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HomeMy WebLinkAboutminutes.council.19891211Regular Meeting Aspen City Council December 11, 1989 SCHEDULED PUBLIC APPEARANCE 1 CITIZEN COMMENTS 1 COUNCILMEMBER COMMENTS 3 CONSENT CALENDAR 4 RESOLUTION #50, SERIES OF 1989 - Adoption of the 1990 Bud- get 4 RESOLUTION #49, SERIES OF 1989 - Mill Levy 6 LIQUOR LICENSE HEARING - Caribou Club 6 LIQUOR LICENSE HEARING - Lauretta's of Aspen 7 ORDINANCE #64, SERIES OF 1989 - Golf Pro Shop Contract 7 ORDINANCE #71, SERIES OF 1989 - Appropriations 8 ORDINANCE #72, SERIES OF 1989 - Appropriations 8 ORDINANCE #73, SERIES OF 1989 - Planning Office Fees 9 RESPONSE TO HIGHWAY 82 DRAFT EIS 9 1010 UTE ENCROACHMENT LICENSE 10 APPEAL OF REQUEST FOR GRETT EXEMPTION CHARRIOL 13 ORDINANCE #76, SERIES OF 1989 - Elks Building Subdivision Exemption 13 ORDINANCE #77, SERIES OF 1989 - Pitkin Row Subdivision Exemption 14 ORDINANCE #78, SERIES OF 1989 - Historic Designation 127 E Hallam 14 HOLY CROSS OFFER TO UNDERGROUND CEMETERY LANE 14 POSSIBLE PURCHASE OF BAVARIAN INN FOR AFFORDABLE HOUSING 15 OPEN SPACE CODE AMENDMENT LP ZONE DISTRICT 16 RESOLUTION #51, SERIES OF 1989 - Lodge Preservation GMQS European Inn 18 21 Reqular Meeting Aspen City Council December 11, 1989 TRANSFER OF DEED - Contran Corporation (Corkscrew Duplex) 18 ACTING CITY MANAGER 19 AFFORDABLE HOUSING MITIGATION CONDITION LANGUAGE 19 BALLOT ISSUE INCREASE SALES TAX 19 ASPEN MOUNTAIN LODGE PUD 2 0 22 Reaular Meeting Aspen Citv Council December 11, 1989 Mayor Stirling called the meeting to order at 5:00 p.m. with Councilmembers Crockett, Gassman, Peters and Tuite present. SCHEDULED PUBLIC APPEARANCE Mayor Stirling acknowledged Shane McClain for her work in the community and reminded Council they had declared a day in November Shane McClain day. Shane Mcclain thanked Council for the proclama- tion and assured Council she will continue to work for the betterment of the community. CITIZEN COMMENTS 1. Mac Cunningham presented a letter from the Aspen Historic Trust trying to clear up a letter previously submitted to Council. Cunningham said that letter was not supported by the Trust. The Trust does not want to become another political advocacy board. Mayor Stirling read the letter and entered it into the record. 2. Terry Harpe reminded Council he addressed them at the November 14th meeting to ask about using the Marolt property to stable his horses. Harpe asked the Historical Society's board who said it was all right. Harpe told Council he has checked with Sandy Stuller, who said the property can be sublet. Harpe requested he be allowed to negotiate a lease with the Historical Society. Councilman Peters moved to authorize the sublease to Terry Harpe for the purposes of keeping his horses at the Marolt barn for the winter of '89-90; seconded by Councilman Tuite. All in favor, motion carried. 3. Helen Phillips, resident of Cemetery Court, told Council they had submitted two letters to Council about a situation on Cemetery Court. Ms. Phillips showed Council some photographs of the area. Mayor Stirling suggested this be added to the December 18 Council. City Clerk Kathryn Koch told Council this was put on the agenda for this meeting but was inadvertently left off the agenda. Chuck Roth, engineering department, told Council this subdivision has a private road for accessing the homes. The landowners would like to explore turning this into a public right-of-way so the city will maintain it. Roth told Council he sent the homeowners the guidelines for public rights-of-way. Ms. Phillips said there is also danger from falling rock. The homeowners have hired an engineer to give them an opinion about the rock slides. Bob Gish, city engineer, pointed out some of this is county property and the county will have to be involved. Mayor Stirling moved to direct Bob Gish to bring this on the December 18th agenda, if it makes sense to do so; seconded by 1 Reaular Meeting Aspen Citv Council December 11, 1989 Councilman Peters. Councilman Crockett said if it can be resolved without bringing it back to Council, it should be. Council agreed. All in favor, motion carried. 4. Hal Clark, parks association, requested time on the December 18th agenda to discuss two proposed ballot issues. One issue is to reestablish the sixth penny as an open space, trails and parks fund; the second issue to is require 2/3 vote to change the use of open space properties. Mayor Stirling moved to place these items on the December 18 meeting and to refer them to Sandy Stuller for form and presenta- tion; seconded by Councilman Peters. Clark said the first issue would be to change the sixth penny from a fund that now allows it to be used for capital purposes and open space acquisitions to a fund limited to capital purchase of land for open space, trails and parks, deleting the capital purposes section of the sixth penny. Mayor Stirling requested Council be given the existing sixth penny ordinance and the proposed language. Ms. Stuller told Council she will have to talk to bond counsel about how this will affect any outstanding bond issues. Councilman Crockett asked for information on how the sixth penny has been used which may have prompted this proposal. Clark said the second issue would be to limit the disposal of city property purchased with the sixth penny to only be accomplished by a 2/3 vote of the electorate. Clark said the intent of this proposal is not to interfere with anything happening on the Marolt or Zoline properties where there have already been voter decisions. Ms. Stuller said this is a Charter change and will require an ordinance. Clark said the land fund has become subject to competition from a lot of groups for its use. Clark said this charter amendment is to reduce the controversy of the fund to have it only used for specific purposes. All in favor, motion carried. 5. George Stranahan, representing the Aspen Community school, told Council they are having a Christmas benefit selling frozen whole salmon. Stranahan said they would like to do this at the Christmas tree lot at Seventh and Main. The building department said the zoning does not allow this; however, Council may exempt the community school from this during the Christmas season. Councilman Gassman moved to allow the Aspen Community School to sell at the Christmas tree lot during Christmas season 1989; seconded by Councilman Peters. All in favor, motion carried. 