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HomeMy WebLinkAboutminutes.council.19890327Regular Meetinq Aspen City Council March 27, 1989 PROCLAMATION - Child Protection Week 1 PROCLAMATION - Sunshine Kids 1 CITIZEN COMMENTS 1 COUNCILMEMBER COMMENTS 3 ORDINANCE #4, SERIES OF 1989 - Ballot Questions 5 ORDINANCE #6, SERIES OF 1989 - Technical Code Amendments 15 LEASE AGREEMENT - Marolt Barn 15 ORDINANCE #7, SERIES OF 1989 - Substantive Code Amendments 15 ORDINANCE #15, SERIES OF 1989 - Centennial/Hunter Creek Annexation 17 PARKING STRUCTURE BID AWARD 18 GOLF COURSE PARKING LOT BIDS 18 ' 20 Regular Meeting Aspen City Council March 27. 1989 Mayor Stirling called the meeting to order at 5:00 with Council- members Isaac, Fallin, Tuite and Gassman present. PROCLAMATION - Child Protection Week Mayor Stirling and Council joined the county in declaring April 2 - 8 1989 as Child Protection Awareness week. Mayor Stirling read the proclamation and presented it to the Pitkin County Child Protection Team. PROCLAMATION - Sunshine Kids Mayor Stirling said the city is delighted to welcome the Sunshine Kids to Aspen for the third year. Mayor Stirling and Council declared March 27 to April 3, Sunshine Kids National Winter Games week. CITIZEN COMMENTS 1. Eve Homeyer, representing Westec Security, requested permis- sion to hang a banner on their building. Ms. Homeyer told Council Westec's building, the old Mesa Store on Main street, is celebrat- ing it's 100 year birthday. It is one of the few western-style building extant and preserved. Ms. Homeyer said Westec plans a benefit in the park next to their building this Fourth of July. n The banner will say 1889-1989 Mesa Store Building". Ms. Homeyer said Westec is very proud of their building and would like to call attention to it. Mayor Stirling asked if this request has gone to HPC for their recommendation. Ms. Homeyer said she went to the historic planner who sent her to the zoning enforcement office who sent this request to Council . Ms . Homeyer said she will be glad to go to HPC but she needs Council's approval to start the process. The HPC will go over the details. Ms. Homeyer said they would like to have this banner up through the summer. Ms. Homeyer said the banner will probably be 1 foot by 20 feet. Mayor Stirling said he would like to see the design for this banner. Mayor Stirling moved to put this on the agenda April 10, 1989; seconded by Councilwoman Fallin. All in favor, motion carried. 2. Jackie Broughton thanked Council for their decision on the James E. Moore pool. Ms. Broughton said the pool committee still feels they would like to go for a better bubble. This would be to the city's advantage. Ms. Broughton asked if it is all right for the pool committee to try and raise the additional money. Council agreed with the request and asked that it be coordinated with staff. 1 Regular Meeting Aspen City Council March 27, 1989 3. Joe Edwards advised Council the 700 East Main project has been sold. Edwards reminded Council there was a vote to extend the final plat. Council was concerned about having additional employee units. Edwards said the new project will reduce the free market units from 17 to 12 and increase the employee units from 1 one- bedroom apartment to 3 or 4 two-bedroom apartments. Edwards said the employee units will be limited only by the number of bedrooms that can be built on site. Edwards introduced Mr. Elmore and Mr. Yow, the purchasers. Edwards said the underground parking will be increased from 41 to 50 cars . Edwards presented a rendering of the project. 4. Sy Coleman said previously he commented on the diminution of parking spaces caused by new signs. Coleman said the new parking garage will cost $15,000 per space and the decreased parking cost the city $300,000. Coleman said some corners have no parking here to corner signs and some don't. Mayor Stirling read from the city manager's preliminary report on the observations of the corner at Hunter and Cooper. Coleman said the standards that are used are national standards and do not apply to a town like Aspen. Coleman requested a review of the applicability of these standards. Council requested staff to look at these standards. 5. Debbie Ayres acknowledged the voters who turned out for the annexation election. As a result, a lot of new voters will be brought into the city. Ms. Ayres thanked Jim Breasted and Fred Gannett for the effort they put into the election. 6. Jack Hatfield told Council he is concerned about the drug grant proposed by the police department. Hatfield said this smacks of a philosophy that does not fit in Aspen. Hatfield said the grant involves the encroachment of individual rights, snooping, gathering information use of high tech gear. Hatfield said people have found a utopia here, and he hopes that the Council will respect the philosophy that people moved here for. Hatfield said winning the war on drugs lies with children, not with a repressive police force. Education and rehabilitation are the way to proceed. John Goodwin, police chief, told Council the police department currently gets information regularly about people dealing drugs. Goodwin said the police department is not in a position to act on this information due to lack of manpower and time. Goodwin said the main reason he proposed this grant to Council is the money has been made available from Communities for a Drug Free Colorado. Goodwin said another reason is he sees things that need to be done to take into consideration citizen's concerns about how the work is done. Goodwin said it is important to get this discussion out in the community. Mayor Stirling said the grant is subject to final approval of Council, which will be done at a public meeting. 