Loading...
HomeMy WebLinkAboutminutes.council.20171113Regular Meeting Aspen City Council November 13, 2017 1 CITIZEN COMMENTS ............................................................................................................................... 2 COUNCIL COMMENTS ............................................................................................................................. 2 BOARD REPORTS ...................................................................................................................................... 3 CONSENT CALENDAR ............................................................................................................................. 3 Resolution #143, Series of 2017 – Timberline On-Call Contract ......................................................... 8 Resolutions #144, Series of 2017 – Transformer as-needed Contract .................................................. 8 Resolutions #146, Series of 2017 – EOTC 2018 ½% Transit Sales and Use Tax Budget .................... 8 Resolution #153, Series of 2017 – WAPA Purchase Power Agreement .............................................. 8 Resolutions #154, Series of 2017 – Sunrise Contract Extension for Building Permit Review ............. 8 Resolution #148, Series of 2017 – Engineering Contract for Aspen Mobility Lab .............................. 8 Resolutions #155, Series of 2017 – Temporary Modification to the agreement between the Red Brick Center for the Arts and the City of Aspen .................................................................................................... 8 Resolution #156, Series of 2017 – Justice Snow’s lease amendment ................................................... 8 Minutes – October 23, 2017 .................................................................................................................. 8 ORDINANCE #30, SERIES OF 2017 .......................................................................................................... 8 ORDINANCE #29, SERIES OF 2017 – 2017 Fall Supplemental Budget ................................................... 9 ORDINANCE #32, SERIES OF 2017 – Supplemental Appropriation for Option to buy Truscott II ....... 10 ORDINANCE #27, SERIES OF 2017 – Amend Title 25 Utilities – Electric and Water Rates ................. 10 ORDINANCE #28, SERIES OF 2017 – 802 w. Main Street, Major Public Project Review ..................... 11 ORDINANCE #31, SERIES OF 2017 – 488 Castle Creek Drive Affordable Housing ............................. 12 ORDINANCE #21, SERIES OF 2017 – 500 w. Hopkins Ave. (Boomerang Lodge), PD Amendment .... 14 RESOLUTION #149, SERIES OF 2017 – 500 Doolittle Dr. (Water Treatment Plant Site) – Temporary Use .............................................................................................................................................................. 15 Regular Meeting Aspen City Council November 13, 2017 2 At 5:00 p.m. Mayor Skadron called the regular meeting to order with Councilmembers Myrin, Mullins, Hauenstein and Frisch present. CITIZEN COMMENTS 1. John Miller discussed reporting of illegal construction. Currently you have to fill out a complaint form and drop it at the city. It becomes public knowledge. The city informs the people who reported it and it is resulting in retaliation. He has had rocks thrown at his vans and workers insulted. He is asking for an anonymous process. The illegal construction is resulting in permit fee loss and potential safety issues. He has no problem with putting his name on a piece of paper but does not want it reported to the person he made the complaint against. Jim True, city attorney, said it is a legal issue. Pitkin county had the exact issue. They tried to protect the person making the complaint and the County lost in court. The Court of Appeals said the County could not maintain confidentially of the report. You could accept anonymous complaints and there would be no evidence to address the complaint. We are in a bind that has been created by the laws. Depending on the anonymous complaint we may or may not be able to investigate it. We can’t guarantee confidentiality of a report. Councilman Myrin said as policy makers we should lean towards the most anonymous process we can. Mr. True said we would need a discussion on how much staff we put on those. We can’t follow up and find out the facts. It is difficult to move forward with a tip when it comes in anonymously. 2. Bill Schaefer stated he is unhappy with not sophisticated financial controls of the city. He assumes the city has an audit each year. Don Taylor, finance, said the audit determines if they can rely on transactional information. It is not an internal control audit. If the financial auditors notice controls that need strengthening they will make recommendations. We had an internal audit two years ago. In terms of how the money is spent the auditors don’t care. Mr. Schaefer said his concern started with the housing finances a few years ago where the city would not approve funds to take care of the buildings. When the parking card matter came up it was a situation where there was not much control. The problems with the Red Brick he had the same question. Why is someone not looking monthly or quarterly as to how the money is being spent. There is a similar problem with Justice Snow’s. It is a management problem of the city to have controls in place. The responsibility lies with the city not the council. 3. Jackie Kasabach said last week she was working at the chamber kiosk. She discovered the meters in town said no fees it’s a holiday. She then heard from someone if it is a holiday here why do I have to pay at the garage. COUNCIL COMMENTS Councilman Hauenstein said 99 years ago there was an armistice to end World War I. We celebrate it as Veterans day. He would like to honor all that have served and hopes we can find a way not to send people in uniform to fight our wars. We are 10 days away from Thanksgiving. He is thankful for the honor people have given him to represent them on Council. On December 5th ACRA will be holding a workshop on financial controls. They are still working on the curriculum. He encouraged members of non-profits to attend. Councilman Myrin thanked John for the discussion on anonymous complaints. We should try to implement that. Retaliation is not acceptable. Ward and I went to the Wheeler board meeting last week. Read the coverage in the Daily News. Voters voted no on the GO bonds for water storage in Woody Creek. I did not support that. There are solutions that don’t require open storage there. Councilman Frisch talked about the recent election on the board of education. He thanked Margo, Susan, Susie and Dwayne. Hats off to Johnathan Nichols. It was great to see the tobacco tax pass, by a high Regular Meeting Aspen City Council November 13, 2017 3 percentage. While it is not fun to raise taxes, he is sure the funds will be paid back in spades to educate. This is a great step for the community. Councilwoman Mullins congratulated the school board members who were reelected and newly elected. She is happy about the tobacco tax but sad about CMC. John brought up an interested thing. You should have a right to face your accuser. Maybe the city can look at better monitoring so we don’t have to depend on people debating on being anonymous. She missed the work session for a tiered approach to financial oversight. She noticed a large number of outreach efforts the city does. Mall, stormwater, lift 1A all had numerous open houses. All interactive engaging outreach efforts. The city is doing a good job but there are still people who come late to the table. Mayor Skadron said financial oversight is a key and he appreciates Bill’s comments. 