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HomeMy WebLinkAboutminutes.council.19880425Regular Meeting Aspen City Council AAril 25, 1988 PROCLAMATION - USSR - USA Peace Walk 1 COUNCILMEMBER COMMENTS 1 CONSENT AGENDA 3 ORDINANCE #5, SERIES OF 1988 - Land Use Code 3 LIQUOR LICENSE HEARING - Down Under Australian Bistro 11 ORDINANCE #12, SERIES OF 1988 - Prohibiting Use of Right-of- way for construction materials 12 LIQUOR LICENSE HEARING - Caf a Bonjour 13 ORDINANCE #12, SERIES OF 1988 - Continued 14 BUILDING PERMIT MORATORIUM 14 WATER RATES 17 MALL LEASES 20 CITY COOPERATION WITH DESIGN WORKSHOP INTERN PROGRAM 21 REQUEST FOR ENCROACHMENT - Nitze 21 REQUEST FOR FUNDS - HPC 22 ORDINANCE #15, SERIES OF 1988 - New Zoning Maps 22 ORDINANCE #17, SERIES OF 1988 - Housing Guidelines 22 CITY ATTORNEY HIRING PROCESS 23 BUILDING DEPARTMENT 23 25 Mayor Stirling called the meeting to order at 5:00 p.m. with Councilmembers Gassman, Isaac and Tuite present. PROCLAMATION - USSR - USA Peace Walk Mayor Stirling said on behalf of 3 Roaring Fork valley citizens participating in the second American - Soviet walk this summer, the Council is proclaiming August 15 through September 18 as International Peace and Friendship days. The Mayor and Council commend the participants and support the walk on behalf of the city of Aspen. Council presented the proclamation to John Colson and Janet Coester, two of the participants. COUNCILMEMBER COMMENTS 1. Councilman Tuite commended the streets department for keeping the streets clean this early. Councilman Tuite said he cannot remember the streets looking so clean so early. Council- man Tuite also commended the parks department for getting the parks in shape this early in the year. Councilman Tuite said he was glad to hear that the parks department is lining up someone to take care of the Marolt property. 2. Councilman Isaac said as a follow up to the latest elec- tion, he would like to start to look at some alternatives to make the ice garden safer. Mayor Stirling told Council he met with George Pucak, ice garden manager, and has scheduled this for May 23 Council meeting. 3. Councilman Gassman said the construction industry is second only to tourism in dollar value and employment and is a real part of the community. Councilman Gassman said the town is fortunate that the people involved are very professional. Councilman Gassman said he is concerned about the way the construction industry is treated by the government and the connection between the two is the building department. Councilman Gassman said the way that connection comes across is a disgrace. Councilman Gassman said this is something the Council should be concerned about. Councilman Gassman said the procedures are vague and are subject to a lot of personal whim and interpretations. Council- man Gassman said one way of seeing the building department is as a public relations arm of the government. Councilman Gassman said the building department is a joint department and the Council should get together with the county and discuss the problem of the building department. The construction industry is a big segment of the economy and effects a lot of people and the relationship is not working well. 1 Regular Meeting Aspen City Council April 25, 1988 Mayor Stirling said he would be motivated to get together with the county, if appropriate. City Manager Bob Anderson said the County commissioners is also concerned about this area. Anderson said there are improvements that can be made in this area. Anderson told Council one of the Commissioners brought this up today. One proposal is to have a meeting to invite the construc- tion industry and the architects to see what is and what is not working in the department. Anderson said staff has been trying to get a handle on where the break downs are. There is a need to isolate what is going on. Councilman Gassman moved to add this to the agenda as VIII 1); seconded by Mayor Stirling. All in favor, motion carried. 4. Mayor Stirling said today in the park hundreds of balloons were released by the Verena project, which is a science and mathematics projects associated with the community school. Mayor Stirling said the Verena project is making children aware that science is for everyone and to motivate more people to enter the science fields. Mayor Stirling said this balloon release was part of national science week. 5. Mayor Stirling mentioned a letter sent to Bill Efting, leisure services director, from the World Cup liaison acknowledg- ing the work Efting's staff did for all the events during World Cup. 6. Mayor Stirling said Council received a letter from the volunteer fire department thanking Council for the dinner on April 15th. 7. Mayor Stirling said he has brought up two issues he does not want to wait until October to discuss; snow storage and the impound lot. Mayor Stirling said staff is working on these two issues. City Manager Bob Anderson said the snow storage will be reported on at the May 9th meeting. The impound lot will be scheduled for May 23rd. 8. Mayor Stirling said some citizens have raised the issue that within the timed parking there are some locations where there is little competition for spaces. This citizen wondered if there was a chance to change the boundaries. City Manager Bob Anderson said staff could look to see if some zones are exempted that should be timed parking. 9. Mayor Stirling brought up some rumors that have been circulating regarding the Aspen Mountain Lodge, Dick Butera and himself. Mayor Stirling said Dick Butera is not the applicant. Mayor Stirling said he has no more relationship with Butera than 2 Regular Meeting Aspen Citv Council April 25, 1988 with other people around town. Mayor Stirling said he has no business relationship with Butera. Mayor Stirling said Butera had looked at his company in the past but they did not go forward with the deal. Mayor Stirling said all proposals should be judged on their merits. City Attorney Taddune said there were some rumors, which he tried to substantiate. Taddune told Council Butera and Mayor Stirling did have a discussion one year ago which is unrelated to the actual controversies in front of the Council. Taddune concluded there was not a conflict. 10. Mayor Stirling reminded Council there is a meeting scheduled for Wednesday, April 27 at 5:00 p.m. on the Aspen Mountain Lodge and another meeting scheduled f or May 5, 1988, at 5:00 p.m. on the Aspen Mountain Lodge. 11. City Manager Bob Anderson said Councilman Gassman brought up a question about the new street sweeper. Anderson told Council the sweeper is functioning properly. The city needs to follow the sweeper with the vacuum to get the edges. 