2 Regular Meeting Aspen City Council December 11, 1989 COUNCILMEMBER COMMENTS 1. Mayor Stirling said there is a party for Bob Anderson at the Hickory House December 12 at 4:30 p.m. Bob Gish, city engineer, requested a work session with the street superintendent to make sure they are going in the right direction. Council scheduled this for December 21st at 8 a.m. at the city shop. The planning department has requested a work session to review the proposed legislation relating to all zones as part of the legislative agenda before the moratorium runs out. Council scheduled this for December 20 at 5 p.m. to 6:30 p.m. 2. Mayor Stirling said he and Amy Margerum, planning director, have been discussing the school sites in the west end in anticipa- tion of the school district's proposal for these spaces. Mayor Stirling said he has read the school district may be selling these as free market lots. Mayor Stirling said these properties may lend themselves to a master planning process with the school board. The Council agreed with starting dialogue with the schools board. 3. Mayor Stirling moved to add to the consent agenda Affordable Housing Mitigation Condition language; seconded by Councilman Gassman. Councilman Peters said he would like to discuss this and why Council may be giving up any discretion. Mayor Stirling withdrew his motion. Councilman Peters moved to add this to the agenda as (m); seconded by Councilman Crockett. All in favor, motion carried. 4. Mayor Stirling suggested Council continue the non-compliance session with Hadid Aspen Holdings as related to the Ritz Hotel from December 19 to another date. Mayor Stirling recommended December 19 be a continued meeting of the public hearing of Ordinance #69, which will start on December 18. Sandy Stuller, city attorney's office, told Council that the applicants will bring a revised construction schedule at the public hearing and the non-compliance hearing may no longer be of interest to Council. Ms. Stuller told Council the hearing on the motion to stay has been changed to January 17, 1990. Council agreed to have the non-compliance hearing after the holidays. 5. Councilman Peters told Council he has met with Wayne Ethridge, Reid Haughy, Tom Baker, Jim Kent, Alan Schwartz and the department of highways. Councilman Peters said he will bring this report up during the discussion of the draft EIS. 6. Councilman Peters moved to add to the agenda a ballot issue to raise the sale tax 45/100 of a percent to raise funds for affordable housing; seconded by Councilman Tuite. 3 Regular Meeting Aspen City Council December 11, 1989 Mayor Stirling suggested this motion be to direct staff to draft a resolution for the next meeting so that Council can have background information and time to think about this. Councilman Crockett said he would like input from staff on this proposal. Mayor Stirling said he is concerned about the amount and about the length of the tax. All in favor, with the exception of Councilman Gassman and Mayor Stirling. Motion carried. 7. Councilman Tuite asked who is drawing up the wording for the entrance to town question. Tom Baker, planning office, said he is working with the city attorney's office on this. CONSENT CALENDAR Councilman Gassman moved to approve the consent agenda; seconded by Councilman Peters. Councilman Crockett asked if there is a way to insure that the public knows about the priority for affordable housing replacement. Amy Margerum, planning director, told Council they will inform the applicants and will also post this. The consent agenda is: A. Minutes - November 8, 13, 16, 1989 B. Policy on Priority for Affordable Housing Replacement C. Liquor License Transfer - Club Andiamo D. Resolution #48, 1989 - Shadow Mountain GMQS Exemption e) Assignment of Lease - Bentley's All in favor, motion carried. RESOLUTION #50, SERIES OF 1989 - Adoption of the 1990 Budget Mayor Stirling opened the public hearing. Mayor Stirling said Council was concerned about going below the minimum one month reserve. Dallas Everhart, budget director, said on December 7 Council approved $61,100 for trail improvements from the land fund and eliminate $100,000 of unallocated capital projects in the general fund. Council transferred $210,000 from the electric fund into the general fund to purchase the Anderson house. Council reduced the transfer to the asset replacement fund by $12,650 which eliminated purchased for radios for environmental health department and a music system for the ice garden. Council reduced the non-profit grant to KAJX by $2500, reduced the Dance Aspen grant by $10,000, eliminated a secretarial position for environmental health and engineering, eliminated one additional police office and a request for a firearms coordinator. Hal Clifford, Daily News, told Council it is their position that because Council is giving public funding to the ACRA, their 4 Regular Meeting Aspen City Council December 11, 1989 meetings at which decisions are made to spend money should be open to the public. Clifford said the ACRA should also be made to account at the end of the year how they have spent the city's money. Spence Videon, president of ACRA, told Council whenever they have budget discussions relative to the use of city money, the hearings have been noticed and have been open meetings. Richard Roth said the ACRA sends out questionnaires to their members and some of the questions seem skewed. Roth said it seems the city is funding a political organization. Sandy Stuller, city attorney's office, said the ACRA is allowed to have political activity. Videon said he got legal counsel about these surveys. Their legal counsel said anyone can do a survey. If the ACRA were to take any political action, that could jeopardize their Chamber status. Mayor Stirling closed the public hearing. Councilman Peters asked about the parks association request for reimbursement of the $50,000 for the