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HomeMy WebLinkAboutminutes.council.19900122Aspen City Council Regular Meetinct January 22, 1990 C 1 .r: CONSENT AGENDA 3 ORDINANCE #68, SERIES OF 1989 - Zoline Lease 4 ELECTION ISSUES INFORMATION 6 SRM CONTRACT/JIM KENT - NEPA Consultation 6 AFFORDABLE HOUSING FOR O'BLOCK APPLICATION 7 ENCROACHMENT REQUEST - Collins Block 8 ORDINANCE #2, SERIES OF 1990 - Enhanced 911 System 9 ORDINANCE #3, SERIES OF 1990 - Modification of Electrical Code 11 CAPITAL WATER PROJECTS AGREEMENTS 11 ORDINANCE #7, SERIES OF 1990 - West Reds Road Homeowners 13 ORDINANCE #6, SERIES OF 1990 - Water Agreements Wexner 14 ORDINANCE #5, SERIES OF 1990 - Water Agreement Aspen Butter- milk Associates 14 ORDINANCE #4, SERIES OF 1990 - Water Agreement Maroon Creek Development 14 SCHEDULE COMMISSION INTERVIEWS 15 PEDESTRIAN WALKWAY CONTRACT and ADVISORY COMMITTEE 15 RESOLUTION #6, SERIES OF 1990 - Affordable Housing Con- tracts 16 ASPEN MOUNTAIN LODGE ISSUES 18 20 Mayor Stirling called the meeting to order at 5:05 p.m. with Councilmembers Tuite, Crockett, Peters and Gassman present. ~~ fi ~~I 14~E1~ ~fll~ft_. 1. Lynn Levinson told Council she got a call from a friend who had been watching a television show, Hard Copy, in which Councilman Crockett called tourists who come to Aspen parasites. Ms. Levinson said many people make their living from the tourists who come to this town. Ms. Levinson said she was upset over this comment. Councilman Crockett said he did not see the program and cannot respond. Mayor Stirling suggested Councilman Crockett investigate this and respond to citizens individually. 2. Bob Walker, representing the Pitkin County Builders Associa- tion, told Council on December 19, the city P & Z recommended that five articles in the city land use code not be deleted. Walker said he thought this was on tonight's Council meeting and asked what happened to it. Amy Margerum, planning director, told Council it is still in the planning office works and will be brought forward to Council. 3. Terri Hart, Pitkin County Wildlife Committee, told Council they have a request for funds and would like to be added to Council's agenda. Ms. Hart said the urgency of this request is that a biologist has been hired. There are current development pressures. The committee is concerned if they do not begin the research during this winter season, the opportunities will not be available. Mayor Stirling moved to put this on the February 12 agenda; seconded by Councilman Gassman. All in favor, motion carried. 4. Guy Gervais, Lazy Glen homeowner, thanked the 3 Councilmembers who showed up at the housing authority meeting. Gervais said he will keep Council apprised of developments at Lazy Glen. COUNCILMEMBER COMMENTS 1. Councilman Gassman asked for a report on the housing authority's actions regarding Snowmass. Jim Adamski, housing authority, told Council they are set up as a multi-jurisdictional authority, and this enabled them to assist in the funding of sales and rental projects. Adamski told Council the Snowmass housing authority approached them to do financing for them of 37 units of sales in Snowmass. Adamski said the housing authority will have fiduciary authority and will float the bonds for this project. Councilman Tuite said he is concerned that they are giving preference to people who work in Snowmass. Adamski said the first 1 Aspen Citv Council Regular Meeting January 22, 1990 preference for the first month is to give preference to Snowmass employees. Councilman Tuite said he would like to see all employees treated fairly. Councilman Gassman said he housing authority is just beginning to talk about the annual guidelines and he will take Council's concern to the housing authority. 2. Councilman Peters said the initial numbers for the Marolt ranch financing have come in higher than anticipated. Councilman Peters said the housing office is trying to preserve the quality of the project and cut back on the cost. Councilman Peters said the M.A.A. has tendered a letter on how they might want to par- ticipate in the project. Councilman Peters said he would like to gather all the data and have a Council work session after the next Council meeting. 3. Mayor Stirling said there is a formal written draft Meadows master plan available at Design Workshop. Council has a work session January 24 at 5 p.m. on the Meadows. 4. Mayor Stirling said the scattered site affordable housing will have its first public hearing January 29 at 5 p.m. 5. Mayor Stirling told Council he has discussed the city manager search with the Jim Mercer. Mercer has requested Council have an executive session to go over the characteristics Council would like to see in a city manager. Councilman Peters said if Council is discussing names of applicants, he would prefer to have this in an executive session. Councilman Gassman moved to schedule an executive session February 1 at noon to discuss city manager applications; seconded by Councilman Crockett. All in favor, with the exception of Mayor Stirling. Motion carried. Phoebe Ryerson told Council the Institute people have said they will make contract for one year only and if the consortium and Hadid were not given the right to continue, they will take the Institute to Wye Plantation. 6. Mayor Stirling said Winterskol week went very well and the events were successful. 7. Bill Efting, acting city manager, requested information item (c) Pedestrian walkway plan contract/advisory committee, be moved to the action items. Councilman Tuite moved to move information item (c) to action item (m); seconded by Councilman Crockett. All in favor, motion carried. 2 Aspen City Council Regular Meeting January 22, 1990 8. Bill Efting, acting city manager, told Council at the CAST legislative tour the major topic of discussion was the skier liability bill. 9. Bill Efting told Council the group from the comedy festival is requesting an ice sculpture across from the Wheeler. Efting said this group is willing to pay for it, but they want the city build the box and fill it with snow. Efting said this will cost about $1,000. Efting said this will be 16 feet across. Staff is worried about the liability around the ice sculpture. Councilman Gassman said, depending on the subject matter of the sculpture, if this group is willing to pay the city's cost, he will leave it up to the manager and the parks department to make sure this is not going to create any problems. Council agreed. 10. Sandy Stuller, city attorney's office, requested agenda time to address two affordable housing items her office has been working on and has under contract. Councilman Peters moved to add these to the agenda as action item (n); seconded by Councilman Crockett. All in favor, motion carried. 11. Sandy Stuller, city attorney's office, reminded Council they have approved resolution #46, which authorized the continuation of work permitted on the Aspen Mountain PUD but not the processing of any further applications. Ms. Stuller said 3 issues have arisen that she would like Council's approval on. One issue is a request from the director of public works who is responding to a request from the construction company to reduce the escrow for the landscaping work done on Galena place, which is completed. The second request is for staff to process and approve a condominium plat for Galena place. Ms. Stuller told council this was given a subdivision exemption earlier by Council. The third issue is that one escrow agreement expired on January 19. The applicants have tendered a proposal to substitute $800,000 in cash in lieu of a letter of credit. Mayor Stirling moved to add these three items as action item (o); seconded by Councilman Peters. All in favor, motion carried. 