12. City Manager Bob Anderson said the fire district is very concerned that the city bring back a plan about city hall to the district quickly. Anderson said he is working with Gibson and Reno, the contractor and the fire district to figure out the minimum repairs that will improve this situation. Anderson said the city will be improving both stairways, putting in a f ire alarm system and lighting both stairways. CITIZEN COMMENTS There were no comments. CONSENT AGENDA Councilman Isaac moved to approve the consent agenda; seconded by Councilman Tuite. The consent agenda is Minutes - March 24, April 11, 1988; Special Event Permit - IDCA; Two Forks Dam Resolution; Aspen Music Festival - Japan Prelude - Supporter's Association; Liquor License Renewals - Wheeler Opera House; O'Leary's; Abetone; Aspen Mine Company, Cordon's; Tenth Hole. All in favor, motion carried. ORDINANCE #5, SERIES OF 1988 - Land Use Code Mayor Stirling opened the public hearing. Alan Richman, planning director, presented the final draft. Richman said there are 8 changes which have occurred since Council began reviewing the document. Richman reminded Council they have seen language which identifies how the new code will 3 Rectular Meeting Aspen Citv Council April 25, 1988 apply to existing building permits and land use applications in process, how multiply zone districts effect land. Richman said the Council has not decided upon or seen the language for these 8 changes. Richman said Council asked that staff add hours of operation to day care center. Staff added 7:30 a.m. to 5:30 p.m. to the day care center definition to accommodate the full community. Richman reminded Council they wanted review of open space dining turned back to review by P & Z. Richman said the language states that the use should enhance or be compatible with the purposes of the open space requirement. There is also a requirement for adequate pedestrian and emergency vehicle access. Richman said the third change is definition of restaurant. Richman reminded Council a citizen requested a definition of food stand. Richman said when staff was making sure all uses existing in the community are listed in the code, they had listed f ood stand. Richman said it was apparent to staff that restaurants can be indoor or outdoor dining operations. Richman said putting food stand in and trying to write a definition brought up a lot of issues about commercial use of the right-of-way. Richman concluded the best way to handle this was to come up with an accurate definition of restaurant. Richman said the definition is a restaurant is an eating or drinking establishment where food is prepared and served either indoor or outdoors, if P & Z approves it. Richman said there is no need for food stand to be listed as a use. Councilman Isaac said he does not want the code to imply that dumb waiter can be installed instead of an elevator. Richman said dumb waiter is only f or service access. Council requested "service access" be added for clarity. Margaret Albouy asked about stands for fruit and produce. Mayor Stirling said this is a different issue, where people come to Council and request use of open space. Richman said the city prohibits outdoor sales of commercial products. Richman said page 5-63 responds to Council's direction about strings of lights. Mayor Stirling said he would like Council to look at this again. Mayor Stirling said he feels this is something Council cannot legislate even though he agrees with the earlier motion. Councilman Tuite said the city legislates on neon signs. Mayor Stirling asked Council to repeal the time limits on these lights. Mickey Herron, P & Z member, told Council they carefully considered this and felt these lights do enhance the downtown. Tony Mazza said he feels this is a matter of personal taste. Mazza said he feels the lights are beneficial to the downtown. 4 Re4ular Meetinct Aspen Citv Council April 25, 1988 Richman commented the code deals with strip lighting and strings of lights on building used in any connection with commercial premises. Richman suggested Council could limit themselves to structures where the city is more in the business of sign regulation. Richard Roth said when he brought this up, he was referring to lights used year round primarily as advertisements for businesses. Roth said these lights should be restricted to the holiday season. The lights are spreading all over town. Herron said P & Z only voted in favor of white lights on trees not lights on buildings. City Manager Bob Anderson pointed out most of the trees are in the city right-of-way and there are other ways the city could regulate the use of the trees. Councilman Isaac asked what is meant by "the bulbs shall be shielded". Richman answered these are so bulbs shine back at the building and do not glare out into the public. Councilman Isaac suggested taking out the time limit for the lights. Richman said he could add language stating the lights are not to be used in connection for commercial purposes with commercial premises. Ms. Albouy said having lights in the summer season, the trees in leaf and being a western town just does not go together. Mayor Stirling moved to reconsider (p) on page 5-63 to delete the last sentence and add strings of light bulbs used f or commercial purposes with commercial premises; seconded by Councilman Isaac. Anderson told Council the standards that are used to allow the wiring of these trees are less than the code. Anderson said if this use is going to be long term, staff should look at the hook ups to make sure they are safe. Councilman Isaac said he feels the lights in the trees are attractive the entire winter, not just one month. Councilman Isaac and Mayor Stirling in favor; Councilmembers Tuite and Gassman opposed. Motion NOT carried. Richman said in temporary political signs there were some changes making it clear these signs can be placed for issues not on the ballot, the type could be a wall sign or banner, and the duration is expanded to a 30 day period if the sign does not concern an issue or candidate not on the ballot. Richman said section 5-79 is the fee schedule for commercial- office park development impact fee. Council decided they did want to impose this fee. The staff went through a calculation methodology to come up with the fee. Richman said staff has drafted a report to add to the park development fee impact report explaining how the calculations were come up with. Richman said staff looked at the entire Aspen work force, compared to the 5 Regular Meeting Aspen Citv Council _Aprl 25, 1988 Pitkin County work force. Richman said staff determined the percentage of people who work in Aspen but do not live in Aspen, which is 53 percent of the employees working in the city limits. Staff then came up with a participation rate of the park and recreation facilities. Staff then came up with a percentage of people who work in the downtown, live outside of the downtown and participate in recreation activities. This was able to identify people who are not in any way paying for park facilities but are using them. Using the employees per 1,000 square feet ratio, which was developed years ago, this was translated into people per square feet. Richman said this is a clear and understandable formula and staff feels comfortable with the numbers. Richman told Council staff was very conservative with their figures. Richman said these fees are to be reviewed every two years. The next change is the six month lease restriction. Council made a decision at the last meeting this should be mandatory. Mayor Stirling said he would like Council to reconsider this in the RMF zone. Richman told Council the only 4 zones where there is the ability to request a waiver of the six month minimum lease restrictions are RR, CC, C-1 and Office. In the lodge/tourist residential, this is automatically waived. Richman reminded Council they discussed the criteria (b) about displacement and if the RMF zone is not subject to waiver, there is no need for the displacement criteria. Richman said he feels the displace- ment criteria is still needed for the CC, C-1 and 0, office zones. Mayor Stirling said he feels the RMF zone is mixed neighborhoods with apartment buildings with short term use. Mayor Stirling said this waiver