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HomeMy WebLinkAboutminutes.council.19790312 Regular Meeting Aspen City Council March 12, 1979 Mayor Standley called the meeting to order at 4:15 p.m. with Commissioners Child and Edwards, Councilmembers Anderson, Behrendt, Isaac, and Parry present. Also present were City Attorney Stock, City Manager Mahoney, County Attorney Stuller, and County Manager Ochs. Mortgage Housing 1. Mortgage Housing Proposal. Mark Danielsen, housing office, submitted several memo~ Proposal randa regarding these bond issues. Council wanted to have some input into this bond issue and address the key issues, which are should the bond issue be done at all, and the free market is only $1,500,000. The type of financing for Midland/Park could finance a project at less cost than a mortgage revenue bond issue. Lone Pine will account for about $1,000,000 of this bond issue, and Snow, ass project will account for $1,700,000. If these two projects can be done at a less cost, is there is point to do a more expensive type financing and including a limited amount of free market Units within the bond issue. Danielsen questioned is there public purpose in creating a lower cost mortgage for $100,000 plus units in the free market section. One of the restrictions in this type of mortgage requires a maximum mortgage of $125,000. Does this insure public purpose for that amount of free market units. Another point is should the free market units be restricted in terms of their resale, to cost-of-living increases or floating with the market. The people purchasing these units would be paying free market costs, but they are getting public benefit out of the reduced interest rate of at least 2 per cent. If the units are not restricted, speculative investment may occur. Also if there are not restricted, should the mortgage be restricted in terms of being assumable. Danielsen pointed out some alternatives; hot to do the issue at all, put on resale restrictions for the free market units, eliminate the free market units and deal with PMH projects - this would reduce the size of the issue. The Commiss- ioners had asked the Housing Advisory Board to look at this and come up with opinions. Danielsen told the Boards that time is important because the legislation is considering some controls and moratoriums on these type of bond issues, and a commitment for permanent financing for Lone Pine is being sought as soon as possible. Another issue to be addressed! is whether employers may purchase units to rent to employees. Harry Truscott, representing the Housing Advisory Board, said they had no problems with the $3,500,000 to support Lone Pine and Snowmass. The $1,500,000 for the free market units brings problems on how these will be administered and who can take advantage of the low interest rates. The low interest rates may drive up the price on the original pur- chase. Truscott said if other PMH projects could be found, the $1,500,000 could be used for it. The general feeling of the Housing Advisory Board is that the $5,000,000 bond issue probably should not be done; efforts should be made to renegotiate it down to what is available in PMH support. ~egu±ar meeting Aspen City Council March 12, 1979 Larry Malone, E. F. Hutton, told the Boards the single family mortgage revenue bond pro- gram originated in Chicago and has been done in Denver and Pueblo, and was intended~to help low and moderate income families only on market type units. This can incorporate projects like Midland/Park. The start up costs would be cheaper for a Midland~type projec~ with the assumptions that the municipal entity is in control of the project, and that theyi are the middle man. Malone said the main objection to the Midland-type project is the control of the resale, and who goes into the units. Malone said he had worked with bond counsel on this question, counsel has said the City or County probably could but in a market situation is becomes difficult to define who is qualifying for the program. If a person moved out in six months and could not get enough money to even cover costs, they may have good grounds for a lawsuit. Malone said he was advised the people wo~ld prefer not to go into the area of controlling the resale of the homes by a covenant in the bond documents. Malone said a penalty could be put on any loans that are assumed. This is one way to control the speculation. Mayor Standley asked if, in a market that appreciates 25 to 50 per cent per year, there could be a high enough penalty to deter resale. Malone said froml a underwriter's standpoint, he would not do it. The loans also could be non-assumable. Another was to control it might be a call premium on the mortgages if they are paid off; this will produce a low interest rate. Another method of control is to set a net worth test, and this could be set very stringently set to qualify for-the units. From a lenders standpoint, the more restraints that are put in the more difficult it becomes because the buyers have to be qualified. A maximum value on the home and a maximum value on the mortgage can be~put on. Mayor Standley asked if the money could be placed in local lending institutions Malone answered this is just taking money out of their own portfolios. The local lending institu tions are acting as agent; the bond proceeds supply the funds. Malone said no underwriting company is combining mortgage plans with rental units; however, there are financings through the industrial revenue act for the purpose of employers purchasing units and renting them. The security behind the two issues is entirely different. Councilman Behrendt said he would like to address financing rental units at some time. Mayor Standley said until the control of the resale and bonding is resolved, the City cannot take action as the City is not interested in creating a one-time improvement in the housing situation, which would then become free market. Mayor Standley suggested that Councilmembers Anderson and Behrendt meet with Malone to give background and thoughts on the City's ideas of employee housing. Commissioner Edwards said that the County's reaction is very similar to that of the Housin¢ Advisory Board. The injection of $1,500,000 of 8 per cent money into the open market would not do much good in making available low and moderate income housing. The County is really interested in the PMH control market units, and these can be financed at less Cost'th~n by adding them to the bond issue. 2. A-95 Reviews. (a) Skyline Six Area Senior Citizens. Gene Marsh told the Boards is A-95 Reviews basicallya grant under the Older Americans Act for equipping senior centers. This pro- Skyline Six Area vides for $5291 in equipment, mostly audio-visual equipments, wheelchairs and walkers. Senior Citizens Councilman Isaac moved to forward with favorable comment; seconded by Councilman Parry. All in favor, motion carried. (b) Colorado Officer of Rural Health. Councilman Isaac said this looks like another ilColorado Officer bureaucracy~being set up and it is getting farther away from the grassroots. Mayor !iof Rural Health Standley said on most of the Four Corners things, he agreed 100 per cent. Mayor Standley said he had been trying to get reports from them for three months. Councilman Isaac notedi! that a Rural Health Office located in the Governor's office is the wrong place. Mayor Standley said the application has not substantiated that any of these objectives are the result of any research. Mayor Standley said this is adding another level of bureaucracy on top of COG, removing it farther from the City and County. Commissioner Child pointed out since Nancy Dick was the applicant, the Boards could give her the courtesy of asking for comment. Commissioner Kinsley moved to table the application and request Nancy Dick's office for further information; seconded by Commissioner Child. All in favor, With the exception of Councilman Isaac. Motion Carried. Commissioner Child asked, if the Council were going to address annexation of Smuggler, that the Commissioners be allowed to comment. Mayor Standley told them to stay for the Council discussion and he would move the item up. Councilman Isaac asked if the Boards had any feeling to send to COG regarding the water attorney, Sandy White. Commissioner Edwards said he and the Mayor had both signed a letter indicating the reasons why the City and County did not want COG to retain White. Mayor Standley said he would like the COG representatives to go to the meeting and move toi! sever the relationship; if it is not, the City and County will withdraw the funds going the water