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HomeMy WebLinkAboutminutes.council.19800428 Regular Meeting Aspen City Council April 28, 1980 JOINT MEETING WITH COUNTY COM~ISSIONERS Mayor Edel called the joint meeting to order at 4:10 p.m. with Councilmembers Behrendt, Collins, Isaac, and Parry and Commissioners Kinsley and Child present. Also present were City Manager Chapman, City Attorney Stock, County Manager Ochs, County Attorney Stuller. 1. Consolidation Agreements - Building and Environmental Health Departments. County Manager Ochs told the Boards he had put both departments into one agreement, which is Building & self-explanatory. John Eldert, finance department, pointed out the changes that had been Environmental made in the agreement. Regarding the building department, language was added stating, Health "Administration of the Finances for this department shall be handled by the County Finance Consolidations Office at no additional expense or charge to the City. The County will provide the City with monthly reports shwoing departmental revenues and expenditures." Aspen ~l~y ~ouncl£ Apr.± 2~, 1980 E~dert pointed out in 2(A) it states the environmental health office will administer the County Air Pollution Program budgeted for 1980. The half-time secretary was deleted. Section 2(G) says the net of revenues and expenses generated by the office shall be shared by the city and county. The administration ~f finances for this department shall be handled by the city. The cash flow section has been rewritten to be more explicit, and permission to exceed the budget must be approved by both entities. City Finance Director Lois Butterbaugh said she felt the agreement was fairly equitable. The city will deduct Clayton Meyring before payments. Commissioner Child asked what the projected savings are. Eldert said for the environmental health department there will be no savings and no costs. The building department saving should be $25,000 for this year. Eldert said they have put a hiring freeze on the zoning officer and replacement of a building inspector until there is a clearer picture of revenues coming in. City Manager Chapman said regarding the environmental health department, it is possible there will be savings if the state takes favorable action giving a larger gran~. Councilman Isaac pointe~ out in Section l(C) it states the zoning officer shall be hired at the discretion of the chief building inspector. Councilman Isaac said this should be at the discretion of the city and county managers. Councilman Isaac said he was not convinced for the need of a zoning Officer. Councilman Behrendt agreed and asked that the wording be altered to "at the discretion of the city and county managers". (Councilman Van Ness came in.) Commissioner Kinsley moved to approve the consolidation agreements with the above amend- ment; seconded by Councilman Behrendt. All in favor, motion carried. 2. Overall Economic Development Plan Changes and Approval. Brian Stafford submitted a memorandum which focuses on all the changes to the OEDP suggested by Council, Commissioner~i, both P & Zs, and the Aspen Chamber, and the OEDP committee members. Stafford went over OEDP approval the proposed changes with the Boards. Stafford stressed that the OEDP is not intended to replace or supplement any land use or master plan documents for Aspen, Pitkin County or th~ Town of Snowmass. The OEDP is to be used as a reference and resource document, a document to be submitted to the EDA, and should be useful in preparing grants. Stafford told the Boards they eliminated the program to encourage timber industry as they felt the industry does not exist here and should not be encouraged. Commissioner Child said he felt a lumber industry was needed; it is important to differentiate between millin~ and sale. Commissioner Kinsley sta~ed~it is extremely inefficient to cut trees in high altitUde, Councilman Parry agreed with Child. Councilman Isaac pointed out the city is working with RARE II and Representative Johnson is trying to get lumber industry into these areas. This statement would be playing into his hands. The Boards agreed. Staffor~ went through the rest of the changes in his memorandum. Commissioner Kinsley moved to endorse this program; seconded by Councilman Isaac. All in favor, motion carried. 