Zoline purchase and if there is a possibility this can be done by appropriation. Councilman Tuite said this assumes coming to terms with deBoer on the golf course lease. Mayor Stirling asked if city-wide the budget and finances are staying at the two month level. Cindy Wilson, finance director, said there are several funds, including the general fund, that are below the two month reserve. Councilman Tuite said the city needs a clearer way of presenting cash balances, where they are from and what they are for. Mayor Stirling said the fund balance has been reduced to $560,000 from last year, which was $1,100,000 or about two months of operations. Sales tax revenues have grown; the city has kept the mill levy at the same rate. The general fund for 1990 is one month of operations. Mayor Stirling pointed out there has been more demand for services and more need for services. The city has annexed several areas and there has been no reallocation from the county. The revenues have not changed due to these annexa- tions. Councilman Gassman pointed out another change is the construction of the parking garage. Councilman Crockett agreed there has been an increase in demand for services without an offsetting increase in revenues. Councilman Peters moved to adopt Resolution #50, Series of 1989, adopting the 1990 budget; seconded by Councilman Gassman. All in favor, motion carried. Mayor Stirling opened the public hearing on the highway users tax fund money and the county road and bridge funds. There were no comments. Mayor Stirling closed the public hearing. 5 Regular Meeting Aspen City Council December il, 1989 RESOLUTION #49, SERIES OF 1989 - Mill Levy Mayor Stirling said the Council had noticed the possibility the city may be increasing the mill levy because of the need to seek addition revenues. Mayor Stirling said the budget just passed keeps the mill levy almost the same as 1989. Cindy Wilson, finance director, told Council the mill levy will be reduced from 2.515 in 1989 to 2.498. Mayor Stirling said there has been concern about the reevaluation of property in Pitkin County. Ms. Wilson told Council the assessed valuation changed between 1987 and 1988. The city dropped the mill levy more than half to reflect the change in assessed valuation. Mayor Stirling opened the public hearing. There were no comments. Mayor Stirling closed the public hearing. Councilman Tuite moved to adopt Resolution #49, Series of 1989, adopting the mill levy at 2.498; seconded by Councilman Peters. All in favor, motion carried. Mayor Stirling said the Council will have to make some financial decision guidelines in early 1990. Councilman Peters said he would like to concentrate on establishing plans for funding capital improvements in advance. LIQUOR LICENSE HEARING - Caribou Club Mayor Stirling opened the public hearing. City Clerk Kathryn Koch reported the file, posting and publication to be in order. Harley Baldwin, applicant, told Council this is located at 405 East Hopkins in the Collins Block building. Baldwin told Council this will be a supper club with dancing during dinner and disco later. Councilman Peters asked if the staff will take TIPS training. Baldwin said they will. Katie MacMahon, representing the appli- cant, presented a petition with 18 signatures supporting the issuance of the liquor license as well as copies of 43 persons applying to join the club. Baldwin told Council it will cost $500 to join the club for the next two weeks; then it will cost $1,000. The membership fee for members of local volunteer organizations is $250. Councilman Gassman said the length of residence is not a reliable test of character. Councilman Gassman said in a market economy, the market should decide. Councilman Gassman said the menu, format and decor is irrelevant. Councilman Gassman moved that based on the evidence presented at the public hearing held December 11, 1989, relating to the applicant of Caribou Club, Ltd. for a three-way liquor license, the 6 Regular Meeting Aspen City Council December 11, 1989 licensing authority finds that the needs of the community have not been met and the 1 icense as applied for is hereby granted ; seconded by Councilman Peters. Bil Dunaway asked if the membership will be open. Ms. MacMahon said it will be open to the public. Mayor Stirling said the membership aspect is elitist and an indication of the direction the town is going. All in favor, motion carried. LIQUOR LICENSE HEARING - Lauretta's of Aspen Mayor Stirling opened the public hearing. City Clerk Kathryn Koch reported the file, posting and publication to be in order. Katie MacMahon, representing the applicant, reminded Council Lauretta's already has a beer and wine license and is applying for a full three-way license. Ms. MacMahon presented a petition with 98 signatures indicating support for this liquor license. Lauretta Bonfiglio told Council she would like to be able to serve mar- garitas to her clients. Ms. Bonfiglio said the restaurant will not expand and she will not have a full bar. Mayor Stirling closed the public hearing. Councilman Peters moved that based on the evidence presented at the public hearing held December 11, 1989, relating to the applicant of Lauretta and Christopher Bonfiglio for a three-way liquor license, the licensing authority finds that the needs of the community have not been met and the license as applied for is hereby granted; seconded by Councilman Gassman. All in favor, motion carried. ORDINANCE #64, SERIES OF 1989 - Golf Pro Shop Contract Bill Efting, leisure services director, told Council staff has been over the contract with Aspen Sports and recommends approval. Mayor Stirling opened the public hearing. Frank Peters told Council he, as Aspen Golf Management, was the competing bid. This went through a lengthy bid process. Peters said he no longer has an interest in the golf course contract. Peters told Council this lease is leaving on the table somewhere around $30,000 a year. Peters said there is a weed infesting the golf course which will need money and attention. Peters said he feels his bid was more substantial to the city in almost every category. Peters said the city should reserve the right to use the area for winter storage. Peters pointed out some other areas in the lease that need revising. 