attorney. COUNCIL MEETING MINUTES Councilman Van Ness came into Council Chambers. Councilman Behrendt moved to approve the minutes of February 12, 1979; seconded by Councilman Isaac. Councilman Isaac corrected the spelling on Harris, not Harry, Sherman. Councilwoman Anderson requested the addition of, under Arrowhead Subdivision, "when Ron Stock was asked a second time, would it be illegal to vote no on the Arrowhead condominiumization, he said, I can't think of a reasoni! now, but if you vote no, I'll try to think of one." All in favor, motion carried. Regular Meeting Aspen City Council March 12, 1979 ACCOUNTS PAYABLE a A~counts Payable Councilman Isaac moved to approve the accounts pay ble for February; seconded by Council man Parry. All in favor, motion carried. CITIZEN PARTICIPATION 1. Paul Crawford told Council he is the author an~ organizer of the petition to reinstate Petition for Ben Johnston to the Aspen Police Department. Crawford submitted petitions with 410 signa- Ben Johnston tures, and told Council there were three other petitions that were misplaced. Crawford said this petition is not an attack but they feel Johnson is a good police officer and he should not have been dismissed for what he was dismissed for. Crawford said that the City Manager has been very fair and has responded to Crawford. Crawford also stated this is not a vendetta against Chief of Police Rob McClung. Crawford said some people in town feel the police department shouldn't be as heavy handed as it is; they feel that Johnson is the kind of police officer they would like to represent them. Mayor Standley said the Council is prohibited in the Charter from making hiring and firing decisions of the police department. City Manager Mahoney has an investigation going on and will accept the petitions. COUNCILMEMBER COMMENTS 1. Councilwoman Anderson expressed thanks in the cleaning up of the downtown area and getting snow out of the parking spots. 2. Councilman Isaac brought up a letter Council had received from the acting Pitkin County Librarian, suggesting making Midland and Park each one-way. The streets are very narrow. Councilman Isaac asked that engineering and planning look into this. 3. Councilman Behrendt told Council the Aspen Lodging Association had passed on a Employee Housing request to him concerning the possibility of building employee housing underneath existing units. This suggestion would fit into the zoning code, but the building code will not allow it. Councilman Behrendt asked if it would be possible to change the building code for specifically designated employee housing. Mayor Standley, Councilmembers Van Ness and Anderson agreed it should be considered. Compliment on 4. .Councilman Behrendt cc~plimented whoever was responsible for the lines on Main street. Street Lining These lines are very good and have stood up well. Councilman Behrendt suggested the City investigate to see if they could use the same kind of lines. 5. Councilman Behrendt asked when Council was going to have their ski day, as he felt ! a lot of good came out of the one last year. J! James E. Moor~e 6. Mayor Standley told Council there is a letter from the Division of Parks and Outdoor ~' Property for Recreation approving the $100,000 for the purchase of the James E. Moore property. They $100,000 accepted the appraisal on it, and it looks like the City will get their six acres. 7. Mayor Standley said with eight bars about to go out of business, continued underage drinking, and two for ones, this indicates that the needs of the neighborhood have been met as far as the number of liquor licenses. ENCLAVE ANNEXATION Enclave Annexation Lou Buettner, engineering department, presented a map of the proposed areas to be annexed which is an enclave of the Smuggler area. There are some deed problems as the legal descriptions and ownership descriptions do not jive. There are problems with water and rights-of-way in the whole area. The general area is Queen street, King street, Gibson and Park, Smuggler trailer Court. Councilman Isaac said he would really like to see this area cleaned up. Tom Dunlop passed out state standards and regulations for mobile homes, which are fairly inclusive. The City will be obligated to enforce them; the include utilities, setbacks, pertinent structures. Bob Jacobs, fire marshal, told Council he had given a quick look at the trailer park. There is a disregard for the current building codes shown in restricted fire access due to the parking problems, improperly installed heating~appliances, blocking of second exits by snow, extensions built without regard to the building codes, exposed illegal wiring, gas meters leaning over, and so on. Ron Stock told Council they should have the opportunity to know some of the problems they will get into. This area is one of the primary areas Council had wanted to see as part of the City and it can be unilaterally annexed. Stock told Council that if the people had petitioned Council themselves, the City would have required them to correct their boundary lines prior to being annexed. If Council brings them ~n now, they are giving up that tool. Some of the costs would include street maintenance, extension of water service lines, and the health and fire violations existing. Stock told Council there will be a petition for subdivision of Smuggler Trailer Court presented to the County. This will not be an easy issue to deal with, and if the City annexes they would accept the responsibility to deal with it. Stock explained Council first had to authorize the Mayor to sign the Petition to Annex, then schedule the public hearing, through an emergency ordinance this enclave could be annexed at the April 23 Council meeting. Council will have to adopt Resolution 7, the intent to annex. Richard Grice, planning office, told Council some of the health, fire and safety problems could be solved by spreading the trailers out over the additional 3 acres of land, which in the past has been dedicated to the occupants of the park. There is a variance given provided they install a baseball diamond, picnic and parking. Grice said the application he had discussed indicates that the owners of the park want the occupants of the trailers to pursue an application for subdivision which would include the 3 acres being separated out and given the right for free development. Grice said his recommendation would be that that 3 acres is already dedicated to the use of the trailers owners. Regular Meeting Aspen City Council March 12, 1979 Commissioner Child told Council they were drafting new mobile home regulations for the County and one of the items discussed was spreading out of the trailers. Child said he had asked to speak because he is concerned that Council may be taking action on this ~ , annexation on reliance on revenues obtained from a later annexation of the Airport Business Center. Child said the County has concerns in talking about annexation beyond the bridge, land use concerns primarily. Lands past the bridge are a rural part of the County, and once is becomes annexed to the City, the land use will be significantly changed. Mayor Standley said the Council has sent the east end of the valley contiguous to the town to the P & Z for their total planning program. The Council has taken the position to have the administration aggressively pursue annexation of all urbanized areas and to develop a planning program for rural areas for their consideration at a later date, Mayor Standley said Council recognizes it will cost money, but the consensus of Council was these people have rights to be within the City. Commissioner Edwards stated when the City starts to annex beyond Castle Creek bridge, there are many added considerations; annexation would quadruple the cost of the land, it would foreclose any possibility of acquisition of open space. Edwards told Council the talk of annexation has already killed a donation of open space because of the change in expectations. Edwards pointed out one of the reasons the development of the Buttermilk Hilton was stopped was that the City did not have to give them water. If that land were annexed, the City would have had to give them water. Edwards said the County is looking at either abatement of the use, for trailer parks, or the upgrading the parks to minimum standards. Councilman Isaac said the City is giving service, snowplow, police, bus, water, to most of this area. Mayor Standley said the City has talked about this for six years, and the Council had made a motion to proceed with annexation. This is the first and most contiguous. Councilman Van Ness pointed out if the