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HomeMy WebLinkAboutminutes.council.19780731Special Meeting Aspen City Council July 31, 1978 Mayor Standley called the meeting to order at 5:25 PM with Councilmembers Behrendt, Isaac, Van Ness, Johnston and Wishart present. Also present were Transportation Director Harold Stalf and City Manager Mick Mahoney. ORDINANCE #9, SERIES OF .1978 , Refinancing'Bond Issues Mayor Standley opened the public hearing on Ordinance #9. He noted that Diones under- iiOrd. 9, 1978 lined the changes from the first reading. Diones noted a change in method for the il Refinancing County sales tax pledge. They hope to get an A rating as opposed to a BAA-1. Council- i Bonds woman Johnston asked the cost of this. Diones stated that the payments will end in 1992 and the total savings will be around $50,000. He noted that they will change the errors in the action for final approval as prepared by the bond attorneys. Mayor Standley closed the public hearing. Councilwoman Johnston moved to read Ordinance 99, Series of 1978; seconded by Councilman Behrendt. All in favor, motion carried. ORDINANCE #9 (Series of 1978) AN ORDINANCE AUTHORIZING THE ISSUANCE OF SALES TAX REFUNDING REVENUE BONDS OF THE CITY FOR THE PURPOSE OF REFUNDING ALL PRESENTLY OUTSTANDING SALES TAX REVENUE BONDS, IN ORDER TO MODIFY AND ELIMINATE CERTAIN RE- STRICTIVE CONTRACTUAL LIMITATIONS APPERTAINING TO THE CITY'S SALES TAX REVENUES AND TO SAID OUTSTANDING BONDS; PROVIDING THE FORM AND TERMS OF SUCH REFUNDING BONDS; PROVIDING FOR THE DISPOSITION OF THE INCOME AND REVENUE DERIVED FROM THE SALES TAXES OF THE CITY AND THE CITY'S SHARE OF PITKIN COUNTY SALES TAXES; PRESCRIBING OTHER DETAILS CONCERNING SUCH BONDS, SALES TAXES AND FUNDS PERTAINING THERETO; REPEALING ALL Housing Mayor Standley opened the meeting. He noted that Edgar Stern of the MAA, Mark Danielsen Situation Housing Director, Gail Mahoney of Sno Engineering, Karen Smith, Donald Ensign and Alan Shla£fer~ were present to offer their information on the housing situation. i Edgar Stern felt that the faculty housing problem was becoming more serious, not in avail- ability but in cost. The average rental coSt for a musician's family in 1978 was $1900 for 9 weeks. This represents about 40-50% of their total compensation for the summer. He ' noted that some of them are keeping payments up on their homes. Some are paying up to 87% of their compensation for rent. He does not want to increase the expense for the festival by increasing their compensation since most is paid by contribution. They are collecting information and doing surveys of the faculty members for answers. Councilwoman Johnston asked if they had considered giving season tickets in lieu of rent. Stern had not. He noted that they usually like private homes so they can practice without disturbing others~ and two gr~nd pianos will not fit into a small condo. Isaac asked if they were considering building or buying the units. Stern said those may be their only alternatives. Danielsen felt they must first determine if there is a housing shortage. He felt there are many indications that there is a shortage. He felt Sno Engineering's study had helped but suggested a comprehensive study with the County and Snowmass for a total number of housing supply and information. Behrendt noted that someone in the Planning Office had told them of a proposed complex with 5,000 units between Basalt and Carbondale. Danielsen felt they must keep on top of development between Aspen and Carbondale for relevant information on the housing supply.. He felt they must do a door to door interview of employers and employees. He felt the cost should be spread out to all involved. He gave examples of the questions that would be asked. Behrendt felt the recent census would cover these questions. Danielsen felt that the recent census and surveys would help but they still need this study. He felt they should tie this in with tourist growth. Johnston asked the occupancy of Sil- verking presently, Danietsen said there are presently 75 of the 304 units vacant. He noted that they must consider the impact of the possible displacement of these tenants. Mayor Standley asked Smith to review the impact of growth management on the housing inventory. Smith said they have 137 units recently approved in the Aspen Metro area, including Midland Park and Lone Pine. She noted that this is an annual figure and that the bonus from the GMP is subtracted from future years. Standley asked if she saw a need for an adjustment in the GMP as it relates to housing. Smith noted that the GMP gives the Council the authority to approve bonified housing projects in addition to the GMP allotment. She felt they should consider that option for next year. Bill Dunaway noted that they must consider control over the future of the units. Smith said they anticipate asking the approved residential appli- cants to commit to certain rental ranges with annual inflations for five years. Danielsen noted that this will be checked annually. Behrendt felt that five years is too short to control housing. He suggested a review every five years. Danielsen felt one of the main problems is the lack of ordinances and laws promoting employee housing. He felt the devel- l/ opers need to know more of What's expected before they apply. He supported this type of : study session with the Council. He suggested rental restrictions