[00:00:01]
[Call to Order]
IT IS 8:30 AM.I'D LIKE TO OFFICIALLY CALL THE WORKSHOP FOR CITY COUNCIL DURING GALVESTON FOR JUNE 23RD TO ORDER.
STAFF THANK YOU FOR BEING HERE.
WE HAVE AN INTERVIEWEE COMING UP.
KIMBERLY, THANK YOU FOR BEING HERE.
COUNCIL, GLAD TO HAVE YOU HERE THIS MORNING AND FOR THOSE THAT ARE WATCHING IN THE COMMUNITY, WE'RE SO GLAD TO HAVE YOU WITH US THIS MORNING.
WE DO HAVE A QUORUM THOUGH, BUT JENELI COULD YOU DO A ROLL CALL PLEASE.
>> VERY GOOD. BEFORE WE START, COUNCIL, JUST SOME THINGS TO MENTION.
DON WILL NOT BE WITH US TODAY.
I THINK HE'S GOING TO BE WITH US VIRTUALLY AS WE MOVE INTO SOME THINGS HERE, BUT HE WILL NOT BE IN-PERSON WITH US TODAY.
ALSO, WE'RE STARTING OUR MEETING AS WE KNOW AT 8:30, IT IS ON THE AGENDA FOR US TO MOVE STRAIGHT ON THROUGH INTO OUR OTHER BUSINESS.
AS SOON AS WE FINISH OUR INTERVIEWS, WE'LL BE MOVING STRAIGHT ON INTO OUR OTHER WORKSHOP BUSINESS.
WE DO NOT NEED TO STOP AND WAIT FOR 9 AM.
[3. INTERVIEW APPLICANTS FOR THE PARK BOARD OF TRUSTEES]
[*A portion of this video is without audio*]
INTERVIEW OR APPLICANTS FOR THE PARK BOARD.KIMBERLY, IF YOU'LL COME FORWARD, PLEASE MA'AM, AND JUST HAVE A SIT THERE.
>> THANK YOU. THANK YOU ALL FOR ALLOWING ME TO COME IN AND THIS A WEEK LATER AND YOU'RE TRYING TO DO THIS AND ADJUST MY SCHEDULE.
IF UNFORESEEN, I HAD THAT PLAN AND WASN'T ABLE TO MAKE IT.
BUT THANK YOU FOR YOUR TIME TODAY.
>> YOU'RE WELCOME. TO GIVE YOU A LAY OF THE LAND KIMBERLY, OF COURSE WE DID OUR OTHER INTERVIEWS LAST WEEK.
WHAT COUNCIL WILL DO ONCE WE FINISH OUR INTERVIEW WITH YOURSELF TODAY, LATER TODAY, COUNCIL WILL RANK ALL THE APPLICANTS.
WE HAVE 13 APPLICANTS FOR OUR BOARD.
THEY WILL RANK THEM IN ORDER OF PREFERENCE AND THEN THEY HAVE TO TURN THOSE INTO THE CITY SECRETARY.
SHE COLLECTS AND PUTS ALL THE RANKINGS TOGETHER AND THEN THEY COME OUT AND ADD OUR MEETING THIS AFTERNOON AT 5 PM.
LATER IN OUR AGENDA, BASED ON THE RANKINGS, I WILL NOMINATE THOSE INDIVIDUALS THAT ARE RANK 1, 2, 3 AND SO FORTH.
>> COUNCIL DOES NOT HAVE TO APPROVE THE INDIVIDUALS THAT COME IN IN THAT SEQUENCE OF ORDER OF THE RANKINGS.
BUT THAT'S THE WAY WE CAN START NOMINATIONS IF WE MOVE FORWARD WITH THE APPLICANTS.
WE'LL DO GIVE YOU A COUPLE OF MINUTES FOR AN INTRODUCTION AND THEN WE'RE GOING TO OPEN IT UP TO THE COUNCIL TO WRITE IT IN.
>> THAT SOUNDS GOOD. THANK YOU.
I'M A FOURTH GENERATION GALVESTONIAN.
I'M A RESIDENTS OF THE ISLAND AND A HOMEOWNER.
FOR ABOUT THE FIRST 30 YEARS OF MY LIFE, I WORKED WITH MY FAMILY N THE RESTAURANT IN THE HOSPITALITY BUSINESS HERE ON THE ISLAND WHERE I DEVELOPED MANY SKILLS IN THE CUSTOMER SERVICE BUSINESS, WORKING WITH NOT ONLY LOCAL CUSTOMERS THAT WERE COMING IN TO VISIT US, WHETHER IT'D BE IN THE HOTEL OR THE RESTAURANT BUT ALSO MANY TOURISTS.
AS YOU KNOW, THAT WAS OUR BREAD AND BUTTER AND HAS CONTINUED TO BE THAT FOR GENERATIONS.
IT WAS ALWAYS INSTILLED IN US IN MY FAMILY THAT YOU GIVE ONE CHANCE TO IMPRESS THAT CUSTOMER.
THEY'RE COMING IN WITH AN EXPECTATION AND YOU HAVE ONE SHOT AT MAKING THAT RIGHT.
IF YOU MESS IT UP, YOU CHANCE OF THAT CUSTOMER COMING BACK TO VISIT YOU ARE MINIMAL.
I KNOW THAT THAT SEEMS LIKE ON A SMALLER SCALE, BUT I THINK THAT APPLIES TO GALVESTON AS WELL WHEN WE DEAL WITH OUR CUSTOMERS AND NOT ONLY JUST OUR VISITORS BUT AS OUR CURRENT RESIDENTS.
CURRENTLY, MY POSITION, I SELL REAL ESTATE FOR SAND N SEA PROPERTIES.
AS YOU KNOW, IT'S BEEN A CRAZY TIME.
I SPEND A LOT OF TIME WITH CUSTOMERS BUYING AND SELLING PROPERTY HERE ON THE ISLAND.
I SEE EVERYTHING FROM FOLKS CALLING ME ON THE PHONE THAT ARE CONFUSED BY A LOT POUR QUARTER AND IS SHOULD WE BUY IN BOLIVAR.
I FEEL LIKE I'M ON THE PHONE A LOT OF TIMES
[00:05:02]
TRYING TO SELL THEM ON WHY GALVESTON IS A BETTER PLACE TO BE.GALVESTON CERTAINLY HAS A COMPLETE PACKAGE THAT BLOWS ALL THE OTHER PLACES AWAY WITH WHAT WE HAVE TO OFFER FROM INFRASTRUCTURE ALL THE WAY TO OUR ATTRACTIONS AND MEDICAL AND HISTORICAL VALUE AND MUSEUMS AND SUCH.
I HEAR EVERYTHING FROM THOSE FOLKS, WHY THEY WANT TO LEAVE THE ISLAND, WHY THEY WANT TO MOVE TO THE ISLAND.
MOST OF THOSE PEOPLE START OUT AS TOURIST.
THEY COME HERE ON VACATION FOR YEARS AND YEARS AND THEY FINALLY DECIDE HEY WE WANT TO RETIRE IN GALVESTON.
WE WANT TO BUILD THE HOME IN GALVESTON, WE WANT TO RESIDE THERE.
ON THE OTHER SIDE OF THAT COIN, I HAVE PEOPLE THAT WANT TO LEAVE.
BUT I WILL TELL YOU THIS, I'VE NEVER HAD SOMEONE CALL ME AND SAY KIMBERLY, I WANT TO LEAVE THE ISLAND BECAUSE I'M TIRED OF THE TOURISTS WHO COME IN TO VISIT US.
IT'S USUALLY, I'M LEAVING THE ISLAND BECAUSE I WANT TO BE CLOSE TO MY GRANDKIDS [LAUGHTER] THAT'S USUALLY WHAT I'M HEARING.
PULLING THAT ALL TOGETHER, MY CUSTOMER SERVICE SKILLS WHAT I'VE SEEN BY LIVING ON THIS ISLAND FOR ALL YOUR 55 YEARS, I FEEL LIKE I BRING SKILL INTO PART BOARD THAT WOULD HELP ENHANCE NOT ONLY WHAT WE'RE TRYING TO GET BACK TO OUR TOURISM INDUSTRY AND TO OUR LOCALS.
>> THANK YOU VERY MUCH. APPRECIATE IT.
THAT'S A STAR FOR QUESTIONS FOR MS. GAIDO.
DAVID, PROBABLY HAVE A STARTED.
>> THANK YOU FOR BEING HERE. I HEARD YOU HAD SOME SUCCESS IN FLORIDA WITH THE FISHING.
>> I DID. [LAUGHTER] IT'S TOUGH.
>> THERE ARE A COUPLE OF CONCERNS I HAVE WITH INVOLVING YOU TO DO THE ART BOARD.
I'M A BIG PROPONENT OF CITIZENS STAFFING OR BOARD.
IS NOT SPECIAL INTERESTS, IT'S NOT ALWAYS THE SAME PEOPLE THAT WE SEE ALL THE TIME AS FAR AS I KNOW, YOU'VE NOT BEEN A LOT OF TIME ON CITY COMMITTEES OR COMMISSIONERS OR THAT THING.
WE REALLY APPRECIATE YOU'RE APPLYING, BUT WE ALWAYS LIKE TO EXPAND THAT POOL.
ANOTHER THING WE WANT MORE DIVERSITY.
MORE PEOPLE DON'T LOOK LIKE ME [LAUGHTER] FRANKLY UP THE PORT.
ONE OF THE PEOPLE WHO ARE LOOSING OF COURSE, IS [INAUDIBLE] WHOM I'M SURE YOU KNOW.
MARIO HAS BEEN A REAL GEM IN HELPING [INAUDIBLE] [NOISE] THE THINGS THAT CONCERN ME MOST IS I THINK ABOUT TO GO INTO A DIFFERENT ERA OF COOPERATION BETWEEN DEPARTMENTS.
[NOISE] IMPORTANT TO ME THAT YOU UNDERSTAND THAT MUCH OF WHAT DEPARTMENT BOARD DOES IS MANAGE CITY-OWNED ASSETS, THE BEACH ASSETS AND THE PARK ASSETS.
IT'S VERY IMPORTANT THAT WE WERE ABLE TO GIVE DIRECTION TO THE PARK BOARD ON HOW THESE THINGS SHOULD BE DEVELOPED.