logic is these people work in Aspen and should have the vote, the City will have to annex to Basalt. H. J. Stalf pointed out the Silverking bus runs through this area, and it is a problem to get through that area. They cannot get tows because it is in the County; if it were in the City, there could be better service. Jim Markalunas ~t~ld Council the water department bills the owners of the trailer court for water service. If they are annexed, the water water will go in half; ahd who will receive the benefits of this decreased price. Councilman Behrendt moved to authorize the Mayor to sign the Petition to Annex; seconded by Councilman Isaac. Councilman Van Ness said there is a difference between a group of residents getting together to petition to be annexed, and the City on its own initiative decided to annex them. All in favor, with the exception of Councilman Van Ness. Motion carried. Councilman Behrendt moved to read Resolution ~7, Series of 1979; seconded by Councilwoman Anderson. All in favor, motion carried. RESOLUTION #7 Series of 1979) Resolution 97 WHEREAS, there has been presented to the City Council for its consideration Annexation of an a Petition for Annexation for the annexation of an enclave which has more than Enclave two-thi~ds boundary contiguity to the City of Aspen, more particularly described in Exhibit "a" attached hereto and made a part hereof by reference. WHEREAS, said Petition has been determined by the City Council to satisfy the requirements of Section 31-8-107 of the Colorado Municipal Annexation Act; and WHEREAS, it is required by said Act that the Council determination of substantial compliance of an annexation petition be by Resolution and therefore of records, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO: 1. That the Petition of Annexation of the above-described tract having been submitted to the City Clerk shall be, and hereby is, determined to be in compliance with the requirements of Section 31-8-107, C.R.S. 1973, as amended, the Colorado Municipal Annexation Act. 2. That it further ~e determined, and the City Council so finds, that the tract proposed for annexation, has more than two-thirds boundary contiguity to the boundaries of the City of Aspen, and such contiguity has existed for a period of not less than three (3) years, and is eligible for annexation under Section 31-8-106(2), C.R.S 1973, as amended. 3. That it is the intent of the City Council to annex the area above- described if, after notice and hearing as provided in Section 31-12-108 and 31-12 109, C.R.S 1973, as amended, the City Council finds and determines that the pro- posed annexation complies with the provisions of Section 31-13-105, C,R.S. 1973, as amended i 4. A public hearing as provided in Sections 31-12-108 and 31-12-109, C.R.S 1973, as amended, shall be held on the 16th day of April 1979 at 5:00 p.m. in the City Council Chambers, Aspen City Hall, Aspen, Colorado. Councilwoman Anderson moved to adopt Resolution 97, Series of 1979; seconded by Councilman Isaac. All in favor, with the exception of Councilman Van Ness. Motion carried. Mayor Standley called a special Council meeting for April 16, 1979, to have the public hearing on this resolution and annexation. RELOCATING AND EXPANDING WATER FLUORIDATION SYSTEM RElocating & Councilman Behrendt moved to table this item as the petitioners were not present; seconded Expanding Water by Councilman Parry. All in favor, motion carried. Flouridation System Regular Meeting Aspen City Council March 12, 1979 Aspen Ice Garden ASPEN ICE GARDEN ~ Mayor Standley said the City, in the past, has had discussions regarding the possible City ~ '. acquisition Of the property. There is background information in the packet. John McBride i told Council the reason for this offer is that they feel they run a public facility, and ~ they don't make money at it. McBride said they did not want to run this operation forever. They would like to see the rink continue as an ice rink and as a community facility. McBride said they felt the sports programs could be better if they were integrated into the school system. McBride noted that the trend is that most ice rinks are becoming publicly owned, and they feel the community can run it more economically and efficiently. McBride said this is a donation, it is called a bargain sale, so that the investors can get their basic investment out of it. Chuck Cole outlined the terms of the bargain sale; they would ask for $200,000 in cash and the assumption of a $130,000 note, non-interest bearing with nine years left. The total sale would be $33.0~000; the City would pay $50,000 at the execution of the agreement and $75,000 the first week of January 1980 and $75,000 first week of January 1981. The pay- ments on the $130,000 note are roughly $14,000. The City would be buying the stock in a corporation and would assume the assets and liabilities of the corporation. Mayor Standley pointed out the assessment of value.'is that the Ice Garden with the land is worth $1,100,000 and it has been offered to the City for $330,~00 which is a large gift to the City. Mayor Standley said he felt this was a good deal. Ted Armstrong told Council he had looked over the operating figures, and he does not feel it will be a tremendous money maker~ It will be a breakeven operation. Armstrong said he felt it would be a great loss to the community if they lost the ice rink. There are hockey and skating pro- grams and a place for the youth to go in the evening. Councilman Behrendt said this is an incredible offer and the City should do it. Councilman Isaac said he was for the purchase and felt it was a generous offer. Councilman Isaac asked where the money would come from. Finance Director Butterbaugh told Council she has looked over the operating statements and has some concerns. The community benefit is the factor Council has to look at. Ms. Butterbaugh pointed out the insurance has increased tremendously. Bill Tharp told Council this year the insurance has decreased by half by dealing with a trade organization. Ms. Butterbaugh pointed out the maintenance and repairs have dropped every year; this might indicate the rink may need a lot of maintenance and repair. Tharp told Council they now have a full time person as a rink operator who does not have to be called in. The compres- sors were completely rebuilt. McBride said the rink is 11 years old and to stay in good shape will need a continuing amount of repair. Ms. Butterbaugh said the City is not ~n a posit~on now financially but they hope the golf course will be self-supporting, which will relieve the general fund. Ms. Butterbaugh said Council would need to ask the City Attorney-if this is an appropriate purchase out o~f(-s.i-x~h penny funds. Armstrong told Council he would cut part of the operation costs because~che - recreation director would be there full t~me. Councilman Parry asked about using this as a roller rink in the summer. Tharp said there is no duplicate operation in the U.S. as roller rinks require an acrylic floor. Councilman Van Ness asked why there were two appraisals, one at $900,000 and one at $1,100,000. C~le answered after the initial appraisal, Mollica talked to appraisers around the country and came to the conclusion the rink to be appraised at the hicher figure. Cole said the City would assume a note of $23,000; assume the inventory at the shop of $16,000 as well as accounts payable and accounts receivable. ~:~ Councilman Behrendt moved to instruct the staff to continue with negotiations with these ~. people and move to consummate it, and that they find and locate the appropriate place to ~ finance this from out of our present budget; seconded by Councilwoman Anderson. All in - favor, motion carried. Proposal to placl. PROPOSAL TO PLACE GALENA STREET MALL ABANDONMENT ON BALLOT BY COUNCIL ACTION Galena Street Mall Abandonment! City Clerk read a memorandum from Ron Baar requesting placing a second mall question on the on Ballet ballot. Baar had tried to place this issue on the ballot by petition but came up short. Baar noted that if this plan is unfavorable it will be defeated, and Council will have done a service by allowing an alternative. City Attorney Stock told Council he had contacted tke City's bond attorneys; their preliminary opinion is that the City can alter or modify the existing mall, but since the property was purchased with bond proceeds, the City is precluded from vacation of the mall as long the bonds are remaining outstanding. These bonds expire in 14 years. Baar asked if it could be placed in the form of altera- tion of a public right-of-way. Stock said that