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HomeMy WebLinkAboutminutes.council.19981026Aspen City Council Regular Meeting October 26, 1998 Mayor Bennett called the meeting to order at 5:05 p.m. with Councilmembers Richards, Markalunas and Vickery present. PROCLAMATION - Aspen Junior Hockey Mayor and Council proclaimed October 30 to November 8 as Aspen Junior Hockey Days and commended Aspen’s junior hockey players for their team spirit and enthusiasm on the ice. CITIZEN PARTICIPATION 1. Dale Potvin requested the city’s permission to pave the alley in Block 43, between Bleeker and Hallam and Second and Third. Potvin said all the homeowners agree to this request and they will pay the cost to pave the alley to the city’s standards. Amy Margerum, city manager, said the city has allowed alleys to be paved as long as the entire block agrees. Council denied paving of an alley in the west end last year because one neighbor protested. The denial was based on the issue of character. Potvin said this entire block is developed with the exception of one vacant lot on the corner. Potvin said they will make sure they sleeve the alley for the appropriate utilities. Potvin said during the mud season, unpaved alleys created a lot of dirt. Potvin said they do want to keep the rural character and will make the pavement as narrow as possible. The real reason for this request is cleanliness. Potvin said the residents are willing to maintain the alley; they have agreed to share the costs. Councilwoman Richards said she would like a report back from staff on any drainage issues caused by paving and reconfirmation with the homeowners that they are all in agreement. Mayor Bennett said he has no problem with this request especially since the homeowners will pave it and maintain it. Mayor Bennett said he would defer to staff on how wide the alley should be. Council agreed the alley could be paved as long as the staff report is positive and all homeowners agree. 2. Phoebe Ryerson urged people to vote in favor of the train proposal. The train used to come right into Aspen and it didn’t bother people. Young families who have moved down valley would be able to use the train to commute. COUNCILMEMBER COMMENTS 1 Aspen City Council Regular Meeting October 26, 1998 1. Councilman Markalunas urged everyone to exercise their Constitutional duty and vote November 3. 2. Mayor Bennett pointed out this is not the last chance for people to vote on the rail issue. There will be at least two more votes required before anything gets built. 3. Amy Margerum, city manager requested Council remove both items dealing with the Snyder affordable housing project from the agenda. Councilman Vickery moved to remove Resolution #78, 1998, Architect Contract Snyder Project and Snyder Affordable Housing Project Construction Subsidy; seconded by Councilwoman Richards. All in favor, motion carried. 4. Amy Margerum, city manager, asked that Council add to the consent calendar a request for funds $1500 to go toward moving and preserving the Paepcke garden house. This request come from Aspen Valley Land Trust and the condition is that this be used for restoration of the building. Mayor Bennett said he would like the money returned if it is not used for restoration. Councilwoman Richards moved to approve an expenditure of $1500 from Council contingency to Aspen Valley Land Trust for the restoration of the Paepcke Garden House; seconded by Councilman Vickery. All in favor, motion carried. CONSENT CALENDAR Councilwoman Richards moved to read Ordinance #43, Series of 1998; seconded by Councilman Markalunas. All in favor, motion carried. ORDINANCE #43 (Series of 1998) AN ORDINANCE OF THE ASPEN CITY COUNCIL GRANTING APPROVAL FOR LANDMARK DESIGNATION AT 735 WEST BLEEKER STREET, LOTS A AND B, BLOCK 18, CITY OF ASPEN was read by the city clerk Councilwoman Richards moved to adopt the consent calendar as amended; seconded by Councilman Markalunas. The consent calendar is: 2 Aspen City Council Regular Meeting October 26, 1998 · Ordinance #43, 1998 - 735 W. Bleeker Historic Designation · Resolution #77, 1998 - Lease Bass Park · December Council Meetings · Minutes - October 13, 1998 · Request for Funds - Aspen Valley Land Trust $1500 to move Paepcke Garden House from Council Contingency Roll call vote; Councilmembers Vickery, yes; Markalunas, yes; Richards, yes; Mayor Bennett, yes. Motion carried. ORDINANCE #39, SERIES OF 1998 - Tipple Lodge Subdivision Amendments Mitch Haas, community development department, showed a site map locating the Tipple Lodge. Haas said there are no review standards for this request. In 1979, the Tipple Lodge requested condominium approval; this was the first building to request condominiumization. At that time, the city Code required payment of an affordable housing fee and minimum lease restrictions. These and many other relevant sections of the code have been changed since then. The conditions of approval state that 10 of the 12 units in the building must be retained as lodge units for short term rental, that they be set aside with a central reservation agency, that these