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HomeMy WebLinkAboutminutes.council.20121210 Regular Meeting Aspen City Council December 10,2012 CITIZENPARTICIPATION ..........................................................................................................2 COUNCILMEMBERCOMMENTS ..............................................................................................2 CONSENTCALENDAR................................................................................................................3 ❑ Resolution#114, 2012 - Contract- Avaya Phone System...................................................3 ❑ Resolution# 117, 2012 - Stormwater Conveyance Cleaning and Video.............................3 ❑ Resolution#108, 2012 - Revision to the EOTC 2012 1/2% Transit Sales &Use Tax Budget..........................................................................................................................................3 ❑ Resolution#109, 2012 - EOTC 2013 1/2% Transit Sales & Use Tax Budget.....................3 ❑ Resolution#115, 2012 - Wheeler Balcony and Technology Upgrade Project Design Contract........................................................................................................................................3 ❑ Resolution#116, 2012 State Energy Impact Assistance Grant Application for AABC WaterTie-In Project ....................................................................................................................3 ❑ Minutes -November 26, 2012..............................................................................................3 RESOLUTION#113, SERIES OF 2012—Adopting 2013 Mil Levy.............................................5 ORDINANCE#35, SERIES OF 2012 - .3% Sales Tax for Education...........................................5 ORDINANCE #31, SERIES OF 2012—Code Amendment- Master Plans....................................6 ORDINANCE #33, SERIS OF 2012—Code Amendment—Historic Districts..............................6 ORDINANCE#32, SERIES OF 2012—Code Amendment Affordable Housing Certificates ......7 RESOLUTION#118, SERIES OF 2012—Code Amendment Policy Direction—Sign Code.......7 ORDINANCE 425, SERIES OF 2012—Code Amendment CC and C1 Zone Districts ................8 ORDINANCE 423, SERIES OF 2012—AspenModern Negotiation 610 E. Hyman...................10 ORDINANCE 434, SERIES OF 2012 - Code Amendment Accessory Dwelling Units ..............13 1 ReLyular MeetinLy Aspen City Council December 10, 2012 Mayor Ireland called the meeting to order at 5:08 pm with Councilmembers Johnson, Frisch, and Torre present. CITIZEN PARTICIPATION There were no comments. COUNCILMEMBER COMMENTS I. Councilman Torre wished everyone happy holiday. 2. Councilman Torre asked for an update on funding for health and human services. Steve Barwick, city manager, noted a meeting with city/county staff is scheduled in January to discuss the issues. Barwick said the short term issues will be dealt with in January; no one should be disrupted. 3. Councilman Johnson announced Aspen Highland is opening on Friday and there is new terrain being opened daily at Aspen Mountain and Snowmass. 4. Councilman Frisch noted the Aspen Ski Company has been offering meals to employees who are not yet back to work. 5. Councilman Frisch said the 5th annual Summit for Life was this weekend and 500 people participated; it is a great event. 6. Mayor Ireland noted the Aspen High School basketball team is 2 and 1. 7. Mayor Ireland said he did the Summit for Life uphill race and thanked Chris Klug for putting on a great event. 8. Mayor Ireland commended the streets department for moving 15" of snow off the streets so that people could get around. 9. Councilman Torre reported on the RWAPA meeting, which he attended as the alternate member. Mark Fuller's contract was renewed with no changes from last year. The 2013 budget was discussed; the finances and budget look good. The invasive species inspection program costs were minimized by not doing inspections the days the reservoir is least used. There was an update on the Ruedi repayment. 10. Councilman Johnson reported the NWCCOG approved the 2013 budget. Councilman Johnson noted a number of communities are looking to adopt green building code and the city of Aspen's Stephen Kanipe has taken a leadership role in green construction codes. 11. Councilman Frisch told Council the Frontiers group hopes to complete their mission by the end of 2013 and the APCHA board becoming more involved in strategic planning. (Councilman Skadron came to the meeting). 