OTHER THINGS THAT I KNOW ARE VERY CONCERNING TO MOST PEOPLE IS THE BALANCE BETWEEN TOURISM AND RESIDENTS.
WHEN WE HAVE MORE THAN 7 MILLION VISITS A YEAR, IT CAN SEEM OVERWHELMING.
IT CAN SEEM LIKE PARK BOARD DOES NOTHING BUT ATTEND TO THE NEEDS OF THE TOURISTS. THAT IS THEIR JOB.
BUT WE WANT TO SEE MORE OF A BALANCE THERE.
YOU LIVE IN THE WEST END AS I UNDERSTAND THAT.
YOU'RE IN THE REAL ESTATE BUSINESS, SO YOU PROBABLY HAVE SOME THOUGHT ABOUT THE BALANCE BETWEEN NATURE AND DEVELOPMENT, WHERE THE CITY IS.
IT IS ALWAYS LOOKING TO EXPAND THE BUILDING.
IT'S GOOD FOR THE BOTTOM LINE.
BUT WE HAVE SOME GREAT NATURE ASSETS TO PROTECT OUT THERE.
I'D BE INTERESTED IN ANY OF YOUR FELLOW.
I SPENT A LOT OF TIME USING THE FACILITIES THAT WE HAVE HERE ON THE ISLAND.
I HAVE WHEREBY THIS RAISED HUNTING AND FISHING, SPENDING MOST MY TIME IN WEST BAY.
LAND IN EAST BAY IN GALVESTON AND ON THE BEACHES, WAY FISHING AS A LITTLE GIRL.
BUT I'M VERY ECO-FRIENDLY WHERE I WANT TO PROTECT THE BEACHES AND PROTECT THE MARSHLANDS.
I'M VERY BIG SUPPORTER OF THE GAUSSIAN BAY FOUNDATION AND SOME OF THOSE OTHER AREAS THAT COMPLEMENT THE PARK BOARD IN GALVESTON.
QUITE FRANKLY, I'M NOT SURE HOW MUCH MORE ROOM WE REALLY HAVE TO DEVELOP IN THE END, OUTSIDE OF WHERE WE ARE.
I KNOW THAT I TALKED VERY BRIEFLY ABOUT THE EAST END PROJECT AND WHAT IS GOING TO BE DEVELOPED THERE AND THE POTENTIAL OF DEVELOPMENT.
CERTAINLY I'M SURE THERE WERE WORKING WITH THE GLL CORPS OF ENGINEERS TO SEE WHAT IS EVEN FEASIBLE TO PUT IN THOSE AREAS THAT ARE STILL AVAILABLE.
I CERTAINLY WOULD SUPPORT THE RIGHT PROJECT IF IT WAS BENEFICIAL TO OUR FAMILIES THAT ARE COMING HERE TO VISIT
[00:10:02]
AND THERE IS ALSO THAT SIDE THAT'S BENEFICIAL TO THE FOLKS THAT LIVE HERE.CAN THE FOLKS THAT LIVE HERE TAKE ADVANTAGE OF THAT ATTRACTION OR THAT BUILD OUT WHATEVER IT WOULD BE? I DON'T SEE A WHOLE LOT GOING IN ON THE WESTERN.
I SEE MORE THINGS MOVING TO THE EAST.
I MIGHT BE WRONG ABOUT THIS, BUT I THINK WE'RE MARKETING THOSE BEACHES TO THE EAST AND WHAT WE CAN BRING TO THAT SIDE OF THE ISLAND.
I'M NOT TOO SURE OF THAT COMPLETELY ANSWERS YOUR QUESTION, BUT I THINK THE COUNCIL IN THE PARK WOULD HAVE TO WORK HAND IN HAND AND IT IS A COLLABORATION.
YOU MENTIONED THAT WORD BALANCE.
I DEFINITELY THINK YEARS AGO AND IF I'M GETTING OFF ON A RABBIT TRAIL, YOU ALL STOP ME [LAUGHTER].
BUT I THINK YEARS AGO, TOURISM IN GALVESTON WAS FROM MEMORIAL DAY TO LABOR DAY.
I WAS THERE WHERE GUNS BLAZING, WE'RE READY TO GO FROM THOSE THAT DURING THAT TIME, THAT'S CHANGED.
OUR TOURIST SEASON IT'S IN JANUARY TO DECEMBER, AND WE'RE HAVING WARMER WINTERS AND MORE PEOPLE ARE COMING.
CERTAINLY GALVESTON IS OFFERING MORE OF A FAMILY EXPERIENCE.
THIS STATES EVEN BEFORE HIKE, A LOT OF YOU SAY, WELL THINGS CHANGED OR AN HIKE BUT I THINK WE STARTED TO CHANGE BEFORE THAT.
I THINK GALVESTON LOGOS ARE EMBRACING THE BENEFITS OF TOURISM.
I KNOW THAT YOU PROBABLY DON'T ALWAYS HEAR THAT IN THE CITY OF COUNCIL ROME [LAUGHTER].
I THINK FOR THE MAJORITY OF FOLKS THAT IS, WE'RE ALWAYS BACK WHEN I WAS GROWING UP.
YOU ALWAYS HAD, FOR EXAMPLE, WE WERE CHALLENGED ALL THE TIME.
BUT I THINK THE LOCALS NOW HAVE, ARE EMBRACING THIS.
BUT CITY COUNCIL PROBABLY HEAR A WHOLE LOT MORE OF THOSE COMPLAINTS.
WHY ARE YOU DOING MORE FOR US.
BUT YOU HAVE TO REMEMBER THE CITY COUNCIL IS ALSO RESPONDED TO A LOT OF THOSE THINGS AND MAKE CHANGES AND REROUTING TRAFFIC.
BUT ALSO IT TAKES A LITTLE BIT FROM US AS ISLANDERS ARE GALLSTONIANS TO MAKE ADJUSTMENTS WELL.
>> READ THE REST OF THAT STATEMENT BECAUSE I DO THINK THAT [OVERLAPPING].
>> I APOLOGIZE. I DON'T HAVE IT WITH ME.
>> THE STATEMENT IS ABOUT THE HOW THE PARK BOARD BECAME DEVELOPED.
>> WELL, OKAY. YES, I CAN DO THAT.
>> THERE'S SOME CONFUSION ABOUT THE PARK BOARD FUNCTIONING HOW IT CAME FROM.
THE PARK BOARD WAS A CITY COUNCIL AFTER A VOTE OF THE CITIZENS AND BACK IN 1963, AND IT WAS TASKED WITH MANAGING ASSETS ASSIGNED TO IT.
IT WAS EXPANDED TO INCLUDE BEACH PATROL, THE CONVENTION AND VISITORS BUREAU, AND SAND MANAGEMENT, WHICH IS SOME SAND NOURISHMENT, SO FORTH, WHICH IS A VERY BIG PART OF IT.
>> I THINK I EXPRESSED IN YOUR RIGHT I SAY, A 50 TIMES, [LAUGHTER] [OVERLAPPING] BUT FEEL FREE TO ASK AT ALL.
BUT AGAIN, MY CONCERN IS THAT PARK BOARD UNDERSTAND THAT IT'S A FUNCTION OF THE CITY IS VENDOR OF THE CITY ESSENTIALLY, AND HAS A RESPONSIBILITY TO RESPOND TO CITY COUNCIL AND OUR GOALS AND DIRECTIONS WE SET FOR THE MANAGEMENT OF THOSE ASSETS.
>> ALSO TO ASSIST US HOW WE CAN USE.
>> THAT UTILIZE HOT TAX TO THE BENEFIT OF TOURISTS AND THE CITIZENS.
>> I COMPLETELY GRANT THINK THAT 50 PART TAKE THE WRETCHED ALL DAY LONG OR THE CITY COUNCIL BECAUSE I THINK THAT THE GOALS OVERALL ARE THE SAME.
I DON'T KNOW IF BEACH NOURISHMENT CAME UP THAT I HEARD.
MAINTAIN THE BEACHES AND BEACH NOURISHMENT IS A BIG THING.
WE HAVE TO HAVE IT TO SOME DEGREE AND GAPS AND WE ALL SEE IT.
WE KNOW WHAT'S GOING ON AT ANYTIME THAT WE CAN ENHANCE THAT, WE WANT TO.
ANY OTHER QUESTIONS NOW COUNSEL?
>> WELL, YOU COVERED THE WEST THEN, BUT MY QUESTION WAS THING REALLY I LIKE WHAT DO YOU SEE, IT'S STORED BEACH, THAT DEVELOPMENT OF STORE BEACH?
>> WE REALLY DON'T HAVE A WHOLE LOT WHEN YOU COME DOWN TO STORE BEACH, YOU COME DOWN THE BEACH, YOU COME DOWN SEE THE BROADWAY AND IT JUST DEAD ENDS.
TO REALLY AN AREA THAT TAKES YOU ALL THE WAY DOWN TO THE END OF THE SEAWALL AND I THINK IT WOULD BE NICE TO HAVE A DEVELOPMENT THERE, AN ATTRACTION THAT WILL BENEFIT THE LOCALS AND THE TOURISTS AND FAMILY MEMBERS.
CERTAINLY, WE CAN HAVE TO HAVE PARKING.
I KNOW THAT THERE HAVE BEEN SOME MODELS OUT THERE THAT SHOW
[00:15:04]
MUSIC VENUE AND GOLF CARTS AND DOG PARKS AND THOSE THINGS.BUT I DON'T KNOW IF THE STUDIES WILL SHOW THAT, THAT'S BENEFICIAL FOR US AND THEY'RE UNABLE TO MAINTAIN, I WOULD HOPE SO.
THAT WOULD BE MY GOAL FOR THAT AREA BECAUSE WE HAVE A LOT OF JUST ATTRACTIONS ALL THE WAY DOWN, BUT THAT STOPS, ALLOW THE TOURISTS WHO DON'T KNOW TO COME TO THE BEACH AND THEY COME RIGHT OFF BROADWAY AND THEN THEY COME TO MCDONALD'S AND THEN THE STOP SIGN [LAUGHTER].
I N THE LIGHT WHERE DO WE GO NOW? WE CAN GO TO ROUTE B OR WE CAN HEAD ON DOWN THE BEACH.
I THINK THAT WOULDN'T BE A DEFINITE PLACE.