units not have kitchens without going through the growth management system, that these units have local management. Haas told Council the request is to move all these restrictions. Haas said if the restrictions on rental and central reservations were removed, these units would be the same as other lodge units in the area. Haas reminded Council the definition of lodge has been changed to allow for short and long term use of lodge units. Mayor Bennett noted other lodges have to stay a lodge; this would make these units not available as lodge units. Haas said this lodge is located in the LTR zone, it is not zoned LP. The LTR zone district has a restriction that if any units add kitchens, the units have to comply with the multi-family density requirements and also have to get growth management allotments or exemptions. Haas pointed out there are 12 bedrooms in this structure. The LTR requires 1,000 lot area per bedroom or 12,000 square feet for this building. The existing lot is less than 12,000 square feet which makes this non-conforming for density. 3 Aspen City Council Regular Meeting October 26, 1998 Gary Wright, representing the applicant, told Council the units have been managed by a local agency; however, with the occupancy rates and the cost to have someone manage it, it is not economically feasible. Wright told Council there is no plan to change these from lodge rooms but to make them owner/managed and owner/operated. Haas pointed out the condominiuimization regulations have changed to eliminate items like minimum lease. Wright said the goal is to be able to continue to operate this as a lodge. The conditions appropriate in 1979 are no longer relevant. Mayor Bennett opened the public hearing. Councilwoman Richards said the restrictions seem to be in place to make sure these units stay lodge rooms. Approval of eliminating these conditions could set a precedent for other lodge properties. Haas said lodges located in the LP zone can be rented short or long term. Mayor Bennett said this is a change in use issue, does the city want to preserve a lodge use in this location. Councilwoman Richards said she would like to know what the owners have in mind; is this a first step toward demolition and rebuilding. Wright asked if the concern is that these be used for short term lodge and they could be owner-rented. Council agreed these could be owned-rented. Wright said today’s guests require amenities that were not required by guests 20 years ago. Wright said his clients would like to continue to have viable, small lodge rooms. Haas said if all restrictions on this property were removed, the units could be rented out long term. The applicants would not be able to add kitchens without a variance or exception. They would have to go through growth management for a change in use for any residence that would be created. These are not dwelling units because they do not have kitchens. Wright said one of the limiting factors is economics; who is going to rent a 240 square foot room. The highest and best use is probably 2 to 4 week rentals. People wanting longer rentals would want a kitchen. Wright said his intention is that the condition to be available for short term rental at market rates registered with a central reservations entity removed so that the owners can do it themselves. Wright said he also would like the owners to be able to do the management of the units themselves. Wright said the conditions that no kitchens be installed in any of the units is still appropriate. Haas said this condition is also covered in the code. 4 Aspen City Council Regular Meeting October 26, 1998 Wright said he feels it is appropriate to let the market determine the rental of these units. Mayor Bennett said these units are in an incredible location. Mayor Bennett said he would like to see the restrictions remain in place so that these units remain in the rental pool. This is the area designated for tourist rentals. Mayor Bennett said as long as these units remain tourist rentals, he does not care whether it is one day or 4 weeks. Mayor Bennett said he does not care by whom it is managed. Mayor Bennett said this is located in the heart of the lodge district. Councilwoman Richards said she would like to table this to see if the applicant and city can agree on a compromise allowing the owners to manage the units, that the 10 lodge units be made available short term at market rates and define “short term”, which staff indicates is anything less than 6 months. Councilwoman Richards the existing condition to add kitchen would have to go through GMQS. Councilwoman Richards said she could agreed that kitchenettes be allowed if the units are retained in the short term rental market. Councilwoman Richards asked staff to determine the precedent this would set if all the conditions were eliminated. Council agreed that condition (a), short term should be defined and central reservation deleted; condition (c) would allow owner management of the units. Councilwoman Richards moved to continue Ordinance #39, Series of 1998, to November 9; seconded by Councilman Markalunas. All