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HomeMy WebLinkAboutminutes.council.19910826-- Regular Meeting Aspen City Council August 26, 1991 CITIZEN PARTICIPATION 1 CONSENT AGENDA 4 LIQUOR LICENSE RENEWALS 4 SPECIAL EVENT PERMITS 4 CONCEPTUAL SPA RIO GRANDE 4 ORDINANCE #17, SERIES OF 1991 - Tagert Lot Split 9 AUTHORIZATION TO SUBMIT REZONING APPLICATION KRAUT PROPERTY 13 PROPOSED FNMA FORECLOSURE PROCEDURES 14 ACRA AUDIT 17 ORDINANCE #35, SERIES OF 1991 - Field Greenline Vested Rights 18 ASPEN INSTITUTE BUILDING PERMIT REVIEW 18 ORDINANCE #32, SERIES OF 1991 - In-line Skates 19 APPROVAL OF CONTRACT FOR ROARING FORK RIVER TRAILS CONSTRUC- TION 20 REQUEST TO WAIVE MORATORIUM WATER MAIN LINE EXTENSIONS- RUBEY LOT 6 AND LITTLE CLOUD SUBDIVISION 20 22 Regular Meeting Aspen City Council August 26, 1991 Mayor Bennett called the meeting to order at 5:05 p.m. with Councilmembers Pendleton, Richards, Reno and Peters present. CITIZEN PARTICIPATION 1. Cindy Griem, representing the Mother Lode Volleyball tourna- ment, requested Council approve a vending license for August 31, September 1 and 2 for Wagner, Koch, Rio Grande and Willoughby Parks. Councilman Peters moved to put the license agreement on the consent agenda; seconded by Councilman Reno. All in favor, motion carried. 2. Nick Coates made an appeal for the city to abide by the regulations regarding the Marolt open space. Coates said the property down by Castle Creek is becoming a mess and being used for just about anything including a parking lot. Coates requested the city clean this up. Carol O'Dowd, city manager, told Council she will get a report back to Council on what the city owns and what they are doing with it. 3. Stan Furr, representing a homeowner in Oklahoma Flats, showed the Council pictures of the city-owned land across the river and how j unky is has become with cars . Mayor Bennett said this will be discussed during the Rio Grande SPA. 4. Patti Fox, representing the Waldorf School, told Council they have been negotiating with the county to lease the Hunter Creek room. The zoning department has said a private use in a public facility is not an acceptable use. Ms. Fox told Council they are only asking for a 2 month lease. Mayor Bennett suggested Council give a straw vote approving this temporary use. Amy Margerum, planning director, said she is concerned about allowing uses that are not allowed and then saying the city is not going to enforce it. Ms. Margerum said she would rather Council take action to allow this use to continue for 2 months. Ms. Margerum said she does not fee this use is a threat to the public zone district for a 2 month use. Councilman Peters suggested a straw vote on whether Council looks favorable upon this and allow the Waldorf school to pursue another location. If that does not work, they can come back to Council for formal action. Ms. Fox told Council they need to have an action before September 9th. Councilman Peters said Council can convene a special meeting. Councilman Peters said Council may be consider- ing an ordinance to allow temporary uses to occur on a short term basis, and this private school is non-profit, he would look favorably on a temporary use if all other lease possibilities are exhausted. Councilwoman Richards agreed she would like to broaden the educational opportunities in the community. Councilwoman 1 Regular Meeting Aspen City Council August 26, 1991 Richards said she is concerned about precluding the process and not having a public hearing. Councilman Reno said as long as this is a 2 month use, he has no problems. Mayor Bennett said he has no problems with this request. COUNCILMEMBER COMMENTS 1. Councilman Peters said he has received a copy of a letter from Jed Caswall, city attorney, responding to the EPA who made certain allegations that the Council is not in compliance with the SSC. Councilman Peters said he agrees with the letter from Caswall. Councilman Peters said there is also a letter about indemnification of an attorney for the city in the Artes-Roy litigation. Council- man Peters agreed with retaining Sandy Stuller, who will do a good and professional job. Council agreed. 2. Councilman Peters said he would like to schedule 15 minutes on the next agenda to meet with the Council's appointees to the rails and trails task force of the Roaring Fork Forum. Council agreed. 3. Councilwoman Richards said the sidewalk at Hunter and Main is deteriorating. Councilwoman Richards requested a report on who is responsible for this and how it will be taken care of before winter. 4. Councilwoman Richards said Council has been discussing an extension to Herron park and has received an appraisal on this. Councilwoman Richards requested Council discuss this at the end of the agenda. 5. Councilwoman Richards said Council has received a letter from the Granola Hoe Down requesting funds. Councilwoman Richards said this event seems worthwhile and asked this be scheduled at the end of the meeting. 6. Councilwoman Pendleton reminded Council she is the representa- tive for the OSAP grant. A coalition of 22 people representing various sectors of the community has been formed. This coalition has been meeting for 8 months. ASAP received a grant of $250,000 for 5 years. The group is called Aspen Partnership for the Healthy Community. Their mission statement is, "to provide a forum for the community to create and promote positive lifestyles that offer alternatives to substance abuse". Councilwoman Pendleton said to meet conditions of the grant there has been training for the coalition members, a retreat, training in team building, problem solving, decision making, effective needs assessment and talks about state of the art prevention. Councilwoman Pendleton said the coalition has been gathering information from various members of the community and has inventoried the existing programs. Four task 2 Regular Meeting Aspen City Council August 26, 1991 forces have been established; youth, community norms, family strengths, and Latino. Councilwoman Pendleton said Aspen has a lot of temporary special event permits. Councilwoman Pendleton suggested when groups come before Council to get special event permits, they be required to also serve non-acholic beverages. Councilwoman Pendleton said this would create an alternative and make it more the norm. Jed Caswall, city attorney, said Council can require licensees to supply alternative non-alcohol beverages. Tim Cottrell, president of the restaurant association, said they would like to work with Council on any new policies. Cottrell said most licensees already serve some type of non-alcoholic beverage. Councilwoman Richards said she would like to create a procedure so that Council can review how many people will be patrolling the groups, how many checking ids. Caswall said his office is working on a liquor license handbook for Council and this could be included. 