Council does have the authority to modify the mall to make it limited access or change it in some other manner by changing the regulations. Baar asked if Council could place an amendment on the ballot to modify to create a public thoroughfare. Stock said Council has the authority to act; Council also has the authority to present a referendum to the public. Baar said he would like to get something on the ballot to get the public to say they would like to alter the mall. Councilman Behrendt said this alternative exists in alternative C for mall expansion. Mayor Standley asked if anyone was interested in sponsoring a referendum to place this question on the ballot. Councilman Isaac pointed out at a Chamber meeting there was not one vote for this alterna- tive. Council was not interested in supporting this question. ~Mall/Downtown': MALL/DOWNTOWN PLANNING REPORT ~ Planning Repo~r~ Karen Smith, planning director, told Council there have been a number of public meetings with these proposals and have gotten a lot of good input. There are some issues that need Council feedback as the consultants are leading up to making a recommendation on the preferred alternative before the public hearing on March 26. The issues are alternatives for mall, components of downtown improvement program, and financing. Regular Meeting Aspen City Council March 12, 1979 Nolan Rosall, planning consultant, reminded Council they were focusing on three alterna- tives; (a) closure of both Galena and Cooper to vehicular traffic with the pOssible exception of trolley or small shuttle, (b) Galena is open in a more direct way to handle buses, and taxis, (c) uses Galena and Cooper streets areas similar to the other proposal of feeding traffic in from Mall. Traffic could be fed in from Durant and circulate that way. Rosall said they feel each of the three alternatives is viable, there are pluses and minuses to each. Rosall said a consensus is building towards alternative a. A lot of' the problems associated with the mall are functional, and off and on mall improvements are necessary. Rosall said the project team is leaning towards either a or c, feeling c offers certain advantages towards cirCulation that a does not offer.. Alternative a offers atmosphere in terms of pedestrian movement and flavor. Rosall said the questionnaires from businesses in downtown indicate preference for a. At the Chamber meeting, there was a strong consen- sus towards a also. The consulting team feels they can, with alternative a, solve the ove~- all downtown problems and provide adequate service and delivery. In alternative a, it takesthe closure of Galena and Cooper completely and incorpOrate Independence Square, maintains linear landscaping on Galena to maintain the view corridors towards the mountain. The plan does not propose any constant landscaping development or incorporation of a stream through the mall area, it differentiates brick treatment from planter areas. It allows people to flow through very easily. On Cooper there are oppor- tunities for passive seating areas; this would pick up the landscaped area by the Wiener Stube and emphasizes a relaxed atmosphere. The landscaping on Cooper and at the Indepen- dence Square area would be much less formal than in the present mall. There is a possi- bility of a major fountain at Cooper and Galena, there is an adequate supply of water. There is room in this combination that if the City wanted to go ahead with a trolley system, it could be incorporated. A more formalized performing area would be located next to Wagner Park. The plan maintains the basic configuration of Mill and Galena as one-way entrances with diagonal parking on both sides. The plan shows some modification to Rubey Park, they tried to accommodate both buses and cars in Rubey Park. There are 40 parking spaces on the north side of Rubey Park and space for 10 buses. Rosalt passed out financing break downs for the project, they have calculated the areas involved, the amount of landscaping, street lights. This provides a solid, quality level of treatment. Item B, $650,000 includes modifications to the existing mall, involving widening the bridges to 12 feet and relocation of many of the benches. This widening the bridges and moving the benches out of the walkway will facilitate maintenance. Rosali sai~ it becomes very labor intensive when people have to work in small spaces and crevices. These changes would improve the cross movement and would not involve any ripping up of the~ mall. In terms of dollars per square foot it is about $12 per square foot for 1979 dollarsi. Rosall told Council it is the feeling of the Finance Director that the revenues that are unallocated from the seventh penny sales tax would be sufficient to pay for the improve- ments of the proposed mall and the modifications to the existing mall. Item C deals with the performing arts area of $75,000 which would include additional base work, elevating the platform and have some sort of structure. Item D is the cost estimateS for the downtown beautification plan, which is all the off mall improvements from Dean street to the alley north of Main and from Monarch to Spring. This does not include the repaving of streets or replacement of water lines; these would be covered under the present: operating budget. These improvements include from curb to property lines, and there are three different levels of sidewalk treatment. The Planners are recommending a full 12 foot sidewalk with brick bands and landscaping at 30 foot intervals. The brick treatment would be used in heavy pedestrian traffic and would be designed to encourage that. Rosall told Council about 25 per cent of the sidewalks will need to be replaced and this will cost $71,000. The increase in the street trees will cost about $72,000. Right now there is one street light per intersection and the plan includes adding another light to the intersections to increase the amount of lighting. There are 23 intersections and to contract that out would be $60,000. As an alternative, the City could use their work crews and phase it. Another alternative would be to use antique lights and a super design treatment; this would cost around $168,000. Neckdowns, enlarging sidewalk areas around specialized intersections, works well to emphasize pedestrian flow, control parking and will cost $158,000. Rubey Park has a budget of $42,000 in case some money is needed. Signs, directories, posting kiosks has a budget of $40,000. Rosall told Council for the full blown Urban design plan is estimated to cost $950,000 and does not inClude the repaying of streets. The total package of proposed mall expansion, improvements to the existing mall, performing arts area, and off mall improvements is estimated at $1,700,000. Rosall said the consulting team is trying to be hones in estima- ting costs; there are not a lot of contingencies in the budget. This plan will be a good level of treatment and is not real elaborate. Rosall told Council Ms. Butterbaugh had recommended putting the urban design plan in a separate bond issue, general obligation bonds. Ms. Butterbaugh feels the likelihood is the City can pay off the bond out of current tax revenues. Councilwoman Anderson asked what was being done about getting information to the voter. Rosall said they would have graphics ready for the March 26th public hearing. They will get a poster with finished drawings and the urban design plan, and renderings of charac- ter sketch and a context map. Rosall told Council they hope to do a lot of presentations for different groups. Councilman Isaac asked about the approach on phasing of the constru~ - tion. Rosall said the financing would be under one umbrella; the basic circulation system should be in .place before any work is done on the mall. The first construction season would be getting the off-mall improvements done. The second effort would be on the mall itself, not everything will be ripped up at once. Rosall said this would be a minimum two year program; it is important to phase the construction so as to minimize disruption in the downtown area. Regular Meeting Aspen ulty ~ounc~± ~arcn lZ, 1~/~ Curt Stewart told Council the parking study consultants, PBQ&D, Will be .in town this week ~ with recommendations from the parking study, Stewart said he has had to keep this going i to keep up with the mall planning. Councilman Isaac asked if the City could fund a parking structure in the Rio Grande along with the mall/downtown beautification in one ! bond issue. Stewart said the direction PBQ&D is coming from is a phase direction with some policy and management changes