ought to be retained at Council's discretion. Councilman Tuite said he is concerned there will be more infring- ement upon the residential neighborhoods. Councilman Isaac said there ought to be some kind of hearing allowed for people to appeal for less than six months minimum leases. Councilman Isaac pointed out if the parcel has been short term in the past, it ought to be allowed to continue. Mayor Stirling moved to reconsider section 7-1008(b) page 7-83 and add the RMF zone to those zones that could seek a waiver and be reviewed on six month minimum leases; seconded by Councilman Isaac. Councilman Isaac and Mayor Stirling in favor; Councilmem- bers Tuite and Gassman opposed. Motion NOT carried. The next issue is the affordable housing and the 100 percent threshold. Richman expressed a concern about the jump in the employee housing threshold from 35 percent to staff recommenda- tion of 50 percent to Council's action of 100 percent. Richman said 100 percent should be the goal and was established by Council as a direction to be heading. Richman said this should 6 Regular Meeting_ Aspen Citv Council At~ril 25, 1988 be established piece by piece to monitor the effects on the community and to try to think through some of the side impacts. Richman told Council in a quick calculation of the 3 new fees of employee housing, parking and park development with employee housing at 4 per 1 , 000 and 525 , 000 per employee the fee would be 5100,000 per 1,000 square feet, including the other two fees would total 5131,850 would be required for each 1,000 square feet built. This is pre-land costs; this is an additional cost. The result of these f ees may be that commercial development will stop until the market can adjust to these fees. Richman said he is a strong advocate of growth management but does not believe in using employee housing to accomplish growth management. Richman said if there is no construction in the downtown, there is no ability of the market to filter, which means space opens up on the bottom f or lower end uses to go into. This usually happens when new space opens up on top. Richman pointed out that bottom end businesses are usually those that provide local serving uses, not tourist-oriented uses. Richman said if there is not construction, that space which is in existence which people might have turned over, reconstruction credits will become extremely valuable. Richman encouraged Council, if they are concerned about the growth rates, to do a study to reduce the quotas. Richman said providing 100 percent of employee housing should not be a way of stopping growth; it is the wrong tool f or the job. Councilman Gassman said he feels replacement construction is already happening. Richman agreed and said the concern is to what extent the city would be accelerating that trend. Tony Mazza said if Council adopts the 100 percent employee housing regulation, it makes everyone with an existing building have a vested interest that will increase exponentially. Mazza said there will be impetus to increase the rents as these regulations will cost 5134 per square foot per building. Mazza said that cost is more than the cost of building a building right now. Mazza said this will defeat the purpose of getting employee housing because people won't build. Perry Harvey told Council the reason P & Z originally came up with the percentages was you can't have housing unless there is development. If the developer is to provide the housing, there has to be some development in order to create housing. Harvey said this proposal will increase the glitzy image of this community; every dollar of rent increase gets passed onto the buyer. Prices will go up to reflect the increased rents. Harvey urged Council to raise the employee housing percentage, but not to 100 percent, and to review this in a year or two. 7 Regular_Meetinq Aspen Citv Council April 25, 1.988 Mayor Stirling asked if there is some review criteria staff has in mind to review this after a certain time. Richman said staff has reviewed past performance to see if the community is getting enough housing. Richman pointed out whatever the threshold is set at is what is provided. Richman said the city can look at if the community is continuing to get the minimum of amount of housing and is continuing to fall behind in the housing provi- sions. Councilman Tuite asked what is to prevent a developer from building before the percentage goes to 100 percent. Councilman Tuite said this would be a downside to incrementing the percentage. Mazza said he feels that the employees generated per square footage or per bedroom may be arbitrary. Mazza said if the ultimate goal of Council is to go to 100 percent, they may as well apply that now rather than force everyone to build immediately. Richard Roth said he feels 100 percent employee housing should not just be restricted to GMP projects but should include all development within the city. Roth said growth has to pay its own way. Development cannot come back to the city in a number of years and ask them to solve problems that development has created. John Walla suggested if developers are not going to provide their own housing, they should pay the 100 percent employee housing fee. This would provide incentive to developers to provide their own housing and have it constructed when the development is ready. Walla said he favors a program that would give incentive for people to actually provide housing. Charles Cunniffee said this regulation would be a windfall profit to people to have built and almost a taking against people who have not built. Cunniffee said he would like this to apply to existing development so that everyone contributes to housing. Bob Klein said this was a tremendous inflationary cycle in this town. Jim Colombo said currently there are two solutions to the housing problem; the private and the public sector. Colombo said if the city initiates 100 percent requirement for housing in the private sector, this will eliminate their contributions. There will then be housing problems which will be supported only by public money. David White said this is an issue of balancing out when the development community pays for development. Councilman Isaac said only two years ago Centennial was not filled and people were wondering why it was built. Councilman Isaac said there is an employee housing shortage but it does not necessitate jumping the requirement up to 100 percent. Councilman Isaac said if the city institutes the 100 percent requirement and there was development, there would be construction of employee housing which would be a growth impact on Aspen. Richard Compton said 100 percent of the employees will have to be housed somewhere. Compton said if the 8 Regular Meetinct Aspen City Council April 25, 1988 employees are not housed, there will be increased competition among the existing new businesses for employees, which will drive costs up. Joe Wells told Council the Cordon's addition was about 1,000 square feet. If the upper end of the employee generated was used, that would be 10 full time employees for 1,000 square feet. Under the cash-in-lieu program that would have been $160,000 to $250,000. Wells said that cost exceeds the construction budget for the project. Wells encouraged Council to increase this requirement up to 50 percent as a first step of their goal. Margaret Albouy said the stated goal of the planning department is to maintain a balance between commercial space, bed and ski