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HomeMy WebLinkAboutminutes.council.20111114 Regular Meeting Aspen City Council November 14, 2011 PROCLAMATION — 20 years of GIS 2 CITIZEN COMMENTS 2 COUNCILMEMBER COMMENTS 3 CONSENT CALENDAR 5 • Resolution #75, 2011 Adoption of Revised Financial Policies 5 • Board Appointments 5 • Minutes — October 11, 2011 5 FIRST READING OF ORDINANCES 5 • Ordinance #32, 2011— 2011 Supplemental Budget Appropriation 5 • Ordinance #33, 2011— 2012 Fees 5 • Ordinance #34, 2011 - Code Amendment — Vacation Rentals 5 • Ordinance #35, 2011— Water rate Adjustment 5 • Ordinance #36, 2011- Amending Electric Large Commercial Rates 5 RESOLUTION #76, SERIES OF 2011 - Adoption of the 2012 Budget 9 RESOLUTION #77, SERIES OF 2011— Adopting 2012 Mil Levy 9 ORDINANCE #31, SERIES OF 2011 — Adoption of 2009 Building Code 10 ORDINANCE #28, SERIES OF 2011— Lift One Lodge Final PUD 10 1 Regular Meeting Aspen City Council November 14, 2011 Mayor Ireland called the meeting to order at 5:05 PM with Councilmembers Johnson, Skadron, Frisch and Torre present. PROCLAMATION — 20 years of GIS Mayor Ireland and Council proclaimed Thursday, November 17 as GIS day in celebration of 20 years of geographic information systems in Aspen. Mary Lackner, GIS, invited everyone to an open house Thursday, November 17 at the Rio Grande meeting room 10 AM to 2 PM to see the evolution of GIS maps over the past twenty years. CITIZEN COMMENTS 1. Ward Hauenstein requested funding from Council for an independent counsel to review the issues surrounding the CORA requests made to the election commission for the 2011 ballots. Hauenstein told Council at the November 1 Election Commission, the members voted 2 to 1 to seek independent counsel to answer three or four questions. Hauenstein said he was told by a law firm that he would have to give a personal guarantee in order to retain counsel. Councilman Torre said he went to the last Election Commission meeting and those questions were given to John Worcester, city attorney, to answer. Worcester told Council he should have answers completed this week. Councilman Torre said he will consider this request for funding; however, he would like to wait until Worcester's answers. Councilman Frisch agreed. Worcester told Council two CORA requests were filed; it is the city clerk's duty to respond to those requests. Marilyn Marks filed a CORA request, withdrew that request and resubmitted it again today. The CORA requests all seek to look at the 2011 cast ballots. Councilman Frisch said he would like to review the bigger picture than just the CORA requests before the election commission and would like to have a work session with the election commission to do that. Councilman Torre reiterated he would like to hear Worcester's responses before deciding about funding outside counsel. Councilman Skadron thanked Hauenstein's work on the election commission. Councilman Skadron pointed out Council went through this two years ago and the Charter is clear that the election commission is advised by the city attorney's office. Councilman Skadron stated it would set a dangerous precedent to other commissions that may make similar demands. Councilman Skadron said he feels the election commission is the same as other city boards. Mayor Ireland said the majority of Council wants to wait and hear Worcester's opinions to Hauenstein's questions. 2. Patrick Keelty, president Aspen Junior Hockey, thanked Council for the ice time for the Fall face off. Keelty gave some economic data on the impact of Fall face off which has 82 teams over 3 weekends, 12 divisions from 3 states in Aspen to play in the hockey tournament. Keelty estimated 4300 people came to Aspen for these tournaments. Keelty said without the city's support, this event could not be pulled off. Mayor Ireland said he appreciates the dedication of people who put on these tournaments and who support the kids. Mayor Ireland noted kids team a lot from playing team sports. Councilman Johnson said Aspen Junior Hockey does make it affordable for families to have their kids play hockey. 2 Regular Meeting Aspen City Council November 14, 2011 3. Peter Fomell told Council his affordable units at 301 West Hyman are entering into the two week bidding period. There are open houses this Wednesday noon to 1:30 and 5:30 to 7 PM. Fomell thanked city staff who helped get a code amendment drafted and passed. There are eight units, all one - bedroom, category 2, and six of these will be available in the lottery. 4. Ruth Kruger asked why the P &Z appointments are not on the list of board appointments. The P &Z is crucial in redrafting the AAPC. Council has not made it their priority to focus on P &Z appointments. Ms. Kruger noted it is important to have strong boards and to get diversity in the membership. COUNCILMEMBER COMMENTS 1. Councilman Skadron congratulated Aspen Community Theatre and their recent performances of Evita. Councilman Skadron said he is wowed by the level of talent in this community. 