Harrington discusses changes to Hilltop apartment lease to shift electric costs and 30-day notice language

The Harrington City Commission reviewed a proposed update to the standard lease used at the city-owned Hilltop apartment complex during its July 15 meeting. The draft lease language would explicitly allow the city to change monthly rent, services provided and fees with at least 30 days’ written notice to residents.

What was proposed: staff presented a lease draft that specifies the city may change monthly rent and service fees by giving residents 30 days’ written notice. Staff said the leases in practice operate like month-to-month tenancies over time and that the 30-day notice clause is intended to provide procedural authority to adjust costs without requiring court proceedings.

Utilities and cost drivers: commissioners and staff focused on electric costs. Staff said the building currently has a single electric service and the water heaters are electric; a separate gas service to individual units is not available. Staff gave examples of high winter electric bills at Hilltop and said that treating electric as an individually billed utility would give tenants incentive to manage usage. "If someone's paying for their own electricity, they'll manage their heat and stuff better," staff said. Staff suggested rolling water and trash into rent rather than separately billing them, while noting electric appears to be the largest variable cost.

Contractual and tenant-rights questions: city legal staff and commissioners discussed whether changes would apply to current signed leases or only to new leases. Legal staff noted the draft reads as an ongoing tenancy that converts toward month-to-month and that the 30-day notice provision allows the city to make changes that take effect after notice; tenants who object could exercise termination rights under the lease. Staff warned that forcing changes without tenant agreement could trigger disputes that would require legal action if tenants refuse to pay new charges.

Occupancy and operations: staff reported nine occupied Hilltop apartments at the time of discussion and said the complex produces a mix of rental revenue plus reimbursements tied to staff positions; for 2024 Hilltop-related revenue (including rent and reimbursements) was described as approximately $111,889 but that figure was not all rental income. Staff said they will not take immediate unilateral action but will update forms and consider onboarding new leases that specify clearer term lengths to reduce ambiguity.

Next steps: staff said they will handle implementation details and that, under the draft language, the city would provide at least 30 days’ written notice of rent or fee changes; if tenants do not accept changes they may terminate per the lease. Staff recommended incorporating clearer term language into future leases to avoid legal ambiguity and to reduce the risk of contested enforcement actions.