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1989-01-10 Support Documentation Town Council Work Session
u VAIL TOWN COUNCIL WORK SESSION TUESDAY, JANUARY 10, 1989 2:00 p.m. AGENDA 1. Discussion of Restaurant Decks on Town of Vail Property 2. Discussion of Proposal to Locate a Temporary Retail Post Office~in the Town of Vail LionsHead Parking Structure 3. Olympic Bid Contribution Request by Colorado Ski Country USA and the Denver Olympic Committee 4. Consideration of Request from U.S. Disabled Ski Team Ski Challenge to Contribute $1,000 5. Review of Summer Marketing Film and Request of Roger Brown to Make It Available to Selective International Media Representatives 6. Review of Revocable Right-of-Way Permit for Construction Encroachment at Lot 26, Block 7, Vail Village First Filing (165 Forest Road) 7. Planning and Environmental Commission Report 8. Information Update 9. Other a VAIL TOWN COUNCIL WORK SESSION TUESDAY, JANUARY 10, 1989 2:00 p.m. EXPANDED AGENDA 2:00 Larry Eskwith Dan Mulrooney 1. Discussion of Restaurant Decks on Town of Vail Property Action Requested of Council: Reaffirm or modify policy of charging $2/square foot/month for restaurant deck space on TOU property. Background Rationale: Dan Mulrooney objects to the increase placed on Bart & Yeti's deck. Under a former agreement, he has been paying $1.00/square foot/year, and the increase he feels is unreasonable. 2:20 Ernie Chavez Kristan Pritz 2. Discussion of Proposal to Locate a Temporary Retail Post Office in the Town of Vail LionsHead Parking Structure (Applicant: U.S. Postal Service, Mr. Ernie Chavez) Action Requested of Council: Determine if it is appropriate to use a portion of the LionsHead Structure for a temporary postal service facility during the WASC. Background Rationale: The U.S. Postal Service would like to provide additional postal services during the World Alpine Ski Championships. They are proposing to locate a "Postal Retail Trailer" in the WASC parking lot east of the Vail das Schone shopping center and a service center in the LionsHead Structure. The LionsHead location would be at street level inside the southwest corner of the structure (just to the west of Rick's Cafe). 2:35 Kent Rose 3. Olympic Bid Contribution Request by Colorado Ski Country USA and the Denver Olympic Committee Action Requested of Council: Approve/deny some level of funding for the Denver Olympic Committee. Background Rationale: CSCUSA is suggesting $1,000 per town from CAST. There are only 5-6 towns which may be affected directly by an Olympic bid with Vail being the largest and Dillon the smallest. Something between $1,000 and $5,000 would probably be appropriate. 2:50 Margie Pitts 4. Consideration of Request from U.S. Disabled Ski Team Ski Challenge to Contribute $1,000 Action Requested of Council: Approve/disapprove participation of the Town in the Disabled Ski Team Ski Challenge. Background Rationale: A Ski Challenge has been organized to raise money for the U.S. Disabled Ski Team. A number of Denver Broncos will be in Vail January 11-12 to participate and support this effort. Margie-Pitts is asking the Council to have a town team participate at a cost of $1,000. 3:00 Roger Brown 5. Review of Summer Marketing Film and Request of Roger Brown to Make It available to Selective International Media Representatives Action Requested of Council: View the 26 minute video. Approve/disapprove Roger's request to provide copies of videos to selective media representatives during the WASC. Background Rationale: The Summer Marketing Film is substantially complete (except for music soundtrack) and Roger wants to show it to the Council. He also wants to suggest a scaled-back version of last week's proposal to make copies of videos available to some selective members of the international media present during the WASC. 3:45 6. Review of Revocable Right-of-Way Permit for Construction Rick Pylman Encroachment at Lot 26, Block 7, Vail Village 1st Filing (165 Forest Road) Action Requested of Council: Review the request for a revocable right-of-way agreement. Background Rationale: A garage under construction on Forest Road encroaches approximately 6 feet over the property line, onto Town of Vail road right-of-way. The building permit was issued under condition that the garage not encroach over the applicant's property line. 3:55 7. Planning and Environmental Commission Report Peter Patten 4:00 8. Information Update Ron Phillips 4:05 9. Other -2- ,~p~TES POSTq YI C O ~' W m H a z 7 U.S.M/11L m t t • ~ # t ~ B11~~ ~~teS P®stal Se~riCe VEIL, C^vo X1057-9998 ~ounc i 1 I~~e mbe ~ s %ne Postal :service S•ro;zld life to ~zse some sp~~.ce in the Lionshead P_~.rl~ing structure during the ~~dorld G'hampionships from Jan ?9 thru Deb 130 19g9e -le ~.,rould install a counter 11 feet long to service the publicm ;~Ie will accept all mailing services a,rd sell st~,:::ps and retail items, The unit will be manned as need dictateso Probably from g:00 am thru 5:00 pm, pit some point soon I would like to discuss the possibility of install- ing avending rachine in the i~I:in parking structure, It would consist o_' a vendor for books, 15, 25 and otaer stampse y1on~; with this ~.ae would like to install a collection bozo r'here is a strong feeling from the business's that are there, that this ~~rould be very beneficial to there ^h~,nk rou for ;;your considerationo G ~~ Lrnest A, Chavezq Postmaster r A Co~a~ado Associatio ofi Ski Towns c/o Town of Breckenridge P. 0. Box 168 M E M O R A N D U M T0: All CAST Members FROM: Gary Martinez DATE: December 23, 1988 SUBJECT: Olympics ~~ RtC'~ G ~ i; ~ 719t3~ Breckenridge, CO 80424 Steve West recently received the attached letter from John Lay, President of. Colorado Ski Country U•S.A., regarding preparation and submission of a bid to the United States Olympic Committee for the 1998 or 7.002 Winter Games. You will recall that the Olympic bid was briefly reviewed at our December 9 , 1988 CAST meeting. Since no funding request had been presented at that time, neither individually to members nor to CAST, there was no discussion on that issue. There did seem to be general support for a. Colorado bid, but also recognition that competition between members for the various events could hurt the organization. Mr. Lay's letter encourages CAST members to consider raising at least $20,000 to $25,000, but in a conversation with him on December 21, he suggested $1,000 per town. John further indicated. that without West Slope financial support.other.than that from CSCUSA, the bid would probably fail. Although the Colorado Olympic Steering Committee has targeted February 1, 1989 as the date by which to have all funding committed, John felt commit- ments should be made by January 16. Thus, we should plan to discuss this issue at the January Legislative Tour in Vail. Obviously, any CAST com- munity could individually decide to appropriate funding for this effort. If this is the case, you should contact John Lay directly at CSCUSA. Attachment MEMBER MUNICIPALITIES: Aspen • Avon • Breckenridge • Crested Butte • Dillon • Durango • Frisco • Glenwood Springs Granby • Leadville • Mt. Crested Butte • Silverthorne • Steamboat Springs • Telluride • Vail • Winter Park v Colorado ski country USA® Hans Geier, Chairman CSCUSA Board of Trustees Steamboat Ski Corporation 2305 Mt. Werner Circle Steamboat Springs, CO 80487 ___~ one civic center plaza 1560 Broadway, suite 1440 denver, Colorado 80202 (303) 837-0793 0 December 16, 1988 Stephen C. West, Mayor Town of Breckenridge Box 168 Breckenridge, CO 80424 Dear Steve: ~~~L~~~~~~~ ( I ~ DEC ( 91988 ,~ TOWtd OF B ~u REGKENR(DGE I am writing to you as President of the Colorado Association of Ski Towns (CAST). The purpose of this letter is to solicit the support of the CAST membership relative.to the pending effort to attract the 1998 or 2002 Winter Olympics to Colorado. It is our current objective to raise $500,0.00 by 2/1/89 to insure the best possible bid being prepared for review by the U.S.O.C. on 5/1/89. The majority of this money will come from Denver and Colorado Springs sources (all private) but I believe that Colorado Ski Country USA (CSCUSA) and the residents & leadership of Colorado ski towns should plan to raise at least $100,000. The Executive Committee of CSCUSA is currently contemplating a $50,000 donation ,and I .would encourage you to devise with your fellow town executives a means by which you.can.raise at least $20,000- $25,000 from your individual cities. I thank you in advance for your support. Sincerely, ~- ._ ~ _ Jo r. I. Lay President cc: Ron Phillips, Manager Town of Vail 75 S. Frontage Road Vail, CO 81657 ~, D TOo Town Council FROMe Community Development Department DATE: January 10, 1089 SUBJECTe Revocable right-of-way permit request at 165 Forest Road Applicants Charles Biederman On September 7, 1988, Ron Byrne and Charles Biederman received approval from the Design Review Board to remodel and add a garage to the west half of the duplex located on Lot 26, Block 7, Vail Village 1st Filing. The slope of the lot under the proposed garage structure is in excess of 30~, therefore the applicant was able to utilize Section 18.69.050 of the Vail Municipal Code which waives the required front setback for garages. The design that was approved by the Design Review Board showed the southeast corner of the garage right on the front property line. The subsequent building permit was issued with the condition that the applicant ensure that the construction of the garage remain on his own property and did not encroach onto the road right-of-way. As the contractor requested a framing inspection for the garage, the required improvement location survey was submitted to the staff. At this time it was discovered that the garage as built did indeed encroach approximately 6 feet over the applicant's property line and onto Town of Vail road right-of-way. Due to the steep slopes of much of the development sites in the community, it is not uncommon for portions of stairways or retaining walls to be constructed in the road right-of-way. The Town of Vail handles these requests through a revocable right- of-way agreement which enables an applicant to place structures within the right-of-way with the condition that the Town is held harmless from liability and that if that right-of-way ever becomes necessary for another Town of Vail use, the applicant will remove the improvements at his own expense. This permit must be approved by the Town Manager, the director of Public Works and the director of Community Development. Although we have not commonly used this form of approval for enclosed structures, the Town Attorney does feel that this agreement would be the proper way to indemnify the Town and to approve the improvements if the Town Council so desires. Although it is uncommon for this type of request to come to the Town Council, we felt that because of the magnitude of the request, it was important to be reviewed by the Town Council. The Public Works Department has existing situation and because which lies between the pavement Public Works Department has no with the garage placements reviewed the request and the of the existing retaining wall and the garage addition, the significant operational problems The Community Development Department has no specific recommendation on this issue at this times Council's decision is to approve or deny the revocable right-of-way permits Another option available to the Town Council would be to request removal of the improvements from Town of Vail propertye Planning and Environmental Commission January 9, 1988 2:00 Site Visits 3:00 PM Public Hearing 1. Approval of minutes of 12/12/88. 2 2. A request for a side setback variance in order to construct additions to a residence on Lot 3, Bighorn Estates. Applicant: Harriet and Robert McCue 3. A request for variances to Chapter 18.52 regarding off-site parking and allowing the leasing of parking at the Sunbird Lodge. Applicant: Vail Associates, Inc. 1 4. A request for a minor amendment to Special Development District 15, Bishop Park to extend a deck. Applicant: Frank Krasovec 5. Appointment of member to DRB. Planning and Environmental Commission January 9, 1988 2x00 Site Visits 3:00 PM Public Hearing 1. Approval of minutes of 12/12/88. 2 2. A request for a side setback variance in order to construct additions to a residence on Lot 3, Bighorn Estates. Applicants Harriet and Robert McCue 3. A request for variances to Chapter 18.52 regarding off-site parking and allowing the leasing of parking at the Sunbird Lodge. Applicants Vail Associates, Inc. 1 4. A request for a minor amendment to Special Development District 15, Bishop Park to extend a deck. Applicant: Frank Krasovec 5. Appointment of member to DRB. ~~ DESIGN REVIEW BOARD AGENDA JANUARY 4, 1989 3:00 P.M. SITE VISITS 2:30 P.M. 1 1. International Parking Roof (Final) 0 Motion-Gwathmey Second-Sante VOTE 3-0 Consent approval. 2 2. Designer Furs Sign. (Final) Casino Building, Vail Village Motion-Gwathmey Second-Sante VOTE 3-0 3 3. 352 East Restaurant Signage & Canopy Vail Athletic Club (Final) TABLED Until January 18th Meeting MEMBERS PRESENT: MEMBERS ABSENT: Kathy Warren Dan Leary Ned Gwathmey Roy Sante Did not find anyone to fill in for Bryan Hobbs. STAFF APPROVALS: NONE ~~~ ~~I I/ ~I IJA1`i~~ ~ I'~T ~ JA N 0 4 f98g `'illage 111n Plaza Condominiums January 2, 1989 To: Vail Town Council 75 So. Frontage Road W. Vail, CO. 81657 From: Josef Staufer Since I will be out of town on the date of your upcoming meeting on January 17th, I would like to take this opportunity to add my voice in support of the proposed hospital expansion. To all the reasons outlined in Mr. Brittan's memo of December 23rd, I would like to add that, as of late, voices have been raised expressing concerns about the competition from Dr. Steadman and his group effecting the present medical doctors of the Vail Valley. I would like to point out that I believe we have a fine orthopedic staff which accommodates the needs of this area. Dr. Steadman, on the other hand, has his own following nationwide, and I would find it difficult to believe that he would take patients away from the local orthopedic group. Dr. Steadman's famous patients from all over the country would not come to Vail to see any other doctors. If we are serious about encouraging non- polluting forms of economic development which provides year-round jobs, it is time to stop lip service and take positive action. This is one proposal that would not only make Vail the orthopedic center of the country, but would also provide much needed year-round employment. Sincere] JS s, 100 East Meadow Drive Vail, Colorado 81657 (303) 476-5622 ,\ . ~~ RECD DEC 2 8 19$8 ~~ ~~ ~ m ~ ~ ~a~p Po Oe ~$ox 3~2 ~ Vai 1, -CC1o 81658 ' - ( 303 ) 4?b-1965" December 23, 1988 Ron Phillips, Town Manager Vail Town Council Members Town of Vail 75 So Frontage Rda Vail, Cn 8ib57 Ladies and Gentelman, I am writing concerning the disabled parF;ing sitt.tation within the Town, especially the Post,C~fficee Y commend the' Town for taking such prompt action in installing parking and access when the lack ofi it was brought to your attention, but • now there is another problem, the continual9 flagrant violation of the parking~spaceso Since weeks before season started to present, I have been able to park in tt~e disabled space at the Post Dffiice vncea 4n December 20, Y988, I stood outside the Post C~fifice for about 20 minites watching the disabled parF;ing space, in that time as one vehicle would pull out another would pull in, and none with disabled plates, it was tieing treated as any other - space in the lots When I would question these people they - would invairably respond I was just running in for a momenta" These people do not seers to understand (nor care) that 'for rroost disabled people, if you can't find a disabled space, you don't-just go park somewhere else, you go home! Although the police have been very good about going out there when ever I complain, I understand that they cannot have an officer out there 8 hottrs a days Therefore