HomeMy WebLinkAboutminutes.council.20080908ReBUlar Meeting Aspen City Council September 8, 2008
CITIZEN PARTICIPATION .............................................................................................. 2
COUNCILMEMBER COMMENTS .................................................................................. 2
CONSENT CALENDAR ................................................................................................... 4
• Minutes -August 25, 2008 ..................................................................................... 5
• Resolution #86, 2008, Radon Remediation Contract .............................................. 5
ORDINANCE #29, SERIES OF 2008 -Water Service Agreement -Three Trees LLC .. 5
ORDINANCE #24, 2008 - 508 East Cooper Subdivision ................................................. 5
ORDINANCE #23, SERIES OF 2008 -Bonds Castle Creek Hydropower Project .......... 5
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Regular Meeting Aspen City Council September 8, 2008
Mayor Ireland called the meeting to order at 5:05 p.m. with Councilmembers Romero,
Johnson and Skadron present.
CITIZEN PARTICIPATION
1. Toni Kronberg thanked Council for approving the bus lanes. They aze going to
work well. Ms. Kronberg told Council she brought the concept of the aerial tramway to
the Town of Snowmass Village and they are interested in hearing more. Ms. Kronberg
suggested there be better coordination of posting of meetings in the different locations.
Ms. Kronberg said the Lift One task force has hired a transportation consultant who will
address the task force this week.
2, Andrew Kole told Council the Motherlode Volleyball tournament needs to have
security at Koch park for their event next yeaz. People were bringing in liquor and other
untoward behavior. Kole noted at the ZG master plan presentation, it was stated that the
county needed 28,000 square feet above grade which is actually 45,000 square feet above
grade. The explanation is that the lower figure is net/net because the old building is
being demolished and replaced. Kole said it is sti1145,000 squaze feet of structure being
built. Kole noted if one has issues with a construction site, there is no way to contact
someone about that issue. Tricia Aragon, city engineer, said part of the construction
mitigation requirements are that construction sites be posted with a contact number. The
particular site referred to took down their temporary fence. Ms. Aragon said citizens can
always contact the construction mitigation officer.
COUNCILMEMBER COMMENTS
1. Councilman Romero thanked the community and the organizers and volunteers of
the Susan B. Komen Ride for the Cure; there were over 400 riders and the event raised
several $100,000.
2. Councilman Romero apologized for misrepresentations on the declazation of
covenants regarding Burlingame. Some Council represented, inaccurately, the procedure
on how density is changed and that is outlined in the declaration of covenants. This will
be addressed by the city attorney's office.
3. Councilman Skadron asked if a light could be installed at the Centennial bus stop.
Steve Barwick, city manager, requested the immediate neighbors be contacted and collect
signatures so that the city will know it is not just one or two people who want that light.
4. Councilman Skadron brought up the consumption tax report, the 1 % lodging tax
in 6 of 7 months the actuals were under prof ected; the housing RETT has a negative
variances in 6 of 8 months and the Wheeler RETT has a negative variance of 21%.
Councilman Skadron asked if this is the impacts of the slowing broader economy. Steve
Barwick, city manager, reminded Council the city's budgets were set almost a yeaz ago
before the credit crisis. Barwick said staff expects these to be down again in 2009 and
the budget figures will reflect that.
Regular Meetin¢ Asaen City Council September 8, 2008
5. Mayor Ireland said he was a volunteer for the Ride for the Cure and it was a great
event and people like the aid stations.
6. Mayor Ireland noted the community picnic is next Sunday at the golf course and
there will be a host of activities
7. Mayor Ireland congratulated Councilman Skadron for participating in an Iron
Man competition in Louisville and finishing in the top half for both his age group and
overall.
8. Mayor Ireland said it is not true that one can file a condominium plat without
specifying the number of units that will be built. That is required by statute and it is also
required that 2/3 of the purchasers of the units have to vote in favor of adding units.
9. Councihnan Johnson noted regarding the Burlingame declaration of covenants,
consistent with the developer model which the city was following, it was consistent that
Shaw takes on all these responsibilities. Councilman Johnson said going back and
criticizing policies seems to be a waste of time. People can learn from the past and it is
not helpful to continue reliving the past.
10. Nancy Lesley said the golf course will be closed Sunday, September 14`h for the
community picnic 11 a.m. to 3 p.m. The parking lot will be closed so people should walk,
ride their bikes or take the bus. There will be many activities like fishing, sand castle
building, bouncy house, Frisbee, food and a place for dogs.