capacity. Ms. Albouy said last fall it was stated the town had 40 percent more commercial space than other areas. Ms. Albouy asked if the figures are going to be changed to try and address this. Fred Smith asked how long the service type uses would last if these buildings could command $120 per square f eet. Smith said the practical necessities would necessitate redevelopment of these type of properties. Walla asked why, if a developer builds their own housing, do people only get credit for building in the metro area. Walla suggested people get credit for building as far as Basalt. Perry Harvey said in the last couple of years there have been about 2,000 people housed in affordable housing in the Aspen area. Harvey said this is making progress. Harvey said the 100 percent will skew the growth and the rent patterns. Mayor Stirling said the residential housing system is not yet fully working; it is not known who is in the units and if they are the qualified people. Mayor Stirling said the Council does need to explore applying the housing requirement to more than just GMP projects. Mayor Stirling moved on 8-26, section 3 and every place it shows up that the Council would reduce from 100 percent the requirement of employee housing and go to 60 percent; seconded by Councilman Tuite. Mayor Stirling said he would like the planning director to look at some of the ideas that have been mentioned, like applying this to more than just GMP, giving incentives for construction of the housing. Councilman Isaac said he would prefer to change the requirement to 50 percent. Councilman Isaac said the city is sitting on money in cash-in-lieu. If this is translated into units, the city may not need to have this 60 percent requirement. All in favor, with the exception of Councilman Isaac. Motion carried. 9 Regular Meetin~_ Aspen Citv Council April 25, 1988 Mayor Stirling moved to amend 8-3(d) to no longer give Council any discretion for development allotments in future years and to repeal that subsection. Motion DIES for lack of a second. Mayor Stirling said a limiting factor like this would give a lot of people in the community assurance and confidence in the GMP that people are questioning right now. Mayor Stirling said he feels this is a more legitimate land use measure that would address some concerns of the community. Councilman Tuite said Council granted a future allotment recently; however, this was a trade. The city could have either allowed a lodge to be built or approve a residential project using future allocations. The residential project was preferred by the neighborhood. Dan Arrow requested Council reconsider cash-in-lieu of open space. Arrow said he feels cash-in-lieu will be grabbed up and there will be no open space. Mayor Stirling said this regulation gives flexibility to P & Z to either accept payment in lieu or require open space; there is discretion. Mayor Stirling said in the downtown the traditional lines are brought right out to the sidewalk. The current regulation is getting unusable open space. Mayor Stirling said he would rather stay with the traditional Victorian style and have cash-in-lieu to use to buy property that makes more sense in the scheme of things. Richman pointed out the criteria for having open space are when the building is located on a street corner, the open space can be linked to neighboring pedestrian amenities, or the open space maintains adjacent historic landmarks. Councilman Tuite asked what the in lieu calculation is. Richman said staff looked at the value of the land and multiplied it by the percent of the property that would have been required to be open space. Richman said the return value of development to the owner is what has to be paid. Richman said the money has to be spent in a rational nexus to where the benefit will be. Harvey asked if this money will go into the land fund or will it be separated. Richman said it will be a special account to be solely for the purchase or development of land for open space, pedestrian or recreational purposes within or adjacent to the CC zone district. Mayor Stirling said he feels this is a benefit to the whole community. John Walla asked why development of employee housing is restricted to the metro area. Richman said Council's determina- tion is if this is broadened to the entire Pitkin County area, all the housing will be produced down valley. With the transpor- tation impacts, the Council wants to see this housing happen in the metro area. Margaret Albouy said she hopes Council and staff keep a list of things that have been discussed that are not in the code, such as control of commercial space which is out of 10 Regular Meeting Aspen City Council AAril 25, 1988 balance with the other facets. Ms. Albouy said another is insuring there will be basic services lef t in Aspen. Ms. Albouy said another thing discussed was the need to develop a code for the permanent community. Ms. Albouy said she would like Council to discuss initiating a process to see that happens. Richman said staff has committed to come back to Council with a reassessment of the quotas. If the community is out of balance with commercial, readjusting the quota is the way to bring this back in balance. Richman agreed this needs to be done. Richman said the first thing that is needed is a place for the local community, an Aspen area land use plan. Richman said that has been a commitment of staff for some time and the time is needed to do this planning. Mayor Stirling read into the record a letter from Gibson & Reno challenging the 100 percent employee housing requirement. Richie Cohen urged Council to keep open the option of employee housing down valley. Cohen said in the next couple of years there could be ways a developer could provide housing down valley and provide some of the transportation costs back up valley. Ms. Albouy urged Council to begin with a citizen group to get input on the community's problems. Councilman Isaac moved to adopt Ordinance #5, Series of 1988, as amended; seconded by Councilman Tuite. Roll call vote; Council- members Gassman, yes; Tuite, yes; Isaac, yes; Mayor Stirling, yes. Motion carried. LIQUOR LICENSE HEARING - Down Under Australian Bistro Mayor Stirling opened the public hearing. City Clerk Kathryn Koch reported the file, posting and publication are in order. Tony Knowlson, manager, told Council he finds people in the restaurant are unable to have their requirements met with only a beer and wine license. Knowlson said he feels they would be able to serve the community better by being able to serve alcoholic beverages. Mayor Stirling asked if there is the need for the city to provide another license. Knowlson said his feeling is that people that use the restaurant would be best served if there was a wider range of products they could buy. Dan Arrow, owner of a restaurant which does not serve liquor, observed that the needs of the community have been met with the existing number of liquor licenses. Arrow said when Council changes its hat to a liquor license board, it becomes incumbent upon its members to consider an issue in a judicial rather than a political manner. Arrow said the question of government involve- ment with substance regulation may be unpopular or impractical. Arrow said a hearing is not the forum f or discussion of those 11 Regular Meeting Aspen Citv Council April 25, 1988 views. Arrows pointed out the factor which determines acce pt- ability of a liquor license is "need". This is the law of