7. Councilwoman Pendleton asked the status of paving on Main street. Carol O'Dowd, city manager, told Council the Department of Transportation went out for bids. They received one bid which was way over their ability to accept. The Department of Transportation will not be doing any work until spring. Councilwoman Pendleton asked if there is a way to have the intersections fixed before this winter. Ms. O'Dowd said she will talk to the DOT and report back to Council. 8. Councilman Reno said all week is sister cities week. There is a delegation here from Japan and there are a number of events taking place. Councilman Reno said the official signing of sister cityhood with Shimakappu, Japan, will be Thursday, August 29th at the Hotel Jerome. The public is invited. 9. Mayor Bennett announced that the Ritz is ready to post of $4, 000, 000 demolition bond. Before doing so they want to amend the PUD to cut the costs of the project by dropping a sky bridge, eliminating 19 rooms, eliminating 1 of the 3 planned restaurants. 10. Carol O'Dowd, city manager, said the crosswalks will be painted within the next two weeks. 11. Carol O'Dowd, city manager, requested (b) Approval of Contract for Roaring Fork River Trails Construction be taken off the agenda. The city does not have all the easements yet. Council moved this to IX (g) . 12. Carol O'Dowd, city manager, requested a work session on water projects near the end of September. Ms. O' Dowd told Council she will coordinate with the mayor and get a date. 3 Regular Meeting Aspen City Council August 26, ~_ CONSENT AGENDA Councilman Reno moved to approve the consent agenda as amended; seconded by Councilwoman Richards. Councilwoman Richards said she would like to discuss Rubey Lot 6 waiver of moratorium water main line. Councilman Reno withdrew his motion Councilwoman Richards moved to put consent item (e) to IX(h); seconded by Councilman Peters. All in favor, motion carried. Councilwoman Richards moved to approve the consent calendar as amended; seconded by Councilwoman Pendleton. The consent calendar is• A. Minutes - July 22, B. Citizen Committees C. Approval of Finance D. Vending Agreement - August 12, 21, 1991 for Aspen Area Community Plan Director Mother Lode Volleyball Tournament All in favor, motion carried. LIQUOR LICENSE RENEWALS Councilman Peters moved to approve the liquor license renewals for Main Street Bakery; Milan's; La Cocina; seconded by Councilman Reno. All in favor, motion carried. SPECIAL EVENT PERMITS Councilwoman Richards moved to approve the special event permits for the Eagle's Club and Filmfest and the Smuggler Land Office Block Party; seconded by Councilman Reno. Tim Cottrell, president of the Restaurant Association, said Council has discussed a performance bond for any new licenses. Cottrell said the restaurant association would appreciate being included in the discussion. Council agreed. All in favor, motion carried. CONCEPTUAL SPA RIO GRANDE Mayor Bennett said at work sessions Council discussed having a mini-master plan for the entire area created. This will take 3 to 5 months to complete. Mayor Bennett said there are a number of short term proposals that cannot wait that long, like the request for an expanded tent, the snow melt facility and recycle facility, and river enhancement measures. Leslie Lamont, planning office, pointed out there is no ability in the code in SPA overlays to 4 Regular Meeting Aspen City Council August 26, 1991 approve temporary uses or their amendments. Ms. Lamont told Council there are several existing uses on the Rio Grande that wish to modify their uses. Staff is recommending developing a temporary use mechanism in the code. Ms. Lamont said the recycle facility should be upgraded to take care of some of the trash problems; the theatre group would like to expand their tent and add a storage shed. Staff needs to develop language for the code to give Council the institutional ability to approve these. Ms. Lamont recommended Council continue this public hearing until the master plan is completed. Ms. Lamont requested Council give direction on the river enhancement program. This is new development and the plan can get going easily. Ms. Lamont recommended a committee of people be used for this plan. Ms. Lamont said staff will set an outline of the master plan process. Council will have to amend the code to allow Council to look at temporary uses. Mayor Bennett opened the public hearing. Ed Cross asked the projected impacts on the playing field at Rio Grande . Cross said it is in the best interests of the community to maintain the most open space and playing surfaces as possible. Mayor Bennett said that is the type of question that will be addressed in the mini-master plan. Ms. Lamont pointed out this land was bought with 7th penny or transportation funds, with the intent to locate rail service in this area. The playing field was given interim approval. Ms. Lamont said there are several different plans for the train, which would use different amounts of the playing field. Harry Teague, representing the theatre and art park, told Council they have put considerable financial and time effort into the process for this SPA approval. Teague said the theatre could come up with boundaries for conditional approval that would not conflict with other applicants. This would break up conceptual approval as a whole. Pat Fallin, Aspen Theatre Company, said they need to have approval soon so they can start fund raising for their tent, restrooms and storage facilities. Ms. Fallin encouraged Council to adopt a plan for this land. This area has been laying vacant and there are car parks, impound lots. Councils are always waiting for the better options. Susie Langenkamp said other theatre groups have a home. Ms. Langenkamp said the Aspen Theatre Company has no place to call home and no space in Aspen is appropriate or affordable. Sara Garton, P & Z permission for some disservice to brea the theatre and ar member, said it is possible to grant temporary k this property t park. Gaard of these uses Ms. Garton said it would be a up and have conceptual only for Moses, trolley group, said they 5 Regular Meeting Aspen City Council August 26, 1991 have been working on the trolley proposal for 13 years. Jim Duke, recycling, told Council they would like permission to temporarily upgrade the facility until Council decides whether this is an appropriate use at the Rio Grande. The recycle facility needs to be cleaned up. Phoebe Ryerson said this area is huge and can accommodate all