12. Bill Efting, acting city manager, reminded Council they have scheduled a work session on council goals and on the city's transportation program February 19 at 5 p.m. CONSENT AGENDA Councilman Peters excused himself due to a conflict of interest. Councilman Gassman moved to approve the consent calendar as 3 Aspen Citv Council Regular Meeting January 22, 1990 presented; seconded by Councilman Crockett. The consent calendar is A. Minutes - December 19, 1989; January 8, 1990 B. Liquor License Renewals - Sardy House; Hotel Lenado C. Liquor License Transfer - Hotel Jerome All in favor, motion carried. ORDINANCE #68, SERIES OF 1989 - Zoline Lease Councilman Gassman moved to read Ordinance #68, Series of 1989; seconded by Councilman Crockett. All in favor, motion carried. ORDINANCE #68 (Series of 1989) AN ORDINANCE APPROVING THE TERMS AND CONDITIONS OF AN AGREEMENT BETWEEN THE CITY OF ASPEN AND THE MAROON CREEK DEVELOPMENT CORP. SETTING FORTH THE TERMS AND CONDITIONS FOR THE LONG-TERM LEASING OF THE PROPERTY COMMONLY KNOWN AS THE ZOLINE PROPERTY FOR THE CONSTRUCTION AND OPERATION OF A GOLF COURSE was read by the city clerk Councilman Gassman moved to adopt Ordinance #68, Series of 1989, on first reading. Sandy Stuller, city attorney's office, asked for Council's under- standing on the $50,000 a year option and whether it was a credit against the lease payment or over and above. Councilman Peters said he thought it was a credit against the lease payment; Council- man Gassman and Mayor Stirling agreed it was a credit against the lease payment. Mayor Stirling said this was to be non-refundable. Ms. Stuller pointed out that the trails use is secondary to the golf course use. Ms. Stuller said there is a new provision in the lease, which is an obligation for the city to provide treated water in the event the irrigation waters are insufficient. Ms. Stuller pointed out later on the agenda is a separate contract for the city to provide water to the project. Ms. Stuller suggested this be included in the water contract rather than the lease. Andy Hecht, representing the applicant, said that is fine. Ms . Stuller pointed out in the right to terminate, the lease is for 100 years and the payout on the note is 10 years. Ms. Stuller said the understanding is if any of the things outlined in the lease happen after the 10 year period, the city does not get a refund. Hecht agreed. Ms. Stuller said she would like the lease recorded. Hecht agreed. Andy Hecht said in the public use section of the lease, the golf course will be available to non-members who are employed a minimum of 30 hours a week, over 60 years and full time residents or full 4 Aspen City Council Regular Meeting January 22, 1990 time students. Hecht said the applicants would like to enable the public to use the course from the time it is open until noon; 9 a.m. is an artificial time. Council agreed to change it to "course opening". Mayor Stirling said his notes indicate if there was no community oriented public event, the public had 100 percent opportunity to use the golf course in the afternoon. Hecht said they would agree if there is time available, they can play. Hecht said the applicants will agree to charge less if carts are required. Chuck Vidal, representing the applicant, said they feel on a seasonal basis, play may need to be speeded up. In this event, they would require golf carts at a lower rate for the public. Council suggested their golf cart rate be the same as the municipal course. Vidal agreed. Vidal told Council the applicants are concerned because of the vertical aspect of this course that electric carts will not be powerful enough. Vidal said they would like the option of bringing in a pollution control standard, so that they are not precluded from looking at other golf carts. Vidal told Council the applicants have a preference for electric carts. Hecht said the applicants will agree to have pollution mitigation acceptable to Council. Council agreed. Vidal said on the 3 holidays (Memorial Day, July 4 and Labor Day), the agreement means for the whole weekend. Vidal said they will _ clarify this paragraph further. Hecht requested a paragraph if there is confusion in the lease, the applicants can appeal to the city manager. Council agreed. vidal told Council in the construction of the golf course, they want the ability to be able to move the trails about to accommodate their design. In this concept, the golf course takes priority. Vidal said the applicants bear the cost of moving the trails and making them work. Hecht suggested changing the language to say, "tenant agrees to link such trails to other trails in the area". Ms. Stuller said she is concerned the applicants will interfere with the public's use of the trails. Vidal said the applicants would not have a problem saying they cannot preclude the prescribed uses but they do not want them expanded. Hecht agreed that the water rights are more appropriate in the water agreement. Mayor Stirling brought up the use of pesticides and pointed out he has proposed to eliminate all pesticides on the city's golf course. Hecht told Council he will have to address this in the county review. Vidal said as part of the detailed submission, they will submit a herbicide and pesticide program acceptable to the county. Mayor Stirling asked if the applicants have any idea what the toxic waste talked about in (m) are. Vidal said the do not know what to anticipate. Hecht said this will be a very ecologically sensitive course. 5 Aspen Citv Council Regular Meeting January 22, 1990 Roll call vote; Councilmembers crockett, yes; Tuite, yes; Peters, yes; Gassman, yes; Mayor Stirling, yes. Motion carried. ELECTION ISSUES INFORMATION Mayor Stirling said recent litigation indicates Councils cannot use taxpayers money to be advocates for particular ballot issues; however, cities can provide objective information for the public. Councilman Peters said printing the ballot is as far as he would go. Councilman Crockett said he feels the city should make sure there is information available to the public; some of these issues are very complex. Sandy Stuller, city attorney's office, said the Campaign Reform Act authorizes Council to spend public money to make contributions to dispense balanced information on any issue of official concern before the electorate. Councilman Gassman moved to publish the ballot two weeks before the election in two local newspapers and spend up to $2,000 out of Council's contingency fund; seconded by Councilman Peters. All in favor, motion carried. SRM CONTRACT/JIM KENT - NEPA Consultation Councilman Peters said this proposal is an outgrowth of the NEPA seminar given by Jim Kent to Council. Councilman Peters said some issues raised are there federal monies available for mitigation of federal permitting in the valley, including highway construction and skiing. Councilman Peters said there may be a way to expand Kent's field of expertise into the railroad issue by asking Kent to help create some down valley consensus. Councilman Peters said the proposal has a variety of tasks. Councilman Peters said he would like Kent to concentrate on the availability of federal funds for constructing a railroad and for helping to create down valley support for the railroad. Councilman Peters said he feels there is a need for someone whose sole responsibility is to help facilit- ate and build a railroad. Councilman Peters said he would like to pursue the contract and to work with Kent and manage the contract to develop criteria for performance. Mayor Stirling asked who are the contributors to the $38,000. Councilman Peters suggested a split between the city and the county. Bill Efting, acting city manager, told Council the county has just said they will not contribute; however, they would be willing to work with the group as a contact. Councilman Crockett said involving all interests parties between here and Glenwood would be a Herculean task. Councilman Crockett said the transpor- tation issue is the single most critical issue in this valley. The success of its implementation will hinge on how thorough the elected officials have been in education and coordination in the valley. 