Colorado, and it is Council's obligation to honor that law whether they agree with it or not. Arrow said past licenses have been issued without weight of evidence, giving this Council the title of "rubber stamp". Arrows recommended if Council cannot reconcile their own political stand with their judiciary duty on this point, they appoint a liquor license board which can be non- political. Arrow said it is not good policy for a governing body to be so casual with the law; this breeds contempt and disregard for liquor laws as well as laws in general. Mickey Herron said he feels the community needs another res- taurant and a restaurant cannot compete without liquor. Herron said the liquor licensing authority is archaic. John Walla said the licensing is not set up by the city of Aspen but by the state of Colorado. Walla pointed out if people want these laws changed, they should petition the state. Walla said Down Under Australian Bistro currently has a beer and wine license. Richie Cohen said the liquor laws do govern places that have a "neigh- borhood" that needs to be addressed. Aspen is a tourist com- munity that serves the world. People are entitled to liquor with their meal if they want. Cohen said if a person wants to open a restaurant, they should be allowed to compete with the rest of the community. Mayor Stirling closed the public hearing. Councilman Isaac moved that based on the evidence presented at a public hearing held April 25, 1988, relating to the application of Down Under International Enterprises Inc., f or a three-way liquor license, the liquor licensing authority finds that the needs of the community have not been met and the license as applied f or is hereby granted; seconded by Councilman Gassman. All in favor, motion carried. John Walla filed a protest that the state laws say that need must be shown. Walla said there was not one bit of evidence shown by the applicant that showed the need for this application. Councilman Gassman said the discussion of need is preposterous. The town does not need one liquor license; nobody needs a drink. ORDINANCE X12, SERIES OF 1988 - Prohibiting Use of Right-of-way for construction materials Mayor Stirling opened the public hearing. Councilman Isaac moved to adopt Ordinance #12, Series of 1988, on second reading as amended; seconded by Councilman Tuite. 12 Rectular Meeting Aspen Citv Council April 25, 1988 Councilman Isaac said he has heard complaints about the construc- tion trailer at Little Nell. Fred Smith, Skiing Company, told Council it was by request of the city engineer that this trailer was moved to Durant. Smith said there will be changes in June which will move some of that fencing and by winter the construc- tion administration be in the actual building. City Attorney Taddune asked if Council wants to add a safety valve f or the ability to consider unique situations. Councilman Gassman said he is not interested in pursuing this. Councilman Tuite said he would be willing to consider such amendment. Councilman Isaac withdrew his motion. Councilman Isaac moved to bring this ordinance back at the end of the agenda; seconded by Councilman Tuite. All in favor, motion carried. LIQUOR LICENSE HEARING - Caf a Bonjour Mayor Stirling opened the public hearing. Mayor Stirling said this is a beer and wine license located on the lower level at 105 South Mill street. City Clerk Kathryn Koch reported the file, posting and publication are in order. Tony Mazza, applicant, told Council this premises was previously licensed as the Village Pantry with a beer and wine license. Mazza presented petitions supporting the issuance of this beer and wine license. Dan Arrow entered into the record the same statement he made for the previous license. Arrow said the way to address this is to change the law at the state level. John Walla pointed out -that this has previously been licensed within the two previous years, which may meet the needs and desires qualification. Janet Deane said it seems it would be a community needs to have a business be able to compete. If the liquor license is eliminated, there is a greater potential the business would fail. Mayor Stirling closed the public hearing. Councilman Isaac moved that based on the evidence presented at the public hearing held April 25, 1988, relating to the applica- tion of Aspen Cafe Restaurant Inc. f or a beer and wine license, the Aspen liquor licensing authority finds that the needs of the neighborhood have not been met and the license as applied f or is hereby granted; seconded by Councilman Tuite. All in favor, motion carried. Mayor Stirling stated that the Red Roof Inns will be tabled because the city does not have a contract. Councilman Tuite said he would like the city to formally request comments from the PCPA on the use of the Zoline property before this gets farther into the process. 13 Regular Meeting Aspen City Council Aril 25, 1988 ORDINANCE #12, SERIES_OF 1988 - Continued Alan Richman read (e) Appeals, "Upon application therefor, the city Council may grant relief from or vary the applicability of these limitations upon the finding of unique circumstances and community benefit". Councilman Isaac moved to amend Ordinance #12, Series of 2988, to add (e); seconded by Councilman Tuite. Mayor Stirling said this may make a mockery of the entire ordinance. Everyone will have some unique circumstance, and the Council will have hearing after hearing. Mayor Stirling said the point is to get construction off the city's right-of-way. Councilmembers Isaac and Tuite in favor; Councilman Gassman and Mayor Stirling opposed. Motion NOT carried. Mayor Stirling moved to adopt Ordinance #12, Series of 1988, as amended without (e); seconded by Councilman Gassman. Roll call vote; Councilmembers Isaac, yes; Gassman, yes; Tuite, yes; Mayor Stirling, yes. Motion carried. BUILDING PERMIT MORATORIUM City Attorney Taddune said staff has received no instructions from Council and has not prepared any legislation imposing a moratorium. Taddune reminded Council in the past staff has advised that moratoria are legally suspect and a dangerous mechanism without substantial justification. Richard Roth gave Council a minority position that was ignored when the Little Nell project was considered. Mayor Stirling said Council did receive and discuss the minority position. Roth said there is precedent in the city of Aspen for moratorium. Taddune said the city has used various procedures to minimize exposure to the city. Taddune said he has always given the same admonition to Council regarding the imposition of moratoria. Taddune said there have been cases that have imposed the possibility of damages against municipalities for implementing a moratorium that was not constitutionally supportable. This case is the Evan- gelical Lutheran case in California. Taddune said until that case, municipal attorneys were not certain whether or not the Supreme Court would authorize or whether a municipality would be liable for damages in an interim taking context. Taddune since the last discussion of moratoria, it is known if the city imposes a moratorium without proper due process, there is some exposure to the city. 14 Regular Meeting Aspen_City Council April 25, 1988 Roth proposed a moratorium on all projects of 50 or more units until a special binding election can be held to determine the future of Aspen. Roth asked that all excavating, demolition and building be halted on both the Little Nell project and the Hadid Ritz Carlton