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HomeMy WebLinkAboutminutes.council.19831114Regular Meeting Aspen City Council November 14, 1983 JOINT MEETING WITH COUNTY COMMISSIONERS Commissioner Madsen called the meeting to order at 4:10 p.m. with Commissioners Blake, Klanderud, and Child and Councilmembers Walls, Blomquist, Collins, Knecht and Mayor Stirling present. 1. Lease Agreement/Bonds for bus facility and buses. County Finance Director Tom Oken told the Boards the county has already taken action on first reading. Kirchner/Moore and E. F. Hutton purchased the bus bond issue at an interest rate of 8.67 per cent,which is where the staff hoped it would be. The memorandum outlined the issue and the terms. The issue of $1,500,000 is larger than originally discussed because the transit board wants breathing room for their first year of operations. Oken said when the bonds were issued, the staff was not certain about the agreement with the Skiing Company and second, the transit board is concerned about a poor snow winter. This bond issue provides $113,000 to the agency. Oken told the Board the closing on the bonds won't take place until the end of December because the county has a 45 day referendum period during which any action can be challenged. Oken said the other action which has to take place is the adoption of a lease agreement between the city and county for the method by which the city makes the debt payments out of the seventh penny sales tax fund. Oken said the staff has agreed on the final draft of this agreement, which has to get apprOval of UMTA. This lease agreement affects assets the county acquired, so it has to get UMTA approval. The city will have to have first and second reading of an ordinance. Mayor Stirling asked what the principle payments will be. Oken said they will average about $210,000 a year. In the first year, only interest will be paid for. The interest rates range from 6¼ to 9.3 per cent in 1996~ Mayor Stirling asked if there is an agreement between the transit agency and the Skiing Company. Commissioner Klanderud said no. Mayor Stirling asked if the agency had a budget for 1984. Ms. Klanderud said there is a budget. Mayor stirling asked if the budget indicated the agenc~ needs the $113,000 contingency fund. Ms. Klanderud said the agency feels it is not prudent to begin operations so close to the line. Continued Meeting Aspen City Council November 7, 1983 Mayor Stirling said he wanted to have a public hearing on this issue. The Council reduced the arts awards by 25 per cent, they reduced the non-profit requests by 10 per cent. Mayor Stirling said he felt the city should spend money more efficiently. Mayor Stirling said the Council does not know what they are going to spend the proposed increase for. Councilman Blomquist moved to set the mill levy at 5.0 mills with all increases funds reserved for capital improvements; seconded by Councilwoman Walls. All in favor, with the exception of Councilman Knecht and Mayor Stirling. Motion NOT carried. Councilman Collins moved to adopt Resolution #34, Series of 1983, setting the mill levy au 3.88 for 1984; seconded by Councilman Knecht. All in favor, motion carried. ORDINANCE #63, SERIES OF 1983 - Emergency Ordinance Cancelling Election Councilman Knecht moved to read Ordinance #63, Series of 1983; seconded by Councilman Blomquist. All in favor, motion carried. ORDINANCE #63 (Series of 1983) AN EMERGENCY ORDINANCE CANCELLING THE SPECIAL ELECTION SCHEDULED TO BE HELD ON TUESDAY, NOVEMBER 15, 1983, AND RESCINDING AND REPEALING RESOLUTION #28, SERIES OF 1983, AND ORDINANCE #50, SERIES OF 1983 was read by the city clerk Councilman Knecht moved to adopt Ordinance #63, Series of 1983, on first reading; seconded by Councilman Collins. Roll call vote; Councilmembers Blomquist, aye; Collins, aye; Knecht, aye; Walls, aye; Mayor Stirling, aye. Motion carried. Council called a special meeting for Thursday, November 10, 1983, at 5:00 p.m. Councilman Knecht moved to adjourn at 5:40 p.m.; seconded by Councilman Collins. Ail in fair, motion carried. , City Clerk Special Meeting Aspen City Council November 10, 1983 Mayor Stirling called the meeting to order at 5:09 p.m. with Councilmembers Walls, Blomquist Collins and Knecht present. Councilman Knecht moved to adopt Ordinance ~63, Series of 1983, on second reading; seconded hy Councilman Collins. Roll call vote; Councilmembers Blomquist, aye; Collins, aye; Knecht, aye; Walls, aye; Mayor Stirling, aye. Motion carried. Councilwoman Walls moved to adjourn at 5:10 p.m.; seconded by Councilman Collins. All in favor, motion carried. Regular Meeting Aspen City Council November 14, 1983 JOINT MEETING WITH COUNTY COMMISSIONERS Commissioner Madsen called the meeting to order at 4:10 p.m. with Commissioners Blake, Klanderud, and Child and Councilmembers Walls, Blomquist, Collins, Knecht and Mayor Stirling present. 1. Lease Agreement/Bonds for bus facility and buses. County Finance Director Tom Oken told the Boards the county has already taken action on first reading. Kirchner/Moore and E. F. Hutton purchased the bus bond issue at an interest rate of 8.67 per cent,which is where the staff hoped it would be. The memorandum outlined the issue and the terms. The issue of $1,500,000 is larger than originally discussed because the transit board wants breathing room for their first year of operations. Oken said when the bonds were issued, the staff was not certain about the agreement with the Skiing Company and second, the transit board is concerned about a poor snow winter. This bond issue provides $113,000 to the agency. Oken told the Board the closing on the bonds won't take place until the end of December because the county has a 45 day referendum period during which any action can be challenged. Oken said the other action which has to take place is the adoption of a lease agreement between the city and county for the method by which the city makes the debt payments out of the seventh penny sales tax fund. Oken said the staff has agreed on the final draft of this agreement, which has to get approval of UMTA. This lease agreement affects assets the county acquired, so it has to get UMTA approval. The city will have to have first and second reading of an ordinance. Mayor Stirling asked what the principle payments will be. Oken said they will average about $210,000 a year. In the first year, only interest will be paid for. The interest rates range from 6¼ to 9.3 per cent in 1996. Mayor Stirling asked if there is an agreement between the transit agency and the skiing Company. Commissioner Klanderud said no. Mayor Stirling asked if the agency had a budget for 1984. Ms. Klanderud said there is a budget. Mayor Stirling asked if the budget indicated the agency needs the $113,000 contingency fund. Ms. Klanderud said the agency feels it is not prudent to begin operations so close to the line. ~u~ ~vl~n9 Aspen ulty uouncl± NovemDer 14, 1983 Councilman Collins asked what the criteria in the proposal for hiring local people was. Funnger said it was tied to a percentage; the target set by the staff was 10 per cent, and GE committed to 18% per cent. Blake moved to approve Fuller's course of action