[NOISE] BEEN A LOT OF TALK ABOUT THE USS TEXAS, AND I KNOW THAT'S A NEAR AND DEAR TO THE GAIDO FAMILY GUARD.
SO THERE HAD BEEN TALK ABOUT MOVING INTO POSSIBLY TO SEE WOLF PARK.
[00:28:21]
ALL RIGHT.[00:28:23]
[BACKGROUND] [NOISE]>> ALL RIGHT, EVERYTHING'S WORKING NOW HOPE?
>> VERY GOOD. WE'RE BACK ONLINE TO THE COMMUNITY.
SORRY ABOUT WE HAD THE DELAY HERE.
WE HAD SOME TECHNICAL DIFFICULTIES AND WE'RE BACK ONLINE AUDIO AND VIDEO.
[4.A. Clarification Of Consent And Regular City Council Agenda Items - This Is An Opportunity For City Council To Ask Questions Of Staff On Consent And Regular Agenda Items (20 Minutes)]
WE'RE PICKING BACK UP WITH OUR CLARIFICATION.IF YOU'RE FOLLOWING THE AGENDA IT'S ITEM FOUR, CLARIFICATION OF CONSENT, AND REGULAR CITY-COUNTY COUNCIL AGENDA ITEMS. COUNCILMAN BOUVIER, GO RIGHT AHEAD SIR.
>> I DON'T HAVE ANY I'M SORRY.
I DON'T HAVE ANYTHING LIKE THAT.
>> NO QUESTIONS ON THE ITEMS [OVERLAPPING] [NOISE] OF THE AGENDA.
>> 10D I HAD A QUESTION ON THAT.
>> D AS IN DOG, THAT HAD TO DO WITH THE AWAKE ZONE.
[OVERLAPPING] WHAT IS THE DEFINITION OF BEACHFRONT PROPERTY?
[00:30:02]
IS THAT ANYTHING TO DO WITH OTHER HOMES AND THINGS IN THE AREA?>> [OVERLAPPING] IS DONNA ONLINE.
>> SHE'S TALKING ABOUT DONNA. [OVERLAPPING]
>> EXCUSE ME JUST A SECOND MARIE.
WHO IS ONLINE? IS DONNA ONLINE ALSO?
>> DON I DON'T THINK DONNA IS ONLINE.
>> ALRIGHT. WE'RE TALKING ABOUT ITEM 10 D, AS IN DAVID GARDNER.
>> IT'S THE Y-COORDINATE DONNA.
>> YES [INAUDIBLE] DESCRIBE THE FEATURES OF THE PROPERTY WHAT ANDREW, THE REQUEST FOR AN AREA AND IN THE RESEARCH THAT WE DID WITH THIS PIXEL PARKS AND WILDLIFE, I FELT THAT THE ORDINATE NEEDED A LITTLE BIT MORE TEETH.
THE TEXAS PARKS AND WILDLIFE, THEY'RE THE ONES [NOISE] ACTUALLY REGULATE THOSE WATERWAYS FOR US AS THEY ARE THE ONES THAT WOULD DO CITATIONS AND WHATNOT THAT ARE HANDLING THEIR BEACH PART OUT OF BOUNDS SO TO SPEAK.
IN TERMS OF DEFINING BEACH PART PROPERTY, I WOULD REFER TO BRANDON TO DO ALL THAT.
HE WANTS TO FIND THERE'S ANY OTHER QUESTIONS ON THE ORDINARY? [OVERLAPPING]
>> WE'LL GET BRANDON TO GIVE THEM THE ANSWER.
>> PART OF IT ALSO HAD TO DO WITH ADDING SPANISH GRAND BASE SIGN [OVERLAPPING] INTO THE ORDINANCE BECAUSE IF SOMEONE IS NOT OBEYING THE NO-WAKE SIGN.
THE CITY DOESN'T HAVE ADEQUATE STAFF TO BE ABLE TO PATROL THE LATTER OF PARKS AND WILDLIFE DOES.
PARKS AND WILDLIFE CAN'T FIND SOMEONE [NOISE]
>> DEPENDING ON WHAT THE BEACHFRONT PROPERTY DEFINITION IS, THIS COULD AFFECT THE WHOLE ENGLISH VOLUME THAT YOU COULD BASICALLY ONLY TRAVEL LIKE 50 METERS IN THE MIDDLE BECAUSE THEY SAY YOU HAVE TO BE 50 YARDS AWAY FROM BEACHFRONT.
THAT INCLUDES THE HOUSES AND THE BALL KITS THAT ARE RIGHT THERE, 50 YARDS OUT, AND THEN 50 YARDS TO WHERE 61ST STREET IS, THEN YOU'RE ONLY GOING TO HAVE A PATH SO FAR OFF TO OFFER THE BOAT.
>> IS THAT CONSIDERED BEACHFRONT THOUGH.
>> MAYBE BEACHFRONTS CONSIDERED ANY SHORELINE.
I'M GOING TO GET THAT CONFIRMED WITH BRANDON.
>> NO, I'M GOING TO HAVE TO TEXT HIM IMMEDIATELY AFTER THIS.
>> OKAY. WE CAN COME BACK TO THAT, MIKE BECAUSE THEY'RE GOING TO GET THAT DEFINITION FOR YOU.
>> I'LL ALSO SAY THAT THESE AREAS WILL HAVE TO BE MARKED.
THE ANY AREAS THAT ARE MARKED, PROTECT THE BIRTH OF THE WILDLIFE TO BE ABLE TO RAISE IN.
IN THE RESEARCH THAT WE DID, WE LOOKED AT THE WATERWAY THROUGHOUT THE CITY.
WE FELT THAT THAT 50 YARDS WOULD BE ADDED TO THE AREAS THAT WERE NEAR TO THE ADDRESS OF THE CITY.
BUT AGAIN I WOULD REFER TO BRANDON, TO BE QUICK OR MODIFY.
>> DONNA, WHO IS IN CHARGE OF MARKING THOSE AREAS, AND DO WE HAVE A PROCESS FOR THAT?
>> I BELIEVE THAT IN THE CASE OF SPANISH GRANT THEY'RE GOING TO PROVIDE THE BUOYS AND WE'LL SEND THEM.
>> CAN PEOPLE APPLY FOR THAT PROCESS OR CAN I JUST GO THROW OUT A BUOYS?
>> NO, TYPICALLY WE SET FACILITIES. THE CITY DOES.
>> TYPICALLY IT'S ONLY IN CANAL.
>> WHY DIDN'T TYPICALLY, I MEAN, THAT MIGHT BE THE FAIR CASE, BUT PROBABLY LIKE SOMETHING IN WRITING THAT, THERE'S A PROCESS THAT YOU HAVE TO GO TO THROUGH TO MAKE THAT HAPPEN.
>> CORRECT. WE'VE ONLY DONE IT FOR ONE NEIGHBORHOOD SO FAR, WHICH IS HARMFUL FEE.
>> ONE OF THE NEIGHBORHOODS DO IT LIKE PIRATES.
BUT THEY DO IT THEY'RESELVES LIKE MADELINE SAID, "HE DOES IT."
[00:35:07]
>> WELL, I THINK THAT'S WHERE WE GET INTO PROBLEMS. IF SOMEBODY ELSE DOES IT, WHO'S DOING IT? WHO PUT THE BUOYS OUT THERE? IS IT REALLY ENFORCEABLE? ALL THOSE.
>> IT'S ONLY ENFORCEABLE IF IT'S IN THE ORDINANCE, CORRECT.
>> THERE ARE SOME STATE REGULATIONS TOO, THAT GOES INTO, YOU'RE RESPONSIBLE FOR YOUR OWN WAKE AND THE DAMAGE THAT IT CAUSED.
>> BUT PROVING THAT THAT BOAT CAUSED DAMAGE TO YOURS IS ALWAYS A PROBLEM, SO ENFORCING IT IS WE TYPICALLY DO AN ORDINANCE.
NOW, IF THERE'S A CANAL THAT SOMEBODY DROPS BUOYS IN AND WE HAVEN'T CHANGED OUR ORDINANCE AND IT'S NOT ENFORCEABLE.
>> BUT I DON'T WANT TO GET TO THE POINT WHERE SOMEBODY IF WE HAD THIS ORDINANCE IN PLACE AND THEN SOMEBODY GOES THROWS A BUOY OUT THERE.
THEY SAY, "HEY, THAT'S ENFORCEABLE, THERE'S BUOY THERE." JUST BECAUSE THEY DIDN'T WANT TO KNOW WHITE ZONE.
THERE NEEDS TO BE A PROCESS AND SOMEBODY NEEDS TO BE RESPONSIBLE.
>> WELL, THEY HAD SOMEBODY THEY HAVE TO BE PART OF THAT TO BE PART OF THE ORDINANCE.
>> [OVERLAPPING] EVERYTHING IS INCLUDED IN THIS ORDINANCE ANY BEACHFRONT. [OVERLAPPING].
>> DONNA, IS THAT IT'S NOT SPECIFIC TO THAT ONE CANAL OR IS THIS FOR EVERY WATERFRONT?
>> IT'S SPECIFIC TO WHATEVER AREA THE CITY DECIDES TO MARK OR IS MARKED.
>> GAME PARKS AND WILDLIFE WILL NOT REGULATE ANYTHING THAT'S NOT MARKED.
>> IT'S UNCLEAR AS TO WHETHER THE CITY TO GO AND MARKING, WHETHER IN CONJUNCTION WITH THE NEIGHBORHOOD.
[NOISE] AGAIN, WE CAN MODIFY A SIMPLE PLOT, IT CAN BE DEFERRED WITHOUT AN ISSUE UNTIL THOSE QUESTIONS ARE ANSWERED.
HERE'S A GOOD QUESTION THAT NO ONE HAD ASKED BEFORE, IT WAS VERY GOOD TO HEAR THIS AND I'M TAKING NOTE.
>> WELL, THERE ARE A NUMBER OF PLACES WHERE ORDINANCES APPLY TO AREAS WE SPECIFICALLY DELINEATE A, B, C, D IN ORDINANCES.
I THINK IT'D BE BEST IF WE DID IT THE SAME WAY HERE, AND JUST SAY, IT CAN BE ANY WATERWAY.