project. Roth said he is asking this because of the implications and ramifications for Aspen are so great. Neither project will improve the quality of life of the permanent residents of Aspen. Neither project serves the public interest. Roth said he believes these projects are to the detriment of all residents of Aspen. Roth said the impact of these projects is the new year-round workers, not seasonal workers, that will be added to the town. Roth said if one uses the figure of 1.5 employee per hotel room, the combined amount adds an additional 575 employees to the community, perhaps reducing this 75 employees that used to work at Little Nell's. This leaves 500 employees searching for housing in the Roaring Fork valley. If the developers provide 30 percent employee housing, that still leaves 325 new, permanent employees looking for housing. This will increase the demand for housing and will escalate the price of units. Roth said if one-third of these employees find housing in Aspen, that will still leave 215 people to find housing down valley and will cause more congestion on the highway. Roth said if only half of these employees use a car, there will be an additional 250 cars looking for cars in Aspen. Roth said there will be an additional need for child care. Roth said with the hotel projects needing 500 new employees, the large corporation will pay employees more than small businesses can afford. Roth said these developers are a major switch from small unique lodges to major hotels. 500 new employees will make everything in Aspen more expensive rather than cheaper. Roth said both the Little Nell project and the Hadid project will further segregate the community from the mountains and the view of the mountains. Roth said when these two hotel projects, in the future, are struggling to stay alive, will they come to Council and request to turn these projects into condominiums or time share projects. Roth said if there is to be massive growth in the community, the community should have the opportunity to vote on these issues. Participatory democracy in major decisions is a positive thing. Roth said the soul of Aspen is being challenged by large develop- ments. Roth said that notions that bigger is better is anti- quated thinking; that the town has limitless resources and does not have to worry. Roth said everyone has to be more thoughtful about their actions. If not, they will be stealing from future generations. Roth said the problems of housing, child care, air pollution, highway 82 congestion and parking will not get better 15 Regular Meetinct_ Aspen Citv Council April 25, 1988 by sitting on them. Positive steps must be taken; let the people decide and say yes to a moratorium and let people decide if they want these large developments. Richard Compton commended Council for all the work they have done on the land use code to try and address these problems. Compton said the work is not enough and not soon enough. The negative consequences will hit town before the ordinances will take effect. Compton said the town needs time to get a better look at the issues. Compton said growth in Aspen is no longer serving a functional purpose; skier days peaked 10 years ago. Compton said the number of employees in Aspen has been growing about 3.5 percent per year, and the number of tourists has remained very static. Compton said new development is displacing current employee housing. Compton said the market will destroy the community base which it needs. Compton said it is better to stop now and create a balance. Compton said the community is being forced to respond to finan- cial plans being drawn up in other cities and not responding to the demands of the realities in Aspen. Compton said in order to get everybody at the table and discuss the effects on the community, the town needs a moratorium. Compton said the two proposed hotels have been granted exemptions from code in the past which allows them to build to a size which is out of scale and which exacerbates problems of growth. Compton said he would like to see a referendum on these hotels to bring the projects back to the zoning code. Councilman Gassman said he has a great difficulty with a selec- tive moratorium that is just directed at two projects. Council- man Gassman said he has great reservations with both projects but they have both gotten to this point based on the city's regula- tions and bona fide approvals. Councilman Gassman said he feels what Roth and Compton are saying is right, but it is a little late. Councilman Gassman said there would be tremendous risk from the city's point of view to stop now. Councilman Isaac said the city's Charter and the state statutes mandate that land use decisions be made by elected officials. Councilman Isaac said he believes the Council was elected to make these decisions and they should make them. Councilman Isaac said he does not believe every land use decision should go to a referendum of the people. Councilman Isaac said public hearings were held on both of the hotel projects and Council heard concerns and statements from the citizens. Councilman Isaac said these decisions should be allowed to stand. Councilman Tuite said the applicants have acted on the guarantees given by the government. Councilman Tuite said people have to 16 Regular Meeting Aspen City Council April 25, 1988 trust the government when they give guarantees that they will go through with them. Councilman Tuite said he does have a problem with GMP where the town sees so much growth in one building season. Councilman Tuite said he is not prepared to disregard the guarantees that have been given. Roth said an issues is if the electorate is informed enough to make an informed decision on this issue. Roth said he feels the electorate should be given the chance to make this decision. Mayor Stirling said the Council is currently in discussions with one of the two projects. There is an opportunity that the community will come to decisions with the applicant that, hopefully, will be in the best interests of the community. Mayor Stirling said to start a moratorium process would have the possibility of chilling this process. Mayor Stirling said Compton and Roth have been eloquent spokespeople about the restraints of the town and about the key challenges that the town is facing. Mayor Stirling said in a small town, the Council is elected to handle certain decisions, and this is one the Council should handle. Compton asked what kind of procedures is Council willing to take to deal with the physical and economic limits to growth in this valley. Councilman Tuite said a vote of no growth would cause the property values to sky rocket. There would be no one working in this town. Councilman Tuite agreed there are problems and the Council has to work on them. WATER RATES Assistant City Manager Mitchell reminded Council after the April 7th work session on this issue, Council directed staff of com e up with some alternatives to deal with the issues brought up in the work session. Mitchell said the memorandum has two alterna- tiv es f or consideration. Mitchell said one of the main issues brought up in the work session was the amount of the demand charge under the water management billing system that was adopted. The first alternative is to switch all of the operating costs to the variable charge, which will reduce the demand and increase the variable costs so that more of the monthly bill will be related to the usage of water. This alternative also suggests to calculate the avoided cost charge, which is applied to people outside the city. People within the city limits have their property as collateral for the general obligation water bonds. Mitchell said it is an equity measure for people outside the city to have higher water rates because these are not covered by property taxes. Another portion of the first alternative is to reduce the ratchet effect on high consumption of water. Under the new system this is 30,000 gallons of water; staff is recom- mending this be reduced to 15,000 gallons. 