2 Regular Meeting Ashen City Council March 27, 1989 Hatfield said he would like to see this grant used for education of the community. Goodwin said this money has been earmarked for enforcement. There are other grants available for education. Sy Coleman agreed with Hatfield. Coleman said it bothers him to have the moral leadership of the community having the point men be the police department. Coleman said if there has been a change in the community, this should be expressed by the citizens and Council, not by the police department. Joe Edwards agreed with Hatfield. Edwards said the drug trade is corrupting the entire structure of the country. Edwards agreed the solution to the problem is education of children. Edwards said it has been nice to live in a community where the underground police versus the citizenry did not exist. COUNCILMEMBER COMMENTS 1. Mayor Stirling announced that the EPA has turned down the proposed Two Forks Dam. Mayor Stirling said Council was unanimous in it's objections to the Two Forks project and wrote letters opposing it. 2. Mayor Stirling urged Council to consider legislation that would ban the sale of furs in Aspen. Mayor Stirling requested the city attorney explore this legislation. Mayor Stirling said there is no way for the city to enforce the current legislation, which bans the sale of furs trapped with steel leg hold traps. Mayor Stirling moved to direct the city attorney to research this and bring a report back no later than April 24; seconded by Councilwoman Fallin. Councilman Isaac said he is concerned about how far this will go, like leather jackets and leather shoes. All in favor, with the exception of Councilman Isaac. Motion carried. 3. Mayor Stirling said there is a request to begin the process of relocating the city stables. Mayor Stirling said he is concerned about the sanitation and current condition of the stables. Deputy City Manager Ron Mitchell said the request is to allow the stables to start the process of relocation. Mayor Stirling requested the staff do a routine inspection of the stables to see that they meet the health standards. Terry Harp told Council there is a period between the freeze of winter and the thaw of spring when it is difficult to clean up. Harp said he is a little behind time as he has had a problem getting a dump truck. Harp said he will get it cleaned up this week. 3 Reaular Meetina Aspen City Council March 27, 1989 4. Councilwoman Fallin said the city manager requested Council write letters supporting and opposing some, state legislation. Councilwoman Fallin requested this be done quickly. Councilwoman Fallin moved that Council write letters supporting House Bill 1213, opposing House Bill 1190 and seeking amendments to House Bill 1299; seconded by Councilman Isaac. All in favor, motion carried. 5. Councilman Gassman said the city manager's memo states the city is limiting the search for a new public works director locally and looking for a planning director nationally. Councilman Gassman said Jay Hammond has done a terrific job and will be hard to replace. Councilman Gassman said there is a clear health effect which comes from how the public works department is run. Council- man Gassman suggested this is an influential position. Deputy City Manager Ron Mitchell said there are very qualified people in the valley and in city hall that may be applying for the job . Mitchell said the city manager is trying to expedite the process. Mitchell said if these applicants do not meet the high standards the city has, the search will be expanded. Mayor Stirling said there is a recommendation to appoint a Council person to serve on the selection committee for a new planning director. Councilwoman Fallin said she would be willing to serve. Mayor Stirling nominated Pat Fallin to serve on this committee; seconded by Councilman Tuite. All in favor, motion carried. 6. Fred Gannett, city attorney's office, requested Council add the first reading of an ordinance to enact the annexation of Centennial/Hunter Creek/Lone Pine. Gannett said this is an emergency ordinance and will require a second reading this week. The ordinance will take effect immediately upon second reading. Mayor Stirling moved to add Ordinance #15, Series of 1989, as action item VIII(e) for first reading; seconded by Councilwoman Fallin. All in favor, motion carried. 7. Deputy City Manager Ron Mitchell requested that golf course parking lot bids be added to the consent agenda. Mitchell told Council the bids are within budget. Mayor Stirling said Council had a meeting with the highway department last week. The highway department said one of their earliest priorities is a new link across the Maroon canyon. Mayor Stirling said before the city spends $10 0 , 0 0 0 , they need to know when the parking 1 of may be torn up. Bill Efting, leisure services department, said to get the contractors for this spring, this project is overdue. Mitchell said staff will contact the highway department to see if they have preliminary plans. 4 Re ular Meetin As en Cit Council March 27 1989 8. Deputy City Manager Ron Mitchell requested Council add to the consent agenda Terry Harp's request to be able to start the application for moving the stable. 