3. A-95 Review: Rio Grande Trail Improvements. Stafford told the Boards they have applied for a grant to do an overlay of the Rio Grande trail. The trail is below standard Rio Grande Trail width and was done in many places by hand. This is a grant program available through the improvements Federal Highway Administration to increase and encourage bicycle use and safety. The grant grant is $26,600 Federal share and $8,900 local ~hare to overlay 1.7 miles of the Rio Grande trai~. This will include widening, paving~ some drainage improvements and safety improvement. This portion of the trail goes from the Trueman Center to the Slaughterhouse bridge. Stafford told the Boards this grant will be under intense competition. Commissioner Kinsley moved for favorable comment; seconded by Commissioner Child. Councilman Isaac said he would like to be able to continue the trail to the Airport Busine~ Center. Stafford said that would not be eligible under this grant program. Kinsley said the County has made a deal with the land owners along this portion not to do this. Stafford told the Boards another grant application has been filed under this same program to produce brochures to encourage and promote bicycle use in Pitkin County. This is for maps of the trails system. Mayor Edel suggested they sell the back page for ads to bicyclel shops. All in favor, motion carried. 4. A-95 Review: Community Plannin~ Grant. Karen Smith, planning director, told the Boards the Federal government give 701 monies which is for comprehensive planning systems. This application is regional for 7 grants for the region. Three of the grants are of interest to Pitkin County and for that reason, Ms. Smith recommended favorable comment. Councilman Behrendt moved for favorable comment; seconded by Councilman Isaac. All in favor, motion'carried. Councilman Isaac told the Boards that COG would like the counties and cities to join in with an amicus brief to support Summit County. County Attorney Stuller said the county was already in. Councilman Isaac said a tentative agreement with the San District and COG has been made, the cities will pull out of the law suit and they will fight the governor. There will be a meeting under the 701 grant on planning to be held in Keystone the end of May. This is a follow up on the housing conference held last fall. Ruedi reservoir Councilman Isaac brought up a note from Musick regarding Ruedi reservoir. Child told the sale of water Boards the Water Conservation Board would be having a meeting May 7 to talk about Ruedi and he would attend. Any Council and Commissioner action should come after the CWCB meeting County. Attorney Stuller said the purpose of the letter is to alert the Boards the point act.at which they should act. Mayor Edel said the Boards do not know how they are going to Regular Meeting Aspen ~lty ~ouncl± ~pr±l z~, ~ov Councilman Behrendt said the Boards should wait until after the notice to litigate is issued. City Manager Chapman pointed out there is not money in the city budget to pay for litigation. The Boards suggested having Musick at the next joint meeting to brief the Boards on costs and what is going on. COUNCIL MEETING MINUTES There were no minutes. CITIZEN PARTICIPATION 1. Greg Cole, architect, presented the City Hall master plan approved by Council in 1976 and wanted to review this with the present Council. The third floor sets the stage for the entire remodel of city hall. Cole presented drawings of the entire renovation with City hall the concept of an atrium from the first tO third floors. The main floor would have the renovation information function; police would have space on the first floor and basement. There will plans be an elevator from the basement to third floor. In the basement, there would be a waiting area for the Council chambers. The chambers will open up onto the park on the ea side of the building. Cole said he felt city hall should have a strong image of being one building and he hoped the Council would consider moving ahead with the rest of the remodel. The second floor is designed around the atrium with a reception desk and plans for the building department, city clerk, city administration. The third floor is built pretty much the way the master plan was approved. City Manager Chapman told Council he had asked the capital improvements team to work city hall into their five-year capital improvment program. COUNCILMEMBER COMMENTS 1. Councilman Isaac congratulated Mayor Edel, Sheriff Kienast and Aspen for coming off well in Sixty Minutes. 