7 Regular Meetinq Aspen City Council December 11! 1989 Councilman Gassman moved to table Ordinance #64, Series of 1989, to January 8, 1990; seconded by Councilman Peters. Mayor Stirling asked about conversion of the golf carts to electric. Efting said this raises other points, like the electric cart is heavier, does put out some pollution, and uses more energy. Efting said he would like to have this re-looked at in two years. Efting said the city also needs to look at the cart barn and how much money they want to spend to bring it up to specifics. Mayor Stirling said Council has indicated they intend to work with Ernie Fyrwald and Aspen Sports. All in favor, motion carried. ORDINANCE #71, SERIES OF 1989 - Appropriations Mayor Stirling opened the public hearing. Dallas Everhart, budget director, reminded Council during the 1990 budget hearings administration requested a $700 bonus per employee. Council approved this at $500 per employee. This ordinance appropriates those bonuses. Mayor Stirling closed the public hearing. Councilman Peters moved to adopt Ordinance #71, Series of 1989, on second reading; seconded by Councilman Tuite. Roll call vote; Councilmembers Crockett, yes; Gassman, yes; Peters, yes; Tuite, yes; Mayor Stirling, yes. Motion carried. ORDINANCE #72, SERIES OF 1989 - Appropriations Dallas Everhart, budget director, told Council this is the year end appropriation which cleans up all the items Council has approved. Mayor Stirling opened the public hearing. There were no comments. Mayor Stirling closed the public hearing. Mayor Stirling moved to adopt Ordinance #72, Series of 1989, on second reading; seconded by Councilman Gassman. Councilman Tuite requested this ordinance be tabled to address the RFTA request for funding the car pool program. Councilman Tuite said this will be about $10,000 and there is $10,425 left in the contingency. Mayor Stirling withdrew his motion. 8 Regular Meeting Aspen City Council December 11, 1989 Councilman Gassman moved to table Ordinance #72, Series of 1989, to December 18 ; seconded by Councilman Tuite. All in favor, motion carried. ORDINANCE #73, SERIES OF 1989 - Planning Office Fees Mayor Stirling opened the public hearing. There were no comments. Mayor Stirling closed the public hearing. Councilman Gassman moved to adopt Ordinance #73, Series of 1989, on second reading; seconded by Councilman Peters. Roll call vote; Councilmembers Tuite, yes; Peters, yes; Crockett, yes; Gassman, yes; Mayor Stirling, yes. Motion carried. RESPONSE TO HIGHWAY 82 DRAFT EIS Tom Baker, planning office, said he has taken Council's past comments and put them into a letter to the highway department. Baker said he intends to include P & Z resolution 89-10 and the Council's goals statement. Councilman Peters told Council he met with the Colorado Department of Highways and they indicated they are very interested in ideas to promote alternative methods of transportation. Councilman Peters said the only alternative is to work with the department of highways; the city is not going to litigate. Councilman Crockett said he would like the letter to reinforce that mitigation of the impacts of the construction of the highway be in place prior to the disruption. Councilman Crockett said the construction on I-70 and the Vail pass has some good bike paths; perhaps the city can learn something from how they came up with this. Councilman Peters said the letter does a good job pointing out why the city would want to do commuter rail efforts. Council- man Peters said the letter should also point out the unique opportunity it offers of already having a rail corridor estab- lished. Mayor Stirling said he would like to add that whichever alignment is chosen by the voters that it be as unobtrusive as possible and not typical of four lane highways. Mayor Stirling said he would also like to add that Council selected the alignment because of the village feel and also because of the fragile ecology of Castle Creek. Baker said Councilman Tuite had a concern about the city's acquisition of the Maroon creek bridge and that there be funding of some sort. Baker said he would like to add this to the letter. Council agreed. Mayor Stirling asked if the city will be donating easements to the highway department or will be looking for payment . Baker said the highway department is hoping this will be the city' s in-kind contribution for these easements. Baker pointed out the city is looking for things like landscaping, assistance in overall 9 Regular Meetinq Aspen City Council December 11, 1989 transportation. Mayor Stirling agreed in light of all the city's requests, the city would be willing to donate easements. Mayor Stirling said he would like added to the letter that the Council is concerned about funding or trades for these easements. John McBride said the city will be getting a boring, flat highway coming into town in a number of the alternatives. There will be have to be a lot of stoplights. McBride said the city should be asking for a creative, sound highway. Mayor Stirling agreed the Council can remind the highway department that the uniqueness of the valley requires a different treatment than just laying down a 60 foot right-of-way. Baker said there is another step after this, which is the highway department's design process in which they get input from the community. Mayor Stirling moved to bring the 18th with revisions as discussed; All in favor, motion carried. 