the uses envisioned for it, including trails, parks and waterfalls. Mayor Bennett closed the public hearing. Councilman Peters agreed that separating off the art park and theatre is not proper. Councilman Peters said there is not a lot of competition for the theatre land, but Council has not seen how it integrates into the whole. Councilman Peters said there are ways to deal with the temporary needs of the theatre group. Councilman Peters said the way the different interested parties should relate to each other throughout the process is also important, including the city and county. Councilman Peters said the snow melt facility and impound lot should not just be the city's problem. It is a part of the use of the Rio Grande right now and the city needs help relocating it. Councilman Peters said Council has spent a lot of time, knows what the proposals are, and should go through the master plan process. Councilwoman Richards said she has been an avid art park volunteer . Councilwoman Richards agreed it is important to go through this process and to take the time to review all the old plans that were presented. There has been a lot of work done in the past to determine what uses are appropriate for the Rio Grande. Council- woman Richards said if the city waits for the perfect plan to appear, nothing will ever happen and this land will not be used. There are uses for this property that the community can see do not fit, like the snow melter. Councilwoman Pendleton said she favors getting a final master plan. This Council has not had a chance to review all the work that has been done. Councilwoman Pendleton said there may be a vote on whether the community wants the trolley or not. Councilwoman Pendleton said the Rio Grande is not an appropriate location for the snow melt. Councilman Reno said the more temporary uses on the Rio Grande, the more people will lay claim to this space. Councilman Reno encouraged Council to come up with a master plan in 3 to 5 months . Councilman Reno said he would like staff to immediately investigate other locations for the impound lot. Mayor Bennett agreed Council needs to take definite steps and to look at the past plans. Mayor Bennett said he would like Council to direct staff to begin the process of planning the river enhancements, and to create the ability for short term approvals within this SPA, and to give staff direction about the snow melt. Council also needs to discuss the impound lot and the new requests from the recycle center. 6 Reaular Meetina __ Aspen City Council Auaust 26, 1991 Councilman Peters moved to direct staff to research a mechanism for temporary approval for items, typically represented by the art park expansion, the recycle facility redesign, and the addition to the snow melter of a grease trap; seconded by Councilwoman Richards. Councilwoman Richards asked why there is not a mechanism already in the code to allow temporary uses. Councilwoman Richards asked if this code amendment should be more broad ranging, not just altering the code for the Rio Grande. Councilwoman Pendleton said she wants the snow melter off this area. The city keeps things going on this property, then they become permanent uses. Councilwoman Richards said she would like a work session specific to snow melt and to the impound lot. Councilwoman Richards said it may be too late to cancel the snow melt operation for this year. Carol O'Dowd, city manager, said the staff has put a lot of work into the snow melt and alternative location and would like to have a work session with Council. All in favor, with the exception of Councilwoman Pendleton. Motion carried. Councilman Peters moved to direct the planning office to budget in 1992 fund for riverbank planning so Council can see this in the next budget cycle and suggest how much money would need to be earmarked out of the open space funds for that work; seconded by Councilwoman Richards. Councilwoman Richards said she would like the planning department to pursue grants for that work from the Division of Wildlife or other groups that work on stream bank improvement. Councilman Peters accepted that amendment to his motion. All in favor, motion carried. Teague said an issue that comes up a lot is what lands were bought with seventh penny money. Teague suggested staff research and establish what land was bought with what funds. Councilwoman Pendleton moved that Council supports the theatre tent and they should go out and get money at their own risk; seconded by Councilman Reno. Council discussed whether they should have staff draft a lease. Councilman Peters said it is not Council's responsibility to make everything work for everyone. Councilman Peters said the city attorney should get from the theatre a list of lease provisions necessary for them to proceed with any use of the land once that use is legitimized. Councilwoman Pendleton withdrew her motion. 7 Regular Meeting _ Aspen City Council August 26, 1991 Councilman Peters moved to direct the city attorney to solicit from the theatre company a list of lease provisions that might be necessary for an interim use of the expanded tent and for him to draft those provisions with protections for the city into to a lease for Council's review; seconded by Councilwoman Richards. Councilwoman Richards said she would like some research on who currently carries liability on the area. All in favor, motion carried. Jed Caswall, city attorney, said he would prefer to draft the leases after the master plan so that the premises can be defined. Caswall said some or all of these may require public votes. Councilwoman Richards said she would like understandings from some of the users, like a commitment from the recycle center they will clean up blown debris and a commitment from the soccer camp that they take some of the liability. Councilwoman Pendleton moved to direct staff to seriously work on finding a new location for the snow melt; seconded by Councilwoman Richards. All in favor, motion carried. Councilman Reno moved to direct staff to move the impound lot after Labor day, including the RV parking; seconded by Councilwoman Richards. Councilwoman Richards said the city will have to deal with the forest service about RV parking next year as this ties in with the Maroon Bells bus tour. Caswall said Aspen does very little towing as there is no place to put the cars. The police department has looked for alternative impound lot locations. There are not any. Caswall said it will have a significant impact on the towing if this area is not available for short term impound. Mayor Bennett said he would like to know what moving the impound lot will cost the city, what affect this will have on the streets. Councilman Reno