BUT THE ONES WE ENFORCE, THE ONES WE MARK ARE THE ONES LISTED IN THIS ORDINANCE AND IF A NEW ONE NEEDS TO BE ADDED, WE MODIFY THE ORDINANCE TO ADD IT.
THAT'S HOW WE DO NO PARKING, IT'S HOW WE DO [INAUDIBLE].
>> THERE DEFINITELY IS SOME CLARITY.
I DON'T KNOW IF CHANGING THE ORDINANCE EACH TIME THAT SOMEBODY WANTS TO ADD A NO WAIT ZONE TO THEIR AREA, WE NEED TO GO THROUGH THAT PROCESS.
>> BUT THAT'S WHAT WE DO, LIKE NO PARKING THE TWO ARE OUR PARKING ZONES.
THEY ARE SPECIFICALLY DELAYED AND ADDED RIGHT AT THE BOTTOM OF THAT ORDINANCE.
>> MY REQUEST CAME FROM JOE'S SPANISH GREEN BASE SIDE, ALL THIS OTHER STUFF I WASN'T AWARE OF.
>> IF WE DON'T THINK WE'RE GOING TO BE SEEING THESE REGULARLY, THAT'S FINE.
WE DON'T SEE [LAUGHTER] PARKING CHANGES VERY OFTEN.
IF THIS IS SOMETHING WHERE JOE'S SPANISH GREEN IS GOING TO WANT THIS AND WE MIGHT NOT SEE [OVERLAPPING]
>> THE REALITY OF THIS IS TEXAS PARKS AND WILDLIFE IS NOT GOING TO BE OUT THERE ACTIVELY ENFORCING THESE THINGS.
THERE'S REPEATED COMPLAINTS ABOUT IT, THEY MIGHT SEND A BOAT UP, BUT THEY DON'T HAVE ANY MORE RESOURCES THAN WE NEED.
>> WHERE WE SEE THEM ACTUALLY MORE REGULAR [INAUDIBLE] [NOISE].
>> EXCUSE ME JOHN SO I FOLLOW YOUR QUESTION.
AM I UNDERSTANDING CORRECTLY? WE HAVE DELINEATED IN THE ORDINANCE THOSE AREAS THAT WE ENFORCED.
>> NO. NOT UNDER THIS CHANGE HERE.
WE JUST BLANKET IT IN FOR EVERYBODY, IT SOUNDS LIKE, BUT IT'S ONLY WHERE MARKED.
>> MY CONCERN HERE IS IF I'M A HOMEOWNER AND I LIVE ON THE WATER AND I DON'T WANT SOMEBODY TO DRIVE A BOAT IN FRONT OF MY HOUSE AND CAUSE AWAKE, I'LL JUST THROW [INAUDIBLE] OUT THERE.
>> AND I AM IN COMPLIANCE [NOISE] OF THE ORDINANCE AND IT SHOULD BE ENFORCED.
>> YEAH. I THINK DONALD, WE PROBABLY NEED TO DO THIS SPECIFICALLY FOR CERTAIN AREAS.
>> YEAH. MAYBE DIFFER THIS INTO THE NEXT MEETING, BECAUSE I HAVE ANOTHER QUESTION BECAUSE THIS WAS AN ISSUE THAT HAPPENED, I THINK WAS IN SYRIA.
>> IS IT RELATED TO THIS, MARY, THE QUESTION?
>> NO. IT HAS TO DO WITH [INAUDIBLE] [LAUGHTER] [OVERLAPPING].
>> IT WAS TWO KIDS ON [INAUDIBLE] CREATING A HUGE WAY, SO DENSE THAT COUNT?
>> YEAH. [OVERLAPPING] IF YOU'RE MAKING A WARCRAFT.
>> OKAY. WE WILL DIFFER ON THAT ONE DONALD AND THEN WE'LL GET IT CHANGED WHEN WE GET BACK.
>> THAT IS GOING TO BE 10D, WE WILL DIFFER.
>> GOOD CATCH. ANYTHING ELSE SIR?
>> YEAH,10E, ABOUT THE PEDDLERS AND VENDORS.
[00:40:07]
>> WE'RE GOING TO GET INTO THAT IN THE WORKSHOP.
>> CAN WE GO TO THE NEXT PERSON JUST BECAUSE I LEFT MY MARK-SHEET AT HOME, SO ARRANGE THE MARKING.
>> YEAH. I JUST HAVE ONE QUICK QUESTION, IT'S VERY GOOD TO MOST OF MY STUFF ON THE WORKSHOP.
[NOISE] FOR 11 DAYS AT SISTER CITY, WHAT'S THE PROCESS FOR BECOMING A SISTER CITY, THE CITY [INAUDIBLE].
>>THEY ARE APPROVED BY COUNCIL.
>> USUALLY THE CRITERIA FOR BECOMING A SISTER CITY IS WE HAVE THINGS IN COMMON WITH THE OTHER CITY.
FOR INSTANCE, BEING A PORT CITY AND SO FORTH, WE LOOK FOR SIMILARITIES.
THE CITY OF GALVESTON DOES NOT SEEK OUT ANY SISTER CITIES, BUT WE HAVE RECEIVED SOME REQUESTS FROM OTHER CITIES TO BECOME A SISTER CITY.
>> I'M SORRY, IF A RESIDENT WANTS TO BRING UP ANY PLACE THAT THEY CAN FIND SIMILARITIES AND THINGS LIKE THAT, WHAT'S THE PROCESS OF THEM BRINGING IT TO COUNCIL?
>> THEN THEY WOULD GO TO, THIS SISTER CITIES COMMITTEE, THIS IS THE SISTER CITIES COMMITTEE WILL DISCUSS, RESEARCH, MAKE A RECOMMENDATION TO COUNCIL, AND THEN THE COMMITTEE WOULD BRING IT FORWARD TO COUNCIL.
>> VERY GOOD. WAYNE, ANYTHING ELSE?
>> YEAH, I'M GOING TO TALK ABOUT 10A.
ARE WE DISCUSSING THAT SEPARATELY AFTER ALL? [OVERLAPPING]
>> WELL, CAN WE TALK ABOUT THAT AND THIS IS THE NORMAL PROPERTY TAX EXEMPTION ACCEPTANCE, BUT WE'RE ALSO ADDING THE OVERALL EXEMPTION, THE CHANGE.
>> IT HAPPENS EVERY DAY AND YOU HAVE THE OPTION TO CHANGE SEVERAL OF THEM AS MATTER OF FACT AND NOT JUST THIS ONE, BUT WE'RE BRINGING THIS ONE FORWARD TO YOU AT THIS TIME.
>> OKAY. TO CHANGE THAT MINIMUM EXEMPTION?
>> I'M NOT LOOKING AT IT, WHAT IS IT? WE'RE GOING FROM 5,000-60, THAT'S THE MAX.
>> BUT 60 IS WHAT YOU'VE RECOMMENDED, BECAUSE THAT AFFECTS SOMETHING ON THE ORDER OF [INAUDIBLE] HOUSEHOLDS.
>> IT AFFECTS THREE FOURTHS OF THE HOMESTEADERS.
>> DO YOU THINK THAT'S UNDER $300,000?
>> WE SHOULD AGREE ON $300,000.
>> IT IS. IT ONLY AFFECTS HOUSES THAT ARE UNDER $300,000 OR LESS.
ANYTHING OVER $300,000 YOU WON'T SEE ANY CHANGE.
>> YOU STATED IN A HOMESTEAD EXEMPTION, BUT THIS BASICALLY FOR THE MAJORITY OF THE HOMES IN GALVESTON, IT HELPS THEM. [OVERLAPPING]
>> IF THE 20 PERCENT EXEMPTION IS GREATER THAN 60,000 THEN THEY GET NO BENEFITS.
>> NO ADDITION OR OTHER BENEFITS. [OVERLAPPING]
>> I HAVEN'T GOT A PROTEST. I'M GOOD WITH THAT.
>> WELL, MIKE, I HAD A QUESTION.
I NOTICED I DON'T HAVE IT IN FRONT OF ME.
IF WE APPROVE THIS, IT'S 438,000.
>> WELL, IT'S REVENUE-NEUTRAL.
IT WOULD BE THAT AMOUNT IF WHEN YOU SET THE TAX RATE IN SEPTEMBER, YOU DECIDE TO CUT THE TAX ROLL BY THAT AMOUNT.
BUT THIS, IN ESSENCE, IS A REDISTRIBUTIVE EXEMPTION.
THE $488,000 IS ABOUT ONE PERCENT OF THE TOTAL TAX ROLL, SO YOU CAN FINANCE IT AND STILL ACHIEVE YOUR THREE-AND-A-HALF PERCENT REVENUE GROWTH IF YOU SO DESIRE, AND THAT DOESN'T HAVE TO BE DECIDED UNTIL SEPTEMBER.
>> OKAY. THAT WAS MY OTHER QUESTION, HOW THAT IMPACTS THIS THREE-AND-A-HALF PERCENT. [OVERLAPPING]
>> WHAT'S THE TOTAL AMOUNT DOLLAR-WISE THAT WILL BE REDISTRIBUTED.
>> FOUR HUNDRED AND EIGHTY-EIGHT THOUSAND.
>> AGAIN, THAT'S BASED ON THIS YEAR'S TAX ROLL AND NOT THE NEW TAX ROLL.
IT'S LIKE WE GOT A BIT OF A CATCH-22.
YOU HAVE TO VOTE THESE EXEMPTIONS BEFORE YOU KNOW WHAT THE EXACT IMPACT IS GOING TO BE ON THE '22 TAX ROLE AS THEY'RE PREPARING NOW.
>> THAT'S IF YOU AVERAGE IT. THE LESS VALUE OF THE HOUSE, THE BIGGER THE DOLLAR. [OVERLAPPING]
>> IF WE PASS THIS, MY OTHER PROPERTIES THAT DON'T FALL WITHIN THIS HOMESTEAD, THEIRS WILL GO UP?
>> NO. [OVERLAPPING] THERE'S NO CHANGE.
[00:45:02]
>> THEIR HOMESTEADERS WOULDN'T SEE A CHANGE.
>> IT WOULD DEPEND ON THE DECISIONS YOU MAKE REGARDING YOUR TAX RATE [OVERLAPPING]
>> [OVERLAPPING] AND WHETHER THEIR VALUE WENT UP.
>> IT CAN BE A REVENUE-NEUTRAL THIS ACTION AND IT CANNOT.