6 Aspen City Council Rectular Meeting January 22, 1990 Councilman Peters said it has been reported that RFTA is going to ask the three counties in this valley how they want to fund transportation and if they want to fund it by sales tax. Mayor Stirling said he is concerned the county is not willing to help fund this. Mayor Stirling said he is also concerned about the tasks being very vague and about rumor control system. Mayor Stirling said he would like a higher level of detail before he acts on this contract. Councilman Peters said the city should explore how they are going to work through the Roaring Fork Valley forum. Councilman Peters said Council should decide what it is interested in pursuing down valley, and what they want to accomplish. Councilman Gassman said he feels the NEPA part is worth doing some research on and going farther. Councilman Gassman said it is hard from reading the proposal to tell what is going to be done and how to tell what has been done after it is done. Councilman Gassman said there are about a dozen agencies in the valley involved in transportation. To get anything done, it will take a large amount of coordination. Councilman Gassman said he is not sure the city should take the lead in coordinating transportation. Councilman Gassman suggested this coordination and support could develop out of the Roaring Fork Forum. Mayor Stirling suggested Council go to the next Roaring Fork Valley forum and explain the city's willing- ness to be the lead agency and to seek support for the program. This meeting is February 8, 1990 at 7 p.m. Councilman Crockett said he feels a sense of urgency in this and would feel more comfortable if the city hired someone to be coordinating all the transportation efforts. Mayor Stirling said there is an interest in bifurcating the tasks between NEPA and the knowledge Kent can bring to that and the valley wide coordination. Mayor Stirling said setting goals and measuring them will be an important part of this. Mayor Stirling requested this be on the February 12 agenda with more specificity. Jim Kent told Council he works as a community organizer. AFFORDABLE HOUSING FOR O'BLOCK APPLICATION Sandy Stuller, city attorney's office, told Council there is a proposed development on the O'Block property which did not carry forward an affordable housing. Ms. Stuller said she was requested to issue an opinion whether or not this applicant has to comply with new requirements in the land use code and provide affordable housing. Ms. Stuller told Council said she went through the history from 1980 to try and determine whether or not it was the intention of the parties that new employee regulations might apply in this instance. Ms. Stuller said the legislative history on this is sketchy. Ms. Stuller told Council she talked to people who were involved in this, and it is fair to say they did not anticipate 7 Ashen Citv Council Regular Meeting January 22, 1990 employee housing regulations that would require replacement. Ms. Stuller said it was their understanding that by reason of coopera- tion of the developer the opportunity would be afforded in the future for 18 residential units, free of those requirements, even though that intent is not specified in great detail. Ms. Stuller said she wanted Council's concurrence on this issue. Councilman Gassman said he felt since 1980 that this was a lousy deal, but that is what the deal was. Councilman Crockett agreed and said he hopes Council learns something from this not to tie future Council's hands. Councilman Crockett said he sees afford- able housing being lost because of this prior agreement. Council- man Crockett said Ms. Stuller's recommendation is a fair one. Mayor Stirling asked if this uses all the tdr's. Ms. Stuller said there are two more outstanding. Councilman Peters said this agreement contemplated the conversion of Smuggler mobile home park as the employee housing and was the centerpiece of the deal. Councilman Peters said the only housing requirements then were contemplated through GMQS and not with any future subdivision requirement. Councilman Peters said he does not want to change the deal. Mayor Stirling agreed. Councilman Tuite pointed out part of the mitigation was the creation of Smuggler Run, 17 additional employee units. This also saved the 88 existing units. Councilman Peters pointed out the 10 new units for the O'Block application will be built on vacant ground rather than demolishing some existing units. Council agreed with Ms. Stuller's recommendation. Leslie Lamont, planning office, told Council this application is for 10 free market and 4 accessory dwelling units. Ms. Lamont said an accessory dwelling unit requires a GMQS exemption; however, in the code the language addresses an accessory unit for a duplex or single family structure. Ms. Lamont said she does not have the ability to exempt these accessory dwelling units in a multi-family structure. Ms. Lamont asked for Council's direction on whether they want staff to process a code amendment or try and clean up the existing language. Ms. Lamont recommended a code amendment which enables staff to process accessory dwelling units in multi-family buildings. Mayor Stirling moved to direct the planning office to begin to process a code amendment as referenced above; seconded by Council- man Peters. All in favor, motion carried. ENCROACHMENT REQUEST - Collins Block Elyse Elliott, engineering department, told Council this is an encroachment request for an awning over the Collins Block, the old hardware store. Ms. Elliott told Council this colonnade was built 8 Aspen City Council Regular Meeting January 22, 1990 in 1963. This was reviewed by HPC who voted to allow it to remain even though it is not historical. Ms. Elliott told Council the trade off might be to provide a storage room for their dumpsters. Ms. Elliott said there was not a place on site to accommodate this dumpster; however, there are other buildings in this block owned by the applicant. Joe Wells, representing the applicant, told Council HPC felt very strongly the colonnade should remain on the building. Wells said this encroachment request for is a building under permit which has no alley frontage. Wells said his client has filed a separate application for a lot line adjustment so that contiguity can be established with a building on the alleys. If that is approved, it is their intention to tear down an existing building and reconstruct a project that would include trash storage, two off alley parking spaces, and two affordable housing units. Councilman Gassman moved to approve the encroachment license for the Collins Block building; seconded by Councilman Peters. All in favor, motion carried. ORDINANCE #2, SERIES OF 1990 - Enhanced 911 System Mayor Stirling moved to read Ordinance #2, Series of 1990; seconded by Councilman Crockett. All in favor, motion carried. ORDINANCE #2 (Series of 1990) AN ORDINANCE IMPOSING AN EMERGENCY TELEPHONE CHARGE UPON TELEPHONE EXCHANGE ACCESS FACILITIES WITH THE CITY OF ASPEN; AUTHORIZING SERVICE SUPPLIERS TO COLLECT SAID EMERGENCY TELEPHONE CHARGES; AND AUTHORIZING THE MAYOR TO SIGN AN INTERGOVERNMENTAL AGREEMENT CREATING AN EMERGENCY TELEPHONE SERVICE AUTHORITY IN ORDER TO ES- TABLISH AND OPERATE AN EMERGENCY TELEPHONE SERVICE SYSTEM IN THE CITY OF ASPEN was read by the city clerk Councilman Crockett moved to adopt Ordinance #2, Series of 1990, on first reading; seconded by Councilman Peters. Councilman Peters said this is expensive but useful. Mayor Stirling said this will enable an authority to collect up to $.50 per month from each telephone line. Mayor Stirling said the public will perceive this as a tax. Mayor Stirling asked if this service is absolutely fundamental, and is this the appropriate way to fund it or should it be funded by current tax dollars. Brent Finster, communications director, told Council this is fundamental. Finster said they plan on collecting $500,000 over the next 7 years. Finster pointed out state law allows this mechanism of funding; 9 Aspen City Council Reuular Meeting Januarv 22. 