11. Jim True, special counsel, brought up the covenants at Burlingame. True said this
project was controlled by Colorado Common Interest Ownership Act (CCIOWA), which
requires the city as the owner of the property to produce declaration of covenants for the
entire ranch. Part of the scope of work given to Shaw was for them to hire an attorney to
create the declaration. The attorney wrote a declaration of covenants, which was
recorded in 2005. CCIOWA states it is mandatory that the declarant, the city, state the
maximum number of units that it reserves the right to create. It is mandatory that that be
in the declaration. The city declared the maximum number of units be 236, which was
the number used throughout the project. CCIOWA also requires provisions about how the
declaration gets changed. True told Council it is possible to change a declaration and the
maximum number of units. CCIOWA requires 67% of all units, 60% of which are
owned by the city and 67% of the units sold to third parties, approve a change in
maximum units. True said to change the number of units at Burlingame requires 67% of
the unit owners other than units owned by the declarant. This is state statute and this
cannot be lowered; it can be increased. The Burlingame declaration states the only way
the number of units can be increased is by unanimous consent of the owners, including all
third party owners. True pointed out the declarations also require unanimous consent to
change uses, boundaries of a unit, allocated interest. True noted the declarations are
written so that any provisions in the declarations can be changed as long as they are
consistent with CCIOWA by 67% of the total unit count. True stated his position is that
Reeular Meetine Aspen City Council September 8, 2008
the unit owners, including the city's 60%, can vote on changing the unanimous vote to
the minimum allowed by CCIOWA. True said that change would be in the best interest
of all owners. The covenants could be changed to ultimately require 67% of the owners,
other than the city, to increase density. True reiterated the number of units was discussed
to be 236 units; CCIOWA allows that number to be changed in the proper manner. True
stated staff recommends the unanimous consent section be changed and then see whether
67% of the unit owners would approve an increase in the number of units allowed at
Burlingame.
True stated the homeowners at Burlingame have certain rights given to them and they can
exercise those rights. If they do not agree to an increase in density, then that increase in
density cannot happen. True said staff is meeting with the Board of Directors of the
homeowners this week to have this discussion.
Councilman Johnson asked if the state law sets out how that vote is taken. True said that
could be covered in the by-laws and secret ballot or not could be decided by the
homeowners. Councilman Johnson said he is concerned about a ballot issue on the
November ballot that could be mooted by a homeowners' association, causing public
consternation. Councilman Romero said putting the homeowners in first position honors
the agreement and that neighborhood; there is also the larger community and the goals
and objectives. True agreed the CCIOWA requirement protects the homeowners' rights
and their right to participate in changes.
12. Councilman Romero said the Lift One COWOP is tracking well and the next two
weeks will get deeper into content and examine the benefits, trade offs and burdens.
Mayor Ireland said he was distressed to read that the hotels are getting lazger; the
COWOP was not convened to increase the size of the lodges.
13. Mayor Ireland said he is attending the Governor's blue ribbon commission in
Denver tomorrow. Mayor Ireland stated the state of funding for transportation in
Colorado is perilous and that does not mean that money should be diverted from other
funds.
14. Mayor Ireland announced the city is continuing to conduct studies on the entrance
to Aspen alternatives including the split shot and 3-lane solution so that the public will
know the costs and efficiencies to each alternative.
15. Mayor Ireland said the intermountain transportation planning group reached
decisions on proposed projects and RFTA's BRT finished 4` in the priorities and was
forwarded to the SB 1 task force. These allocations of appropriations and budget go
through a public process.
CONSENT CALENDAR
ReQUlar Meetin¢ Aspen City Council September 8, 2008
Councilman Johnson moved to approve the consent calendaz; seconded by Councilman
Romero. The consent calendar is:
• Minutes -August 25, 2008
• Resolution #86, 2008, Radon Remediation Contract
All in favor, motion carved.
ORDINANCE #29, SERIES OF 2008 -Water Service Agreement -Three Trees LLC
Councilman Johnson moved to read Ordinance #29, Series of 2008; seconded by
Councilman Romero. All in favor, motion carried.
ORDINANCE NO. 29
Series of 2008
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN,
COLORADO, APPROVING AN AMENDMENT TO THE WATER SERVICE
AGREEMENT WITH BILLY RAY EUBANKS AND BONNIE JEAN EUBANKS
DATED DECEMBER 17, 1996, FOR PROVISION OF TREATED WATER SERVICE
OUTSIDE THE CITY LIMITS FOR A TOTAL OF 6.0 ECUS TO 1 TOBY LANE AND
PROVIDING DETAILS IN CONNECTION THEREWITH
Councilman Johnson moved to adopt Ordinance #29, Series of 2008, on first reading;
seconded by Councilman Skadron. Rol] call vote; Councilmembers Romero, yes;
Skadron, yes; Johnson, yes; Mayor Ireland, yes. Motion carried.
ORDINANCE #24, 2008 - 508 East Cooper Subdivision
Mayor Ireland opened the public hearing. There were no comments. Mayor Ireland
closed the public hearing.