9. Deputy City Manager Ron Mitchell said there is concern from the lessee's about when the pay the mall leases, whether it is the 1st or 15th. Mitchell recommended this be left to the discretion of administration for each individual lease. Councilman Tuite moved to approve the consent calendar as amended; seconded by Councilwoman Fallin. The consent calendar is A. Deferred Compensation Contribution of Overtime B. Hotel Aspen Amendment to Condominium Plat C. Callahan Plat Amendment D. Minutes - March 13, 1989 E. WAPA Power Contract Amendment; Resolution #13, 1989 F. Liquor License Transfers - (1) The Hickory House; (2) Espana G. Liquor License Renewals - Tenth Hole Bar & Grill; Asia H. Mall Leases I. City Stables Relocation Process All in favor, motion carried. ORDINANCE #4, SERIES OF 1989 - Ballot Questions Mayor Stirling opened the public hearing. Councilwoman Fallin moved to approve question #1, limiting Council to not more than 2 four-year terms; seconded by Councilman Isaac. Joe Edwards said this is a good idea and is healthier for the process. Chris said he feels there is a strong awareness in the community and if people are willing to serve more than 8 years, they are bring in a wealth to the community. Chris said it should not be restricted. Councilman Gassman said making this a statutory requirement takes responsibility away from the electors. Council- man Isaac said although he is opposed to this issue, it did go to a county vote and was passed. All in favor, with the exception of Councilman Gassman and Mayor Stirling. Motion carried. Fred Gannett, city attorney's office, told Council there are two questions in a separate resolution, one changing the amount of bond for the Red Roof Inns question, and a Charter amendment initiated by petition. Gannett told Council he feels these can all be added to the ordinance, rather than have an ordinance and resolution. 5 Reaular Meeting Aspen City Council March 27. 1989 Mayor Stirling moved to include the Red Roof Inns question in Ordinance ##4 ; seconded by Councilman Gassman. All in favor, motion carried. Question #2 is the issuance of a general obligation bond not to exceed $4,600,000 for the purpose of renovation of that property formerly known as the Red Roof Inn for employee/MAA housing purposes and reimbursing the city for previous capital expendi- tures. Mayor Stirling said the costs have gone from $2,700,000 to $4,600,000. The construction costs have increased from $78 per square foot to $95. The rents will be increased to $275. Jim Adamski, housing office, told Council this project is still in the planning process. The earlier figures were based on models only. Adamski told Council there is a task force made up of interested citizens working on this project. Adamski said one of the assumptions was there would be two people to a room. Adamski said people are interested in privacy and sharing common areas. Adamski told Council the number of people housed has gone down and the square footage has gone up. Adamski said this will be a much better project . Adamski said the cost of $4,600,000 also covers $400,000 of rehabilitation to the existing structure and $1,000,000 to pay the city. The actual construction costs, less the tap fee, are about $80 per square foot. Adamski said staff intends to keep the project below $4,600,000; however, all the costs are not set. Adamski said there will be 92 rooms in the addition. Adamski told Council the sewer and plumbing at the Red Roofs will have to be upgraded. The roof needs work. Adamski said most of the improve- ments are health and safety related. Dick Butera said there is also $1,000,000 in the Red Roof that the city could get from selling the property, which makes the total value of the project $5,600,000. Butera said the city would be paying $60,000 for each person to sleep there. Butera told Council he houses employees for $19,000 each. Butera urged Council to think about a philosophical change in housing employees. Adamski said there will be 142 employees housed in the winter in the addition and 100 in the existing building. Bil Dunaway said 500 square feet is larger than many studios in town and people living alone would be content with smaller units. Councilwoman Fallin asked how the housing authority become the developer rather than the catalyst to bring in the private sector. Adamski said no private sector has come in on the Red Roof. Adamski told Council the reason the project works is the 7.7 percent financing. The city cannot finance a general obligation bond and give it to the private sector to own. Adamski said the private sector will design, build and possibly operate the project. The ownership has to lay with the city if this type of bond is 6 Regular Meeting Aspen City Council March 27, 1989 used. Deputy City Manager Ron Mitchell reminded Council they directed the housing authority to come forward with a proposal to develop employee housing at the Red Roof. Jon Mulford, PCPA, told Council they support the Red Roof employee housing project and support the issuance of the bonds. Mulford questioned whether this is still going to be an M.A.A. project or is going to benefit other sectors of the community. Mulford said there is a bond counsel opinion that no long term rental agreement should be entered into with the M.A.A. Mulford asked that Council consider reimbursing the sixth penny 1 and fund for the value of the land used for this project. Adamski said using this financing, the city cannot lease to a private company. Gannett said a private entity is where more than 10 percent of the bond annually or over the life of the bond is secured by a long term lease. Steve Knous, M.A.A. told Council they plan to use the Red Roof as an interim measure for their students. If and when Marolt is developed, they will move the younger students there. Knous said they will still use as much of the Red Roof as they can. Adamski said this project is designed to be flexible and the apartments can be converted to two-bedroom apartments. Dick Butera said he is not sure it is the obligation of homeowners to finance businesses' employees. Councilman Tuite said if this is done properly, it should not cost the taxpayers any money. The city is issuing a general obligation bond to be paid back out of rents generated. Councilman Isaac said he feels it would be helpful before the election to have a study session and go over this proposal and see if the cost of the bonds can be reduced. Mitchell said the $4,600,000 is a maximum., Mitchell said in the process of approving the development is when Council will hone down the specifics. Adamski said the staff, task force and housing authority are trying to create affordable housing in a quality project. Adamski said staff will be looking at reducing the size