2. Councilman Skadron said the Fall Face off hockey tournament was a big success and is remindful of the power of positive decisions. The ARC is one of those and has become a community gathering place. 3. Councilman Skadron announced this Wednesday is the Aspen Business Expo at the St. Regis and is also a focus group on getting 20 to 40 year olds involved in civic affairs at City Hall at noon. 4. Councilman Skadron said he is excited about early opening at Snowmass this Saturday. 5. Councilman Torre noted it is "MOvember" and moustaches are to raise awareness of men's health issues. Councilman Torre said there are two events November 27 at the Aspen Club and a gala at Belly Up December 3` 6. Councilman Torre thanked the streets department for the crossing lights at 8th street and highway 82. Councilman Torre said he does not think that is enough, there should be signs screaming "pedestrian priority ". Councilman Torre said the signs are OK for now but he would like to city to do more. 7. Councilman Torre noted there were articles in the newspaper about the city's appeal to the Supreme Court regarding ballot review and he has written an explanation why he supports the request to the Supreme Court to review the case. 8. Councilman Johnson thanked Aspen Educational Foundation for a great event last week to raise money for the Aspen school district. 9. Councilman Johnson said the Aspen High skiers' football team beat Carbondale and went to the playoffs and lost to Easton. The Skiers' season is done and it was a great season. 10. Councilman Frisch announced the Red Brick is getting two new high efficiency boilers. The Frontiers housing group has wrapped up with educational session with homeowners on their 3 Regular Meeting Aspen City Council November 14, 2011 responsibilities as homeowners. The Frontiers group is planning discussions on banking, obtaining mortgages, funding capital reserves and perhaps insurance for 2012. 11. Councilman Frisch noted there was a fund raiser recently at the Wheeler for Wiley Maple to help with his ski team expenses. Councilman Frisch gave hats off to the organizers and to the Wheeler staff. 12. Councilman Frisch also commended the Aspen Education Foundation and the money they raise for the Aspen school system. 13. Mayor Ireland said November 11` was Veteran's Day and it is important to honor those who serve our country as that has not always been the case. 14. Mayor Ireland said he has supported appointments to city boards and commissions who do not agree with his position as he has a responsibility to pick the most qualified applicants. 15. Mayor Ireland agreed the election commission should be an independent not separate branch of city government. Mayor Ireland noted the Council does not tell the election commission how to decide things. Mayor Ireland said who gets to look at ballots should be up to the state legislature, which is the appropriate place for that decision. 16. Mayor Ireland concurred about safety at 8 street and there are more steps that can to taken; it is a critical intersection for conflict with pedestrians and vehicles. 17. Dave Hornbacher introduced Mike McDill, deputy director of utilities, who will oversee their engineering, raw water, water treatment and distribution. 18. Chris Bendon, community development department, told Council his staff met with the applicants for the Little Annie's /Benton building and have agreed to stay the proceedings on the appeal and call up of HPC's decision. The applicant will be applying for Aspen Modern and in concept will preserve the Little Annie building essentially as is and rehabilitate the Benton building to its original design and apply for development on the vacant land. HPC has scheduled a special meeting for December 7` 20. Councilman Johnson reported he attended the NW Colorado Council of Governments meeting last month. This group works to get best practices in a number of areas and is starting a new area, economic development district which will foster regional cooperation and developing programs on economic development. 21. Councilman Torre said there are more Sister City exchange programs, recently students from Bariloche and Chamonix and next week there will be delegates from Shimakappu, Japan, and Abetone, Italy, visiting. 