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HomeMy WebLinkAboutminutes.council.20120326 Regular Meeting Aspen City Council March 26, 2012 CITIZEN PARTICIPATION 2 COUNCILMEMBER COMMENTS 2 CONSENT CALENDAR 3 Resolution#24, 2012—Contract- Sales Tax & Business License Software— N. Harris Computer Corporation 3 - Resolution #25, 2012 —Contract - Agenda Management Software 3 Resolution#26, 2012—Contract— Water Utility Asset Management Plan 3 - Minutes—March 12, 2012 3 ORDINANCE 410, SERIES OF 2012—GMQS Review— 700 E. Bleeker(Eagle's Club) 3 ORDINANCE#11, SERIES OF 2012—Code Amendment Process 4 ORDINANCE #6, SERIES OF 2012—AspenModern Designation 514 E. Hyman 6 ORDINANCE #34, SERIES OF 2011 —Code Amendment—Vacation Rentals 7 1 Regular Meeting Aspen City Council March 26,2012 Mayor Ireland called the meeting to order at 5:03 PM with Councilmember's Frisch, Johnson, Skadron and Torre present. CITIZEN PARTICIPATION 1. Emmy Veazy said Aspen should have grades for restaurants so people are aware of the health scores. Veazy said Aspen needs 4 or 5 business improvements districts, especially along Main street. The mall brick sidewalks should be replaced. Veazy said staff should study the underground economy to see what the real value is. 2. Bill Wiener said the city should look at some alternative locations for Theatre in the Park, such as using the existing Art Museum, a tent at the base of Aspen Mountain, the Ice Garden, the field at ACES, the ice rink on Durant or the Rio Grande Plaza. The development approved at the present site is a mistake for the impact it will have on the John Denver sanctuary and for making a decision based on reduction in annual truck trips. 3. Paul Young, 413 West Hopkins, said the ordinance regarding 219 S. Third approved at the last meeting has some inconsistencies in it, like the additional deck space, the front yard setback on lot 2 and the vested rights. Chris Bendon, community development department, noted the ordinance clarifies the additional deck space is to be mountain side, that the 20 foot setback is for below grade as well and the vested rights period is for 3 years. COUNCILMEMBER COMMENTS 1. Councilman Torre noted the bag ordinance will go into effect May is`. There is a meeting tomorrow at noon; staff is looking for bag ambassadors. 2. Councilman Torre said many great events go on in Aspen and one is the disabled veterans, who are in town this week. Many people volunteer and if one is interested in volunteering, contact the Elks Lodge. 3. Councilman Tone said the just completed 7908 singer/songwriter five day festival was a big success. Councilman Tone commended Amy Kaiser who spearheaded the Colorado songwriter's contest. 4. Councilman Skadron also extended compliments to the Wheeler Staff for the great festival. 5. Councilman Johnson noted it is spring break, kids are out of school. 6. Councilman Johnson said he is going to ask Council to consider starting the cross-town shuttle two days early to accommodate the food & wine schedule. 7. Councilman Frisch thanked Gram Slaton and the staff at the Wheeler for the songwriter festival. 2 Regular Meeting Aspen City Council March 26, 2012 8. Councilman Frisch said the Grand Traverse, a ski race from Crested Butte to Aspen, is this weekend. The event finishes Saturday morning in Aspen. 9. Mayor Ireland told Council he is working on a resolution opposing Citizen United for Council to consider. 10. Councilman Skadron reported the Colorado Association of Ski Towns legislative tour was in Denver last week and it had an engaging agenda. The group met with Governor Hickenlooper, Mayor Hancock and some state department heads. 11. Councilman Skadron said RFTA has supported moving forward with the purchase of buses that run on compressed natural gas; these will be incorporated into the BRT program starting September 2013. 12. Councilman Frisch reported the Red Brick is working on a master plan. 13. Councilman Tone said Abetone, Italy, will be given a two-year trial period as a sister city with Aspen. CONSENT CALENDAR Councilman Johnson moved to approve the consent calendar; seconded by Councilman Frisch. The consent calendar is: • Resolution#24, 2012—Contract - Sales Tax & Business License Software—N. Harris Computer Corporation • Resolution#25, 2012—Contract - Agenda Management Software • Resolution #26, 2012—Contract— Water Utility Asset Management Plan • Minutes—March 12, 2012 Mayor Ireland asked if people will be able to buy business licenses and pay sales tax on line. Alice Hackney,finance department, said this will be available. Mayor Ireland asked the life expectancy of the program. Ms. Hackney said staff is planning on 10 years. All in