2. Councilman Isaac brought up the P & Z attitude on the Institute. City Attorney Stock said he had submitted a memorandum to P & Z recently. There are two different statements Aspen Institute being made by P & Z. Stock told Council some of the members believe if they take any P&Z attitude action at this point with the law suit pending, they could not be fair with regard to the Institute; that the fact the law suit exists would change their normal opinion one way or another. Another statement from the P & Z is that since they have been named personal2 and their own personal fortunes are subject to possible law suit, and if they take any activity if could affect the law suit to their own personal detriment. Stock told Counci~ he was trying to allay the fears of the P & Z. There is a state statute if a Court finds they are personally liable and enters a judgement against them, the City of Aspen has the legal responsibility to pay. Stock has talked to the Institute attorneys in the hopes they will show good will and dismiss the personal monetary damages claimed against individual P & Z members. This would take a court order, a motion by the Institute. Councilman Van Ness pointed out the city had requested individuals be dropped and the judge denied this. Council suggested discussing this with R. O. Anderson and have Councilman Behrendt do this. Stock said the city is only asking the Institute to drop the personal liability. Councilman Isaac said he would like to get all the individuals out. 3. Councilman Isaac brought up the request from Su/m~it. county for an amicus brief on their water fights. They are asking the different entices in the Council of Governments to send briefs supporting their position, basically along the guidelines o'f the 208. Council agreed to have City Attorney Stock submit this brief. 4. Councilman Isaac requested that some of the noon meetings.be moved to 5:00. Mayor Edel said they would spread them around. 5. Councilman Behrendt noted there are a lot of stop signs that look 50 years old and requested staff to look into these. 6. Councilman Van Ness said the legislature has changed the right-of-way law so that if you are pulling out from a side street to a through street, it is not clear who has the right-of-way. The new law requires stop signs in order to determine who has the right of-way. Stock said he had requested stop signs on all side streets Onto Cemetery Lane. City Engineer McArthur said he was working with the police department to see where all signs are needed. City Manager Chapman said he has asked for a survey of all sign requirements. 7. Mayor ~del announced there is a new superintendent of schools hired and Council has been invited to meet Ann Freers, Tuedsay, May 6, from 5 to 7 p.m. at the Aspen Middle School commons. LIQUOR LICENSE RENEWAL - Aspen Drug Councilman Behrendt moved to renew the liquor license; seconded by Councilman Parry. No Liquor license problems were reported by staff. All in favor, motion carried, renewal APPLICATION FOR 3-WAY LIQUOR LICENSE - Pinocchio's of Aspen Ltd Aspen Drug Liquor License Mayor Edet opened the public hearing. City Clerk Koch reported files, posting and publi? application cation in order. Ron Austin, on behalf of the applicant, told Council they are applying 3-way for a 3-way liquor license. Austin prsented petitions with over 400 signatures of people Pinocchio's indicating their feeling the needs of the neighborhood have not been met. Austin stated that based on the nature and character of the restuarant, the needs have not been met. Austin pointed out that some other 3-way licenses in the immediate area have been termin- ated. This will not actually establish an increase in the number of licenses within the city. Austin told Council Doug Hose is principle owner of the operation and bought Pinocchio's in 1968 and has been in continuous operation since then. Hose's character is above reproach. Austin said the character of the operation of Pinocchio's will not change in any manner other than being able to sell three types of alcoholic beverages. There will be no change in the premises. Mayor Edel closed the public hearing. Councilman Behrendt moved that based on a public hearing held April 28, 1980, relating to an application of Pinocchio's of Aspen Ltd, for a three-way liquor license, Council finds the needs of the community have not been met and the license is' hereby granted; seconded by Councilman Parry. All in favor, motiOn carried. APPLICATION FOR CHANGE OF LOCATION - Firehouse Tavern (formerly Buster & the Fox) Liquor License City Clerk Koch reported there is some trouble with outstanding debts and the