downtown first before a capital project. It is con- ceivable that there might not be a need for a parking structure at this time. City Attorney Stock said he had been working from the philosophy if a parking structure is built, it will be a revenue bond issue. Mayor Standley commented that people are not getting the understanding that under plan A parking will be increased. This information has got to get to the people. Mayor StandleY also said the consultants should use the 1977-78 tourist attitude survey for their comments on parking, malls, and the need for cars. Mayor Standley pointed out the economy of Aspen is based on tourism, and the City's projects should be to keep the product of high quality. The mall should be looked at for its value to the community. REQUEST FOR USE OF CITY BUS H. J. Stalf said he had the policy of not sending a bus outside of the county unless Request for use Council approves. Snowmass Ski Patrol has requested a bus to Breckenridge and they will of city Bus pay the cost of the driver and the fuel and will clean the bus. COuncilwoman Anderson moved to approve the use of the bus; seconded by Councilman Isaac. All in favor, motion carried. H. J. Stalf requested a bus for March 24 for the Aspen Gay Community for a picnic up Castle Creek; one of the drivers has volunteered to drive and they will pay the fuel. Councilman Behrendt moved to approve the request for the use of a bus; seconded by Council man Isaac. All in favor, motion carried. Transportation TRANSPORTATION STATUS REPORT Status Report Stalf had submitted an update of the City and Ski Corp bus routes and who has approached the City for service. Stalf said the transportation department was at a point where they would need to order more equipment. The Silverking route is severely overcrowded and needs another bus; the Ski Corp wants to add a couple more buses. The Ski Corp has provided passes for the bus drivers, which has helped the employment situation. Stalf said he would like to prepare an addendum to the Ski Corp agreement and to order three buses. The School District e~v. isions abandoning service to students within the City of Aspen and the area serviced by the City's bus system. A lot of kids are riding the City bus system but the number would be about doubled. Stalf said the School District might be willing to trade in their equipment for new City buses. Councilman Isaac said he would like to try to encourage the Ski Corp to have fee parking at Buttermilk and Snowmass, Highlands and Aspen Mountain. Councilmembers Behrendt and Parry did not agree. Stalf commented that the limited parking in town combined with the more efficient bus service is working really well. Stalf said the City might use the ~ Plum Tree Inn parking lot as long term parking next winter. Councilman Behrendt noted that , i the buses are filthy. Stalf responded it takes one person 10 hours to wash two buses and there are 28 buses. This is a never-ending problem and they will try to budget for a bus washer. Stalf told Council there are 6 Blue Birds which are 3 years old; they are on the road 18 hours a day and are having some problems. Stalf has looked at a new transit bus to replace these for $25,000 a year; this would be the core of the city's system. Council said to works on cost figures. SUBDIVISION EXEMPTION - Frost Subdivision Exemption-Frost Mayor Standley said this has been discussed before and the problems of non-conforming lot status were addressed at the Board of Adjustment. Richard Grice, planning office, told Council the engineering and attorney are satisfied. The P & Z recommended approval. Councilman Parry moved to approve the subdivision exemption; seconded by Councilman Behrendt. Councilman Isaac aSkedffimprovements were planned. Albie Kern, representing the applicant, said there are already two existing houses. Councilman Isaac asked if there would be a change in the use. Kern said maybe the addition of a bedroom, that's all. All in favor, motion carried. Conceptual ~ CONCEPTUAL SUBDIVISION - Mills Subd~vlsion-Mll llS This is a lot split out of the MillS property next to the parks building. Councilman Parmy moved to approve conceptual subdivision with the condition that only a single family dwelling unit can be built on the newly created lot; seconded by Councilman Isaac. All '~ in favor, motion carried. Final Subdiv- FINAL SUBDIVISION - Hunter Square Building iiision-~tunter : !'~'~'~' Square Bldg. Mayor Standley pointed out this is to condominiumize the ground and commercial floor but not residential units of this building. Jim Reents, planning office, told Council the Subdivision Improvement Agreement have been approved by the engineer and attorney. Councilman Behrendt moved to approve the final subdivision for Hunter Square Building~ seconded by Councilman Parry. Requ±ar Meeting Aspen City Council March 12, 1979 Councilwoman Anderson pointed out the three residential units will be held in single owner- ship, and asked why there were no restrictions. Reents said the subdivision agreement called for a six month minimum lease and right of first refusal. Councilwoman Anderson asked if these were evaluated as employee units. Reents said no because they were not being condominiumized. Councilwoman Anderson said this commercial condominiumization encourages long term stable businesses, but she would like to see housing for employees , also. Mayor Standley said until the apartments want to condominiumize, the Council can not do anything to them. All in favor, motion carried. WATER PLANT HOUSING REPORT Water Plant Jim Reents told Council he had compiled the information from the public sector part of Housing Report the employee housing survey. Reents is in the process of trying to develop the size and housing mix of the project to work on the site and meet the demands of the housing. They are plugging the the rental price guidelines to see if the project is financially feasible~ Reents said they are looking at approximately 60 units on sites 2 and 3 at the Water plant. Reents told Council from the survey 20 per cent indicated studioes with lofts, about 20 per cent for one-bedrooms, 40 per cent for two bedroom, although the survey indicated 50 per cent, and a 10 per cent demand for three 'bedroom units. An idea would be to develop turn-key with the flexibility from pairs of two bedroom units to one and three bedroom units. Reents told Council the current living patterns are two individuals with two incomes within a household, although the percentage of families is small. Reents said the best approach to take is to pursue this project through the city as employee housing projects in the city will be handled as a special review item rather than the whole subdivision approach. Council shoUld pursue annexation concurrently with the size and finalization of the pro- ject package and the selection of the developer for the project. An optimistic estimate of breaking ground would be July 1. Reents said he felt annexation would shorten the process six months. The Council will need to decide how to finance the utility extension, which is the sewer line either from Meadowwood or Highway 82. The engineering department had recommended from Highway 82. .Mayor Standley suggested getting a letter to people who have expressed interest in the project and update them so they can see if they want to build the project. Reents told Council they should be considering what type of financing they could use and this decision should be made as soon as possible APPOINTMENT OF MEDICAL HEALTH OFFICER Mayor Standley pointed out the City needs to have a medical health officer, and the County Medical Healt~ health officer, Dr. Ann Mass, is willing to serve for the City for $100 a month. Tom Officer Dunlop, Sanitarian, told Council the main intent so that the Council, as Board of Health, would have a professional person on the Board. Councilman Parry moved to appoint Dr. Ann Mass and to prepare an appropriation of $900 for the remainder of the year; seconded by Councilman Isaac. Councilman Van Ness said he felt the City would be better off to do this on a per hour basis. Dunlop said Dr. Mass felt it would be much more expensive. All in favor, with the exception of Councilman Van Ness. Motion carried. VIOI~ATIONS OF SIX-MONTH MINIMUM LEASE RESTRICTIONS Violations of Mayor Standley had included in the packet a memorandum from the City engineer and some Six-Month Minimum advertisements of blatant violations of this lease restrictions. Councilman Behrendt said Lease Restriction~ if the City can legally process these violations, the people will go back to the realtor. City