my suggestion is that we follow the lead of trrany other cities, (Tampa, F1a4,~ Las Vegas, Nevo, Colorado Springs, etce) and ammend the disabled parking ordinance to provide for a ~1OOA00 fine fior a first violation, and ~ "~250e00 fine, a_.. required court appearance, and community service aiding the disabled-for subsequent~ofifiences, since these people seem to need to have their awareness of the- disabled heightened, I would further suggest that all disabled spaces be posted with signs that read "~1O0p00-~'SOv00 fine and court appearance. for voilations9 tow away zone"a - Town ofi Vai 1 -1:~/'~3/8B Page -'~- That all fines collected tram these violators be put into a special fiend to further equal opportunity fiar-tfie disabled in our -community. In light ofi the current feeling in our community on~most forms of revenue generating increases; I can hardly belive that anyone would object, unless, of course, they are some ofi the vioiators~ themselves-: We might even concider fallowing Tampa's lead and deputise some disabled persons from the comm~mity, and give - tfiem t i cE,et pads and the authority to write t i cE:ets for these type° o~t violations. I might add these methods" have -been- very effictive in tfie 'other areas -that they have -been implemented. I would also like to inquire~as to the status ofi req~ciring ail owners of private lots to put in disabled parEring. Your prompt=~attemtion to_this matter is greatley appreciated. . G town o uaa 75 sou4h 4ron4age roac9 veil, Colorado 81657 (303)476-7000 office of 4he 4ovdn manager Mr. Pepi Gramshammer Gasthof Gramshammer, Inc. 231 East Gore Creek Drive Vail, Colorado 81657 Dear Pepi: TM ~IAII,1989 January 3, 1989 Congratulations on the well deserved recognition you have received over the past few weeks both from the Vail Valley Foundation at the Crystal Ball and from the Herb Wirtheim Foundation at the Cook Shack Breakfast. You have worked extremely hard to bring the World Championships to Vail and have been a significant influence in the entire process from wooing the FIS to your continued input with the Advisory Committee and Organizing Committee. I am very proud of your accomplishments and the significant contributions you have made to this community. In response to your letter in late November and conversations we have had since that time, the Public Works Department began using a 3/8 inch granite chip in early December to provide traction in the Vail Village Core and Lionshead Mall areas instead of volcanic cinders. This granite material is similar in nature to the limestone sanding material used in Europe. We are trying this granite material on an experimental basis and will meet with merchants and shop owners in both areas to gain their feedback toward the end of the season. I am enclosing a copy of a memorandum from Stan Berryman to me which outlines the cost factors and other issues in comparing both sanding materials. The granite chips certainly provide a more aesthetic product but create some additional cost and labor factors for us as you can see. I appreciate your comments to me that the granite chips are more acceptable and we hope that this experiment goes well. Mr. Pepi Gramshammer January 3, 1989 Page 2 I have also spoken with Ken Hughey about the Checkpoint Charlie issues which you brought up and hope that there has been significant improvement over the holidays. I am very pleased with the tremendous amount of business generated in the community over the holidays and know you are as well. I wish you and Sheika a very happy and prosperous New Year. Since , Rondall V. Phillips Town Manager RUP/bsc cc: Vail Town Council Stan Berryman Ken Hughey Q I tawo u 75 soutf, frontage road VAII.1989 bail, Colorado 81657 (303)76-7000 depar4m®n4 of public w+orics/4ransports4ion MEMORANDUM TO: RON PHILLIPS FROM: STAN BERRYMAN /'" - RE: PEPI GRAMSHAMMER'S SNOW REMOVAL AND SANDING ISSUES DATE: DECEMBER 13, 1988 This memo is to bring you up to date regarding our Department's actions pertaining to Pepi's snow removal concerns: Volcanic Cinders - We are now using a 3/8" granite chip to provide traction in the Vail Village Core and LionsHead Mall areas instead of volcanic cinders. This granite material is similar in nature to the limestone sanding material used. in Europe. We are trying this granite material on an experimental basis and will meet with merchants and shop owners to gain their feedback. Comparison of Sanding Materials Volcanic Cinders: 1. Cost - $6.00/Ton 2. Provides the best traction for vehicles of any material we have tried. 3. Covered storage is currently available for this material. 4. Material is extremely light weight and is easily handled and loaded in all our sanding equipment (Unimogs and dump trucks). 3/8" Granite Chips: 1. Cost - $7.80/Ton. 2. Will not provide best traction in all conditions. A mere 1/2" of snowfall will cover the chip. P V MEMORANDUM TO RON PHILLIPS REGARDING SNOW REMOVAL AND SANDING ISSUES DECEMBER 13, 1988 PAGE 2 3. Covered storage is not currently available for another sanding material. We are using a tarp to cover our supply for the experimental test period. If the material proves successful, an additional covered storage facility will need to be constructed at the Town Shops (Cost - $20,000 - $25,000). 4. Material is three times the weight of volcanic cinders. Only our dump trucks and hand sanding operations could utilize this material. our Unimogs would be overloaded. 5. Increased Town liability from claim is this sharper, heavier material will be more likely to chip paint and damage vehicles. 6. Heavier weight of material will cause our mechanical sanding equipment to wear out faster. Snow low O erations before 6:00 A.M. - We will adjust our plowing operations to refrain from entering the central Village Core before 6:00 A.M, unless we are experiencing a very heavy snowfall. This change of procedure will have one major drawback. snow will accumulate in greater depths on the streets and in the Children's Fountain area. When pack is cut, there will be severe elevation differences created with private driveways and private pedestrian areas. SB/njm cc: Pete Burnett on o uai 75 south tron4age road veil, Colorado 81657 (303) 47ti-7000 o4tice of 4he town manager TM MAIL 199 January 3, 1989 Mr. Oale McCall P. 0. Box 936 Vail, Colorado 81658 Dear Dale: The Town Public Works Department replaced the flags at the Alpine Standard station before Christmas and has talked to Cuny Sterkel about the possibility of putting in a spotlight to illuminate the American flag at night. We trust that will be able to be accomplished soon. Thank you for your continued interest in this issue. happy and prosperous New Year. Si.ncer y Rondall V. Phillips Town Manager RVP/bsc We wish you a very cc: Vail Town Council Stan Berryman Town Council PEC DRB VMRD TOV Departments FYI - Saturday, January 7, is the Grand Opening of the Children's Center at Gold Peak. The agenda is as follows: 9:15 a.m. - Entertainment and singers 11:00 a.m. - Official ribbon cutting ceremony 11:15 a.m. - Informal tours of the Children's Center; Children's Mountain Adventures on Gold Peak with Sport Goofy and Western Characters 1:00 p.m. - Tours of Gichy Goomy Gulch in LionsHead If you have any questions, please call Betsy Farney at Vail Associates. /bsc ~G~ VACATION AND ABANDONMENT OF EXISTING EASEMENT THIS INSTRUMENT is made this~~ ~ day of Mayp 19870 by and between MICHAEL Eo TENNENBAUM and SUZANNE So TENNENBAUMo (hereinafter collectively referred to as "Owner")P and HOLY CROSS ELECTRIC ASSOCIATIONp MOUNTAIN STATES TELEPHONE AND TELEGRAPH COMPANYp d/b/a MOUNTAIN BELLo PUBLIC SERVICE COMPANY OF COLORADO (for itself and as assignee of, or successor in interest to GAS FACILITIESo INC)p the UPPER EAGLE VALLEY WATER AND SANITATION DISTRICT, HERITAGE CABLEVISION~ (hereinafter collectively "Easement Users")o and the TOWN OF VAILp a municipal corporationo WHEREAS, a certain easement of record to be abandoned described ase The 20°-0" utility easement across Parcel B, a resubdivision of Lots 14 ~ 170 Block 7, Vail Village First Filing, Town of Vail, Eagle Countyp Colorado; according to the map thereof recorded in the office of the County Colorado Clerk and Recorder allowing Easement Users the use of such easement for the constructions maintenance and reconstruction of sewageo watero television, qas, electric and telephone transmission facilities and maintenance of natural drainage wayso (hereinafter the "Utility and Drainage Easement"); , WHEREAS, the Utility and Drainage Easement shall be relocated to a new designated Utility and Drainage Easement; and, WHEREAS, no natural defined drainage way is evident on the property; and, WHEREAS, Owner has rerouted drainage onto other existing Utility and Drainage Easements on property; and, WHEREASo a portion of Owner°s proposed building expansion to be located on the property is in conflict with the original platted easement; and, WHEREASo the Owner realized no beneficial use in allowing such easement to remain; NOW THEREFORE, in consideration of the mutual promises contained herein and the mutual benefits to be derived and other good and valuable consideration, the parties heretoa herebyo covenant and agree as follows: to Easement Users and the Town of Vail on behalf of themselves, their successors and assignso by this instrument hereby forever abandono vacate, release and terminate that portion of the Utility and Drainage Easement as now described ase ~/ The 20'-0" utility easement across Parcel B, a resubdivision of Lots 14, & 17, Block 7, Vail Village First Filing, Town of Vail, Eagle County, Colorado; according to the map thereof recorded in the office of the County Colorado Clerk and Recorder. Easement Users hereby convey all their right, title and interest in and to that portion of the Utility Easement vacated above, to the Owner. 2. This Vacation and Abandonment shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto. STATE OF ~ii4-i~C©~'N~s ) SS. COUNTY OF iL2S ~%'~c~2ES ) By: MI AEL E. TENNENBAUM `~ By: ~- ""~ 1 SUZANNE S. TENNENBAUM The foregoing Vacation and Abandonment for Existing Easement was acknowledged before me this~n~ day of May, 1987 by Michael E. Tennenbaum and Suzanne S. Tennenbaum as the said property owners. Witness my hand and official seal. My commission expires on: •.~ „t~ , OFFICIAL SEAL ' VA!.~ER!E A AAC FADDEN ~? m NOTARY PUBLIC -CALIFORNIA ' lCS "-."rlgFl~S'COUNTY } F°°"~"• ~Ay c~.-~:T. e-n!-es MAY 28, 1°38 ~, ~~-,--1 Cc.L~c~'u.~ Notary Public S ~ ~ . . .,- EASEMENT AGREEMEPTT THIS EASEAIEDTT AGREEt~1ENT is` made this ~~ day of o 19880 by and between MICHAEL Ea TENNEi~BAUt~1 and SUZANNE TENPIEt•IBAUI~Io (hereinafter collectively referred to as "Grantors") , and HOLY CROSS ELECTRIC ASSOCIATIONo P4OUNTAIr1 STATES TELEPHONE AND TELEGRAPH COPIPANYp d/b/a AAOUNTAIN BELL, PUBLIC SERVICE COMPANY OF COLORADO (for itself and as assignee of, or successor in interest to GAS FACILITIES, INC), the UPPER EAGLE VALLEY WATER AND SANITATION DISTRICT, HERITAGE CABLEVISION~ (hereinafter collectively "Grantees"), and the TOVJAT OF VAIL, a municipal corporationo PJITPIESSETH e FOR AND IN COPISIDERATIOPI of the sum of One Dollar and other good and valuable consideration paid to Grantors by Granteeso the receipt of which is hereby acknowledgedo Grantors hereby sell, convey, and grant unto Grantees an easement and right-of-way overo acrossa through, and under the following described lands situate in Eagle Countyp Colorado, for the uses and purposes and upon the terms hereinafter set forths .The Easterly 20 feet of Parcel A® a Resubdivision of Lots 14 & 170 Block 7p Vail Village First Filing® Town of Vail, Eagle Countyp Colorado; according to the map thereof recorded in Eook 457 at Page 872 in the office of the Eagle County, Colorado Clerk and Recorder, .This easement and right-of-way is for the purposes of granting Grantees the use of such easement for the constructiono maintenance and reconstruction of sewage, water® televisiono gasa electric and telephone transmission facilities and maintenance of natural drainage wayso Grantors grant to Grantees the right to enter upon the above described lands for the purpose of installationo repairp replace- mentp removal, or otherwiseo Grantees shall restore the subject lands to original conditions and shall repair any da~~;aye to adjoining land or structures as a result of said constructions maintenance or removal, except for replacement of trees or shrubs, if the removal of such is necessary for construction, maintenance, or removalo Grantees hereby agree to hold and save Grantors harmless from any and all damage arising from Grantees° use of the righto easement, and right-of-way herein granted and agree to pay any damages or damage which may arise to the property, premisesp or rights of the Grantors through Grantees' use, occupation and possession of the rights herein granted. The provisions hereof shall inure to the benefit of and bind the successors and assigns of the respective parties hereto. Grantors, for themselves, their heirs, executors and administrators, do covenant, grant, bargain and agree to and with the Grantees and their assigns, that they have good right, full power and lawful authority to grant the easement in manner and form as aforesaid. IN G°?ITNESS F1HEP.EOF, the parties have executed this agreement on the day and year first above written. By: MICHAEL E. TENNENBAUM By: - SUZANNE S. TENNENBAUM STATE OF ~'L / ~"O~ ~' ~" ) SS. COUNTY OF>i,os ~G~~2-~-5 ) The foregoing Easement Agreement was acknowledged before me this ~°na day of G~~~2~~a~ey , 1988 by Michael E. Tennenbaum and Suzanne S. Tennenbaum as the said property owners. T+•Titness my hand and official seal. My commission expires on: E,'--°~ OFFICIAL SEAL ~' ~~P2i:4 ~r`.. ~. VAI!ERIE A MC FADDEN ' ' ~~~- ^ NOTARY PUBLIC -CALIFORNIA ,.~ ~ ~ r~i'> L(rS ANGFLFS'CO'.JNTY ,~ ', ^"~"' ~:';~ ccmm. expires MAY 28, 1988 , \-, .~, Notary Public } M E AY G R A N D U M TO: Ron Phillips, o n Manager FROM: Ken Hughey, f of Police DATE: January 3, 1 SUBJECT: Holiday Season Update I felt it appropriate to provide you with an update in the following areas as it relates to peak season operations. New Year's Eve This New Year's Eve was more controlled than we had anticipated, especially in light of the planned television coverage by NBC. The overall mood of the crowd was less violence prone and more "fun" oriented than in the past several years. I would hope that our "firm but fair" enforcement philosophy has made its point to those that have been here in past years, and that our pre-event publicity and "no alcohol" signage reaches those who are participating for the first time. We estimate the crowd numbers to be near 3,000 - down from the 4,500-5,000 in the last 2 years. Also, we took enforcement action against 46 people in '88-'89 v. 75 in '87-'88. Of those, 19 were taken in for alcohol related protective custody and the remainder were. charged mostly with disorderly conduct and assault. Overall, we were pleased with the evening and feel that it was a success. Parking It seems apparent that the marketing of Vail is going well, as witnessed by skier numbers and parked cars over the last week. Our "parking plan" of filling the Village TRC, Lionshead TRC, and Ford Park prior to using the Frontage Road seems to be working well, especially with the increased emphasis by the bus department to pick up those forced to park at Ford Park. Although we will not know until later, we will probably be facing an even larger crunch in March - as it is usually more car oriented than the Christmas/New Year's season. If this a trend is true, it only focuses on the need for the Village TRC addition, especially in that the State Highway Department is getting stronger in its not wanting Frontage Road parking. Traffic Control Program We have not yet filled all available Community Service Officer positions and had to go short handed through this holiday period. However, with a large commitment of personnel from Public Works, CSO's on overtime, and good weather, we were able to get people in and out of Vail. We experienced new demands at previously non-problem areas; i.e. Gold Peak, the top of Blue Cow Chute, the exits from the Village and Lionshead TRC's, the top of the Village Center Chute, and the top of East Lionshead Circle at the Frontage Road. These traffic control points were manned in addition to the "old standbys", such as the Main Vail I-70 exit ramps, the 4-way stop, the East Lionshead Circle bus stop, and the intersection of Vail Road and Meadow Drive. As can be seen, to keep the system flawing required an unprecedented manpower commitment - 32 people at one time. Once again, this could not have been done without the help of Public Works personnel - including "Junior Officer H. P. Burnett". As it relates specifically to our new and improved I-70/4-way traffic control, I feel that it is going as well as can be expected. This is especially true given the volume of traffic flowing through these intersections. Although this is not a perfect solution to the situation, we are providing a reasonable plan to ease the congestion. As an example, several Town of Vail employees have accessed I-70 via the West Vail entrance and have experienced greater delays than when using the Main Vail accesses. We have experienced several near miss accidents involving vehicles and our traffic control people, either unintentionally or on purpose. Fortunately, our people are fleet of feet. I would also like to mention a follow-up to some earlier commitments, that is the 4-way has been our priority even with a bare bones staff. This has resulted in less emphasis on the bus routes and loading zones, causing some backups and problems. Until we are up to full staff this will continue to varying degrees and we appreciate the continued understanding of delivery people and the bus department. We may be up to staff by this weekend and should have our new people trained and ready to go prior to the Championships. 