favor, motion carried. ORDINANCE #10, SERIES OF 2012—GMQS Review—700 E. Bleeker(Eagle's Club) Councilman Tone moved to read Ordinance #10, Series of 2012; seconded by Councilman Johnson. All in favor, motion carried. ORDINANCE NO. 10 3 Regular Meeting Aspen City Council March 26,2012 Series of 2012 AN ORDINANCE OF THE CITY OF ASPEN CITY COUNCIL APPROVING WITH CONDITIONS A GROWTH MANAGEMENT REVIEW FOR AN ESSENTIAL PUBLIC FACILITY FOR 700 SLEEKER ST., LOT 3 OF CREEKTREE SUBDIVISION, CITY OF ASPEN, COLORADO. COMMONLY KNOWN AS THE ASPEN EAGLE'S CLUB Jessica Garrow, community development department, told Council the public hearing will be scheduled for May 14`h. Ms. Garrow said this is a request from the Eagle's Club to memorialize a use in their basement space; for the past 14 years the space has been used by a commercial catering operation. The Eagle's Club is an essential public facility so it is reviewed under a different growth management review. The issue is whether Council is comfortable having a commercial operation take advantage of the growth management review under essential public facility, under which the affordable housing requirements can be waived. This is application is coming in under commercial growth management review and requires mitigation for the number of employees generated. Ms. Garrow told Council the Eagle's Club has a conditional use approval from 1970's when they originally built the building. P&Z reviews conditional use requests. The Eagle's requested an amendment to their conditional use for the commercial catering kitchen, which P&Z approved and made a recommendation on the mitigation. The mitigation is up to Council; are they comfortable waiving it under essential public facility or should mitigation be required. Councilman Johnson asked about other similar situations. Ms. Garrow said she has not found any. Councilman Tone asked how staff would know this operation would go beyond the 3 employees. Ms. Garrow said APCHA can do an audit; if a new business applied for a license that might trigger an audit. Mayor Ireland suggested letting this one go through but prohibiting in the future unrelated commercial uses in non-profit facilities. Mayor Ireland said this use should be grandfathered with 3 employees. Councilman Tone moved to adopt Ordinance #10, Series of 2012, on first reading, with the public hearing date May 14`h; seconded by Mayor Ireland. Roll call vote; Frisch, yes; Skadron, yes; Johnson, yes; Torre, yes; Mayor Ireland, yes. Motion carried. ORDINANCE #11, SERIES OF 2012 — Code Amendment Process Councilman Torre moved to read Ordinances #11 and #12, Series of 2012; seconded by Councilman Johnson. All in favor, motion carried. ORDINANCE NO. 11 SERIES OF 2012 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, AMENDING THE PROCESS OF AMENDING THE LAND USE CODE AND THE OFFICIAL ZONE DISTRICT MAP: 26.310, AMENDMENTS TO THE LAND USE CODE AND OFFICIAL 4 Regular Meeting Aspen City Council March 26,2012 ZONE DISTRICT MAP, TO THE MUNICIPAL CODE OF THE CITY OF ASPEN, COLORADO. ORDINANCE NO. 12 SERIES OF 2012 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, AMENDING THE HEIGHT AND FAR IN THE CC AND C-1 ZONE DISTRICTS: 26.710.140. COMMERCIAL CORE (CC) ZONE DISTRICT; 26.710.150, COMMERCIAL(C-1) ZONE DISTRICT; AND AMENDING VARIOUS SECTIONS OF CHAPTER 26.575.020(F)(4), CALCULATIONS AND MEASUREMENTS—ALLOWED EXCEPTIONS TO HEIGHT LIMITATIONS, TO THE MUNICIPAL CODE OF THE CITY OF ASPEN, COLORADO. Jessica Garrow, community development department, told Council P&Z reviewed these code amendments and voted unanimously in favor of them. In Ordinance #11, P&Z added the ability for HPC to initiate a code amendment by passing a resolution for Council to endorse. P&Z eliminated the floor to floor height minimum on upper floors. Ms. Garrow noted the commercial design guidelines call for a minimum floor to floor height on the 1st floor and a minimum floor to ceiling height on the upper floors. Ms. Garrow said staff recommended this be changed to all floor to floor; at a meeting with local designers it was suggested that designers figure out how to make it work and changing it to floor to floor would complicate the issue; P&Z agreed. P&Z recommended changing the setbacks for some roof top items, like railings or renewable energies do not have to meet a 20' setback but be setback the same height as the device. Councilman Frisch questioned whether that setback is enough. Ms. Garrow said one would be able to see those devices. Councilman Frisch said he has heard from the community they want to minimize what can be seen on the roof and questioned whether Council should set up exemptions from roof setbacks. Mayor