2 Regular Meeting Aspen City Council December 10,2012 12. Councilman Skadron complimented Gram Slaton and the Wheeler for a great and fun concert at the Wheeler last Saturday. CONSENT CALENDAR Mayor Ireland listed the consent calendar items: • Resolution 4114, 2012 - Contract - Avaya Phone System • Resolution# 117, 2012 - Stormwater Conveyance Cleaning and Video • Resolution#108, 2012 - Revision to the EOTC 2012 1/2% Transit Sales &Use Tax Budget • Resolution 4109, 2012 - EOTC 2013 1/2% Transit Sales &Use Tax Budget • Resolution#115, 2012 - Wheeler Balcony and Technology Upgrade Project Design Contract • Resolution#116, 2012 State Energy Impact Assistance Grant Application for AABC Water Tie- In Project • Minutes -November 26, 2012 Council requested the Stormwater Contract, EOTC 2012 and 2013 resolutions and the Wheeler Balcony contract be removed. Resolution 9117, 2012 - Stormwater Conveyance Cleaning and Video Councilman Torre asked the area impacted and how much of the system this will take care of. April Long, engineering department,told Council this will be for 8500 linear feet Garmisch from Main to Durant, Aspen from Main to Durant and a portion of Neale street. Ms. Long said this is the third year of this project and staff intends to video and clean a portion of the system every year. Long told Council this video will identify any area where there is clogs and any deteriorated, leaking, cracked pipes. Resolution#108 2012 Revision to EOTC 2012 `/2% Transit Sales &Use Tax Budget- Councilman Skadron asked why an additional $125,000 was requested. John Krueger, transportation department, reminded Council the original request to the EOTC was $250,000 and this request is for an additional $125,000 due to changes to the scope of the project, it became a CDOT project; there were different alternatives, coordination with the airport and with RFTA and the BRT project, the turn from the ABC. Councilman Skadron asked if there are more requests on this project. Krueger said this is the final request on this project. Krueger told Council it is important for the BRT project to be completed so they can satisfy federal grant requirements. Brian Petit, country transportation, told Council the BRT project is in a good position to have the full $3 million grant fulfilled. Krueger noted this funding was approved by the EOTC October 18th as long as staff gave more information about this extra funding; this extra funding has been approved both by Pitkin County and the town of Snowmass. Councilman Frisch asked of the $125,000 request how much was 3 Regular Meeting Aspen City Council December 10,2012 due to a different scope. Petit said this funding request is contributable to the public process and to the coordination required with BRT and RFTA, from additional information for elected officials, from becoming a CDOT project. Councilman Skadron asked if this money would come of out entrance to Aspen funds. Krueger said it comes out of the $3 million capital pool. Mayor Ireland moved to approve Resolutions #108, and#109, Series of 2012; seconded by Councilman Johnson. Councilman Torre said he cannot support a 100% increase in a contract and that the options were not vetted. Councilman Torre said this underpass should be funded by the county rather than by the EOTC, whose primary function is about the multi-modal system. Petit noted this is fully off the airport footprint and services the bus stop at the ABC and at the airport and is part of a multi- modal system to get people into town from the airport terminal. RFTA moved the bus stop in order to realign it with the future terminal. Mayor Ireland said he supports this request as the system is used by country residents who work in the city and safety is important. This is a request for Aspen, Pitkin County and Snowmass Village jointly fund the $125,000. All in favor of Resolution#108, with the exception of Councilman Torre. Motion carried. Resolution#109 2012 EOTC 2013 %z% Transit Sales & Use Tax Budget- Councilman Torre contended that the Rubey Park facility is part of a system and the $200,000 redesign is being put on the city as an expense to come out of the entrance to Aspen funding. Councilman Torre said the entrance to Aspen funding has been identified to be spent on the physical entrance to Aspen to alleviate congestion. Councilman Torre stated the other governmental entities do not seem to want to partner on Rubey park expenses. Rubey Park is used by many parts of the transportation system and should be funded by EOTC. Councilman Torre said his overall goal is for Rubey Park improvements. All in favor of Resolution#109, motion carried. Resolution#115, 2012—Wheeler Balcony and Technology pgrade Project- Councilman Torre stated he supports the historic nature of the Wheeler Opera House. Councilman Torre said he also supports the balcony project and technology upgrades but has concern about the shape of the balcony and the front railing and about too much change to the interior of the building. Councilman Skadron agreed there are competing goals; maintenance of the historic structure versus pursuing comfort of audiences. Gram Slaton, Wheeler Opera House, told Council the consultants selected have a lot of experience with sensitive iconic historic projects. Slaton noted the goal is to get a design that works for a 21St century audience while preserving the shape and feel of the balcony. Slaton said staff has tried