with Hunter construction being added to the short list; seconded by Child. All in favor, motion carried. COUNCIL MEETING MINUTES Councilman Knecht moved to approve the minutes of October 17, 24, 1983; seconded by Councilwoman Walls. All in favor, motion carried. CITIZEN PARTICIPATION 1. George, representing Trout Unlimited, urged Council to act to protect Ruedi reservoir and the Frying Pan river. Trout Unlimited. has been monitor proposals for water sales out of the reservoir, have met with the city and county. Trout Unlimited said they find the preferred alternative selected by the BOR unacceptable. This is the proposal to sell 59,000 acres feet of water in second round of sales. Trout Unlimited feels that Ruedi and the Frying Pan are critical aspects of the quality of living. The BOR's alternative for maximum sales will degrade the habitate. The Frying Pan is a nationally recognized resource; it is one of the finest trout steams in America. George said there is a public hearing on November 17th in Glenwood and would like someone from Council to be there. Councilwoman Walls said she was planning on attending and making a presentation for the city. 2. Roby Albouy gave Council a memorandum about leasing the remaining space in the Wheeler Opera House. Albouy said he feels this is unwise for Council to allow this to happen just when the city is beginning to consider the city's role in the resort and may have a centrally located visitor's bureau. Albouy said the City should have pride in one of the few remaining historic buildings. Albouy said it would cheapen Aspen's jewel to lease part of it out as commercial space. Mayor Stirling said the Council will be meeting to consider the city's role in the resort on November 21st. COUNCILMEMBER COMMENTS 1. Councilwoman Walls said she had submitted to Council a memorandum on the situation in the city with pay inequities. Councilwoman Walls said she would like to ask the City Manager to come up with some plan to address this problem. Councilwoman Walls said she would like this on the November 28th agenda to discuss some proposals to bring wages of the city's women employees up to the standard of equality. Councilwoman Walls said she would be glad to work with the City Manager and Personnel Director on this plan. Councilwoman Walls moved to direct the staff to work on this problem;seconded by Council- man Knecht. All in favor, motion carried. 2. Councilwoman Walls said the Council should consider a substantial wage increase in particular for animal control. Councilwoman Walls said the situation is really bad in that department. This can be discussed at the next Council meeting also. 3. Mayor Stirling said the Council will meet November 30th in a work session for Arts West and the Rio Grade. This will be at 5 p.m. 4. Mayor Stirling said the CCLC has requested a work session on the lighting program for downtown. This was scheduled for December 5 at 5 p.m. 5. Councilman Collins said he would like the city-vehicle use policy put on the November 28 agenda and would like more information from staff before this meeting, ORDINANCE #51, SERIES OF 1983 - Water Rate Increase There is a memorandum from the finance director in the packet. Sheree Sonfield, finance director, reminded Council there is a program in the water department primarily for senior citizens on fixed incomes. Right now about 20 senior citizens are given a reduc- tion in the water bill because or hardship. Councilman Blomquist suggested an amendment to the ordinance that for residential and multi-family rate for July and August be computed as in the ordinance, and then discounted to the March payment as an inducement to summer irrigation and to keep Aspen beautiful in the summer. Councilman Blomquist said many residents have talked about the heavy costs of watering lawns and as the rates increase, they are discouraged from taking proper care of their lawns. Mayor Stirling opened the public hearing. Mr. Elder said it is a shane that at the source of supply, people have water rates increases, especially senior citizens on fixed incomes. Mr. Elder said his wages do not go up and everything else is going up. Mr. Elder said the water company has been making money and the city has been robbing Peter to pay Paul. Roby Albouy seconded this statement. Mayor Stirling said the water management plan adopted in 1981 included increases to pay for the proposed $9,000,000 improvements to the water system. There were 10 per cent monthly increases in 1982 and 1983 for these improvements. In March 1983 the tap fees were increased. In March 1983, the Council was informed that a 20 per cent increase was probably coming because of reduced tap fees and water activities. City Manager Chapman noted the $9,000,000 bond issue was approved by the voters in 1980. At that time, the proposal did mention to pay for these improvements, there would have to be 50 per cent increases in monthly water rate and the doubling of connect charges. ReguLar Meeting Aspen ~y ~oun~ ~V~LE~ ~, ~O~ Bil Dunaway pointed out the $9,000,000 was to be invested to make up for part of the costs and to take advantage of the interest as income. The Council did not issue it all and did. not have money to invest. Chapman said the Council reduced the bond issue to $2,700,000 because they thought the bond market was going down. However, it went up so that the second bond issue was higher than the first. Chapman said the city did not follow through on the plan as presented, which may accout for the need to speed up the increases. Chapman said the Council was offerred the alternative for an immediate 35 per cent increase in water rates to finance the plan, and the Council preferred to increase in smaller amounts. Mr. Elder asked why the requirement to put meters in. Chapman said this is an incentive for the long range effect of conserving water. Chapman said over time having water paid for on a direct basis saves water; people are more conscious. Chapman said the biggest cost increases a utility faces is building new plat to supply for new demand. The city is trying to provide incentive for metering so that the demand for new facilities will not go up. The city's water treatment plant is 20 years old, running 7 days a weeks, 365 days a year. The plant is at the point in the summer where it is treating above capacity. Chapman said the city exceeds their ability to treat water on a daily basis by about 20 per cent at least 10 days a year. Chapman said the city cannot build a plant just to treat the additional capacity for that time. The new plant should be operational by 1985; at that time, the old plant will be closed and renovated. City Engineer, Dan McArthur, told Council $6,000,000 has been spent in the water management plan; the money has gone into storage tanks, pump stations, water mains, structures that were needed. The $2,000,000 plus remaining is the plant, plant renovation and the Maroon Creek diversion dam. McArthur told Council the projects are on schedule. Jim Moran said this city has used excess funds from the water revenues that could have been set aside to be used for capital improvements in the water system. Moran said the practice of using