1010 UTE ENCROACHMENT LICENSE letter back to Council December seconded by Councilman Peters. Leslie Lamont, planning office, reminded Council they directed staff to work with the applicant to come up with solutions on this encroachment. Ms. Lamont pointed out a change in condition 1(b), the fence will be relocated approximately 2 to 3 feet (not 3 to 5) feet onto the Waggaman/Hayes use easement for lot 9 of Calderwood. Ms. Lamont added a sentence to condition 1(b) "The lock shall be removed from the gate, though the gate shall remain in place. Access to Waters Avenue easement will not be granted until Mr. DuBose's final approval of the plan for the trail throuah lot 9 Ute Place including actual realignment". Ms. Lamont told Council there is a 4-1/2 foot separation between the Waters Avenue easement and the 12 foot wide public trail easement that goes through Ute Place. Ms. Lamont showed where the Ute Place trail on lot 9 goes right next to Mr. DuBose's home. Ms. Lamont told Council staff has worked with DuBose to move the trail as far as possible from his house. Ms. Lamont said one condition is that the design of the realignment, the location and scheduling of all the trails happen between the planning department, parks department, parks associa- tion, Skip Behrhorst and the Calderwood residents. Skip Behrhorst told Council he is willing to commit a maximum of $32,000 which exceeds any obligation. Behrhorst said this is a public benefit to the city to have additional trail built in this area . Behrhorst said he would 1 ike to have a 3 0 year long term lease as part of this and that the city attorney's office draft a resolution outlining these conditions and commitments. Behrhorst said he had an appraisal done for the encroaching land, which worked out to $16,000. Behrhorst said there was a cost estimate for doing the trail work not including paving for $12,000. 10 Regular Meeting Aspen City Council December 11, 1989 Councilman Crockett said he would like to make sure there is enough money to achieve the city's goal which is to get the trail usable, including paving. Ms. Lamont told Council the cost estimate includes curbing along the river side to reinforce the bank and an 18 inch wide foot path behind Ute Place. Behrhorst pointed out there is a condition that this work be done within one year so that it will get done. Councilman Crockett said he would like to reword the approval to state the city will grant the encroachment when the trail is completed and paved. Councilman Crockett said he is concerned that the $32,000 is not high enough to get a complete, paved trail. Mayor Stirling moved to approve an encroachment license for 1010 Ute (Ute Place) with the conditions listed in the December 11 memorandum with amendments made by Leslie in 1(b) paragraphs one and two; amend the conditions to give a two year period in which the funds can be used and that the full $ 3 2 , 0 0 0 be ut i 1 i z ed and allocated for these trails, the interconnect and all the things related to them, with no money going back; seconded by Councilman Tuite. Mayor Stirling said he put in the two year condition to give the city some time to do planning with the trails on the east side of town. Behrhorst said he would be willing to agree to the two year if Council will add the 30 year provision for a long term lease. Councilman Peters asked how much of the landscaping budget is targeted for the fisherman's trail. Behrhorst said the estimate is $20,000. Councilman Crockett said he would like the $32,000 related to the completion of the trails. Hal Clark, parks association, said he feels the heavy planting between the buildings and the river is a good idea for all parties. Clark said he does not think the $32,000 will cover completion of the trail through paving. Mayor Stirling said his motion suggests that the money be totally dedicated to that area as long as it satisfies the two trails. Behrhorst said he would not agree to this as it is not fair to the homeowners . Mayor Stirling said it is a benefit to everyone in the area. Kaufman said there is an acknowledgement that the work is more than $32,000 then why is Council clouding the issue talking about a bridge that isn't going to be built. Mayor Stirling said that could be the highest priority of Council in the next two years. Mayor Stirling said he wants that flexibility in his motion. Behrhorst clarified that the city would eventually use the $32, 000 for the two trails. Mayor Stirling said the city might not do this until the summer of 1991. Behrhorst said the accounting would have to be a minimum of $32, 000 for work done on improvements on the trails. Mayor Stirling said the city will meet the letter of this agreement as per the conditions to do both the trails, 11 Regular Meeting Aspen Citv Council December il, 1989 schedule and design, but not accounting dollar for dollar. Kaufman said what is being built is what has been designed by Greg Mozian so that the city will not come in and spend more money on design. Councilman Peters said he does not want to spend $20, 000 on massive tree planting along the river bank to screen the property. Councilman Gassman said the city should not give up control on design. Behrhorst said the Council is saying they can spend on the money on the bridge and no money on the trails. Mayor Stirling said the motion is to do both trails by December 1991 but they may not be done until the fall of 1991. Councilman Tuite and Mayor Stirling in favor; everyone else opposed. Motion NOT carried. Kaufman reminded Council there was a fence approved for 1010 Ute Avenue project. The code specifically allows for modifications to the PUD agreement. The applicants went to staff, who said they liked this design better. Kaufman said it was felt neither a building permit nor an encroachment license was necessary. Kaufman said 75 percent of the way through constructing this fence, it was determined a mistake was made and a building permit was needed. Kaufman said the city has never asked for money in an encroachment license before. Behrhorst has made an offer that is double the appraised value. Mayor Stirling said this is a generous offer; however, he is trying to give the city some flexibility in this area. Mayor Stirling said there is no requirement for the applicant to offer this money. Sandy Stuller said encroachments are grants to use public rights-of-way which are revocable at the will of Council. The applicant is asking for a 30 year use of public land, which is the basis for the consideration for this request. Councilman Gassman said he would like to assure that the money goes towards getting as much of the trail constructed as possible for $32,000. Mayor Stirling said he would be willing to apply this $32,000 to the two trails only and give the city until 1991 do it in, and to amend condition (c) to give the city some participation in the design and recommendation. Mayor Stirling moved to approve the encroachment license with 1(b) as amended by staff and (c) that the new trail alignment shall be designed by Greg Mozian but in concert with and with the final approval of the city of Aspen, that the funds escrowed hereunder allocated for improvement shall all be devoted 100 percent to these two trails and that the city has a full two years to complete the work by; adding condition #3 to include the 30 years; seconded by Councilman Tuite. All in favor, motion carried. 