Ireland stated he feels 36' to 38' high is too tall. Mayor Ireland proposed eliminating free market residential in the downtown core except hotels or lodges. Mayor Ireland said Council is told free market residential is the economic engine. The community is not well served by allowing top floors to be high end residential; downtown should be commercial, locally serving business uses. Mayor Ireland suggested the north side of streets could have more height. Councilman Johnson asked staff to prepare what can be built ceiling at a minimum, at what point does height maximums allow only two story buildings. Councilman Frisch said he has looked at how low the maximum can be with 12' on the ground floor plus 2' mechanical and questioned why 13 to 15' is needed. Councilman Frisch said he would like 3 story buildings to be as unobtrusive as possible and it doesn't seem possible to do 3 stories without allowing 37'. Councilman Frisch said he is not ready to eliminate third floor residential uses. Councilman Frisch agreed there should be some allowance for lodging uses in order to be lodging friendly. Councilman Frisch said Council needs to be careful of allowing physical mitigation waivers. Councilman Frisch said the maximum height allowed has a range and how does one get away from applicants just going to the highest common denominator. Ms. Garrow pointed out the code currently says the maximum floor area is not always achievable in all cases. Ms. Garrow proposed that be added to the height regulations. Ms. Garrow reminded Council all commercial buildings go through commercial design review in front of HPC or P&Z, 5 Regular Meeting Aspen City Council March 26, 2012 who looks at the adjacent buildings and how a development fits. Chris Bendon, community development department, encouraged Council to visit downtown buildings both historic and new construction to look at the ceiling heights. Staff has put together a walking tour for Council to use. Mayor Ireland said additional height should come with guidelines for uses. Councilman Torre moved to adopt ordinance#11, Series of 2012, on first reading; seconded by Councilman Johnson. Roll call vote; Frisch, yes; Tone, yes; Skadron, yes; Johnson, yes; Mayor Ireland, yes. Motion carried. Councilman Tone moved to adopt Ordinance#12, Series of 2012, on first reading; seconded by Mayor Ireland. Roll call vote; Tone, yes; Johnson, yes; Skadron, yes; Frisch, yes; Mayor Ireland, yes. Motion carried. ORDINANCE #6, SERIES OF 2012 —AspenModern Designation 514 E. Hyman Amy Guthrie, community development department, told Council the Elks Lodge has reviewed the plans and accepts those plans and wants to continue to be in contact with the applicant. Ms. Guthrie said the construction management plan is part of the building permit process. Mayor Ireland asked the recourse if the construction management plan is not acceptable to the Elks Lodge. Ms. Guthrie said she is not part of that process but there could be some dialogue with staff and if there are unresolved issues, it will come to Council. Mitch Haas, representing the applicant, told Council they have no objection if there is a stalemate to bring this to Council. Haas reminded Council Mason and Morse has been in business in Aspen in 1951, locally owned and operated. Haas pointed out there have been changes to the zoning code to not allow real estate offices on the first floor and if Mason and Morse moves out of the space, the ground floor cannot have real estate office uses. Haas said this had been designed to give the building flexibility to have other and more than one tenants. John Cottle, architect for the project, showed the existing conditions on the 2nd floor and in the basement in order to show the relocation and amount of commercial space. When this is complete there will be a net gain in commercially leasable space. Cottle showed slides of the proposed public space in front of the building, seating will be provided, perhaps tables, it is south facing and will be a dwell space. Councilman Tone said he would prefer not to see residential space on the top floor; however, he appreciates the reactivation of basement space, which space may be accessible to a business that cannot afford ground floor space. Mayor Ireland stated he does not want to see cranes for construction of this project placed in the streets. Mayor Ireland opened the public hearing. Bob Leatherman, representing the Elks Lodge, said they are satisfied with the plans as presented and will have continuing discussions with the applicant. Mayor Ireland closed the public hearing. 