applicant application - ~equested tabling for two weeks. Councilman Behrendt moved to table to May 12, 1980; Firehouse seconded by Councilman Van Ness. All in favor, motion carried. Tavern Inc. VENDING CONTRACT - Peppermint Patti Vending Councilman Behrendt moved to approve the contract; seconded by Councilman Parry. Tom contract Dunlop explained this year will be an expanded operation, with hot dogs. The applicant Peppermint has a good operation and has complied with everything requested by the environmental healtl Patti department. All in favor, motion carried. SUBDIVISION EXEMPTION - Naiman Subdivision exemption Sunny Vann, planning office, explained this is the same as all other subdivision exemp- Naiman tions. Councilman Isaac moved to approve subdivision exemption taking into account the engineer- ing comments, six month minimum leasel and first right of refusal; seconded by Councilman Behrendt. All in favor~ motion carried. CITY MANAGER 1. Merit Increases. City Manager Chapman said it was his understanding that merit increases for city employees were not reflected in the budget but when it was reviewed City after sales tax collections, Council would make a decision about the increases. Chapman ~l~ployees had shown the Council in the general fund 1980 budget update, the city does have suffi- merit increases cient funds; Chapman recommended proceeding with this item and approve merit increases for city employees. Chapman said he felt this would indicate to the employees good faith. Finance Director Butterbaugh said the city does have adequate revenues to cover this and the number look reasonable. Chapman told Council the increases are $35,000 in the general fund; $12,000 in transportation; $4,000 in water fund and $2,500 in the electric fund. Mayor Edel said the intent of COuncil was to build up the cash surplus this year. Mayor Edel said he was afraid of the economic conditions for Aspen this summer and next winter. Councilman Van Ness pointed out the employees have had small raises in the past years and the coSt of living has been rocketing up. Councilman Van Ness said his opinion was that it is bad business to underpay employees to the point where they are constantly leaving and 25 per cent of other employees time is training new emPloyees. Councilman Isaac said Chapman addresses the build up of surplus in the five-year financial plan very well. Councilman Collins moved to approve the merit increases; seconded by Councilman Van Ness, and Councilman Isaac. All in favor, motion carried. 2. Parks Department Vehicle Lease. Chapman presented a lease for a parks department vehicle to replace a vehiCle, also leased, which was crashed. Chapman said he would like Vehicle leave Council's approval; there is money in the budget. Chapman told Council this is a white parks dept. Toyota pick up, four-wheel drive. Finance Director Butterbaugh told Council there are four~Otlher leases~l, these willxa~l be Put together Un ~ne ordinance. Councilman Van Ness moved to approve the lease for the parks department vehicle; seconded by Councilman Parry. All in favor, motion carried. 3. Bonding for Water Plant Housing. Chapman reported he had been in contact with the bor Bonds - water underwriters who are making an offer. Last week there was a firm offer which was a 10 plant housing year payment at $375,000 per year, a balloon at $776,000 in the llth years, balloon to $1,200,000 in the 12th years and $1,100,00 in 13 and 14 years. This way the city would have the investment income of $400,000 to invest up front; at 8 per cent interest on savings of 10 years and raising the rental rates 5-1/2 per cent a year each year forl0 years, there would be enough reserve to pay the balloon payments. The underwriter is going for other deals, that will come up better. The underwriter has sent information to Moody's in New York to get a bond rating. HIGHLANDS BUS EXTENSION Bus extension Duane Fengel, transportation director, presented some ridership statistics and cost to Highlands statistics. Fengel said the city has been consistent with bus operations except for this route. Fengel said the city should provide this service; the Maroon Bells bus system starts in two months. Starting and stopping,.a~d changing the service confuses people. Fengel said he would like to provide a full-time service to Highlands area. Councilman Isaac moved to approve the Highlands bus service; seconded by Councilman Behrendt. Regular Meeting Aspen ~lty ~ouncll Aprl± Z~, Councilman Parry asked