10 days is also the opening of the mountain. BOARD REPORTS Councilwoman Mullins said RFTA met last Thursday. There were lots of congrats on the completion of the bridge on time and budget. They are finishing up some land transfers and gave an update on the integrated transit plans. They also adopted the 2018 budget. The Red Brick has been dealing with challenges but are making sure the core programs are continuing without interruption. Mayor Skadron said CAST met in Silverton. They heard from the Mayor and Jen Brill, owner of the ski lift. They also heard from a designation on the superfund site. The leak into the Animis river effected a lot of business there. There was a report on how teams went into action to protect the community. They heard from Lyft who are expanding to mountain towns. They also heard from the Recreation department on how small towns invest in themselves. It was really quiet even with the train. CONSENT CALENDAR Reso #144 – Transformer as needed contract Councilwoman Mullins said the contract amount is zero. Why do we look at it now not when the purchases come up. Tyler Christoff, utilities, stated there is a lot of lead time on transformers so we want to have a contract in place to purchase as they come up. Reso #153 – WAPA purchase power agreement Councilman Frisch said we are being asked to sign a contract six years from now. He worries about that. He wants to make sure we don’t jump the gun because the world can change a lot. Phil Overeynder, utilities, replied this will extend the existing agreement that expires in 2024 to 2057 under similar terms. When you compare the current rates for wind to other energy there is a substantial savings. We need to look at the business we are in and why we plan so far into the future. MEAN handles many contracts that include federal energy that is pooled. They have to do an integrated resource plan looking into the future. Even though we weren’t looking at the contracts dropping out it happens that MEANS contracts drop out and they just planned for eight years out. Councilman Frisch said he thought he heard a complete different reason in an email you sent to me. Why not nine or three years out. Mr. Overeynder said the last time the contract came up was 1999. There are several contractors that have these MEAN contracts. When that occurred, there was some lead time. WAPA heard there was not enough lead time during that process. That is why they came forward with six years. Also, because it is below market rate. If that difference were to go away it would mean we would need to look at other sources of power. The ability for long term planning necessitates the six years. Councilwoman Mullins said the most important part is do we keep Aspen electric 100% renewable. She is more concerned with the 2057 date. We need to keep some diversity in the resources we are using. Her other concern is with hydro there has been some proven inefficiencies with dams. She want to make sure the hydro we are getting from Glen Canyon dam is still there 40 years from now. Mr. Overeynder said if Regular Meeting Aspen City Council November 13, 2017 4 that happened we would need to amend the contract. There are ways to deal with that within the contract. Dave Hornbacher, utilities, said the WAPA contract is more like an anchor. We have others that are shorter and more flexible like the wind contract. Councilman Hauenstein said this is hydro and wind. One of the justifications is an increase in fuel prices. How do they increase. Mr. Overeynder said if you compare this to federal electric energy from coal fire. Over time the cost of fuel will inflate. There is none of that with hydro. Councilman Hauenstein said how does the cost from WAPA compare to Ridgeway and can they supply the kind of energy needed. Mr. Hornbacher stated our contract with Ridgeway allow us to buy eight months of 12. Should it become available we are in line to purchase it. It would offset shorter term more variable contracts. Councilman Myrin said it is two cents a kilowatt for the term. Mr. Overeynder said that is the current price but it is adjusted over time in small increments. Councilman Myrin said he has the opposite feel than on the police station. Dams were not the best but it saves a lot of money. He will support this when he did not support that. Mayor Skadron said he is concern was the binding. How this council can bind a future council for 40 years. That is not happening. This commits WAPA selling to us. Mr. Overeynder said he thinks there is a commitment to purchase a minimum amount of energy over that time. Mr. True said this is treated differently than binding future councils. It is different in other contracts that are required to terminate on appropriations. Mr. Hornbacher gave an example of the long term contract with MEAN. Mr. True said the State constitution allows this. If the appropriation is not made than the contract is terminated. Reso #154 building permit review Councilman Myrin asked are the results of sub contraction the same as when staff does it. Stephen Kanipe, building, replied yes. We have worked with this company for about four years. They are informed of our systems and what to be aware of. Councilman Hauenstein said his concern is we have staff to look over all the plans. The justification in supplemental help is there was an unexpected absence of employees. His concern is if we have staff hired to do these tasks why are we paying contractors to do this. Jessica Garrow, community development, stated we had an FMLA issue that was unexpected and unanticipated at the beginning of the year. There are requirements in the small lodge program that there is an expedited permit review and we need to lean on these groups. Mr. Kanipe said some of the projects we are seeing, this outfit is more able to examine them. We have the capacity to do it but it would take up a huge amount of staff time to do it. It would be an unweighed allocation of resource. They have the capacity. Councilwoman Mullins said even with the $15,000 it is still much less than an employee. Within the consultant group there is expertise that the city may not have. If it helps encourage more participation in the small lodge program that is great. Reso #148 –Aspen Mobility lab Ashley Perl, environmental health, stated the contract is for help with the lab on engineering aspects of the project. They are required to have a full construction design that requires a full engineering design. Typically, we have an outside firm do this. Councilwoman Mullins asked how are they integrating with design workshop. Ms. Perl replied they will pass the designs along to Alta. It is a requirement of the Design Workshop contract. Councilwoman Mullins asked what did we approve and how far are we. Ms. Perl said Council approved $125,000 and that will be depleted with this contract. We are asking for additional funds to continue some contracts into phase two. Councilman Frisch said he is still trying to figure out what we are doing. If we end up doing less do we need everything in this contract. Ms. Perl replied this is the bare minimum. Reso #155 – Red Brick temporary modification to the agreement with the City Councilman Frisch said he is fully supportive of this. Without a doubt the Red Brick building and the programming, artist residencies and studio are vital to the community. We need to have a tighter connection to the City with this important building. He would rather see the Red Brick Council concerned with