6 Regular Meeting Aspen City Council March 26, 2012 Councilman Skadron moved to adopt Ordinance #6, Series of 2012, on second reading; seconded by Councilman Johnson. Roll call vote; Johnson, yes; Torre, yes; Frisch, yes; Skadron, yes; Mayor Ireland, yes. Motion carried. ORDINANCE #34, SERIES OF 2011 — Code Amendment—Vacation Rentals Mayor Ireland said Council has received many e-mails on this topic. Mayor Ireland stated this is not a new concept; rental of properties in some zones is prohibited more than twice/year in the land use code. The code amendment was initiated to have people interested in complying with the code be able to apply for a business/sales tax license; the initiative was to legalize what people have been doing in a fair manner. Mayor Ireland said some people are opposed to rentals in residential neighborhoods so there are many opinions on this issue. Sara Adams, community development department, told Council this code amendment attempts to balance neighborhood character and protection of long term residents as well as allowing vacation rentals. Ms. Adams said this amendment is a hybrid and tries to reflect the current market as to address the concerns about residential character. Ms. Adams presented a chart showing the current regulations and the proposed amendments. The lodging district allows unlimited short term rentals and the proposal regulations will keep unlimited short terms rentals. In the commercial districts, 2 six month or less rentals are allowed and the proposal is to allow unlimited. Commercial districts near the mountain with a lot of tourists would be appropriate for unlimited rentals. In the residential zone district, 2 six month or less rentals are allowed and the proposal is to allow six 30-day or less rentals. Anything longer than 30 days does not apply to the definition of vacation rental. In the residential multi-family buildings currently allow 2 six month or less rentals/year and the proposal is for unlimited rentals in the mountains to river area. These are higher density neighborhoods located near downtown or near the mountains. Ms. Adams reminded Council in December staff proposed a rental permitting process, which is part of this proposal. Four standards are proposed; notification to the I-IOA if there is one, obtaining a business license, remitting taxes and listing a property representative or contact person. The permit would be processed at the same time as a business license. Ms. Adams said community development department would have the ability to audit short term rentals if there are complaints about the number of rentals at a particular location. Mayor Ireland said whatever action Council takes will not override any I-IOA deed restrictions with regard to rentals. Councilman Johnson said his goal is to make this as simple process as possible. Councilman Johnson asked about the third party consultant for compliance purposes. Ms. Adams said they will track the rental websites and compare with business licenses. Don Taylor, finance director, told Council a number of ski towns joined together to work with this vendor for better economies of scale. Ms. Adams told Council every town she has spoken with is struggling to come up with amendments or regulations to address vacations rentals. Councilman Frisch said this code amendment may be looking for a solution without a problem. Councilman Frisch agreed there should be safeguards to make sure residential neighborhoods are protected; however, Aspen is a destination resort and people come here and spend money. Councilman Frisch said there have only been 5 complaints in 4 years around this issue. 7 Regular Meeting Aspen City Council March 26,2012 Councilman Frisch said he would like it made as easy as possible for people to apply for and pay business licenses and sales tax, and as easy as possible for people to come and stay in Aspen. Councilman Torre asked why this is a discussion in front of Council. Ms. Adams said one issue is zoning which restricts the amount of short term rentals in many zone districts. Ms. Adams said that is not what the existing situation is. There are regulations on the books that are not being followed. The second issue is collecting sales taxes on these rentals and when one applies for business licenses and that goes to the zoning officer, the applicant is told they can only do two rentals/year. There are rentals for which no sales tax is being collected and this affects various city departments. Councilman Tone noted there is also the issue of fairness and equality. Councilman Frisch said he would favor unlimited short term rentals as long as there are community protections in place, business licenses and sales tax licenses are issued and taxes are paid. Councilman Tone asked if staff feels