to alter the balcony the least possible way and to make it work. Councilman Skadron asked if any seats will be lost. Slaton said that depends on the shape of the tech booth. Brian O'Neil, Wheeler Board, said this piece is the culmination of the project to restore the Wheeler which started in 1980's but ran out of money before all pieces were complete. O'Neil said this project is to both upgrade the projection booth and the seating in the balcony. O'Neil told Council the Wheeler Board has respect for the historic theatre. Richie Cohen, Wheeler Opera House Board, told Council this is an improvement that was planned for 30 years ago and with some technological improvements included. Councilman Skadron said it is important that 4 Regular Meeting Aspen City Council December 10,2012 the changes are judged against the user's experience, not just change for the sake of change. O'Neil said there is an incongruity in having seats in the balcony that are very uncomfortable and better seats in the orchestra for the same ticket price. Councilman Johnson moved to approve the consent calendar as amended; seconded by Councilman Torre. Resolution#114, 2012 - Contract - Avaya Phone System Resolution# 117, 2012 - Stormwater Conveyance Cleaning and Video Resolution#115, 2012 - Wheeler Balcony and Technology Upgrade Project Design Contract Resolution#116, 2012. State Energy Impact Assistance Grant Application for AABC Water Tie-In Proj ect Minutes -November 26, 2012 All in favor, motion carried. RESOLUTION #113, SERIES OF 2012 —Adopting 2013 Mil Levy Mayor Ireland opened the public hearing. Mayor Ireland moved to adopt Resolution#113, Series of 2012; seconded by Councilman Frisch. There were no comments. Mayor Ireland closed the public hearing. Pete Strecker, finance department, said the mil levy funds go to the general fund,to AMP,the stormwater project. The mil levy for general fund and AMP is subject to TABOR limitations; there have been assessed value decreases over the past several years. The mil levy credit is being reduced to .755 mils. All in favor, motion carried. ORDINANCE #35, SERIES OF 2012 - .3% Sales Tax for Education Mayor Ireland opened the public hearing. Don Taylor, finance department, told Council this ordinance makes changes to the sales tax code to reflect the recent tax rate approved by the voters in November. The .3% sales tax is dedicated to education and will be granted to the education foundation. Mayor Ireland closed the public hearing. 5 Regular Meeting Aspen City Council December 10, 2012 Mayor Ireland moved to adopt Ordinance #35, Series of 2012, on second reading; seconded by Councilman Torre. Roll call vote; Skadron, yes; Johnson, yes; Torre, yes; Frisch, yes; Mayor Ireland, yes. Motion carried. ORDINANCE #31, SERIES OF 2012—Code Amendment- Master Plans Jessica Garrow, community development department, noted this ordinance will adopt a new code section to create and adopt all comprehensive and master plans. This amendment creates a specific time lime, outlines when background work is done, when public outreach occurs and how Council adopts the plans. The section notes all plans will be guiding in nature. Ms. Garrow pointed out at first reading, Council asked to insure that HPC and P&Z could recommend specific changes to a master plan, which is included in step 5. 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 2012, on second reading; seconded by Councilman Johnson. Councilman Torre stated he does not favor this as he has no faith in master plan processes and would like to see a more organic, community based process. Roll call vote; Torre, no; Frisch, yes; Johnson, yes; Skadron, yes; Mayor Ireland, yes. Motion carried. ORDINANCE #33, SERIS OF 2012—Code Amendment—Historic Districts Sara Adams, community development department, reminded Council they requested this code amendment as part of the downtown. Mayor Ireland said discussions about being designated historic become tangled with development negotiations. Mayor Ireland said HPC and Council should decide what should be preserved before development proposals come before them. Ms. Adams said there is an inventory of historic sites and structures, listing all historic landmarks. There is also an AspenModern map with properties that are potentially identified as historic and whose owners can negotiate their designation and development with Council. Mayor Ireland suggested a process by which Council lists the properties eligible for concessions. Mayor Ireland opened the public hearing. There were no comments. Mayor Ireland closed the public hearing. Councilman Johnson moved to adopt Ordinance #33, Series of 2012, on second reading; seconded by Mayor Ireland Roll call vote; Frisch, yes; Skadron, yes; Johnson, yes; Torre, yes; Mayor Ireland, yes. Motion carried. 