water revenue surpluses for other purposes has got to be closely looked at. Moran said he hoped this Council will not follow that policy. Mayor Stirling closed the public hearing. Councilwoman Walls said for the last number of years, the city has been charging PIFs so that when needed, money for growth would be there. Councilwoman Walls asked if that money was used in some other way over the years. Chapman said for the last four years, there has not been any funds transferred out of the water fund except to pay the general fund overhead, which all funds do. Ms. Sonfield said she did a research of the books and cannot find transfers out of the water fund. Councilwoman Walls asked what happened to the money collected during the 1970's. Ms. Sonfield said it basically has gone for opera- tions. Councilman Blomquist said the tap fees should go to a reserve fund, and the books should be set up that way. Chapman said to have a reserve fund and to do the improvements so that the city does not have to increase water rates every year, there should be two more increases unless some very large tap fees come in. After that, the rates should be stablized so that the water reserve fund can be built up. Mayor Stirling said one of the objectives of the water management plan was the amount of water projected to be used; less water has been used, and fewer tap fees have been applied for. Mayor Stirling said this increase seems to be penalizing the water users for not using enough water. Mayor Stirling said based on the two previous 10 per cent increases, this 20 per cent increase and the two more proposed 20 per cent increase, this will be an 80 per cent increase in water rates in five years. Mayor Stirling said there is also a proposal for a city county water trust fund with a 5 per cent surcharge on tap fees on top of these increases. Mayor Stirling said he is strongly opposed to this 20 per cent increase. However, without this increase, how is the bond issue going to be paid for. Mayor Stirling said the Council needs to look at other resources to defray this debt. Councilman Knecht suggested since the water management plan has started, the water rates should only be increased 10 per cent at this time. Councilman Knecht said he liked the idea of looking at alternate sources. Mayor Stirling suggested tabling this inder to have research done on alternative sources of funding. Councilwoman Walls said there is a sur- plus in the electric department because the city charges the same as Holy Cross charges its customers. Councilwoman Walls suggested the electric department could be used to lower water rates, which would benefit everyone in the city. Councilman Blomquist said the city'. is trying to use the electric fund six times over. Councilman Blomquist said the electric fund will probably be needed in the future for electric purposes. Councilman Blomquist agreed that a 10 per cent increase is reasonable. Councilman Blomquist said he is concerned about penalizing people who water their lawns in the summer time. Councilman Blomquist said the more places that are left dry, the uglier the town becomesn. Council- man Blomquist reiterated reducing July and August water bill to residential and multi- family properties so that the properties would have an incentive to continue landscaping. Councilman Collins said if all the increases proposed by the staff go into effect, through 1986 the increases compounded would be 151 per cent. Councilman Collins said there is a law of diminishing returns. Councilman Collins said the Council needs to look at the total package of capital improvements. Another provision of the water management program was that growth would pay for itself. Councilman Collins said the monthly charge for water being used to pay for improvements does not seem right. Councilman Collins agreed this should be tabled and given careful study. Councilman Collins said he had seen practice of replaCement of pipe he was informed was in good condition. Councilman Collins said he has seen where streets could have been overlayed with chip and sel instead of asphalt paving. Councilman Collins said the entire program for capital improvements should be looked at. Ms. Sonfield told Council the city had an engineering study done several years ago in order to charge out costs of water by who was benefitting from it. It is on the basis of these service areas that the tap fees and water rates are charged. Ms. Sonfield said the five year financial plan is conservative and does not include major projects that may generate a lot more money. Aspen ~lsy ~ouncli NovemDer 14, 19~3 Councilman Blomquist moved to table Ordinance ~51, Series of 1983, until ~the next regular meeting; seconded by Councilwoman Walls. All in favor, with the exception of Councilman Knecht. Motion carried. ORDINANCE #52, SERIES OF 1983 - Utility Connect Charges Mayor Stirling opened the public hearing. Councilman Blomquist moved to continue the public hearing and table consideration of Ordinance #52, Series of 1983, until the next regular meeting; seconded by Councilman Collins. All in favor, with the exception of Councilman Knecht. Motion carried. ORDINANCE ~53, SERIES OF 1983 - Property Liens Finance Director Sheree Sonfield presented Council an amended list showing the people who have paid since first reading. Mayor Stirling opened the public hearing. Ms. Sonfiald told Council there was about $80,000 owed to the city f~om various sources, like monthly charges, connect charges, planning office fees. This ordinance allows property lines to be planed on these properties from the county finance office. Mayor Stirling closed the public hearing. Councilman Knecht moved to adopt Ordinance #53, Series of 1983, on second reading; seconded by Councilman Blomquist. Mayor Stirling asked how many times people on the list were given notice. Ms. Sonfield said it varies from 5 or 6 to 1 or 2. Ms. Sonfield said the finance department has tried to work with people that owe the city money many times. This is the best way to deal with it. Ms. Sonfield said people still have time to gather the funds because the taxes are not due until the end of the year. Roll call vote; Councilmembers Walls, aye; Collins, aye; BlomquiSt, aye; Knecht, aye; Mayor Stirling, aye. Motion carried. ORDINANCE #56, SERIES OF 1983 - Intergovernmental Agreement for Transit Agency Assistant City Manager Ron Mitchell went over the changes requested by the Council in previous meetings. One is the joint appointment to the transit agency is done by the city and county each voting separately. Garfield county and Redstone have been added to the advisory committee. There is a change in the assets and liabilities that the assets of the city and county transportation systems may (strike shall) may be conveyed or transferred to the transit agency at no cost on the terms of an agreement entered into between the city and the county. Mitchell said a list of the assets will have to be made and how they are going to be transferred. Councilman Blomquist presented an amendment for page 13 in section'6 which would include provision for repayment to the city of the city for the preparation of the buses for this