WHEN YOU GO SET THE TAX RATE, YOU MIGHT ASK ME WHAT WOULD THE TAX RATE BE TO AVOID INCREASING ANYBODY ELSE'S TAXES TO DELIVER THIS ADDITIONAL EXEMPTION AND I COULD GIVE YOU THAT NUMBER.
BUT I WOULD LEAVE YOU WITH THE THOUGHT THAT THESE EXEMPTIONS GET APPLIED TO PROTECT CERTAIN GROUPS IN ANY EVENT WHO ARE ALREADY ENGAGED IN SOME REDISTRIBUTIVE TAX POLICY HERE.
WHEN YOU REDISTRIBUTE THIS $489,000, THAT WOULD GO ACROSS THE BOARD, BUSINESS OWNERS, HOMEOWNERS [OVERLAPPING]
>> IT WOULD JUST BE DISTRIBUTED TO [OVERLAPPING]
>> WHEN YOU TALK ABOUT THE DISTRIBUTION OF THE DIFFERENTIAL, [OVERLAPPING] THAT GETS SPREAD UPON THE WHOLE TAX ROLL.
>> WELL, THAT WAS OUR QUESTION.
>> A PERSON WHO CAN'T TAKE ADVANTAGE OF THIS INCREASE WILL SEE AN INCREASE [NOISE] OR COULD SEE AN INCREASE [OVERLAPPING]
>> I MEAN, WE'RE NOT TALKING ABOUT MUCH BUT [OVERLAPPING]
>> OKAY. THAT WAS MY QUESTION.
EVEN THOUGH IT'S A SMALL AMOUNT, THESE OTHER PROPERTY OWNERS COULD SEE [OVERLAPPING]
>> BUT THE DIFFERENCE GOES TO YOUR HOMESTEAD AND HOMEOWNERS.
>> WHICH IS ONE OF THE THINGS WE HEARD VERY LOUDLY IN YOUR INDIVIDUAL MEETINGS IS THAT WE WANTED TO BENEFIT THE HOMEOWNERS OF GALVESTON, THE RESIDENTS, THE HOMESTEADER PEOPLE WHO LIVE HERE AND VOTE HERE, AND THIS IS ONE WAY THAT WE CAN DO THAT.
>> NO, I'VE BEEN [OVERLAPPING]
>> WHICH IS THE MAJORITY OF OUR HOUSES.
>> THAT'S WHAT YOU WANTED TO KNOW.
>> ANY OTHER QUESTIONS ON THIS 10A?
>> THAT'S ABOUT 9,700 HOUSES? THAT'S WHAT THIS NUMBER IS HERE, NUMBER FROM TEXAS?
>> MIKE, YOU WOULD HAVE SOME NUMBERS ON HOW MUCH THAT WOULD POTENTIALLY INCREASE?
>> WHAT SHOULD WE JUST SET OUR TAX RATE?
>> WOULD INCREASE THE [NOISE] I DIDN'T PICK THAT UP OFF THE BAT, I'M SORRY.
>> THE NET EFFECT OF INCREASING THE MINIMUM EXEMPTION TO 60,000 USING 2021 TAX ROLL NUMBERS IS 486,880.
>> RIGHT. I WAS JUST LOOKING AT AN INDIVIDUAL PROPERTY OWNER AVERAGE.
>> OWNER OF A $100,000 ASSESSED VALUE HOME IS GOING TO SEE A 50 PERCENT REDUCTION IN THEIR TAXES?
>> NO, I'M TALKING ABOUT THE INCREASE THAT THESE OTHER PROPERTIES MIGHT ASSUME.
>> IT WOULD DEPEND ON THEIR VALUE, CRAIG, AND LOOK AT [OVERLAPPING]
>> THE AVERAGE IS $18 PER HOUSEHOLD OR SOMETHING. [OVERLAPPING]
>> WELL, YOU GOT TO LOOK AT WHAT'S THE TOTAL NUMBER OF HOUSEHOLDS? I MEAN, IT'S EVERYTHING, IT'S BUSINESSES, HOMES, EVERYTHING.
>> WE'VE GOT ABOUT 23,000 SINGLE-FAMILY UNITS AND 9,700 HOMESTEADS. [OVERLAPPING]
>> SO IT'S A VERY, VERY SMALL [OVERLAPPING]
>> THAT'S NOT TAKING INTO A CATCH OF COMMERCIAL PROPERTIES AND THIS GETS DISTRIBUTED AMONGST THEM TOO.
>> WELL, I WOULD SAY THAT WHILE THE DIFFERENCE IS SMALL, THIS IS ACTUALLY A SLIGHT MOVEMENT IN THE DIRECTION OF AFFORDABILITY FOR LOWER-INCOME PRETTY MUCH [NOISE].
>> THE LOWER YOU ARE ON THE TAX SCALE, THE MORE YOU BENEFIT BY THIS.
>> I SEE A LOOK ON JOHN'S FACE.
>> IF YOU WERE DISABLED OR TAKEN TO THE BEDROOM, YOU'D STILL LIMIT IT TO THE 300,000?
>> RIGHT. BUT YOU GET THE ADDITIONAL EXEMPTION FOR YOUR CATEGORY OF PROTECTED TAXPAYER IN ADDITION TO THE HOMESTEADING.
>> THEN IF YOU'RE A HOMESTEADER AND YOU'RE OVER 65 [OVERLAPPING]
>> WELL, YOU'RE FROZEN AT THAT POINT.
>> YOU CAN GO DOWN, BUT YOU CAN'T GO UP.
>> THE DISABLED TAXPAYERS WERE FROZEN AS WELL.
THE FREEZE APPLIES TO THEM TOO.
>> IF YOU'RE LIVING IN A $100,000 HOUSE, DISABLED, HOMESTEADED, YOU'RE GOING TO SEE A 50 PERCENT DECREASE AND IT WILL NEVER GO UP FROM THAT.
>> THE TAX BENEFIT WITH THE $60,000 MINIMUM EXEMPTION IS ACTUALLY REDUCED
[00:50:02]
BY $413,000 GIVEN THESE NUMBERS BECAUSE OF THE FREEZE INCLUDING PEOPLE WHO ALREADY GOT THE FREEZE AND IT'S SET AT A CERTAIN LEVEL THIS [OVERLAPPING]>> CAN YOU REPEAT TO ME, AND I'M TRYING TO FULLY UNDERSTAND THIS, HOW IT IS DISTRIBUTED AMONGST ALL THE OTHER TAXPAYERS AGAIN?
>> WELL, RIGHT NOW ALL YOU'RE DOING IS DETERMINING WHETHER OR [NOISE] NOT THIS SHOULD BE ESTABLISHED AS THE MINIMAL EXEMPTION FOR HOMESTEADS RELATIVE TO ANYTHING ELSE.
WHEN THE TAX ROLL COMES BACK FROM THE APPRAISAL DISTRICT [OVERLAPPING]
>> WHAT'S THEIR ESTIMATED TIMELINE ON THAT?
>> WE USUALLY GET A CERTIFIED ROLL INTO JULY
>> YEAH. THEY HAVE TO KNOW THIS SO THEY CAN GIVE YOU THE ROLLBACK WITH THE TAXABLE VALUE THAT WOULD RECOGNIZE THESE EXEMPTIONS.
>> SO THEN HOUSES OVER 300,000 WOULD NO LONGER HAVE THAT A HOMESTEAD EXEMPTION? [OVERLAPPING]
>> NO, THEY'D HAVE WHAT THEY HAVE NOW.
>> [OVERLAPPING] THIS WON'T BE EFFECTIVELY. YOU CURRENTLY GET, WHEN YOU HAVE A HOMESTEADED SESSION, YOU CAN EITHER GET 20 PERCENT REDUCTION OR A DOLLAR AMOUNT.
[OVERLAPPING] WE'RE INCREASING AT THE 60.
IF YOU TAKE 20 PERCENT OF $300,000 OR REDUCE THAT 60 GRAND.
>> IF YOU TAKE 20 PERCENT OF A MILLION, YOU'RE NOT GOING TO GET ANYTHING.
>> I THINK IT'S THE CONCEPT IN MY MIND, WE'RE REDUCING AND I UNDERSTAND THE REASONS FOR THAT, BUT WE'RE REDISTRIBUTING THAT TO THE OTHER PROPERTY OWNERS.
>> BUT ONLY WHEN IT COMES TIME TO SET THE TAX RATE.
>> THAT THERE'S A SEPARATE VOTE.
THAT'S WHY WE'RE DISCLOSING IT AND LAYING IT OUT FOR YOUR DISCUSSION RIGHT NOW.
>> ONE OF THE THINGS, JUST TO ADD LIKE SUGGESTING YOU CALL, I DO SUGGEST EVERYONE CALL BECAUSE WHEN I WAS THERE THIS WEEK, THEY SAID IT'S BEEN VERY SLOW, AND YET I KEEP HEARING FROM PEOPLE WHO HAVEN'T GOTTEN THEIR LETTER YET, SO I THINK JUST EVERYONE CALL AND MAKE SURE THEY DIDN'T MISS A LETTER IN THE MAIL.
>> VERY SLOW. THEY'RE NOT LOOKING AT FACEBOOK AT BIDEN NEXT DOOR, ARE THEY? [OVERLAPPING]
>> WELL, THAT'S WHAT I WAS AMAZED.
TYPICALLY, LAST YEAR WHEN YOU WENT IN, YOU SAT THERE FOR AN HOUR [OVERLAPPING].
THIS TIME, I WAS CALLED TO FIVE MINUTES, AND I WAS BLESSED TO GET THE SAME LADY I HAD LAST YEAR.
BUT I SAID, "HAS IT BEEN LIKE LAST YEAR?" SHE SAID, "NO." IT'S VERY SLOW.
>> MIKE, LET ME ASK THIS, DOES THIS ITEM 10A, DOES THAT IN THE FLOW WITH THINGS HAVE TO BE APPROVED OR DISAPPROVED TO THAT?
>> IT HAS TO BE VOTED BY JUNE 30.
>> THE ANSWER TO YOUR QUESTION IS YES.
>> CRAIG, YOU'RE TALKING ABOUT PENNIES, [OVERLAPPING].
MOST OF THE REDISTRIBUTION IS GOING TO NON-HOMESTEADED PROPERTIES.