22. Councilman Skadron said the RFTA board meeting had an update on the BRT program which is on target for a fall 2012 opening; RFTA is looking at converting buses to CNG, there was also an update on strategies for property acquisition as part of the BRT. 23. Councilman Skadron told Council he attended the Colorado Association of Ski Towns meeting in Park City, Utah. There were 6 or 7 presentations, many of them referring to work Aspen has done on similar issues. Councilman Skadron said they heard from the Park City 4 Regular Meeting Aspen City Council November 14, 2011 Chamber about working with 3 independent ski areas. Councilman Skadron noted Aspen has 4 areas owned by one company and it reminds one how important it is to maintain a good relationship between the city and the Aspen Skiing Company. CONSENT CALENDAR Councilman Torre moved to approve the consent calendar; seconded by Councilman Frisch. The consent calendar is: • Resolution #75, 2011 Adoption of Revised Financial Policies • Board Appointments • Minutes — October 11, 2011 Councilman Johnson asked if there are other HPC applicants. Ms. Koch said there are openings and applicants and Council will be interviewing these on November 29` All in favor, motion carried. FIRST READING OF ORDINANCES • Ordinance #32, 2011 — 2011 Supplemental Budget Appropriation • Ordinance #33, 2011 — 2012 Fees • Ordinance #34, 2011 - Code Amendment — Vacation Rentals • Ordinance #35, 2011 — Water rate Adjustment • Ordinance #36, 2011 - Amending Electric Large Commercial Rates Councilman Torre moved to read ordinance #32, 33, 34, 35, and 36, Series of 2011; seconded by Councilman Johnson. All in favor, motion carried. ORDINANCE NO. 32 (Series of 2011) AN ORDINANCE APPROPRIATING AN INCREASE IN THE ASSET MANAGEMENT PLAN FUND EXPENDITURES OF $187,900, AN INCREASE IN THE GENERAL FUND OF $278,280, AN INCREASE IN THE WHEELER OPERA HOUSE FUND OF $665,000, AN INCREASE IN THE CITY TOURISM PROMOTION FUND OF $22,320, AN INCREASE IN THE TRANSPORTATION FUND OF $67,130, AN INCREASE IN THE HOUSING DEVELOPMENT FUND OF $115,000, AN INCREASE IN THE KIDS FIRST FUND OF $108,600, A DECREASE IN THE STORMWATER FUND OF $500,000, AN INCREASE IN 5 Regular Meeting Aspen City Council November 14, 2011 THE PARKS AND OPEN SPACE CAPITAL FUND OF $6,710, A DECREASE IN THE ELECTRIC UTILITY FUND OF $200,000, AN INCREASE IN THE PARKING FUND OF $100,000, AN INCREASE IN THE TRUSCOTT HOUSING FUND OF $15,000, AN INCREASE IN THE MAROLT HOUSING FUND OF $50,000, AND AN INCREASE IN THE HOUSING ADMINASTRITION FUND OF $26,800. ORDINANCE NO. 33 Series of 2011 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, AMENDING THE MUNICIPAL CODE OF THE CITY OF ASPEN TO INCREASE CERTAIN MUNICIPAL FEES ORDINANCE NO. 34 SERIES OF 2011 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, AMENDING SECTION 26.104.100, DEFINITIONS, VARIOUS SECTIONS OF CHAPTER 26.710, ZONE DISTRICTS, AND ADDING A NEW SECTION 26.575.220, VACATION RENTALS, TO THE MUNICIPAL CODE OF THE CITY OF ASPEN, COLORADO ORDINANCE NO 35 Series of 2011 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, TO AMEND CHAPTER 25.08, "WATER SERVICE— GENERAL PROVISIONS" AND CHAPTER 25.16, "WATER RATES AND CHARGES ", OF THE MUNICIPAL CODE OF THE CITY OF ASPEN ORDINANCE NO 36 Series of 2011 AN ORDINANCE OF THE CITY CIOUNCIL OF THE CITY OF ASPEN, COLORADO, TO AMEND SECTION 25.04.040, ELECTRIC SERVICE RATES, OF THE MUNICIPAL CODE. Ordinance #32 Mayor Ireland asked if any of the Burlingame expenses are recoverable. Scott Miller, asset management, said not until the project is complete and the contract is closed out will that be known. Councilman Johnson noted the Marolt housing funds show better news. Don Taylor, finance director, said there is better occupancy. Councilman Frisch asked if the utilities are included. Taylor said it is seasonal housing with a short rental period so the utilities are included. Johnny Mickles, Marolt Housing, told Council the utilities work off a central boiler 6 Regular Meeting Aspen City Council November 14, 2011 system. Mayor Ireland said there may be technology in the future to allow the city to capture utility expenses for units. Councilman Frisch noted the Wheeler remodel is $665,000 over budget, and is this due to finding conditions that were not expected. Miller said a large part of the $665,000 was due to conditions that were discovered during demolition. The contractors had to remove a mechanical system to see other mechanical systems. This budget increased was discussed with Council at a work session. Councilman Skadron moved to adopt Ordinance #32, Series of 2011, on first reading; seconded by Councilman Frisch. Roll call vote; Torre, yes; Frisch, yes; Johnson, yes; Skadron, yes; Mayor Ireland, yes. Motion carried. Ordinance #33 Ashley Ernemann, finance department, noted these fees were discussed during the budget hearings and the budget is predicated on these fees. The city had a pricing committee that reviewed all city fees and these are those recommendations. Councilman Johnson moved to adopt Ordinance #33, Series of 2011, on first reading; seconded by Councilman Torre. Roll call vote; Frisch, yes; Torre, yes; Skadron, yes; Johnson, yes; Mayor Ireland, yes. Motion carried. ORDINANCE #34 Sara