as much as possible. Councilman Tuite moved to approve ballot question #2 issuing $4, 600, 000 general obligation bonds for the Red Roof Inns; seconded by Councilman Isaac. Councilwoman Fallin said the city needs to have a public meeting on this project; what the city is getting and what it will be for. Councilwoman Fallin said at the election last summer, the voter voted on this question thinking they were helping the M.A.A. with their housing shortage. Councilwoman Fallin said the city should find out exactly how much this is going to cost and what the project will look like. Councilwoman Fallin said the project cannot keep changing. Councilman Gassman said this seems to have shifted from being primarily M.A.A. non-profit housing to being 7 Regular Meeting Aspen City Council March 27, 1989 just employee housing. Councilman Gassman said as that happens, he questions how much the taxpayers want to subsidize the busi- nesses. Councilman Gassman said at the same time the project has gotten bigger and more expensive. All in favor, with the exception of Councilman Gassman. Motion carried. Council scheduled a work session on the employee housing projects at the Red Roof and Marolt property for April 17 at 5:00. Ballot question #3 is a proposal to use a portion of the Marolt property for M.A.A. employee housing purposes. Mayor Stirling asked if it would make more sense to have this proposal more definite before the question goes to the voters. Steve Knous, M.A.A., told Council they would like to get the question approved and the dispute over the legal description cleared up before going through the whole process.. Knous said the M.A.A. is very suppor- tive of the Red Roof in and will use it to the extent they can. Knous said the M.A.A. has a need for almost 1400 beds. The Red Roof Inns can only supply 300. Knous said the M.A.A. looks at the Marolt project as the jewel of the long term housing. Knous said the Marolt is a good location; it is close to the M.A.A. campus and is close to town. The bus service is a lot better in this location. Don Ensign, Design Workshop, presented a map indicating the history of what has been requested for this project. Ensign pointed out the 10 acres on the initial ballot question, the 8.5 acres the M.A.A. originally intended, and the 6.9 acres they would like to use. Ensign showed lot 1, initially approved in the Marolt project. Ensign said the M.A.A. feels comfortable with the 6.9 acres but is not prepared to say exactly how much land they will need. Ensign said this site is the least visible and the furthest from highway 82. Ensign said the conceptual design is for 300 beds in 50 units with 4 pods per units; one pod will be a living unit. There will be some common areas for practice, laundry, and television. Ensign said there will be a cafeteria of about 60, 000 square feet. Ensign said they are planning .3 cars for music students and .6 cars for winter residents, which is consistent with the Red Roof program. Ensign said they are looking for an area off site to put cars. Ensign told Council the M.A.A. has housing secured through this season. Beyond that there is no security. Ensign as housing gets more expensive, fewer students can come for the summer season. The key intent in this proposal is to secure housing for the M.A.A. in perpetuity. 8 Regular Meeting Aspen City Council March 27, 1989 Jon Mulford, PCPA, told Council they have met with the M.A.A. and are getting closer in terms of the parcel that may be used. Mulford said the PCPA is concerned that in this area there is the proposed M.A.A. project, the Castle Ridge housing, a new human services building, assisted living facilities, and employee housing for the housing. Mulford suggested overall planning for this area is needed and delaying this decision until the overall plan has been done. Mulford said in the original Marolt plat there was open space dedicated in perpetuity. Lot 1 was dedicated for 70 units of employee housing in the original plan. Mulford said the PCPA feels the open space can be preserved and a project designed for lot 1 which is not restricted to open space. Mulford said the PCPA is recommending that lot 1 be the question on the ballot. Joe Edwards said in the proposed Meadows plan, the race track is proposed open space. Edwards said the race track is more than this acreage. Edwards said the city bought the Marolt property in order to prevent development and to preserve the entrance to town. Edwards said this development is proposed on open space which residents see daily as the entrance to town. Edwards said the race track at the Meadows is a better location for a campus for the M.A.A. Al Blomquist said this project and that at the Red Roof will have 600 beds with no market analysis to know whether the city needs 600 beds for the winter employees. Blomquist said this should be taken off the ballot while planning for the whole area is done. Mulford said the PCPA feels the sixth penny land fund should be reimbursed if this parcel is used for housing. Mulford said there is some doubt that this project may have financing problems and might not meet the long term needs of the M.A.A. Rachel Richards said the Marolt property has the same value as the gateway to Aspen as Stillwater east of town. Ms. Richards said there is a need for employee housing but this type of dormitory housing may not be meeting the needs of locals. Ms. Richards said the highway will take a major swath through this property. Ms. Richards said the M.A.A. will only be using this project 20 percent of the year, the rest will be a subsidy for private developers. Ed Zasacky questioned how much the community owes the M.A.A. when they are only using this a small part of the year. Zasacky said it is premature to put this on the ballot. Hal Clark said one of the major reasons the Marolt property was purchased was to try and reduce the congestion at the entrance to town. Clark agreed that the major users of this site will be the businesses in town and questioned subsidizing $4,000,000 to that program. Clark said this will not be a benefit to existing employees but will be a major benefit to employers. Clark said existing employees will have to move out of the units in the summer. 