1990 this has been construed as a charge as opposed to a tax by the county attorney. Finster said the purpose of the state law is to allow cities, counties and special districts the ability to collect this charge from the users of the service knowing that in lean budget times there will still be a funding mechanism. Finster told Council with this new 911 service, if someone dials 911, the communications department will get a screen showing the phone number and the address from where the person is calling. Councilman Crockett said this is essential. Councilman Crockett told Council the emergency services group has been working on this for a couple of years. Councilman Crockett said the enhanced aspect of 911 is particularly important in a resort community where many visitors do not know where they are. Councilman Crockett said this has support from all the emergency services groups in the valley. Councilman Crockett said the people paying this charge will be getting the benefits of it. Finster pointed out there is also an intergovernmental agreement in the packet. One change in that agreement is that 4 out 5 members will have to approve any capital expenditures over $25, 000. Mayor Stirling asked why there is a need to create this new authority. Finster said this is the mechanism the state has put in place to encourage different entities to get together and form a jurisdictional system. Finster said the authority board takes the responsibility from these agencies and becomes a separate legal entity. Finster said Section 12 has a change about termination, "providing however, if in the event that any party hereto elects to participate in emergency telephone service authority other than the authority created hereby, such party shall have the right to utilize any and all network equipment installed in service supplier facilities and paid for by this authority without charge or reimbursement to this authority subject, however, to any or all costs charged by the service supplier." Finster said this allows Basalt or Carbondale an out to go with Eagle or Garfield county enhanced 911 system once they have one. It allows the equipment to be used for those systems. Councilman Tuite said this service makes sense; however, this is creating yet another authority. Councilman Tuite asked how the city and county keep track of this to make sure it is not an on- going fee with which the authority decides what to do. Finster said the authority board is made up of the sheriff, chief of police, Snowmass Village police or fire chief and two representa- tives of other agencies. Mayor Stirling agreed he is concerned about another taxing authority. Mayor Stirling said he is not completely convinced of the need to do this and to do it through an authority mechanism. 10 Aspen City Council Regular Meeting January 22, 1990 Finster said none of the districts have given him any negative comments. Councilman Crockett said this has come through the public safety council, who has over 60 agencies, and was supported unanimously by that council. Councilman Gassman asked if staff has looked at any other way of funding this, rather than setting up a new taxing district. Finster said this could be handled through the budget process. Finster said some of the smaller agencies could not afford to pay any more for communication than they already are. Finster said there may be liability in the future for cities and counties that do not have this system because it will be the standard. Roll call vote; Councilmembers Tuite, yes; Gassman, yes; Peters, yes; Crockett, yes; Mayor Stirling, yes. Motion carried. ORDINANCE #3, SERIES OF 1990 - Modification of Electrical Code Mayor Stirling moved to read Ordinance #3, Series of 1990; seconded by Councilman Tuite. All in favor, motion carried. ORDINANCE #3 (Series of 1990) AN ORDINANCE TO REPEAL AND REENACT SECTION 7-157, AMENDMENT, SO AS TO PERMIT ALL ELECTRICAL WIRING IN GROUP A, E, I, H AND B OCCUPANCIES, AS DEFINED IN THE UNIFORM BUILDING CODE, TO BE ENACTED IN APPROVED RACEWAYS AND REPEALING AND REENACTING SECTION 7-108 CONCERNING THE REGISTRATION OF ELECTRICAL CONTRACTORS was read by the city clerk Councilman Gassman moved to adopt Ordinance #3, Series of 1990, on first reading; seconded by Councilman Tuite. Tom Parry, building department, told Council the original ordinance did not recognize the technology of plastic. The trades are using pvc conduit because it is a much better system and using a plastic tubing in the walls. This would not be allowed under the old ordinance. Parry told Council in the registration fee, the state passed a law which outlawed cities from collecting this fee, which is why this is being repealed. Roll call vote; Councilmembers Crockett, yes; Peters, yes; Gassman, yes; Tuite, yes; Mayor Stirling, yes. Motion carried. CAPITAL WATER PROJECTS AGREEMENTS Bob Gish, city engineer, reminded Council this is a continuation of the capital project and budget hearings . Council directed staf f 11 Aspen City Council Regular Meeting January 22, 1990 to go ahead with the projects; however, they wanted to review specific agreements . Gish pointed out all of these projects are physically located in the county. Some of the projects are still in the approval stage. The city will parallel any work with the county. Gish told Council the West Reds Road agreement will extend the city's water service into the county. There will be no water service agreement until approved by the Commissioners along with the 1041 review. This agreement will pay the city $159,530 within 30 days of the agreement date. Gish said the homeowners will convey to the city their water system and the water rights that they own. The water system will meet the city's standards. The homeowners will pay a monthly charge. Gish said with the approval of the above agreement, there can be an agreement with Wexner. The waters rights negotiated from West Reds will allow Wexner to continue to irrigate his landscaping. The city wants to develop water transmission lines, to put in a storage tank and attendant facilities near Wexner's property. The city needs to acquire easements. Gish said the city wants to maintain the existing raw water irrigation for lawns and landscap- ing and accent that with the water rights received from West Red. Gish told Council Wexner will provide the easements for the tank, will pay up to $70, 000 to bury the tank. Gish pointed out the city recognized they need to provide additional fire service to the Red Mountain residents. Gish said this is not a growth cost but an existing services cost. Wexner will pay all landscaping costs around the proximity of the tank and will pay connection charges at such time he connects to the municipal system. Gish told Council the city will enter into a new agreement for the raw water use. Wexner will have the rights for city water if he should build a guest house with the appropriate fees. Gish said all the extensions will be at Wexner's costs. Kevin Patrick told Council Wexner believes he is getting adequate consideration and can also see a benefit to the city. Gish said the city has justified the need to develop water trans- mission lines, route system, pump station and additional storage capacity to serve the existing customers at the Airport Business Center. Gish said the potential developments between the airport and the city are the Maroon Creek Development, Buttermilk sub- divisions, snowmaking, and Aspen Buttermilk. Gish told Council these subdivisions have the ability to put in their own water systems . Gish said the city has the plant capacity to handle these subdivisions. Gish said Maroon Creek Development and Aspen Buttermilk have the potential of offsetting 50 percent of the capital costs. 