where the money would come from. Fengel said he was not sure where the budget was; the cost of fuel has held pretty steady. The transportation department has been running a lot of specials and has generated some extra money. They are trying to get a PUC license. Fengel said he felt they could handle this run for the rest of the year. Ms. Butterbaugh pointed out there is extra money in the seventh penny and there is a carry over from 1979. Fengel said he felt there is good potential for ridership to and from Highlands. Councilman Behrendt asked if there were negotiations for the city to run the ski service to Highlands. Fengel said Highlands felt they could not make it this yea~ Councilman Behrendt asked if the city would discontinue the daytime service to Highlands during the ski season. Fengel said he would like to keep the service going all the time to Highlands. Councilman Behrendt said he had talked to the ski corp and assured them the city was not running buses to Highlands during the ski season daytime because they are not paying for the service. Councilman Behrendt pointed out this could become a source of irritation to the ski corp because they are putting out a lot of money for the city to run the bus system to the Ski Corp areas. Fengel said they had not put a ski corp bus on the route to Highlands, nor had they used a small bus on the ski corp routes. Councilman Behrendt said that is not the issue; Councilman Behrendt said people will ride the city buses to ski at Highlands an~ Highlands is not putting any money into the bus system like the Ski Corp is. Jim Wentzel, Highlands, concurred there may be duplication during the ski season Highlands is running 7 buses and the skiers should ride the Highlands buses. Wentzel said he felt strongly about a city bus in the night time. Councilman Van Ness pointed out there are skiers in town going to Aspen mountain that ride city buses, and the ski corp does not pay for the in-town buses. Mayor Edel suggested the city face this next fall and discuss this particular problem. Fengel agreed they would run the day and night service to Highlands and come back in October. In the meantime he will discuss this with the ski corp. All in favor, motion carried. ORDINANCE #11, SERIES OF 1980 - Celia Marolt Annexation Mayor Edel opened the public hearing. Ord. 11, 1980 Celia Marolt Councilman Isaac moved to read Ordinance 911, Series of 1980; seconded by Councilman Annexation Parry. All in favor, motion carried. ORDINANCE ~11 (Series of 1980) AN ORDINANCE ANNEXING A TRACT OF LAND KNOWN AS THE CELIA MAROLT PROPERTY LOCATED IN PITKIN COUNTY, COLORADO, WHICH ANNEXATION iS ACCOMPLISHED PURSUANT TO THE PROVISIONS OF THE COLORADO MUNICIPAL ANNEXATION ACT OF 1965 was read by the city clerk Joe Wells, planning office, told Council this parcel is 36,000 square feet and the origin- al planning office recommendation was to zone it R-15A. There was some concern that an R-15A without a restriction against further subdivision would have the effect of elimin- ating possible employee units on the site. R-15A as a single lot, a duplex would be permitted with the second unit deed restricted; however, on a 36,000 square foot parcel, the creation of a second lot would be less than 20,000 square feet necessary to create two units. Only two free market single family units would be permitted in the event a lot split had been accomplished. Wells pointed out the Opal Marolt property, which is being annexed, is recommended R-15A mandatory PUD, and the mandatory PUD designation should apply to this site as well. Mandatory PUD triggers the slope reduction formula; this formula recognizes that steeply sloped Isites are less developable and should have less density potential. The PUD designation reduces the allowable density to 20,000 squa~ feet which would allow a duplex situation. The planning office feels the PUD designation should be added. Councilman Behrendt said there is a claim that there might be a bandit unit in the build- ing at this time and asked if staff had checked this out. Wells answered this has not been checked out because the tenants are not in town. Lennie Oates, representing the applicant, told Council this has never been used as a duplex; it is not set up like that. Wells told Council the PUD designation has been applied to the adjacent site for the same reasons the planning office would like it applied to this site. Ms. Smith told Council the P & Z had recommended R-15A with restriction against subdivision