amended his motion to instruct the staff to investigate finding alternative locations for the temporary impound lot and to report back no later than September 9th; seconded by Councilwoman Richards. Councilwoman Richards said all cars at the Rio Grande that have been there more than one week should be moved to the dump immediately. All in favor, motion carried. Councilman Peters moved to have the planning office review potential planning for the railroad terminal; seconded by Council- man Reno. Councilman Peters said this is an important issue. The city is involved in the Roaring Fork Forum. Some staff time should be 8 Regular Meeting Aspen City Council Auciust 26, 1991 devoted to this issue. Councilman Peters said a lot of work has been done by citizen groups. The city has very little to go on. Councilman Reno asked if this includes a budget request from staff . Councilman Peters said if necessary. Mayor Bennett said the citizen groups that support the train should bear a lot of burden for bringing proposals to Council. All in favor, with the exception of Councilwoman Richards. Motion carried. Councilman Peters moved to continue the public hearing to November 25, 1991; seconded by Councilwoman Pendleton. All in favor, motion carried. ORDINANCE #17, SERIES OF 1991 - Tagert Lot Split Kim Johnson, planning office, reminded Council at the last meeting there were outstanding questions for staff to research. Ms. Johnson included the minutes from the 1988 lot split approval as well as the staff memo from that hearing. At the last meeting, Council questioned the non-conformity of the house on lot 1. The house was built without the access easement in place and was built to within 27 square feet of the maximum floor area. When the easement is dedicated, that land area will be removed for purposes of calculating FAR. The house will then be an FAR of -27.25 square feet. Ms. Johnson said Council requested a definition of building envelope and how staff would interpret that phrase. Ms. Johnson said the land use code does not have a definition of building envelope. Ms. Johnson said in common usage, she would describe building envelope as a designated area in which structures must be located on a site. Ms. Johnson pointed out plat note #4, filed on the plat, restricted development to include any landscaping or manmade features. Ms. Johnson said the building envelopes on the Tagert lot on the north, east and south sides are in conformance with the standard R-6 setbacks. Along the western side, the setback line would be approximately halfway up the slope. At the time of the original lot split, the neighbors recognized this could be a problem. Ms. Johnson told Council staff has relied on the original 1988 approval regarding the location of the structures and the restrict- ion placed on the building envelope. Ms. Johnson said staff feels the neighbors do have a vested interest regarding the development on the western side of the slope. Ms. Johnson said the patios that are built on lot 1 should not be an impact to the Sneaky Lane neighbors, either visually or for noise. Ms. Johnson recommended the patios be allowed to remain. If Council agrees, there should be a section to include the patios in the building envelope in 9 .-~ Regular Meeting Aspen City Council August 26, 1991 order not to create another nonconformity. Lot 2 is still vacant and staff feels any development should be according to the restrictions placed on the plat. Spencer Schiffer, representing the owners of lot 2, gave Council a packet of information. One item showed the restriction on the plat. Schiffer said normally restrictions are covered in a covenant or it is clearly identified on a plat. Schiffer agreed the common usage of building envelope typically would be a designated area in which above grade structures must be located on site. Schiffer said the record from 1988 indicates the primary concern of the neighbors was that the new homesites would be allowed to drop over the hillside. Schiffer said the neighbors were justifiably concerned about the slope side houses from the highway. Schiffer said the neighbors got what they wanted, which was a building envelope to prevent any buildings from being built on the slope. The building envelope was moved to the east. Schiffer said the applicants are not proposing any structure outside that envelope but only to locate a swimming pool and on- grade patio. Schiffer said the pool has been moved a little south in the hopes of appeasing the neighbors. Schiffer said a good deal of the south side of the property is being used for the city for Smuggler street. Schiffer told Council there are very few properties in the city that have building envelopes. Schiffer brought up the sound test conducted at the property. Schiffer said the sound test showed one cannot hear anything at ground level. Schiffer said the sound test also showed you can screen noise by structure, landscaping or berming. Mickey Herron, representing the owner of lot 1, told Council the planning office's recommendation is acceptable to the applicant. Herron agreed the definition of building envelope is unclear and when the architect designed the house, he assumed patios could be allowed outside the building envelope. Mayor Bennett opened the public hearing. Alan Schwartz asked if staff's recommendation regarding window wells on lot 1 be included in the building envelope, would permit a hot tub in the window wells. Ms. Johnson said if the hot tub is on the patio, it would be allowed. Ms. Margerum said the owners of the property could technically put a hot tub on any of the decks included in the building envelope. This hot tub would have greater impact on the decks than it would have in the window wells. Schwartz said the existing language in the current agreement was no accident. It was forced by the homeowners themselves. Schwartz told Council the original lot split probably would have been denied had the neighbors not compromised and come to an agreement. The agreement was that all manmade features shall be limited to within the approved building envelope, with the exception of access 10 Regular Meeting Aspen City Council August 26, 1991 driveways. Schwartz said it was not the intention nor wish to preclude landscaping or driveways to either structure. Schwartz said the window wells on lot 1 are harmless; however, the neighbors are not happy about the inclusion of a hot tub. Schwartz requested Council preserve the integrity of the original application and agreement that was formed with the participation of the neighbors. John Foley said he is concerned about the principle; the neighbors thought they had an agreement they could rely on from 3 years ago. Foley