification the service plan to include actual parks and recreation services in cooperation with the needs of the municipalities within the district and the other concerns listed in the city's letter. Councilwoman Richards moved support from the City Council to support for the Historic Society's plans to go forward with a special district to accompany their fund raising efforts and to continue their programs; seconded by Councilman Torte. All in favor, motion carded. REUSED WATER PROJECT - Feasibility and Financing Proposal Phil Overeynder, water department, reminded Council staff presented a reclaimed water system proposal at a work session in April. Council's direction was to move forward with the design of that system to coincide with construction of Bar/X, Burlingame Village, the Maroon Creek bridge and work at the golf course. Council also requested a detailed financial program. Overeynder said the reclaimed water system would take up to 1.5 million gallons of water, currently being discharged into the river at the Sanitation District plant, take it to a pump station, up through the ABC, across Burlingame, across Zoline, across the Maroon Creek bridge and onto the golf course. There are possibilities of spurs along the way, like Tiehack ski area and the Maroon Creek golf course. The reasons for this are that the golf course irrigation system is to be replaced and this is an opportunity to upgrade the system to accept reclaimed water. With this system, more water will be lefi in the stream. There are water savings up to 16 million gallons/year at the golf course; this will increase the efficiency of the golf course system; them will be a reduction in use of fertilizers. This is a potential source of water for irrigating the entrance to Aspen. The city will bc using the water fights in the Holden/Marolt ditch more effectively. This will be effectively increasing the capacity of the water system. Steve Aiken, golf department, told Council the irrigation system is 26 years old and has fallen down in efficiencies. Aiken said with the installation of an efficient water system, they will save up to 17 million gallons/year. This will help irrigate more of the golf course, create a higher level playing surface, and eliminate some of the spots that have not been irrigated. Aiken said there are code regulations in using reclaimed water; the piping will be colored purple to comply with national regulations. The current system uses ditch water to irrigate the golf course. The reclaimed water will have a filtration technology as well as contain chlorine. Aiken said they hope to bid this project in the fall 2005. In 2006, there will be no construction from June 15 to Labor Day. The project should be complete in 2007. The system will be designed so that the ditch water can still be used. I1 Regular Meeting Aspen City Council May 23, 2005 Paul Menter, finance department, told Council the project has been divided into two elements - the supply infrastructure $1,040,000 and the golf course system itself- $2 million. Menter recommended financing this project and noted 2% of the bonds or $55,000, has been built in for a total project cost of $3,258,000. Menter said this can be financed by a one-time capital contribution from the water department of $500,000 with the rest funded as a parks and open space bond issue. Menter told Council staff spoke to bond counsel about the appropriateness of using voter approved bonds for this. Bond counsel said there is no problem using that for the components of the project related to improving open space, trail, recreation properties and ancillary facilities. Menter said when the ½ cent sales tax was approved; the ballot measure had $38 million as a maximum principle amount of bonds that could be issued. The city currently has $10 million issued against that, which leaves about $28 million. This tax sunsets in 2025 so there is 20 years of amortizing left. The long range plans indicate a need for $18 million in open space acquisition. Mayor Klanderud asked if the open space board has reviewed this proposal. Steve Barwick, city manager, said this will not affect the city's ability to finance open space at all. Councilwoman Richards said she would like comments from the open space board. Councilwoman Richards agreed it would be wise to move forward since the golf course irdgation project needs to be replaced. Also the interest rates will not be low for a long time. Councilwoman Richards said she is concerned about the repayment sources and that no monies are coming out of the golf course; the water fund should not be paying entirely for the golf course irrigation system. Steve Barwick, city manager, told Council the long range plan contains $50,000 from the golf course toward this project. Barwick suggested Council add a statement that if monies are available from the golf course, that they pay this project back. Staff feels this is the best use of the water savings money; the bang for the buck is larger than other water savings projects. This is a massive amount of water savings and small projects could not add up to 17 million gallons savings. Howie Mallory said this is an important project that not only benefits the golf course but also enhances the cross country ski system. Council agreed the project should go forward. Councilwoman Richards said she would like to look at the repayment options. Councilman Torre moved to go into executive session at 9:00 p.m. pursuant to C.R.S. 24- 4-402(4)(a) purchase and acquisition of real property; seconded by Councilwoman Richards. All in favor, motion carded. Councilman Torre moved to come out of executive session at 9:30 p.m.; seconded by Councilwoman Richards. All in favor, motion carded. Councilman Semrau moved to adjourn at 9:30 p.m. seconded by Councilwoman Richards. All in favor, motion carried. 12