season. This amendment recognizes the city did prepare the bus system for this season. Councilman Blomquist said this is a matter of principle, and the Council should stick by their original discussion. Mayor Stirling pointed out these costs are estimated at $150,000. Councilman Blomquist said his point is trying to clean up the city's records as far as the bus system. Mayor Stirling opened the public hearing. Bil Dunaway said everyone has tried for years to get a consolidated transportation system. The transit board indicated they do not feel this cost is justified. To put this amend- ment in now will kill something people have worked very hard on. Dwight Shellman handed out a ~memorandum he had presented to the transit agency in October. The memo is a broad analysis of the legal structuring of the agency and points out some serious concep- tual problems. Shellman said he is in favor of the bus system and is not trying to kill it. Shelman said he has observed cost lines converging. The deficits may destroy the system. Shellman pointed out the city and county system were consolidated when they were first organized, and there was a difference in philosophy and the county elected to withdraw rather than add to the costs. Shellman said the agreement sets up an agency that will have a life of its own with the transportation assets of the city and county, and will also receive $2,000,000 sales tax annually. Shellman said all money made available will be spent. The budget indicates a loss of $90,000 a year. Shellman said role of the transit agency should be recast as a subordinate agency, with contract to the city and county. Shellman suggested the city and county then provide an annual bUdget like non,profit organizations. Shellman said the transfer of assets to the transit agency effectively deprives the two elected governments and puts the assets beyond their hands unless the agency is dissolved. Shellman asked that the Council not sign the intergovernmental agreement until they have completed worked out the final documentation. Mayor Stirling closed the public hearing. Councilman Blomquist said he always wanted the Council to retain authority over service levels, fares, etc. The Council and Commissioners rejected that as interfering with details of the operation of the agency. Councilman Blomquist said without this control, there will be difficulties down the line. Councilman Blomquist moved to amend the intergovernmental agreement on page 13 as Blomquist proposed; seconded by Councilman Collins. Ron Mitchell told Council this agreement and by-laws are based upon a citizens committee started two years ago, which involved lots of citizen input. This committe made very similar recommendations. The Council and Commissioners approved these reports from the committees by resolution. City Manager Chapman pointed out the voters approved a county wide sales tax to finances county wide transportation. Councilman Blomquist said the amendment is that the agency will pay the city back $150,000 at some time, and this shouldll be voted on by Council. Mayor Stirling pointed out there were two liabilities'the city had; this is one of the two. The Council decided not to pur~ue the deficit in the two transfer fund. This second deficit is the preparation of the buses for the 1983 ski season. Finance Director Sheree Sonfield said this amendment makes sense because if the agency can afford it, then the city is paid back monies spent by the city. Ms. Sonfield said paragraphs 2 and 3 should be writtenly a little more carefully and that "surplus" should be changed to "fund balance" and include something about the uncommitted contingency bond funds. Councilmembers Blomquist, Collins, and Mayor Stirling in favor of the amendment; Council- members Walls and Knecht opposed. Councilman Blomquist moved to adopt Ordinance #56, Series of 1983, on second reading approving the intergovernmental agreement as amended this evening; seconded by Councilman Collins. Roll call vote; Councilmembers Collins, aye; Knecht, nay; Walls, nay; Blomquist aye; Mayor Stirling, aye. Motion carried. ORDINANCE ~57, SERIES OF 1983 - Time Share Moratorium Mayor Stirling opened the public hearing. David White, P & Z member, invited Council to the P & Z's meeting on time share. Mayor Stirling asked when the time share amendments were scheduled for Council. City Manager Chapman said the first meeting in December. Mayor Stirling said Aspen could have been in motion with the time share concept this winter. Mayor Stirling said he feels the city is losing potential revenue as well as opportunities. Mayor Stirling closed the public hearing. Councilman Knecht moved to adopt Ordinance #57, Series of 1983, as amended on second readong; seconded by Councilwoman Walls. Roll call vote; Councilmembers Blomquist, aye; Walls, aye; Knecht, aye; Collins, aye; Mayor Stirling, nay. Motion carried. ORDINANCE ~59, SERIES OF 1983 - Liquor Occupation Tax Mayor Stirling opened the public hearing. Finance Director Sheree Sonfield told Council this would create about $5400, which is part of the 1984 budget. The Tipsy Taxi has requested that this $5400 be given to them. Mayor Stirling said the ordinance does not provide that the increase goes to Tipsy Taxi at this point. Ellen Anderson, sheriff's department, told COuncil the taxi companies, restaurant association, sheriff's department and police department met with the city manager to discuss the details. City Manager Chapman recommended, after reviewing the program, the Council allow this increase for the tipsy taxi program on a one year basis to get the program started. Ms. Anderson told Council they did not get the grant from the Division of Highways; however, she received a letter from Boulder indicating they would like to give some money to the tipsy taxi program. Dave Johnson, KSNO, said he planned a fund raiser with some local businesses for this program. Rich Rianoshek, police chief, said the police department has!i been involved in this. Rianoshek said the tipsy taxi program is an important component of: the DUI program. Rianoshek encouraged Council to get the program off the ground with this money. Wainwright Dawson asked how this would be funded. Ms. Anderson said there will be a contract between the restaurant association and the taxi companies. These two entities will be responsible for the program. Ms. Anderson said they are starting this system with some assumptions. One is there will be some abuses. The system will have to be put to the test to find oUt what these abuses are before they can be worked out. Ms. Anderson said a program in Steamboat has had success. Mayor Stirling closed the public hearing. Councilman Knecht moved to adopt Ordinance #59, Series of 1983, with the provision the additional funding of $5400 be used in the tipsy taxi program with a one year provision and review; seconded by Councilman Blomquist. Doug Hose, restaurant association, told Council they will be monitoring the system to see where the monies are going. In the spring, they will explore alternatives for financing. Councilman Collins said he supports this type of program but would rather see more effort from the private