Apartment Owner Seeks Utility Rate Cap

WAITSBURG - Keith Parkins, owner of the apartments located at 731 Preston Avenue, approached the City Council at the July meeting regarding their prior decision not to renegotiate utility rates for his building. "I can't afford to pay over 25% of my gross for water/sewer/ garbage," he said. "Especially when I'm not using it."

Parkins sold and then repossessed the property that he described as a "real dump" prior to taking back what was previously the Waitsburg Inn. He made extensive renovations, "removing druggies and stolen property," and converted the building from hotel rooms to apartments. "I probably should have negotiated about my water/sewer/garbage before I spent over $100,000 refurbishing it only to find my bill would go up 400% or more," he said.

In the case of an inn or hotel, units are not considered individual consumers and owners are charged one base rate for the building with a charge for excess usage. However, apartments, duplexes and trailer parks consist of units considered to be individual consumers, even though they may share the same meter. As such, each unit is charged a separate base rate for utilities, as well as the excess usage.

In June, Parkins sent the council a letter lobbying for reduced water rates for his property. "The city's position is that they are permanent dwellings since people live there full time. They are not used so little that it would justify the lower rate," said City Clerk Randy Hinchliffe, at the June Council meeting.

Several Council members commented on the fact that the $450 being charged for rent, which includes all utilities except power, as well as television and wifi, is unrealistically low. Councilmember Dunn also recalled that Parkins had approached the council on the same issue in the past, and they had adjusted the rates to accommodate him then. The council voted unanimously to leave the rates as-is and to send Parkins a letter in explanation.

At July's meeting, Parkins told the Council he'd received a letter "saying I should raise my rents rather than address the problem." He explained that he has no need for four garbage cans and is not using close to the amount of water he's being charged for. Parkins also said he couldn't get away with charging as much in rent as a Walla Walla rental. Parkins, who is currently renting out four of the six units he plans to have available, proposed setting a cap at the rate he is currently paying for four units.

Hinchliffe noted that the current rates apply to the trailer parks and the other six-unit apartments in town. He said the City would expect to lose "a good amount" on utility billings if those rates were changed. The Council agreed to look into the matter further and place it on the agenda for discussion at the August 20 Council meeting.