the arts than the building. We might look to the Yellow Brick or Wheeler. He has been pitching for some time that the financials come in but there is a closer reporting line and the director becomes a city Regular Meeting Aspen City Council November 13, 2017 5 employee. There should be some type of citizen board. The 90 days will give us an idea of what that looks like. We should be careful about the City Council getting involved in the arts. There is discussion on how the board is appointed in the future. This allows the executive director and board to work on what we want them to. Councilman Frisch is questioning if this is a segue into a new model for the offloading of the facility to the city. Councilman Frisch said as it was pitched they need three months to regroup and the programming stays. Jeff Woods, recreation, and Sara Roy, new city interim employee and prior executive director of the Red Brick said the 90 day window is to do an operational assessment and is there a better model to run the building. There is plenty of money to run the building. The rent easily covers the operational part. The arts council is looking at where it will go long term. We are looking at other models like the Yellow Brick and Wheeler. We are also looking at strategy models. It is a simple model that is setting up the long term health of the organization. We have 13 tenants that were to have their lease renewed as of October 1st. We would like to extend them for another year so the tenants are locked in to their lease. There is some angst with the tenants and it is not their fault. Councilman Hauenstein stated he can support that. Councilwoman Mullins said she can support it if Jim looks at the leases. Mr. True replied I’ve looked at them before and assisted Ms. Callen in preparing them in the past. I will review them with Jeff. The goal is to make sure the tenants intending to stay can do so. Councilman Myrin asked if the leases are all identical. Ms. Roy said there are two different ones, non- profit and artist lease. The artists have specifications about participating in openings and teaching classes. Councilman Myrin said he would support the extension and prefer all the leases come up at the same time. Councilman Hauenstein said at the end of 90 days are we looking at a different model or handing back operations to the center. Mr. Woods said this is a joint effort working with the community, arts council, you and us to come up with that. We just don’t know right now. We will come back with alternatives for you to make that decision. It is not a dollar decision but a philosophical one. Councilman Frisch said when this first happened I said I want to keep as much status quo for the people on the ground. He is fully supportive of the extension. We need to have two boiler plate leases for the non- profits and artists. He has no interest to decide who goes in there. That should be left to the red brick. Mr. Woods said we are asking to modify the agreement with the Red Brick Council and Aspen to hire Sara for 90 days to be an interim employee and suspend the current agreement with the Red Brick. We will pay her salary. We are asking for $60,000 for operations. It is all covered by rent revenue. Councilman Myrin said page 118 has an amendment for the agreement. You also want direction on the lease extension. He would extend the leases all to September of 2018 so they all come up at the same time. Mayor Skadron said the goal to keep the Red Brick a vital asset to support the arts and non-profits. If extending the leases is appropriate to do that then I support it. Mr. True said we will amend the resolution to reflect the changes. To fix the resolution he would add the City Council of Aspen approves the amendment between the City of Aspen and the Red Brick Center of the Arts and hereby authorize the City Manager to authorize the agreement with approval of the City Manager and City Attorney. Mayor Skadron asked about the difference between the Red Brick Center and the Red Brick Council. Ms. Roy stated the Red Brick hired me. The arts council is the 501C3 and has been in a relationship with the city to manage the building. The arts center is who initially hired me. You can use center and City of Aspen interchangeably. Mr. True said he is not sure he agrees with her 100 percent. Jackie Kasabach, president of the Red Brick Council, said as far as the governing board, the council is what had a management agreement with the city. The center is the building. You might want to make some changes and one of the reasons we haven’t signed it yet. These agreements should be between the City of Aspen and the Red Brick Council for the Arts. Mr. True said the resolution as I amended it did not correct the statement about the Red Brick Center for the Arts because that is what the agreement says. It may be my lack of understanding on how these two entities were formed. One was for receiving donations and supporting the arts and then there was an entity created to manage the building. Ms. Kasabach said her understanding is the city went to the citizens to purchase the red brick center and the building. The city chose not to manage it directly and an existing council would manage the building. The Red Brick Regular Meeting Aspen City Council November 13, 2017 6 Center hired the Red Brick Council to manage the building. I think there is a difference and suggest this agreement fix this problem. Mr. True said it does need to clarify the actual party that is involved in this. Ben Schadeva, parks, said as the terms of operating entities the Red Brick Center of the Arts handles all the operational costs and the council directs that. Mayor Skadron asked does the 90 day suspension consider a review of these issues. Mr. True said we will have 90 days to address everything. There is an agreement and the one adopted in 2015 was with the Red Brick Center of the Arts and this resolution amends that. I think you can pass the resolution with the language I used and we will finalize that amendment. Reso #156 – Justice Snow’s lease Mr. True said before he and Sara left the country we had discussions with Kiley about this agreement and she executed it conditioned on approval of Council. Councilman Frisch said under background the last sentence is the addition of payment of all rents due. There is still some outstanding rent in the over and above percentage basis. Has that been collected. Mr. True said his understanding is in February of this past year there was due payment for 2016 percentage rent. That was spread out over the year. They payment made would have paid through October. There would be an additional payment due for the next couple of months. Under this agreement that would roll to February of next year. Councilman Frisch said none of the 2017 percentage base has been paid. It is not due until next February. When is the rent for the amendment due. Mr. True said Section 2 of the agreement sets forth when everything is to be paid. Commencing on November 1st the base rent will not be due. Rent for November and December 17 as well as the percentage rent, will be due at the remainder of the gross sales percent rent on January 31st. Councilman Frisch said he is supportive of that. What are we doing with 2017 above and beyond the base rent. Mr. True stated it is due January 31, 2018. Councilman Myrin said the affordable hamburger stays in. Mr. True said this proposal does not have any restrictions on menu prices for the remainder of the lease. There is no requirement for the hamburger. Councilman Hauenstein said the amendment is 8 percent of gross without a breakeven