1 d t lawn 75 south Frontage road nail, Colorado 81657 (303)476-7000 TM ~~ ~t''Y ,Y,n- _ 1 ~?- 1x'.. f' VAII.19~9 d®partm®n4 oP public wrorizs/4ransporta4ion MEMORANDUM TO: VAIL TOWN COUNCIL RON PHILLIPS FROM: STAN BERRYMAN~~ DATE: JANUARY 3, 1989 RE: CHRISTMAS - NEW YEAR'S WEEK COMPARISON 1987-88 SUMMARY OF COMPARISONS December 24 - December 31 1987-88 o Bus Ridership up 70 o Parking Structure Transactions Up 11% Village Transactions Up 2.5% LionsHead Transactions Up 220 o Village Structure Filled 7 Times 1988 6 Times 1987 o LionsHead Structure Filled 4 Times 1988 0 Times 1987 o Parking Structure Revenues Up 34% o Ford Park Parking Lot Filled 4 Times 1988 0 Times 1987 o Thursday, December 29, 1988 Without the additional parking lot (snow dump) that was constructed last summer, there would have been approximately 500 cars parked on the Frontage Roads. o The following personnel were held over to direct traffic during the period: 15 Public Works Crew 6 Parking Structure Snow Crew 6 (All) Bus Hosts SB/njm ~" TOWN OF VAIL BUS RIDERSHIP - TOTAL 1987 1988 Dec. 24 21,096 21,286 25 17,801 19,051 26 20,708 22,833 27 25,359 30,260 28 27,869 33,010 29 31,227 33,129 30 31,841 34,107 31 45,395 44,728 221,296 238,404 +7% TOWN OF VAIL PARKING STRUCTURE TRANSACTIONS 1987 VTRC LTRC 1988 VTRC LTRC FORD PARK FRONTAGE ROAD Dec. 24 2190 1073 25 1596* 1158 26 1986 1065 27 2025* 941 28 1931* 1553 29 2173* 1160 30 2508* 1795 31 2253* 1828 16,662 10,573 27,235 2120* 1359 1782 949 1818* 1302 1879* 2197 2359* 1787* 2241* 2028* 2530* 1961* 2368* 1946* 17,097 13,529 30,626 244 141 167 176 285* 212 368* 301 358* 10 300* - +11% *Structure Filled , .. r ,.a.t il~~v~ I' +1. ~ t ~ I.~j .;. .-• - r ~ .~ ~ a N l al I~i. l tit ~ i"~.\rl r f { } ti ly ,;.:a ; ' . ~, ,:_,~~.'~~ _, ®~ ~®RTI°~VVEST C®L®R/@+~ ~ , • ; .... +~ r,~'~;,j,, C ~ ~~ ,. `,,j jr,`'}~_' ~,~ ~®UIVCI~ ®F COVERNIVIENTS ' ~~,~ t,, ~~~ ~ .Pa µ ~.1~ ~ fl.ti''j I .t ``,,{~ ~~•` Post Office Box 739 Frisco, Colorado 80443 Frisco 303 668-5445 Denver Direct 303 573-7611 .~°1~.~;' ,, ,. December 21, 1988 •. II. ~. Mr . Kent ~ Rose •, ~ ~ 7 5 S . Frontage Road West , ,. , 'r ~ ~ I Vail, CO 81657 Dear Kent : ~ ~ ~ ~~ , ,, ; ;.r' ' .- .,. ~I' ':•.P~ 1. :, ~~~ •. The Northwest Colorado Council of Governments, through the ~„,;~" Department of Housing, is able to sponsor a $341,000 low and , moderate income housing rehabilitation program. However, to _ get the program going, a modest amount of participation is ~%..~".~ needed from Eagle County and its participating communities. This participation will greatly enhance our chances of full funding for the program in the summer of 1989. The amount and kind of participation requested is as follows: ' 1. Eagle County - to act as the lead agency in signing off on a program agreement between NWCCOG, and the recipient . towns'; to waive building permit fees for any units affected ' in the county, and to contribute $500 as part of a modest cash match now required by the program. 2. Towns of Red Cliff, Minturn,'Gypsum, Eagle - contribute $250-$500 each as a cash match and waiver building permit .~ fees on those units to be rehabilitated. 3. Towns of Vail and Avon - Although these two communities ~',:- ~ are income generators to the county they create a service ~ :. industry need fulfilled by those communities outside of ._ ' their jurisdiction, and are therefore asked to contribute •'~'~`, . $500 each as a cash match even though they may not directly , . benefit from the program. ~• - ~ ,. 4. NWCCOG, as the sponsoring agency, will provide in kind ' services in the form of secretarial support, salary match, and direct cash match from the Weatherization Program for those rehab units needing weatherization work also. We will be contacting each of you in the near future to schedule a public hearing for input and approval of the, ~®gl~ CounfyAvon, Basalt, Eagle, Gypsum, Miniurn, Red Cliff, Vail, ~ ~n~ Counfy:Fraser, Granby, Grand Lake, Hot Sulphur Springs, Kremmling, Winter Park, #.~ck~on Coun9~:Walden, ~ PNkin CounlyA~^; Sna,~mass Village, * Rou1t Counfy:Hayden, Gbk Creek, Steamboat Springs, Yampa, # S~rnr~nlt Counf~:Blue River, Breckenridge, Dillon, Fris~, Montezuma, Sil~rft~iorne. program. We have to have the final approval and all Application documents in to the State by January 10, 1989. Sincere , ,1 R~ hard L. Marcus xecutive Director .. ;,,: ~'~ TM ~a (own a uas 75 sou4h 4ron4age road sail, Colorado 81657 (303)476-7000 T0: RON PHILLIP S FROM: PAM BRANDMEY R DATE: 23DEC88 RE: AMPLIFICATION EQUIPMENT IN THE COUNCIL CHAMBERS VI,19~9 Regarding a statement Michael Cacioppo made before Council at the work session Tuesday, December 20, 1988, I wish to make clear the following: I keep monthly calendars dating back to April 1, 1983, when I first became Town Clerk.. Mike indicated he had presented for my perusal a 200 watt amplifier within this last year. In fact, he displayed this equipment in the Council Chambers on Tuesday, April 22, 1986, at 8:30 A.M., two-and-a-half years ago. At that time, this issue was not critical to the Council and no further action was taken. Additionally, following this week's work session, I told Mike he had given no list of. sales representatives to me and asked to whom he might have given such a list. He answered he did not know and did not remember. Thank you. CITY MFlNRGER KITH CITY CHHRRf,TERISTICS ]9es RCIURL 1989 PLUS MUNICIF'RLiTY -----'----'---'---- SFLARY --- SRLRRY FICR RSPEN -------- 6E.e8 ---------- 6500 ----2U BREIXENRIOGE 5417 5530 28 STEWIBORT SPRINGS 4583 4904 28 SRNTE FE N. M. 5416 5619 28 STOIE VT. 2792 UNOECIOEU 2L SOUTH LRKE TRIJOE 5551 UNOECIOEO i CITY ;HRRf: qF TOTRL 80 CURRENT OV. 89 OTHEP. INS. SLR'! PLUS RTRMIJT PREMIUM BENEFITS WJNURL RUTO 325 267 7542 90504 250 391 279 6531 70373 4D0 294 316 5796 69555 150 514 lla 6529 70350 NONE l26 253 3386 40628 200 SBti Sal 6278 75331 450 URIL SE~66 UNOECIOEO 0 997 322 6985 83823 RUTO-255 RSST.C.M. YES" OOIIELES Ri A OEF~RRTMENT HERO RSPEN CM 89 SRLRP.`( HILL BE LONER:f780ft0. HILL NOT SERVE RS THE COUNTY ROMINISTRRTOR IN 1909. 01/03/69 MIkJICIPRL ;ERVICES HINTER , TOTRL Et8 TOTFlI. b8 TUTRI Ei8 CN SERSUNRL YERP. ROUNO PERT: SERMON , HOFIUS CITY E410GET GENEF'RL FUND C11 BUOC~ET FE~SOP4JCL RSST.CM F'TE EMPLCPrEES POPULRTION POPULRTUIN ; , RUNE 15198000 Ea51000 25300D 3.5 FTE YES 't l18 75 4623 15547: !X IX I ;X ;% ;X ;X ;% ; ;X IX ;X ; ;X . NONE ' 12146007 a77EA00 236240 3.5 FTE YES ~ 66 7 2500 200]0 ; ;X ;% ; ;X ; ;X ;x ;% ;% ; ;X ;X IX ; ;X ; ; NCME 17361470 101'40000 BU40D 2 FTE NO , 85 30 6600 200]0 ;X ; ;X ; ;% ;X ;X ;X IX ;X IX : ;X ;X ; NCmE 57f+94667 23972000 1163764 4 FTE NO 640 l8 60000 1500)0 1X ;X ; ;% ; ;x fX tx 'X ;X tX ;X ;% ;X ;% ;% NUKE 2570000 1787000 SD000 2 FTE NO 30 4 3500 15010 ; IX ;X I% ; ;X ; IX IX IX ;X :% ;% ; ;% ; NCME 16070000 13350000 301]000 4 FTE YES 225 l00 23000 150000 ;X ; IX ;X ; IX IX ;X ; IX ;X .X ; NUNE 18767000 10531000 12l[NB l.5 fTE YESK 164 117 a200 250]0 .X ; ;X ; ;X ;X ;x .X ;X ; ;X ;X ;X ; ~C~C'D JAN b ~ i~ I/1/omen's f~esourcQ Center l/l/f~C of Eagle Counr~ Lower Level, Vail Library PO HONORARY BOARD Lt. Gov. Nancy Dick Dr. Jack Eck Betty Ford Renie Gorsuch Sheika Gramshammer Mrs. Cortlandf Hill David Kanally Dottie Lamm Richard Lamm Gail Wahrlich-Lowenthal Darlene Deer Truchses .Box 3414 Vail, Colorado 81658 303/476-7384 2 .January 1989 Dear Town Council Members: Enclosed, please find a copy of a flyer that we are distributing around the community in hopes of finding a new office space for the Women's Resource Center. I thought you might be asked about this., and felt that you should have the flyer in hand. We are reaching as many people as_possible with our plea, and wish to thank you for your continuing support of our_ efforts. Should you be able to offer- any suggestions/help, please call me as soon as possible, as time is of the essence. Our space needs ar.e minimal and basic. We dream o.f. an actual "communi.ty resource center", but would be thrilled to have a small space with room .for filing cabinets, a desk, and basic o.f.fice machines. Reasonable heat- and light, electr.i.city, and access to plumbing and parking are about all that we require. 'T}~ank you, again, for your. help in this difficult situation. Sincerely yours, Cheryl L. Pallet (Cherie) Director cc: V.M.R.. D. Board Vail Town Government /c] p 29 DECEMBER 1988 WOMEN'S RESOURCE CENTER ~~ T -THE WOMEN'S RESOURCE CENTER OF EAGLE COUNTY, 9~0/ ANON-PROFIT SERVING OVER 500 COUNTY RESIDENTS ANNUALLY. ANEW BUSINESS OFFICE SPACE, AVAILABLE LONG-TERM. WE ARE SEEKING A TAX DEDUCTIBLE CONTRLBUTION, OR A SUBSIDIZED RENTAL AGREEMENT. . AS SOON AS POSSIBLE ! WE LOSE OUR PRESENT OFFICE SPACE ON e FEBRUAKY 1st, 1989. ~~~ ~ CENTER, BUTIWE WILL CONSIDER ANY LOCATION'IN EAGLE N COUNTY. ~~ T~~~ OUR PRESENT OFFICE SPACE, TRADITIONALLY DONATED BY THE ~/~ TOWN OF VAIL, HAS BEEN TRANSFERRED TO THE VMRD ALONG WI"I'li T1IE CONTROL OF TI-IE RECREATION DEPARTMENT. TEIE SPACE IS NO LONGER AVAILABLE TO US. HOW YOU CAN HELP: 1F YOU KNOW OF ANY SUITABLE OFFICE SPACE THAT MIGI-IT BE AVAILABLE TO OUR AGENCY, PLEASE CALL US . ALL WE NEED IS:BASIC SPACE. PLEASE CALL CIIERIE AT 47G-7384 IF YOU CAN HELP 1N ANY WAY. THANK YOU ! a ~-- !- ~EEC'C DEG 2 9 199 EAGLE COUNTY TV TRANSLATOR COMMITTEE MEETING NOTICE THURSDAY, JAfdUARY 12, 1989 12:00 NOON AVON TOWN COUNCIL CHANGERS AGENDA 1. Review Proposed Budget For Formation Of Special District 2. Report On Fund Raising Activities 3. Review Proposal For Legal Services (Dee Wisor Of Sherman & Howard) 4. Review Proposal For Financial Planning Services (Stanley Bernstein) 5. Review Propose District a. Boundaries J b. Initial Service Areas and Service Level c. Developed Service Level 6. Other Business I t; a . REC'~ DEG 2 9 1988 MINUTES EAGLE COUNTY TV TRANSLATOR SYSTEM COMMITTEE MEETING - December 15, 1988 COMMITTEE MEMBERS PRESENT: Jerry Davis, Glen Ewing, Mike Metcalf, Bill Sweeney, John Martinez, Mike Cacioppo, PUBLIC PRESENT: Bill James, Avon Town Manager; Norm Wood, Tnwn of Avon Director of Engineering; Cal Thomas, Peter Kostes, Eagle Valley Enterprise; Valerie Smith, Vail Daily; Roger Wilkenson and Sally Corcoran of the Westin Hotel; Mike Robinson of the Marriott Hotel; Lynn Wiess of Christie Lodge; Sylvia Blount of VRA The meeting was called to order at 12:10 PM. Norm Wood reported that he had met with the County Commissioners, requesting their support, based on the engineering report. He stated that the County Commissioners had replied that they did not want to be involved in any way. He stated that the Commissioners had also instructed Susan Vaughn to resign from the TV Committee. Mr. Wood stated that the. report had also been presented to the Vail Council, with the request for a $2,500.00 commitment. The Town of Vail did not want to make any commitment towards the formation of a special district for a TV Translator System. Mr. Wood stated that Jerry Davis had been contacting the - lodging community regarding possible funding. Mr. Davis stated that Mike Robinson of the Marriott was present and Roger Wi1kenson and Sally Corcoran of the Westin was also present. Mr. Wood stated that the Avon Town Council, at their last meeting, made a substantial commitment for matching funds of what is raised. Glen Ewing stated that the Town of Eagle had committed $500.00 for the formation of the special district. Mike Cacioppo stated that he had contacted Jack Rush of Manor Vail who had indicated some support, but no dollar amount had been mentioned. He stated that he had also contacted the Sonnenalp and they had indicated that they would like to hear more and would try to attend this meeting. Mr. Cacioppo also •) f ~ ., 'Y Eagle County TV Translator System Committee Meeting Minutes December 15, 1988 Page 2 stated that the Vail Town Council indicated that if a district was drawn up, and if it passed, that Vail would principally be paying the bill for the rest of the country since approximately 80~ of the tax dollars would come out of the Vail area. Another concern was that East vail and West Vail would not get a quality signal until ;~~ore monies were added. They felt they could spend less dollars providing the Vail citizens with a signal if they did it themselves, than if they did it with the rest of the other entities. He s~~ggested that the Committee try .to find funding elsewhere a;~d proceed to let the voters decide if this is what they want. Discussion followed on the original idea of providing another option to cable to a larger group of citizens. Jerry Davis reiterated that the Town of Avon has decided to provide matching funds, up to approximately one half or $12,500.00 of the funds necessary to go through the process of taking this to a vote to form a special district. He stated the issue is who can come up with the other $12,5GO.iiG needed. For the people from the lodging community, h~ reviewed what has been done up to this point, regarding tr;e feasibility study,' and what is needed to form a special district. John Martinez stated that the people of Redcliff were to meet on Monday to decide if they would want to be included in the district. Discussion followed on possible inclusions in the district and the number of translators that might be needed, and the need to find out if the citizens of various areas want to be included. Mike Robinson of the Marriott stated that they are interested in possibly supporting the special district as a means of saving a considerable amount of money. He asked where the amount of $25,000.00 would go in forming the special district. The matter of attorney's fees, accounting fees, and advertising costs was then discussed. Mr. Robinson asked to see the proposed budget a little more fine tuned before he makes a monetary commitment. Roger Wilkenson of the Westin stated that their interests and concerns are similar to Mr. Robinson's. Further discussion followed on the distribution of the estimated $25,000.00 needed. The need for a service plan and financial plan was discussed. Mr. Wilkenson asked who the actual controling entity was for doing this. Bill James replied that the Committee and the Town of Avon Staff is handling getting