12 Aspen City Council Regular Meeting January 22, 1990 Gish said the Aspen Buttermilk will pay for extension of service past the city's line. County approval will be required before the city proceeds. Gish said the easements required are in the agreement. Water rights will be conveyed to the city; the city will lease these back to Aspen Buttermilk. Gish pointed out there is a similar agreement for Maroon Creek Development corporation for extension of water for their develop- ment. Easements are part of the agreement. Water rights will be conveyed to the city, there are some very senior water rights in this agreement. The water rights will be leased back to Maroon Creek Development. ORDINANCE #7, SERIES OF 1990 - West Reds Road Homeowners Councilman Peters moved to read Ordinance #7, Series of 1990; seconded by Councilman Tuite. All in favor, motion carried. ORDINANCE #7 (Series of 1990) AN ORDINANCE ENTITLED: EXTENSION OF MUNICIPAL WATER UTILITY TRANSMISSION LINES TO THE WEST REDS HOMEOWNERS AS LOCATED IN, OR ADJACENT TO, PORTIONS OF THE RED MOUNTAIN SUBDIVISION was read by the city clerk Councilman Peters moved to adopt Ordinance #7, Series of 1990, on first reading; seconded by Councilman Tuite. Councilman Gassman said he would like to see a paper at the public hearing that has the pros and cons from the city's point of view. Councilman Gassman said the city keeps expanding the water system, and he has a hard time seeing the benefit to the city. Councilman Gassman said there is money in the budget every year to expand the water system and to serve areas that the city is not serving. Gish said the basis of these projects is adding service to the customer base the city already has, specifically fire protection. Gish said he will present the pros and cons at the public hearing. Counc- ilman Peters agreed and noted this is very complex and inter- related. Councilman Peters said he would like to have a work session and would like to hear from the city's water counsel the guiding principles he is following in developing these plans. Council scheduled the work session for February 7 at 5 p.m. with the city's water counsel. Roll call vote; Councilmembers Gassman, yes; Tuite, yes; Peters, yes; Crockett, yes; Mayor Stirling, yes. Motion carried. 13 Aspen City Council Regular Meeting January 22, 1990 ORDINANCE #6, SERIES OF 1990 - Water Agreements Wexner Councilman Tuite moved to read Ordinance #6, Series of 1990; seconded by Councilman Peters. All in favor, motion carried. ORDINANCE #6 (Series of 1990) AN ORDINANCE ENTITLED: EXTENSION OF MUNICIPAL WATER UTILITY TRANSMISSION LINES TO THE LESLIE WEXNER PROPERTY was read by the city clerk Councilman Peters moved to adopt Ordinance #6, Series of 1990, on first reading; seconded by Councilman Crockett. Roll call vote; Councilmembers Tuite, yes; Crockett, yes Peters, yes; Gassman, yes; Mayor Stirling, yes. Motion carried. ORDINANCE #5, SERIES OF 1990 - Water Agreement Aspen Buttermilk Associates Councilman Tuite moved to read Ordinance #5, Series of 1990; seconded by Councilman Peters. All in favor, motion carried. ORDINANCE #5 (Series of 1990) AN ORDINANCE ENTITLED: EXTENSION OF MUNICIPAL WATER UTILITY TRANSMISSION LINES TO THE ASPEN BUTTERMILK ASSOCIATES PROPERTY was read by the city clerk Councilman Tuite moved to adopt Ordinance #5, Series of 1990, on first reading; seconded by Councilman Crockett. Roll call vote; Councilmembers Gassman, yes; Tuite, yes; Crockett, yes; Peters, yes; Mayor Stirling, yes. Motion carried. ORDINANCE #4, SERIES OF 1990 - Water Agreement Maroon Creek Development Councilman Tuite moved to read Ordinance #4, Series of 1990; seconded by Councilman Peters. All in favor, motion carried. ORDINANCE ## 4 (Series of 1990) AN ORDINANCE ENTITLED: EXTENSION OF MUNICIPAL WATER UTILITY TRANSMISSION LINES TO THE MAROON CREEK DEVELOP- MENT CORPORATION PROPERTY was read by the city clerk Councilman Tuite moved to adopt Ordinance #4, Series of 1990, on first reading; seconded by Councilman Peters. Roll call vote; 14 Aspen Citv Council Regular Meeting Januarv 22, 1990 Councilmembers Peters, yes; Crockett, yes; Tuite, yes; Gassman, yes; Mayor Stirling, yes. Motion carried. Councilman Tuite moved to direct the engineering department to initiate contracts with a consulting engineer to prepare drawings and bidding documents on all of the capital projects in anticipa- tion of a spring award of the contracts; seconded by Mayor Stirl- ing. Mayor Stirling asked if it would be better to wait until after the work session and deal with this issue on the February 12 agenda. Gish said he would like to have an early spring award to the contract. Councilman Tuite in favor; everyone else opposed. Motion NOT carried. SCHEDULE COMMISSION INTERVIEWS Council scheduled interviews for the Clean Air Board, Roaring Fork Transit, CCLC on Wednesday, January 31 at 4 p.m. PEDESTRIAN WALKWAY CONTRACT and ADVISORY COMMITTEE Roxanne Eflin, planning office, requested authorization of the contract in Council's packet for the consultant. Ms. Eflin requested an additional $9500 for a total of $19,500 for the contract. Ms. Eflin said there are also citizens requesting to be on the advisory committee. Ms. Eflin recommended Council appoint one member from each of the 8 sub-areas in town and from Parks Association, P & Z, CCLC, and Clean Air Board. Mayor Stirling moved to approve a budget increase of $9500 for the neighborhood plan and that some research be done to see if this might be a valid sixth penny allocation, otherwise it should be taken from contingency; seconded by Councilman Peters. Amy Margerum, planning office, said this project will result in a map, which will be transferrable to GIS, as well as a set of policies and priorities for trail links as well as schematic designs for each neighborhood. Ms. Margerum said the trees and ditches are included in the plan. Ms. Eflin told Council the Ute Avenue Improvement District representative has been apprised of this and will be involved. Mayor Stirling asked how many local groups applied for the planning contract. Ms. Eflin answered 3. Mayor Stirling asked what the criteria was that awarded the contract to Winter & Company. Ms. Eflin said staff felt his presentation and work in this field was superior and that he would provide the best information. Councilman Gassman said although he 15 Aspen Citv Council _Regular Meeting January 22, 1990 generally favors hiring local people, there may be an advantage to hiring someone with an outside view. All in favor, motion carried. Councilman Gassman moved to authorize the Mayor to sign the contract; seconded by Councilman Peters. All in favor, motion carried. Ms. Margerum suggested Council could appoint a member and an alternate member from each neighborhood area. Ms. Margerum told Council staff is trying to keep the committee at 11 members. Councilman Gassman moved to appoint Roger Hunt as primary and Welton Anderson as alternate from the West End; seconded by Councilman Peters. All in favor, motion carried. The Main Street representative will be David Melton; the Commercial core representative will be Jon Busch. Mayor Stirling moved to appoint Molly Campbell as primary and Larry Fredrick as alternate from the east end; seconded by Councilman Tuite. All in favor, motion carried. Councilman Peters moved to appoint Mari Peyton as primary and Hans Gramiger as alternate for the Shadow Mountain representative; seconded by Councilman Gassman. All in favor, motion carried. Councilman Tuite moved to appoint Cliff Cannon as Smuggler represe- ntative. Motion DIES for lack of a second. Councilman Gassman moved to appoint Patricia Scott as primary and Susy Ellison as alternate for Smuggler/Centennial; seconded by Councilman Peters. All in favor, motion carried. Charlie Tarver will be the representative for Snowbunny/Cemetery Lane; Skip Hamilton will be the representative for Lower Maroon Castle Creek are. The Parks Association is Al Blomquist; P & Z is Richard Compton; Clean Air Advisory Board is Bob Wade. RESOLUTION #6, SERIES OF 1990 - Affordable Housing Contracts David Myler, city attorney's office, told Council there are two properties, which were identified on Chuck Vidal and Glenn Horn's inventory as likely candidates for affordable housing, under contract. This contract is subject to Council ratification and gives the city about 30 days to evaluate the feasibility of developing affordable housing on these properties. Myler said he has put together a team which will come back to Council at a work 16 Aspen City Council Regular Meeting January 22, 1990 session in the next two weeks to present a variety of development options. Myler told Council one property is located at Seventh and Hopkins, which is vacant, and the other property is at the far east of Hopkins just this side of the footbridge, which has on it a single family dwelling. Myler reiterated the city has the ability to cancel the contracts in the next 30 days without penalty. Mayor Stirling said he is concerned about the city taking every role in the development of production of affordable housing units. Mayor Stirling said Myler has done a good job outlining the density the properties would hold; however, each one requires a subsidy. Mayor Stirling said he would like the city