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HomeMy WebLinkAboutminutes.council.20110228 Aspen City Council Regular Meeting February 28, 2011 APWA AWARDS 2 CITIZEN PARTICIPATION 2 COUNCILMEMBER COMMENTS 3 RESOLUTION #16, SERIES OF 2011 — Quizno's Pro - Bicycling Contract 4 RESOLUTON #17, SERIES OF 2011 — Contract with Aspen Skiing Company 6 CONSENT CALENDAR 6 • Resolution #18, 2011 — Contract Fire Alarm System 7 • Resolution #19, 2011 — Contract Fire Suppression System 7 • Resolution #20, 2011 — Ordinance Legal Notice Procedure 7 • Funding for Historic Marker at Cortina Lodge 7 • Minutes — February 14, 2011 7 Aspen Skiing Company Spring Jam Concert — Request for Noise Variance 7 BOARD REPORTS 7 ORDINANCE #10, SERIES OF 2011 — Anderson Subdivision 8 ORDINANCE #9, SERIES OF 2011— Boomerang (500 W. Hopkins) PUD Amendment 8 ORDINANCE #2, SERIES OF 2011 — Amending Municipal Code — Elections 9 ORDINANCE #15, SERIES OF 2010— Castle Creek Energy Hydropower Plant 9 ORDINANCE #3, SERIES OF 2011— Engineering Fees 9 ORDINANCE #4, SERIES OF 2011— Community Development Fees 9 ORDINANCE #5, SERIES OF 2011— BMC West Annexation 13 ORDINANCE #6, SERIES OF 2011— BMC Rezoning 13 ORDINANCE #8, SERIES OF 2011 - Adopting the International energy Code 14 1 Aspen City Council Regular Meeting February 28, 2011 Mayor Ireland called the meeting to order at 5:15 PM with Councilmembers Torre, Johnson and Skadron present. APWA AWARDS Hunt Walker, Town of Snowmass Village, representing the American Public Works Association, is presenting 3 awards from the Colorado Chapter of the APWA to Aspen in 3 different categories. The first category is public works administration and is for Aspen's urban runoff management plan. City Council presented this to April Barker, engineering department. Mayor Ireland noted Aspen's goal is to cut in half the debris going into the rivers and this urban runoff management plan is one way in which to do that. Walker presented the second award in the category of solid waste management to Aspen's Rio Grande recycle center. The third award is for the city's construction mitigation plan. CITIZEN PARTICIPATION 1. Matt Rice, American Rivers, told Council American Rivers is a national river conservation organization with 3000 members and supporters in the state of Colorado. Rice said American Rivers has been involved in hydropower relicensing before the Federal Energy Regulatory Commission and has worked with municipalities and utilities before FERC. American Rivers has formed coalitions with groups around the country concerned about hydropower and its impact on people and wildlife. Rivers said the Castle Creek project is not a small conduit exemption project. Rice told Council American Rivers is supportive of conduit exemption projects; however, Castle Creek is not a small conduit exemption project. Rice said they are concerned about this as it could open up a precedent that could damage streams throughout Colorado and elsewhere and gives hydropower developers a model to create infrastructure and then say hydropower is an afterthought in order to avoid public review. Conduit exemptions are issued in perpetuity with no other opportunities for the public to weigh in. Rice said because of the precedent, American Rivers will use all means necessary to stop the small conduit exemption. Rice said they do work with hydropower developers to develop responsible hydropower and will work with the city to come up with a project that works and protects the environmental and allows for public participation. Rice told Council there is a small hydropower, less than 5 megawatt exemption, which exempt the licensee forever, and the conventional licensing process. Mayor Ireland noted there is an ordinance on the agenda about the Castle Creek hydropower project; this ordinance will be continued to July 11 in order to allow comment and input from the neighbors. Rice reiterated American Rivers is opposed to the proposal as a draft application for small conduit application. John Worcester, city attorney, pointed out this issue is on the agenda for a public hearing so that everyone can debate the issue. 2 Aspen City Council Regular Meeting February 28, 2011 2. Margaret Crowdis, St. Louis, told Council she is very concerned about the public safety in Aspen. The snow on sidewalks is dangerous; the streets have not be sanded or plowed. Large ponds have formed at some intersections, making it difficult to get to the sidewalks. There is a large pond out on Cemetery Lane. Ms. Crowdis said pedestrian crossing signals are needed. 