in favor, motion carried. ORDINANCE #41 - Water Rate for New Billing Areas 5A and 5 Phil Overeynder, water department director, told Council this area includes the hospital, school, Meadowood, Moore, Hines and Highlands Water and Sanitation district and the employee housing at Castle Ridge, Twin ridge, Water Place Housing, and Highlands Villas. Overeynder reminded Council in 1996 he noted the inequities in the city water rate structure with this area. The Hines and Moore projects signed water agreements that will reflect these new rates. If the Highlands Water and Sanitation district is dissolved, the voters need to know what the rates will be. Overeynder said there will be an increase; the last increase in this area was in 1985. Overeynder said there will be a rate rebate over a 5 year period to customers in the Highlands Water and Sanitation District because there has been 17 years of service 5 Aspen City Council Regular Meeting October 26, 1998 without a rate increase. The 60 percent increase is in line with the cpi increase over the last 17 years. The customers will benefit from better fire protection. Overeynder told Council the city rate structure is set up so the city recovers 60 percent of the capital charges through the tap fees and 40 percent through demand charges. Overeynder said the tap fees may need to be adjust; however, staff will not know the exact numbers until all the improvements have been installed. Overeynder explained that city water rates are structured on where the areas are located, whether the area is gravity fed, and how many customers are served. Councilwoman Richards asked if staff was able to find out if the rebate will be taxable or not. Cindy Covell, city’s water counsel, said utility rebates are generally not taxable; however, no one can answer definitively whether this rebate will be taxed by the IRS or not. Mayor Bennett opened the public hearing. There were no comments. Mayor Bennett closed the public hearing. Councilwoman Richards moved to adopt Ordinance #41, Series of 1998, on second reading; seconded by Councilman Markalunas. Roll call vote; Councilmembers Markalunas, yes; Vickery, yes; Richards, yes; Mayor Bennett, yes. Motion carried. ORDINANCE #42, SERIES OF 1998 - Continuation of Water Service to Highlands Water and Sanitation District Cindy Covell, city’s water counsel, presented an updated agreement for continuation of water service if the residents are to vote for dissolution of their district in the November 3 election. There is a list of easements and rights-of-way, some will be vacated and there are new easements. Mayor Bennett opened the public hearing. There were no comments. Mayor Bennett closed the public hearing. Councilman Markalunas asked about the pump house facility. Joe Edwards, representing the District, told Council in the early 90’s the district tried to give their pump facility away. The EPA kept raising the standards for treatment so that the old plant was not longer acceptable except for scrap. They vacated the easement and gave it back to the property owners, 6 Aspen City Council Regular Meeting October 26, 1998 Councilman Markalunas moved to adopt Ordinance #42, Series of 1998, on second reading; seconded by Councilwoman Richards. Roll call vote; Councilmembers Markalunas, yes; Richards, yes; Vickery, yes; Mayor Bennett, yes. ORDINANCE #44, SERIES OF 1998 - Code Amendment HPC Review Process Councilman Markalunas moved to read Ordinance #44, Series of 1998; seconded by Councilman Vickery. All in favor, motion carried. ORDINANCE #44 (Series of 1998) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING AN APPLICATION TO AMEND CHAPTER 26 OF THE MUNICIPAL CODE, LAND USE REGULATIONS, SECTION 26.20.030, POWERS AND DUTIES OF THE HISTORIC PRESERVATION COMMISSION, SECTION 26.52 COMMON DEVELOPMENT REVIEW PROCEDURES, AND SECTION 26.72 DEVELOPMENT IN AN “H” HISTORIC OVERLAY DISTRICT, OR INVOLVING THE INVENTORY OF HISTORIC SITES AND STRUCTURES was read by the city clerk Amy Guthrie, community development department, reminded Council this Code amendment was discussed at the symposium with HPC. Ms. Guthrie said this code amendment will eliminate the distinction between HPC’s review over landmark and non-landmarked properties. The “Inventory of Historic Sites and Structures” has 260 property and 102 of these properties are reviewed only for demolition or relocation. Ms. Guthrie said the HPC feels this has reached a critical situation. There have been numerous projects that the HPC does not have review over that are just as important as a landmarked site. Ms. Guthrie said the standards have not been changed. The inventoried structures will not have a conceptual and final review with a public hearing. Councilman Markalunas asked about extending the time for appeal process of and HPC approval. Ms. Guthrie said this code amendment specifically addresses the review process; the extension of time is not in this amendment. Mayor Bennett asked staff to investigate adding that provision before second reading. Councilman Markalunas asked what constitutes a portion of a structure, for