9 Regular Meeting Aspen City Council March 27, 1989 Knous said the longer the M.A.A. has to wait, the more in jeopardy their housing situation becomes. Butera said the County Commis- sioners have tried to protect the entrance to Aspen. There will now be 3 violations of this, including the Red Roof and this project. Bil Dunaway said the voters supported this question last August. This is the least visible site on the Marolt property. Dunaway said it would be remiss not to get this on the ballot and clear up the technical difficulties created by the Pitkin County Parks Association. Councilman Isaac moved to put question #3 on the ballot as amended with 6.9 acres with a metes and bounds description; seconded by Councilwoman Fallin. Mayor Stirling said last August the voters supported this on 10 acres. Mayor Stirling said the future of the M.A.A. was in jeopardy. Mayor Stirling said it is important to view the entire town as a campus and to stabilize housing for the M.A.A. and for the employees. Councilman Tuite said there has been a lot of negativism in this meeting. Councilman Tuite said the town needs the M.A.A. Councilwoman Fallin said this was approved last August by the voters and it is only by a legal fluke that it has to be on the ballot again. Councilwoman Fallin said it would be wrong not to place this on the May ballot. Councilman Gassman said he has not changed his opposition to this but supports putting it on the ballot because it passed the first time. Gannett said he will have a small map printed as part of the question. All in favor, motion carried. Question #4 is a real estate transfer tax at 5 percent over a 10 year length, declining 1 percent every two years. The tax is designated for the purchase of sites to be used as employee housing, to buy existing structures for employee housing and to repay the land fund for open space used as employee housing. Mayor Stirling said this would apply to all sales in the city with the exception of the those transactions exempted on the current real estate transfer tax. Alan Blomquist urged Council put in an exemption on the first $100,000 as an incentive for lower cost housing and to recognize the purpose is to improve employee housing. Deputy City Manager Ron Mitchell said the exemption for the first $100,000 would exempt time share sales. Mitchell said if the city is trying to exempt deed restricted units, it would be more effective to specifically exempt those. Blomquist said in time share, the city should require that the price paid be annualized. Dick Butera said this is the highest transfer tax in the country. Butera said the only persons who will not get hurt by this type of tax are the speculators. Butera said this will penalize 2 or 3 10 Regular Meeting Aspen City Council March 27, 1989 percent of the population to the detriment of the rest. Butera said these people did not cause the employee housing problem. Butera said this tax is very regressive. Jim Adamski, housing office, said the owners of deed restricted units should not be penalized. Butera said there are a lot of people who live in units which are not deed restricted. Bil Dunaway asked if the reductions start after the ordinance is adopted or does it pertain to ownership in the past. Gannett said after the effective date of the ordinance, the predecessors in title's interest will be examined. If it has been held for 10 or more years, there is no cost to the buyer. Rachel Richards said if the nature of this tax is to discourage speculation and to force speculation to pay for development costs, that is fine. If it is a mechanism to raise revenues, it is an inequitable way to raise revenues. Ms. Richards said a true anti- speculation tax should be 30 or 40 percent on the capital gains. Ms. Richards said a tax like this might force a lot of convoluted real estate deals. Ms. Richards said this tax might restrict the flow of low income units in the market. Mary Martin said she is opposed to this tax because it is inequitable. Ms. Martin suggested the city go to the businesses in town and have them contribute to an employee housing pool. Tom Oken, representing the Commissioners, told Council the county supports going forward with the real estate transfer tax proposal. Perry Harvey asked if there is a review period on this tax. Mitchell said Council could eliminate this tax. Harvey asked if this applies to properties already under contract. Gannett said the tax is due at closing. Harvey said people have made commit- ments for property that may not close until after this tax is in effect. Rick Neiley said he feels this tax is too long and would have an inequitable effect on some segment. Butera said tax questions on ballots have lost in the past because there is no plan. Butera said this tax would be raising a nebulous amount of money for a nebulous purpose. Butera said this tax is not calculable. Hal Clark said the PCPA supports some kind of real estate transfer tax and encourages exemptions for $100,000 or deed restricted units. Clark urged Council to have a lower tax with an exemption. Councilwoman Fallin said she is concerned about pressure being put on houses owned over 10 years . Councilman Tuite agreed if this tax is too excessive, it will fail. Councilman Tuite said he feels 5 percent is too much and 10 years is too long. Councilman Tuite said any one who owns their home for 5 years has not been in a speculative market. Councilman Tuite said he would like to see an exemption for deed restriction units and for the f first $100,000. 