3. Andrew Kole noted the contract on the agenda with the Ski Company to manage the bike race is $30,000 and asked why ACRA and the city's special event department cannot handle the event. Kole asked if the city talked to other vendors before hiring the Ski Company. Kole asked what the plans are for the sponsorship program. 4. Emzy Veazy said citizens complain to him that the sidewalks and streets are not being taken care of and are dangerous. Veazy said there was an expose by Westword about Quizno's and the default of their franchisees and the reasons for it. Veazy said the grapevine can affect things likes this and there may be a PR problem. COUNCILMEMBER COMMENTS 1. Councilman Torre commended the Wheeler Opera House for their programming. They are bringing back the singer /songwriter festival at the end of March. 2. Councilman Torre announced that the Wheeler is screening "Bag It" next Monday March 7` Councilman Torre said he will be there to talk about plastic bags. 3. Councilman Johnson thanked all the applicants who applied for the Council vacancy. It is great community members offer to serve. 4. Councilman Johnson noted the Aspen High School boys' basketball team is in the state tournament. 5. Councilman Skadron brought up a letter the city received from Jim Markalunas regarding the safety of the Mill and Main intersection, suggesting the city consider separate walk cycles at that intersection. Randy Ready, assistant city manager, told Council the city and CDOT have looked at that; CDOT recommended against because of the traffic delays. Ready said he would ask CDOT to re- examine the traffic counts. Council agreed to have CDOT look at it. Councilman Torre asked what is happening with pedestrian safety improvements on Main street/highway 82. Steve Barwick, city manager, told Council the improvements at 8th street are going in this spring as well as the temporary shelters at 8 Mayor Ireland said he would like to see pedestrian safety funding increased. 6. Mayor Ireland requested the contract with Quizno's and with the Aspen Skiing Company be removed from the consent calendar. 3 Aspen City Council Regular Meeting February 28, 2011 7. Mayor Ireland noted last Saturday was the Hike for Hope at Buttermilk, which was a great event. 8. Mayor Ireland said the Aspen High School boys' basketball team is still in the state tournament. Mayor Ireland told Council he invited the women's ski team, who won the state championship, and the girls' volleyball team who were honored as being all academic, to be honored at Council. 9. Mayor Ireland announced Council will vote on a replacement for the vacant seat on Council after the March 1 work session. John Worcester, city attorney, reminded Council this is not exempt from the sunshine law; it is not a personnel matter. 10. Mayor Ireland said the census data is in and it shows that Aspen continues the trend of disappearing residential neighborhoods. Mayor Ireland said Aspen's best future is as a sustainable resort. The city needs a work force and housing cannot be built for everyone. Money will need to be put into transportation systems. RESOLUTION #16, SERIES OF 2011 Quizno's Pro - Bicycling Contract Nancy Lesley, special events, told Council the pro - bicycling race is coming to Aspen on August 24 The racers will come down Independence Pass and the in -town route is being worked out. This contract is between Classic Bicycle Racing LLC and the city to host the 125 riders and all the support staff and race officials. This includes hotels, meal, finish line, safety and city personnel. Councilman Skadron asked the cost to the city for services, like police, parking, and fee waivers. Ms. Lesley said that has not been finalized until the in -town route is finalized. Steve Barwick, city manager, said staff will be bringing Council a detailed budget in the next month. Some of these costs will be absorbed in the city's operating budget. Councilman Skadron asked where the funds for the approximate cost of $190,000 are coming from. Barwick said $50,000 is coming from ACRA's destination marketing budget. Councilman Skadron asked the city's confidence that the organizing committee can raise money to fund the difference. Lesley said Aspen has a history of being a great fund raiser. The city has to wait until the organizers settle on their sponsorships before the city can determine what types of things can be offered for fund raising. Deric Gunshor, Aspen Ski Company, said some host cities turn a profit on events like this