Adams, community development department, told Council this code amendment will allow vacation rentals throughout Aspen through a permit process. Ms. Adams pointed out the code allows short term rentals in the lodge district and two times a year in other zone districts. Ms. Adams said she looked at VRBO.com, vacation rentals by owner, to see where rental properties are located. There were over 300 properties about half of them located outside the L, lodge district, and are not in compliance with the zoning code. Ms. Adams said without review standards and permitting process, the only recourse staff has is to shut down properties that have been rented more than twice a year. Ms. Adams told Council staff had to shut down a rental already booked and the visitors could not come and stay in that property. Ms. Adams said rental properties do not have business licenses and may not be submitting sales tax. Ms. Adams said if property owners do apply for a business license and if they are renting more than twice a year, the community development department cannot sign off on the business license application. Ms. Adams reminded Council this was discussed at a work session in 2010 and in June 2011 to review options to resolve the issue and Council directed staff to develop a code amendment. Ms. Adams told Council staff met with community groups and members to get feedback, researched other communities, and CAST. The proposed code amendment will allow vacation rentals in all zone districts without limitation with a revocable permit process to be issued by community development department. This permit will require a series of review standards to be met to help mitigate on the neighborhood and neighborhood character. Ms. Adams said there is support for this amendment from the lodging community it order to have everyone play by the same rules. There are concerns from neighborhood about the impacts; there are concerns that the process is overly- bureaucratic. P &Z struggled with this proposal and is recommending that the current regulations not be changed and that the regulations be enforced. 7 Regular Meeting Aspen City Council November 14, 2011 Councilman Johnson asked for more community outreach to make sure it is understood that two rentals per year will be enforced. Councilman Johnson said he noted over 300 rentals on line, which number will probably continue to grow. Councilman Frisch said the sentiment is town needs more people visiting and people who use VRBO are diverse visitors. Councilman Frisch said staff has told Council to wait until the AACP is adopted before addressing any code amendments. Also one of Council's goals is to have a lodging study done, which will look at all sectors of rentals. Councilman Frisch said he would prefer not to make any amendments until those other things take place; the timing is wrong for this amendment. Bendon agreed there is a lot in the AACP and Council's goals about lodging and those will take time to implement. This amendment addresses an operational issue and has become a bigger issue because of the lodging tax. Bendon said staff would like a system where they can understand the rules and easily explain those rules. Bendon said this is not a revenue issue for the city. Councilman Frisch said some property owners rent because they have to. These rentals keep a healthy real estate market. Bendon said there has to be some change in the code; staying with the current situation will not solve the issue and will retain the operational conundrum. Don Taylor, finance director, said staff hears about fairness from the business community Councilman Torre said for second reading he would like to know what other communities do about this issue. Councilman Torre said he would like the process for a homeowner to be compliant looks like. Mayor Ireland said he does not understand why renters do not get notices. Mayor Ireland noted this does not apply to affordable housing units as HOA agreements do not allow multiple rentals. Mayor Ireland agreed with the notion that neighborhoods have a right to say about uses in their neighborhood. Mayor Ireland pointed out the ordinance does not require housing mitigation or impact fees or storm water runoff fees. Councilman Frisch asked the cost to implement this program. Bendon said that will be discussed with Council, if a fee is to be charged and what it should be. Councilman Torre moved to adopt Ordinance #34, Series of 2011, on first reading; seconded by Councilman Johnson. Roll call vote; Skadron, yes; Frisch, no; Johnson, yes; Torre, yes; Mayor Ireland, yes. Motion carried. Ordinance #35 Lee Ledesma, water department, noted this ordinance implements a 5% rate increase on water rates. The water rate demand charge has not been increased since 1985. The water variables were increased in April 2006. Ms. Ledesma said these rates