11 Reaula_r Meetina Aspen City Council March 27, 1989 Councilman Tuite said the tax should be 2.5 percent, decreasing 1/2 percent per year and the tax is eliminated after 5 years. Councilman Gassman said he does not feel this tax will have any effect on speculation. Councilman Gassman said he cannot under- stand why there should be a declining rate. If the city is going to raise money through a real estate sales tax, it should be a flat rate. Councilman Gassman said the exemption should be between $250,000 to $300,000. Mayor Stirling said a lot is going on in the city and county to try and respond to the housing challenge. There are proposals for the Red Roof, Marolt and at the hospital. The city has amended the land use code and is talking about zoning relief for PMH projects. Mayor Stirling said the city should address what they want to achieve with this tax . The city does not have a source to purchase units or land for employee housing, and the purpose of this tax is to buy site or buildings and to repay open space funds. Mayor Stirling said this is an unreliable tax and the city cannot bond against it. Mayor Stirling said this will protect open space. If the tax is not too high, it will not effect the market. Mayor Stirling said he would agree with exemptions for deed restricted units and/or $100,000, not more than 2.5 percent and a limit of 5 years. Councilman Tuite moved the tax be 5 years; seconded by Councilwoman Fallin. All in favor, motion carried. Councilman Tuite moved that the tax be 2.5 percent, reduced 1/2 percent per year; seconded by Councilman Isaac. All in favor, with the exception of Councilmembers Fallin and Gassman. Motion carried. Councilman Isaac moved to exempt deed restricted employee housing; seconded by Councilwoman Fallin. All in favor, motion carried. Mayor Stirling moved to exemption the first $100,000 of every transaction excepting time share; seconded by Councilman Tuite. All in favor, with the exception of Councilmembers Isaac and Gassman. Motion carried. Councilman Isaac moved to place transfer tax as amended on the Tuite. All in favor, with the Motion carried. ballot question #4, real estate ballot; seconded by Councilman exception of Councilman Gassman. Question number 5 is the lease to the Historical Society for the barn on the Marolt property. Rick Newton, representing the Aspen Historical Society, requested Council put this on the ballot. Newton said the Historical Society has done a lot of work in trying 12 Regular Meeting Ashen City Council March 27, 1989 to save the structure and use the open space as a historical park. Newton said they are not advocating changing the exterior grounds. Newton said they feel the proposed use of the building will generate a lot of community interest. Graeme Means said this is not an illegitimate use of open space. Means said this building should be open and accessible to people. Jon Mulford told Council the PCPA voted to support this proposal. Sy Coleman asked if there couldn't be an arrangement other than a 75 year lease to encourage the Historical Society to restore the facility. Means said the 1.9 acres encompasses the barns and ground associated with it. Means said the Historical Society is willing to look at less than 1.9 acres but they feel the yard should be included. Newton told Council the only access will be across the Marolt bridge. There will be no motorized access except to get exhibits in or out. Andy Bigford asked where this area falls on the 1981 Marolt plat. Fred Gannett said this is all within lot 2. Newton told Council most of the exhibits will be inside the building; there will be some equipment on display outside. The small building will be used as a shop to restore the equipment. Councilman Isaac moved to place question #5 on the ballot; seconded by Councilman Tuite. All in favor, motion carried. Mayor Stirling moved not to place question #6 regarding the city hall annex on the ballot; seconded by Councilwoman Fallin. All in favor, motion carried. Councilman Isaac requested Council schedule a study session to address the space issue of the existing city hall. Councilman Tuite moved to place question #7, the issue of fluorid- ating the city's water on the ballot; seconded by Mayor Stirling. All in favor, with the exception of Councilman Isaac. Motion carried. Mayor Stirling moved not to place either highway question on the ballot; seconded by Councilwoman Fallin. All in favor, motion carried. Mayor Stirling said the EIS will not be completed until either May or June and Council may schedule a special election in the summer for this issue so the voters can give their preference and have it go into the final EIS. Mayor Stirling said the final issue is a Charter amendment petition from Mary Martin to change the municipal elections from spring to fall. Councilman Tuite moved to place the issue on the ballot; seconded by Councilman Isaac. 13 Re ular Meetin As en Cit Council March 27 1989 Mayor Stirling said Mary Martin has been working with the city attorney's office to come up with some language to solve the problems in this question. Fred Gannett, city attorney's office, told Council the way the language has been structured, this question would not effect the candidates in this May election nor would it effect the terms of the two existing Councilmembers. Gannett said this Charter amendment, if passed, would take effect at a general election in November 1990. The terms would take effect June 1, 1991, so that all presently elected people would fill their terms. This would keep the cycles of the staggered system in tact. Mary Martin told Council this petition is from the People's Rights Organization. Councilman Isaac said the people who are elected in November 1990 will not serve for six months. Gannett said you cannot infringe on the terms of presently elected parties. Gannett said the way to do this is put up an election where notice is given to all candidates that their terms may be