17 Regular Meeting Aspen City Council April 25, 1988 Mitchell reiterated the main effect of this change is to mov e across from the demand charge to the variable, to give some relief to users outside the city, and to address the conservation issue by reducing the ratchet effect and to put more cost in the variable charge. Mitchell told Council the second alternative would be an interim suggestion to soften the effect of the current water billing system. Mitchell told Council staff still feels in all the analysis done that the basis of the water management billing system is sound, that it is an equitable system. Mitchell said the water management billing system does have a large impact on users who have a large number of water fixtures but do not use a lot of water. These users have been hit hard under this new billing system. Mitchell suggested coming up with an arbitrary service area factor; everyone within the city would be service area #1, everyone outside the city will be service area factor #2. Mitchell told Council these alternatives are adjustments that can be made fairly easily because they are just changes in the rates. Mitchell said the conservation issue is a valid issue and should have been addressed. Mitchell told Council the second alterna- tive has the same things as alternative one and in addition comes up with an arbitrary service area charge; people inside the city pay one rate and people outside the city pay a different rate. Mitchell recommended alternative #1 as staff f eels that the existing system has a sound basis. Staff will redo the calculations of how the service areas are calculated, how the capital costs were assigned, and verifying the charges. Mayor Stirling said staff shows that the fund balance by the end of 1988 should be $100,000. Mayor Stirling said if the Council chooses to come out with $25,000, how much of a decrease would there be on average. Craig Overbeck, assistant finance director, said he would have to do the calculation, but this would be spread equally to all users. Mitchell said this would be about 4 percent spread throughout the system. Mitchell said the new water system is driven by what budget the Council adopts. Once the Council adopts a budget, the water rates will be set to cover that budget, which includes debt service, operating costs and developing a fund balance. Mitchell told Council if the tap fees for new projects come in higher than budgeted, this will be applied to 60 percent of the debt service. Mitchell said one of the projections made in the proposed system is that tap fees will cover 60 percent of the debt service annually. This has not happened in the past nor 18 Regular Meeting Aspen City Council April 25, 1988 will it happen this year. The monthly water bills are absorbing more than 40 percent of the projected amount. Mayor Stirling moved to direct staff to come back with an ordinance on May 9th to amend the existing water management ordinance using alternate #1 as a way of beginning to make some adjustments to (1) switch the operating costs to variable charge as a conservation measure, (2) decrease the ratchet from 15,000 to 30,000 gallons, (3) avoided costs charges will be amortized over a 20 year period, and (4) reduce the proposed fund balance for the end of 1988 from a proposed $100,000 to no more than $25,000; seconded by Councilman Gassman. Councilman Tuite said he has a problem with ( 4) as the city does need to have reserves. Councilman Tuite said if the city goes to too low a reserve and something happens, the Council will be forced to increase the water rates. Mayor Stirling said he agrees with having a reserve but this is an unusual situation and the city is monitoring it very closely. Mayor Stirling fore- casted the city will end up with more than the projected reserve. Mayor Stirling said he wants citizens to know that the city is responding to them. Mitchell said the reasons f or developing a fund balance are to level out the fluctuations of tap fees and to try and soften the effect of any drastic changes in water usage. Councilman Isaac said the timing is bad because this is changing from a demand driven system to a usage driven system just when people are starting to use water more. Councilman Isaac said he would prefer to wait until fall to make this change. Councilman Gassman said he does not like the idea of stalling. Councilman Gassman said there are some inequities in the billing system. Councilman Gassman said he still has a problem with the enormous fluctuations in use factors. There is just too great a variation in these use factors. Councilman Gassman said everyone should share in paying for the system. Mitchell said that service area #3 generates only about 10 to 15 percent of the total revenues of the system. Mitchell said the reason service area #3 was hit hard is that people in that area have a high ECU count but low usage. Councilman Isaac said he would like to keep the cash balance increase in as recommended by staff. Mayor Stirling amended his motion to delete (4); seconded by Councilman Gassman. Overbeck said variances are alternate #2. the reason he recommends alternate #1 is that the not as glaring as either the existing system or 19 Regular Meeting Aspen City Council April 25, 1988 All in favor, motion carried. Mayor Stirling asked about the procedure for people paying under protest or paying a percentage of their water bill. Mitchell said staff will indicate there has been an adjustment in the billing system and they will be expected to pay their existing bills. MALL LEASES Assistant City Manager Mitchell told Council the Commercial Core and Lodging Commission has reviewed the mall lease agreement and has made some changes. The item in question is the proposed rate of $2.00 per square foot. Council asked that staff review that and look at how 52 compares to rental rates in the downtown area and to look at including in the rate the charge f or mall main- tenance. Mitchell told Council anywhere from $2.00 to $2.50 is reasonable comparing to what is being charged. Mayor Stirling moved to increase the rental rate from 52.00 to 52.50 per square foot; seconded by Councilman Gassman. Councilman Tuite asked if Council wants to address yearly increase. Mitchell said in the past the leases have been increased by the CPI on an annual basis. Mayor Stirling said he will that the increase that way until Council decides they want to address this again. Mickey Herron, representing 3 of the mall lessees, said he does not understand why the city would want to become one of the most expensive landlords in the city. Herron said most landlords have costs built in that the city does not have. Herron said staff memo points out that 52 is probably the average of what restaurant leases charge. The other factor is a maintenance factor, which is included in another other lease payment. Herron said if the city raises the amount of the mall lease, the