01/13/1997 Council Minutes - Laserfiche WebLink

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COUNCIL MINUTES JANUARY 13, 1997 Mike Stoby, Terry Schmidt's agent for Willow Ponds, stated he is not sure of the impact if the Council considers passage of Resolution No. 97 - 03 and how it will affect Resolution No. 97 - 04 because of the flat fees issue. He requested points of clarification regarding property that is federal assisted via tax credits administered by the Federal Tax Agency. Mr. Stoby advised that all of their units are rent restricted and 50% of the units are offered to persons with physical handicap. Council Member Kuether asked if some units have rent subsidized and some do not. Mr. Stoby advised Section 8 vouchers are tenant based, not owner based. Council Member Kuether asked if all rents are exactly same. Mr. Stoby explained how rents are calculated based on median Anoka County income, household size, etc. Council Member Kuether requested a copy of these calculation formulas. Mr. Stoby stated he would be happy to resubmit that information. Mr. Stoby noted they have very low-volume users and asserted the flat rate schedule will cause a hardship on the property since they will be billed for 48 developable units versus an individual business that may provide services to more individuals. Mr. Stoby stated this is why the rent issue has been exacerbated. He asserted that there is an "impropriety" of rates which has become a hardship. No one else came forward to address this item. Council Member Lyden moved to close public hearing at 7:40 p.m. Council Member Bergeson seconded the motion. Motion carried with Council Member Neal abstaining from the vote due to a conflict of interest since he lives at Willow Ponds Council Member Lyden stated his property is not served by City sewer and water but he understands the importance of this decision and commended Staff for coming up with a viable option. He stated he hopes it is appreciated by the City at large. Mayor Landers stated he would feel more comfortable with lower rates for senior housing if he knew they would not increase rents to seniors anyway. Mr. Ahrens advised of the time frame for the proposed resolutions which would be in place by the first of March. He noted the rates would be retroactive to January 1, 1997 but the billing cycle does not start until March. Council Member Kuether moved to adopt Resolution No. 97 - 03. Council Member Lyden seconded the motion. Motion carried with Council Member Neal abstaining from the vote due to a conflict of interest since he lives at Willow Ponds. Resolution No. 97 - 03 can be found at the end of these minutes. Consideration of Resolution No. 97 - 04, Adopting Water and Sewer User Rates for 1997, 1998, and 1999 for Section 8 Housing Council Member Lyden requested the Council receive a legal opinion regarding this matter. Council Member Kuether moved to table consideration of Resolution No. 97 - 04. Council Member Bergeson seconded the motion. Motion carried unanimously. PAGE 8