need to be increased in order to maintain the overall health of the water fund. There have been increased operating costs and capital costs. Ms. Ledesma told Council staff is planning to do a rate study for the water fund in 2012 to cover all aspects of water rates. Ms. Ledesma noted the water rates still reward low users. Councilman Frisch asked why the rates have not been increased every or every other year. Ms. Ledesma said in 2006 the rates were being increased every 20 years; staff has become more aware the rates need to be reviewed and increased on a regular basis. Mayor Ireland moved to adopt Ordinance #35, Series of 2011, on first reading; seconded by Councilman Torre. Roll call vote; Johnson, yes; Skadron, yes; Torre, yes; Frisch, yes; Mayor Ireland, yes. Motion carried. • 8 Regular Meeting Aspen City Council November 14, 2011 Ordinance #36 Lee Ledesma, water department, reminded Council they recently adopted increased electric rates and recommended that large commercial users have four -tier increases. At second reading, that section reverted to first reading. This cleans up what Council intended. Mayor Ireland moved to adopt Ordinance #36, Series of 2011, on first reading; seconded by Councilman Torre. Roll call vote; Frisch, yes; Torre, yes; Skadron, yes; Johnson, yes; Mayor Ireland, yes. Motion carried. RESOLUTION #76, SERIES OF 2011 - Adoption of the 2012 Budget Ashley Ememann, finance department, reminded Council they had three work sessions on the 2012 budget. Ms. Ernemann noted the budget is going up 12 %; however, the majority of that is Burlingame phase II and without that cost, the budget is going up 2.5 %. Ms. Ernemann presented the operating budget by fund; the general fund and asset management fund are about 40% of the total operating budget, which is going up 5% including the supplemental from 2011. The capital budget is broken out by type and housing is 45% of capital expenditures, almost all of which is Burlingame phase II; the utility fund includes the Castle Creek project. Ms. Ernemann noted the mil levy resolution is included; however, staff is recommending this be continued until November 28 so that the most updated valuation will be available. Councilman Skadron noted debt service is about 5.6% of revenues and 6.5% of the net appropriations. Councilman Skadron asked if this ratio is suitable. Don Taylor, finance department, told Council the industry standard is a maximum ratio is 15 %. Councilman Skadron asked if staff looks at how debt service is evaluated. Taylor said the important thing is debt service compared to revenues and the city is below that number. Councilman Frisch asked how much of the $9.1 million for Burlingame is dependent on the demand study for units. Scott Miller, asset management, told Council $7.5 million of that figure is infrastructure. Miller said that number represents the infrastructure costs for half of phase 11, which would allow up to 82 units before more infrastructure is required. Miller said Council and staff have agreed on a minimum of 60 pre - qualified buyers before starting the project. Mayor Ireland moved to adopt Resolution #76, Series of 2011, adopting the 2012 budget; seconded by Councilman Johnson. Mayor Ireland opened the public hearing. There were no comments. Mayor Ireland closed the public hearing. Councilman Torre asked if the budget has funds for recycling in the core. Ms. Ernemann said there is $40,000 in 2012 and $40,000 in 2013 included in the budget for recycling in the core. All in favor, motion carried. RESOLUTION #77, SERIES OF 2011 — Adopting 2012 Mil Levy 9 Regular Meeting Aspen City Council November 14, 2011 Mayor Ireland pointed out that the assessor has commented that property owners are protesting their property values and taking this to a Board of Appeals to lower the value. If there is a significant number of those, Aspen's property tax collections could be hurt. Don Taylor, finance department, told Council he understand these can be recovered in the following year's tax collection in order to make the city whole and this is a farness question. Councilman Torre moved to continue Resolution #77, Series of 2011, Mil Levy, to November 28 seconded by Councilman Johnson Mayor Ireland opened the public hearing. There were no comments. Mayor Ireland closed the public hearing. Councilman Skadron asked about the philosophy of the mil levy and the decreased property values that the city should give relief by decreasing the property taxes. Taylor said the proposed mil levy is consistent with TABOR restrictions in the state constitution which provide property taxes cannot grow by any more than inflation and new construction. Taylor said there is a method to exempt that provision by going to an election. Aspen has chosen to keep property taxes subject to TABOR restrictions so when the assessed