demolition or retention purposes. Ms. Guthrie said partial demolition is defined as demolishing 7 Aspen City Council Regular Meeting October 26, 1998 any part of a building but not 100 percent. Council asked the city attorney to look at this definition with a recommendation for second reading. Mayor Bennett said at the HPC symposium, Council talked about policy changes and that any additions to historic structures were to be “sympathetic, subservient and compatible”. Mayor Bennett said he would like to see a written policy. Ms. Guthrie said this type of policy may be more appropriate in the design guidelines or in the AACP. Councilman Vickery asked about properties adjacent to a landmarked property. Ms. Guthrie said this notion is on the AACP list, to create a “mini-historic district”. Councilwoman Richards said a problem with having these type of policies in the AACP is that it takes years to adopt the AACP. Councilman Vickery moved to adopt Ordinance #44, Series of 1998, on first reading; seconded by Councilman Markalunas. Roll call vote; Councilmembers Richards, yes; Markalunas, yes; Vickery, yes; Mayor Bennett, yes. Motion carried. ASPEN COUNTRY INN CONSTRUCTION LOAN AND SUBSIDY COMMITMENT Dave Tolen, housing director, requested a construction loan from the housing fund for this project. This was done for the Benedict Commons project. There are two advantages; the interest rate for the borrower is lower and will save the project money, and the housing fund will be paid back with interest. The loan will be $3.4 million dollars and loan documents are being prepared. Tolen said the second request is a commitment for gap financing of $575,000. This is a result of construction cost increases. Tolen told Council the housing office got 3 estimates on this project and did value engineering on these estimates. The costs have increased significantly due to the excess construction projects in the area and the lack of construction workers. Tolen told Council they have applied to the state for a $400,000 grant, which will be reviewed in December. The other $175,000 is contingency and any amount left at the end of the project will be repaid toward this commitment. Tolen told Council the sale of federal tax credit is projected to bring in $2.5 million. The price of these tax credits has fluctuated and there is a possibility they will go up again. Councilwoman Richards said she feels it is a good policy to fund projects like this internally; however, this is a larger chunk of money from the housing/day care fund 8 Aspen City Council Regular Meeting October 26, 1998 and maybe some of the money could come from other funds. Steve Barwick, assistant city manager, said this could be funded from an area other than the day care/housing fund or moneys can be moved into that fund if it is needed for acquisition or another project. The city attorney will review the loan documents. Councilman Markalunas moved to approve the use of $3.4 million from the housing day care fund as a construction loan to the Aspen Country Inn; seconded by Councilman Vickery. All in favor with the exception of Councilwoman Richards, motion carried. Councilman Markalunas moved to approve a funding commitment of $575,000 to the Aspen Country Inn at 6 percent interest; seconded by Councilwoman Richards. All in favor, motion carried. Councilman Markalunas moved to adjourn at 7:40 p.m.; seconded by Councilman Vickery. All in favor, motion carried. PROCLAMATION - Aspen Junior Hockey ................................ ............................. 1 CITIZEN PARTICIPATION ................................ ................................ ................... 1 COUNCILMEMBER COMMENTS ................................ ................................ ....... 1 CONSENT CALENDAR ................................ ................................ ........................ 2 Ordinance #43, 1998 - 735 W. Bleeker Historic Designation ............................... 3 Resolution #77, 1998 - Lease Bass Park ................................ .............................. 3 December Council Meetings ................................ ................................ ................ 3 Minutes - October 13, 1998 ................................ ................................ ................. 3 Request for Funds - Aspen Valley Land Trust $1500 to move Paepcke Garden House from Council Contingency ................................ ................................ ........ 3 ORDINANCE #39, SERIES OF 1998 - Tipple Lodge Subdivision Amendments .... 3 ORDINANCE #41 - Water Rate for New Billing Areas 5A and 5 ........................... 5 ORDINANCE #42, SERIES OF 1998 - Continuation of Water Service to Highlands Water and Sanitation District ................................ ................................ ................... 6 ORDINANCE #44, SERIES OF 1998 - Code Amendment HPC Review Process ... 7 ASPEN COUNTRY INN CONSTRUCTION LOAN AND SUBSIDY COMMITMENT ................................ ................................ ................................ ..... 8 9 Aspen City Council Regular Meeting October 26, 1998 10