after several years. Gunshor said there is also an opportunity for in -kind donations; the lodging community has stepped up to provide 700 room nights. Councilman Skadron asked about merchandising and are officially licensed products sold by the contractee or can local shops benefit from selling that merchandize. Gunshor said it will be a combination of Classic Bike 4 Aspen City Council Regular Meeting February 28, 2011 Racing LLC selling their merchandise. Aspen has the right to brand merchandise with the official logo and add Aspen. Councilman Skadron asked who has the rights to sell merchandise within the expo. Gunshor said CBR has that right. Councilman Skadron stated he wants the benefits to go to Aspen's retailers, which is why the city is spending money on this event. Gunshor stated the retailers in town will be given the opportunity to sell official merchandise for this race. John Worcester, city attorney, said CBR is claiming their marks are their property and they have a right to license them, which they will do to host cities. Aspen will split the profits 75/25 with CBR. Councilman Johnson said this event will become something in the long term and in the first year the local retailers will probably limit their risk. Councilman Skadron asked about the TV contract. Ms. Lesley said there will be 2 hours of live television. Councilman Skadron said Council supported this event on the premise there will be great international exposure that exceeds Aspen's investment. Worcester pointed out CBR controls the TV rights, distribution and marketing. Councilman Johnson asked if $190,000 is the city's absolute downside. Ms. Lesley said it is difficult to judge that because the city departments have not submitted their proposed costs. Barwick said the proposed route appears to have less impact on the city and to be easier to administer. Barwick said he feels the $190,000 is a good budget without big pieces missing. Councilman Johnson asked if the local restaurants will be contacted to help with the meals commitment. Ms. Lesley said local restaurants will be contacted. Councilman Johnson asked what the county's involvement is. Ms. Lesley said she has been working with county staff. Gunshor noted before Aspen submitted a bid to be a host city, they went to the County Commissioners who supported the city going out for a bid. Councilman Johnson said for him, this event is an investment in the future. Councilman Johnson said the city has limited their downside as best they can. Councilman Torre asked about the city's ability to have sponsors and signs; are there constraints on the city's ability to bring in sponsors. Ms. Lesley said there are some constraints but the city is looking at sponsorships that include experiences, like riding in the car from Gunnison to Aspen. Gunshor said there are banners rights in the finish area and tent space in the expo. Councilman Torre asked if the $30,000 for the Ski Company contract is part of the $190,000. Gunshor answered that it is. Mayor Ireland said he hears a lot of desire from community members for the bike race to happen and that they be allowed to volunteer and/or participate. Mayor Ireland suggested a community event this spring around planning for the bike race. Mayor Ireland said the $190,000 is a long term investment and there is the ability to offset some of the costs with donations and sponsorships. Mayor Ireland said Aspen needs to sustain its tourist economy by special events and by projecting a place where people want to come and visit. Mayor Ireland noted Aspen has the infrastructure to support cycling events. Mayor Ireland said this event will not pay for itself in the first year. Mayor Ireland noted that other cycling events are being scheduled around this pro -race. 5 Aspen City Council Regular Meeting February 28, 2011 Councilman Skadron noted that many events have "Aspen" in their name and this is named Quizno's and it may or may not return to Aspen in 2012. Councilman Skadron said he will support this as it is scheduled in a slow time in Aspen's economy and is persuaded by the response of the lodging community. Councilman Johnson moved to approve Resolution #16, Series of 2011; seconded by Councilman Torre. All in favor, motion carried. RESOLUTON #17, SERIES OF 2011– Contract with Aspen Skiing Company Councilman Johnson recused himself for a conflict of interest. Nancy Lesley, special events, told Council this agreement with the Aspen Skiing Company is to put on the Quizno's pro - challenge bike race. The Ski Company