>> YEAH. NO, I UNDERSTAND COMPLETELY.
I'M JUST TRYING TO UNDERSTAND THIS CORRECTLY, SO WHEN WE GET QUESTIONS FROM THIS.
>> YOU WERE TRYING TO FIND A WAY TO GIVE A BREAK TO THE MAJORITY OF THE HOMEOWNERS IN GALVESTON.
>> THERE ARE [NOISE] TRUE HOMESTEAD RESIDENTS.
>> ANY OTHER QUESTIONS ON THIS?
>> I DO HAVE A QUESTION. WHY ON THIS SHEET HERE? YOU GOT THIS 9,700 NUMBER OF EXEMPTIONS FROM TAX YEAR '21 ROLE APRIL 2022, 9,700 HERE.
>> THAT'S THIS YEAR'S ROLE STATISTICS.
THAT ENTIRE CHART IS BASED ON TAX YEAR '21, BECAUSE THAT'S WHAT WE HAD.
>> THIS CHART IS BASED ON WHAT?
>> WHY IS THIS NUMBER DIFFERENT? WHY IS THIS TAXPAYERS AT MINIMUM EXEMPTION, 7,100?
>> THAT'S JUST A PORTION OF THE OVERALL.
OTHERWISE, YOU'VE GOT PEOPLE WITH ASSESSED VALUE OF GREATER THAN 300,000 AND HIGHER THAN A $60,000 HOMESTEAD EXEMPTION NOW, THAT MAKE UP THE DIFFERENCE BETWEEN THAT 7,174 AND THE 9,786 ON THE OTHER CHART.
>> I DON'T THINK I UNDERSTAND THAT. [OVERLAPPING]
>> WELL, YOU START OUT WITH 97 BECAUSE IT'S 9,700.
YOU HAVE 9700 HOMESTEAD PROPERTIES WE'RE TALKING ABOUT.
>> THIS EXEMPTION WOULD AFFECT 7,000 SOMETHING OF THEM.
THE DIFFERENCE IN THAT IS PEOPLE WHOSE HOMES ARE VALUED MORE THAN $300,000.
>> OKAY. THE 9,700, I UNDERSTAND THAT CORRECT.
THE 9,700 IS TOTAL HOMESTEADED HOME?
[00:55:01]
>> THEN THE OTHER NUMBER WAS 7,200, [OVERLAPPING] SO YOU GOT ABOUT 2,500 HOMES, THAT THIS WOULD NOT HELP.
>> THEN THIS [INAUDIBLE], DEPENDING ON THEIR VALUE; HOW WOULD THEIR VALUE DID LAST YEAR, THIS YEAR.
BUT THE OTHER THING IS THAT, I THINK IT'S VERY TELLING TO US, THAT THE MAJORITY OF THE HIGHER DOLLAR HOMES IN GALVESTON ARE NOT HOMESTEADED HOME.
VERY GOOD, ANY OTHER QUESTIONS ON THOSE, COUNSEL?
>> PRIMARILY, YOU'RE GOING TO BE YOUR SHORT-TERM [INAUDIBLE].[OVERLAPPING]
>> YES. 10C, I THINK THIS IS A QUESTION FOR LEGAL.
ARE WE DOING ANYTHING IN THE MODIFICATION OF THIS, OTHER THAN TRYING TO MAKE THE HOUSING FINANCE CORPORATION, PROPERTY FINANCE 40 AND THE REGIONAL AUTHORITY, TERMS, AND ELIGIBILITY THE SAME, IS THAT WHAT WE'RE DOING?
>> A MEMBER TO SERVE ON ONE BOARD MUST BE KNOWLEDGEABLE TO SERVE ON ALL THREE.
THAT'S THE EFFECT OF THE APPEARANCE.
>> BECAUSE WHILE THIS MEET TOGETHER AND HAVE CONCURRENT [NOISE] BOARDS, THEY STILL EXIST AS THREE SEPARATE INDEPENDENT CORPORATIONS.
>> THERE ARE THREE SEPARATE ENTITIES, THAT IS CORRECT.
>> DAVID WOULD ALSO PUT THIS LONG TO BRING FORWARD AS THAT WE HAVE SOME MEMBERS ON THAT RDA, THAT DEPENDING ON HOW YOU LOOK AT THIS, COULD BE TERMED LIMITED.
>> THEY MAY BE TERMINATED ON ONE BOARD BUT WOULDN'T NECESSARILY HAVE THE OTHER, BUT SO IN ORDER TO BE ELIGIBLE FOR ANY, YOU MUST BE ELIGIBLE FOR ALL.
>> I'M VISITED WITH DAWN ON THIS, AND WE WANT TO GET THIS CLEANED UP.
>> I JUST WANT TO MAKE SURE THAT'S ALL WHAT WE'RE DOING [INAUDIBLE].
>> I STILL THINK THAT WE SHOULD GO BACK, AND MAYBE THIS IS A LITTLE OFF TOPIC.
I THINK OF THIS MISTAKE MERGING THE RDA WITH THE OTHER TWO.
[OVERLAPPING] I THINK THAT I WOULD LIKE TO SEE IT ON A FUTURE AGENDA.
>> WE CAN ADDRESS THAT PROBLEM. [OVERLAPPING]
>> BUT THEN GO AHEAD WITH THAT QUESTION TOO.
>> WHETHER YOU NEED THEM ALL THREE TO BEGIN WITH.
>> WELL, [OVERLAPPING] WE'RE GETTING OFF TOPIC.
[LAUGHTER] JOHN, DID YOU HAVE A QUESTION?
>> NO, [OVERLAPPING] I JUST HAVE A QUESTION ABOUT 11P.
IT TALKS ABOUT THE LEASE AGREEMENT FOR 2,508 VAULT.
[NOISE] WHAT'S OUR OFFICE SITUATION CURRENTLY? WE'VE GOT TO REPROGRAM THIS BUILDING A BIT.
>> WE'RE REDOING THE FOURTH FLOOR HERE, SOME OF THAT WILL BE VACATED WHEN WE FINISH THE FOURTH FLOOR HERE, BUT WE STILL WON'T HAVE ENOUGH ROOM FOR EVERYBODY HERE ONCE WE DO THAT.
>> DO WE HAVE A PLAN FOR THAT IN THE FUTURE OR ARE WE GOING TO CONTINUE LEASING SPACE?
>> I THINK THE GRANTS AND HOUSING IS GOING TO MOVE IN BEFORE.
>> POSSIBLY THREE WHILE WE'RE STILL [INAUDIBLE]
>> THE GOAL IS TO HOPEFULLY GET THEM ALL OUT OF THERE, BUT WE'D HAVE TO WORK WITH THE AUDITOR ON THAT AND SEE WHAT HIS STRUGGLES ARE.
>> DOES HE NEED TO BE IN A SEPARATE BUILDING OR SOMETHING OR?
>> HE'S ASKED FOR THAT IN THE PAST, WE'LL WORKED WITH GLENN ON THAT, WHATEVER HE DESIRES.
>> YEAH BUT IF THERE'S A PLACE FOR HIM IN CITY HALL, HE'S WELCOME TO CITY HALL.[OVERLAPPING]
>> HOW LONG IS THE LEASE AGAIN OVER THERE?
>> WE'RE LOOKING AT TWO YEARS FOR THIS EXTENSION.
>> WE SHOULD HAVE FOURTH FLOOR DONE BY THAT TIME.
THEY'LL BE ANOTHER OPTION AT THAT TIME.
>> I TOO HAD THIS FILE, THAT'S A LOT OF MONEY AND ESPECIALLY LOOKING AT WE'RE DOING.
>> WELL, THE MAJORITY OF IT IS PAID FOR THROUGH THE GRANTS AND HOUSING PROGRAM.
WHICH IS PART OF THE CDBG MONEY THAT ACTUALLY PAYS THE MAJORITY OF THAT LEASE, THE ONLY LEASE THAT WE'RE ACTUALLY PAYING FOR IS THE PART THAT GLENN OCCUPIES.
>> YOU'D HAVE TO BREAK IT DOWN. [OVERLAPPING]
>> BUT 1,100 SQUARE FEET, WHAT'S BROKEN DOWN IN THE PACKING MATERIAL.
>> SEEN A QUARTER OF IT I THINK.
>> I JUST QUESTION WHY WE'RE SIGNING A TWO-YEAR LEASE.
[01:00:02]
TO ME, WE SHOULD EITHER DO A ONE-YEAR LEASE AT MAX, AND MAYBE WITH THE OPTION TO GO MONTH TO MONTH.>> THE TWO YEARS GAVE US THE TIME TO FINISH THE FOURTH FLOOR AND MAKE THOSE ADJUSTMENTS.
>> BUT DON'T WE EVEN HAVE OPEN SPACE ON THE THIRD FLOOR HERE?
>> NO, AND WE DON'T HAVE ANY OPEN SPACE OVER AT THE 30TH STREET?
>> WHERE ARE WE AT ON THE FOURTH FLOOR? [OVERLAPPING]
>> WHAT ABOUT THE BACK PART OF DAN'S OFFICE? [LAUGHTER]HE'S GOT THAT TABLE.
>> [INAUDIBLE] EVERYBODY'S OFFICE.
>> I'M SURE GLENN WOULD BE HAPPY WITH THAT, FOR SURE.
VERY GOOD. ANY OTHER QUESTIONS?
>> WELL, THE QUESTION WAS ASKED, WHERE ARE WE ON THE FOURTH FLOOR?
>> WE HAVE THE DEMO PACKAGE COMING OUT THEN RIGHT AFTER THE CO-RELATION PACKAGE WILL GO OUT.
>> LAST TIME I WAS UP THERE, LOOK DEMOED ALREADY, BUT [LAUGHTER] [OVERLAPPING].
>> I'M LITERALLY GETTING IT COMPLETELY [OVERLAPPING] [INAUDIBLE] A LOT OF PROBLEMS THAT WE HAVE UP THERE.
A LOT OF THEM IS LIFE SAFETY ISSUES. INCLUDING [INAUDIBLE]
>> WEREN'T WE STARTING THAT ON LAST YEAR'S BUDGET TOO? SEEMS LIKE.
>> WELL WE DIDN'T GET EVERYBODY MOVED OUT.
[LAUGHTER] UNTIL HALFWAY THROUGH THIS PAST YEAR OR SO.