sector. Mayor Stirling agreed he would rather see this funded from the community and then the Council can see how the program works, and this group can request money with the non-profit groups. Councilman Blomquist said DUI is a serious problem, and a community of this sort makes a living in encouraging bars and restaurants and shouldi! put in a safety factor. Councilman Blomquist said the Council should acknowledge that the!! law enforcement officers have come forward with this problem. Councilman Blomquist said the city should help get the program started, then the bar owners should take over more of the burden. Roll call vote; Councilmembers Collins, nay; Knecht, aye; Walls, aye; Blomquist, aye; Mayor Stirling, nay. Motion carried. ORDINANCE ~60, SERIES OF 1983 - Closing Alley, Block 4 City Attorney Taddune told Council he has made the changes Council requested at the first reading to include the description of the closed alley. Jay Hammond, engineering depart- ment, said the staff is against this alley closure. The Curton project has been redesigned to allow access from the north. Hammond said closing this alley may effect the city's ability to construct and maintain utilities. The staff feels this alley offers the oppurtunity for safer access to properties that are accessing directly to highway 82. Some properties could redevelop and use this alley for access. Hammond said the closure Aspen u~sy ~ouncl± November 14, £9S3 is not necessary at this time and would like the options left open. Mayor Stirling opened the public hearing. Jim Moran said he did not feel this ordinance would affect the city's options in this alley. Council can always repeal an ordinance. Mayor Stirling closed the public hearing. Mayor Stirling said Councilman Knecht worked very hard to come up with a compromise in this area. Councilman Blomquist pointed out this ordinance does not vacate the alley, only closes it. Councilman Blomquist moved to adopt Ordinance #60, Series of 1983, on second reading; seconded by Councilman Collins. Councilman Knecht said he does not see much point in having this ordinance. The problems have been mitigated. The alley has been like it is for years. The sity can still get in and service it. Mayor Stirling said the dispute has been settled in cooperation. Mayor Stirling said he does not feel the city should vacate an alley unless it is of benefit to most of the town, Mayor Stirling said he would like to keep the options open on this alley. Councilman Blomquist said the alley has not been used for many years. People have relied upon it as a grass. Councilman Blomquist said all this ordinance does is reflect on a fact, saying this alley is closed. Mayor Stirling pointed out in the west end there are plantings in city rights of way. Every person takes a risk in planting in city rights- of way. Councilman Collins said closing this alley to vehicular traffic is generally supported in this area. Councilman Collins said if there is a substantial change in the future, opening the alley can be addressed at that time. Roll call vote; Councilmembers Knecht, naye; Collins, aye; Blomquist aye; Walls, nay; Mayor Stirling, nay. Motion NOT carried. ORDINANCE 961, SERIES OF 1983 - Business Occupation Tax Increase Larry Thoreson, finance department, told Council staff looked at the ARA, and could not come up with using their formula. Thoreson said the ARA puts the weight on the gross vaolume of sales, which the city is not allowed to use. The ARA also uses square footage and number of employees, which the city is not able to verify. Thoreson said the staff recommends the original proposal of using employees. Councilman Blomquist presented an amendment to change the tax rate to $25 per employee. This would allow a one-person business to pay only $25; larger corporations would pay $25 per employee. Councilman Blomquist said the total yield would be about the same as the staff's proposal. Councilman Blomquist said the question of honesty is the same in either proposal. Councilman Blomquist said he has tried to develop a tax that treats small businesses as equitably as possible with exact same treatment of large businesses. Councilman Blomquist moved this amendment to Ordinance #61, Series of 1983; seconded by Councilman Collins. Thoreson said he felt businesses are honest when asked if they have 1 -10; 11-40, etc. If the city charges $25 per employee, there will be less employees. The city has no way of verifying the numbers, the city cannot audit businesses. Mayor Stirling said "employee"~ would have to be defined. Thoreson said in the existing ordinance it is anyone on the payroll is an employee, including owner or manager. Mayor Stirling opened the public hearing. Wainwright Dawson asked why the increase was in front of Council. Finance Director, Sheree Sonfield, told Council it is city policy to review all fees every other year to see if they are keeping up with inflation. It appears that costs have gone up 9 percent and inflation increased 15 per cent. This increase is in accordance with city policy and has been included in the budget. Dawson said he felt this Council was charged with accountability, which means cutting taxes. Dawson said the population has not increased in this town. Charlie Hopton said one of the functions licensing serves is a way of policing; people obtain a license so the city knows who is doing business. Hopton said the city should not pick on the businesspeople. David White said there is a lot of taxation without representation. Mayor Stirling closed the public hearing. Mayor Stirling said he is not altogether opposed to this amendment, even though his license fees will be increased. Mayor Stirling said this will decrease the business license~total by about 15 per cent. Mayor Stirling said he felt this was an equitable proposal, some details do need to be worked out, like the definition of employee. Mayor Stirling said, people who employee a lot of people should not be penalized. Councilwoman Walls pointed out businesses employ alot of people because they make money for the business. Bil Dunaway saidthere is no differentiation between full time and part time employees. Mayor Stirling said that is a problem of the definition. Councilman Blomquist suggested counting the number of hours everyone worked in mid-March and dividing by 40 to get full time equivalents. Mayor Stirling suggested putting this off and have staff come back with a firm definition of employee. Councilman Blomquist amended the amendment to include that the staff will develop a definition of full time equivalant employee that accommodates the problem of temporary help and people who work overtime with the FTE based on a 40 hour per week. Council directed staff to set up the definition and bring it back to Council. Ms. Sonfield pointed out this would put the total revenues back to the 1983 level. The largest employer would pay $1875 as opposed to some businesses that would pay $25. Councilman Blomquist said that is the whole point. Roll call vote; Councilmembers Wallsy, aye; Collins, aye; Blomquist, aye; Knech~, aye; Mayor Stirling, aye. Motion carried. Regular Meeting Aspen City Council NovemDer 14, ±9~3 