of the lot, so that the effect is basically the same. Oates said the applicant felt there were some advantage of coming into the city at the R-15 designation. Their zoning request was R-15A without the PUD. P & Z recommended zoning as long as there was a contract arrangement so that there was not a lot split. Oates said he would like to have the right to come back and go through the subdivision process; however, he agreed not to avail Ordin~nc~ ~3, which is automatic lot split. Wells said the planning office would prefer to leave this unannexed if the city does not ge~ the benefit of the employee unit. City Attorney Stock said he felt it was inappropriate to apply to one site in a zone some- thing which is unique and different to it and not apply to all sites within the zone. To restrict R-15A would be subject to challenge. Stock recommended R-15A/PUD. Councilman Isaac said he felt the Council should go with planning office and attorneys recommendation Councilman Isaac moved to adopt Ordinance ~11, Series of 1980, as amended with PUD added in Section 2; seconded by Councilman Van Ness. Roll call vote; Councilmembers Collins, nay; Parry, aye; Van Ness, aye; Isaac, aye; Behrendt, nay; Mayor Edel, aye. Motion carried. Aspen ~l~sy ~ouncl± April 28, 1980 ORDINANCE #14, SERIES OF 1980 - Lodge Condominiumization Mayor Edel opened the public hearing. Ord. 14, 1980 Condc~ini%mliza- Councilman Isaac moved to read Ordinance ~14, Series of 1980; seconded by Councilman ~: t-ion of lodges Van Ness. All in favor, motion carried. ORDINANCE #14 (Series of 1980) AN ORDINANCE AMENDING SECTION 20-3(s) (2) OF THE MUNICIPAL CODE OF THE CITY OF ASPEN BY REQUIRING SUBDIVISION APPROVAL FOR THE RESUBDIVISION OF AN IMPROVEMENT WHICH HAD PREVIOUSLY COMPLIED WITH THE PROVISIONS OF CHAPTER 20 OF THE MUNICIPAL CODE OF THE CITY OF ASPEN;.~AMENDING SECTION 20-9(c) OF THE MUNICIPAL CODE OF THE CITY OF ASPEN BY DELETING THE PROHIBITION AGAINST THE SUBDIVISION OF NON-CONFORMING STRUCTURES; AND ADOPTING A NEW SECTION 20-23 HO THE MUNICIPAL CODE OF THE CITY OF ASPEN WHICH WILL ALLOW FOR THE CONDOMINIU ~ZATION OF LODGES was read by the city clerk Councilman Behrendt brought up 20-23(6) (a) on page 4, "an amount equal to thirty percent of the assessed value of the property, as condomin±umized" and said he thought it was before condomiuniumization. The assumption is that the property is worth a great deal more after condominiumization. Mayor Edel said the way he looked at it the dollar value put into upgrading the facility if one used assessment before condominiumization would be a great deal less. Mayor Edel said he could not go along with the deletion of "as condominiumized". Councilman Behrendt said the lodging association accepted the 30 per cent but the understanding was before condominiumization. Mayor Edel suggested approving this because the moratorium is up, and if this is wrong with the lodging association the ordinance can be changed at the next meeting. Councilman Behrendt said the idea was to put a base minimum price on the upgrading of the units. Ashley Anderson stated he had a problem with the 14 day restriction on owner's unit. Anderson said he feels this section may tend to defeat the purpose of the ordinance, which is a financing tool to get money to help upgrade the facilities. This is irrelevent if one cannot market the unit; this is a financing problem and will cause a problem. Anderson suggested letting the owner have 14 free days, but after that pay the daily rate. Councilman Parry pointed out the owner is a tourist. Richard Grice, planning office, told Council that the owner of a unit is a different tourist than a typical short-term tourist that goes out on the town and spends money. Grice said this would undermine the original purpose of condominiumizing lodges. Councilman Isaac agree this is the meat of the issue; not taking the units off the short-term market. If owners come in for a whole month, they will eat away at the sales tax revenue. Councilman Behrendt suggested passing this the way it is and arguing these two points at the next meeting. Councilman Isaac moved to adopt Ordinance #14, Series of 1980; seconded by Councilman Van Ness. Roll call vote; Councilmembers Isaac, aye; Parry, aye; Behrendt, aye; Collins, nay; Van Ness, aye; Mayor Edel, aye. Motion carried. ORDINANCE ~18, SERIES OF 1980 - Holden Ditch Agreement Mayor Edel opened the public hearing. Ord. 18, 1980 HoldenDitch Councilman Isaac moved to read Ordinance #18, Series of 1980; seconded