said changing the building envelope is a signal to the development community. Betsy Starodoj told Council 3 years ago they invested a lot of time, energy and money to come up with a neighborhood compromise. The neighbors have relied on this and feel it should be respected. The Council does not have to arbitrate this agreement, only enforce it. Ms. Starodoj said she is strenuously opposed to any further violations of this agreement, including a hot tub and a pool. Ms. Starodoj requested Council not allow further development outside that allowed in 1988. Ms. Starodoj said Council should send a message that it does matter when they take actions and make agreements. Bob Camp, Sneaky Lane, reiterated that 3 years ago a neighborhood balance was achieved with an agreement which was well thought out and understood by everyone involved. Camp said the primary concerns were not only building down the hillside but also party areas outside the building envelopes, specifically to the west. Camp said any change to this agreement should also be done by agreement. Camp said in the absence of an agreement, the neighbors may have to accept an increased level of risk related to the departures from the original agreement. Camp said no one can anticipate the impacts from these departures. Camp agreed with the driveway easement and allowing the encroachments that exist on lot 1 with no further enhancements, such as a hot tub. Schiffer pointed out there was no agreement. This compromise was reached at a public hearing with input from the neighbors. Caswall entered into the public hearing: 1) Letter to Council August 14, 1991 from Robert Camp 2) Letter to Council from Tom and Betsy Starodoj 3) Letter dated August 16, 1991, from Myler, Stuller and Schwartz signed by about 12 neighbors 4) Letter dated August 23, 1991, on Garfield and Hecht's stationery signed by Mickey Herron 5) Packet provided by Spencer Schiffer first page the plat of the Tagert lot split 6) Planning Office memorandum Mayor Bennett closed the public hearing. Councilman Peters said a lot of time has been spent on this application. Councilman Peters said Council is looking at this 11 Regular Meeting _______ Aspen City Council August 26, 1991 because the developer of the first lot made a mistake and needs to have this mistake ratified, which has lead to a complete reexamina- tion of the lot split. Councilman Peters said there are reasonable options for the owner of lot 2. This is a vacant piece of land. Councilman Peters pointed out lawyers are hired to read the fine print. Councilman Peters said there seems to be evidence that the building envelope was defined for the purposes of the neighbors in the original lot split. Councilman Peters said he hopes the owners of lot 2 will screen their property even without the swimming pool. Councilman Peters said several years ago there was an opportunity for the neighbors to either support or to object to this lot split . They supported it based on certain conditions arrived at then. Councilman Peters said in the absence of strong evidence to the contrary, he is not willing to overturn the original approvals. Councilwoman Richards said this application has been a waste of time. Some real estate agents did a poor job of representing what conditions were on a lot people were buying. Councilwoman Richards said the only reasons she can see for changing the original agreement would be quiet enjoyment of the property and individual' s private property rights to use their property to its fullest. Councilwoman Richards said, however, she favors the staff's recommendations. Plantings and screenings will probably answer the noise problems. Councilwoman Pendleton said she has a problem believing that no one knew what was going on with these properties. The Sneaky Lane residents have been very vocal in bringing up the conditions to the city, contractors, real estate people. Councilwoman Pendleton said reliance is an important principle. Councilwoman Pendleton said to her a pool is a structure. Councilwoman Pendleton said she cannot allow the owners of lot 2 to build outside the building envelope. Councilman Reno said it is unfortunate the parties to could not come to an agreement. This has taken up a lot of city and Council time. Mayor Bennett said this comes to the conflict between two issues; the ability of citizens to rely on what it's government tells it and the ability of a government to admit it erred, if in fact it did so. Mayor Bennett said he does not feel the government erred in this case. Mayor Bennett said lot 1 is the case of admission of an error. No one anticipated some one would dig window wells 8 feet deep and terrace them. Mayor Bennett said the swimming pool is much closer to the slope than he had visualized and will constitute an invasion of privacy for the neighbors. Mayor Bennett said he agrees with the recommendation of the planning office. Mayor Bennett said he would have no problem with a swimming pool on the south side of the property or at the east of the southwest corner of the present building envelope. 12 Regular Meeting Aspen City Council August 26, 1991 Councilman Peters moved to adopt Ordinance #17, Series of 1991, on second reading; seconded by Councilwoman Richards. Councilman Peters said his intention is to legitimize what is there with no further development. Councilman Peters said to enhance the mistakes would fly in the face of everything else Council is doing. Councilwoman Richards said she would rather see a hot tub in the window well than force it in the decks above ground. Mayor Bennett agreed 8 feet below grade would have less effect on the neighbors. Ms. Johnson read the condition, "No further development, including but not limited to pools, retaining walls, window wells, shall be permitted on the west side of lot 1". Councilman Reno disagreed; this condition was not brought up and Council should not be adding new restrictions on lot 1's envelope. Mayor Bennett said he would prefer not to get involved in telling the applicants what they can and cannot do in the bottom of the window wells. Ms. Johnson suggested in condition #5 "No further development, including but not limited to shall be permitted outside of the building envelope on the west side of lot 1". Ms. Johnson said this would allow anything that is not floor area, because the building is already non-conforming, like a barbeque or hot tub. Ms. Margerum suggested adding "No further development above grade". Councilman Peters withdrew his motion. Mayor Bennett said he would vote to prohibit anything at all that is above the bottom of the existing window wells or nothing shall come within 6 feet of grade. Councilman Peters moved to adopt Ordinance #17, Series of 1991, on second reading inserting language to prohibit any future develop- ment on the west side of lot 1 excluding any development within the window wells 6 feet below lot grade or more; seconded by Mayor Bennett. Roll call vote; Councilmembers Pendleton, yes; Richards, yes; Reno, yes; Peters, yes; Mayor Bennett, yes. Motion carried. Councilman Peters moved to suspend the rules and extend the meeting to 10 p.m.; seconded by Councilwoman Richards. All in favor, motion carried. AUTHORIZATION TO SUBMIT REZONING APPLICATION KRAUT PROPERTY Carr Kunze, housing director, requested authorization to submit on the city's behalf, a rezoning application for the Kraut property to AH, affordable housing. Kunze reminded Council the ultimate development authority has not been determined yet. The proposal is for 22 to 28 units, subject to unit mix, neighborhood concerns, FAR and livability concerns. The housing authority has recommended a mix of income categories with an emphasis on categories 1 and 2. 13 Reaular Meeting Aspen_City Council August 26, 1991 Councilman Reno said he requested this be taken off the agenda as Council had questions about development and finances of develop- ment. Councilman Reno said he would like to see where the money is coming from to develop this project before it goes any further. Councilman Reno said he also wants the city to look at private or non-profit developments. Councilman Reno said he also wants to make sure that the use of the parcel is being maximized. If there are other potential uses, these should be looked at. Councilman Peters said a complete open door policy does not mean the city will get a lot of good applications. Councilman Peters said he would like to go forward with the development. Not knowing where the money is coming from is not an impediment. Councilman Peters said maximizing the property has not been completely addressed in terms of subgrade space. Kunze told Council the housing office has a good model with the rezoning of West Hopkins and a good format. Councilwoman Richards said she favors moving forward with the rezoning application. Mayor Bennett said he favors giving the housing authority the go ahead while Council seeks any private enterprises for this project. Councilwoman Pendleton said she likes this site and its location for building employee housing. Councilman Peters moved to authorize the housing authority to prepare an AH rezoning application for the Kraut property; seconded by Councilwoman Pendleton. Councilwoman Richards said she would like to see notices of the meetings include a special notice to invite private proposals into the development of the property. Councilman Reno said he is only opposed to this as it limits some opportunities. Councilman Peters encouraged the housing authority to take another look at the development plan; the current plan has about 70 percent of the subgrade space not developed. Councilman Peters said he does not feel this is reasonable in the commercial core. All in favor, with the exception of Councilman Reno. Motion carried. PROPOSED FNMA FORECLOSURE PROCEDURES Carr Kunze, housing director, told Council Federal National Mortgage Association provides a secondary market for lenders; it buys mortgages and sells them on the national market to institu- tional and private investors. Kunze said local lenders would be very interested in having access to FNMA-provided financing. This provides a wider variety of mortgages and more competitive interest rates. Kunze said FNMA has a concern that in the event of a foreclosure that they would have an ability to remove a deed 14 Regular Meeting Aspen City Council August 26, 1991 restriction and sell the mortgage on the free market. FNMA will permit a window of opportunity for local community that has provided the deed restricted housing to cure or to sell that property during the period of default or foreclosure proceedings. Kunze told Council the housing authority has evolved a mechanism satisfactory to FNMA to be able to take out those mortgages. This was approved by the county but not by the city. Tom Smith, representing the housing authority, told Council FNMA had expressed concerns to the housing authority that the deed restriction might affect the liquidation value of the property. This made them reluctant to give a secondary market for loans on these properties. The housing authority is also reluctant to agree to the deletion of the deed restrictions because the units may go free market and the efforts to preserve employee housing would be lost. The compromise was that language would be adopted in either deed restrictions or otherwise that FNMA could take the unit free market provided the housing authority had an option to buy the unit in order to preserve it as employee housing. Smith told Council the county approved this language recognizing there are several ways to address the financial implications. One is in the event of default notice comes to the housing authority and an opportunity is immediately available to the housing authority to purchase the unit . Smith said the foreclosure takes about 6 months and there is 30 to 60 days period whether to purchase the unit. The housing authority would have the option but not the obligation to purchase a unit. Smith told Council he does not feel a large reserve is necessary. In the event of default, payments in lieu of foreclosure can be undertaken by the housing authority and the resale process initiated immediately to get the unit sold to an employee. A bridge loan could be obtained for the housing authority to acquire the property. Once the defaulting owner is out of the unit, the property can be leased pending resale. Smith said the financial exposure is limited. Smith said the housing authority felt for the units located in the city, the city should provide the agreement to undertake whatever financial obligations might be necessary. Smith pointed out there has never been a foreclosure on an employee unit. Mary Murphy, housing office, told Council there is $3200 in the mortgage fund account currently. The new deed restrictions on Twin Ridge and Fairway III have the ability to collect a 1 percent fee for that account. Terry Allen, president Midland Park homeowners association; Jean Scraggs, Louise Brainard, Tom Griffiths, Chris Lacy testified to the difficulty of obtaining a loan for affordable housing and the costs of these type of loans. 