the information together, etc. Once the special district is formed there . . • ~ v- Y Eagle County TV Translator System Committee Meeting Minutes December 15, 1988 Page 3 will be an independent board that is elected to run the translator system. Mr. Wilkenson also asked if all of Eagle County would be included. Further discussion followed on the possible areas, from East Vail to Gypsum and Redcliff and Minturn. Discussion followed on the translators that are already in place and additional ones that will probably be needed. Discussion followed on the time needed for complete implementation. The Goals Statement was then discussed. Discussion on the procedure for setting the mil levy followed. Also discussed was the time limit on the licenses. Mike Cacioppo asked if the Committee wanted him to stay on as a member of the Committee since the Town of Vail is not going to participate. Members of the Committee stated that they would like to see him remain on the Committee. Mr. Robinson stated that he understood that Heritage had exclusive rights to the Denver stations and Lynn Wiese of the Christie Lodge stated that he had had the same reprzsentation made to him. Mr. Wiess stated that ~~e is locking to tr-y to cut costs also. He stated that he is not in the position today to make a financial decision, but he is very interested. Jerry Davis stated that with the project and community was needed in are going to participat member of the lodging Committee member. the .Committee needed to move forward that a commitment from the lodging the very near future, if in fact they _. Mr. Davis also suggested that some community should be appointed as a Discussion followed on the risks of trying to form a special district, i. e. the loss of funds provided if the special district is voted down by the citizens, and the necessity of getting the other districts that have the same power of TV service to sign off their rights was discussed. Discussion on how much a half a mil would raise the taxes for a homeowner followed. Mr. Wilkenson of the Westin stated that they would probably be willing to commit approximately $2,000.00. Norm Wood suggested that a deadline date be set for commitments and it was suggested that the commitments be in the form of a letter. The second of January was suggested as a deadline and letters are to be addressed to Norm Wood. • ,.Q b Eagle County TV Translator System Committee Meeting Minutes December 15, 1988 Page 4 Bill Sweeney stated that he would approach the Minturn Town Council next Wednesday. Realistically, knowing their budges:, $500.00 is a realistic figure. John Martinez stated he should have some answer from the Town of Redcliff by the next Committee meeting. January 5, 1989 was set as the next meeting date, at noon, Avon Town Council Chambers. It was suggested that a better breakdown of the budget be prepared by the next meeting. Norm Wood stated that there are a few things that need to be covered at the January 5th meeting, they are: some definition of boundaries, discussion of service plan, some discussion on Stan Bernstein's report and have a budget set up, and sites needed. Discussion followed on the licenses in the Bond, McCoy, Derby Mesa area. It was felt that there was probably no interest to be included in the special district, as they are already pretty well covered: It was stated that they should at least be approached. The- reception in the Town of Gypsum and Dotsero was discussed. Discussion on other various sites followed in an attempt to try and determine the possible boundaries of the special district. Norm Wood stated that he would contact the Lake Creek Homeowners Association. Mike Metcalf stated that the Board of the TV Corporation would like a report on the feasibility study. He suggested that once the revised plan was completed, then it should be presented to them. Bill James stated that for the January 5th meeting there should be a report from Stan Bernstein, a packet from Sherman and Howard,and the service area should be defined, so there will be a guideline for making decisions. There should probably be a meeting at least twice a month once this starts to take shape. The meeting was adjourned at 1:45 PM Respectfully submitted, ~~Y/ Gtr ~~ ~ ° ~~ Charlette Pascuzzi - Secretary 'THF DI:NVER'POST' `T~:esday, January 3,•1989 ~, , ~• ....~ , • who is any- ~,, :, Yom, bodyin the .a ~~ ~° ,;, ~_; ~ ~ r slu world is ..~~ ~. ~ expected to ~ ,~: ` `~ ~ 'show up in ~" ~' - ,. ~~~, -'Vail Valley ' ` ~ ~ _ - `' - - ~ 'for the World t ,a- r: Alpine ski ~'- ~%>~ ~ ~ ~~ . ~ t champion i`'~}}a~~~ sVAIL r ships Jan 29 ~ , ,F$EA~~ER CREEK ahrough Feb" ~`: ~~~;~ rl9(i9\\~ORLDALPINE X12. -. ,z';i,,.;~~- The chain- ~` ;~,~ ~ -~. ;,SIC1CIiAMPIONSHI['$:i• .,~~; ~~ pionstups, ~~.~ ~~ ` ~" Jmiuary79 February l2 . t'G: ~ ^° day as W111Ch"have ' i' ~: f '" ~ ~. n ~~,". r .. .. ~' ~' "not been run, '. ~ °,on an American mountain since ` ', ' ~ ^r ~ ~; • Aspen played host 39 years ago, =~ ~ ' `~ ,~ ~ ;,,'~~. could attract more than 5,000 ski ~ ~ ~~ :,buffs, who are expected to pump -' ` ~'"~ inore~than $70 million into the :r;' , ®' ` ~ 11t1 VAIL2•'Alpit Colorado economy as they gather' to.cheer on their favorites among ~ ' ~" ~ . ~ ,, ~ ~= mountain view -'j ~ ~'' the world-class competitors from • ~~~ -~°~' e ~°':~ more than 40 countries. ; 4 :And, if'you haven't made yot } ,; ~~' ~ -reservations yet, get on the telE ' If you re planning to go and -~ ~:.. ,,.h: ..looking for lodging, better bring a , .phone today .-'~ ,i~~,~~, :fat wallet. f ~ .:, ~ ~a . ;.. ,+There are still quite a few hog Prices range from around $90 `~ '`.rooms and condominiums avail ..;'per night for the least expensive-°'~ able for the first week of.the :: • accommodations up to $750 per - .~ event, but accommodations for night for luxury quarters with ~ . j..the second week are going fast; fireplace, wet bar, Jacuzzi and said Joni Crask, director of cen• r ~~ ',~. ,,, _ , .~ ~.v~c ® ,pis t®r~ sly 13y Sandra Dtllaed Rosen v , ~ -~ c Denver Post Staff Writer ,~ c~f~" s ,~~~*~~ " y ,~e~Y ~ . ,ia'r r ; ~~~If'you're planning to attend the ~ ~~~~k ~"' ~~n ~` ~`'' ~~`~ .World Alpine ski championships •, ~ ~ • ~ , g; r " ,, ,., in Vail, the best thing to do 1s k ~h~., r' ~_ ~" `: •~heed the Boy Scout motto "Be ` •~! '•• :prepared." >~;: ~ ' ~~~ •~~'~`~' r.~~~ 1' ~~ ~; ~t »;:~ ~ : ~ ents are expected to pump $70 million into state's econ reservations for the 73-mein ', knowledged there.are int Vail Resort Association rep- ~' ` `` pe t of as much as 11 rcent inting properties in Vail ° ~ season's charges `~-~ n, and Beaver Creek...' , ' ~~ ~' ' "~• ' - +;.~ - ~•The Vail Resart•Assoc [f people are looking at coin- • ~ will help you make:resei• out for the men's downhill -- ~ •at one of .73 hotels and co ~ should make reservations ~ ums. The toll-free line:fo nediately,".she said. ~~ do is 1800-525 3875 ~~,' rask said the steep prices are F~~x ~ ;"~~~ "~' ~,'" ~~` Please see VAI mal high season rates, but ac ~' ` ` ,~4 , t. 5 y~,,~, -' {-} e a i ~ .. ~x t-:. ~ , ~ . r~ J. ',i..R'rk'k?t~'~M .1t. fi°,~r ~" ~'"~` '~+~tyjti ~~ ~ ; - .footwear, keep m mind th ~. ;~ ~ good part of your day will ;; ~ spent on foot: Remember glasses and lip protection. ,T;~p° ~~` ~ ~ FOOD: Plan ahead ti ~.~.~tThe,event startin Jan. 29 at , ~' ~ d~ ~, ~ ' ;.,:,popular ones. Most are, capable o1 s;• g `~ ~' - mm ~a ~ ~ ~ _`~ handling large crowds, liut'if they Vaii~and Beaver Creek will draw ~ r_~ .,, • ' `; r l,; ~~ ,,~ take reservations, make them competitors from more•than 40 .;'~, ~ ' ~ - ' ~ =If you're planning-to stay out. z. `countries. It's expectedao attract '` ~ ~ •~ Rr ski buffs from around the world,." a'> ~ 'doors at the events a, lon~'time,, and, just like you, they'll all be , .•.- ~ ;, - ~- pack a lunch: "On cold days; the{" looking for transportation, good ~;~~~ ~ ~ ~ ;7 ~•R .:body burns a lot of.fuel trying to S ,, , ;.. stay warm, :Lindstrom. said: places to stay, the best places to ; s ~ ~: ='.rrz ~ DRINK:.Avoid alcohol._Con= -view the races and the finest s v 4 :~ , ~~ ..places to eat '~~~'~; ~ ~~x~"' ~€. ~ ~ ~ 4 ; ~2~.; ~~ ~ w-, = : ~~trary to popular belief, brandy, `" ~-- • -- "~~ -~ ~ - ~-~~ " ~` ` • : ~ schnapps, and hot buttered rum . s,To make your visit as pleasant ~ r '. - `. don't warm o - as possible, Cheryl Lindstrom, 3'• ~~ ,:, ~ • < ~ • y u..Instead, they :• 'manager of media relations for ~ ~ `"' `""'~° thin Your blood and cool you ~''~- ' the Vail Valley Association and `:1'HII+11C F ARt The tem' erature in ,Vail can wa ~ ~ `' ~ ~`~ ®SKIS: Skiers should be : r fit' P ry greatly aware of ski theft. S• ht 'ou'r skis' .1989 World Alpine ski champion ,lout it's almost certain to be cold undertoot ~ ~ P Y ships, offers several tips,: a ,,~ ~ ••° • - ;,~ ,y ~ . up among your group, rather than .. ~, - ..,, ~ ~, A.:. R ~ v . t ~ rJ~ .,,~h c~ ' t ~ chainin them u q :° ®TRANSPORTATION: If ~ -: ~ bus service that will be expanded •y they 10 or 11 a m =•> =k ~: ~;f r ~ c r ~~u. g pin matched ~,~ you're coming from out of town ding the championships. ~ yr ~:,_®pRESS. Colorado weather t:: Pairs. ~ 33 ~f ; ~ and arrivin at Sta leton u ~. ~ -,TICKETS. Available at'Gart~, g p Airport,. ::Vail destination van companies '. °can change often and dramatical ,;,13rothers Sportscast1e,1000 ~=~ti ~ you may rent a car but Vail offi- can be found on the lower level of ' ply in the course of a da ..At this „ cials urge you to.spend $25 fora ~ ~ `~ the airport, near the rental car Y =Broadway, Denver, the Vail In '~`' :~ ~ .~ :time of year the average high is .,~n:forination Booth in Vail, the. ac provided bythe companies at the ~ '~fugid a 1WorDld Al fin skiki chlams will..",,z20 degrees; the average low >s 4 dw. tivities desk in BeaveriCreek, aiic~ P p degrees. It has been as cold as 26 ,: the lift ticket desks at Golden ;~~'~ airport. • ~ • ~ :: • .' • • ~ ~~• ships information booth between below zero, and as high as 57 , . p ~; •, "We're encouraging people as ~ the B and C concourses ~'~ n' r.,<. eak; Vail Village, LionsHead, ~• Layered clothing that can be add ,,and Beaver Creek: Prices range much as ossible to use ••~ p ground ~'~ ~ ~~,If you live in Denver, use ub x, ed or removed as necessar will ~•~ ~,~ P ~ Y 'from $20 to 30 for individual :~~ z•~. transportation," Lindstrom said.' .; lic transportation if possible If s • work best. ' "That way they're not faced with ` you're planning to drive up, allow t ~s f FIriclude good•gloves or"mittens°~package tinge from $11 and.$20 ~ 'I a parking problem when they get • plenty of driving time as well as ':' and a good hat. (Remember that ~-per event. There is stadium seat-' here." -.•-~:._ . , __,._ .......~ ~~-time to park and get into viewing. :~,~75 percent of your body heat es '~~ in for 2 750 in Vail `and;3 200 in' `? • The town has a reliable free ~_ {position. Most events start at ei •: capes through your head.) As for ~~~~~Beaver Creek. ' , ' , •~ ~ '"' ~ t:.' ~ .. - ~ •, .bytt .. .. - ~~t 4' Jib';i1'~.~1~~ . b. }J . ~Eaxly rese~va~ions .advised for Alpine ski events ~ 1. + ' ~ a ~ .NAIL from Page 1-C ~ • ;`- condominiums start at $125 a night king-size bed ~ - one-bedroom with ' " `. : • for a 700-square-foot studio: with with either a; A .two-bedroom Here are some sample double oc-•;• :'•full kitchen, fireplace, "balcony .queen-sized or -king-sized bed in cupancy accommodations . and .that looks out on the slopes," VCR, each. room, is $280. Three-bedroom prices from the .luxurious to the ` :-,,humidifier, microwave,•, and sleep- •. condos -cost $380., .All have. living economical: ;`., ing accommodations for four - a 'rooms and kitchens '. , : ~,, =: ~ ^ Westin Hotel Vail, 1300 Wes- `~ queen-size bed and a fold-out an outdoor Prices include. use of thaven Drive, 476-7111. The least ~.rcouch. ,. ~ ..: 'heated pool,, Jacuzzi,' sauna, and expensive room is $240 a night, an ~~'The average price for aone-bed- laundry facilities. ,;,;. ~ .: , `;; 11 percent increase over last sea- .room condo with two beds, living . ^ Sonnenalp, - 20 Vail Road son's $215 price. Amenities include room, and amenities, is $185 night- , .476-5656. Village view rooms are ~ a.mini-coffeemaker, 27-channel ca- : in-room movies; ~ 24- • ble television ly. - • . r~.:-.. :.:~ : - . - :. ~ •-- The $350 three-bedroom condo •- priced at .$180 ,nightly. Mountain , hour room service and concierge' :can sleep 8 to 10 people._____ ;. ~ :~~~~ ~ view; rooms -ai-e `; $200. All rooms '.: I have either two double beds or one , service: •. ~~` ~~: ~ ^ Raintree Inn, 2211 N. Frontage . kin -sized bed.. ~'•,r ` . ;~,' ;q g A lar er room with all of the e Road, West Vail, 476-3890, offers . _ + :Room :'prices include a '=full s, a mountain view; and ameniti `one bedroom with two double beds, breakfast with choices of egg and complimentary membership in the .continental breakfast; pool, Jacuz- ~ fruits,' :.:cheese, meat . dishes ~ Cascade Club,. (Nail's largesti,ath- ' ;zi, steam room and sauna, and free . , , pastries,• waffles, pancakes Sand letic club with tennis, squasH;-•and -shuttle to the lift and to the activi- racquetball courts, Nautilus equip- ~ ties for $109 nightly. i. -:;~, : r-. .7 ~ ' •]uices r ~Y, ...,.~ . F _. , , il Vill I n 100 E~ Me ~ ~ ment, free weights, and indoor sau s three-bedroom t.The facility n , age . ^ Va ad-: na) is $285 nightly, an 8 percent in- '~~°condos with all the above ameni- ow Drive, 476-5622_ .Small economy .crease over last year. : •.• ~ ties plus living room, fireplace, bal- hotel rooms with two double beds, : '. The top-of-the-line accommoda- '`cony and kitchen is $315 nightly. television and telephone can be tion is the Gerald Ford Presiden- ~ There are restaurants and a bar on had for $90 a night..Their standard tial Suite, $750 with extra-large liv- he premises. -: •: '• ~ hotel room with two double beds ing room, fireplace, glass-walled ` ^ Holiday Inn at Vail, 13 Vail rents for $150.. °: ,. ~ - -.. - ~ , • Jacuzzi, sauna "and a spectacular Road, 476-5631. Right now there four Four-bedroom condos with view of Vail Mountain." : ^ ~ are no rooms available, but the fa- • , ~ to six beds, large living room area, Lions= ^Antlers at Vail, 680 W: cility still has condos for rent. full kitchen, and in-building sauna Head Place, 476-2471. Prices- for Prices start at $180 nightly fora and Jacuzzi are $600 a night. By Rachel Flood .bumat stall wdrer With a fairly positive re- sponse from the residents of Colorado and a hope that it stands a fair chance, Colorado has jumped wholeheartedly into the Olympic bid process for the 1998 Olympics. The Denver Olympic Organ- izing 'Committee announced Dec. 1 that it would pursue an Olympic bid and Roger Ogden, chairman of the committee, said the group is currently in the process of forming commit- tees tofinalize site selections. . The site selections will pro-" bably be finalized by April, ac• cording to Ogden, and will be in no later than June 1. "The 1998 Olympics is a long shot •- we are coming in late in the process," Ogden said. "We -;;uye_.the baggage of the 1976 Olympic rejection, d---it~-- venues are spread out. But we also have some strong assets, so we can begin td position our- selves for future opportuni- ties.° He estimated that the bid process would cost between . $400,000 and $500,000, but added that some financing is Luku~sset ~,.... , ~~~/~ManaBement Group ~ Elaine Lukic Bailia, C.F.P. President already in place in in-kind con- Kathy Shaw, spokesperson tributions, for Colorado Ski Country USA Although a recent opinion ,said she didn't think anything poll of Colorado's support fora was written in stone at this bid showed only 60 percent in point. favor, Ogden said he believed "I think Colorado would like support was stronger than that -to have it (the Olympic Games) because a mere 16 percent in- spread out;' she said. dicated true opposition to the Copper Mountain has been games and of the undecided mentioned as a possible site percentage, many of them due to past experience with the leaned more toward the posi- Alpine Championships and five bid. NorAm races. Summit County has had its Kelly Davidson, marketing own Olympic Committee or- director for Copper Mountain ganizing to get in on the Den- Resort, said that at this point ver bid as an alpine site. Copper o~cials are not trying .