point and is due on January 31. Mr. True replied yes. Michelle Kiley, owner of Justice Snows, said she wants to ensure Council that she views the extension as a secure and viable operator for that space for the future. For the timing of the RFP request, she recognizes the imperative for you to protect the continue operation and viability of that space. She is asking council for consideration that if she successfully operates this winter if council will consider right of first negotiation and the city give concise criteria for measuring the success of her operation. Councilman Frisch said his understanding is Council is being asked two things, the lease amendment and the RFP proposal. If we approve the terms of the lease will you be up and running on November 17th. Mr. True said that is one of the reasons it is on the consent. Councilman Frisch said at some point staff will propose RFP suggestions. Now Kiley has added new points. Kiley said she would like the specific criteria the city wants so she can fulfill it then ask for consideration in renewing the lease. Councilman Myrin said that is fair and the community would have an idea of what we are looking for in the RFP process. Kiley said for the last five years everyone has an idea of what the space should look like and no one can agree on that. She would like to base success on council’s expectation. If it is simply meeting the financial obligations that is what landed us in this difficulty in the first place. Mayor Skadron asked do we have a statement from five years ago that speaks to this. Barry Crook, manager’s office, said there was an RFP and an agreement. Mayor Skadron said the original agreement had the bullet points. Mr. Crook suggested there is no need to finalize what she wants tonight to approve this agreement. Councilman Frisch said there has been some support from Council to get going. What I don’t want to do is a one year process. I think it can be done in four to six weeks. We can have a fully well oiled machine in there by Food and Wine. He is worried about the lingering effect and trying to get to the punch line. Mr. Crook said he wouldn’t recommend developing criteria for the RFP. Councilman Frisch said he took the memo that we have checked off the lease to get Kiley in there and are to start the Regular Meeting Aspen City Council November 13, 2017 7 RFP process. When would you propose to have that discussion. Mr. Crook replied he would like to discuss that with Sara, the city manager and the Mayor. Councilman Frisch said as far as I’m concerned, I would rather have staff take notes. I suggested that staff hear from Council six weeks ago. I was told by staff to wait. I was surprised to get this memo asking what you want us to do when I thought we would get some direction. Now you want us to wait. Kiley said she is here to petition the timeline for the RFP and give us a chance to be successful. She would like council to consider we went through the RFP process and it was a long one. Councilwoman Mullins asked is part of the problem that Sara was planning to be here and is not. Mr. True said we were focusing on we have an agreement with Kiley that was approved prior to November 17. We worked with her and created what is in the amendment. The goal for the consent was it was appropriate as a resolution to approve the lease. Sara wished if Council was going to approve the lease then it would contemplate an RFP process and we wanted some guidance on initiating that process with a work session or staff to come back with its proposal. What Kiley is asking is she have some priority in the process. Sara and I did not support that. She needed to rely on her previous four years in responding to the RFP. Mayor Skadron asked does Council support Fiercely Local in having priority in the RFP process. Mr. True said Kiley is requesting that now. What is the next step. Do you want staff to bring back a proposal or set a work session. Councilman Frisch said there is a big difference in hammering out details and seeking direction and input about the RFP. Time is of the essence for the community. If we want someone up and running by the start of summer we need to get going. Councilman Hauenstein said Kiley has a try out period. It is totally reasonable for her to ask what our measures of success are. We are at the point of having a restaurant in there for the winter. We next need an RFP process to have someone in there for the winter. The RFP process needs to be defined as quickly as possible. She is asking for first consideration, you have five months and a head start on everyone else. You’ve had five years. It is really important to start the process as soon as possible so you know what the measures of success are. As a community and a different Council, we have ideas of what we want in the space at the end of your temporary lease. I don’t want to get involved in setting menus. Council agrees we want the restaurant opened as much as possible. A family and affordable restaurant. We should consider having the restaurant in there doing catering for the Wheeler events. There should be someone in there with several years of restaurant business. That gives you a head start. We want whatever restaurant is in there to meet our expectations and we need to define those quickly. I want to give you every opportunity to succeed. I can’t tell you that you will get first consideration but you have a head start. Councilwoman Mullins said at this time, I support the short term lease. She does not support giving you priority in the RFP process or pushing that date out. She would like to have an in depth discussion for the 28th. Councilman Myrin said the priority should be neutral. What we should do is define what we think success is. It is different than looking at the old RFP and say do that. Mayor Skadron said he would have to look at the old criteria. Councilman Myrin said ideally someone would want to operate for the winter with the new criteria so we can say it is working. That would be the advantage for the current operator. He leans towards the least restrictive, open and highest bidder who wants to do that. It should be open 365. Beyond that I don’t want to get into tinkering with the menu or prices. Last time it was too detailed. I don’t think we are willing to have free rent and there is not enough room in the 8 percent to give subsidized food. Councilman Frisch said he is fully supportive of the lease amendment. The food is great the service is great and there is a lot of arts going through there. On November 17th, I hope you have a financial model that allows you to run the place. As long as you stay open I think you know enough to stay open. The rest of the affordable restaurants other than yours or Little Annie’s all went because the landlord had a higher and better use. It was not at serving food at an affordable price point. He does not want to get involved in how you want to run it. Going forward, we need a higher bar of experience. He is hoping that we can get a theme idea and concept and not have to get into any menu pricing. There were some things that were objective that were not met including paying rent and opening hours. Regular Meeting Aspen City Council November 13, 2017 8 Mayor Skadron said Council does not support priority in the RFP process. We do support getting the RFP out as soon as possible. Mr. True said the key is adopting resolution 156 which authorizes the lease extension agreement. He also stated he can clarify the Red Brick Center for the Arts may be the current title of the entity or at least a trade name for it. This entity that was created in 