12 Rectular Meeting Aspen City Council December 11, 1989 APPEAL OF REQUEST FOR GRETT EXEMPTION CHARRIOL Sandy Stuller, city attorney's office, said there are definitions for exemptions from transactions. The reason for these definitions is to determine whether certain transactions are exempt. Ms. Stuller suggested Council drop all discussions about exemption and state the question, which is whether the city wants to consider the husband and wife ownership and subsequent conveyance to the wife as one ownership for purposes of imposing this tax. Ms. Stuller said the staff looks at the record; if there is any change in the title ownership, it triggers the change in holding period. Ms. Stuller recommended Council determine whether they want to consider this as one ownership for a period of 24 years even though during that period the husband conveyed the title to the wife. Councilman Gassman moved to accept the appeal and agree this is one ownership; they are not required to pay the tax; seconded by Councilman Peters. Councilman Peters said the GRETT was supposed to be anti-specula- tive and to raise revenues. Councilman Peters said he does not intend to tax divorce and deaths. Cindy Wilson, finance director, asked if staff should look at dissolution of partnerships the same way. Councilman Peters said he would not; these are taxable events. All in favor, motion carried. ORDINANCE #76, SERIES OF 1989 - Elks Building Subdivision Exemption Councilman Crockett moved to read Ordinance #76, Series of 1989; seconded by Councilman Gassman. All in favor, motion carried. ORDINANCE #76 (Series of 1989) AN ORDINANCE OF THE ASPEN CITY COUNCIL GRANTING SUB- DIVISION EXEMPTION THE CONDOMINIUMIZATION OF THE ELKS BUILDING was read by the city clerk Councilman Gassman moved to adopt Ordinance #76, Series of 1989, on first reading; seconded by Councilman Peters. John Kelly, representing the applicant, told Council the applicants propose to condominiumize each floor of the building into four units. The Elks needs to make substantial improvements to the building to bring it up to code. Chuck Roth, engineering depart- ment, has some problems with the existing encroachments. Kelly told Council these are necessary for access to the basement. Roth 13 Regular Meeting Aspen City Council December 11, 1989 said there are two encroachments in sidewalks and one in the alley. Roth said if the building is going to undergo substantial renova- tion, it would be appropriate to remove the encroachments and place them inside the building envelope. Kelly said these encroachments have existed for years. Roll call vote; Councilmembers Peters, yes; Gassman, yes; Tuite, yes; Crockett, yes; Mayor Stirling, yes. Motion carried. ORDINANCE #77, SERIES OF 1989 - Pitkin Row Subdivision Exemption Councilman Gassman moved to read Ordinance #77, Series of 1989; seconded by Mayor Stirling. All in favor, motion carried. ORDINANCE #77 (Series of 1989) AN ORDINANCE OF THE ASPEN CITY COUNCIL GRANTING SUB- DIVISION EXEMPTION CONDOMINIUMIZATION OF PITKIN ROW was read by the city clerk Councilman Gassman moved to adopt Ordinance #77, Series of 1989, on first reading; seconded by Councilman Tuite. Roll call vote; _ Councilmembers Gassman, yes; Crockett, yes; Tuite, yes; Peters, yes; Mayor Stirling, yes. Motion carried. ORDINANCE #78, SERIES OF 1989 - Historic Designation 127 E Hallam Councilman Tuite moved to read Ordinance #78, Series of 1989; seconded by Councilman Peters. All in favor, motion carried. ORDINANCE #78 (Series of 1989) AN ORDINANCE DESIGNATING 127 EAST HALLAM STREET AS H, HISTORIC LANDMARK PURSUANT TO DIVISION 7, SECTION 7-701 OF THE LAND USE CODE was read by the city clerk Councilman Gassman moved to adopt Ordinance #78, Series of 1989, on first reading; seconded by Councilman Tuite. Roll call vote; Councilmembers Crockett, yes; Tuite, yes; Gassman, yes; Peters, yes; Mayor Stirling, yes. Motion carried. HOLY CROSS OFFER TO UNDERGROUND CEMETERY LANE Councilman Crockett asked how the city arrives at priorities for areas to underground. Chuck Roth, engineering department, told Council there is a city plan; this is an offer from Holy Cross. Councilman Crockett asked what the community input is into this project Roth said an improvement district will be formed, at which 14 Regular Meeting Aspen City Council December 11, 1989 stage the community will have an opportunity to comment. Council- man Gassman said the Council has asked Holy Cross to look at undergrounding Cemetery Lane. Councilman Gassman moved to direct staff to proceed with further aerial utility undergrounding within the city; seconded by Council- man Crockett. Councilman Gassman said underground will also help the city's goal of tree planting. Right now, the city is restricted from planting trees on Cemetery Lane because of the power lines. Jon Busch reminded Council when Williams Additions was annexed into the city, one of the goals was to get the power line undergrounded. Busch said it might be wise for the city to pursue buying out Holy Cross in various sections in town. Councilman Gassman said this proposal is not precluding any further undergrounding. All in favor, motion carried. POSSIBLE PURCHASE OF BAVARIAN INN FOR AFFORDABLE HOUSING Dave Myler, city attorney's office, told Council he has been working on various properties suitable for affordable housing; these are the Bavarian, the Madsen chalets and city property on Red Butte. Myler said the Bavarian consists of 36,000 square feet of land with the Inn, one