was contacted because of their experience in producing live, televised athletic events. Councilman Skadron asked at what point an event becomes larger than the ability of the city's special event department to manage it. Ms. Lesley told Council the last 3 months, she and a Ski Company employee have been working on this event almost full time. They have divided the responsibilities and it is not a one person event job. Councilman Skadron asked if it is a volume or technical issue. Ms. Lesley said it is both. Councilman Torre said he was surprised the city was asked to pay for the Ski Company's partnership in this event. Councilman Torre said there is no flow chart to show who is responsible for failure to perform or where the revenue and expenses will be accounted for and who will be deciding those issues, or how the sponsorship will work. Councilman Torre said the city has a policy that any contract over $25,000 go through an RFP process and without that, he has not the benefit of more information that is received through the process. Mayor Ireland agreed his preference is to go through the RFP process; however, the city is getting the benefit. Mayor Ireland said the Ski Company has the local experience and contacts for a contract like this. Mayor Ireland pointed out the city will get 9 months of work for $30,000. Councilman Skadron agreed this contract will be a bargain at $30,000. Gunshor told Council staff has figured out the financial structure of organizing committee; how the finances will work between the city and Ski Company and a reconciliation process. Mayor Ireland noted the X —games are well run, complex events. Councilman Skadron moved to approve Resolution #17, Series of 2011; seconded by Mayor Ireland. Councilman Skadron and Mayor Ireland in favor; Councilman Torre opposed. Motion carried. CONSENT CALENDAR 6 Aspen City Council Regular Meeting February 28, 2011 Mayor Ireland moved to approve the consent calendar as amended: seconded by Councilman Torre. The consent calendar is: • Resolution #18, 2011 — Contract Fire Alarm System • Resolution #19, 2011 — Contract Fire Suppression System • Resolution #20, 2011 — Ordinance Legal Notice Procedure • Funding for Historic Marker at Cortina Lodge • Minutes — February 14, 2011 Councilman Johnson pointed out there will still be a notice printed in the newspaper detailing when public hearings will be on ordinances and how persons can obtain copies if they do not have access to a computer. All in favor, motion carried. • Aspen Skiing Company Spring Jam Concert — Request for Noise Variance Councilman Johnson recused himself due to a conflict of interest. Councilman Torre asked about the noise variance for Spring Jam until 11 PM and what time will the band stop laying. Deric Gunshor, Aspen Skiing Company, said the band will stop at 10:30 PM. Councilman Torre asked if there are any issues with the Independence Square Hotel. Gunshor said the Ski Company works well with them and has worked with other merchants to minimize the impacts to the businesses. Mayor Ireland moved to approve the noise variance for the Aspen Skiing Company Spring jam concert; seconded by Councilman Skadron. All in favor, motion carried. BOARD REPORTS Councilman Skadron reported at the RFTA board meeting, the board discussed an emergency evacuation plan and how RFTA buses might be used. Councilman Skadron said he voted against another bridge over the Roaring Fork River to a subdivision onto the Rio Grande trail. Councilman Skadron said he felt this would be further encroachment into an environmentally sensitive area and the benefits flow to the residents of the development and not to the community. 7 Aspen City Council Regular Meeting February 28, 2011 ORDINANCE #10, SERIES OF 2011— Anderson Subdivision Councilman Torre moved to read ordinance #10, Series of 2011; seconded by Mayor Ireland. All in favor, motion carried. ORDINANCE NO. 10 (SERIES OF 2011) AN ORDINANCE OF THE CITY OF ASPEN CITY COUNCIL APPROVING WITH CONDITIONS, THE SECOND AMENDED PLAT — ANDERSON SUBDIVISION, LOT 1 AND 2, CITY OF ASPEN, PITKIN COUNTY, COLORADO Mayor Ireland moved to adopt ordinance #10, Series of 2011, on first reading; seconded by Councilman Johnson. Roll call vote; Councilmembers Skadron, yes; Johnson, yes; Torre, yes; Mayor Ireland, yes. Motion carried. ORDINANCE #9, SERIES OF 2011— Boomerang (500 W. Hopkins) PUD Amendment Councilman Torre moved to read ordinance #9, Series of 2011; seconded by Councilman Johnson. All in favor, motion carried. ORDINANCE NO. 9 (SERIES