valuations go up, the city applies a temporary mil levy credit to lower the property taxes. All in favor, motion carried. ORDINANCE #31, SERIES OF 2011 — Adoption of 2009 Building Code Stephan Kanipe, building department, told Council dozens of entities in the construction industry looked through the international green construction code. There were 1800 pages of comments and the end result was a document that can be usable, adoptable and enforcement for green construction for commercial buildings. The code will require separate metering in multi - family residential and commercial buildings. Staff looked through the entire title 8 of the municipal code and to eliminate the antiquated references, which amendments will come back to Council. Kanipe told Council several projects, like the hospital expansion, St. Regis renovation, have been reviewed and are in compliance with the 2009 code. Kanipe said staff continues to work with the fire department to make sure these are consistent with the fire codes. Mayor Ireland opened the public hearing. There were no comments. Mayor Ireland closed the public hearing. Mayor Ireland moved to adopt Ordinance #31, Series of 2011, on second reading; seconded by Councilman Skadron. Roll call vote; Torre, yes; Frisch, yes; Skadron, yes; Johnson, yes; Mayor Ireland, yes. Motion carried. ORDINANCE #28, SERIES OF 2011 — Lift One Lodge Final PUD Councilman Johnson recused himself as he lives within 300 feet of the project. Chris Bendon, community development department, reminded Council this was continued from the last regular 10 Regular Meeting Aspen City Council November 14, 2011 meeting. At that meeting, Council went through the ordinance and it was found that the project meets the development standards. The applicant has been receptive to community input throughout the process. Bendon said there was a question about the Aspen Ski Company's plan for the Lift One site. The Ski Company noted they support this project and are interested in the upper half of Hill street. Bendon recommended the Ski Company come forward with their own application if they are to do anything. The Ski Company does not have current redevelopment plans for the Lift One site. Bendon said the ordinance has been changed to not allow cash -in -lieu for more than a fraction of FTE unless reviewed and approved by Council. Bob Daniel, representing the applicants, said there were questions about the interface with the skiing. Daniel reminded Council when the accessibility issues were discussed and the areas of the project most accessible were the restaurant space. Daniel showed a rendering of the south elevation with the ski corridor, the existing lift one tower to show the width of the ski run and the west and east building. This illustrates the accessibility to the snow immediately off the circle with the outdoor deck and the upper level covered outdoor deck. Mayor Ireland opened the public hearing. Eban Clark, representing the Silver Shadow, told Council their objections have been resolved based on modifications done by the applicant. Bendon said exhibit G to the ordinance will be upgraded to the new graphics incorporating those changes. Allyn Harvey said he is in favor of this proposal. Harvey reminded Council he was part of the citizens' COWOP on this development. Harvey said the skier right -of -way is a gold standard in an application and the developer has dedicated that right -of -way in the middle of their property. The development has a museum and a restaurant and ski lockers so it is exciting. Harvey encouraged Council to support the application; it is a way to bring vitality back to this side of the mountain. Junee Kirk said one concern is that this seems to fly in the face of history; this is a very modern building. Ms. Kirk said it does not enhance the character of the historic structures around it. Ms. Kirk said she is also concerned about giving up the alignment of the street. Bill Tomsich, Stay Aspen Snowmass, said there is a market need for this project. Tomsich told Council the bookings for this winter are looking strong; however, one segment in highest demand is the most convenient ski in ski out rooms, which this would fulfill. Ruth Kruger said this is the right project in the right place at the right time. Ms. Kruger noted the developer made strides to accommodate the public, Council and history. Ms. Kruger encouraged Council to approve the project. Mary Janss said she and her family are excited about this project; it is a terrific project. Mayor Ireland closed the public hearing. Bendon entered into the record a letter from Tom Smith of the Caribou supporting the project; Susan Gomes, supporting the project; Warren Klug supporting the project, Church Frias supporting the project and a letter from Eban Clark representing the Silver Shadow condominiums withdrawing his