single family residence and some small cabins. Myler told Council he prepared and submitted an offer to purchase the property. Myler told Council he has offered terms; he has also had discussions with Joe Barrows, the city's financial advisor, who feels with city would be able to finance the acquisi- tion as well as the development. Myler told Council the lodge is zoned L-3 and the rest of the property is zoned R-15. Councilman Peters said he is not inter- ested in demolishing the Bavarian Inn; preserving small lodges is one of Council's goals. Council agreed. Councilman Crockett said he does not want any free market units. Councilman Peters said that is not his direction. Councilman Tuite said the city needs to lessen the burden on their funds by developing some free market units. Councilman Peters moved to direct Dave Myler to continue with the acquisition of the Bavarian property with the comments made tonight; seconded by Councilman Crockett. Councilman Peters said he would like to see if it makes sense to acquire the whole property and subdivide off a portion and sell off the inn or just acquire land for employee housing. All in favor, motion carried. 15 Regular Meeting Aspen City Council December 11, 1989 Myler suggested the contract be assigned to the housing authority to proceed with a development team selected by Council to process whatever land use and other applications are necessary so the Council can maintain some arms length in the rezoning. Myler told Council he met with Martha Madsen who has essentially agreed to his proposal for purchase of the Madsen Chalets. The changes are the consideration would be increased to $150,000 subject to an inspection and bid from a contractor establishing the extent the property needs to be upgraded. Myler said this keeps the price in the range of $18,000 per unit for a 40 year deed restriction as moderate income housing. Myler said the rents will be frozen for 3 years then they can be increased up to 4 percent at the landlord's discretion. Mayor Stirling said the buy down is important to him. Amy Margerum, planning director, encouraged Council to stick with the affordable housing guidelines. This is a precedent setting deal. Council agreed they could increase the buy down in order to stay within the housing guidelines. Myler told Council Ms. Madsen would like an option to extinguish the deed restrictions on two units . She may want to expand her own unit into these two apartments. This would reduce the number of restricted unit to 6. Councilman Peters said Council wants as many affordable units out of the property as they can get. Mayor Stirling and Councilman Gassman agreed. Councilman Peters moved to suspend the rules and meet until 9:30 p.m.; seconded by Councilman Tuite. All in favor, with the exception of Councilman Gassman. Motion carried. Myler said he is working on the developable acres adjacent to the west Aspen addition at the base of Red Butte. Myler is mapping the area suitable for rezoning and subdivision. Myler said he will also be presenting to Council a recommendation on the lots adjacent to the golf course purchased with sixth penny. Council agreed they will put this on the February 13th ballot. OPEN SPACE CODE AMENDMENT LP ZONE DISTRICT Leslie Lamont, planning office, told Council this code amendment was part of a GMP application submitted for the LP competition. Ms. Lamont said the applicant was 3 percent short of the required open space; they did not have 35 percent open space open to view from the street. Ms. Lamont read the amendment, "that percent of open space required for a building site, a special review to reduce the open space below 35 percent may be approved only when a reduction is necessary to preserve an existing structure (s) on the site. In establishing required open space for a specific develop- ment, the Commission shall consider: (1) the configuration of and 16 Regular Meeting Aspen City Council December 11, 1989 the amount of existing structure(s) on the site to be preserved; (2) the unique, natural or manmade conditions; and (3) the quantity of unimproved lot area which enhances the site and is open to view from neighboring properties but does not otherwise meet the definition of open space. Ms. Lamont told Council this code amendment was approved by P & Z. Staff is recommending denial and did not prepare an ordinance for Council. Councilman Gassman asked if this applies to the Bavarian Inn, which Council just discussed purchasing, does this mean that the entire Council has a conflict of interest. Sandy Stuller, city attorney's office, told Council if they are the only agency that can take action, they cannot abstain. Councilman Peters said he has objected to code amendments to accomplish specific tasks in the past. Councilman Peters recommends the PUD process be used; however, this is limited by 27,000 square feet. Councilman Peters said this is an unfortunate limitation in the PUD process specifi- cally when dealing with old, non-conforming lodges. Mac Cunnin- gham, applicant, said PUD can be a cumbersome process. Glenn Horn agreed the easiest thing would have been to request a PUD; however, the code states an applicant cannot request that on lots less than 27, 000 square feet. Councilman Peters said he does not feel a code amendment specific to this project will be very helpful. Amy Margerum, planning director, pointed out staff's original recommendation was the applicant should design the project to meet the code. Cunningham said one problem is the way FAR is counted. Cunningham said he attempted to keep all the rooms serviceable and to maintain the spirit of small family lodges. Cunningham said he put patio areas below grade in order to make the lower rooms more serviceable; this is then counted in the FAR. Cunningham said he put the parking off the alley so that it would not have visual impact, which reduced the FAR they could count. He put decks on every room; this also counted in FAR. Glenn Horn said Council should not lose sight of the purpose of the intent of the LP zone, which is to create incentives for older lodges to upgrade with possible expansion. Horn said the P & Z came up with a code amendment which said not to let anyone vary the open space require- ment if the project is a tear down and reconstruction; however, if someone is working with an existing building and preserving the structure, they should get some leeway. Mayor Stirling moved that the Council moved to apply the PUD overlay on specific parcels or on the whole LP zone and that there would be a two step process; seconded by Councilman Peters. Councilman Peters said he would like Council not to be active in applying the PUD overlay but to be allowed to grant it for specific prod ects . 