OF 2011) AN ORDINANCE OF THE CITY OF ASPEN CITY COUNCIL APPROVING A PLANNED UNIT DEVELOPMENT - OTHER AMENDMENT, AMENDMENT TO THE OFFICIAL ZONE DISTRIC MAP, AND SUBDIVISION, WITH CONDITIONS, FOR THE DEVELOPMENT OF 46 AFFORDABLE HOUSING UNITS FOR THE PROPERTY LEGALLY DESCRIBED AS LOTS K, L, M, N, 0, P, Q, R AND S, BLOCK 31, ASPEN TOWNSITE AND COMMONLY KNOWN AS 500 W. HOPKINS AVE, CITY OF ASPEN, PITKIN COUNTY, COLORADO. Councilman Skadron asked how many parking spaces are required. Jennifer Phelan, community development department, told Council the code requires 1 space /unit and the proposal is 33 underground parking spaces and 13 spaces at grade. Mayor Ireland said the issue is whether this will generate 46 cars. Ms. Phelan said Council should take into account location of developments. Mayor Ireland said he would like to know if there are spaces on the streets available for the other cars as well as a mitigation plan for where these cars would go if there is no off -site parking available. Mayor Ireland said he would like to hear whether or not the building could be more variegated as it is a substantial structure in the neighborhood. Mayor Ireland noted the prior approval was for a lodge and he would like to know the impact of cars for 8 Aspen City Council Regular Meeting February 28, 2011 lodge uses. Councilman Johnson said he would like information on cars /type of unit, like studio, one - bedroom to see how that will factor into the equation. Steve Goldenberg asked if Council got the letters that P &Z received. Ms. Phelan said she told Goldenberg that this is a hearing before Council and a new record is being created. John Worcester, city attorney said if Goldenberg wants to submit letters, he may do so as a new record. Councilman Johnson moved to adopt Ordinance #9, Series of 2011, on first reading; seconded by Councilman Skadron. Roll Call vote; Councilmembers Johnson, yes; Torre, yes; Skadron, yes; Mayor Ireland, yes. Motion carried. ORDINANCE #2, SERIES OF 2011 — Amending Municipal Code — Elections Mayor Ireland moved to continue Ordinance #2, Series of 2011, to March 14` seconded by Councilman Torre. All in favor, motion carried. ORDINANCE #15, SERIES OF 2010 — Castle Creek Energy Hydropower Plant Mayor Ireland noted when Council conducted the site visit, the public was told there would be a chance for the neighborhood to participate in the mediation process. The city has not been able to organize a process the neighbors will agree to, so this will take time and that is why it is being continued to July. Mayor Ireland moved to continue Ordinance #15, Series of 2010, to July 11, 2011; seconded by Councilman Johnson. All in favor, motion carried. ORDINANCE #3, SERIES OF 2011— Engineering Fees ORDINANCE #4, SERIES OF 2011— Community Development Fees Mayor Ireland opened the public hearing. Chris Bendon, community development department, told Council the development fees have not been raised in almost 5 years and the overall system has not been looked at in over 15 years. Bendon said the current system provides a subsidy to development and this subsidy represents a challenge to the general fund. Bendon said the general fund also pays for police services, plowing, core public services and special projects. Bendon reminded Council changes were made to the community development department to respond to the economy; more than 1/3 of the community development staff were laid off. In the last 18 months, due to attrition, the 9 Aspen City Council Regular Meeting February 28, 2011 community development department is 14.5 FTEs, down from 28 FTE at the start of 2009. The engineering department cut their staff 40% in the same period. Bendon said staff agrees the changes were necessary. Bendon said cutting more staff would cost the city money in having to contract for services and to achieve the same level of service. Bendon told Council the construction world has changed. Community development is processing more, smaller permits, averaging $9,000 per project down from $35,000. Bendon noted in the long term, the subsidy for the community development department represents a threat to the general fund and Council does not want to be in the position where they cannot address special needs or requests because of the subsidy to community development. Bendon said staff struggles with accounting for revenue versus accounting for service levels. Projects pay for the service in the year in which the building permit is submitted; however, projects can take several years to complete