6 Regular Meeting Aspen City Council December 10,2012 ORDINANCE #32, SERIES OF 2012—Code Amendment Affordable Housing Certificates Chris Bendon, community development department, outlined the proposed change to the affordable housing certificate program, which allows a developer to build affordable housing and to sell mitigation credits to developers who need to satisfy mitigation requirements. Bendon proposed conversion between affordable housing categories, which was not thought of when the program was instituted; however, developers need to be able to match needs with city requirements. The housing board supports this amendment and staff recommends approval. Mayor Ireland opened the public hearing. Peter Fornell noted one of the best parts of this program is that the housing becomes available before the development that it mitigate=s. Fornell said being able to match categories to needs is critical. Fornell said each category the dollars for the sales of units and the cash-in-lieu will equal the same amount and allow the city to maintain the category mix as it gets developed. Mayor Ireland closed the public hearing. Mayor Ireland moved to adopt Ordinance 432, Series of 2012, on second reading; seconded by Councilman Frisch. Roll call vote; Skadron, yes; Frisch, yes; Johnson, yes; Torre, yes; Mayor Ireland, yes. Motion carried. RESOLUTION #118, SERIES OF 2012 —Code Amendment Policy Direction— Sign Code Jim Pomeroy, community development department,told Council staff would like to modify the present sign code, to clarify the signs that can be allowed, an option for special event banners, address new technology for lighting of signs, business frontage as used in code needs to be clarified, and to propose a set amount of signage for each business, allow sandwich boards in all zone districts in the city, altering the window wrap section, addressing clothing being displayed on the public right-of-way. Councilman Johnson stated he does not favor a set amount of signage/business. Councilman Johnson suggested language addressing LED. Chris Bendon, community development department, noted at a previous work session, Council directed staff to address neon and anything that looks like neon. Mayor Ireland suggested staff come back with several proposals on how to allow sign/frontage and buildings. Councilman Skadron said his desired outcome is something that balances the retail shopping experience and needs of retailers. Gideon Kaufman agreed that all retail space is not equal and there has to be an understanding that some businesses do not have the benefit of street frontage. Councilman Johnson agreed staff needs to address windows wraps and their technology. Councilman Johnson said bins and boxes need to be allowed; there should be some standard for bins and boxes. Pomeroy noted there are sandwich boards for businesses that have a small amount of retail. Mayor Ireland said that should be looked at because every service business with small retail should not be able to have a sandwich board. Bendon said staff will work on options for that. Mayor Ireland moved to adopt Resolution#118, Series of 2012; seconded by Councilman Johnson. All in favor, motion carried. 7 Regular Meeting Aspen City Council December 10,2012 ORDINANCE #25, SERIES OF 2012—Code Amendment CC and C 1 Zone Districts Mayor Ireland opened the public hearing on Ordinance#25, Series of 2012. Gideon Kaufman brought up the code amendment for businesses north of Main street and emphasized they be allowed to have office space on first floors. Kaufman said not allowing offices on first floors arbitrarily penalizes those locations and this would be a positive change. Kaufman noted retail is difficult in Aspen with a good walk-in location. Jessica Garrow, community development department, reminded Council they asked for some revisions at the last meeting. These were allowing lodging and commercial uses in the CC and C1 zones, banning free market residential uses, to limit 3` floors. The ordinance has been changed to limit 3`d floor to lodging and commercial uses, no free market residential is allowed in the zone district, 3`d floor is limited to 50% of the parcel size and the south side of the street requires a 35' setback for the 3`d floor. At the last meeting, there was discussion about banning all 3`d floors on the south side of the street. Staff is concerned that would create an unequal zoning structure. The 35' setback should address the visual impact concerns. The ordinance also lifts the office ban on the north side of Main street and allows ground floor lodge and conference facility for lodges. There is a minimum 15' setback for mechanical equipment, which is limited to 6' in height from attachment to the building. Ms. Garrow showed graphics illustrating visual impacts from the proposed changes, the mechanical equipment changes, the 3`d floor footprint with the 35' setback and 50% site coverage. Ms. Garrow noted affordable housing is allowed on the 2nd and 3`d floors. Previously Council stated they would approve 3`d floors limited to lodging and commercial. Mayor Ireland noted existing zoning has created price points that price affordable housing and