~ Tom Lehmann, Jon Brown- , - to compete against the other son and Jim Gill have been col- ski areas because it is a crucial lecting information and dove- time fA present a united Color- loping abid plan since January ado front to the Olympic com- . of last year, mittees. The committee is working "There is a great deal of b v e t ea closely with Rich Levengood, of the point to get fore we who was just nominated to the selecting an alpine site," he ex- Denver Olympic Organizing plained. Right now, all the ski o~~;i,,:,if^t~-e--a-nd_ i~s_~.currently ~ ` ng unitedly -- are work are i ~ m~o setting up a ~umm~t 5y some a~E'as-~,.-h_Pnefit more sium to drscuss Olymprc possi- bilities. Although mention has been made of Vail and Aspen as pos- sible alpine sites due to past world competition experience, Summit County has the advan- tage of being situated closest to Denver and in the triangle be- tween Denver and Colorado Springs. But so far Denver has not committed itself to any one area. than others because of the geo graphy of the state -- but the Olympics will benefit the entire state in terms of pre- and post- travelduring the games." Representatives from Sum- mit County's three ski areas met Tuesday morning fora pre- liminary discussion to idcntilj areas at the three mountains that could be used for slalom, giant slalom, super G and downhill racing'events, accoi•cl- See OLYPAPICS onpage 2d + t ;~ ~ ~ ~ t' `tiveness and lthere won't be a ~ Continued Prom a e 2 ' F P g ~ ` "After my visit to Calgary" °! ~ ~ >: ,.team effort -- a crucial element; and the closeness of the venue ing. to Gill "W~th an :eye for .;, that is needed immediately ~ : " sites to the host city, I feel we y ¢ : ~ ~°. ~~ ~ ', '. what meets.. the~:requtrements °i are in a very.strategic location: FlS rule book,,we were, Levengood "and Ogden{' ;~. m the to Denver and Colorado- ~' , able toK~find some pr2liroinary,. traveled to Calgary this past; Springs and we are going to be'" an~`~ weekend to review the former: sites 'and~get `some~stdeas a very integral part for the ,• hand,":.he added;,~.althoiigh hes. Olympic site. , ~ " ? games, Levengood said ~. decline to scate'cvhere: Gill; said tl~ie .group .,will create a'?. pack~+ge io present to.. i,he Sumti~:it County ~Olym~pic.,. ~i ~.Committee~so~thej~ will huve~~~^~ ~~;~something in hand when they ~`~' `meet ivilh~ the Denver:organi~~;~ ;zatior~.~ Summit County has gained a;; ;another leverage point :;iris;' ,~.. `Levengood s.ap~ointrrrent-, to.'' ` 'the Denver/Colorado -Winter:! Games` Development"Commit=~'2" tee.: , Levengood said he~feels his''':. • ~ members$p'~o`n`"the''corllmttee'`''`` ~sliould~.help local efTorts~in`se-;i~. ..~~ '~ ` curing. for Summit County a ~, 'major porti6n `of the 1998~~~, .Olympic Games should Denver ~be ultimately chosen as the ~:, .host city by the International. .OlympicCommittee. ~ ° ~")~~"° "The first thing to do into se-.;'.~;F ;cure the bid," h e said. "I'm very '" ,reluctant to step out and be an `' ad for Summit County. The first step is to secure the games. ,, for Colorado and the greater . good of the state." : He added that if areas start'. worrying about particular von- ues the bid could-lose its effec- . giknsnde tine g~~vate w®rld ®f ~ie>rica9s m®st publflc entrep>leneiar ~ ~'~®~~I~LIIVGH~914~ ~ C'~IRT~S ~~RTM~N t is, to all appearances, just another .episode in the Amazin' Adventures of H. Ross Perot. Call it "David v. Goliath." ,~ This time the drama unfolds in a packed Dallas court- room. At issue is the fate of Perot Systems Corp., a four-month-old start-up with 75 employees, under at- tack by the World's Largest Industrial Corporation. That's General Motors Corp., represented in this instance by its Electronic Data Systems Corp. (EDS) subsidiary, a 48,000- employee giant in its own right, generating some $4.5 billion in sales. To hear the lawyer for Perot Systems tell it, his client is the victim of a kind of corporate child molestation. The company, heavers, is a mere "infant in its cradle." Its leaders, all former EDS employees, are simply "prepared to step out and build a better mousetrap," he says. "They're entitled to try to do that without having some big bully-and this is the biggest bully I have seen-pushing them off the street." Smiles ripple through the phalanx of more than two dozen of America's highest-priced attorneys packed before the bar. A few reporters in the throng laugh out loud. What amuses them, of course, is that the lawyer has got it backward. After all, this "infant" belongs to Ross Perot, the jug-eared man in suspenders and a belt sitting stiff- necked in the second row. As ev- eryone in the courtroom knows, ~ ~T®Rl( this legendary patriot and entre- ~, ~°$$ Perot es.on preneur-turned-populist scourge ' of GM isn't just working on a bet- i na~'y-and publicize ter mousetrap. He is threatening ~~~..our tome.`His recent to ravage EDS, a company he built r,;bter century of buildi and sold to GM for $2.5 billion. ~'` $ems-to;stdrt yet Goliath, it seems, has been f:".scratch, raises som snookered. Again. ~ unanswered questio "BIGGER THAN LIFE" IS PERHAPS THE BEST WAY TO describe Ross Perot, although "Texas billionaire" is the more common appellation. He is, at 58, America's quintessential cowboy capitalist. It is an image he has been cultivating for some 20 years now, since he first stepped into the limelight, traveling to Laos in an attempt to fly supplies to U.S. prisoners of war in North Vietnam. Then there was the thrilling rescue of two EDS employees from an Iranian prison in 1979. That episode became the subject of Ken Follett's best-seller, On Wings ojEagtes, as well as a television miniseries starring Richard Crenna as Perot. When Perot wasn't sponsoring secret missions, he was fighting for education reform in Texas. Or attempting to move the Museum of the American Indian from New York City to Dallas. Or buying the Magna Charta from the British for $1.5 million, then donating it to the National Archives. Or waging a battle against the Dallas Citizens Police Review Board. But always there, in the background, was EDS. Like most aspects of the legend, the story of Electronic Data Systems had a mythic tinge. Starting in 1962 with $1,000, Perot-it has been said-had created one of the world's great service companies, virtually inventing the systems-integra- tion industry in the process. Just how he had done this was never quite clear, certainly not in the accounts of his extracurricular ~~~§~L Q exploits. Indeed, it was only in the most extraorde- 1984, when he sold EDS to Gener- ompany'builders of al Motors, that he began to gain sion-after~a quay- widespread recognition for his ectronic Data Sys- business accomplishments, as op- her business from posed to his various adventures. At the time Perot was widely rY provocative and heralded as the savior of Detroit: And so. we decided ;the can-do entrepreneur who t D PR e of, d--c deci ng EI anot e 've ns. ~:to~use this annual featu 54 re. o examine dust - ~ ~hoev lpero# built EDS in the first placeP and INC./JANUARY 1989 ' .'why he appears hell-bent on destroying his `~ .own creation now w -the Editorx j - 4. .it ~~~ t. y „4• f. { r t rs ` ,~ - ~:_~, - ~ f` ~r ~ ~ f ~ ~ 4~• ~ ~. .. ~ t :._ ~ by I Y t ^" ' ,; fi r [y t ~' 1 '3 ~i , f ~ \i { A \; ~ F ._ ~ k~ ~ ~'M Y . t ~_ _ ~ ..F' ~ 4 ~ a{ '. .} i t . ~, ' i ..-~~. t ~M1 ~ a _ - - -. --rr-- t C --: ~ r ' ~' ~{J _ t f „ ;. ~ F ` \ rt - .. :. ~ rz x~v _ ~ V ~ i y ~''~ ~ , ~. ' ~ ;r r. ~ ~~ 7 t N v - _ ~ xT ~ ~ , r F,u .~ 4.5 rl.,.. a > ~~,~. F.x Yn. _ , 4 . ~ ~ ~~ ! . \ ~k -~ t, 3 t,~ x v.. ~` #r 1~- j Fem.. Z W '` .. ~ ~ _x .~ O 9.0 ~ ~A ~'y .. ~~ -. 'F ` `j ,;. ~.1. ~~. 4 * - ~t C -~ ~~ ^. • t. 2 } ~ s,~ ?w H. Ross Perot Going back and doing it again. Z (wJ Z INC./JANUARY 1989 55 tank `~Ut soul `®ur WaS snot fire, fire, would help get Roger Smith's stumbling behemoth in shape to compete in the twenty-first century. Instead, he became its most implacable public critic. Frustrated by the GM bureau- cracy, he accused its executives of caring more about their chauffeured limousines than building cars. By 1986 his fellow GM board members had had their fill and voted to pay Perot approximately $750 million for his remaining interest in EDS, hoping he would shut up and go away. He did neither. From the day the agreement was signed, he kept his fire on GM, while observing the clause that forbade him to hire away EDS employees before June 1988. Then on June 1 he announced that eight EDS managers were joining him to form Perot Systems-and that the start-up already had a deal to help the U.S. Postal Service bring its costs under control. There was a touch of whimsy to the launch. Capital came from a Perot family group dubbed HWGA, for "here we go again." The logo was a simple P.S., as if the company were a postscript to an earlier message. But Perot stated that he did not intend to compete directly with EDS. And in accordance with the buyout agreement, he noted, his company would earn no profits under the Postal Service contract until after Decem- ber 1, 1989. From then on, Perot Systems would share a percentage of whatever savings it found in the system. EDS gagged. Lester M. Alberthal Jr., a 21-year veteran of the company and Perot's hand-picked successor as CEO, said he felt "betrayed." For one thing, the post-office contract would shut EDS out of a market it had wanted to get into. For another, Perot would undoubtedly try to recruit other EDS employees. Granted, that conformed to the letter of the buyout agreement, but the whole deal violated its spirit-or so Alberthal would contend. In any event, he launched afull- scale attack against the post-office contract in the courts and on Capitol Hill. In the ensuing firestorm, Postmaster General Anthony Frank backed off, agreeing to open the'contract up to competition. Perot's response was predictable: he declared war. Com- _..-._,__.., .,_,._: paring the EDS contract chal- lenge to "the sneak attack on Pearl Harbor," he vowed to go after every contract EDS had, - ----- -and left no doubt who would D~ was like a win. "It will be like turning a bunch of bulldogs loose on a ,'says one veteran. bunch of poodles," he sneered, accusing the EDS leadership of it in low gear, and it becoming "wimps" and "lap- d run over anything' dogs," who "can't order tooth- picks" without GM's approval. gunner's command The name-calling must have hurt. It hurt even more when simple,' says Perot Systems won the first s marketplace competition, a her. Ready, aim, contract to automate a division fire, fire, of McGraw-Hall Inc. Perot Sys- tems also won in federal court, fire,' beating back EDS's legal chal- lenge to the post-office con- tract. Meanwhile, Alberthal had filed another suit, charging Perot with violating the buy- out agreement. And Perot countersued. So it went through the fall. It was wonderful theater, and the media ate it up. There was pa- thos. There was humor. There ~;,~ ~ k,9 E "' `' `~ } ~ a a .~ ~ . ~;. ~r; With Col. Arthur Bull'Simons, Iran rescue team leader were plots and subplots, intrigues and vendettas-all leading to that sunny mid-October afternoon when Perot and Al- berthalfinally met face-to-face in the Dallas courtroom. Alberthal, quiet by nature, sat with his lawyers and spoke only from the stand. Perot, master of the gesture, sat in the gallery with Pat Horner, the new company's president, and chatted amiably with the press during the breaks. He couldn't resist a jab at EDS for contending that Perot Systems wasn't really operating as a nonprofit. "Thanks to them, I'm sure to be nonprofit," he said. "I'll be paying these lawyers for the rest of my life." But, overall, he was unusually restrained. He said he found the whole thing a "personally painful" process. "The sad part is what this is doing to EDS." Did he mean it, or were those just crocodile tears? It was hard to say for sure. Indeed, it is hard to be sure of anything about Perot, the real Perot, even after his 20 years in the pub- lic eye. Who is this guy? Just how did he manage to build a nearly $1-billion company from scratch-and in the process create a whole new industry-without ever having it outgrow him? And why did he then deliver that company-fueled by a degree of personal loyalty rare in the annals of American business-into the hands of a corporate bureaucracy that represented everything he reviled? What is his reason for try~~ ing now to destroy his own creation, the company he raised like afirst-born son? Revenge, as some analysts contend? Wounded vanity, as EDS spokespeople suggest? How can he hope to build a new company around such motives, let alone win in the marketplace against the likes of GM and IBM? And what exactly is his plan for Perot Systems, anyway? Will it be another EDS, or does he have something even grander in mind? What will he do differently this time? What has he learned? Scan the public record, and you'll find few answers to such questions. But then, maybe that's because few people ever asked. ROSS PEROT IS SITTING IN HIS DALLAS OFFICE, UN- der the American classic Spirit oj'76. He is recalling how he sold EDS's first customer, Frito-Lay Inc. "IBM and Arthur Young were against us," he says. "At their request, the Re- public National Bank joined in the chorus, saying they would put us out of business if Frito-Lay ever hired us. Herman Lay, who was an entreprene[~r, listened to all this and turned to one of his associates, George Williamson. And he said, `You know, these [EDS) boys must have something. There's just four of them, and they've got all these giant corporations teamed up against them. They must have something, George. We ought to hire them.' And he gave us our chance. That was our first ~' ~;,~~ ~I ~ rY ~( r~ 0 0 0 0 56 INC./JANUARY 1989 --~ i account. And the fun part is that, years later, Arthur Young became EDS's accounting firm. And EDS became IBM's larg- est customer. And just this year, I underwrote the bailout of the Republic National Bank. So, if you live long enough, you get to watch things go around in a circle, and it's kind of interesting." Perot has lived long enough to see many things come full circle. Here he is, after all, 26 years later, starting over again with a new company. Is it the same? "No, not really," he says. "Starting EDS was months of terror. Because we didn't have any money. And we didn't know what we were doing. Keep in mind, we created a new industry with EDS. Today, it's a multibillion-dollar industry. We've got all these people who are beyond experienced, beyond talented; who are better than I am. We're fully funded. And, the last time around, whenever we opened our eyes, IBM was there, putting us out of busi- ness. This time, it's just General Motors. But, still, as I en- counter these things, it's a lot like watching an old movie- onlythis time I can afford the popcorn." These days, Perot is not the only one experiencing that par- ticularform of deja vu. It is a sense he shares with people like Lotus Development Corp. founder Mitch Kapor and Apple Computer Inc. founder Steve Jobs-to name but two of a growing number of successful entrepreneurs who are trying to do it again. Yet, even in that select group, Perot stands out. "He's just got a really wise perspective on things," says Jobs, who brought Perot in as an investor and board member of his new company, Next Inc. "We talk on the phone once a week or so. He's somebody we can always call up and bounce ideas off of." Perot's wise perspective is anything but complicated. To hear him tell it, business success is largely a matter of hard work and common sense, combined with an understanding of human nature. "If I set the curriculum at the Harvard Busi- ness School, God forbid, the first and most important course would be human nature." And leadership? "Suppose some- body says, `Look, Ross, I'm very busy. What's the most im- portant thing you can tell me about leadership?' I'd say, 'Just treat people the way you'd want to be treated.' Then he'd say, 'That's the golden rule.' And I'll say, `That's right.' He'll say, `Well, wait a minute. Are you saying that, in a rapidly changing world, the principles of leadership are timeless?' 