1972 was the Aspen foundation and went through a bunch of name changes to the Red Brick Center for the Arts. We still need to fix the draft but the name in the reso is correct. • Resolution #143, Series of 2017 – Timberline On-Call Contract • Resolutions #144, Series of 2017 – Transformer as-needed Contract • Resolutions #146, Series of 2017 – EOTC 2018 ½% Transit Sales and Use Tax Budget • Resolution #153, Series of 2017 – WAPA Purchase Power Agreement • Resolutions #154, Series of 2017 – Sunrise Contract Extension for Building Permit Review • Resolution #148, Series of 2017 – Engineering Contract for Aspen Mobility Lab • Resolutions #155, Series of 2017 – Temporary Modification to the agreement between the Red Brick Center for the Arts and the City of Aspen • Resolution #156, Series of 2017 – Justice Snow’s lease amendment • Minutes – October 23, 2017 Councilwoman Mullins moved to adopt the consent calendar except for Resolution #155; seconded by Councilman Hauenstein. All in favor, notion carried. Councilman Hauenstein moved to adopt Resolution #155 with amendments outlined by city attorney; seconded by Councilman Frisch. All in favor, motion carried. ORDINANCE #30, SERIES OF 2017 – 2018 Fee Ordinance Pete Strecker, finance, stated tab 5 of the budget books outlined the changes proposed. There is some clean up for Recreation and Golf, Comdev and Engineering. There are also changes to dog vaccinations and licensing under Police. For Parking a new pass for the business group and business permit is proposed as well as an increase on 4th hour of on street parking. Councilman Myrin said for parking fees for 2018-2019 there is the idea of a year from now residences and business permits going to zero for EV vehicles. The fees are going up for carbon emitting vehicles for a carbon emission credit. It would zero out carbon for those vehicles requesting permits. Councilman Frisch moved to read Ordinance #30, Series of 2017; seconded by Councilman Myrin. All in favor, motion carried. ORDINANCE NO. 30 (SERIES OF 2017) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, AMENDING THE MUNICIPAL CODE OF THE CITY OF ASPEN TO ADJUST CERTAIN MUNICIPAL FEES INCLUDED UNDER SECTION 2 AND 26 OF THE MUNICIPAL CODE. Councilman Frisch moved to adopt Ordinance #30, Series of 2017 on first reading; seconded by Councilman Myrin. Roll call vote. Councilmembers Mullins, yes; Frisch, yes; Hauenstein, yes; Myrin, yes; Mayor Skadron, yes. Motion carried. Regular Meeting Aspen City Council November 13, 2017 9 ORDINANCE #29, SERIES OF 2017 – 2017 Fall Supplemental Budget Mr. Strecker stated the supplemental includes 6.7 million in total. 3 million is for the Woody Creek parcel. The actual purchase of the land would happen in 2018 so we can table that discussion for the budget request for that item. 1.7 million in appropriation authority for items you have seen year to date. There is also 1.7 million in new requests including contract support for Comdev and others including Red Brick for 80,000 to be off set by revenue. Councilman Frisch said the permit overpayment is two or three years back. Ms. Garrow stated it is a combination of human and software error. It was caught by Rebecca Wallace in Comdev. It has taken us a great deal of time to go back and make sure we have the right amounts for those permits. In October, we started sending letters out and a good bunch of folks want refunds. There are also those that underpaid and we are working on getting those funds. Councilman Frisch said he is supportive of the historic preservation sheets. Ms. Garrow said that is scheduled for the January 29 work session. Councilman Frisch asked what is the IGA with the animal shelter. Mr. Strecker said it is an agreement on net income revenues. Any excess is split back to the county that they hold in the animal shelter fund. We get the other 50 percent and contribute it to capital expenditures. Mr. True said the city and county have an agreement with Seth to manage the facility. Councilman Frisch asked is the mobility lab new. Mr. Strecker said 125,000 is an earlier request and additional money is requested. Ms. Perl stated this is not the first time you are seeing the 125. The new amount is 345,000 and includes the contract for the air sage data previously approved through transportation. Councilman Frisch said he is supportive of the lab and we are putting chunks of money in to get us to a point. When do we get a plan of the next steps? Ms. Perl stated a meeting with Council is scheduled for December 12 on what is the lab, budget and fundraising options. January 23rd will be the final decision. This money will get us through till January. Councilwoman Mullins asked why is it 470 and 300 dollars. Ms. Perl said it is one of the administrative contracts. Councilman Hauenstein said the permit for 190,000 was over collected. Where did that money go. Mr. Strecker stated it went to the general fund and now we must give it back. Councilman Hauenstein said page 181 for old powerhouse maintenance for 40,000, where is that coming from. Mr. Strecker said when asset moved to the old power house we did not increase the budget to account for that. Councilman Hauenstein said 380,000 for the purchase of employee housing units. Four units requiring the refinishing. Mr. Strecker replied three of the four were held by some long term city employees. There is some work that needs to be done. Don Pergande, finance, said when we purchased the units we put them into inventory for resale. When we sell them we put in the purchase price. Mr. Strecker said there is 95,000 for the renovation. Jack Wheeler, asset, said it depends on the unit, appliance replacement, repainting, floor covering and window coverings. Councilman Hauenstein said it is 95,000 for the four units. Mr. Wheeler said we had high turnover this year so it is more than four units. Councilman Hauenstein asked about the grey water treatment for Burlingame for 187,000. Are we irrigating yet. Mr. Crook said this is for a project that is partially for the park and the HOA. It is a pumping station to pump the raw water. The HOA provides irrigation water. It is split between parks and the HOA. Councilman Myrin said the water storage is in here so I will oppose it for that reason. Mr. Crook suggested the 3 million be removed and discussed tomorrow. Mayor Skadron said the 3 million for the water utility fund will be removed at second reading. Councilman Frisch moved to read Ordinance #29, Series of 2017; seconded by Councilwoman Mullins. All in favor except Councilman Myrin. Mayor Skadron then moved to read Ordinance #29, Series of 2017 with an amendment to remove the funding for the Woody Creek parcel; seconded by Councilman Myrin. All in favor, motion carried. ORDINANCE NO. 29 (SERIES OF 2017) AN ORDINANCE APPROPRIATING A DECREASE IN THE ASSET MANAGEMENT PLAN FUND EXPENDITURES OF $553,492, AN INCREASE IN THE GENERAL FUND OF $1,099,346, AN INCREASE IN THE PARKS AND OPEN SPACE FUND OF $316,468, AN INCREASE IN THE Regular Meeting Aspen City Council November 13, 2017 10 TRANSPORTATION FUND OF $597,300, AN INCREASE IN THE HOUSING DEVELOPMENT FUND OF $764,830, AN INCREASE IN THE KIDS FIRST FUND OF $350,000, AN INCREASE IN THE STORMWATER FUND OF $252,100, AN INCREASE IN THE WATER UTILITY FUND OF $3,040,000, AN INCREASE IN THE ELECTRIC UTILITY FUND OF $100,000, AN INCREASE IN THE PARKING FUND OF $289,920, AN INCREASE IN THE TRUSCOTT HOUSING FUND OF $6,000, AN INCREASE IN THE MAROLT HOUSING FUND OF $8,000, AN INCREASE IN THE EMPLOYEE HOUSING FUND OF $475,820. Mayor Skadron moved to adopt Ordinance #29, Series of 2017 with an amendment to