Councilman Romero moved to continue Ordinance #24, Series of 2008 to September 22;
seconded by Councilman Skadron. All in favor, motion carved.
ORDINANCE #23, SERIES OF 2008 -Bonds Castle Creek Hydropower Project
Don Taylor, finance director, told Council this ordinance approves the issuance of $5.5
million of GO bonds which will be paid back from revenues out of the electric fund. This
bond issue will fund the hydropower project on Castle Creek which will have a pay back
of 27 yeazs. Steve Jeffers told Council the preliminary rates aze between 1.9% and 4.9%
and the average interest rate on the bonds will be 4.53%. Jeffers told Council Moody's
confirmed the city's AA-2 status which is one of the highest ratings. Aspen was the first
resort community to receive that high rating. Jeffers highlighted comments from
Moody's that support Aspen's bond rating which reflects the city's tourism-based
Re¢ular Meeting Aspen City Council September 8, 2008
economy that has demonstrated extraordinary growth in property values, affluent socio-
economic indicators, sound financial operations, healthy reserve levels and a low debt
burden.
Jeffers said Moody's noted Aspen's full valuation increased by 53% since the prior credit
review in January 2007 driven by reassessments, increasing land values, development of
hotels, seasonal housing and commercial spaces. Jeffers said Aspen has a trend of
maintaining healthy reserve levels of approximately 45% of general fund revenues which
chazacterizes Aspen's conservatively managed financial operations. The city's
conservative financial practices including use of majority of property taxes for capital
projects allows the city a measure of flexibility in the possibility of decline of sales tax
revenues.
Taylor told Council having a AA-2 rating enables the city to go to market without bond
insurance. Councilman Johnson noted the city benefits from the financial policies put
into place, which gives some of this financial flexibility. Councilman Johnson
acknowledged the success of these financial policies is due to the city manager, Steve
Barwick. Mayor Ireland asked about the reference to seasonal housing. Jeffers said
Moody's likes the diversity of residents, the diversity of the work force and of the
economy. The efforts of the city to retain work force housing in the community is a
positive aspect of making this a well rounded community.
Councilman Skadron asked, given the current economic situation, if it is possible that the
bond subscription may not be fulfilled. Jeffers said this is not likely and his company has
capital resources and could take down the unsold balances and work those out.
Mayor Ireland opened the public hearing. There were no comments. Mayor Ireland
closed the public hearing.
Phil Overeynder, water department, told Council this is a multi-year project with funds in
2007, 2008 and 2009. Overeynder said the budget started at $5.1 million in July 2007.
Another $400,000 is allocated to water supply and repair on a pipeline bringing the total
to $5.5 million, which is what the bond sales authorization was. Overyender said since
then there have been two modifications; the city expects to receive $400,000 from CORE
from the renewable energy mitigation program and second, $297,981 was appropriated in
the electric fund for distribution. This brings the budget to $6.198 million.
Overeynder presented a map of this project to show existing facilities bringing water, the
Thomas reservoir with water coming from Castle and Maroon creek, collected through a
penstock to this proposed hydroelectric plant. Overeynder said this will also have an
electric feed and a geoexchange to help with the heat. There will be a new hydroelectric
building under the Castle Creek bridge near the city shops. Overeynder said major
expenditures are the mile of steel line or the penstock and modifications to the reservoir
which total $1.8 million. The hydro building will cost about $360,000; the Castle Creek
supply line repair will cost about $600,000. The electro mechanical equipment inside the
facility is $1.25 million and $160,000 for valves.
Re¢ular MeetinH Aspen City Council September 8, 2008
Overeynder pointed out there is a lot of contingency in the budget, 15% and unlisted
items at 5%. Overeynder noted the expenditure budget to date was $38,000 in 2007 and
$2 million for 2008, of which only 5% has been spent to date. Overeynder showed a site
plan which was presented to the neighbors. There also will be a P&Z review as well as
the federal energy regulatory license approval process, which requires a public meeting.
Councilman Skadron asked if the building matches the dimensions shown to the public
before the vote. John Hines, water department, told Council the ballot question was to
allow use of open space to build this building; after voter approval, the building was
designed to fit within the space approved by the voters. Overeynder said the exact
dimensions of the building were not known until the city picked the equipment to be
housed in the building. The city picked smaller equipment than anticipated so the
building was trimmed down.
Councilman Skadron moved to adopt Ordinance #23, Series of 2008, on second reading;
seconded by Councilman Romero. Roll call vote; Councilmembers Johnson, yes;
Skadron, yes; Romero, yes; Mayor Ireland, yes. Motion tamed.
Councilman Johnson moved to continue the regular meeting to September 9, 2008;
seconded by Councilman Skadron. All in favor, motion carried. Council left the meeting
at 6:30 p.m.