15 Regular Meeting Aspen City Council Auctust 26, 1991 Councilwoman Richards said she has long range concerns about this and cannot yet support it. Councilwoman Richards said there are measures that can be used to assure the long term inventory of affordable housing units. Councilwoman Richards said there were discussions of creating a distressed mortgage board so people can get help before they get to the foreclosure point. Councilwoman Richards said she feels it is important to build up the reserve fund. Councilwoman Richards said other things discussed were side agreements on all deed restrictions. Councilwoman Richards said FNMA mortgage financing makes it easier to move the units out of affordability. Councilwoman Richards said she feels people who have FNMA available ought to be putting something back into the pool. Councilwoman Richards said she is not sure the method of notifying the city is foolproof. Jean Scraggs told Council when Midland Park was created there was a contingency fund created to be used at the discretion of the housing office. Ms. Scraggs said this money should be available for use by Midland Park. Council- woman Richards said she would like to see this investigated and the monies restored if that is the case. Smith said the distressed mortgage counselling is done and being implemented through deed restrictions on new units. Smith said it is too late to go back and have existing owners contribute to this fund. Smith said the housing office collects 1 percent with new sales of units funded and financed this way. Cash-in-lieu funds could be set aside for this purpose. Councilwoman Pendleton supports this proposal. Councilwoman Pendleton said there has never been a foreclosure and she does not believe there will be a lot of foreclosures. Councilwoman Pendleton said this is something the Council can do for employees. Councilman Reno agreed and said the risk seems minimal. The housing office has told Council there is a need for 600 to 800 units which makes the possibility of a foreclosure seem even less. Councilman Peters said he is the Council's delegate to the housing authority. Councilman Peters suggested he be allowed to confer with the housing authority staff to make sure all options have been covered. Councilman Peters said there is a lack of availability of units . People that are able to close on deed restricted units have more resources and can come up with larger down payment. Council- man Peters said he supports the approach of broadening the availability of housing. Councilman Peters said Council will have to decide how much o the housing money they want set aside for financing and how much for new projects . Councilman Peters said he would like more time to investigate that the notice provisions are adequate and that the city has adequate mechanism to provide a fund for redeeming these units. 16 Regular Meeting Aspen City Council August 26, 1991 Mayor Bennett said he likes this idea and feels it is a clear help to the employees of Aspen. Mayor Bennett said there is a risk, but it is very slight, that these will be foreclosed upon. Mayor Bennett pointed out the housing authority and county have endorsed this. Mayor Bennett agreed he would like the notice provisions beefed up and have other entities notified. Councilwoman Pendleton said she also would like to approve this but Council needs more information. Councilwoman Pendleton said she wants this on the next agenda. Council agreed to get more information at discuss this September 9, 1991. Councilman Peters moved to suspend the rules and meet for 30 more minutes; seconded by Councilwoman Richards. All in favor, with the exception of Councilwoman Pendleton. Motion carried. ACRA AUDIT Carol O'Dowd, city manager, requested Council outline some expectations so she can draft an audit, if they wish one done. Councilwoman Pendleton said Council was going to discuss how much money Council's contribution was to an organization before Council requires an audit. Councilwoman Richards said she wants this thought of as a review rather than an audit. The financial component is just a small part of understanding what Council is funding by funding a visitor's center. Councilwoman Richards said this contribution has not been looked at carefully, for Council to see what they are getting for their money. Councilwoman Richards said some issues are, is the staff level at the visitors center enough to satisfy the guests, is ACRA giving the guests the experience the city would wish by having a visitor's center, does this need more funding to fulfill Council's goals, are the levels of administrative overhead assigned to the program acceptable. Councilwoman Richards said the city may be violating the code by not putting this out to bid. This is not a contribution to a non- profit but is a contract for services to provide specific services for the city. Councilwoman Richards said the city may have isolated itself from the guests. Councilman Peters moved to approve an expenditure up to $1500 by the finance department and city manager's office for an audit of ACRA the scope of which shall be described by the Council by f finance and city manager and may include an analysis of co-mingling of funds and the proper allocation of overhead, and consistency with the proposed budget last year; seconded by Councilwoman Richards. Mayor Bennett said maybe the Council ought to do the same thing for RFTA and the housing authority. Mayor Bennett said he would like to see where all the city's money is being spent. Councilman Reno asked where this stops. Councilman Reno pointed out the city 17 Regular Meeting Aspen City Council August 26, 1991 contracts with the Reno said he has a city is getting fo money the city want department for services. Councilman experience with the value of what the oney. Councilman Reno asked how much nd on audits for contributions. Councilman Peters moved to call the question; seconded by Council- woman Richards. All in favor, with the exception of Councilmembers Pendleton and Reno. Motion carried. ORDINANCE #35, SERIES OF 1991 - Field Greenline Vested Rights Councilman Peters moved to read Ordinance #35, Series of 1991; seconded by Councilman Reno. All in favor, motion carried. ORDINANCE #35 (Series of 1991) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, VESTING THE DEVELOPMENT RIGHTS FOR THE FIELD 8040 GREENLINE APPROVAL AT 716 S. GALENA (LOT 14, BLOCK 2, ANTHONY SUBDIVISION) was read by the city clerk Councilman Peters mo first reading; secon Councilmembers Reno, yes; Mayor Bennett, adopt Ordinance #35, Series of 1991, on Councilwoman Pendleton. Roll call vote; Peters, yes; Pendleton, yes; Richards, Motion carried. ASPEN INSTITUTE BUILDING PERMIT REVIEW Mayor Bennett said he and Carol O'Dowd, city manager, met with representatives of the Ski Company, who is working for the Institute. Mayor Bennett said if the city were to consider this request, it would have to be acknowledged by all parties that all