by Councilman'Van agreement Ness. All in favor, motion carried. water delivery to Castle Creek ORDINANCE ~18 hc~eowners (Series of 1980) AN ORDINANCE RATIFYING A WATER DELIVERY AND DITCH MAINTENANCE AGREEMENT BETWEEN CASTLE CREEK HOMEOWNERS ASSOCIATION AND THE CITY OF ASPEN PROVIDING FOR DELIVERY OF WATER TO THE CASTLE CREEK HOMEOWNERS ASSOCIATION AND MAINTENANCE OF THE HOLDEN DITCH was read by the city clerk City Attorney Stock told Council this came about as a result of a suit from the City to change the use of certain water rights in connection with the redesign of the golf course. The city added certain ponds to be used for irrigation purposes. The homeowners objected that the city was harming their water rights. The city negotiated with them and have a signed agreement. Mayor Edel closed the public hearing. Councilman Parry moved to adopt Ordinance ~18, Series of 1980, on second reading; seconded by Councilman Isaac. Roll call vote; Councilmembers Isaac, aye; Parry, aye; Van Ness, aye; Collins, aye; Mayor Edel, aye. Motion carried. PLUM TREE INN TERMINATION OF LEASE Wayne Chapman, city manager, reminded Council they had decided the lease with the Number Pl~Tree Inn Two Main corporation for the Plum Tree was considered not to serve the best interests of termination of the city, and the city should pursue termination of the lease. The city decided t~ pursue lease a legal front and trying to negotiate a termination of the lease. Chapman presented a proposal for a negotiated termination of the lease. The agreement has the city assuming the current obligations of the Number Two Main corporation has in regards to the Plum Tree, which are two notes held by the Bank of Aspen. The Bank has agreed to consglidate into one note payable by the City in April 1981. There is another note held by the Centra Bank of Denver, also payable April 1981. These notes total approximately $195,000. Regular Meeting Aspen ~l~y ~ounc~l n~ ~v, .... Chapman told Council the Number Two Main corporation has about $40,000 in accounts payabl~ from current operation; the city of Aspen will assume power of attorney and attempt to settle those. In exchange for this, the Number Two Main will terminate the lease and provide quick claim deeds for any and all interests for property at the Plum Tree. Plum TreeInn Chapman told Council the staff received an informal estimate of value which is in the cont'd neighborhood of $2,000,000 as a lodge facility. Chapman told Council the city had been receiving $60,000 in income, which represents a 3 per cent return, which is substantially under performance. The termination of the lease would leave the city free to negotiate a better lease or sell the property. If the property is sold, $1,700,000 could be invest~ at a better return than the current lease. The city will get ownership of the tennis courts which is value over $80,000. If this settlement is accepted, the city will avoid legal fees and court fees. Alan Schwartz told Council he feels this is very complicated and thing is clear cut about this case. The facts are difficult to reconstruct. The lessee does have the rights of arbitration. The bottom line is that their performance on the investment is totally inadequate. Councilman Behrendt asked what the value was on the renovation in the restaurant and kitchen area. Chapman told Council the city required them to document the improvements and they did invest $150,000. Councilman Behrendt asked how much damage there is to the property. Chapman said the estimate is about $30,000 that would have to be made if the Plum Tree is to be sold. Chapman told Council he had contacted both banks holding notes, and they indicated they would have no problem with the city as a client. Council- man Isaac asked the status on the Maco Stewart case. City Attorney Stock told Council it is set for trial in June. Stock told Council that is one reason the city asked for termination rather than assignment of the lease. The city did not want Number Two Main's share of the law suit. Stewart's claim against the city is a challenged based on damage to this reputation. The suit against Number Two Main is one of leading him to believe they could lease him the space, when they did not have the right to. Councilman Van Ness said comparing the value of the building and the return on this lease of 3 per cent, there is a clear incentive to terminate the lease. Councilman Van Ness said he was bothered because Number Two Main was required to keep accurate books and