ORDINANCE #62, SERIES OF 1983 - Appropriations Mayor Stirling opened the public hearing. Finance Director Sonfield went through the list of appropriations. Councilman Collins questioned the $50,000 for the Wheeler Opera House. Ms. Sonfield explained when the staff budgeted they only put on $50,000 when it really should have been $100,000. This is a correction to the budget. Mayor Pro Tem Collins closed the public hearing. Councilwoman Walls moved to adopt Ordinance #62, Series of 1983, on second reading; seconded by Councilman Knecht. Roll call vote; Councilmembers Walls, aye; Knecht, aye; Mayor Pro Tem Collins, aye. Motion carried. ORDINANCE #42, SERIES OF 1983 - M.A.A. Water Line Extension Ford Schumann told Council the M.A.A. has some concerns about the agreement. Schumann told Council they have spent about $450,000 on this project on on-site costs. There have been some changes in configurations, requests for revegetation, upgrading electrical wiring, etc. J.D. Muller said the M.A.A. has three items they would like to address. One is the city's requirement that the M.A.A. be responsible getting all approvals for the city's part of the line. Muller said all approvals have been gotten to date. but if something has been forgotten, whose responsibility is it. Muller said the city has asked the M.A.A. be responsible for this, and the M.A.A. feels it should not be their responsibility as it is part of the gift. The M.A.A. would like the agreement be changed to reflect this. Muller pointed out the city wanted it clear this be a gift to the M.A.A. not a private property owner should the M.A.A. sell the property. There is a promissory note that would be due if the M.A.A. sells the property. This city has proposed that the M.A.A. would owe the note if they were not able to carry one operations for more than one year. The M.A.A. would it only to be if they sell the property, not close down for a couple of years. The last item is the easement that the city estimated it would need for the water line. This ' easement was not used for the water line, but was needed for the sewer. Muller is request~ ing this price of this easement be part of the gift, which is $6700. Muller said other than these three items, they agree on the rest of the agreement. City Attorney Taddune explains the reason for the M.A.A. being responsible for the permits is the city has taken a 9 month process and put it into a 2 month process. Therefore, the city felt M.A.A. should do the work. Taddune said the reason the negotiations have been on going is the problem of conveying city water service to a third party in return for an easement. Taddune said it is Council's decision if they want to contribute the cost of the easement to the sanitation district across the Furman property. Taddune said origin- ally the city thought they would need to cross the Furman property, and decided against it and re-engineered the water line. The M.A.A. worked out an arrangement with Furman allowing the sanitation district to cross the proPerty in return for paying for Furman to hook up on the water line. The M.A.A. is requesting within the gift the cost of a water tap for Furman. Taddune said the third problem is what happens if the M.A.A. is not longer operating as the M.A.A. The M.A.A. should explain to the city their problems. Taddune said if the M.A.A. is no longer operating as the M.A.A. or sell the property, the city should be reimbursed unless there are mitigating circumstances. Taddune said the city intends to create service district $ for this area. John ~usick said the extension of this line creates utility related problems, legally and financially. The problem of conveying city water service to Furman makes the problem worse. Musick said in order to prevent the cityl from running into trouble and to be equitable with the entire community, Musick recommends forming a service area so that the city can provide services to other citizens located in that area. Musick pointed out that service area number 8 is not addressed in this ordinance but in Ordinance ~52, which was tabled earlier. Musick said the Council should not act on the waiver of the tap fee for Furman at this point. This issue should be brought up separately. Muller reiterated the three issues the M.A.A. would like addressed; the tap fee, the matter of who should get any approval for the city's pipe line, and the sale or demise of the M.A.A. Mayor Stirling opened the public hearing. There 'were no comments. Mayor Stirling closed the public hearing. MusiCk said there are eight lots in the service area. Councilman Collins asked what the city's gift is. Musick said the total cost is $160,000 at this point. Musick said there will be application for connections onto this line. Councilman Blomquist asked if these tap fees would be sufficient to recover a portion of this cost. Musick said it will not recover the entire $160,000 and may be around $100,000 or less. Councilman Blomquist asked if the city could extend the line above the M.A.A. A. J. Zabia said it is physically impossible without building a pump station. Councilman Collins said he is voting against this because of what took place earlier. The city is asking the water consumers to bear the 20 per cent burden in their rates; it is not fair to those users to pay for a gift the city is making to the M.A.A. Councilman Collins said he feels it hard to justify the city absorbing $160,000 of the cost to bring water to the M.A.A. as the agreement states the M.A.A. is without funds to pay for the extension, when the M.A.A. has just indicated they have spent $300,000 to do this work on the campus. City Attorney Taddune stated the staff is recommending against the M.A.A. amendments. Councilman Blomquist moved to adopt Ordinance #42, Series of 1983, on second reading; seconded by Councilman Knecht. Roll call vote; Councilmembers Knecht, aye; Collins, nay; Blomquist, aye; Walls, aye; Mayor Stirling, aye. Motion carried. Mayor Stirling said the tap fee issue will have to come back to Council. ~e9u±ar ~eeulng Aspen ~luy ~ouncli November ±4, ORDINANCE $64, SERIES OF 1983 - Cable Television Franchise Assistant City Manager Ron Mitchell told Council alot of time has been spent by staff and a committee to put together this ordinance. This ordinance will allow the city to issue cable television permits to those companies interested in that service. Mitchell told Council Canyon Cable is interested in upgrading their current system to provide additional channels. Council previously established an advisory committee to review what is going on in the industry and franchises. This ordinance is the culmination of those efforts. The committee recommends scheduling a study session as the ordinance is very long and has alot of detail in it. Councilman Knecht moved to read Ordinance #64, Series of 1983; seconded by Councilwoman Walls. All in favor, motion carried. ORDINANCE #64 (Series of 1983) AN ORDINANCE ENACTING A CHAPTER 25 TO THE MUNICIPAL CODE OF THE CITY OF ASPEN, COLORADO, PERTAINING TO THE ISSUANCE OF NON-EXCLUSIVE, REVOCABLE PERMITS FOR THE OPERATION OF CABLE TELEVISION SYSTMES IN THE CITY OF ASPEN, COLORADO, SETTING FORTH CONDITIONS