remove the funding for the Woody Creek parcel; seconded by Councilman Myrin. Roll call vote. Councilmembers Hauenstein, yes; Mullins, yes; Frisch, yes; Myrin, yes; Mayor Skadron, yes. Motion carried. ORDINANCE #32, SERIES OF 2017 – Supplemental Appropriation for Option to buy Truscott II Mr. Strecker said this is just buying out the tax credit equity. It gives us better options for the future. Councilwoman Mullins moved to read Ordinance #32, Series of 2017; seconded by Councilman Hauenstein. All in favor, motion carried. ORDINANCE NO. 32 (SERIES OF 2017) AN ORDINANCE APPROPRIATING AN INCREASE IN THE TRUSCOTT PHASE II AFFORDABLE HOUSING FUND OF $350,000 Councilman Hauenstein moved to adopt Ordinance #32, Series of 2017 on first reading; seconded by Councilwoman Mullins. Roll call vote. Councilmembers Frisch, yes; Hauenstein, yes; Mullins, yes; Myrin, yes; Mayor Skadron, yes. Motion carried. ORDINANCE #27, SERIES OF 2017 – Amend Title 25 Utilities – Electric and Water Rates Lee Ledesma, utilities, told the Council there are three main components including a proposed electric rate increases of 5 percent average, water rate increases of 15 percent and a new electric community investment fee for new and expanded services. Councilman Frisch said the electric tap fee is because there is a capacity issue and a cost to the system. How far out can we plan these. The headline in the paper will be 15 percent increase. How can we plan so there is smaller more incremental costs. Mayor Skadron said the overriding goal is to get to 100 percent cost of service. Mr. Hornbacher said we look out at a few different stages. For near term, we are seeing many utilities with aging infrastructure. That is starting to increase on maintenance and we are trying to be proactive to have those things in our near term planning. Councilman Frisch said it is like building up a capital reserve fund. I’m trying to figure out how we can charge a few percentages each year. He hopes we can have more of a smoothing effect when we increase rates. Ms. Ledesma said in the rate studies we are still in the 5th lowest. Councilman Frisch said if we are asking for 13 percent it is not in our interest to get 5 over 3 years. There is a need to get all of it now because we need it in the next year or two. Mr. Hornbacher said the capital asset plan and the fund balance will fluctuate in the next few years. Councilman Frisch said a slow steady climb is prudent. Mr. Hornbacher replied some of the capital projects are more expensive than others. Councilman Frisch said he is fine with expenses being up and down but the revenue collection should be steady. Ms. Ledesma said when we went with lower amounts we had the maximum fund balance for the three years. The thought was to do a bigger increase now and level out so we stay within the fund balances. Councilman Frisch said he wants to make sure we don’t forget and there is a plan to get back on normal track. Regular Meeting Aspen City Council November 13, 2017 11 Councilman Myrin said we need to keep an eye on these bumps. Is there a way to have a smaller incremental change leveled out over time and the city absorb the costs. It applies to everything. We spend way too much time at council on annual adjustments. He will support this with the provision of the tap fee and increasing the service for good use would get a credit for that use. Councilman Hauenstein said it looks like it was 5 years ago for water and 7 for electric. Ms. Ledesma said water was the last rate study. Councilman Hauenstein said how far to go before we have 100 percent recapture. On electric, we are below 100 on residential and availability charge. Small commercial is slightly above and large commercial is right at 100. On water, raw water is well below and so is the pumping and fire charge. Councilwoman Mullins said back to cost of service were we subsidizing this or behind due to capital projects. Mr. Hornbacher said it is looking at the rate classes and how much they use the system and how much they pay. Overall you collect sufficient money to operate the fund. We are trying to create equity for each class. Councilwoman Mullins asked when will we get the new enhanced meters. Ms. Ledesma said we plan to have a work session in February or March for the rate study and the AMI information. Councilman Frisch said they were in the budget for 2019 and we asked to move it up to 2018. Councilwoman Mullins moved to read Ordinance #27, Series of 2017; seconded by Councilman Frisch. All in favor, motion carried. ORDINANCE NO. 27 (SERIES OF 2017) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, AMENDING AND ADDING TO TILE 25 OF THE MUNICIPAL CODE OF THE CITY OF ASPEN—UTILITIES123 – SPECIFICALLY CHAPTERS 25.04 ELECTRICITY; 25.12 UTILITY CONNECTIONS, 25.16 WATER RATES AND CHARGES AND 25.28 WATER SHORTAGES. Councilman Hauenstein moved to adopt Ordinance #27, Series of 2017 on first reading; seconded by Councilwoman Mullins. Roll call vote. Councilmembers Hauenstein, yes; Myrin, yes; Frisch, yes; Mullins, yes; Mayor Skadron, yes. Motion carried. ORDINANCE #28, SERIES OF 2017 – 802 w. Main Street, Major Public Project Review Justin Barker, community development, said this is one of the three affordable housing projects in partnership with Aspen Housing Partners and the City of Aspen. The project is located in the NW corner of the 7th and Main intersection. Currently the property is zoned as R15 with a single family home. The proposal is to demolish and rezone to AH and build a 10 unit affordable housing structure. This falls under the major public project process that combines all reviews including rezoning, planned development to establish dimensions, growth management and residential design standards. Staff is supportive of the design but would like input on the design specifically. At P&Z we included two recommendations on materiality and details that were included in P&Z recommendation. Overall the board was not in alignment with staff but kept the recommendation in the resolution. Staff is recommending approval as long as Council is comfortable with the design elements. Councilwoman Mullins said she does not support enclosing the balconies. Mr. Barker suggested adding some sort of projecting element and relate it to the residential scale. Councilwoman Mullins said she would not support that. Any additional enclosure will only increase the mass. Primarily it is the visual. She wants to make sure in the NE corner with the open space there is no physical barrier or vegetation to the other open space. When will the units convert to ownership. Adam Roy, representing the applicant, replied after 15 years. Mr. Crook said it is an option that we may or may not pursue. It is a possibility. Regular Meeting Aspen City Council November 13, 2017 12 Councilman Frisch said minimally the developer is 15 years rental then there is a discussion to be had. Who owns it is one option and the second option is rental versus ownership. Mr. Crook said at the end of 15 years we will have the option to buy out the tax credit partnership then should we retain them as rentals or for sale. Councilman Hauenstein asked have we talked about closing off the alley onto 7th Street. Mr. Crook said there has been conversations but it is not in the application. That is something engineering can talk to you about. Councilman Hauenstein said at the end of Main the city owns the easement and to be able to use that for open space and parks. Mr. Crook replied that would be somebody else having that conversation. Councilman Myrin said he is concerned about large composite panels. Mr. Barker said they can