abbreviated so that all candidates and voters know what the length of the term will be. Councilwoman Fallin said when she was president of the League of Women Voters, the then Council requested they study whether it would be of greater benefit to the people to hold the election in November as opposed to May. Councilwoman Fallin said they found the date of the election had no bearing on the turn out; it was the issues . The smallest turn out was in February and the largest turn out was in the end of April. Councilwoman Fallin said the percentage of voters voting in the city election was about equal to the percentage of voters voting in the general election in the county. Councilwoman Fallin said the LWV recommended there be no change in the election date because this allowed the city to focus on their own issues without those being obscured by national, state and county issues. Mayor Stirling said he likes the municipal elections because they are short and are not mixed up with state, federal and county issues. Mayor Stirling said he opposes this issue. Councilmembers Isaac and Gassman agreed. Councilman Gassman said he thought this petition was too late to get on the ballot. Mayor Stirling said the city was at fault in the information given out, and in light of that he will support putting it on the ballot. All in favor, with the exception of Councilman Gassman. Motion carried. Robert Christiansen requested the fluoride question be changed from "potable water system" to "public water supply". Council agreed with that change. 14 Reaular_Meetina Aspen City Council March 27, 1989 Councilman Isaac moved to adopt Ordinance #4 , Series of 1989 , on second reading as amended; seconded by Councilman Tuite. Roll call vote; Councilmembers Isaac, yes; Tuite, yes; Fallin, yes; Gassman, yes; Mayor Stirling, yes. Motion carried. ORDINANCE #6. SERIES OF 1989 - Technical Code Amendments Mayor Stirling opened the public hearing. Councilwoman Fallin moved to adopt Ordinance #6, Series of 1989, on second reading, as amended; seconded by Councilman Gassman. Alan Richman, planning director, told Council minor changes have been made to the ordinance which were discussed at the last public hearing. Richman said a new item #24 states that parking is set by special review for residential for affordable housing. Mayor Stirling closed the public hearing. Roll call vote; Councilmembers Tuite, Yes; Gassman, yes; Fallin, yes; Isaac, yes; Mayor Stirling, yes. Motion carried. LEASE AGREEMENT - Marolt Barn Mayor Stirling moved to continue the Marolt Barn lease agreement until after the May 2nd election; seconded by Councilman Isaac. All in favor, motion carried. ORDINANCE #7, SERIES OF 1989 - Substantive Code Amendments Mayor Stirling opened the public hearing. Alan Richman, planning director, said the alternative ,in the ordinance currently is that duplexes are a conditional use in RMF, office and C-1 zone districts. Richman said at the last meeting, Council discussed how good a tool is conditional use. Richman said the conditional use may not be a good tool. The compatibility criteria with the existing mix of uses and architecture, almost anything can be found compatible. Richman said if affordable housing is Council's goal; conditional use is the wrong tool. Richman said an alternative is prohibiting duplexes. This will not provide affordable housing and will create non-conforming uses. Richman said this is not a problem in C-1, where there is only 1 duplex; however, it would be a problem in office and RMF. Another alternative is to keep duplexes as permitted uses but requiring one of the two units to be a deed restricted unit. Richman recommended a deed restriction to middle income guidelines. Richman said this addresses the affordable housing issue and may also do something for the scale issue. The last alternative is to 15 Reaular Meeting Aspen City Council March 27, 1989 require duplexes to compete in the GMQS . Richman said this may not be a good solution as duplexes may not be able to complete effectively. It is a major review burden but will deal with affordable housing and neighborhood compatibility. Richman suggested in the C-1 is to prohibit duplexes and for office and RMF allow duplexes but requiring that one unit be an affordable housing unit. Councilman Gassman said he likes the suggestion. Councilwoman Fallin stated she opposes duplexes in the C-1 zone as she does not want to see any more erosion of the zone which is to provide local services. Councilwoman Fallin said the problem with allowing duplexes with an affordable housing unit is it does not address the compatibility with the neighborhood. Richman agreed it will not get to that level. Richman said the allowable FAR in the RMF and office zone is .6:1, which will make the duplexes in scale with the surrounding neighborhood. Mayor Stirling moved to prohibit duplexes in the C-1 zone and in the office and RMF zone require that any duplexes require the second unit be deed restricted; seconded by Councilman Gassman. Rick Neiley said in the RMF zone a person can build a single family dwelling with an accessory dwelling unit and questioned why anyone would build a duplex that had to be deed restricted. Richman said that applies to more than just the RMF. Richman said this is an intent to narrow the range of options in the RMF so that it is used for multi-family housing. Richman said people would build duplexes because they get a higher FAR. Richman said he does not feel that middle income units are a complete loss. All in favor, motion carried. Richman said the next issue is the FAR bonus in the RMF zone. Rick Neiley said one of the ways the city can mitigate the burden of providing affordable housing is with the FAR increase. Neiley said the Valley High property could remodel and upgrade and remove the existing units from the employee market place. Neiley said they would prefer to demolish the building and have a project that makes sense for both the free market and affordable housing. Neiley said this ordinance would require them to apply a substantial portion of the FAR to affordable housing. Neiley proposed a 15 percent FAR increase, which for the Valley High represents less than 2,000 square feet, and 100 percent of the FAR bonus would be used for affordable housing. Neiley said this ordinance proposes a 10 percent FAR increase and 2/3 of that would have to be used to increase the size of affordable housing units. Neiley said he does not feel this FAR increase proposal will be used by anyone. 