IS THERE AN OPTION TO DO A YEAR LEASE?
>> I'M NOT SURE THAT WE'D HAVE TO GO BACK AND RENEGOTIATE THAT.
IT WAS A SEVERAL MONTH PROCESS TO NEGOTIATE THIS WITH THEM.
>> YEAH. ACTUALLY, HIS ORIGINAL NUMBERS WERE MUCH HIGHER AND WE WERE GOING TO MOVE EVERYBODY OUT TO SHEARN-MOODY PLAZA, WHICH WAS GOING TO BE CHEAPER, BUT WE RECEIVED SOME OBJECTIONS ON THAT FROM THE CITY AUDITOR.
>> WELL, AS THE COUNSEL MAY REMEMBER.
>> IT'S ALWAYS DRAINED TILL NELLIE CAME AROUND AND BEAT THAT PRICE.
>> AS COUNSEL MAY REMEMBER AT ONE POINT, GLENN'S OFFICE WAS IN THE OLD [OVERLAPPING] SOUTH CENTRAL CULTURAL CENTER OVER THERE ON THE 27TH.
HE MOVED OVER THERE, BUT YOUR INTENT IS TO BRING HIM BACK TO THE FOURTH FLOOR?
>> WELL, THIRD FLOOR PROBABLY BECAUSE WE'LL FREE UP SPACE.
RIGHT NOW OUR IT DEPARTMENT IS SPREAD ALL OVER THE ISLAND.
THEY'RE OUT AT THE PARTS BEACH BUILDING RIGHT NOW.
AS IN TODAY WHEN WE NEED HELP, THAT'S WHERE THEY'RE COMING FROM.
>> ANY OTHER QUESTIONS ON THIS COUNSEL?
>> IF WE DID COMPLETE EVERYTHING WITHIN 14 MONTHS, WE'D STILL HAVE TO CONTINUE THROUGH THAT PLACE.
IT SEEMS TO ME IF WE GOT TO DO IT TWO YEAR WE WOULD BE BETTER TO DO A ONE-YEAR WITH A MONTH TO MONTH IF YOU COULD GET HIM TO AGREE WITH THAT.
>> FOURTEEN MONTHS IS VERY OPTIMISTIC.
>> YEAH AND PLUS YOU GET INTO A MONTH TO MONTH, NEXT THING, YOU KNOW, THE RENTAL RATES GO UP AND NEXT THING YOU KNOW, HE'S BEING MOVED OUT.
IT COULD END ANY MOMENT [OVERLAPPING] RIGHT.
>> THIS IS LESS THAN SHEARN-MOODY PLAZA?
>> AN EFFECT IT WOULD COST TO MOVE THE COUNTY SOCIETY SYSTEM OVER THERE.
EVERYTHING TOTAL THIS WORKS OUT TO BE A LITTLE BETTER DEAL.
>> FOR TWO YEARS BUT IF IT WENT LONGER, MIGHT BE DIFFERENT.
>> AGAIN, OUR GOAL IS TO GET IT BACK IN THIS BUILDING.
>> HE HAD A BETTER VIEW AT SHEARN-MOODY PLAZA [OVERLAPPING]
>> I'M GOING TO ASK MY QUESTION BECAUSE PERHAPS IT'S [INAUDIBLE].
IF WE COMPLETE UP STAIRS IN A YEAR-AND-A-HALF, DO WE HAVE A WAY TO GET OUT OF THIS CONTRACT?
>> A YEAR-AND-A-HALF IS PROBABLY OPTIMISTIC TOO.
WHEN WE OCCUPY THE FOURTH FLOOR, THEN WE'LL HAVE TO DO SOME WORK ON THE THIRD FLOOR TO SORT THINGS OUT FOR GRANTS TO COME OVER TO THAT FLOOR.
>> BUT I THINK THE QUESTION THOUGH, COUNCIL MEMBER ROB.
>> RIGHT, THERE'S NO WAY TO STOP THE LEASE.
>> BUT I DON'T BELIEVE WE'RE GOING TO HAVE THAT ISSUE.
>> GIVEN THE WAY PERSONALLY HOW HARD IT IS FOR ME TO EVEN GET A DOOR.
I CAN'T BEGIN TO TELL YOU HOW LONG 14 MONTHS IS GOING TO [OVERLAPPING]
>> JOHN YOU HAD ANOTHER QUESTION?
>> WE DEFINITELY HAVE CHALLENGES IN THE CONSTRUCTION BUSINESS, BUT TWO YEARS TO REMODEL THE SPACE SEEMS LIKE A LONG TIME.
>> ALL RIGHT, ANY OTHER QUESTIONS ON THIS COUNSEL? ANY OTHER QUESTIONS JOHN?
[01:05:01]
ONE QUESTION ON THE POOL MAINTENANCE CHEMICALS.
I JUST WANTED THAT, WHAT'S THE DOLLAR AMOUNT ON THAT? COULD WE KNOW?
>> BECAUSE I LOOKED REALLY NICE.
>> [BACKGROUND] THE DOLLAR AMOUNT FOR THE FINAL COST?
>> OKAY. WE LEFT IT OPEN AS OUR BUDGET WILL ALLOW US BECAUSE CHLORINE'S GONE UP AND DELIVERY'S GONE UP AND WE GET IT BY LIQUID.
BUT WE'RE WATCHING THE BUDGET REAL CLOSELY.
ON THE ISLAND, OFF THE ISLAND AND WE'VE FOUND MAYBE GOING TO RENDER ON THE ISLAND. [BACKGROUND]
>> ON THE ISLAND, THEY CAN'T REALLY SUPPLY US AND IT'S JUST AS MUCH OR MORE.
IT WAS MORE. SO WE DID PRICE IT.
>> WHAT'S YOUR TOTAL BUDGET FOR THE CHEMICALS FOR THE POOL?
>> CHEMICALS FOR THE POOL ALWAYS ABOUT $50 OR $75,000, IN THAT RANGE.
>> WHERE ARE WE ON THE P&L FOR THAT POOL?
>> THERE'S NO PEEING [LAUGHTER] [OVERLAPPING] THERE'S NO PEE IN THE POOL.
THAT'S ALL. [LAUGHTER] [OVERLAPPING] [LAUGHTER]
>> ACTUALLY STAFFS WE'RE ALL CONSCIENTIOUS ABOUT IT AND WE HAVE A POOL TECH PERSON THAT'S WATCHING IT CONSTANTLY, AND SO IS OUR MANAGER AND ASSISTANT MANAGER.
WE PRETTY MUCH HAVE SAID IN OUR BUDGET WHY WE CAME BACK IS BECAUSE WE HAD SOME ADDED EXPENSES BECAUSE WE'RE DOING SOME WORK TO OUR PLAY STRUCTURE AND SOME OTHER THINGS AND WE DID HAVE PROGRESSIVE COME IN WHEN OUR FORMER POOL MANAGER LEFT JUST TO CARRY US THROUGH BECAUSE WE FELT LIKE OUR TECH NEEDS A LITTLE EXTRA HELP TO GET THINGS UP AND RUNNING.
>> PART OF WHAT DRIVES OUR POOL COST IS WE OPERATE THAT POOL MUCH LONGER THAN MOST OF THE CITIES DO.
MOST OF THE CITIES RUN BASICALLY MEMORIAL DAY TO LABOR DAY AND THEN THEY SHUT IT DOWN.
WE OPERATE OURS FOR A MUCH LONGER PERIOD OF TIME AND WE'VE SHORTENED IT.
>> BUT WE'RE STILL OPERATING FAR LONGER THAN MOST OF THE CITIES IN THE AREA DO.
>> WHAT COULD BE THAT DIFFERENTIAL IN THE COST IF WE JUST LEFT?
>> WE'D HAVE TO PUT IT [OVERLAPPING].
>> BECAUSE THAT WOULD MAINLY BE SAFE.
WE DON'T STOP CHLORINATING THE POOL AND THINGS LIKE THAT.
[BACKGROUND] BUT THE COST WOULD BE LABOR WHICH IS OUR BIGGEST COST AT THE POOL.
>> ACTUALLY, THE AMOUNT OF APRIL WHEN WE OPEN, WE WILL RUN IT WITH FEWER STAFF MEMBERS AND ONLY ONE IN THE LAB POOL.
WE'D END UP WITH A SPLASH POOL TO MAY.
EVERY YEAR WE WAIT FOR IT TO WARM UP A LITTLE BIT.
LITTLE ONES DON'T WANT TO GET COLD WATER.
>> LIKE EVEN AT MY HOUSE, I CAN'T GET COLD WATER. [BACKGROUND]
>> IN THE FUTURE, IT WOULDN'T BE POSSIBLE TO SEE A BREAKDOWN IF WE SHORTEN THAT TIME? WHAT WOULD IT BE?
>> SIMPLY FIGURED THAT IN AND IT WAS MAINLY JUST THE LABOR COST THAT WAS LESS.
>> WOULD WE NORMALLY MEET THAT BUDGET OF $75,000 FOR CHEMICALS A YEAR? [OVERLAPPING]
>> IT'S $208 DOLLARS A DAY FOR CHEMICALS.
>> IT'S A LOT BECAUSE YOU GOT TO REMEMBER THERE'S KIDS IN THE POOL.
>> WE HAVE ACCIDENTS IN THE POOL.
>> [OVERLAPPING] HAVING BEEN IN LIVE GARDEN AND HAVING WORKED AT A RESORT HOTEL, WE USE A LOT OF CHEMICALS LIKE IT WOULD NOT BE UNCOMMON TO USE A WHOLE ONE AND THOSE BIG THINGS AND CHLORINE ONLY.
>> WE RUN A LITTLE HARDER THAN WHAT YOU WOULD NORMALLY RUN YOUR POOL. [OVERLAPPING].
>> WHEN YOU DO, DO YOU DO GRANULES OR DO YOU DO GAS?
>>GAS, OKAY. THAT'S WHAT WE WERE DOING.
>> THANK YOU BARBARA, ANYTHING ELSE FROM YOU?
>> I DON'T HAVE. SACHTRINA WAS SO NICE TO COME TODAY, I HAVE ONE QUICK QUESTION FOR HIM ALTHOUGH I THINK HE IS PRESENTING AFTER THAT.
WHAT'S THE TIMELINE ON THOSE NEW METERS?