lodges out of the zone. Chris Bendon, community development department, noted allowing buildings on the south side with a substantial setback would allow parity and have minimum effects on shading and visual impact. Mayor Ireland said the city attorney should opine on whether to allow a more generous building on one side of the street. Mayor Ireland asked about the references to vacation rentals. Ms. Garrow reminded Council during their discussion on vacation rentals, they decided to allow vacation rentals anywhere in the city; same thing for home occupation. Mayor Ireland asked about time share units. Bendon said staff did a study in the last year on time shares and their effect on the short term market vs. traditional lodge. Bendon said time shares do not report as lodges do; the report concluded these function like lodges with slightly higher occupancy. Councilman Skadron stated a mix and variation of heights has been established by the past 10 years and not allowing that to continue diminishes what Aspen considers a competitive advantage—small town character and the physical nature of town. Councilman Skadron said if Aspen is a small town, it should be certain things, like lower building heights. Councilman Skadron said the town currently has enough higher buildings. Councilman Torre stated if solar access were the primary concern, he would not have a problem with a 3`d story. Councilman Torre said his issue is what is in the building. 8 Regular Meeting Aspen City Council December 10, 2012 Mayor Ireland moved to amend Ordinance 425 to exclude 3rd floors on the south side; seconded by Councilman Skadron. Councilman Johnson stated he would not support that amendment and the commercial core is where vitality and mass need to be. Councilman Johnson noted buildings on both side of the street should be able to have 3rd floors. Councilman Johnson said there was vitality last summer and the built environment has served the community well. Councilman Skadron said the city had a less restrictive policy which created opportunity for redevelopment and the spirit of vitality; however, the reality is development removed vitality and replaced it with high end retailers and little vitality. Councilman Skadron stated a less restrictive development policy does not result in vitality but results in high-end retail allowing developers to recapture their investment. Councilman Skadron asserted vitality is more a function of the national economy than allowing 40' buildings. Councilman Torre stated free market residential uses have had a dampening effect on the downtown. Councilman Torre said he would encourage spaces for local and start up businesses and does not want to preclude some uses. Mayor Ireland presented a study looking at 507 parcels in the CC and C-1 zones, not those north of Main street, and determined that local ownership has declined, vacancy rates have increased, and residential property is worth twice that of commercial,the number of people under 40 has declined. Mayor Ireland stated property that is not owned locally is not going to be as vital as property that is. Mayor Ireland noted Vail allows 80' buildings and that community is not vital except maybe weekend crowds. Mayor Ireland said he does not feel it is worth it to allow 3 stories as there is no evidence that higher buildings add to vitality. Mayor Ireland asked if one could have a 3-story lodge with a basement under this amendment. Ms. Garrow said one can only have a lodge use on the basement or first floor if the entire building is dedicated to the lodge use. This ordinance would not allow free market residences, 3rd floor is limited to lodging and commercial uses, 28' is the height limit. Bendon noted this amendment will lift the office prohibition on the 1 st floor on the north side of Main street and in the CL zone, more clarity for setback requirements for mechanical equipment. Ms. Garrow entered a letter from the ACRA community affairs committee into the record. Councilman Frisch said for him vitality is not how the town is doing over the Fourth of July weekend but busy offices to indicate people living and working downtown. Councilman Frisch said he would like to see a mix of free market and affordable and commercial with the caveat that the 3rd floor does not turn off the 1St floor. Another evidence of vitality is to see people going to and from residences and to and from businesses. Councilman Frisch said this is not a code for the community but is a reaction to some development. The code keeps changing but the community's core values have not changed. Councilman Frisch said he would support free market residences in the CC and C-1 districts. Councilman Frisch said there are 10 applications for development in the community development department and town will look different after these. Councilman Johnson said using census data is one thing; however, vitality has to be measured against Aspen as a resort community. Councilman Johnson agreed he does not want to have 3 rd floors stifling 1St floors. Councilman Johnson said lodging is a priority for this Council. 