and the expenditures to revenue look out of whack. Bendon said the code has become more complex, projects are measured to the 1110 of square foot when FAR is being measured. New requirements, like commercial design review, add time to the staff review; each planned unit development is unique and complex. The energy code, requiring more energy modeling, requires more time. Bendon reminded Council there are new programs, like storm water and making contractors stick to construction rules. There is a high standard in Aspen for regulating development and applicants expect a high level of service. Staff does not want to see a reduction in the care provided to development services. Bendon said some development services are legitimate community services and some services should be paid by the development with no help from the public. Bendon said in this proposal, some services remain free to an applicant, like historic designation; many services are at a reduced rate, food vending, temporary uses. In this proposal, projects of less than $50,000 remain partially subsidized; projects of less than $10,000 valuation will pay less under this proposal. Bendon said under this proposal many projects will pay the full cost. Bendon said this proposal represents a system where projects are subsidized about 15% and pay their full cost for the other 85 %. Bendon said staff heard a lot of comments on the review process; comments like the permit review process needs more predictability; comments on the time frame and parallel reviews. Bendon reminded Council the community development department is going through a re- engineering of the permit process. There is some concern from the public about review time backsliding. Bendon pointed out January and February are significantly up in number and valuation of permits. Bendon said staff heard comments that development services should be as low as possible to be a development incentive, "raising fees won't jump start the economy ". Bendon said there are comments that all fees put together are too high. Bendon said there are suggestions about performance bonuses or incentives and a return of fees for projects that are violation free. Bendon said staff heard lists of "need to" like explaining each 10 Aspen City Council Regular Meeting February 28, 2011 fee to architects so they may explain the fees to their clients. Bendon noted another comment was to make sure that the city is 100% covered if a permit never gets picked up. Bendon submitted to Council a letter from Peter Fornell who comments about process times; is pleased to see small projects may receive a flat fee. Fornell states saving time in the process is worth the money to make up for increases in fees. Fornell notes the department needs to be staffed to complete projects in a timely manner. Councilman Skadron said he would like to see a general level of fairness, one that returns an appropriate amount of revenue to the city and is not punitive to the development community. Mayor Ireland asked how Aspen's fees and subsidies compare to other similar jurisdictions. Bendon said they have looked at other jurisdictions and they are all over the spectrum, including waiving fees as an economic incentive. Johannah Richards, community development department, told Council staff looked at Vail's fees and they have an entirely different structure. Ms. Richards said Boulder subsidizes 20% of community development and engineering. Councilman Johnson said development should pay an appropriate amount. Aspen puts a lot of emphasis on a lot of different things and it should subsidize those different types of requests. Councilman Johnson said he is concerned policy is being set at a time when construction is at its lowest. Councilman Johnson agreed the staffing levels in engineering and community development are at bare bones; however, there may be opportunities for more sharing between staff. Councilman Johnson said he appreciates the example of different types of permits and permit fees and for two of the examples, commercial tenant finish and residential remodel, the fees are proposed to go up over 200 %. Councilman Johnson said the large project could bear higher fees better than small commercial or residential projects. Councilman Johnson agreed some engineering fees should be collected. Councilman Johnson said there may be an opportunity to phase in these increases. Steve Barwick, city manager, pointed out some fees for small projects are decreasing. Barwick said it is important to note the change in types