HomeMy WebLinkAbout2013-04-08 Council Minutes - Work SessionKENAI CITY COUNCIL WORK SESSION
VINTAGE POINTE RENTS
APRIL 8, 2013
6:00 P.M.
KENAI CITY COUNCIL CHAMBERS
MAYOR PAT PORTER, PRESIDING
NOTES
Council present: Mayor P. Porter, R. Molloy, M. Boyle, B. Gabriel, T. Navarre, R. Marquis,
T. Bookey
Others present: City Manager R. Koch, Terry Eubank, City Attorney S. Bloom and City
Clerk S. Modigh
Mayor Porter began the work session at approximately 6:00 p.m.
City Manager Koch advised the rental rates presently in effect at Vintage Pointe do not provide
revenue sufficient for the operations, and the short term and long term maintenance of the
facility. The facility will require funding from another source to subsidize the facility in the future.
The rental rates have not been adjusted in since July 1, 2008 and according to appraisal
performed in April 19, 2012 are below Fair Market Rent, some units to a significant degree.
The City Manager reviewed alternatives identified by administration:
Alternative Number One -- Increase Rental rates to Market Rent as determined by Appraisal
performed by Derry & Associates dated April 19, 2012. Annual adjustments will be based on the
Anchorage CPI, with an appraisal to determine rent adjustments based on Market Rent to be
accomplished on years ending in "zero" and "five."
Alternative Number Two -- For present tenants, increase rents to reflect the increase in the
Anchorage Consumer Price Index (CPI) only. New tenants would be charged Market Rent with
annual adjustments based on the Anchorage Consumer Price Index (CPI). Additionally, for
tenants whose rent is based on Market Rent, an appraisal to determine rent adjustments based
on Fair Market Rent to be accomplished on years ending in "zero" and "five."
Alternative Number Three -- Amend present/past City policy to provide for across - the -board
subsidized rents at Vintage Pointe. Council could select a single level of subsidy (e.g. 10 %), or
several subsidy levels based on some criteria (e.g. 1- bedroom =10 %, 2- bedroom =15 %).
Annual adjustments will be based on the Anchorage CPI, with an appraisal to determine rent
adjustments based on Market Rent to be accomplished on years ending in "zero" and "five." All
tenants qualify for subsidized housing regardless of financial need.
Alternative Number Four -- Amend present/past City policy to provide for needs -based
subsidized rents at Vintage Pointe. Subsidies would be a function of an annual process to
demonstrate financial need (i.e. a sliding scale). Tenants not qualifying for subsidies would pay
Market Rent. Annual adjustments will be based on the Anchorage CPI, with an appraisal to
determine rent adjustments based on Market Rent to be accomplished on years ending in "zero"
and "five." Tenants must qualify for publically subsidized rents.
Kenai City Council Work Session
April 8, 2013
Page 2
Alternative Number Five -- For current tenants, increase current rental rates by $50.00 per
month beginning July 1, 2013, and an additional $35 per month on July 1st of each subsequent
year until Market Rents, as determined by appraisal, are achieved. Annual adjustments will be
based on the Anchorage CPI, with an appraisal to determine rent adjustments based on Market
Rent to be accomplished on years ending in "zero" and "five." New tenants would pay Fair
Market Rent.
Alternative Number Six -- As in the majority of analysis of this type a "do nothing" alternative is
discussed. This alternative would, at least for the short term, maintain present rents with no
increases.
Administration recommended Alternative Number Five as a compromise with the rents being
increased over a reasonable period of time to market rent levels while attempting to minimize
the impact to current tenants.
Council provided an opportunity for public comments and thanked all for their participation.
Council and administration discussed the proposed amendments.
The work session was adjourned at 7:30 p.m.
N tes prepared by:
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n ra VlodigW, CIVIC
City Clerk