restaurants will have to raise the cost of food. Herron said one of the greatest things in Aspen in the summer are the mall restaurants. Herron reminded Council in 1987 they increased the amount of the mall lease by 18 percent. This is an inflationary charge and the city should not be in a position of establishing rates on that basis. Councilman Isaac said he would prefer to see the rents raised 5 percent and go to 52.12. This would take care of the maintenance costs for the summer as outlined in the memorandum. Mayor Stirling said there is a tremendous advantage to being located in the mall; snow removal, landscaping and clean up is done by the city. Mayor Stirling said he feels 52.50 gets the rents more in line with other restaurants. Herron said restaurants doe not pay 20 Regular Meeting Aspen Citv Council April 25, 1988 the same type of rental that retail shops pay. Herron said there is no maintenance to the mall rental spaces. During the 3 months the mall leases are in effect, the owners maintain and insure that space. Herron said 52 is a fair rental price. Mayor Stirling said the payment is annualized but paid only for the time the restaurants are in the mall. Mayor Stirling and Councilman Gassman in favor; Coun cilmembers Isaac and Tuite opposed. Motion NOT carried. Councilman Isaac moved to approve the mall leases at 52.12 per month; seconded by Councilman Tuite. Councilman Isaac said a 50 cent increase is too much in one year. Councilman Isaac said it makes sense to tie this into a cost of living increase. Mitchell asked that Council approve the mall lease as in the packet. Councilman Isaac amended his motion to include the mall lease; seconded by Councilman Tuite. Herron objected as he has not seen the mall lease agreement. Herron said his clients had problems last year and wanted to re- work this with the CCLC. Mitchell said he understood that the mall lessees had seen this agreement. Councilman Isaac said if there are any problems with the lease itself, it should be brought back. All in favor, with the exception of Councilman Gassman. Motion carried. CITY COOPERATION WITH DESIGN WORKSHOP INTERN PROGRAM Mayor Stirling said this is a great opportunity f or the town. Mayor Stirling said the planning office should make the decisions on what the interns should do based on the presented list. Councilman Isaac said there has been a lot of discussion about the Koch lumber site, and he would like that added to the list. Councilman Tuite said he would like this list to be more specific and stay with projects which are on line, like the ice garden and the pedestrian and transit links. Mayor Stirling said he would like the Marolt property to be considered as an open space project. Mayor Stirling moved to leave the final decision up to the planning department with Design Workshop; seconded by Councilman Tuite. All in favor, motion carried. REQUEST FOR ENCROACHMENT - Nitze 21 Regular Meeting Aspen City Council April 25, 1988, Elyse Elliott, engineering department, told Council this is a request for encroachment at 420 West North street. There is a fence that encroaches 5 feet into the city right-of-way. Ms. Elliott told Council none of the referral agencies have any problems with this request. Ms. Elliott told Council the Nitze's do not currently own part of lot 13; however, they are proposing to do a lot line adjustment to obtain that lot. Ms. Elliott requested Council grant this encroachment license and make it amendable by staff if the Nitzes obtain the adjacent property. Councilman Gassman moved to approve the Nitze request for encroachment making it amendable by staff if the Nitzes obtain the adjacent property; seconded by Councilman Tuite. All in favor, motion carried. REQUEST FOR FUNDS - HPC Mayor Stirling moved to grant $250 to the HPC to do this out of the contingency funds; seconded by Councilman Tuite. All in favor, motion carried. ORDINANCE #15, SERIES OF 1988 - New Zoning Maps Councilman Isaac moved to read Ordinance #15, Series of 1988; seconded by Councilman Tuite. All in favor, motion carried. ORDINANCE #15 (Series of 1988) AN ORDINANCE OF THE ASPEN CITY COUNCIL ADOPTING REVISIONS TO THE OFFICIAL CITY OF ASPEN ZONING MAPS was read by the city clerk Councilman Gassman moved to adopt Ordinance #15, Seris of 1988, on first reading; seconded by Councilman Tuite. Roll call vote; Councilmembers Gassman, yes; Tuite, yes; Isaac, yes; Mayor Stirling, yes. Motion carried. ORDINANCE #17. SERIES OF 1988 - Housing Guidelines Councilman Isaac moved to read Ordinance #17, Series of 1988; seconded by Councilman Tuite. All in favor, motion carried. ORDINANCE #17 (Series of 1988) AN ORDINANCE ADOPTING THE 1988 HOUSING AUTHORITY QUALIFICATION GUIDELINES FOR LOW, MODERATE, AND MIDDLE INCOME HOUSING PROJECTS, RENTAL HOUSING PROJECTS, LODGE AND COMMERCIAL DEVELOPMENTS AND DEVELOPMENT OF EMPLOYEE 22 Regular Meeting Aspen City Council April 25, 1988 HOUSING UNITS AS SET FORTH IN THE HOUSING INCOME- ELIGIBILITY GUIDELINES AND HOUSING PRICE GUIDELINES OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE ASPEN AND PITKIN COUNTY was read by the city clerk Councilman Isaac moved to adopt Ordinance #17, Seris of 1988, on first reading; seconded by Councilman Gassman. Jim Adamski, housing director, told Council there is a change in the definition of full time employee. Adamski told Council the Housing Board is suggesting the definition go back to 30 hours a week, 9 months a year. Adamski said this definition more realistically defines an employee. Councilman Gassman said he thought this would mean a person would have to house 1.25 employees. Adamski said that was a discussion held and the definition went to the standard 2080 hours of work. Adamski said this is not accurate from the survey that has been done. Adamski said there are a lot of jobs in the community that are only filled 9 months a year. Councilman Gassman said this is taking a public subsidy so that people can take a 3 month vacation. Councilman Isaac said there are a lot of full time residents that do not work 12 months a year. Roll call vote; Councilmembers Tuite, yes; Gassman, yes; Isaac, yes; Mayor Stirling, yes. Motion carried. CITY ATTORNEY HIRING PROCESS Mayor Stirling said April 11th, City Attorney Taddune tendered his resignation. Mayor Stirling said the Council has to discuss the advantages of sub-contracting with a firm, whether they want to continue that or look for a full-time, in-house city attorney. City Attorney Taddune recommended having an executive session with his office to discuss legal matters, the city attorney function. Taddune said one of the motivating concerns is to make this economic given the city's work load. Mayor Stirling moved to schedule a work session for May 4th at 5:00 p.m.; seconded by Councilman Isaac. All in f avor, motion carried. At that time, Council can determine if they want to have an executive session. BUILDING DEPARTMENT City Manager Bob Anderson said he would like to ask Fred Crowley more about what he is proposing. Anderson told Council this is a complex situation and is a relationship between the community and the city. Councilman Gassman agreed he would like to meet with the county and discuss this joint department. Council scheduled this with the Commissioners at 4:30 p.m. on May 9th. 23 Regular Meeting Aspen City Council April 25, 1988 Councilman Gassman moved to adjourn at 9:07 p.m.; seconded by Councilman Isaac. All in favor, motion carried. Kathryn S., och, City Clerk 24