of projects, they are smaller than they used to be; however, it still takes a lot of staff work to get through the permit process. Barwick agreed with a phase -in approach and to review and adjust the fees annually. Barwick said there may be segments of construction that Council wants to subsidize, small commercial or non - profit projects. Mayor Ireland said he agrees with the citizen comment about supporting jump starting the economy and the unused capacity in the construction industry. This needs to be weighed against the city's need to balance the budget. Mayor Ireland said even at the height of the construction boom, community development department is not a profit center. 'Mayor Ireland said the city cannot ask the community to subsidize 75% of development fees for a $5 million house. Mayor Ireland suggested an implementation deadline to give people time to undertake projects before economic changes. Mayor Ireland suggested an incentive system that rewards behavior that saves the city money as well as the contractor /applicant. Mayor Ireland said the city could have 11. Aspen City Council Regular Meeting February 28, 2011 education and outreach so that applicants who come in prepared would receive a discount or a rebate. Mayor Ireland said he does not want the city collecting a fee that costs almost as much to collect; there is a cost in processing any application. Mayor Ireland said he would like the city to have a system that better tracks staff hours. Mayor Ireland said he would like staff to review projects valued at $250,000 or under to make sure they are not being unduly burdened. Mayor Ireland agreed that fees should be reviewed annually. Mayor Ireland agreed that the subsidy should be reduced over a period of years. Bendon told Council the current fee structure is less than 50% of the actual costs. Bendon noted planning fees have always been charged on an hourly basis and the proposal is $315/hour directly billed to development that requires the service. This is up from $245/hour, which has been in effect for almost 5 years. Mayor Ireland said he would like to see the incentives and fees go into effect simultaneously. Councilman Johnson agreed these fees should be reviewed annually. Councilman Johnson suggested a pricing committee within the city to review the consistency and if all departments are looking at fees similarly. Bendon noted small projects take less time but it is not linear. Barwick summarized delay any increases until summer; bring an incentive program to Council; lower fee level increase so it all does not happen at once. Barwick asked Council to list any construction sector they may want to subsidize — affordable housing, historic preservation, non- profits. Councilman Johnson said he would like to know the percent of total fees to cost of project. Mayor Ireland opened the public hearing. Elizabeth Milias encouraged Council to look at the last 5 years since the fee increase. Ms. Milias told Council she got revenue collections and operating expenses for the building and community development departments from 2006 to 2010 and conducted a brief examination of the average permit cost, the actual income and surplus or short fall. Ms. Milias said over 5 years the permit fees have just covered the direct costs of the departments. Ms. Milias pointed out since 2006, the annual income from development fees has decreased 59% and annual operating expenses has decreased 11%. Ms. Milias said these departments need subsidy from the general fund is because of the cost of services, which has not been reduced proportionately to the demand for service. Ms. Milias said increased permit fees could inhibit development during a bad economy, and increased fees could create a windfall of revenue when the economy recovers and development may be subsidizing general operations. Ms. Milias said these departments ramped up in 2007 and 2008 to address increasing development activity and the operating expenses increased 56% between 2006 and 2008. Permit valuation in 2008 was $170 million and in 2010 it was $70 million. In 2008 there were 631 permit applications and in 2010 there were 622. Ms. Milias suggested costs should be reduced to 12 • Aspen City Council Regular Meeting February 28, 2011 address this rather than increasing costs to developers. Ms. Milias said she feels the increased permit fees will stifle the development business or serve as a springboard for profits to the general fund when the economy picks up. Ms. Milias encouraged annual review of fees. Ms. Milias