vacations rentals in residential neighborhoods would have a long term effect of eroding those neighborhoods; people could earn more from their house than living in them leading to even fewer residents. Councilman Frisch said he does not think making this unlimited will cause 3000 more people to use vacation rentals; this practice is prevalent already and the code amendment will not lead to an erosion of community character. Mayor Ireland opened the public hearing. Nancy Freedman, 5th Avenue condominiums, confirmed that their by-laws and rules will take care of some of the concerns raised by Council, like noise and trash. Ms. Freedman said she hopes that the extra revenues collected will support activities that renters use, like free bus service. Steve Falender said there should be a distinction between residential and commercial/lodging districts. Falender said when people live in the lodging district, they are aware it is a tourist area. Falender said there is nothing to deal with rules and regulations that will protect the privacy and quiet enjoyment of people's homes. Falender said he would like to see changes to cover behavior. Tricia McIntyre. Aspen Luxury Rentals, agreed rentals should be the same in every district, all unlimited; it will make compliance easier with the business license, the sales tax license and a local contact. Ms. McIntyre said the complaints have been about trash and parking. Things will not change if rentals become unlimited as people are not aware of the current restrictions. Tracy Sutton, Aspen Signature Properties, agreed most property owners are not aware of the restriction on rentals. Ms. Sutton said when she started in the real estate business, she was not made aware of this. Ms. Sutton agreed renters should be made aware of trash and neighborhoods. Ms. Sutton said the rentals should not be restricted; Aspen is a destination resort. Bill Stirling noted it is the renters who pay the tax. Stirling said it is good the city wants to liberalize the existing regulations; however, limiting to any number does not work. Stirling said the concern is whether the character of residential neighborhoods will suffer. Stirling pointed out the character was created by having renters and the relationships between renters and residents. Stirling said a complicated enforcement system will not be an asset. This code amendment will legitimize rentals for people. Stirling said residential neighborhoods are well suited to this use and it will not ruin the character and may make the neighborhoods richer in terms of vitality. 8 Regular Meeting Aspen City Council March 26, 2012 Marcia Goshorn said this may be a regulation that shoots the city in its foot. Ms. Goshorn noted Aspen has been losing bed base for over 20 years and vacation rentals in homes has filled in some of these gaps. Ms. Goshorn noted Council has for years discussed how to get lights back on in the neighborhoods and having renters accomplishes that. Ms. Goshorn said the economy would be more limiting than allowing unrestricted number of vacation rentals. Ms. Goshorn pointed out vacation rentals in houses allow a family to be all in one structure and is more cost effective for the renters. Councilman Torre said this could also add to the erosion of the lodging base. Bendon noted staying in a house is an entirely different experience than staying in a lodge. Debra Ritchie, Aspen Real Estate Connections, said she lives in the west end and she does not feel the rental activity will increase a lot due to changing this regulation. Ms. Ritchie said this should be made simple and straightforward. Bennet Bramson, president Aspen Board of Realtors, said this seems to have used up a great deal of time on something that has only received 5 complaints in 4 years. Bramson noted that real estate comprises the largest economic driver in the community. Theresa O'Keefe Klein, Joshua and Company, told Council she has been in the luxury rental business for 25 years and the two rentals/year rule has not been fairly enforced and to make it stronger would not make that any better. Alan Schnurman, Enclave homeowners association, told Council these 10 condominiums do rent and he encouraged no restrictions on the number of rentals. Schnurman suggested the term "no restrictions on the number of rentals" over unlimited. Schnurman said when people rent from Aspen Brokers, they are responsible for paying the sales tax. Schnurman said renting is too involved to do it without using a broker. Jeffrey Shoaf agreed with previous speakers and said unlimited rental is the way to go. It is making a mountain out of a molehill to create a solution that is not that big a problem. Charles