'Yup.' And he'll say, 'How can that be?' And I'll say, 'Because human na- ture doesn't change.' It doesn't change." It sounds simple and obvious when he says it, but is this, in fact, business he's talking about? There's something unnerv- ing about hearing Perot talk this way. Not that he seems insincere. It's just so out of whack with the public image he has created for himself-with his legend. Consider, for example, the Texas Medicaid battle of 1980. EDS had been a subcontractor on the first Texas Medicaid contract, awarded in 1967. By 1980 it was the prime contrac- tor, and the account was generating almost $4 million per year in earnings. When the contract came up for renewal in 1980, Perot didn't expect much competition: EDS's cost control and customer service made its work in Texas a national model. So he had flown to London while the contract was being bid- then turned around and flew home when state officials award- ed it to a smaller competitor from New York. Unable to imag- ine that he'd been beaten fair and square, Perot took personal charge of the counterattack. It was a classic EDS operation, organized like a commando raid and executed with speed and precision. Arriving home, Perot went to his office and started working the phones, pulling key employees from projects around the country. "Pack your bags," they were told, "we're going to war." Within days, the team was assembled and the strategy set. They'd fight in the Austin statehouse, organizing a massive lobbying campaign to reopen the competition. They'd fight in the newspapers; Perot had connections there, too. Thev would dig into the motives and methods of every state official who might have had a hand in the contract award, looking for flaws in performance, ethical lapses, or personal peccadilloes. Then they'd work backward, digging into every contract their competitor had won, anywhere in the country, ever. For the next four months, the EDS team searched for they smoking gun. "I don't like conflict," Perot told the press, but this was a question of principle. "Good guys don't necessaril}~ finish first, and the world is not a fair place." Private detec- tives were hired and wired for sound; would-be confidential sources were secretly videotaped, then convinced to step forward on the basis of what they'd revealed. Shortly before the reopened contract was to be awarded, television viewers in Texas sat spellbound by an investigation of "Medicaid: The Finagle )~actor." Much of the special report contrasted EDS's sophisticated mainframe operation, satisfied clients, and low costs with the competitor's operation-a jumble of paper, dismaying honest doctors and enriching the Medicaid mills. The report probed the contract-award process, too, exposing the methods of state officials in Austin as slipshod at best. But the bombshell came near the end. In videotaped inter- views, former officials in New York and California alleged they'd been offered high-paying jobs to swing contracts in the competitor's favor, a clear violation of conflict-of-in- terestlaws. "It was Perot as classic SOB," one source says. "He came screaming out of the sky, talons bared, and ripped their eyes out." Vindicated, he sent his smoking gun to law-enforcement of- ficers and government officials as well as the press. "It was real hardball," recalls Steve McClellan, the Merrill Lynch analyst who may be the most widely quoted Perot watcher in America. "The competitor disappeared with a whimper." From such battles, the EDS legend was born. "EDS was like a tank," says one veteran. _ _. ._ _ . _ ___ "Put it in low gear, and it could run over anything." "Our gunner's command was simple," another agrees. "Ready, aim, fire, fire, fire, fire, erybody fire, fire." But in the sound and fury of thought EDS was a the Texas Medicaid battle, it was easy to overlook a more terrible idea. IBM he subtle, though equally impor- tant, message. Beyond Perot's me all the way to fierce competitiveness, the op- corporate headgUart eration demonstrated the pow- er of his organization-flexible and didn't think it w enough to restructure in a few days; deep enough to know that any good. I would ha each lieutenant called to head- WelCOmed Venture Ca quarters could be replaced, in- stantly, with no noticeable investors, but nobody effect on the customer or the troops in the field. The compa- WOUId put In a penny, ny had been built as a shifting collection of loose teams, as- Was literally stuck sembled and dismantled as kith lt.' challenges were overcome. Their strength came from their ability to focus, and their loyalty to a shared cause. And therein lies the irony of and ers . as ve pital I INC./JANUARY 1989 57 . .~, - the Perot legend. From the Texas Medicaid battle to the Iran rescue mission, its glitter was constantly obscuring the one element that made it possible: the organization. WHEN YOU ASK PEROT HOW HE DID IT-WHERE HIS ideas about company building came from-he talks about his childhood in Texarkana, Tex., during the Great Depression, and the values he learned from his parents. He may also mention the business education he received at the age of 12, selling newspapers in poor neighborhoods where no one else was willing to go. Leadership, he says, was something he learned at the Naval Academy. As for his technical-training programs and philosophies, he credits those to IBM, where he went to work after his four years at sea. Then he says, "So where does it come from? It's just a blend of all that, I guess. You see, I don't know where it comes from, but everybody asks me, so I try to create a story." There was, indeed, no management blueprint or grand strategy for EDS. It began like most great companies: as an idea that sounded ridiculous to almost everyone who heard it. "People ask me how I made so much money," Perot says. "I was stuck with it." A star salesman for IBM, he had come up with the concept of selling customers computer services along with their hardware. "Everybody thought this was a really terrible idea. IBM heard me all the way to corporate headquarters and didn't think it was any good. I would have welcomed venture capital investors. Nobody would put in a penny. I was literally stuck with it." The company was officially launched on Perot's 32d birth- day, June 27, 1962. It got going with the help of Herman Lay, who not only became its first customer but agreed to pay in advance. What really fueled its growth, however, was the passage of national Medicare legislation in 1965, which opened up a whole new business of administering claims. Over the next 19 years, EDS grew to $947 million in revenues and 14,000 employees. Perot stayed with it, building the orga- nization as he went. he one thing I know through experience the one absolute thing I know® is that people don't really know why they come to work until they don't have to come to work. dome people are eagles, do brilliant work, but just fold up on you when their financial needs are met.' Like any successful entre- preneur, he operated on in- stinct, by trial and error, figuring it out along the way. In recalling his experiences, he re- fers constantly to his mistakes. "When I started EDS, I didn't know anything about stock. I owned the whole company. As we went along, I just kept issu- ing stock to people who did a great job. I didn't realize how complicated that would get af- ter we went public, because then the reward was controlled by the market price of the stock. So it became much more difficult to recognize and re- ward these bright, talented, able young people who were just coming up, and I didn't foresee that. That's probably the most serious mistake I ever made in the area of recogniz- ing people. `See, in a privately held com- pany, you have a lot more flexi- bility. Then your challenge is to accept the fact that you're going to make a lot of mistakes. You 0 ;: ~~ '- ~. ~ _~ , ~, ~~ ,. ,, ~~;: ~' ~ ~ ' ~ ~-~ ~ _. •., , •r-~--~ •~ C~ ~ , _ t ~~r~ _~ '~ ~ `sue` With N. Vietnamese POWs in a S. Vietnamese pnsorz ~: r~' J ,1~ /~ I o ~o 3 z !~: z Z need to recognize and reward people without trying to front- end load it too much. The one thing I know through experi- ence-the one absolute thing Iknow-is that people don't know why they come to work until they don't have to come to work. There's a very large number of people who are eagles, who do brilliant work, but who just fold up on you once their fi- nancial needs are met. They lose their edge. And it's a tight- rope, because you have an obligation to reward those people for excellence, but some of them are going to go soft as a result. So you just have to keep training the new young ones behind them." Recognizing and rewarding excellence, searching for ea- gles, paying with equity-it was all part of the corporate culture Perot began to create long before the phrase entered the business lexicon. He hired people like himself, then gave them the best of what he'd been given. Outsiders often com- mented on EDS's military trappings-the fences and guards; the abundance of flags; the clean-shaven men in white shirts, dark suits, shined shoes, and army haircuts, all walking around in gung-ho double-time. Some people described the atmo- sphere as "militaristic," but they missed the point. Many EDS employees came straight out of the service. They were thor- oughlycomfortable in military surroundings and often unsure how to dress in the civilian world. The dress code solved the problem nicely. Inside EDS, moreover, the spirit was more democratic than militaristic. Rather than an army with a formal chain of com- mand, the team operated like a loose band of guerrillas, with Perot as the leader. They honored the man in the field, encour- aged him to make his own decisions, regardless of his title or his position in the hierarchy. Results were all that mattered, and compensation was geared strictly to performance. There were no class distinctions, no private parking spaces or execu- tive dining rooms. There were no memos, either: if you had something to tell Perot, he wanted to hear it face-to-face. "I can't talk to a memo," he says. "I want a live, breathing human being in here saying, 'Look, I think you ought to do this, and here's why.' " The system bred a kind of unity and loyalty that is rare in any organization. "I never doubted that-if I needed any re- source that Ross or the company had-it would be there," recalls EDS veteran Gary Wright, now with Perot Systems. "And I never doubted that I had the same responsibility to everyone I worked with." The model for loyalty came from the top. Once, in the early days, Perot disappeared from the office unexpectedly and went visiting, calling on the wives of each of his colleagues, thanking them one by one for putting up with the late hours, 58 INC./JANUARY 1989 f that reall it ver deleg liters bette f®r p expla avers f kno ~goa best p and giving each 100 shares of stock as a token of gratitude-a token now worth about $165,000. But Perot gave more than money. If a family member were severely ill, he would be there, arranging personal planes, locating specialists, or find- ing away to pay the bills insurance didn't cover. And he would do it for any team member, notjust the executives. But loyalty was never allowed to interfere with duty. Perot loved to see young men stand up, particularly if they were fighting for a customer. He still keeps a sign on his door: "Ev- ery Good and Excellent Thing Stands Moment by Moment on the Razor's Edge of Danger and Must Be Fought for." The reason, he says, is to remind visitors that they must be willing to fight even him for their ideas. "You might come in when I don't feel good, when I'm tired or distracted or whatever. But your idea is on the razor's edge of danger." Perot ex- pected people to look straight into his piercing blue eyes and take him on head-to-head, if the good of the company was involved. Those who fought, and those who performed, received enormous financial rewards, but not in the form of salaries, which were modest. Instead, excellent work was recognized with ad hoc bonuses and bestowals of stock. There was no uniform salary administration, no regular compensation re- view;discussing salary with a peer was grounds for dismissal. Again, Perot served as the model. He set his own salary at $68,000 in 1965 and never gave himself a raise. Nevertheless, when he took the company public at $16.50 a share in 1968, he was said to claim a persona] net worth of more than $350 mil- lion. By March 1970, with the stock trading at $162, the value of Perot's EDS holdings had grown tenfold. Not that the mon- eyseemed to matter much to him. He still ate in the company cafeteria, waiting in line like everyone else. He was as likely to shop K mart as Neiman-Marcus. And, in May, when EDS stock dropped back to $29 per share, he dismissed his losses as "Mickey Mouse." "Ross is Ross," his employees would tell you. "He'll never change." What mattered to him was seeing EDS grow, train- ---.-----„......Y,..,__.,,,.~._,~ ing others to spread the code. Perot says he never had a problem delegating responsi- bility and authority. "My expe- -<_....-.... rience is that people who are ex erience i really, really bright find it very y p S difficult to delegate, because people who are they literally could do the job better themselves. For them, y, really bright find it's kind of unnatural to dele- y difficult to gate and do all the things you have to do to go to a big organi- ate, because they zation. But for people like me, who are average, it's different. lly could do the job Oh, I've got an ego and all that, r themselves. ~Ut but I know I need help. So I go and get the very best people. eople llke me,' Then you've got to motivate 'em, create a good environ- ins ]Perot, `who are ment, and soon." He made no bones about ge, lt'S different.... what he meant by "the very w ~ need help, $® best people," either. "I'm look- ingfor people who love to win," nd get the very he told potential employees. "If I run out of those, I want people eople.' who hate to lose." Like everything else at EDS, hiring was driven down the ranks as the company grew. 60 INC./JANUARY 1989 There was no personnel department; decisions were made in the field. Prospects would be brought in for a team interview by their potential peers, and looked at three ways: 1) would you want to work with him as an equal on a project? 2) what if he were your team leader? 