city-wide although he is against them. Gail Mahoney noted three recent surveys on employee housing; 133 units at Silverking, 870 mailouts to local employers, and 1,000 rental units from Aspen to Basalt. They estimate an annual occupancy of 77% at Silverking. Some buildings have higher occupancy rates than others. They estimate over 1500 rental units in the Aspen area. She noted that the numbe~ of seasonal employees is decreasing year by year. She stated that the unemployment rate of Silverking is 14% compared to Aspen's 6%. Silverking offers one year leases in the fall and seasonal employees must forfeit their last month's rent and deposit. Rent in Aspen ranges ifrom .30-.81/sqft. with Silverking at .55/sqft. Behrendt asked why the 100 or so vacant units at Silverking couldn't be rented to the short term music students. Mahoney said that Silverking at present is a very undesirable place to live. Recently, angry tenants have kicked in and mutilated many doors, windows, etc. She noted that there are music students renting there now. The first survey determined that the majority of Silverking tenants are single(77%), annual income averages $11,000, 33% have been here less than one year in 1978, compared to 61% in 1975. The second survey mailed to local employers asked questi6ns like where do the employees live, do they rent, would they be interested in buying units to rent to their employees, etc. This will show the size and location of the Aspen work force She noted that the 25% that responded to the survey requested 118 units total for their em- ployees with only 87 available. She noted that the questions on the third survey were simi. tar or identical to the Aspen Employee Survey thus updating it and using it for comparison. She noted that ownership engenders permanence and many people are seeking ownership. 25% of the people downvalley lived in Aspen at one time. She noted that people that own trailez but rent the land underneath are figured into the rental figures, In the Silverking survey, most tenants indicated that they would like to find housing elsewhere. She felt the thresh- hold for being able to enter into a buying situation started at $10-12,000/yr. She noted that the average rent per unit is ~99.53 in Aspen. Isaac felt the survey was trailer ori- ented, especially downvalley. Mahoney noted that the majority of downvalley rentals is in trailers. Bill Dunaway asked what percentage were trailers. Mahoney stated that they in- terviewed 104 mobile homes and 108 apartments and condominiums downvalley. She noted a 13% unemployment rate downvalley with 81% living downvalley working in the Aspen/Snowmass area. She stated that 14% were dependent on public transit. ~lan Shaffer stated that they can create housing for any segment of the population if they ~re willing to give something up. He emphasized the need to accomodate the employee. He ~elt they can create low cost rental housing using one of the following means: tax exemptio~ .and dedication, discount utilities, subsidize with tax payers dollars. The gap between the ~ost and the money available must be made up by the government or the taxpayer. He felt the ;o~ernment would own the units and it would be managed by others. Johnston wanted the gover~ lent to stay out of housing but felt they could help enable this type of needed housing. ~ehrendt asked how they would select the area of employees most in need of housing. Shaffer i ~aid they must determine through their surveys, etc., who needs what and gear it towards the ~esults. They must balance the shortage. )onald Ensign was present to offer information on the water plant housing. He noted that ~hey can put up to 250 units in comfortably. There are the necessary services available [water, sewer, transportation, etc.). He felt that Mark Danielsen was being inundated with ~nits under his authority. He felt Danielsen needs a staff because of the work load in that ires. Standley outlined the points that he derived from this discussion. He felt they must discuss the control of housing under the GMP. Johnston felt they should instruct the City Attorney to draw up amendments to ordinanCe 53, 1977, to allow for covenants to this effect. She also identified a problem with people ousting the tenants before their re- view so there is no tenant displacement. Standley felt they should ini~tiate staff pro- jects for the needed information in areas such as programs for deVelopers, MAA and water plant housing, a market study of "who needs what" for housing, etc. Johnston felt that asking employees where they would like to live and whether they would rather rent or own is unrealistic since everyone dreams for impossible goals. Isaac felt they could use the survey from Sno and fill any gaps therein instead of initiating a new survey. Standley felt the census would assist. Isaac felt all the needed information was there, they needed the staff to compile it all. Standley felt the staff should compile the total num- ber of proposed units to determine the supply and demand. Isaac wanted to know the num- ber of condominiumizations in the last five years. Smith felt this was a very valid poin~ to look at. Johnston sensed that the rentals and condominiums were changing from long term to short term since there is no enforcement for the six month minimum lease restric- tion. Danielsen noted that he will bring the guidelines for PMH in terms of