Attorney Stock said he felt the City needs an enforcement officer, who responsibility it would be to go out and prepare the case if there is to be legal action. In the case of six month minimum leases there needs to be three short term residents before the City can bring a case. Mayor Standley said he would like the staff to investigate this and see if there is enough information to file suit; the administration is to take this on. Councilman Behrendt suggested informing the Board of Realtors what this ordinance does and what their resposibilities are. Jeff Sachs suggested having an ordinance to prohibit rental companies from violating the six month lease restrictions. Council agreed to investigate the idea for this ordinance. Council asked for a list compiled of all the units that have this restriction to be kept updated. RECONSIDERATION OF ORDINANCE 12, 1979 - Requiring Posting of Premises for Variance Reconsideration REquiring Posting Councilman Isaac moved to reconsider Ordinance ~12, Series of 1979; seconded by Council- of Premises for woman Anderson. All in favor, motion carried. Variance Councilman Isaac moved to re-read Ordinance ~12, Series of 1979; seconded by Councilman Parry. All in favor, motion carried. ORDINANCE #12 (Series of 1979) AN ORDINANCE AMENDING SECTION 2-22 (c) OF THE ASPEN NUMICIPAL CODE PRO- VIDING FOR THE POSTING OF PUBLIC NOTICE ON THE PREMISES FOR WHICH APPLICATION HAS BEEN MADE FOR A VARIANCE was read by the city clerk Councilman Parry moved to adopt Ordinance ~12, Series of 1979, on second reading; seconded by Councilman Isaac. ~egu±ar ~eetlng Aspen City Councll March 12, 1979 Councilman Van Ness pointed out under the present system when someone wants a variance, - all the adjoining property owners are notified by mail. This ordinance requires a sign for a period of time that would be more unattractive than the actual variance and the number of people the sign might notify is not worth it. Roll call vote; Councitmembers Anderson, aye; Behrendt, aye; Parry, aye; Isaac, aye; Van Ness, nay; Mayor Standley, aye. Motion carried. Smoking Prohibit~id ORDINANCE #5, SERIES OF 1979 - Smoking Prohibited in Certain Places in Certain Placek Mayor Standley opened the public hearing. The smoking will be prohibited in government owned buildings within town and the City Manager has the authority to authorize certain smoking areas. Councilwoman Anderson suggested amending certain places such at the Pub and the Plum Tree. Councilman Behrend~ suggested deleting "provided that no employee working in such office or working environment is a non-smoker." Council suggested having the City Manager post the Pub and the Plum Tree. Stock further deleted "in offices or other working enviranments" so this will pertain to the Pub and the Plum Tree. Mayor Standley closed the public hearing. Councilwoman Anderson moved to read Ordinance ~12, Series of 1979, as amended; seconded by Councilman Isaac. All in favor, with the exception of Councilman Van Ness. Motion carried. ORDINANCE #5 (Series of 1979) AN ORDINANCE ADOPTING PROHIBITIONS AGAINST SMOKING IN CERTAIN PUBLIC AREAS AND PLACES was read by the city clerk Councilwoman Anderson moved to adopt Ordinance #5, Series of 1979, on second reading as amended; seconded by Councilman Isaac. Roll call vote; Councilmembers Isaac, aye; Parry, aye; Behrendt, aye; Van Ness, nay; Anderson, aye; Mayor Standley, aye. Motion carried. Repealing Sectio~ ORDINANCE 916, SERIES OF 1979 - Repealing Section 22-8 22-8 Mayor Standley opened the public hearing. There were no comments. Mayor Standley closed the public hearing. Councilman Behrendt moved to read Ordinance ~16, Series of 1979; seconded by Councilwoman Anderson. All in favor, motion carried. ORDINANCE #16 (Series of 1979) AN ORDINANCE REPEALING SECTION 22-8 OF THE ASPEN MUNICIPAL CODE WHICH PROHIBITS THE RIDING OR DRIVING OF ANY ANIMAL AT A SPEED GREATER THAN Riding Animals SIX MILES PER HOUR WITHIN THE ASPEN CITY LIMITS was read by the city clerk at Speeds Greate] than 6 MPH Councilman Parry moved to adopt Ordinance #16, Series of 1979, on second reading; seconded by Councilman Isaac. Roll call vote; Councitmembers Anderson, aye; Van Ness, aye; Parry, aye; Behrendt, aye; Isaac, aye; Mayor Standley, aye. Motion carried. Lease with Inter- LEASE WITH INTEP~4OUNTAIN ENTERPRISES FOR ASPEN ONE PROPERTY mountain Enter- prises for Aspen Mayor Standley told Council this is for the newly acquired Aspen One property and the One Property tenants will be off in June. Councilman Isaac moved to approve the lease with Intermountain provided they vacate the premise by June 15; seconded by Councilman Parry. All in favor, motion carried. ORDINANCE ~17, SERIES OF 1979 - Council Salaries Council Salaries Councilman Isaac moved to table this until Councilman Wishart returns; seconded by Councilwoman Anderson. Councilman Van Ness said he felt the salaries should be increased; however, there is a problem on a Council with three members who have two years experience are getting paid half what the new Council are getting paid. Councilman Van Ness said he felt everyone should be getting paid the same. Councilwoman Anderson pointed out that people who are running for Council have a right to know what their salaries are going to be. Councilman Parry said there should be an automatic built in raise every two years. Councilman Behrendt said this question of salaries should go to the voters. Councilman Van Ness told Council that Councilman Wishart's main point is with low salaries, the time of Council- members is donated and this makes it impossible for working people to serve on Council. All in favor, motion carried Appt. of Coun6ilORDINANCE #18, SERIES OF 1979 - Appointment of Council Vacancies iVacancies Councilman Isaac moved to read Ordinance ~18, Series of 1979; seconded by Councilman Behrendt. All in favor, motion carried. ORDINANCE #18 (Series of 1979) AN ORDINANCE SUBMITTING TO A VOTE OF THE QUALIFIED ELECTORS OF THE CITY OF ASPEN, COLORADO, AN AMENDMENT TO THE CHARTER OF THE CITY PROVIDING THAT VACANCIES IN ELECTIVE OFFICES SHALL BE FILLED BY APPOINTMENT BY THE REMAINING COUNCILMEN UNTIL THE NEXT GENERAL MUNICIPAL ELECTION AFTER SUCH VACANCY OCCURS WHEN 'SUCH VACANCY WILL BE FILLED BY ELECTION was read by the city clerk. Regular Meeting Aspen C~ty Council March iZ, 1979 Councilman Isaac moved to adopt Ordinance 918, Series of 1979, on first reading; seconded by Councilman Van Ness. Councilwoman Anderson asked that "councilman" be changed through~ out the ordinance to "councitmember". Stock told Council this was in conformance with the rest of the Charter. Roll call vote; Councilmembers Behrendt, aye; Isaac, aye; Van Ness, aye; Anderson, aye; Parry, aye; Mayor Standley, aye. Motion carried. ORDINANCE ~19, SERIES OF 1979 - Reducing the number of Councilmembers Reducing number of Councilmember s councilman Isaac moved to read Ordinance #19, Series of 1979. Motion DIES for lack of a second. RESOLUTION #5, SERIES OF 1979 - Placing General Obligation Bond Issues on Ballot for Street Improvements and Downtown Beautification Placing General Obligation Bond Councilman Parry moved to read Resolution ~5, Series of 1979, by title as this Resolution Issues on Ballot will be published; seconded by Councilman Isaac. All in favor, motion carried. RESOLUTION ~5 (Series of 1979) WHEREAS, the City Council of Aspen, Colorado, has determined that it is necessary and advisable to submit to the qualified, registered electors of the City of Aspen two questions to authorize the issuance of general obligation bonds for the purpose of street improvements and downtown beautification; and WHEREAS, formal action is neCessary to place these issues on the ballot; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO: Section 1 That at the General Municipal Election to be held in the City of Aspen, Colorado, on Tuesday, the 8th of May, 1979, there shall be submitted to a vote of the qualified, registered electors of the City, the following question as set forth below, which questions shall be similarly stated in the Ballot Label and Notice of Election. FORM OF QUESTION V©TE FOR ONLY ONE OF THE FOLLOWING Shall the City of Aspen, Colorado, be authorized to issue its general obligation bonds in the principal amount not exceeding $1,200,000 for the purpose of constructing general street and sanitary and storm drainage improvements, such bonds to bear interest at a net effective interest rate not exceeding 7.75% per annum, payable semi-annually, to mature serially within ~ twenty (20) years from their date, and to be redeemable at the option of the city at such time