3) what if you were his team leader? Ability to accept the culture was more important than technical skill or experience. And the code of loyalty was enforced: recruits who required technical training had to sign an employment contract, promising not to leave EDS to work for a competitor, and to pay back the approximately $9,000 invested in their training if they should quit or wash out. Perot operated then, as now, in the belief that the eagles would separate themselves from the flock. "You just put them out in the field," he says, "right in the thick of competition, and the eagles emerge." Once they emerged, the challenge was to make sure they reached their potential, which meant piling on responsibility. "Give 'em more. Constantly give 'em more. Just keep them in a little over their heads. But don't drown 'em. The best ones are like corks. They have a lot of resilien- cy.But everyone has his own thermostat that determines how much pressure he can take, and he can't do a thing about it. People who can't take as much pressure as others wish they could, but they can't. So it's important not to push people be- yond the point of no return. Aside from that, we really try to challenge them and have them grow as fast as possible." Mistakes were forgiven-indeed, encouraged. "We teach people that mistakes are like skinned knees for little children. They're painful, but they heal quickly, and they're learning ex- periences. All over corporate America, you get to be chairman of the board by keeping your nose clean and not making mistakes. My people are covered with the scars of their mis- takes. They've lived out in the field; they've been shot at; they've been hit in every part of their bodies; and they're real. By the time they get to the top, their noses are pretty well bro- ken. The chances of them getting there with a clean nose are zero. Because they get there by producing, and the by-product is to make mistakes." It was a grueling regimen. Team members would often get calls on weekends, in the middle of the night, or during vacations, instructing them to report immediately or the next day to help another team on a troubled project. Many of them burned out. Others found the rewards not worth the strain. But the eagles thrived. "The focus was always, #1, do the job for your customer; #2, make money at it; and, #3, teach someone along the way to do it," Gary Wright recalls. "If you accomplished those, he was eager to let you have your head and do it your way." "Ross Perot is not amanager-he's a leader," insists Perot As a midshipman, with President Eisenhower Systems president Pat Horner, who joined EDS right out of the Air Force in 1976. "He works with you to challenge you to reach your highest potential. It's the antithesis of micro- management." In 1982 Horner was part of a team competing for the big- gest contract in the history of the industry, $656 million to build a nationwide computer network for the U.S. Army. Be- fore the competition got under way, Perot called the team to- gether, but not to give instructions. "He said, `I just want to explain to you how important this is-the jobs it's going to create, the milestone it's going to be in our evolution toward the world's largest systems integrator,' "Horner says. "All too often people try to manage the what and the how, but Ross manages the why. He can create a vision of the Here and now as a c-eflection of the past and a turning point for the future." No matter how much distance Perot kept from a project, though, he was always there for the customer. Former army project manager Clinton Black recalls that the day the contract was awarded to EDS, Perot walked up and passed him a slip of paper with a phone number on it. "You can always reach me here if you feel we're not living up to our agreement," Perot said. "Twenty-four hours a day, seven days a week." Black never forgot the moment. And the EDS team made sure he never had to make the call. BY 1984, EDS WAS A TRULY IMPRESSIVE COMPANY, earning $81 million net on gross revenues of $947 million. More to the point, it had a reputation as the best in its business and was on its way to becoming one of the premier companies of the twentieth century, a role model for all who wanted to compete successfully in the emerging international economy. So why did Perot sell it? "Pride goeth before the fall," says Perot. He is referring to the decline of America's international competitiveness since World War II, but there are echoes of another "fall" in his words. "You can go back to the Bible. This is human nature. Man, when he is successful for too long, becomes arrogant." ° ~ Was it arrogance that led Perot to sell his company? Was t ~ ~ it pride? Was it boredom? Was it l ®ver the need for a truly monumental challenge, one that surpassed corporate America,' says any he had yet encountered? Whatever caused him to do it, ]~erot, ~y®U get t® be the sale of EDS to GM was per- chairman og the board baps the greatest blunder of his career. by keeping your nose Perot had, in fact, been look- ing for a major new project, an clean and not making industrial corporation that mistakes. I~ eo le are Would let his people expand on 3' p p the capabilities they had devel- covered with the scars oped on the army contract. It never occurred to Perot or his ®1' their mistakes. ley people, however, to take on a major automobile manufactur- the time they get to the er; they had no experience in top, their noses are that industry. And when Salo- mon Brothers broached the pretty well broken.' idea of a friendly takeover by GM, Perot was skeptical. Rog- er Smith didn't need to buy the company, he argued. Why not just become a customer? But the GM chairman made 62 INC./JANUARY 1989 D ~~ ~ ~' "~ :t , ;,, (~ ~ ~~ .~~1 { .k ., ;. G- ~y ~ #\ ~ ~ S ~ ~ ~ F~ ! ~ " ~ ~ ~\ ~ 5 ' ` ' 1 t f{ is ~ r • ti{ - ;; t i ~ ~ ~ v :;.1 T i ~ ,.: ~; ~ a e : ~ ~ - ~ g v . ~_ _ ~ ~ ~~. ` .:~1 f ~, ~ ;~ ~<< l ~ ~. ,.. z - ~ ~~ : ' r ~ , l ^ - _ . ~..; ', t3 ~ ;1<'- - - Wtth Steven Jobs, fouyider of Apple Computer and Next EDS an offer Perot couldn't refuse. It wasn't the $2.5 billion; it was the challenge of trying to infuse America's lagging auto- maker with the code of the eagle, combining Gi\-I's resources with Perot's entrepreneurial dynamism to create a giant that would, once and for all, put the Japanese in their place. How could he refuse? Perot signed the letter of agreement on his 54th birthday-June 27, 1984-and the sale went through in October, making him GM's largest stockholder and its best-known board member. His mission: to combine GM's data-processing and communications mishmash into a sin- gle lean unit, processing the paychecks and programming the robots. But something else happened with that stroke of the pen, something that only became evident in the ensuing weeks and months. Perot stopped being a company builder and was in- stead thrust into the role of corporate politician, a job for which he was totally unsuited. There was bad blood from the start. Every step was a battle of antithetical cultures. EDS was expected to absorb General Motors' 10,000 data-processing personnel. Ivlost of them balked at the prospect of trading overtime pay, cost-of-living increases, and a generous pension plan for the results-orient- ed stock and bonus compensation of EDS. Others fought the work ethic that called for "death marches," and the stc-ict dress code. Though specific on the financial details, the contract was vague about implementation and independence. It soon be- came clear that the two sides had very different notions on those issues. Detroit wanted the sign on the door to read "EDS, a subsidiary of GM." Dallas said no. Perot also fought to keep GM from auditing the EDS books and insisted so vehe- mently on aseparate compensation plan for the EDS brother- hood that he drove Smith into choleric shouts of rage. It was even uglier in the trenches. "The GM people called us 'corporate moonies' and `Perot-bots,' "Craig Hanley, a former EDS employee, remembers. "There was constant jockeying for position." The EDS staffers responded as they had been trained. "Do it our way," became their watchword. They didn't care if they looked arrogant. They knew they were right. In retrospect, it's hard to understand how anyone could ever have thought the marriage of Perot and GM would work. But whatever chance it had was certainly lost when he took his criticism public. While he continued to speak positively of Smith personally, he scourged GM. Get rid of the committees and consultants and M.B.A.s, he insisted. Stop showing con- temptfor your dealers, your employees, and your customers. Give up the corporate dining room, the chauffeured limou- sines, the hefty bonuses in hard times. Get back to the trench- es. Listen to the troops. Take care of them first, and they'll take care of you. Perot's people certainly listened. Ken Riedlinger, in charge of the integration from the EDS side, ordered that the execu- tive dining room in the data-processing facility be converted to office space. He then proposed to carpet the executives' heated underground garage for the same purpose. But Perot himself, once the master of his domain, was reduced to being a thorn in GM's side. And what a thorn! He kept Norman Rockwell's HomeconaingManne in his office, he told one reporter, "to remind my GM visitors that we used to whip the Japanese right regularly." The gunner's command at GM, he told another, was, "Ready, aim, aim, aim, aim." There was always a message behind his jabs, but the punch- es never seemed to do much more than sting GM. By late 1986, both sides had had enough. Perot tried to arrange a sale of EDS to AT&T that October. When the deal fell through, he went to the troops one last time. He was willing to keep up the battle, he said, unless his continued presence would only make things worse. They could sue GM to force the company to honor EDS's independence, but that seemed impractical. "What do you want me to do?" he asked. "Fight? Or step aside?" On December 1, 1986, Perot bowed out. The spirit of the buyout agreement is still in contention. The letter, however, is there for al] to see. It clearly states that Perot could forma "not-for-profit" venture, and could hire EDS employees to staff the business after May 31, 1988. Perot says he put those clauses into the contract at the re- quest of "the same [EDS] people who are now suing me in court"-anot-so-veiled reference to Alberthal, his successor. Perot says they wanted to ensure that he could liberate them if GM's grasp became intolerable after his departure. At an EDS meeting before the signing, attorney Tom Luce later tes- tified, the passage was described as the "free the slaves" clause. Alberthal has said in court that he recalls no such discussion. At the time, Perot stated publicly that he thought the agree- ment was a bad deal for GM. He even gave the board an extra two weeks to reconsider. "My attitude all the way was no one will ever sign this agreement on the GM side-it's unbusi- nesslike," he testified. Subsequent events have only con- firmed his opinion. "It's a dumb agreement," he says. "Why did they give me al] these rights? Who knows?" Nevertheless, he was happy to get them. After the signing, he put more than $2 million in trust for Luce, to supplement the $158,000 fee EDS had paid him. With Perot gone, Alberthal took charge of EDS and-by most accounts-did an excellent job. As the squabbling and the rhetoric died down, he successfully completed the integra- tionwith GMand guided EDS to its best two years ever. Reve- nues grew from $4.38 billion in 1986 to $4.44 billion in 1988, and profits soared from $261 million to $323 million. Mean- while, Alberthal managed to remain friends with his old boss. Perot even loaned him $650,000 at one point, which Alberthal subsequently repaid with interest. There were signs, however, that Perot himself was not so happy. He seemed bored with civilian life. From time to time, he would call Dallas Times Herald columnist Laura Miller just to talk. "What else am I supposed to do?" he asked her. "I'm unemployed." Reporters began writing stories about Perot, the fallen eagle, out of the limelight, forced to cool his heels because of a noncompete clause. But the clock was ticking on that clause-as the EDSbroth- erhoodwas well aware. Perot says that, from December 1986 on, a number of key people from EDS began approaching him individually, offering their services if he should decide to launch a new venture. "I said, 'I don't have any ideas that I'll ever do anything, but-if I do-I'll let you know.' "Then, last winter, the Postal Service sent a representative to sound him out about becoming Postmaster General. He declined. In- stead,Anthony Frank was selected for the job and, soon after, visited Dallas. Perot says Frank asked him about putting to- gether ateam "to assist them in restructuring the Postal Service for the twenty-first century." And, suddenly, the pieces began to fall into place. ON THE SURFACE, PEROT SYSTEMS CORP. LOOKS like most six-month-old start-ups. Its headquarters in Vienna, Va., is 17,000 square feet of leased space, with borrowed phones and mismatched orange furniture that shows its age. Old Postal Service posters are pinned to the walls, mementos of the company's first, short-lived customer. Its data-process- ing capability is equally modest: two IBM PCs and two Apple Macintoshes. Given the founder's connections, a Next ma- chine isexpected any day. Furnishings aside, the company has so far lost $1.2 million, not counting the cost of its court battles against the World's Largest Industrial Corporation. But president Pat Horner is unperturbed. He whistles "Happy Days Are Here Again" under his breath, as he walks through the offices. He has no complaints. Ever since he ~_~~ joined EDS, he'd heard stories l erot kept Norm of that earlier start-up-Ross going head-to-head with IBM. ROCI{WeII'S ~OIIIeCOl111 Now, Perot has another start- up, and another fight, and urine In his office, he Horner is on the front lines. "This isn't EDS II, though," told one reporter, `to he insists. "Item one, Perot is remind my CirIVI visitors not running the company; we are. Just like Perot isn't running that we used to whip th Next; Jobs is. Item two, Perot today is not the guy he was in Japanese right regularl 1962. He's a man who lives to The unner's command build businesses. In '62, he had g to go out personally and make at ~~, he told another, sure his dream was a success. I think he gets the same satis- WaS, `Ready, aim, aim, faction now seeing other peo- , ple do it." aim, aim... . Granted, there are some sim- ilarities. Like EDS, Perot Sys- tems started with one stiff- necked man scratching out corporate objectives on a yel- low legal pad. But, this time, an ng e )'• INC./JANUARY 1989 63 saR ~a~ea raew-~: ~ •~n we d unle SUCC hero prese "~®o Job, y®u'1 t® CO wand jungl Can s don't Perot had 26 years of experience to build on, and eight certi- fied eagles to do the building. Just as he grew EDS by giving other people the best of what he'd been given, so now he is giving these eight the same chance he'd had there: each of them will be free to grow his own business. They are an impressive group. Collectively, they had man- aged more than 20,000 people at EDS and spent 120 years in the field. They each gave up significant amounts of stock to join Perot Systems; at least one of them sacrificed $900,000. They say they did it for three reasons. First, they contend, the old EDS brotherhood had dissolved in the post-Perot era, drowned in a sea of memos, sign-off sheets, and procedures. No one listened to the troops in the field. Rewards didn't come for performance, to the men in the trenches, but for appearance, to the bureaucrats and paper-pushers. Gone, too, was the loose organization that could reorganize in aweekend-replaced by committees and consultants. "It was not the company I had spent my career building," Gary Wright states. "The focus had gone from seeing how good we could be for customers to seeing how good we can look to each other." Under General Motors, Wright had need- ed seven different signatures to bid on acontract-sign-offs from lawyers, accountants, auditors, and program manag- ers-but "I thought my job was about winning, not about getting signatures." Their second reason for joining Perot Systems was that, like Horner, they loved the thought of a start-up, and the prospect of working with Perot again. "I knew that if Ross were forming a team, it would be the best team in the world," says Wright. "Sure, there might be problems with GM, but we'd been in trouble before, and it sounded like fun." Third, and most important, they longed for the opportunity to "go after the elephants" again, as they used to say at EDS. Perot had pledged that they would only take "significant" work: giant projects that would change the industry and trans- form the way businesses think about using technology to gain - ----_ _ _ j competitive advantage. Perot, for his part, recog- nized the risks that his eight co- founders were taking, and his obligation to them. He began ~~t Perot ~ StemS fulfilling that obligation by let- y ting them shape the company's on't hire anybody statement of goals. ~ It is an extraordinary docu- ss he s a roaring ment, revealing much about ess where he is 'Says 'here they all have been, and ~ what they have learned along t. `$o my basic the way. "Perot Systems will become the premier computer ntation to them is, services and communications firm in the world," it begins. k, you have a great From there, it goes on to pledge a great future, and that the company will belong to the people who build it; earn af- t be leaving all that tertax profits in excess of $100 million within 10 years; have me ®ver here and the strongest balance sheet in er around in the the industry and no debt; main- tain an atmosphere of mutual e at night. If yoU trust and respect; and "listen to the people who do the work." tand not to do it, Never again will they go come."' through the GM experience: "Perot Systems will not be sold or merged." 