price struc- ture for~rentals and saleS to the next Council meeting, This may begin to determine the guidelines for the developers to follow to know what's expected of them. Johnston en- couraged this type of session and suggested that they meet more often to discuss housing. Shaffer did not like the government getting involved in regulating housing. He felt they would be getting in over their necks. Standtey did not think weekly meeting would help. Behrendt felt they must first identify the problems and the people in need. He felt they must instruct the staff of what they need and send them out to collect the information. Isaac suggested study sessions with progress reports. Johnston suggested status reports at the regular meetings. Behrendt felt they must finalize their position on bandit units. Mahoney noted that when he hears of a potential bandit unit, he starts a file and gets the Building Inspector and the City Attorney on it. Standley felt they should recognize those units that have had existing bandit units for a certain number of years, set it up under PMH housing and allow them to exist. Johnston felt they should determine the legal units and keep the density down by not allowing the bandits. An attorney in the audience noted that the people of the West End Improvement District were upset with the way the Council recognised the Simpson bandit unit. He felt they should set up a policy in the Standley agreed with this way these units should be recognised to allow for objections. Charles Paterson noted his concern with the lack of control on the units they approve. Standley agreed with this. Paterson, a member of the Board of Adjustment, noted that the Simpson case became before the Board one year ago and they denied the variance. He felt this is the proper channel to use. Standley noted that that case was a policy decision and those cases rest with the Council. Behrendt asked that they have a study session to decide on their policy with such cases. Paterson noted that the Board of Adjustment is the last appeal. He felt that this would make this Board useless. Behrendt suggested that the Council come up with guidelines and policies and turn it back to the Board of Adjustment. Isaac moved to adjourn the meeting, Johnston seconded. All in favor, motion approved. Meeting adjourned at 8:00 PM. Shery~Si , p y City Clerk 2447 Special Meeting Aspen City Council July 31, 1978 ORDINANCES IN CONFLICT HEREWITH; AND DECLARING AN EMERGENCY, was read by the mayor. Councilwoman Johnston moved to adopt Ordinance #9, Series of 1978, on second reading; seconded by Councilman Wishart. Councilwoman Johnston asked for Butterbaugh's & Mahoney's notes. Butterbaugh said she was very pleased with the refunding. She had a concern with with the restriction on the deposit for the county but felt it was a fair tradeoff. Mahoney felt this is a very positive thing for the City. Not only does it give present value of $55 but it also levels out the debt fee. Roll call vote: Counailmembers Van Ness, aye; Wishart, aye; Johnston, aye; Isaac, aye; Behrendt, aye; Mayor Standley, aye. Motion carried. ORDINANCE ~27, SERIES OF 1978 Golf Course Bonds Ord. 27, 1978 Mayor Standley opened the public hearing. Diones noted the changes in the pledging for Golf Course the City and County sales tax. He noted the pages that these changes fall on. Originally, Bonds the County sales tax was not referenced in the ordinance, it read "sales tax" Mayo~ Standley closed the public hearing. Councilman Behrendt moved to read Ordinance 27, Series of 1978; seconded by Councilman Isaac. All in favor, motion carried. ORDINANCE #27 (Series of 1978) AN ORDINANCE AUTHORIZING THE ISSUANCE OF GOLF COURSE REVENUE BONDS OF THE CITY OF ASPEN, COLORADO, IN THE PRINCIPAL AMOUNT OF $900,000, FOR THE PUR- POSE OF ENLARGING THE MUNICIPAL GOLF COURSE IN THE CITY; PRESCRIBING THE FORM OF SAID BONDS AND PROVIDING FOR THE PAYMENT THEREOF FROM THE NET INCOME AND REVENUE OF THE GOLF COURSE PROJECT, AND THE MUNICIPAL SALES TAXES AND THE CITY SHARE OF THE COUNTY SALES TAX; PROVIDING OTHER DETAILS IN CONNECTION THEREWITH, AND DECLARING AN EMERGENCY, was read by the mayor. Councilman Behrendt moved to adopt Ordinance #27, Series of 1978, on second reading; seconded by Councilman Isaac. Roll call vote; Councilmembers Van Ness, aye; Wishart, aye; Johnston, aye; Isaac, aye; Behrendt, aye; Mayor Standley, aye. Motion carried. ORDINANCE #28, SERIES OF 1978 - Ratifying Lease Option with Elder/Quinn & Mcgill, Inc. Ord. 28, 1978 Councilman Behrendt moved to read Ordinance ~28, Series of 1978; seconded by Councilman ~-ARatifying bus Isaac. All in favor, motion carried. agreement wi th Elder, Quinn ORDINANCE #28 (Series of 1978) AN ORDINANCE RATIFYING A CERTAIN LEASE OPTION AGREEMENT BETWEEN THE CITY OF ASPEN AND ELDER/QUINN AND McGILL, INC. PROVIDING FOR THE INSTALLMENT PURCHASE BY THE CITY OF TWENTY BLUE BIRD BUSES OVER A PERIOD OF SIXTY MONTHS WITH QUARTERLY PAYMENTS OF $52,500.00 EACH, ALL AS MORE SPECI- FICALLY PROVIDED HEREIN, was read by the Deputy City Clerk. Councilman Behrendt moved to adopt Ordinance #28, Series of 1978, on first reading as amended~ seconded by Councilman Van Ness. Roll call vote: Councilmembers Van Ness, aye; Wishart, aye; Johnston, aye; Isaac, aye; Behrendt, aye; Mayor Standley, aye. Motion carried. At 5:45, the Council adjourned to a study session on housing. Shery~/Simme~, DepuTy City Clerk