to consider using the afford- able housing zone and allowing more density/bulk and mass in order to get to a joint public/private partnership. Mayor Stirling said he would like to spend the next 30 days seeing if private deve- lopers would come forward. Mayor Stirling said these two sites are ideal because there are in the middle of multi-family areas. Councilman Peters said what the city can offer to private developers or other groups like the school district is bonding, development expertise, the housing authority. Councilman Peters said that is why the city should be taking the lead. Councilman Peters said he feel the city should also be putting together the pro forms and the financing packaging. Councilman Peters agreed the work session will be very valuable. Myler said he does not want to preclude the mechanism for bringing in the private sector. Myler said the city may be able to sell the property at a discount and stepping back, which would be the city' s subsidy. Councilman Peters said he is more interested in producing housing with a lower sales prices than he is in creating oppor- tunity for someone to get a unit for their employees. Mayor Stirling moved to pass Resolution #6, Series of 1990, ratifying two contracts presented for acquisition of real property to be developed for affordable housing purposes; seconded by Councilman Peters. Councilman Gassman asked where the money will come from. Myler said at this point the subsidy required will come out of the GRETT to be made available to the housing authority. The housing authority will negotiate additional financing out of the sale proceeds. Council will not have to make any decisions until they are aware of what funding is available. Council scheduled a work session February 6 at 5 p.m. All in favor, motion carried. Myler said the team will be~himself, Glenn Horn, Wayne Stryker and Joe Barrows. Each member of the team has had some experience with 17 Aspen Citv Council Regular Meeting Januarv 22. 1990 the city and with affordable housing project. Myler said he needs assistance in the areas of land planning and architecture in order to do cost estimates and what can be done on site. Councilman Tuite asked if the city goes ahead with the design team if they are precluding the private sector from giving an offer. Myler said he feels this would facilitate the private sector development. Councilman Gassman said he has misgivings about this and would rather use a more rationale consultant selection process. Council- man Gassman said these are two substantial projects and should have some fairly clear request for proposals and opportunity for other professionals to submit proposals. Councilman Gassman suggested the extent of the city's involvement might be to buy the land and rezone it. Councilman Peters said Council has given Myler a lot of leeway in looking at affordable housing projects. Councilman Peters pointed out in order to rezone the land affordable housing zone, it requires a development plan. Myler said he feels the city should know as much about the potential on the property as possible. Mayor Stirling suggested these consultants continue until the work session. The Council can make a determination at that work session on how to go forward. Mayor Stirling moved to give Myler the authority to go ahead and prepare for the work session on February 6, 1990; seconded by Councilman Peters. All in favor, motion carried. ASPEN MOUNTAIN LODGE ISSUES Mayor Stirling said there is a request to reduce the escrow at Galena Place. Sandy Stuller, city attorney's office, said it is reasonable Council would authorize the city engineer to review the applicant's numbers and to verify that a reduction in the land- scaping escrow for Galena place is appropriate. Ms. Stuller recommended Council do this with the conditions imposed in Resolu- tion #46, which says they are proceeding at their on own risk and the fact the city is authorizing the applicants to do this will not come back and haunt the city in any litigation. Councilman Crockett moved to authorize the city engineer to proceed under the conditions of Resolution #46, 1989; seconded by Council- man Tuite. All in favor, motion carried. The second request is for a subdivision plat for Galena Place. Ms. Stuller recommended that staff be authorized to review the plat and to issue approval subject to the conditions imposed in Resolution #46. 18 Aspen City Council Regular Meeting Januarv 22, 1990 Councilman Gassman moved to authorize the staff to review the subdivision plat for Galena Place; seconded by Councilman Tuite. All in favor, motion carried. Ms. Stuller told Council the escrow documents expired January 19 for the $800,000 part of the overall $1,800,000 escrow. Ms. Stuller suggested Council approve this request with the conditions imposed in Resolution #46; (2) the affirmations made in Bob Hughes letter of January 15, and (3) that the requirement for $650,000 in order to refill if the project does not go forward should remain intact. Perry Harvey, representing the applicant, told Council the agreement was until the applicants poured the top slab over the ball room, which they are in the process of doing. Ms. Stuller said she would like the language regarding the $650, 000 back in the agreement. Harvey agreed. Councilman Peters moved to approve the substitution of the cash for a letter of credit subject to the 3 conditions; seconded by Councilman Gassman. Harvey said they would like to do the same thing Council just approved for Galena Place. Harvey told Council the applicants have installed about $370,000 worth of the improvements that are guaranteed by the $800,000. Harvey said they will have all the invoices and would like to pursue reducing this escrow by the amount already installed. Harvey said this will be based upon the city engineer's review of the work and of the invoices and amount paid. Harvey said this will reduce the escrow to about $430,000 in cash. Harvey said the $650,000 will still be in escrow. Ms. Stuller said if she can see that the $650,000 is secured by the escrow agreement, this request for reduction is fine with her. The letter of credit will have to be modified to make sure the $650, 000 can be withdrawn. Ms. Stuller said she will prepare a resolution covering these points and circulate it to all the Council members. All in favor, motion carried. Elyse Elliott, engineering department, pointed out the 1990 paving proposed under serial levy. Council agreed with the program for 1990. Council continued the meeting for an executive session to February 1, 1990 at noon. Council left the meeting at 8:55 p.m. ~~ J ' ~ v"' Kathryn S-' Koch, City Clerk 19 Continued Meeting Aspen City Council January 29, 1990 Mayor Stirling called the meeting to order at 5:00 with Councilmem- bers Tuite, Gassman, Peters and Crockett present. Acting City Manager Bill Efting told Council the Commissioners have requested Council meet with them at dinner either March 6 or 20 to discuss the school district buildings. Council said they would rather meet with the Commissioners either at City Hall or the Courthouse. Mayor Stirling requested an agenda be put together prior to the meeting. Council suggested revenue sharing and office space as topics. Mayor Stirling read a letter dated January 25, "In speaking with many residents in the community concerning the upcoming February 13th special election, an often asked question is the city potential liability from the lawsuit from the developer if option B of question 5, a smaller hotel, is approved. I feel it would be beneficial to the community and assist a more informed election if the city's legal counsel could address this question. Therefore, I respectfully request the City Council ask legal counsel for a statement on this matter that could be reviewed by the public prior to the election" signed, Jim Curtis as treasurer Aspenites for a Smaller Hotel. Mayor Stirling asked if there is information that the city attorney's office could provide that would be helpful to the citizens. Sandy Stuller, city attorney's office, said she feels offering the hotel in the alternative form of approval is defen- sible. Ms. Stuller said she can explain the rationale for doing that or for defending that approach. Mayor Stirling said he feels this would be very useful to people. Councilman Peters said this is a fair request. Mayor Stirling moved to respond to the request and direct the city attorney to prepare a response to that letter and to provide that information to the Council just as soon as possible; seconded by Councilman Peters. All in favor, motion carried. ORDINANCE #1, SERIES OF 1990 - Affordable Housing Mayor Stirling said there have been a series of changes proposed to the ordinance, which are in the planning office memorandum. Mayor Stirling said the purpose of Ordinance #1 is to preserve the diversity of the town, to preserve the town's character, to keep traffic off highway 82, to keep people closer to their work. Mayor Stirling said there are 970 full deed restricted unit in Pitkin County, housing about 25 percent of the work force. Mayor Stirling pointed out one of Council's goals is a vacancy rate in affordable housing by 1991 and to house 50 percent of the work force by 1995. 