FOR THE GRANTING OF SUCH PERMITS; PROVIDING FOR REGULATIONS AND USE OF CABLE TELEVISION SYSTEMS; AND PROVIDING PENALTIES FOR VIOLATIONS THEREOF was read by the city clerk Mitchel told Council the committee had a number of public hearings attended by citizen, the broadcasting industry and Canyon Cable. Councilman Blomquist recommended a study session as he has some proposed amendments. Council directed staff to set up this session. Councilman Blomquist moved to adopt Ordinance #64, Series of 1983, on first reading; seconded by Councilman Knecht. Roll call vote; Councilmembers Walls, aye; Collins, aye; Blomquist, aye; Knecht, aye; Mayor Stirling, aye. Motion carried. COORS CLASSIC BICYCLE RACE Mayor Stirling said there is a memorandum from the City Manager indicating Coors is interested in having a July 1984 bicycle race in Aspen. This will be the last major bicycle race before the Olympics. Mayor Stirling asked if it was guaranteed if the Olympic teams would be in this race. City Manager Chapman told Council that 22 Olympic teams have committed to racing in the Coors Classic, and there may be more by that time. Chapman said the Coors races are structured as an Olympic training event. Mayor Stirling asked if there is potential TV coverage for this race. Chapman said this was discussed but nothing is firm. Coors would like the course t6 be suitable for TV. Mayor Stirling asked what the $12,000 cost above the $8,000 fee for the race included. Chapman said this is a guess as the city is required to provide two meals for a maximum of 600 people, breakfast and dinner the day of the race. Chapman said this figure is a guess. Councilwoman Walls asked if the lodges are committed to providing the rooms. Chapman said the ARA discussed this, and they are committed to find lodge rooms, if the city commits to the cash. The lodging association said since it is the middle of the week and only one night, it can be done. Councilman Knecht asked if they would schedule a bicycle workshop for that date. Chapman said they would. Councilman Knecht asked where the money would come from. Chapman said it would be funded out of the general fund at a maximum of $20,000. Chapman said the $8,000 fee for the race is non-negotiable. Councilman Blomquist mowed to give up to maximum of $20,000 out of the general fund for the Coors classic. Motion DIES for lack of a second. Councilman Knecht said he has reservations about this. Councilman Knecht said he would love to have the Coors classic in Aspen but it is only one day and it is a week before the Olympics, and he questioned how many people will be here. The city is being asked to put of $20,000 for a one day event, and Councilman Knecht questioned the return on that money. Councilman Knecht said he would like to find someone to help share the load and the city pay the race fee. Councilman Blomquist moved to not sponsor the Coors classic. Motion DIES for lack of a second. Councilman Blomquist pointed out this could be an annual event and get bigger every year. Chapman said he has to let the Coors people know this week so that everything can be arranged. Chapman said the race fee is double the usual because of the Olympic athletes. Chapman pointed out the weekend following this race is the celebrity tennis tournament at the Aspen Club, which would lead to attractiveness of a week package. Chapman suggested that since the M.A.A. owes the city a free concert, it might be an appropriate time to schedule the concert, also, to put together a chain of events. Mayor Stirling suggested setting a ceiling of $15,000 including meals, rather than $20,000. Chapman said the Coors people said as far as the meals go, they don't care how it is set up, so far as the dietary requirements are met. Mayor Stirling said he would like to see this event happen, but does not want to commit $20,000. Councilman Knecht pointed out Council has cut the arts and the non-profit contributions, and now they want to add something new. Councilman Knecht said his only objection is the amount of money for a one day event. Bil Dunaway said this is a world class event and should be part of making Aspen appear glamorous. Dunaway said he felt this event would generate alot of international publicity. Councilman Knecht moved to give $8,000 fee for the Coors bicycle classic with the idea that the balance of the community, ARA, etc. comtinue the promotion to give the Coors people what they want; seconded by Councilwoman Walls. Councilman Blomquist said he felt the city should be contributing $14,000 towards this event so there is no question that Aspen is supporting this event. Counc~lmembers Knecht, Blomquist, Walls and Mayor Stirling in favor; Councilman Collins opposed. Motion carried. ORDINANCE #67, SERIES OF 1983 - M.A.A./Wheeler Theatre lease City Attorney Taddune told Council the city is trying to help the M.A.A. with its funding drive and has prepared a draft lease that will be subject to further negotiations. Tadduneli recommended approving the theatre lease on first reading so the staff and M.A.A. can continue working on it. Councilman Knecht moved to read Ordinance #67, Series of 1983; seconded by Councilman Collihs. All in favor, motion carried. ORDINANCE #67 (Series of 1983) AN ORDINANCE APPROVING A THREATRE USE AGREEMENT WITH THE MUSIC ASSOCIATES OF ASPEN AND AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE SAID AGREEMENT ON BEHALF OF THE CITY was read by the city clear Councilman Blomquist moved to adopt Ordinance ~67, Series of 1983, on first reading; seconded by Councilman Knecht. Roll call vote; Councilmembers Knecht, aye; Blomquist, aye; Walls, aye; Collins, aye; Mayor Stirling, aye. Motion carried. USE OF THE BASEMENT OF THE WHEELER Bob Murray, executive director, told Council the Wheeler Board has been trying to find tenants to replace their earlier tenants. Murray told Council the Board is trying to find an attractive and feasible combination for the basement. The Board has some interesting possibilities. Murray said the Board did not want to divvy up the entire basement in case a proposal for most of the space comes along. There is 500 square feet that the restaurant on the first floor is interested in and would be helpful to the operations. This space would be used for storage, water tanks, coolers. This is a small area and does not jeopar- dize other renters for the basement. Murray pointed out that storage for the Theatre will also be needed, and it would be short sighted not to think of this. Murray said if the Wheeler board got a very attractive offer for leasing, they would address it. Murray told Council that Sirous is asking for $500 square feet and is willing to pay $7 per square foot plus construction of the walls. Councilman Blomquist said the Council is going to have a study session to review the city's role in the resort. This space could be put to good use for a resort or general information area. Councilwoman Walls said she did not feel 500 square feet in the back of the building would effect the rest of the buildings. Councilwoman Wall~ said she feels Sirous needs storage space to operate a nice restaurant. Councilwoman Walls moved to approve this request; seconded by