reduce the prominence of panels. There is precedent for them to be used in residential but not to that scale. Councilman Myrin stated he would support that. On page 233 upper floor balconies, he would support where Ann is with that. Councilman Frisch said the tradeoff is livability. Jason Bradshaw, representing the applicant, stated it does create more mass. They could become a storage area. We don’t feel that not having an overhang would make the decks less usable. Mayor Skadron is concerned with the additional enclosure and component panels. The recommendation is to address the materials breaking up the panels. P&Z supported the staff recommendation but mixed in responses. Mayor Skadron said Council is supporting addressing the large scale panels but not the overhangs. Councilwoman Mullins moved to read Ordinance #28, Series of 2017; seconded by Councilman Frisch. All in favor, motion carried. ORDINANCE NO 28 (SERIES OF 2017) AN ORDINANCE OF THE ASPEN CITY COUNCIL GRANTING MAJOR PUBLIC PROJECT REVIEW APPROVAL AND ASSOCIATED LAND USE REVIEWS FOR 802 W. MAIN STREET, LEGALLY DESCRIBED AS LOTS Q, R, AND S, BLOCK 12, CITY AND TOWNSITE OF ASPEN, PITKIN COUNTY, COLORADO. Councilwoman Mullins moved to adopt Ordinance #28, Series of 2017 on first reading; seconded by Councilman Hauenstein. Roll call vote. Councilmembers Myrin, yes; Frisch, yes; Hauenstein, yes; Mullins, yes; Mayor Skadron, yes. Motion carried. ORDINANCE #31, SERIES OF 2017 – 488 Castle Creek Drive Affordable Housing Hillary Seminick and Jessica Garrow, community development. Ms. Seminick stated this is one of three affordable housing projects that the City of Aspen and Aspen Housing Partners have. The property is located on Castle Creek road heading up valley just past the Marolt bike crossing. It is near Castle Ridge and Marolt affordable housing. Currently it is a vacant lot. The applicants are proposing a 28 unit affordable housing project with 29 parking spaces. The project is referred to Pitkin County since it is in the marron and castle creek valley. Those comments will be included in the 2nd reading packet. The application is processed as a major public project with subdivision, 8040 greenline, growth management, residential design standard, rezoning from R15 PD to AH and PD review. The dimensions for AH are set during the PD process. Staff is supportive but has concerns with the maximum height and onsite parking. P&Z did not echo the concern in regard to height but did support staff with onsite parking concerns. The applicant is requesting council provide feedback on a parking garage on site or additional TIA improvements, parking storage technologies or additional onsite parking spaces. Regular Meeting Aspen City Council November 13, 2017 13 Mr. Roy said they looked into stacked parking briefly. In this case it would be on grade so visual impact would decrease. It would also have to be enclosed. We think it is an intriguing concept but not a lot of merit. Councilman Hauenstein asked how many flights of stairs to access the 4th floor single unit. Mr. Roy replied three levels. The height is off the back of the building. Where the parking area is the height of the upper level is 32 feet. Councilwoman Mullins said we need to make it clear there has been plenty of outreach and we are not trying to sneak it by anyone. This is a trade of between community benefit and aesthetic and density. It looks enormous from the Marolt side, height and size. If there is some way to minimize that. We may be making a mistake the way it is laid out now. Previously it hasn’t appeared so large. On the parking, it would be good to explore more parking on site. I don’t think we have given everyone what they need. Councilman Frisch said this is hidden. If the 2nd and 3rd floor aren’t working we have a whole other can of worms than the 4th floor. Councilwoman Mullins said you do need to make some tradeoffs. It is very large and out of context. Councilman Frisch said it is a pretty contemporary design but does it make it look bigger than it is. Councilwoman Mullins said she thinks the design is great. Councilman Hauenstein said this is where the rubber meets the road with contradictions with the AACP. We don’t want density we want open space. It is difficult especially when you add on to the high cost of the land. I can live with more density and height to weigh those contradictory values. Housing more of the workforce at the expense of density and getting more out of land costs. Maybe there are some visual things you can do. For me it is a value I can live with to house more people. Councilman Frisch said it is a great location for affordable housing. Does the 4th floor work for you. Councilman Hauenstein replied it does. Councilman Frisch said from the castle creek side it is a two story element. Can you see any of the 4th floor from the castle creek side. Mr. Roy replied it is the 3rd story element in the middle. Councilman Myrin said on the 8th Street project there is demand for housing and space was removed where we could have fit in another unit. Here we received a letter from the county and they have asked us to eliminate the 4th floor or relocate those units. This is us trying to figure out what we should build on our land. I would support removing those four units on the top floor. If we need to do the stacked parking of the 2-bedroom units it would get us there. Mr. Roy said part of what we heard was it would be a visual from the road and that is something we were trying to minimize. Managing that could be an issue as well. We can probably get some more surface parking but it would increase the retaining walls. Councilman Myrin said the county doesn’t seem to want us to park on their property. Councilman Frisch said there is something to be said about a 45 foot height. We should look at it if those units are not on the top floor. I have no problem if those units are spread across the property. We need to explore the option of it being gone. I like the design and I think there is a way to get the same FAR with smaller looking. The parking discussion currently has parking for 29 cars when there is 38 bedrooms. It is one space per unit. The 2 story parking is interesting but opens something we have never looked at. We need to be sensitive to construction and running costs. Have we looked at parking on Marolt. Mr. Crook said we could enter into an agreement with them but I thought you had decided it was too far away. Councilman Frisch asked what is the supply and demand of parking over there. Mr. Crook stated it depends on the season but there is parking to be had. Councilman Frisch said he would like to have a discussion about the parking at Marolt. Mr. Crook said we looked at a number of comparable developments and we are above the average of the parking spots per bedroom. Councilman Frisch said we need to find already built parking spots. Councilman Hauenstein said on the parking for 802 and 517 they are one parking spot per unit. Regular Meeting Aspen City Council November 13, 2017 14 Councilman Myrin said the parking per bedroom chart has most of them with parking off site. It is very different when talking about parking with access to street parking. He suggested possibly Castle Ridge parking. Ms. Garrow said we could add a shared parking agreement. Councilwoman Mullins said she brought up the parking because we don’t have it set up as smoothly as we can. There is no overflow or offsite like there is at 802 and Park Circle. Maybe we should look at Marolt with the potential to give it up in a number of years when we have built up alternative infrastructure. Mayor Skadron