or times and in such manner; upon payment of such premium or premiums, if any, not exceeding 3% of the principal, as may later be determined by the city council 1 For 2. Against Section 2 That at the General Municipal Election to be held in the City of Aspen, Colorado, on Tuesday, the 8th day of May, 1979, there shall be submitted to a vote of the qualified, registered electors of the City, the following question as set forth below, which question shall be similarly stated in the Ballot Label and Notice of Election. FORM OF QUESTION VOTE FOR ONLY ONE OF THE FOLLOWING In the event that Question No. 1 appearing on this ballot is approved, shall the City of Aspen, Colorado, be authorizted to issue its general obligation bonds in the principal amount not exceeding $1,000,000 for the purpose of Downtown Beautification including but not limited to, street lighting, street landscaping, and street, sidewalk and curb improvements, such bonds to bear interest at a net effective interest rate not exceeding 7.75% per annum, payable semi-annually, to mature serially within twenty (20) years from their date, and to be redeemable at the option of the city at such time or times and in such manner, upon payment of such premium or premiums, if any, not exceeding 3 % of the principal, as may later be determined by the city council. 1. For 2. Against Section 3 Those qualified, registered electors of the CitY who are qualified to vote under the Constitution and the Charter of the City of Aspen, shall be allowed to vote on the proposed questions. Section 4 The electi~)n on the proposed questions will be held at the designated polling places within the newly established voting precincts between the hours of 7 a.m. and 7 p.m. on Tuesday, May 8, 1979, in the City of Aspen, Colorado. Section 5 The election of the proposed questions shall be conducted by the judges and clerks who shall be designated by the City Clerk with the approval of the City Council of the City of Aspen. Section 6 The provisIons of registration of electors and for voting by absentee ballo~ on the question of the proposed questions shall be in accordance with the Colorado Municipal Election Law. Section 7 The votes at said election shall be registered on voting machines and the ballot label shall read similarly to the form of questions provided in Sections 1 and 2. ~ ~egu±ar ~eetlng Aspen City Council March 12, 1979 Section 8 The election on the questions of the proposed general obligations bonds shall be held and conducted, and the votes cast on the questions aforesaid shall be returned and canvassed, and the result declared in the same manner as nearly may be provided by law for the ruturn, canvass and declaraction of the officers of the City of Aspen. Section 9 The notice of the election on the proposed general obligation bonds shall be published and of general circulation in said City, and a copy of such notice shall be posted at each polling place within the City, at least ten (10) days before the election. The City Clerk is hereby charged with the duty of giving such notice containing such information as is required by law. Councilman Behrendt moved to approve Resolution #5, Series of 1979, and to publish; seconded by Councilman Isaac. Stock told Council that in order for the City to issue revenue bonds, they have to have 2.4 times the amount of money necessary for the debt service. The City does not have 2.4, but they do have enough money to issue a g.o. and have enough money out of revenues to pay for the g.o. from those revenues. Mayor Standley suggested adding the words "Downtown Beautification excluding the mall" so that people know this is just for downtown beautifi- cation. Councilman Parry asked that the ballot questions have a simple heading or title. Stock said this can be done adding the words "each issue shall be separately: titled" at the end of Section 7. Councilman Behrendt m~)ved to amend the Resolution; seconded by Councilman Isaac. Finance Director Butterbaugh pointed out that on the beautification issue, payments would be made from available special revenues in lieu of a mill levy, in other words, not to tie the bond issue to an increase of a mill levy. It is possible to have the mall and the beautification program without going to an increase of the mill levy. Stock suggested the Council pass a resolution of intent that they believe they can pay, and it will pay, the debt service on these bonds from operating revenues. Mayor Standley said he would rather approve the resolution the way it is, and have another resolution of intent. All in favor, motion carried. Councilman Parry asked that "Vote for or against the following" be substituted on the ballot questions. ~Real Estate ORDINANCE #20, SERIES OF 1979 - Real Estate Transfer Tax Transfer Tax Mayor Standley said this is an ordinance to put a land transfer tax on the ballot which is 1/2 per cent, equal to 1/2 point, to finance exclusively the renovation of the Wheeler Opera House. The surplus up to $100,000 in any given year can be used for supporting the arts; this would be the same as Council donations but it w~uldl put,it ihto revenues. Any surplus accumulated over $100,000 could only be spent by taking it to the voters and receiving a 60 per cent vote in favor. Mayor Standley said he haS~ put this recommendation together because for six years and more, the Wheeler has been deteriorating. Mayor Standley said the City has exhausted every source of Federal, State and local financing, and it cannot be financed out of current City revenues. The building is getting critical. The M.A.A. have refused to use it for their events because of the condemnation of certain elements of it. Mayor Standley said he had discussed With. Richie Cohen and Wendy Morse the acceptability of this tax to the real estate community. Brad Morrison, a professional in evaluating performing arts facilities, is going to evaluate the need for performing arts facilities in Aspen. The Roaring Fork Valley Foundation for the Performing Arts is taking care of this evaluation. Cohen and Morse had concurred this was a good tax, and that the Wheeler was something it could be used for. They would support it as long as the ~ax was narrowly defined and earmarked for the Wheeler, and not another source of revenue for the City to use. Mayor Standley told Council his position is that saving the Wheeler is critical, and any- thing the City can do is important or it will not happen. Mayor Standley said he would not support this unless the real estate community also supported it. There are represen- tatives from Ballet West, M.A.A., Morrison, the Char~ber, some real estate firms, Jeff Sachs with the Roaring Fork Valley Foundation for the Performing Arts, Dr. Scott, Howie Mallory, Edgar and Molly Stern, Bob Throm, Richie Cohen, to discuss this. Mayor Standley told Council he had done figures on the revenue of this tax, and had checked this out with the City's investment bankers. Councilman Parry said he liked the idea. Mayor Standley said originally he had talked about this being a "Robinhood" tax, on the 65 per cent of the land that is absentee owned. This is inequitable because everybody benefits from it and 1/2 point should not break anyone's ability to do a deal. Councilman Van Ness said he was not sure the timing was right; the Roaring Fork Valley Foundation is working with consultants on what should be done with the Wheeler. This answer should be first, before the City raises money to do anything about that. Mayor Standley pointed out the largest summer user, the M.A.A., . ~ is in a crisis situation Within the community and is actively being courted by Snowmass to move out there. Secondly, even if the Wheeler were not appropriate for anything except what it is, it needs $900,000 worth of safety improvements. The difference between the safety improve- ments and upgrading for performing arts is onlY $400,000. Mayor Standley pointed out the Council has accepted and adopted the recommendations of the Wheeler Task Force. Council- man Van Ness said the $900,000 figure is to bring the building up to code and provides a lot of things that are not needed. Mayor Standley pointed out the land transfer tax previously voted on was a higher tax and was not as narrowly earmarked. Regular Meeting Aspen C~ty Councll Marcn ii, Mayor Standley read the proposed question and noted the ordinance defines the various terms and the application of the funds. Councilman Behrendt asked if the buyer or seller would pay this tax. Mayor Standley said the buyer would, the theory being that the buyers are new people coming into the community or moving