MINUTES FOR THE STUDY SESSION
ASHLAND CITY COUNCIL
January 11, 2007
Civic Center Council Chambers
1175 E. Main Street
|CALL TO ORDER|
Mayor Morrison called the Study Session to order at 5:15 p.m. in the Civic Center Council Chambers. He noted he would have to leave early and Councilor Silbiger was selected to be Council Chair in his absence.
City Administrator Martha Bennett announced the Executive Session scheduled to occur after the Study Session had been postponed to a later date.
Councilors Hardesty, Navickas, Hartzell, Silbiger and Chapman were present. Councilor Jackson was absent.
|1.||Discussion of Mt. Ashland Asset Appraisal.|
Administrative Services Director Lee Tuneberg introduced Ted Farwell of Winterstar Valuations, Inc. Mr. Tuneberg explained Mr. Farwell was hired in October to conduct an appraisal of Mt. Ashland Association's assets in order to assure compliance with the 1992 contract regarding minimum liquidation value. As of last January, the minimum liquidation value that is required to be maintained by Mt. Ashland Association is $288,000.
Mr. Tuneberg directed the Council to the information listed on page ii of the appraisal. He noted the total liquidation value was determined to be $672,700; however the estimated cost to remove the ski lifts is $921,500 and the removal of the buildings would cost $243,000. Mr. Tuneberg requested the Council discuss the appraisal and direct their questions to Mr. Farwell.
Mr. Farwell clarified the main difference between forced liquidation value and orderly liquidation value is time. He stated with a forced liquidation you have to move the items right away and will likely not get as much money.
Mr. Farwell commented on the closures of two ski areas he was involved with and stated in those instances the ski lifts were not removed. He stated the land was turned over to the Forest Service and the Forest Service did not have the budget for removal.
Councilor Navickas stated that under the 2005 Resolution, Mt. Ashland Association was directed to comply with the 1992 alternative which requires the ski lifts to be removed.
City Administrator Martha Bennett stated the lease sets out a minimum liquidation value that must be maintained, and according to the appraisal, Mt. Ashland Association has sufficient assets on the mountain to satisfy the requirement of the lease. She added the question of how much it would cost to restore the area is a separate issue. She stated the minimum liquidation value in the contract may not be sufficient, but Mt. Ashland Association has complied with the contract. Ms. Bennett requested the Council focus on the appraisal before them and ask their relative questions to Mr. Farwell while he is here. She stated Council could have a separate discussion on their interpretation of the lease and stated staff is not prepared to have this conversation tonight.
Mayor Morrison questioned the margin of error for these types of appraisals.
Councilor Navickas expressed his concern that some of the items in the appraisal may not have as high of a liquidation value as indicated. He also stated that Section 1 of the 2005 Resolution specifically references Alternative C of the 1992 alternative, which includes specific parameters for removal of the ski lifts.
Mayor Morrison left the meeting at 5:50 p.m.
Public Works Director Paula Brown noted the need to get a decision from the Forest Service on whether they would require restoration or reclamation. She added the City needs to meet with the Forest Service and negotiate what would be involved.
Ms. Bennett stated it is important for the Council to feel comfortable with the figures in the appraisal and noted this would come back to the Council at a regular meeting for acceptance.
Councilor Navickas noted a discrepancy regarding the John Deere Wide Crawler listed on pages 16 and 17. Mr. Farwell clarified it is a 1967 Wide Crawler and is valued at approximately $4,000 with an additional $2,000 for the attachments. Councilor Navickas stated he is familiar with this piece of equipment and does not believe it is worth as much as indicated.
Councilor Navickas stated he would like to have seen a more critical analysis. He expressed his concern that some of the items do not have the value listed and stated the appraisal seems to be inflated. He also commented that he does not feel they can separate the appraisal from the restoration and believes the City should work towards the best restoration possible, which includes removal of the lifts. He also stated the City should ensure that Mt. Ashland Association meets the conditions of Alternative C of the 1992 alternative.
Ms. Bennett encouraged the Council to submit their specific questions to Mr. Tuneberg and noted once the report has been approved it will be legally binding. Mr. Tuneberg noted it would take a few weeks to make any necessary revisions.
Meeting adjourned at 6:10 p.m.
April Lucas, Assistant to City Recorder