they did not and their figures were not consistent. Chapman pointed out that Number Two Main had remedied this situation by paying the city. Chapman said one of the basis for his recommendation to terminate the lease is that this is not a business that the city knows what they are doing. Councilman Behrendt moved to follow the city manager's recommended course of action, step: 1, 2, 3 outlined in a memorandum dated April 22, 1980, concerning the termination of the lease agreement on Plum Tree Inn; seconded by Councilman Parry. Chapman summarized his recommendation to enter into an agreement with Pyramid Management corporation to manage the facility for the city through April 30, 1981; the city immed- iately begin a program trying to secure a sale or new lease and to present the best offer for sale to the public for a voate. Councilman Behrendt amended his motion to include a buy out price of $250,000; seconded by Councilman Parry. All in favor, motion carried. Chapman told Council he would come back with a management agreement, revised budget, etc. HISTORIC STRUCTURE RENOVATION City Attorney Stock told Council that Councilman Isaac, as a member of the Wheeler Opera House Commission, is concerned a. bout the zoning code as it applies to historic structures Zoning Code and non-conforming structures. Stock told Council the alternatives are to change the RE: Historic historic overlay zone to modify the area and bulk requirements or to rezone the Wheeler structures public and establish the area and bulk requirement by special review. Councilman Isaac said any additional structure to be attached to the Wheeler would be in violation of the existing code. Councilman Isaac pointed out there are a number of historic structures in town, and he would like to create a mechanism to allow them to renovate and update the buildings. Councilman Isaac said the easiest way is to rezone the Wheeler P, Public; however, there are other buildings with this problem that do not fit into that category. Councilman Van Ness suggested having the HPC and P & Z come up with opinions on this problem. Sunny Vann, planning office, said there is an immediate problem with potential design solutions for the Wheeler. Vann said the Wheeler is within the intent of the Public zone This would give the architects some latitude in working on the design; the Wheeler would still be subject to HPC review. Vann said the planning office would have no problem supporting the zoning of Public; this could be initiated by P & Z or by a motion from Council. The Council should also instruct the planning office to address the issue of area and bulk requirements for other historic structures. Councilman Isaac said what the architects need is a feeling from Council they are willing to exempt this building. Council agreed they were willing to use some mechanism to solve the area and bulk problems of the Wheeler. STREAM CLASSIFICATIONS STock told Council there is a process to classify streams and waters within a district Stre~u and a high quality rating will prevent a degradation of that water quality. For the classifications waters in this district, the city and county did make recommendations. The water bringin into the city's water system ought to be classified as a water supply source. In Pitkin County, the wilderness area was approved as High Quality 1, which would prevent trans- mountain diversions. The Roaring Fork down to Hunter Creek is identified as Rec 1, cold water 1, water supply and agriculture. We asked for High Quality 2. Below Hunter Creek we asked for Rec 1 and received Rec 2, which is what the sanitation district is currently able to live with. Getting Reel would have forced the san districts to go to land base application. 2875 Regular Meeting Aspen City Council April 28, 1980 Stock told Council they could accept the ratings as they are; go to litigation, or approach the EPA and ask for a higher rating. Stock pointed out what the streams have been designated may well be what the sanitation districts can live with. By challenging the stream classifications to EPA, this may break down the relationship with the san distriction. It is the reco~endation of the environmental health officer, Tom Dunlop, the city accept what we have now. Council said this should be discussed with the county commissioners at the next joint meeting. Councilman Behrendt moved to adjourn at 8:10 p.m.; seconded by Councilman Van Ness. All in favor, motion carried. KathryD~. Koch, City Clerk ~Regular Meetino