within the community. Richie Cohen pointed out the tax could go either way. Ms. Butterbaugh asked if this could be termed as a contribution, so that it would be tax deductible. Stock said he felt under the IRS this would be tax deductible. Jeff Sachs pointed out in Section 8 discussing the application of funds, it might be more sellable to the voters if the purpose of the funds could never be amended by future Council, but would have to go to the voters. Sachs said in the same section, he felt if Council was going to put a proposal to the voters to spend the surplus, that interested citizens ought to be able to put an alternative proposal on the ballot. Stock noted there is a general initiative and referendum sections of the Charter. Sachs said he felt the $100,000 is rather high and that the reserve will be extremely large fairly soon. Sachs said this is a lot of money for Council to appropriate without going to the voters. Sachs asked about the penalty for not paying the tax, and cOuld a person be fined an amount equal to the tax rather than $300. Stock said the City cannot have a criminal penalty above $300. Bob Throm brought up the possibility of the private sector purchasing the Wheeler from the City and then leasing it back to the City for 20 years. Mayor Standley said the City had pursued this last fall and the tax correction act scuttled the concept in terms of allow- ing the recovery of the capital and ended up deferring the tax. Edgar Stern said after exploring that specific issue, it does not work. Stern stated on behalf of the M.A.A. the restructuring of the Wheeler is absolutely vital. They would like to use the Wheeler almost all summer, and this would be a tremendous relief if it can be accomplished. Jay Pearson asked if it would be possible to escrow the tax over a 12 month time from the date of purchase, it would ease financing the tax. Stock said that could be done and could be included as an option. Stock said this could be done in the authority of the Director of Finance to allow an installment payment. Mayor Standley suggested this could be avail- able only to bona fide permanment residents. Councilwoman Anderson suggested exempting PMH units. Mayor Standley answered this had been thought about, but everyone benefits from the Wheeler. Council changed this to real estate transfer tax rather than land transfer. Stock pointed out this tax is paid on the full purchase price. Stock pointed out the real estate transfer tax is on the document which passes title. If you take title and mortgage back, you pay the tax immediately. If you do an installment land contract where title is not vested until final payment is made, payment is not made until title passes. Mayor Standley said this is important for the bonding people to sell the bonds, they have to have a predictable income stream. Sachs pointed out if a piece of property was in the name of a corporation and the stock is continually sold, the tax would not get paid. Councilman Isaac said he had some problem with the excess of $100,000 as it seems rather large. Mayor Standley noted that Council donations every year for performing and visual arts comes close to that figure, but if Council wants to cut it it is all right. Sachs said he could see problems with different arts groups lobbying for their share of the money. Mayor Standley said right now the M.A.A. and the Visiting Nurses are pitted against each other, and this alleviateS that. Councilman Behrendt moved to read Ordinance ~20, Series of 1979; seconded by Councilwoman Anderson. All in favor, motion carried. ORDINANCE ~20 (Series of 1979) AN ORDINANCE IMPOSING A LAND TRANSFER TAX UPON THE TRANSFER OF INTEREST IN Land Transfer REAL PROPERTY AND PAYABLE BY THE GRANTEE; REQUIRING THE COLLECTION OF SUCH Tax on the Trans- TAX BY THE DIRECTOR OF FINANCE OR HIS AGENTS; EXEMPTING CERTAING TRANSACTIONS fer of Interest FROM THE TAX IMPOSED AND ESTABLISHING PROCEDURES FOR ACQUIRING A CERTIFICATE OF EXEMPTION; PROVIDING FOR THE APPLICATION OF FUNDS TO LIMITED USES; ESTABLISHING PENALTIES FOR VIOLATIONS OF THIS ORDINANCE AND FOR THE CREATION OF A LIEN ON THE PROPERTY TRANSFERRED FOR THE AMOUNT OF THE TAX UNPAID; AND, MAKING THIS ORDINANCE EFFECTIVE ON JANUARY 1, 1980, ON APPROVAL OF THE SAME BY THE ELECTORATE was read by the city clerk Councilman Parry moved to adopt Ordinance #20, Series of 1979, on first reading; seconded by Councilman Isaac. Roll call vote; Councilmen%hers Behrendt, aye; Anderson, aye; Isaac, aye; Van Ness, nay; Parry, aye; Mayor Standley, aye. Motion carried. Councilman Behrendt moved to read Resolution ~6, Series of 1979, by title and publish; seconded by Councilwoman Anderson. All in favor, motion carried. Mayor Standley read the resolution by title. ~ESOLUTION ~6 (Series of 1979) WHEREAS, the City Council of Aspen, Colorado, has, by its adoption of Ordinance No. 20, Series of 1979, approved the imposition of a~ one-half of one Approval of per cent (1/2 of 1%) tax upon real estate transfers within the City of Aspen, Imposition of Colorado, and one-half of on~-~ WHEREAS, Section 12.1 of the Charter of the City of Aspen, Colorado, percent tax on requires that no excise tax be levied until such tax shall have been approved real estate trans-J by a majority of the electors voting at a regular or special election on the fers within Aspen same; and WHEREAS, formal action is necessary to place this issue on the ballot, 2595 Regular Meetinq ~en City Council March 12, 1979 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO: Section 1 That at the General Municipal Election to be held in the City of Aspen, Colorado, on Tuesday, the 8th day of May, 1979, there shall be submitted to a vote of the qualified, registered electors of the City, the following questions as set forth below, which question shall be similarly stated in the Ballot Label and Notice of Election. FORM OF QUESTION VOTE FOR ONLY ONE ~F THE FOLLOWING Shall the City of Aspen impose a Land Transfer Tax on transfers of real property located within the City, which tax shall be in the amount of one-half of one per cent (1/2 of 1%) of the consideration ~ece~Ved for the t~ansfer and the proceeds ~f:Which tax will be used only for the purpose of renovation, reconstruction and maintenance of the Wheeler Opera House and for the purpose of supproting the visual and performing arts. 1. For 2. Against Section 2 Those qualified, registered electors of the City who are qualified to vote under the Constitution and the Charter of the City of Aspen, shall be allowed to vote on the proposed question. Section 3 The election on the proposed question will be held at the designated polling places within the newly established voting precincts between the hours of 7 a.m. and 7 p.m. on Tuesday, May 8, 1979, in the City of Aspen, Colorado. Section 4 The election of the proposed question shall be conducted by the judges and clerks who shall be designated by the City Clerk with the approval of the City Council of the City of Aspen. Section 5 The provisions of registration of eleCtors and for voting by absentee ballot on the question of the proposed question shall be in accordance with the Colorado Municipal Election Law. Section 6 The votes at said election shall be registered on voting machines and the ballot label shall read similarly to the form of question provided in Sec. 1 Section 7 The election on the question of the proposed land trasnfer tax shall be held and conducted, and the votes cast on the question afresaid shall be returned and canvassed, and the result declared in the same manner as nearly as may be provided by law for the return, canvass and declaration of the officers of the City of Aspen. Section 8 The notice of the election on the proposed land transfer tax shall be published in the Aspen Times ~ a newspaper published and of general circulation in said City, and a copy of 'such notice shall be posted at each polling place with the City, at least ten (10) days before the election. The City Clerk is hereby charged with the duty of giving such notice containing such information as is required by law. Councilman Behrendt moved to adopt REsolution #6, Series of 1979, changing land transfer tax to real estate transfer tax; seconded by Councilwoman Anderson. All in favor, motion carried. MAYOR'S DEED - Lyle Reeder/Unit 203, Aspen Wild Condominium Mayor's Deed Councilman Behrendt moved to approve the Mayor's Deed and authorize the Mayor to sign it; seconded by Councilwoman Anderson. All in favor, motion carried. Councilwoman Anderson moved to adjOurn at 9:15 p.m.; seconded bY Councilman Van Ness. All in favor, motion carried.