9 Regular Meeting Aspen City Council December 10,2012 Councilman Johnson noted there are almost a dozen applications in waiting and suggested Council see how these development applications play out. Mayor Ireland moved to continue Ordinance#25, Series of 2012, to January 14, 2013; seconded by Councilman Skadron. All in favor, motion carried. ORDINANCE #23, SERIES OF 2012 —AspenModem Negotiation 610 E. Hyman Amy Guthrie, community development department, told Council this is a review for an AspenModem voluntary designation for a 1963 building designed by Ellie Brickham. Ms. Guthrie told Council the application proposes some remodel and is asking for some incentives for the project that would make landmark designation acceptable to them. Ms. Guthrie reminded Council a property needs to meet 3 of 5 of historic designation standards. This building was built in 1963, designed by Ellis Brickham, the first woman architect practicing in Aspen, representation of modernist style, part of a row of buildings down east Hyman Avenue. There is a scoring process where the condition of the building is evaluated, the representation of the building and it scored 15 out of 20 for integrity, which is on the threshold of better or best example. The applicant proposes an expansion of about 1,000 square feet of office space on the 2"d floor. There is an existing studio apartment on the top floor and the applicant would like to expand that unit. Two incentives requested are a growth management exemption of affordable housing for 1.75 employees, this is an existing incentive for historic landmarks. There is no affordable housing mitigation for the free market residential because it is an existing unit and as a landmark building this is exempt. The unit does pass the threshold size for units in the commercial core. The unit would be within the 2,000 square foot net livable but the floor area is over 3,000 square feet due to the requirement that any common areas have to divided up and shared between the office and residential. The building has a lot of staircases and circulation areas. The applicant requests 10 years vested rights. The proposed redevelopment involves a fraction of a parking space on site; the applicant requests waiving that space and the cash-in-lieu fee. The applicants would be eligible for the park development and transportation demand management fee waivers around $15,000. During HPC review, the lack of adequate trash and recycling areas were discussed. There is an agreement with the next door property for trash and recycling; there should be a more formal arrangement or an agreement in writing. An alternative would be to use one of the existing parking spaces for trash and recycling. Charles Cunniffe, applicant, told Council he has owned the property for over 20 years and lived in the building until his family got too large. Cunniffe said his long term goal is to live in the property when his kids are out of school. Ms. Guthrie reiterated staff and HPC feel the building is worth preserving; the applicants propose some restorations if it is designated. Mitch Haas, representing the applicant, noted the goals of historic preservation; to protect, enhance and preserve those properties and sites that represent distinctive elements of Aspen's history. Haas argued that this property meets 4 of the 5 criteria for historic designation, meeting the criteria of buildings related to people who had a contribution to local history. Ellie Brickham had an important contribution to Aspen architecturally and politically. Haas told Council the applicants have committed to all 3 restoration efforts staff and HPC felt were important for the property. Haas said when the restorations are complete, the building will score best of AspenModern. Haas pointed out this is one of the few post WWII AspenModem commercial buildings. 10 Regular Meeting Aspen City Council December 10,2012 Haas said this is a chance to lock in HPC's purview over this building; the building is located in the C-1 zone and there is currently no HPC review on the property. Haas said this is a chance to relieve future development pressure on the property. Haas said the requests are for more office space for the applicant, over the garage on the alley, and turn the existing studio into a one- bedroom, also expanding on the non-historic portion of the building. Haas said the canopy over the second floor courtyard will be removed, behind the courtyard is the 3rd story, which would be 53' back off the property. The height in the alley would be 40' and on the front of the building is 38'. The front of the building will remain 2 stories at 24'. Cunniffe noted all surrounding buildings will be 3 stories and he needs to keep some presence. Haas told Council this building is inefficiently laid out; the back half of the building was added after the front half; the floor levels do not