objections to the project. Mayor Ireland noted the condition of the street coming down to Deane street has been discussed, site visits conducted. Mayor Ireland said part of the discussion was heating the street with the ground source heat pump, which is a good option. Mayor Ireland suggested that the necessary 11 Regular Meeting Aspen City Council November 14, 2011 infrastructure for heating be installed during construction in case other methods do not work. Mayor Ireland said although he does not advocate for heated streets, there is a safety issue here. Daniel agreed he could work with the city engineer on providing the infrastructure and whether to do it proactively or reactively, to provide snow melt manifold and stub. Daniel noted they do plan on snow melting the sidewalks. Bendon suggested language requiring a snow melt plan for the section of South Aspen between Durant and Deane street acceptable to the city engineer. Mayor Ireland stated he supports this project because there is a need for lodging, Aspen needs to go in the direction of a destination resort. The city is taking a chance and sharing some risk with the developer based on the economy. Mayor Ireland said the developers listened to the community's concerns about mass and scale. Councilman Skadron pointed out when this was reviewed two years ago, the building was 40% bigger and the developer's comments were that it was the right project in the right place at the right time. Councilman Skadron said the same thing was said just now and there are still legitimate concerns about this development. Councilman Skadron said there is still a balance between community needs versus needs of the investor. Councilman Skadron said he would like confidence that the proposed rooms are something that visitors will utilize. Daniel said the applicants feel the lock off program provides flexibility; a typical unit can be turned into various configurations and when the units are not occupied by the owners, there is a myriad of options. There is also a requirement that the rooms be listed with Stay Aspen Snowmass. Daniel said from both the perspective of the community and of the developer, bigger is not always better. This proposed project is two buildings 45,000 square and 27,000 square feet and this scale is in keeping with the neighborhood. Daniel said he feels the project is designed to be adaptable to the future and it is sized right to make it achievable. Daniel noted a 22 unit project is not an immense project. Daniel said the as far as embracing the future, the project has committed to environmental stewardship, goals set by other people; the flexibility of the room configuration speaks to the future. Daniel said the current state of the property does not honor history; the park is a parking lot. Daniel said the applicants hope this will refurbish and reuse buildings and create a museum on site. Bendon said in 2008, the then project was 4 to 5 times the size of this project in a different environment. Bendon said this applicant has approached this as the acceptance of the project by the community is part of the infrastructure; the applicants did a lot of listening to many parts of the community. Bendon said in the 2008 iteration, there was a sense there was a better project right around the corner. Councilman Skadron said the project before Council is 2008 was not the right project and Council did the right thing by turning it down. Councilman Skadron said he wonders about this, is there something smaller and better around the corner. Bendon said this is a good project because it is the type of project the community wants in this location. Bendon noted every applicant had a different strategy on how to approach staff, the community, Council, criticisms. Councilman Torre said this process has been long and varied; COWOP was a good way of involving the public and taking ideas. Councilman Torre said over the last five or six public hearings, Council lost the ability to interact, to fight for things they think are best for the community. Councilman Torre said several meetings ago, he asked about the right -of -way for 12 Regular Meeting Aspen City Council November 14, 2011 South Aspen street and made the suggestion that the Skier's Chalet could be moved down, made thinner and not encroach on the right -of -way. Councilman Torre said that idea did receive consideration. Councilman Torre said he is cautious about staff being an intermediary between an applicant and Council. Councilman Torre noted concerns from the engineering department about property with no 5 foot buffer along the sidewalk. Councilman Torre said the safety of South Aspen street is a concern of staff as well as that of Council. Bendon agreed staff and the applicant has been struggling with the safety of South Aspen street. Bendon noted there is not a lot that can be