McCartney said VRBO has had a big impact and the issue for the city is collection of sales tax. McCartney said real estate brokers pay that sales tax for their renters. McCartney suggested renter's conduct should be handled by homeowner's associations or by the Aspen Police Department. McCartney said families renting houses is a growing market; these are not usually the sector that cause problems. McCartney suggested this should be kept simple. George Newell reiterated there have only been 5 complaints in the past 4 years and it seemed to be the nature of bureaucracy to enact more regulations and require more enforcement. Newell stated it is rare to solve a problem by increasing the amount of bureaucracy. Ziska Child questioned the city tacking something that has had very few complaints and that is bringing diversity into the area and that is helping homeowners get some income. Jeff Keswin said some of the issues brought up were non-compliance and non-collection of taxes and most of these are taken care of with business licenses. Keswin said if homeowners are not allowed to rent more than two times/year, the houses in the west end will be empty. Karen Bromka asked how this code amendment is a promotion of public health, safety and welfare and how are people notified. Ms. Bromka said this will cause neighbors to complain on their neighbors. Bert Myrin said this will eliminate the idea for people to own homes within one block of the core; it will increase the home value and people will short term their houses. This is a good short term benefit but a mistake for the longer term. Mayor Ireland closed the public hearing. 9 Regular Meeting Aspen City Council March 26, 2012 Councilman Frisch said he would not support this if he thought it would damage neighborhoods. Councilman Frisch noted said this was an attempt to get a handle on VRBO and collection of sales tax and uphold the state statutes on tax collection. Councilman Frisch stated he is trying to maintain Aspen's vibrant economy. Councilman Frisch said he would like a regulation to meet the goal of increased visitors as well as meet the goal of sales tax collection and to allow people to rent their homes if they want. Councilman Johnson pointed out there is a range of industries running on people staying in these units. Councilman Johnson said he feels a business license is appropriate, an owner representation in town is appropriate and collection of sales tax is appropriate. Councilman Johnson said he would prefer unrestricted rentals rather than putting a number on it. Councilman Skadron stated he is interested in legitimizing what is already happening and he is not interested in a complicated enforcement system. Councilman Skadron said he could support unlimited rentals, requiring paperwork, requiring the payment of sales taxes. Councilman Tone said any revenue collection due the city and the state is his responsibility and he will continue to support tax collection. Councilman Torre said the city should be tracking this information so the city knows what is happening, how many rentals, how long, where are these located. Councilman Torre stated he will support unlimited numbers as long as other protections, including paying taxes, are in place. Mayor Ireland said there is a fairness issue, regardless of the amount of money. Mayor Ireland said this amendment will not change the city's budget. Mayor Ireland suggested renters should get cards outlining the conduct expected in residential neighborhoods. Mayor Ireland said applicants should sign off on the business license or registration form that they are complying with all state, local and federal regulations. Mayor Ireland said this should be reviewed after 3 years to see if it is too burdensome and driving renters out and to see what the consequences are. Councilman Torre moved to adopt Ordinance #34, Series of 201 1, amending it by allowing unlimited rentals in the residential zones: seconded by Councilman Johnson Councilman Tone said he would like some way to collect data from the property managers or the property owners, when the units are rented. Bendon suggested using a company that tracks occupancy of short term rentals. Councilman Frisch said the city will be conducting a lodging study and this type of information could be added to it. Steve Barwick, city manager, said the city could conduct periodic surveys on people in the business to get that information. Roll call vote; Councilmember's Johnson, yes; Skadron, yes; Torre, yes; Frisch, yes; Mayor Ireland, yes. Motion carried. Councilman Tone moved to adjourn at 9 PM; seconded by Councilman Johnson. All in favor, motion carried. el athryn Koch City Clerk 10