noted overhead and expenses cannot go up when revenues go down. Barwick said there are other costs that include $250,000 for new computer software and expenses like planning for the AACP. Barwick noted revenues and expenses do not always occur in the same year. Mayor Ireland requested staff provide answers and backup material to the issues pointed out. Mayor Ireland closed the public hearing. Councilman Johnson said he feels the staff is at an appropriate level for this time. Mayor Ireland moved to continue Ordinances 3 and 4, Series of 2011, to March 14; seconded by Councilman Johnson. All in favor, motion carried. ORDINANCE #5, SERIES OF 2011— BMC West Annexation John Worcester, city attorney, told Council this is the last step in the annexation process to annex city -owned BMC west property into the city. Mayor Ireland opened the public hearing. There were no comments. Mayor Ireland closed the public hearing. Councilman Johnson moved to adopt Ordinance #5, Series of 2011, on second reading; seconded by Councilman Skadron. Roll call vote; Councilmembers Skadron, yes; Johnson, yes; Torre, yes; Mayor Ireland, yes. Motion carried. ORDINANCE #6, SERIES OF 2011— BMC Rezoning Chris Bendon, community development department, noted property annexed into the city needs to be zoned within 90 days. Staff recommends this property be zoned SCl/PUD. The PUD overlay will allow full review in front of Council. P &Z recommended this SCI /PUD zoning in a 5 to 0 vote. Mayor Ireland opened the public hearing. There were no comments. Mayor Ireland closed the public hearing. Councilman Johnson moved to adopt Ordinance #6, Series of 2011, on second reading; seconded by Mayor Ireland. Roll call vote; Councilmembers Johnson, yes; Torre, yes; Skadron, yes; Mayor Ireland, yes. Motion carried. 13 Aspen City Council Regular Meeting February 28, 2011 ORDINANCE #8, SERIES OF 2011 - Adopting the International energy Code Stephen Kanipe, building department, told Council Aspen was one of the first adopters of the energy code and staff now finds they need to make some amendments. Kanipe said the code does not contain clear directions for inspections required for compliance with the energy code and this amendment adds to the renewable energy mitigation program on both the residential and commercial sides. Kanipe said the on -site solar credits have been adjusted to make them more equitable and to simplify and clarify the calculations. Councilman Torre moved to adopted Ordinance #8, Series of 2011, on second reading; seconded by Mayor Ireland. Mayor Ireland opened the public hearing. Paul Spencer, Clean Energy Collective, told Council his organization does off -site mitigation. Spencer congratulated the city for looking at off -site locations and for providing greater possibilities to the public in order to own renewable energy offsets. Spencer said this amendment reads, "The building official and CORE may approve off -site locations within the city of Aspen ". Spencer said this is subjective, with no guidance or actions. Spencer suggested language, "off site renewable energy whose beneficial use serves the project can be used as calculated in section ..." in order to qualify the energy use and to make it more concrete. Kanipe told Council the city's utility make up is different than Holy Cross. Kanipe discussed any off -site mitigation to be limited to within the city limits. Spencer agreed and said that is why "beneficial use" is part of his recommendation and it should be tied to a local utility whether it is city electric or Holy Cross. Nathan Ratledge, CORE, said keeping this within the city grid is significant for the city's goals for the canary initiative and renewable standards. Kanipe told Council this is a fee payment option to disperse energy use. Kanipe said the most effective way to do that is to pay a REMP fee to CORE; however, several property owners have come to the city for offsite renewable, which is available in Pitkin County and which has only been used 4 times. Kanipe told Council he is comfortable with the way the ordinance is written. Mayor Ireland suggested adopting this as written and staff can have discussions about any possible amendments. Mayor Ireland closed the public hearing. Roll call vote; Councilmembers Skadron, yes; Johnson, yes; Torre, yes; Mayor Ireland, yes. Motion carried. Councilman Johnson moved to adjourn at 9:45 PM; seconded by Councilman Torre. All in favor, motion carried. 14 As , en 0 Council Re ular Meeti i Febru : r 28 2011 K. yn Koch, City Clerk 15