Councilman Knecht. Councilmembers Knecht and Walls in favor, Councilmembers Blomquist, Collins and Stirling opposed. Motion NOT carried. Councilman Knecht moved to accept the proposal to lease 500 square feet of basement storage? to Sirous for one year; seconded by Councilwoman Walls. Councilmembers Knecht, Walls and Mayor Stirling in favor; Councilmembers Collins and Blomquist opposed. Motion carried. PUBLIC HEARING - Use of Revenue Sharing Funds Mayor Stirling opened the public hearing on the use of revenue funds. There were no comments Mayor Stirling closed the public hearing. Councilman Knecht moved to adopt the use of federal revenue sharing funds for the purposes of expenditures in the area of police protection services and financial and general administration; seconded by Councilman Collins. All in favor, motion carried. REQUEST FOR ARTHUR'S AUDIT BID Mayor Stirling said this request is for Council to authorize some firm to do an a~dit on Arthur's restaurant. Councilman Knecht moved to recommend Schneider & Shuster to the audit on Arthur's; seconded by Councilman Blomquist. Mayor Stirling said he is interested in having local people do things for the city if they have the expertise. Councilwoman Walls agreed she would like to give this to the low, local bidder. Councilmembers Knecht and Blomquist in favor; Councilmembers Walls, Collins and Mayor Stirling opposed. Motion NOT carried. Councilwoman Walls moved to give the bid to Eubank, Roberts and Bishop; seconded by Council~ man Collins. All in favor, motion carried. SUBDIVISION EXCEPTION - Aspen Employee Housing No. 1 Alice Davis, planning office, said the only reason to bring this to Council is to put technical items on the plat that were left off. These changes are necessary to satisfy the title company since two of the units have been sold. Councilwoman Walls moved to approve the Aspen Employee Housing No. 1 subdivision exception subject to the approval of the city engineer prior to recording; seconded by Councilman Collins. All in favor, motion carried. CONCEPTUAL GMP REVIEW/EXTENSION OF GMP ALLOCATION - Sunny Park Alice Davis said this application received an 1982 GMP allocation for three units. The applicant did not proceed with subsequent approvals. This GMP allocation expires January 1, 1984. The applicant is requesting conceptual approval of the project and an extension ~egu±ar ~ee~lng Aspen ~lty uouncl± November 14, 1~3 ~ ~ of the GMP allocation to July 1, 1984 because the applicant needs time to get all the necessary approvals. The Council is allowed to give an extension if they feel there is just cause. The applicant has indicated the economic recession prevented him from moving forward with the project. Ms. Davis said the planning office recommended conceptual approval in 1982 and continues to do so. Ms. Davis said all the utilities are underground, this project is a 50 per cent reduction in the allowed density; there is 50 per cent open space with significant landscaping. Mayor Stirling asked why the application was turned down in 1981. Ms. Davis said mainly due to higher density. Councilman Blomquist moved to grant conceptual approval to the Sunny Park GMP project as well as approve a one time six month extension to July 1, 1984, with conditions 1, 2 and 3 in the planning office memorandum of November 14, 1983; seconded by Councilman Knecht. All in favor, motion carried. WHITE RIVER FOREST MASTER PLAN Mayor Stirling said the Council has ~eceived comments from the Aspen Wilderness Workshop and they are having a meeting on this Wednesday night. Glenn Horn, planning office, said the main issues are the conflict between the city policy on proposed ski area expansion. The forest service is proposing three sites as category 2. Horn told Council the forest service is also proposing to close some campgrounds east of town. Horn said he feels this is inconsistent with city policy of increasing summer traffic. Horn said the city's policy in the GMP is that the city will give highest priority to ski area expansion within the Aspen/Snowmass area. Councilman Knecht suggested a letter to the forest service pointing out the city's policy about ski area expansion and to state the Council does not want the campgrounds closed. Councilman Blomquist questioned saying anything about Redstone as it is quite a ways from Aspen. Councilman Blomquist said the letter should acknowledge the city loves the camp- grounds and they are part of the lifestyle. Councilman Blomquist said he did not feel Aspen should comment on anything outside the upper Roaring Fork Valley. Mayor Stirling suggested Councilman Knecht and Glenn Horn draft a letter and circulate it to Council for approval and for the Mayor's signature. Mayor Stirling said he did not want other areas addressed. Councilman Knecht said he wants to oppose a ski area at Ashcroft. Councilwoman Walls agreed. CoUncil agreed with a letter to be drafted. ORDINANCE #65, SERIES OF 1983 -Appropriations Councilman Knecht moved to read Ordinance ~65, Series of 1983; seconded by Councilman Collins. All in favor, motion carried. ORDINANCE #65 (Series of 1983) AN ORDINANCE APPROPRIATING GENERAL FUND EXPENDITURES OF $445,431; RECOGNIZING GENERAL FUND REVENUES OF $10,000; APPROPRIATING EMPLOYEE RETIREMENT FUND EXPNESES OF $64,100; APPROPRIATING CAPITAL PROJECTS WHEELER AND OPEN SPACE FUND EXPENSES OF $577,800; APPROPRIATING WATER FUND EXPENSES OF $13,000; APPROPRIATING ELECTRIC FUND EXPENSES OF $17,000 was read by the city clerk Councilman Knecht moved to adopt Ordinance #65, Series of 1983 on first reading; seconded by Councilman Collins. Roll call vote; Councilmembers Blomquist, aye; Collins, aye; Knecht, aye; Walls, aye; Mayor Stirling,aye. Motion carried. CONSENT AGENDA Councilman Knecht moved to adopt the consent agenda; seconded by Councilman Collins. Charles Hopton told Council since 1980 he has made attempts through city departments and with the owner of the Copper Kettle on problems they have had. Hopton said there has been garbage thrown out on the streets. The Copper Kettle has turned into a rowdy place. Hopton said he has to call the police constantly. Hopton said one person ran into his building with a car and was arrested for DUI. Hopton read a letter from one of the tenants complaining about the noise. Hopton said he has had guests request to move because of the noise. Hopton said this establishment is disturbing the entire neighborhood. Hopton requested additional police coverage and that reports be filed so that Council can be aware of these types of things when liquor licenses come up for renewal. Mayor Stirling said the Council will urge the police to assist in this because quiet enjoyment is being threatened. The consent agenda is Resolution #35, Series of 1983 - 1984 Commercial GMP; Resolution ~36, Series of 1983 - GMP Carryover; Liquor License Renewals - Steak Pit, Copper Kettle, Ute City Banque, Elks, Paddy Bugatti's, Chart House, Home Plate, Souper, Uncle Willy's Spirit House, Guido's, Mother Lode, Country Road. All in favor, motion carried. Councilman Collins moved to adjourn at 10:10 p.m.; seconded by Councilman Knecht. All in favor, motion carried. Kathryn~. Koch, City Clerk