meet up. Haas said the net livable would be 1909 square feet; the FAR of 3047 square feet and of that is 286 square feet is walls, 473 square feet is in stairs and hallways—non-unit space, and 385 square feet of deck space. Haas said if the property is landmarked, it becomes eligible for housing mitigation and other fee waivers, like any other landmarked property. Haas noted there are 3 code compliant parking spaces on site; 4 cars park there every day,there are 2 tandem spaces and the way the code is written you cannot count 2 spaces for a tandem space. Haas said HPC agreed to waive a fraction of a parking space because the application practically, but not technically, meets the code requirement. Haas reiterated the trash/recycling has been shared with the next door neighbor who has written a letter stating they are willing to continue that arrangement and the applicant can work on a legally binding agreement if Council agrees. Chris Bendon, community development department, told Council staff struggles with AspenModern designation as the historic qualities of post WWII are not obvious at first glance. Bendon suggested Council focus on the quality of the historic renovation; the fact this building will be in a restored state as part of the historic inventory and the value that brings to the overall community. Councilman Torre said he finds the proposed change in this block a contemporary modernization that could be in any town and not necessarily fitting for Aspen. Cunniffe noted the proposed renovation would decrease the mass as they are eliminating the second floor canopy. Councilman Torre said he feels a maximum on net livable of free market residential lends their use by more local residents. Councilman Torre stated he could not support vested rights for 10 years. Councilman Torre said there are trade offs for affordable housing and some Councilmembers are hesitant to use housing as a negotiating tool. In this application, the requirement for housing is triggered by the office space and there are impacts felt by the community. This cash-in-lieu payment is on the low side. Councilman Torre said he could support the proposed parking and trash/recycling arrangements. Councilman Torre said he would require the parks and transportation demand impact fees be paid. Councilman Torre said he understands the floor area bonus and the explanation of net livable. Councilman Frisch noted staff s memo states, "support the award of the benefits that are requested if there is a dedicated effort to return to all the character, defining features of the building within reason" and asked if staff feels the applicant is proposing to do that. Ms. Guthrie said one of the more difficult parts of the negotiation was coming to an agreement about what could be reversed and put back the way the building was originally designed. Councilman Frisch suggested that scoring not be in two categories. Councilman Frisch said if he only had a 11 Regular Meeting Aspen City Council December 10,2012 certain amount of square footage and benefits to give away for AspenModern, this building does not rank that high for him. Cunniffe said his goal is to have his business remain in this location and remain healthy. Cunniffe said he sees as a benefit not disrupting this block right away. Councilman Johnson stated moving this structure into the next higher category, because of the restoration, adds more value and speaks to tradeoffs Council would be willing to give. Councilman Johnson stated he would like the application to pay the parks and transportation impact fees; they are not that large. Councilman Johnson said he is okay with the existing parking arrangement. Councilman Johnson said there should be some cash-in-lieu for affordable housing. Councilman Johnson stated he understands the request for 10 years vested rights; however, circumstances change. Councilman Johnson said he gets the FAR bonus, net livable. Councilman Skadron concurred with Council's comments. Mayor Ireland noted there is no proposed restriction on this free market unit that it might not become exclusive or imposing on the other tenants. Mayor Ireland stated the free market unit will be impactive on affordable housing needs, regardless who lives in it and recommended the affordable housing fees be paid in full. Mayor Ireland said he could approve vested rights for 5 years. Councilman Frisch recapped the trade for Aspen Modern is to allow the size unit requested, the affordable housing,parks and transportation fees required to be paid, 5 year vesting. Haas stated the applicants did not request waiver of the affordable housing fees, which is what is currently allowed under code if a property is landmarked. Mayor Ireland said Council is requesting the affordable housing fees be paid as part of the negotiation. Cunniffe pointed out this will not be a high end residence; the entrance is in the alley through the back of the building. Mayor Ireland stated Council is negotiating on behalf of