1 Continued Meeting Aspen City Council January 29, 1990 Mayor Stirling said the issues are production, stabilization, challenge of attrition, density increases, "not in my backyard", cyclical changes, and the role of the commercial sector. Mayor Stirling said he feels this ordinance is a good start towards solving the affordable housing problem. Amy Margerum, planning director, reminded Council they wanted to look at the big picture of affordable housing, not just one element. The city has adopted an affordable housing zone district and has made some progress on housing production and the buy down program. Ms. Margerum said staff has been trying to get a handle on the need for employee housing to match that to what is being done. Tom Baker, planning office, presented a chart identifying the current employee units, the demand for units, short fall for 1989, demand in the next 6 years. Baker said 1,000 unit between now and 1995 will be needed to meet the employee housing need. Baker gave Council a chart which identifies programs the Council either has in place or is proposing through this legislation. Baker pointed out there is about a 200 unit shortfall. Baker presented a map with potential affordable housing sites and those that have already been approved. Baker told Council the multi-family demolition and replacement section of the ordinance is the same as it came out of P & Z. Baker told Council staff recommends that if someone demolishes a multi-family structure that they replace 50 percent of the bedrooms and 50 percent of the residential square footage as deed restricted affordable housing. Baker said Ordinance #1 includes options for mitigating employee housing impacts on single family, which are either cash-in-lieu or providing an attached or detached accessory dwelling unit. This was to be at the city's discretion. Baker said for duplex the options are cash-in-lieu, providing 2 free market and 2 accessory dwelling units or 1 free market and 1 resident occupied unit. Baker told Council Ordinance #1 in first reading also contemplated an 80 percent exemption for a single family or duplex development where 80 percent or below of maximum build out, you would be exempt from the housing mitigation aspects. Baker reminded Council at the last meeting they directed staff to try and develop incentives, especially in the single family and duplex areas. Baker said one concern about the 80 percent exemption rule, once a person it is at 81 percent, they are dealing with mitigating the entire affordable housing impact. There was no incremental approval. Baker said since first reading staff has spent time reviewing employee generation from single family and duplex. Staff has determined that the city can expect new residential construction to generate .5 employees per 1,000 square feet of new construction. Baker said this change would only require people to mitigate the 2 Continued Meeting Aspen City Council January 29, 1990 impact associated with the expansion, not with the entire struc- ture. Baker told Council staff is suggesting cash-in-lieu be at the property owners discretion rather than the city's. Baker said this is one incentive the city can offer. Baker said if the applicant is a working resident who is rebuilding or enlarging their primary residence, the fee be deferred until that unit is sold to a non- resident. Baker told Council originally staff was looking at mandatory occupancy of accessory dwelling units. Baker suggested occupancy be if a unit is rented, that person must be a qualified employee of the community. Baker said an owner would not be required to put someone in an employee unit. Baker told Council P & Z felt strongly the units ought to be rented. Baker said after discussion with property owners, staff felt this was a disincen- tive . Baker told Council staf f feels it is important to get the inventory in place in the community. Baker said the units will ultimately be used and the community will benefit from these units . Baker said a lot of residents have been concerned this will double the density of the community. Baker told Council the planning office retained the services of Glenn Horn to identify how many lots would be affected by this ordinance. Baker said Horn identified 100 lots in neighborhoods in Aspen that could be affected by this ordinance. Baker said the duplex option that allows for 2 free market and 2 resident occupied units is inap- propriate. Staff is recommending this option not be considered. Baker pointed out staff is recommending a sunset provision or 2 or 3 years at which time staff be required to give an evaluation of the impacts of this ordinance. Baker showed photographs of a variety of cottages throughout the west end where employees are housed. Baker said the cottage infill program would allow someone who has a single family or duplex unit to provide a detached cottage on site up to 750 square feet. Baker said staff is working on variations that would be required in the zone district, like allowing them to be set in the alleys or on top of garages. Staff is also looking at variations for rear yard setback or height or lot coverage or parking. Baker said in the R-6 or R-15 if someone wanted to do an attached accessory dwelling unit, the code would allow that structure to go to the maximum FAR of the site plus a bonus of 50 percent of the accessory dwelling unit that would be provided up to a maximum floor area bonus of 250 square feet. Baker said this would give some relief to the property owner that wants to provide an accessory dwelling unit but without impacting the neighborhood with excessive floor area. This bonus would only be given to people providing an accessory dwelling unit above grade. Baker said for a detached accessory dwelling unit, the code would provide a maximum 375 square foot bonus. 3 Continued Meeting Aspen Citv Council Januarv 29, 1990 Baker said a concern brought up is that as long as cash-in-lieu is discretionary with property owners, they will always opt for cash- in-lieu. Baker suggested the city look at a decrease of maximum FAR to do that. Baker said Council has put on the ballot two fund raising issues for affordable housing, the GRETT to 1 percent RETT and the additional .45 sales tax. Baker said this will give Council the opportunity to provide financial incentives for people who would like to do accessory dwelling units. Baker suggested a $20,000 grant to someone providing an accessory dwelling unit that is both price and occupancy restricted and required to be occupied. Baker said the next issue is the grandfather aspect. Baker said one way is if a person has already mitigated their employee housing impacts through the growth management plan, they are exempt; if a person is vested, they are exempt; if an application is in the building department prior to P & Z's approval of this resolution, they are exempt. David Myler, city attorney's office, this exemption should also apply to projects that have been determined to be exempt from GMQS and were approved as either subdivision or PUD . Baker told Council he has had discussion about the R-15B zone district, annexed a few