16 Regular Meeting Aspen City Council March 27, 1989 Neiley said there is no economic way to contribute 2/3 of the FAR increase to affordable housing and 1/3 to free msaid the only way to be able to get a return on your money. Neil y the city is going to see any development of affordable housing in the RMF district is to give some incentive. Currently there is no incentive for redevelopment which would result i an FAR bonuslthat housing. Richman said the city should not adopt is not going to work. Richman said he does not feel more FAR is needed in the city's neighborhoods right now. Richman said Neiley's proposal of 100 percent of the FAR bonus being used for affordable housing units means that 100 percent of the 1:1 will be used for free market units. Richman told Council P & Z's proposal is that a person has to provide affordable housing on site and it is part of the 1:1 FAR; the bonus is used to increase the size of affordable housing units, not meet the minimum requirements. Richman said every square foot of residential space allowed in money in the developers pocket, which outweighs the $60 per square foot for affordable housing. Richman said the low income units is only when a developer takes down a certain amount of units and builds back less than half of that number. Richman said if the 1.1:1 does not work, he would be inclined not to support a bonus at all. Mayor Stirling moved to suspend the rules and extend the meeting for 10 minutes; seconded by Councilman Tuite. All in favor, with the exception of Councilman Gassman. Motion carried. Mayor Stirling moved that this stay as it has been presented by P & Z; seconded by Councilwoman Fallin. All in favor, motion carried. Mayor Stirling moved to continue the public hearing on Ordinance #7, 1989, to April 3, 1989, at 6:30 p.m.; seconded by Councilwoman Fallin. All in favor, motion carried. Mayor Stirling moved to continue the public hearings on Ordinances 8 , 10 , 13 , and 14 to April 3 , 1989 ,, at 6 : 3 0 ; seconded by Councilman Tuite. All in favor, motion carried. ORDINANCE #15, SERIES OF 1989 - Centennial/Hunter Creek Annexation Councilman Isaac moved to read Ordinance #15, Series of 1989; seconded by Councilman Tuite. All in favor, motion carried. ORDINANCE #15 (Series of 1989) AN EMERGENCY ORDINANCE ANNEXING TERRITORY TO THE CITY OF ASPEN AS REFERRED TO AND DESCRIBED IN THE PETITION FOR ANNEXATION ELECTION TERRITORY TO THE CITY OF ASPEN 17 Re ular Meetin As en Cit Council March 27 1989 CERTIFIED BY THE CITY CLERK KNOWN AS CENTENNIAL/HUNTER the city clerk ON JANUARY 23, 1989, COMMONLY CREEK/LONE PINE was read by Councilwoman Fallin moved to adopt Ordinance #15, Series of 1989, on f first reading; seconded by Councilman Tuite. Roll call vote; Councilmembers Gassman, yes; Tuite, yes; Isaac, yes; Fallin, yes; Mayor Stirling, yes. Motion carried. Mayor Stirling moved to continue the meeting to Wednesday, March 29, 1989,m at 5:00 p.m. in order to have final consideration of Ordinance #15; seconded by Councilwoman Fallin. All in favor, motion carried. PARKING STRUCTURE BID AWARD Deputy City Manager Ron Mitchell told Council staff met with the two low bidders, negotiated with them and got them to come up with some ways of lowering the costs . Mitchell told Council PCL was the low bidder at $5,464,230. Mitchell requested Council approve that and approve negotiating a contract with PCL and authorizing the Mayor to sign the contract subject to the city attorney's final approval. Councilman Isaac moved to approve negotiations of contract with PCL; seconded by Councilman Tuite. Councilwoman Fallin asked if the items taken out of the contract will degrade the project. Mitchell said on April 3 he will have the design consultant go over the changes with Council. Mitchell said none of the changes will effect the representations made to the community about the design or visual effects of the parking structure. The changes are internal. Councilman Gassman said reducing landscaping is a change. Mitchell said this is in minor sizing, not in numbers. Mayor Stirling said reducing the number of light fixtures is a safety factor. All in favor, motion carried. GOLF COURSE PARKING LOT BIDS Mayor Stirling said his concern about this is putting $100, 000 into the parking lot and then have the highway go through this parcel. Mayor Stirling said this money may be better spent on the golf course itself. Deputy City Manager Ron Mitchell reminded Council the parking lot has been one of the biggest complaints for years. The parking lot creates a lot of dust. Mitchell suggested staff find out where the highway department plans on putting the road. Mayor Stirling suggested chipping and sealing the parking lot to reduce the dust. Mitchell said this project might be scaled down. 18 Re ular Meetin As en Cit Council March 27 1989 Mayor Stirling moved to direct staff to consult with the highway department to find out as much as possible about the alignment of the bridge, come back with a reduced proposal, and also consider ship and seal; seconded by Councilwoman Fallin. All in favor, motion carried. Mayor Stirling moved to continue the meeting to March 29, 1989, at 5:00 p.m.; seconded by Councilman Tuite. All in favor, motion carried. Council left the meeting at 9:30 p.m. Kathryn Koc City Clerk 19