66 INC./JANUARY 1989 r-T V,, c /" " y f' 0 ~~ ~ + ~'~ ~~ --_ ~ . ~I,, r ~~ ~i~ ~ ~ti_ '~' - __ --- --- - ~ ~, +~i ~ ~ ~~~ o -. , u a x O ~~ ~ ~ ~- '~ ~ ~ ~ J a ~~ `~ I~ta i~ k; ~ I ~ .v '~ ~' ;, ~~ ~,o ~ b ~ a~~` t.~~ C Two Scouts getting acquainted Nor will they ever allow the company to be run like GM:. "We will- ® Have only one class of team member-each member will be a full partner. Recognize and reward excellence while the individual is still sweating from his efforts. Build and maintain a spirit of `one for all and all for one.' Encourage every team member to take risks, make decisions, exercise initiative, and never be afraid to make mistakes. Hold team members accountable for results, with ...great flexibility in deciding how to achieve results [and] the clear understanding that ethical standards must never be compromised. i Eliminate any opportunity for people to succeed by merely `looking good.' Promote solely on merit." In similar detail, the statement spells out the new compa- ny's work ethic, management principles, and modus operan- di-all identical to those of the old EDS. And while the founders promise to compile the best "win" record in its industry, they go on to demand that "our ethical standards with customers and suppliers must remain impeccable." The personal code of conduct is equally rigorous: "We will not tolerate anyone who- Acts in a manner which will bring discredit to the company. Discriminates against another with regard to race, reli- gion, sex, or any other reason. C~ Looks down on others. Becomes a corporate politician. Tries to move ahead at the expense of others. Uses illegal drugs." To clear up any remaining doubts about the founders' inten- tions, the document concludes as follows: "By the end of our business careers, Perot Systems will be the largest, most respected, and most profitable company in the computer ser- vices industry. AND FINALLY, WE WILL ALL HAVE FUN PARTICIPATING IN A GREAT ADVENTURE-BUILD- INGOUR COMPANY." Perot says he wanted such a statement to make sure re- cruits knew what they were getting into. "These principles and philosophies are so direct and so specific that they might cause you to join or not to join, but you wouldn't wonder three or four years later what the philosophies were. Now we don't hire anybody unless he's a roaring success where he is. So my basic presentation is, 'Look, you have a greatjob, a great posi- tion, agreat future, and you'll be leaving all that to come over • ~_~ year love peop Brea searc in A when peopl the X expla copy they' don't here and wander around in the jungle at night. If you can stand not to do it, don't come.' " The overall objective is clear: to create, not another EDS, but a company that is better than EDS ever was; better, perhaps, than EDS ever could have been. Within 10 years, the founders would like Perot Systems to be about the same size as EDS before the sale to GM-about $1 billion in sales. Rather than doing it with 14,000 employees, however, they plan to get there with less than half that number. They will op- erate as general contractors, Horner says, becoming "the Bechtel of the information age." That's possible because of enormous changes in the indus- trysince the early days of EDS. As the industry pioneer, it had to service itself as it grew-developing its own data centers, infrastructure, giant computer networks, facilities for auto- mated data processing, and so on. Today, those services are available from a variety of highly qualified subcontractors. By using them and taking advantage of the most cost-effective technology, Perot Systems hopes to stay leaner, and more flexible, than its competition. Such a strategy has major implications for recruitment. The old EDS hired young people, offering them entry-level posi- tions. Perot Systems is looking for more experienced people. The lure is opportunity. So far, it seems to be a powerful one. According to Mike Maurer, the 28-year-old in charge of re- cruitment, the company has received more than 6,000 job applications, mostly from current or former EDS employees. Internally, the structure is still evolving. The eight co- foundersare equals. They elected Horner as president; but he is the only one with a title (aside from Perot, that is, who was officially designated founder and chairman). They then pro- ceeded to divide up the world: one took industrial automation, another financial services, a third health care, and so forth. Within their respective markets, each acts as an entrepre- neur, free to pursue whatever opportunities he can find. They hire their own team members, looking for people who have the capability to run a major piece of business-even if Perot Systems doesn't yet have the business to give them. The plan calls for team members to be- come team leaders as the com- (~ ~~ `~ ~ pany grows, and to hire more ook, I spent 24 team members. Just like it was in the old days. s building 1JD~. I "If we end up with a bureau- cracy here," Perot has told his 1JDS. I love the people, "you can look in the le at 1JD~. ~'I heart mirror, because you did it." 3' Nevertheless, Horner does not ks when they start rule out the possibility that they may decide to become a bit hing the people more centralized in the future. Then again, they may not. UStln ... "People like to have their own they make the playpen," he says. "For now, we'll be individual entrepre- e in Dallas log onto neurs. We'll have to face those issues later." His attitude does erox machine and not reflect a desire to avoid con- in why they need to flirt so much as mutual respect and trust. They all know the something. What kind of environment they want to create-one for such people re saying is, we as themselves. trUSt yoU.' In the meantime, they're go- ing after business. To date, they have 10 customers in 68 INC./JANUARY 1989 hand, and many more have called, if only out of curiosity. An executive from Ford Motor Co. approached the compan}•. An executive from GM's Hughes Aircraft Co. has called twice. says Horner, "but I assume the idea of hiring us will be squashed when it gets to the higher-ups." In competing for clients, Perot Systems has adopted a bold pricing strategy. Using the model developed on the ill-fated Postal Service contract,. it tries to negotiate deals that pay a share of the cost savings the company finds. That's far riskier than the standard industry practice of basing payment on fixed prices and deadlines, with alloevances for cost overruns and penalties. "But it tells the customer that he's not bu}°ing a paper tiger," says Horner. "If we don't perform, they don't pay." And does the strategy work? EDS found out the first time (and as yet the only time) that the two companies competed head-to-head in the marketplace. At issue was a major contract for McGraw-Hill. William A. Crowell, the McGraw-Hill divisional vice-president in charge of awarding the contract, called for proposals from six possi- blesuppliers, including EDS, Perot Systems, IBM, and Digital Equipment. Perot Systems responded by criticizing the pro- cess itself. "That's the worst way in the world to pick a company to take a 100-year-old business and move it into the next century," Horner argued. "VVhy would you make a ca- reer decision like that based on who can field the better proposal?" Instead, Horner offered McGraw-Hill a "fly-before-you- buy" arrangement, whereby Perot Systems would work on a series ofone-day contracts for the life of the 18-month project and be paid on the basis of cost savings. McGraw-Hill could pull out at any time if Horner's team didn't deliver what was needed and more. "We're willing to put our necks on the line for performance and results," he said. "Judge us on our ability to deliver a fully automated line of business, not to compete over paper proposals." That was on Wednesday. On Friday, Horner submitted the same offer in writing. "If I haven't accomplished anything else, I've proved it doesn't take 45 days to write a proposal," he joked. On Monday, McGraw-Hill put Perot Systems to work. THERE REMAINS ONE NAGGING QUESTION ABOUT Perot, regarding the venom with which he has attacked EDS in the media. He has been relentless. It was Perot, after all, who told reporters that EDS was searching its offices for signs of treason; Perot who publicized the EDS memo calling for shredding of sensitive documents; Perot who kept crow- In his Dallas office, beneath Spirit of '76 ing about his new company's victory in the McGraw-Hill com- petition (without ever mentioning the customer by name). The court cases were a drain, he admitted, but he had deep pockets, and the publicity had been invaluable to Perot Sys- ,~ terns. "Pretty soon we'll be as well known as Ivory soap, thanks to these guys," he said. "Competing with them is too easy. I'm worried my guys are going to get soft and drop their gloves." Why is he doing it? What does he think he's accomplishing? '~• Does he have no feeling for the company he created and the people he hired and trained? Much of the press, many stock analysts, and most of his critics chalk it up to "revenge, pure and simple," as one analyst put it. Perot, they say, is conducting a vendetta against Roger Smith. EDS has simply gotten in the way. Some of his erstwhile colleagues offer another argument. "EDS just had its best two years, and I think that bothered him," says Bill Wright, the company's chief spokesman since the Perot years. EDS's outside attorney Bill Slusser agrees: "For a great man to see something profit after he's thought it was totally dependent on him must be hard. It's a classic example of when a whole lot is not enough." There's no question that Perot is very angry at GM; no question, either, that he would like Perot Systems to give EDS a sound thrashing in open competition. But it doesn't neces- sarily follow that he is acting now out of either vindictiveness or injured pride. Moreover, both explanations ignore certain inconvenient facts. For one, Perot did not go after EDS-at least not when he ~ launched Perot Systems. EDS came after him. In the early publicity, Perot was careful to emphasize that the new compa- ny would not compete directly with the old one. Granted, EDS wanted a piece of the Postal Service action and had even established a modest beachhead there. But it was not Perot '~ who shut them out of the market. The Postal Service had ap- proachedhim, not vice versa. I Prior to the public announcement, moreover, Perot had called both Alberthal and GM executive vice-president Elmer Johnson to tell them of his plans. Alberthal testified about the conversation in court. "The basic message was," he remem- ! bered, "'I am going to do this, and-if anyone gets in the way-there will be a fight.' "It's easy to believe that Perot said something like that. But such a message is a warning, not an attack. Alberthal chose to ignore the warning. Instead, he attacked Perot-not in the market, but in the judicial and political are- nas. On the witness stand, he testified that he believed he couldn't "establish an identity for EDS" if his former boss was i out there operating another company in the same business: In other words, it was Alberthal's weakness, rather than Perot's actions, that precipitated the battle. Perot argues that, had EDS chosen to ignore Perot Sys- tems, "I would have gone out of my way not to compete with them, not to disturb their customer base. I'd have just gone off and sold new prospects. The market's so big that months would go by when we wouldn't even bump into each other." He also notes that the start-up team would have had its hands full with the post-office account. "If EDS hadn't said anything, nobody would even have known we were around. We'd have been buried in the Postal Service. You'd have needed help to find us because we would have been up to our ears wrestling alligators in one place." But EDS's attack changed the situation. For one thing, Perot Systems could no longer count on the Postal Service contract-so it had to find other customers. More to the point, it found itself in this situation not because of its failure to per- form,not because EDS came in with a better deal, not even be- cause of some legal flaw in the agreement. (The contract was upheld in court.) Rather, it lost because EDS's political pres- sureforced the Postmaster General to back down. And, subsequently, EDS continued to rely on weapons oth- er than its own competitive ability. After McGraw-Hill's Bill Crowell awarded the contract to Perot Systems, for example, EDS salesmen flew him to Dallas to ask for another chance. During the trip, they warned him again and again that EDS was about to put its upstart competitor out of business. The move backfired. Crowell decided to stick by his decision on the project. Such tactics infuriated Perot. This is capitalism, after all, and he is as pure a capitalist as you can find. He believes in open, unfettered, marketplace competition, in which compa- nies vie to provide customers with the best goods and ser- vices at the best price. In the long run, Perot believes, that kind of competition serves everyone best: competitors, cus- tomers, employees, society. Any other kind of competition is destructive-even (and, perhaps, especially) to the "winners." Alberthal must have known how Perot would react: they had fought the Texas Medicaid battle together. Maybe the EDS leader believed he could wear his old boss down. And, in talking to Perot, it's clear that he has grown weary of the bat- tle. "If somebody had told me you wanted to come down and do that story," he tells a visitor, "I would have said, 'To hell with it.' " And it's also clear that his anger toward GM and the EDS leadership has nothing to do with vendettas or injured pride. "Look, I spent 24 years building EDS," he says. "I love EDS. I love the people at EDS. My heart breaks when they stac•t searching the people in Austin. My heart breaks when they make the people in Dallas log onto the Xerox machine and explain why they need to copy something. What they're say- ing to those people is, we don't trust you. "I finally told a reporter the other day, 'I would like to send a message to everybody in that camp. You should do everything you can to beat Perot Systems. That's your job. But ignore ~. those people who tell you that-if Perot Systems wins- you'll be out of a job, because T •• I'll give you the first opportuni- en his old ty to join us. In the meantime, do everything you can to see company challenged that EDS wins.' " He himself is doing every- lri COUrt, he compared thing he can to see that EDS loses. That's how the system to the sneak attack on works. And if it hurts at times, pearl Harbor and vow he really has no one to blame but himself. He was the one to go after every eont who sold his company to GM. On the other hand, he has EDS had. `It will be li learned an important lesson. tUrn>!n a bunch of "The one thing I'm good at is g creating jobs," he says. "I take bulldogs loose on a a lot of satisfaction in creating new taxpayers. And it's impor- bunch Of p00d1eS,' he tant that you play to your strengths, that you do what you declared, accusing the can do best." EHS leadership of Ready, aim, fire. Fire. Fire. Fire. Fire. ^ becoming `wimps' and Research assislar:ce was provided `lapdogs.' by Elizabeth G. Conlin. him it ed ract ke INC./JANUARY 1989 69