years ago. Baker reminded Council the residents were very concerned about preserving the single family, locally oriented quality of these areas. The residents made several concessions in creating a new zone district. Baker said a typical R-15 zone would allow 4500 square feet on a 15, 000 square foot lot; the R-15B zone allows 3100 square feet. It also has a prohibition against duplexes in that zone district. Baker said the residents feel they would like to diminish the potential of having large speculative homes or duplexes. Baker said staff considered not allowing the accessory dwelling unit in the R-15B zone; however, to be consistent that option will remain for residents of this area. Baker said this is a community and neighborhood preservation ordinance as well as an affordable housing ordinance. Baker noted that demolition and replacement is only one piece of Council's overall program for affordable housing. Baker said this code amendment will be only one of a few that can effectively put residents back into neighborhoods and keep year round residents in the community. Mayor Stirling opened the public hearing. Nick McGrath, Aspen Grove resident, said this ordinance started out to deal with demolition in the central core and may have gone awry. McGrath asked whether it is appropriate to exact from single family 4 Continued Meeting Aspen City Council January 29, 1990 homes at this level. McGrath said he feels $3,000 to add 300 square feet is excessive. McGrath told Council he favors taxation for employee housing and would favor a property tax that falls uniformly on everyone as the burden of the tax follows a public benefit. McGrath said Aspen Grove is not appropriate for duplexes . McGrath said the 80 percent trigger in the ordinance goes to what one's FAR is. McGrath said the FAR in Aspen Grove, by their own request, is already 70 percent of everyone else gets. McGrath said there is a difference, not recognized in the ordinance, between undeveloped land and employee impacts and a simple remodel. This penalizes the person who has an older home, not someone who just comes in and has a higher impact. Larry Fredrick said he feels the burden for employee housing should be dispersed in a more fair and equitable manner. Fredrick said the people already living here in moderate homes should not bear such a large burden. Fredrick said this ordinance would make it difficult for some locals to remain in this community. Fred Peirce said there is a flaw in the ordinance in how it is applied to single family and duplexes. Peirce said this ordinance will discourage the community format. Peirce said a deed restriction ruins the value of a property because people cannot get mortgages on deed restricted properties. Peirce said the city should pay attention to those employees they are trying to help. Peirce said the ordinance should include incentives rather than disincentives. Ms. Margerum told Council the planning office is not proposing to go with the 80 percent anymore. Ms. Margerum said local residents living in their homes would not be penalized and would only pay the fee when the house is sold to a non-resident. Ms. Margerum said one also has to look at what the price of an addition is worth on the market. John Lasalle said the only fair way to handle this is through a broad based property tax. This ordinance would be putting the burden on a small number of people. Lasalle said this ordinance will encourage people to build extremely small accessory units or pay cash-in-lieu, which has not generated many units so far. Lasalle said for the city to provide employee housing, they should be looking at an FAR bonus. Penney Evans said Council has worked hard to find ways to provide employee housing; however, this ordinance is defeating that goal. Ms. Evans said this ordinance will make additional expenses to local residents. The accessory units will be built in the least attractive part of the structure, like in the basement. The density impact is more than just square footage, it is parking and storage. Ms. Evans told Council she has spoken to 8 lenders who have said it would be near impossible to find an investor for a deed restricted property. Ms. Evans said if Council will not drop 5 Continued Meeting Aspen Citv Council Januarv 29, 1990 the single family and duplex requirements from the ordinance, they should include incentives and make this as voluntary as possible. Linda Conger said this is asking a very small section of the community to bear the burden that should be community-wide. Chris Bigley implored Council to allow the free enterprise to the private sector to create affordable housing. Gideon Kaufman said this ordinance breaches the trust of the newly annexed Aspen Grove. Kaufman said Aspen Grove negotiated smaller FARs and no duplexes. Kaufman asked what increased value for persons homes has to do with the city's ability to tax people for employee housing. Kaufman said the ordinance is unfair as it relates to single family homes. This is not a community preservation ordinance but is a locals small home owners persecution ordinance. Kaufman said if this is a community problem, all people should contribute to its solution. Sally Roach asked Council drop single family and duplex from this ordinance. Brian Harper said he has not seen much support for this ordinance. Joan Livingston questioned that businesses are getting the advantage of employees but are not housing any of them. Jim Markalunas suggested if the expansion is family-oriented or for members of the family that there be an exemption. Mark Friedberg said some people do not want to have an accessory dwelling unit on their property. Friedberg suggested the commercial sector house more than 60 percent of their employees. Friedberg said the city is trying to solve problems placed on the community by the commercial sector. Putting this solution on the single family owner is the wrong place to put it. Friedberg said he does not have a problem with this covering duplexes, as these owners have already chosen to live next to other people. Bill Lipsey said housing is a national problem. Every community has to recognize they will have to increase the density in order to solve this problem. Lipsey questioned what kind of ordinance will work to encourage people to build accessory dwelling units. Lipsey said in order to do this, Council will have to open up and to give positive incentives and no penalties. Jeffrey Shoaf supports earlier comments and stated that single family and duplex should be exempt. Howie Mallory said there is limitations to financing deed res- tricted housing. Mallory said in the Snowbunny Lane area one of the largest concerns is impact. In some cases there could be triple the density. Mallory said housing for families is different than for single people. Mallory asked Council why something like Midland Park is not being investigated by the city. Joe Wells pointed out in the commercial core there is a provision which limits to 1 bedroom per 1,000 square feet of land, which makes it difficult to provide housing in the commercial core. 6 Continued Meeting Aspen Citv Council Januarv 29. 1990 Bil Dunaway said the provision to allow postponement of the housing impact fee solves a lot of the problems brought up by the single family owners. Ramona Markalunas said she would like to see a model of a city block with the added density of affordable housing units with the maximum FAR allowed. Mayor Stirling continued the public hearing to February 12, 1990. Councilman Peters said it is not the intention of this ordinance to solve the housing crisis with this ordinance. Councilman Peters said he likes what the planning office has recommended for incorporation into this ordinance. Councilman Tuite said he does not feel remodels or add-ons should be taxed or penalized in any way. Councilman Tuite said he likes the recommendation on bonuses but does not like the 300 square feet unit size. Mayor Stirling said he is wrestling with if the city would get as much production of units by simply providing options and incentives on a volunteer basis as opposed to requirements. Council left the meeting at 7:30 p.m. Kathryn Koch, City Clerk_ 7