the people of Aspen and it is in the interest of the people of Aspen to maximize public benefits, one of which is getting fees paid. Councilman Johnson agreed everything is open to negotiation according to the code, and to balance the various items in order to come to an agreement. Haas reiterated the rule is that any historically designated property when expanded does not mitigate for up to 4 employees generated. Haas said this expansion is 900 square feet so 60% of 2.075 employees would be less than 4 employees generated. Haas said the incentives requested by the applicant are the floor area bonus and 10 years of vested rights. Mayor Ireland stated the issue is whether the applicant wants to accept Council's offer of additional square feet for payment of housing, parks and transportation mitigation fees. Haas asked at what point the fees are determined. Mayor Ireland stated the rule is if fees are paid up front, they are frozen or one pays the fee in effect at the time of payment. Councilman Johnson said the amount of housing mitigation fee could be negotiated. Council and the applicant agreed to continue this for further negotiations. Mayor Ireland moved to continue Ordinance#23, Series of 2012, to January 14, 2013; seconded by Councilman Frisch. All in favor, motion carried. Mayor Ireland moved to extend the negotiating period 50 days seconded by Councilman Torre. All in favor, motion carried. 12 Regular Meeting Aspen City Council December 10,2012 ORDINANCE #34, SERIES OF 2012 - Code Amendment Accessory Dwelling Units Chris Bendon, community development department, told Council he is not requesting final adoption but continuation to the end of January so that everyone is aware of the significant changes being made and the proposed fee-in-lieu change from the housing office should be synchronized with this ordinance adoption. Bendon pointed out the changes are to discontinue mitigation by accessory dwelling units. When single family or duplexes are scraped and replaced, mitigation is required, like deed restriction of the main house, provide an ADU only if it is sold through a housing lottery, developing or buying down an offsite unit, provide a certificate of affordable housing or paying fee-in-lieu. Bendon pointed out the fee-in-lieu will increase in 2013. Bendon said an inclusionary housing requirement is more used for residential, which is what is used in downtown development in Aspen and is related to the square footage; if one develops 1,000 square feet of commercial, one is required to provide 300 square feet of affordable housing square footage. Bendon said Council can determine the proper ratio, like a 30% inclusionary requirement. The current system is $77/square foot when one is expanding a home. Bendon said an example of a 600 square foot expansion in a residence relates to a fee of$46,000; a 30% requirement in the proposed new fee structure would be $127,000. Bendon outlined some options; stay with the 30%, have 30%with a delayed effective date; have a lower requirement that ratchets up to 30%; adopt a lower requirement like 15%; have an 11% inclusionary requirement, which would mimic the current fee; have less than 11%. Council could go to a category 4 mitigation structure as opposed to category 3 and a 15%requirement would be close to the current fee. This ordinance outlines a process to vacate an existing ADU. There are about 200 ADUs in existence,typically a studio or one-bedroom. Bendon assumed 20 to 30% occupancy; when ADUs are vacated,there is an impact to the housing inventory like 25% of a unit going away. Bendon told Council a typical ADU houses 1.5 FTEs and the unit is lost,that is losing 25%of occupancy, there should be some mitigation of the ADU going away, which would be a .38 FTE and this could be mitigated through cash-in-lieu or a housing credit. Bendon said with the current fee schedule, that mitigation would be $85,000 and under the proposed schedule it would be $151,000. Bendon said this ordinance proposes that mitigation be required on any expansion of a single family or duplex. Under the current code, the mitigation is only required upon demolition of a single family or duplex. Bendon reminded Council the city's impact fees are moving away from being triggered on demolition or construction techniques but are based on net increases or net expansion. Bendon said this legislation is only if one wants to get rid of their ADU. Bendon noted the city's initial growth management plan, which was upheld in the courts and one of the reasons it was held up was because of the linkage requirements, an inclusionary housing requirement was seen as not being exclusionary. Mayor Ireland moved to continue Ordinance 434, Series of 2012, to January 28, 2013; seconded by Councilman Frisch. All in favor, motion carried. 13 Regular Meeting Aspen City Council December 10,2012 Councilman Johnson moved to adjourn at 9:35 PM; seconded by Mayor Ireland. All in favor, motion carried. �Vathryn Koch City Clerk 14