17 Regular Meeting _Aspen City Council December 11, 1989 Mayor Stirling amended his motion to agree to apply the PUD upon specific requests in the LP zone; seconded by Councilman Peters. All in favor, motion carried. RESOLUTION #51, SERIES OF 1989 - Lodge Preservation GMQS European Inn Leslie Lamont, planning office, recommended Council table this until there is a set of conforming plans and a resolution of the problem. Councilman Peters moved to table the GMQS allocation pending redesign development application of the European Inn aka Bavarian Inn; seconded by Councilman Crockett. Glenn Horn asked if Council is going to amend the code so that applicants can come in and ask for a PUD designation on sites smaller than 27,000 square feet when it concerns an LP lodge. Councilman Peters said that was his intention. Councilman Gassman asked the planning office to give recommendations on LP and PUD designations. Mayor Stirling moved to suspend the rules and meet until 9:45 p.m. ; seconded by Councilman Peters. All in favor, with the exception of Councilmembers Gassman and Crockett. Motion carried. TRANSFER OF DEED - Contran Corporation (Corkscrew Duplex) Jim Adamski, housing director, told Council the Corkscrew con- dominiums have not been in compliance for the last 7 years on a one bedroom unit. Adamski said the owner has suggested a transfer of that unit to another parcel. Adamski told Council the housing board voted 3 to 2 to deny allowing the transfer of the unit. Adamski said the board voted 3 to 2 because of setting a precedent and because this had been in violation since 1981. Chuck Brandt, representing the applicant, introduced into the record letters from Anne Ibbotson and Brian Hazen, the listing and selling brokers. Brandt told Council these realtors understood that this employee unit only had to be rented to employees in the event the owners of the units decided to rent. The Simmons have never rented their side of the duplex. Brandt told Council the Simmons would not have bought the unit if they understood what the restrictions said. Brandt said he went out and found a two- bedroom, two bath unit, about 200 square feet larger than the restricted unit. The housing authority initially made a recommen- dation to approve this transfer. Brandt told Council they had an appraisal done to verify there is not a windfall to the Simmons. 18 Regular Meeting Aspen City Council December 11, 1989 Councilman Gassman said this seems like a good deal. The ap- plicants have purchased a comparable unit in the same neighborhood. This gets a free market unit converted into a deed restricted unit . Councilman Peters said he has no interest in this deal. It sets a bad precedent. When Council requires an on-site unit, that is where the city expects it to be. Councilman Peters said buying another unit will create competition for moderately priced units in town. Councilman Crockett agreed this is more wriggling out of covenants. Mayor Stirling said he is willing to deed restrict a free market unit permanently and get more square footage against someone's windfall. Councilman Gassman moved to allow the transfer of deed as outlined in the memorandum; seconded by Councilman Tuite. Councilman Gassman amended his motion to make the unit low income; seconded by Councilman Tuite. All in favor, with the exception of Council- members Peters and Crockett. Motion carried. ACTING CITY MANAGER Councilman Crockett moved to appoint Bill Efting acting city manager; seconded by Councilman Gassman. All in favor, motion carried. AFFORDABLE_H_OUSING MITIGATION CONDITION LANGUAGE Amy Margerum, planning director, reminded Council there was a recent change to the code which gave Council the discretion to make a decision as to whether or not an applicant could provide housing through in-lieu fees. Ms. Margerum said if Council decides to let an applicant use another mechanism for affordable housing, they should have the option of finding a buy down proposal and getting approval for Council. Mayor Stirling suggested this be scheduled for the next agenda to give Council time to think about this. Mayor Stirling moved to table this to December 18, 1989; seconded by Councilman Peters. All in favor, motion carried. BALLOT ISSUE INCREASE SALES TAX Councilman Peters said he would be willing to work on language for this issue and bring it back to Council at the next meeting. Mayor Stirling moved to put this on the December 18 agenda to deal with all the other ballot issues; seconded by Councilman Gassman. All in favor, motion carried. 19 Regular Meeting Aspen City Council December 11, 1989 ASPEN MOUNTAIN LODGE PUD Amy Margerum, planning director, recommended that the city attor- ney's office start out with an overview of the process, why Council is relooking at the ordinance. The planning office staff will give a summary of the project and what is being discussed. The appli- cants have requested one hour to give a presentation. Ms. Margerum told Council she is planning to focus on what has changed in the code since the resolution was approved by Council, give an analysis of impacts of the project, and recommended changes to conditions of the PUD. Mayor Stirling suggested Council go into the hearing with an objective report of the changed conditions and the new regulations. Mayor Stirling moved to have the staff describe on December 18 the changed conditions and changes in regulations since September 1988; seconded by Councilman Gassman. All in favor, motion carried. Council adjourned at 10:00 p.m. :~ ~~v, %~ ., Kathryn ~. Koch, City Clerk 20