risk, financial and time spent, was theirs. If the Institute puts up a building permit fee, this is completely at risk. They would get no refund. There will be no reliance whatsoever if the city grants them the ability to go forward on a fast track. Carol O'Dowd, city manager, agreed this in inherent in the understanding. Council requested this be spelled out in the agreement. Councilwoman Richards asked if this project will require new tap fees and new water system. Jed Caswall, city attorney, said this is all existing water features. Councilwoman Richards asked if this project will move forward before the water conservation ordinance is in place. Ms. O'Dowd said by the time this applicant comes in for any permit, the water conservation ordinance will be adopted. There are already a lot of conservation measures being used. Councilman Peters said he will support this as long as the burden is placed on the Institute. Councilman Peters said they building lot of r this m s to spe ved to ded by yes; yes. 18 Reaular MeetncL_ Aspen City Council August 26, 1991 also have the ultimate responsibility for consistency between the final development approvals and the plans that are submitted. Councilman Peters moved to direct Carol O'Dowd, city manager, to draft a letter to the Aspen Institute telling them what the conditions are they have to comply with and that all risk is theirs; seconded by Councilwoman Pendleton. All in favor, motion carried. ORDINANCE #32, SERIES OF 1991 - In-line Skates John Goodwin, police chief, told Council the purpose of this ordinance is to cover in-line skates and roller skates in the mall and on the sidewalks in the core area. Councilman Peters moved to read Ordinance #32, Series of 1991; seconded by Councilman Reno. All in favor, with the exception of Councilwoman Richards. Motion carried. ORDINANCE #32 (Series of 1991) AN ORDINANCE AMENDING SECTION 13-38 OF CHAPTER 13 OF THE MUNICIPAL CODE OF THE CITY OF ASPEN, COLORADO, TO PROHIBIT THE USE OF ROLLER BLADES, ROLLER SKATES, AND OTHER SIMILAR DEVICES ON THE SIDEWALKS AND MALLS IN THE C-1 AND CC ZONING DISTRICT OF THE CITY OF ASPEN was read by the city clerk Goodwin told Council staff would like to modify the ordinance in order to enforce roller blades and roller skating in the mall and on sidewalks. Goodwin said there is also question about bicycles on sidewalks; there is conflict between the Municipal Code and the Model Traffic Code. Goodwin suggested incorporating any changes from the bicycle ordinance into this ordinance. Dan Levinson asked if people can roller blade in the streets. Goodwin answered roller blading is not allowed downtown. The Model Traffic Code states one cannot skate, ski on the streets. Goodwin said the police department unbanned roller blading in the outlying areas. Councilwoman Richards said she does not support bicycles on sidewalks or in the mall. That should be separated from this ordinance. Councilwoman Richards asked where people can enjoy themselves roller blading in town. Councilwoman Richards said this ordinance will be telling kids they are not allowed to go downtown . Councilwoman Richards said there seem to be exemptions for guests and cutting out kids from being able to enjoy the town. Goodwin said there are safety issues and quality of life issues. Council- members Reno and Richards will meet with Goodwin before second reading. 19 - Regular Meeting Aspen City Council Auaust 26, 1991 Councilman Peters moved to adopt Ordinance #32, Series of 1991, on first reading; seconded by Councilman Reno. Council directed the second reading be September 23. Roll call vote; Councilmembers Richards, no; Pendleton, yes; Peters, yes; Reno, yes; Mayor Bennett, yes. Motion carried. APPROVAL OF CONTRACT FOR ROARING FORK RIVER TRAILS CONSTRUCTION Jed Caswall, city attorney, told Council the parks department had let bids to do work on bridges on the Roaring Fork trail. Caswall said the contracts are ready for execution but there are not easements in place to do the work. Caswall recommended Council approve the contracts and authorize the Mayor to execute these upon the city receiving final easements or agreements for access to the property. Caswall said the major problem is with the Aspen Sanitation District. There have been problems on where the trail is to go across their property and the conditions under which they will allow the city to do that. Rebecca Baker, parks department, showed Council where the trails will go, from Jenny Adair park east to past the Herron park bridge. Councilman Peters moved to approve the contracts and to authorize the Mayor to sign both but only upon approval and signature on the easements and license agreements; seconded by Councilman Reno. All in favor, motion carried. RE UEST TO WAIVE MORATORIUM WATER MAIN LINE EXTENSIONS- RUBEY LOT 6 AND LITTLE CLOUD SUBDIVISION Larry Ballenger, water department, reminded Council in March 1991 they imposed a moratorium on any extension of a water line on the city's water distribution system until staff presented a water conservation policy and it was enacted. Ballenger told Council there are 2 applications for main line extensions; Rubey lot 6 and Little Cloud. Ballenger said he questions whether Rubey lot 6 will be a main line extension or not. There is already a 12 inch line serving the property and the applicants are taking stub outs on each side of the line. Council authorized the Little Cloud subdivision construction several years ago. Ballenger recommended Council waive the moratorium restrictions on these two. Ballenger pointed out Council has brought to Council a water conservation program. Councilman Peters said the moratorium has been useful to have for Council to examine issues like what happens when the county approves a subdivision on the edge of the city and how much more can the water system tolerate. Councilman Peters agreed the Rubey lot 6 is not really an extension. Councilman Peters suggested waiving these two but that the moratorium stay in effect. Jed Caswall, city attorney, requested Council allow the water department director be able to use his professional judgement 20 Regular Meeting Aspen City Council August 26, 1991 whether a proposed connection is a service line or a main line and that his determination be final. Councilman Peters moved to exempt the two projects from the water extension moratorium and that Council allow the water department to make administrative determinations on what is and what is not a main line extension; seconded by Councilman Reno. All in favor, motion carried. Councilwoman Pendleton moved to adjourn at 10:45 p.m.; seconded by Councilman Peters. All in favor, motion carried. ~ ,. i ,, Kathryn Koch, City Clerk 21