done about the slope of the street and any improvements will be a compromise. Daniel showed a rendering of the project and that the project across the street has a 5 foot sidewalk at the curve; the sidewalk on the east side was relocated to include a buffer except at the Skier's Chalet because of the Willoughby park property line and the inability to move that building into that property where it is not an allowed use. Daniel told Council the applicant worked with 3 city departments all with competing goals to improve the safety of the street as much as possible and the result is a series of applications which juggles those priorities. Councilman Torre noted the free market component of five units which comprises over 13,000 square feet and why that size is necessary for whole ownership in this location at the base of the mountain where lodging and hot beds are important. Daniel pointed out the ordinance states that no time share units can be converted to free market; however, they can convert the free market units to time share. Daniel said one reason free market is important part of the equation is understanding the benefit from an economic and pre -sale perspective to get the project going. Councilman Torre asked if there is completion assurance. Bendon said the ordinance requires financial assurances and a performance bond and this is the state of the art from the last two years experience and the applicant's ability to complete the improvements within the building permit. There is a site protection fund of $100,000. Councilman Torre stated he is opposed to 10 year vesting right period; 10 years does not get the community the outcomes they want. Councilman Torre said he would rather see 3 or 5 years. Councilman Torre pointed out that vested rights can be extended. Councilman Torre said the applicants have done a lot of trade offs and the project has come a long way. Councilman Frisch said Council is trying to find solutions to the long term sustainability of Aspen and they can come to 5 different conclusions. Councilman Frisch said he looks at the long term sustainability of each project. Councilman Frisch said the city is giving up a dead zone and the idea that the community can stand still and remain vibrant. Councilman Frisch said there has to be an anchor tenant to start the rejuvenation. Councilman Frisch said this project has a lot of neighborhood buy in. Mayor Ireland moved to adopt Ordinance #28, Series of 2011, on second reading; seconded by Councilman Frisch. Councilman Torre moved to amend the ordinance to change vested rights from 10 years to 3 years. Motion DIES for lack of a second. Mayor Ireland moved to amend the ordinance to change vested right from 10 years to 7 years; seconded by Councilman Frisch. 13 Regular Meeting Aspen City Council November 14, 2011 Councilman Torre reiterated vested rights do not do the community any good. Daniel noted there is uncertainty in the economic world. The applicants have already put 5 years into this project. Mayor Ireland amended his amendment to change the vested rights from 10 years to 5 years; seconded by Councilman Frisch. All in favor, motion carried. Mayor Ireland moved to amend the ordinance to require the applicant provide a plan satisfactory to the city engineer to include but not limited to manifold and stub to allow the installation of ground sourced or other heating for the street if necessary for safety; seconded by Councilman Skadron. All in favor, motion carried. Councilman Skadron said this project is bigger than it has to be, which is a function of oversized rooms; room size drives footprints. Councilman Skadron said he is skeptical of a faux environmental created by the juxtaposition of old and new; in terms of history of the area, nothing has greater importance than the hill itself. Councilman Skadron said the applicant has been responsive to broader community goals. Councilman Skadron said he likes that the Skier Chalet building get used and that the ski museum is located on this site. Councilman Skadron said this project does a good job of attempting to reinvigorate the principles of the Aspen Idea. This project has qualities that are good for both the immediate area and for Aspen in the long run. Mayor Ireland agreed the community has to accept some compromises as long as they do not counter the basic principles. Councilman Torre said he would have like the roadway be more open. Councilman Torre noted he has concerned about dorm room style housing. Councilman Torre said he is happy the applicants heard the community desire for historic respect. This is an appropriate place for lodging. Roll call vote; Skadron, yes; Frisch, yes; Torre, yes; Mayor Ireland, yes. Motion carried. Mayor Ireland moved to adjourn at 9:20 PM; seconded by Councilman Torre. All in favor, motion carried. 4 hryn Koch City Clerk 14