said generally what we are hearing is a desire to have similar FAR but a smaller looking building and get the parking to a 1 to 1 ratio. Guarantee there is enough parking for residents and visitors and reduce mass on Marolt side. The nature of the parcel lends itself to greater density. He can support a reduction in density but would be desirous in maintaining density as much as possible. Councilman Myrin moved to read Ordinance #28, Series of 2017; seconded by Councilman Frisch. All in favor, motion carried. ORDINANCE NO. 31 (SERIES OF 2017) AN ORDINANCE OF THE CITY OF ASPEN CITY COUNCIL GRANTING APPROVAL OF MAJOR PUBLIC PROJECT REVIEW AND ASSOCIATED LAND USE REVIEWS FOR 488 CASTLE CREEK ROAD, LEGALLY DESCRIBED AS LOTS 1 & 2, 488 CASTLE CREEK RD PUD & LOT SPLIT, SEPTEMBER 27, 2006 IN PLAT BOOK 81 AT PAGE 48 AS RECEPTION NO. 529046, CITY OF ASPEN, COUNTY OF PITKIN, STATE OF COLORADO. Councilman Myrin moved to adopt Ordinance #31, series of 2017 with conditions discussed above; seconded by Councilwoman Mullins. Roll call vote. Councilmembers Mullins, yes; Hauenstein, yes; Myrin, yes; Frisch, yes; Mayor Skadron, yes. Motion carried. ORDINANCE #21, SERIES OF 2017 – 500 w. Hopkins Ave. (Boomerang Lodge), PD Amendment Ms. Garrow stated there is a request to continue to December 18th. Chris Bendon is here and there is a letter in the packet requesting the continuance. Councilman Frisch said besides this space and Lift 1A he is not sure where the city will see any lodges of substance. It is important for us to try to activate those sites as true lodge inventory. A four story 200ft building will be challenging. He is worried about the highest and best use. Depending on push come to shove it would be nice to know what the residential possibilities are for the site. It has been pitched that there is an approval where someone can start digging to maximum the FAR. At some point, there is an affordable housing discussion as well. Ms. Garrow replied from the land use perspective there is some unwinding for it to convert to single family free market use. This is a very large lot so there is likely discussion about subdivision. Part of the property is designated and that would need to stay unless council supports delisting. There is some level of review that would come to Council before it could revert to single family residence. Councilman Frisch said he is worried about the single family scenario playing out and not being able to stop it. Ms. Garrow said at a minimum it goes through a Council level review to convert. There is some discussion with the attorney what is the underlying right if the lodge were not pursued. Ms. True said currently you have an application to amend the current approved project. Chris Bendon, representing the applicant, said it is 47 keys, 46,000 square feet all in approval. It will be four stories for much of the property with parking below. Wholly owned condos that are lodging. Councilwoman Mullins said she would like to see it as a lodge. Councilman Hauenstein said it has a history of being a lodge. Four stories for the length of the property is a stretch for me. The key factor is what is vested and what do you have the right to build. I like the idea of a lodge there and to be hot beds. Mayor Skadron said he thinks there is enthusiasm for a lodge. Regular Meeting Aspen City Council November 13, 2017 15 Councilwoman Mullins moved to continue to December 18, 2017; seconded by Councilman Frisch. All in favor, motion carried. RESOLUTION #149, SERIES OF 2017 – 500 Doolittle Dr. (Water Treatment Plant Site) – Temporary Use Ms. Garrow introduced Garrett Larimar. Mr. Larimar said capital asset submitted a land use application for temporary use for a temporary mobile job office trailer for temporary offices during the renovation. The site is a 54.36 acre plot of land bordered to east by Castle Creek Rd. and by Pitkin county properties. West is the Moore family PD and Water Place housing. Zoning is public. The review is impact to the neighborhood, compatibility with neighborhood character, compatibility with underlying zone district and if the request would enhance or diminish the general public health, safety or welfare. The applicant requests use for more than seven days requiring Council approval with annual occurrences up to 10 years. The job trailer would be on the southern end of the facility. They are requesting use for four years. Staff has reviewed the application and has determined the location and trailer would have a limited impact of surrounding area, it is compatible with the zone district. It would comply with the dimensional requirements and is outside of the 100 foot set back and must be under 25 feet. The structure would comply. Staff is looking for input on the annual occurrences. Staff is recommending approval. Mayor Skadron said it has limited impact, no increase to traffic or noise or on surrounding neighborhoods. The structure is permitted per the PUD, and complies with the dimensional requirements. Councilwoman Mullins asked why will it take four years to renovate the office. Evan Pletcher, asset, said this trailer is an alternative to do a renovation that has got approval. This is in lieu of doing a renovation before a renovation. It provides office space now at a reduced cost before a full renovation can be completed. Councilwoman Mullins said the renovation will not start for three to four years. Mr. Pletcher said the need is present right now. This will add the offices now for the current needed space then the full renovation will start in three to four years. Mr. Wheeler said we have cut up the current building four times in the last five years. We were going to do it again but this solves the use more efficiently and cheaper. When we figure out what is needed long term we will come back. We don’t know the timing of that. Councilman Myrin said it is all good. Mayor Skadron opened the public comment. There was none. Mayor Skadron closed the public comment. Councilman Frisch moved to adopt Resolution #149, Series of 2017; seconded by Councilwoman Mullins. All in favor, motion carried. Mr. True said staff recommends Council go in to executive session pursuant to C.R.S. 24-6-402(4)(b) – conference with attorneys regarding pending litigation, Water Court Cases Nos, 14CW3096, Application of Stillwater Ranch; 15CW3050, Application of Twin Lakes; 15CW3110, Application of Red Mountain Willoughby et al.; 16CW3063, Application of Maroon Creek Club, LLC; Castle and Maroon Creek Diligences Cases 13CW3128 and 13CW3129 and 16CW3110 Hines Diligence Case. At 10:10 p.m. Councilman Frisch moved to go in to executive session; seconded by Councilwoman Mullins. All in favor, motion carried. At 11:20p.m. Councilman Frisch moved to come out of executive session; seconded by Councilman Hauenstein. All in favor, motion carried. Councilwoman Mullins moved to continue the regular meeting until the next day, November 14, 2017 for purposes of continuing the executive session; seconded by Councilman Hauenstein. All in favor, motion carried. Regular Meeting Aspen City Council November 13, 2017 16 On Tuesday, November 14, 2017 at 6:45 p.m. Mayor Skadron called the regular meeting back in to order. Councilman Hauenstein moved to go back in to executive session; seconded by Councilwoman Mullins. All in favor, motion carried. At 7:45p.m. Councilwoman Mullins moved to come out of executive session; seconded by Councilman Hauenstein. All in favor, motion carried. Councilwoman Mullins moved to adjourn the continued regular meeting; seconded by Councilman Hauenstein. All in favor, motion carried. Linda Manning City Clerk