>> THE ENTIRE PROJECTS IS AN 18-MONTH PROJECT.
[NOISE] THE NEW METERS ARE ACTUALLY SAID TO ARRIVE THIS FRIDAY AS PART OF THE PROJECT.
THE CITY, WE HAVE A SEPARATE ORDER FOR NEW INSTALLATIONS AND THEY'RE SET TO BE RECEIVED TODAY.
WHEN WE GET THE NEW METERS THOUGH, WE'RE NOT JUST GOING TO GO AND GO WITH INSTALLATION.
THE FIRST SET NEEDS TO BE INSTALLED, WATCHED, TESTED, AND THEN WE NEED TO SEE HOW THE DATA'S COMING BACK INTO OUR CUSTOMER SERVICE AND BILLING SYSTEM SO THAT WE KNOW THAT THINGS ARE BUILD PROPERLY.
WHAT WE DON'T WANT TO HAVE HAPPEN IS SOME ERRORED OUT BILLS IN THE FUTURE
[01:10:05]
AND AS POPPING UP ON THE NEWS WITH CUSTOMERS SAYING I GOT $2,000 BILL [OVERLAPPING]>> YOU DON'T WANT TO POP UP ON THE NEWS I ASSURE YOU.
>> BUT WE'RE GOING TO START INSTALLING NEXT WEEK.
>> OKAY. WHAT'S GOING TO BE THE FIRST TEST AREA?
>> [OVERLAPPING] I DON'T HAVE THAT LIST WITH ME.
WHAT WE DID, WE HAD BILLING, PUT TOGETHER A NUMBER OF METERS THAT THEY WANTED TO BE INSTALLED FOR US, BUT THEY WERE TROUBLED METERS AND THEN WE HAD OUR METERING GROUP LOOK AT AREAS THAT ARE DEAD SPOTS WHEN IT COMES TO AT&T AND VERIZON CELL SIGNALS.
IT'S SPREAD THROUGHOUT THE ISLAND FROM THE WEST TO EAST, HITTING ALL THESE AREAS.
>> IT SHOULD BE COMPLETED IN TWO MONTHS?
>> YEAH. ONCE WE GET THESE METERS INSTALLED, THEY'LL GO THROUGH APPROXIMATELY A ONE MONTH TESTING PHASE AND THEN WE'RE OPENING UP THE FLOODGATES AND THEY'RE JUST GOING TO START GETTING AREA AFTER AREA AND THEY'RE GOING TO BE BOUNCING AROUND AS THEY GO ALONG BECAUSE THEY'RE GOING TO BE FOLLOWING THE BILLING CYCLES.
WHEN ONE AREA HITS BLACKOUT DATES FOR A BILLING CYCLE, THEY'LL JUMP TO THE OTHER END OF THE ISLAND AND WHEN THAT AREA HITS, THEY'LL JUMP TO THE MIDDLE AND SO ON.
>> THANK YOU. GOOD. SOME QUESTIONS, PLEASE.
>> QUICK. MY FIRST COMMENT WAS YES, YES, I LOVE IT.
[LAUGHTER] THEN NUMBER 2, EXCITED TO HEAR ABOUT THE LED TESTING AS PART OF THE METER INSTALLATION AND I LOOKED AT YOUR NOTES HERE AND THAT WE ARE GOING ALONG WITH THE NEW EPA RULES WHICH ARE WAY MUCH LOWER.
>> BRIAN. THEY ARE MORE STRICT.
>> YEAH, STRICT. YES [OVERLAPPING].
>> OH, YEAH. I KNOW THAT WAS AN EXCELLENT OPPORTUNITY TO BE ABLE TO COMBINE THE TWO PIECES WITH THE METER AND SOLAR AND [OVERLAPPING]
>> MICHAEL, YOU PROBABLY KNOW THIS BETTER THAN ANYBODY, BUT THE TCEQ REQUIREMENTS ARE REALLY WHAT'S DRIVING A LOT OF OUR CIP GOING FORWARD [OVERLAPPING] AS THEY CONTINUE TO TIGHTEN THINGS DOWN AND WE'RE RUNNING ONE OF THE OLDEST SYSTEMS IN TEXAS.
IT HAS GREATER IMPACT ON US AND OTHER CITIES.
OTHERWISE IT WORKS FINE, BUT IT MAY NOT WORK THE WAY THEY WANT [OVERLAPPING]
>> ARE WE TALKING ABOUT 11R RIGHT NOW? IS THAT WHAT WE'RE TALKING ABOUT?
I DID HAVE SOME QUESTIONS ON THAT.
I GUESS I'M NOT UNDERSTANDING THE DIFFERENCE BETWEEN WORKSHOP BECAUSE I HAD QUESTIONS BUT THEN I MEANT TO GO SAY QUESTION, THEY SAID, SAVE THAT FOR WORKSHOP.
>> SOMETIMES WE HEAR THINGS ON THE WORKSHOP ATTENDED THAT ARE ALSO FOR CONSIDERATION LATER.
>> SOMETIMES THERE'S SPECIFIC ITEMS ON THE WORKSHOP.
>> MIKE YOU CAN HOLD YOUR QUESTIONS TILL THIS ITEM COMES UP THIS AFTERNOON, BUT AT WORKSHOP, THIS IS TIME FOR US TO REALLY.
>> WHAT WE'RE TRYING TO DO MIKE IS GET ALL THE STAFF HERE IN THE MORNING, GET ALL THE QUESTIONS AND ANSWERS SO THAT WE DON'T TIME UP IN THE EVENING SITTING HERE.
>> DO WE DO HAVE LIKE AN INDEPENDENT COSTS LIKE AN INDEPENDENT COMPANY OTHER THAN BADGER TO DO THE LEAD TESTING?
>> BADGER AS PART OF THEIR PROJECT, HAS A SUB THAT'S DOING THE METER INSTALLATION CALLED UMS, AND SO UMS DOES THESE INSTALLATIONS NATIONWIDE AND HAVE THEM LEAD TESTED.
NOW THE LEAD AND COPPER TESTING NONE OF THAT WAS PART OF THE AMI SYSTEM OR THE AMI PROJECT.
SEPARATELY FROM THAT, WE HAD ANOTHER PROJECT BEING RUN BY FREEZING NICHOLS, WHO'S OUR CONSULTANT AND THEY WERE GUIDING US THROUGH WHAT WAS GOING TO NEED TO HAPPEN WITH THE NEW EPA LEAD AND COPPER.
AS THEY WERE GOING THROUGH THEIR PROCESS, THEY BEGAN TO LOOK UP LIKE WHAT THE COST WOULD BE FOR US TO GO AND HIRE CONTRACTORS TO COME IN AND GET LIKE AN INVENTORY DONE OR A SYSTEM.
WHAT WE WERE FINDING IS THAT FOR CONTRACTORS TO COME IN AND BRING HYDRO EXCAVATORS OR POT OIL MACHINES OUT TO START DOING THIS, WE WERE LOOKING AT $200 A HOUSE ON THE LOW END.
YOU TIMES 27,000 METERS. THAT'S A LOT OF MONEY.
WHEN WE WERE SEEING THOSE NUMBERS, WE JUMPED BACK TO BADGE AND SO WHEN YOU GUYS ARE ALREADY GOING TO BE REMOVING THE BARS, REPLACING BOXES PUTTING NEW METERS AND YOU'RE GOING TO BE ABLE TO SEE THE MAJORITY OF THESE SERVICES, AND YOU GIVE US A COST.
AS YOU CAN SEE, THEY WERE GIVEN AS AN ADDITIONAL COST OF I THINK IT WAS $17.
>> WHAT WE'RE READING THERE," IT SAID THAT THEY WILL ONLY INSPECT WITHIN THE BOX."
>> I TOOK A PICTURE OF MY BOX.
I'VE GOT A TAIL PIECE AND I'VE GOT A CORPSE STOP.
YOU CAN'T TELL WHAT MY COPPER PLASTIC OR PVC OR WHATEVER I HAVE.
>> THAT'S ONE BOX. IN MANY BOXES THEY'RE OFFSET AND MANY BOXES THEY HAVE TO BE RESET OR REMOVED AND REPLACED WHICH WILL CAUSE THEM TO EXPOSE A LITTLE BIT.
[01:15:01]
IN THE AREAS THAT THEY CAN SEE, THEY'RE GOING TO CAPTURE, IN THE AREAS THAT THEY CAN'T SEE THEY ARE GOING TO SKIP AND THE CITY WILL TAKE ON THE SKIPPED ONES, AND SO WHAT YOU'RE TALKING ABOUT, 27,000 METERS AND WE ANTICIPATE THAT THEY WILL BE ABLE TO HIT OR CAPTURE ABOUT 70-80 PERCENT.THEN THAT MIGHT LEAVE THE REMAINING 20 PERCENT ON THE CITY, BUT THAT'S BETTER THAN A 100 PERCENT FOR US TO TACKLE ONE HOUSE.
>> THE ONES THEY SKIPPED, CAN WE NOT HAVE TO PAY FOR THOSE? I MEAN, IT'S JUST A VISUAL.
>> THEY WILL NOT CHARGE US FOR THE SKIPPED.
>> PERFECT. THAT ANSWERS MY QUESTION AND I APPRECIATE THAT.
>> WHEN WE FIND THE HIGH-LEVEL OF LEAD AND COPPER HENCE, WHY I DRINK BOTTLED WATER.
>> [INAUDIBLE] MUCH BETTER FOR YOU.
>> THIS IS DONE. WHAT ARE WE GOING TO DO ABOUT IT?
>> THE EPA IS PUTTING OUT QUITE A BIT OF DEFINITION FOR HOW THEY WANT GROUPS TO HANDLE IT.
THEY HAVE TRIGGERED LEVELS AND THEY HAVE ACTUAL LEVELS FOR THE CITY OR THE UTILITIES, BUT THEN THEY ALSO HAVE OTHER COMPONENTS WHERE THE CUSTOMER CAN DRIVE IT.
THE FIRST PART IS TO CAPTURE AN INVENTORY AND TO PUBLICIZE THAT INVENTORY SO THAT EVERYBODY KNOWS WHAT'S ON THEIR SIDE OF THE SERVICE FROM WHAT WE COULD SEE AND WHAT'S ON OUR SIDE OF THE SERVICE FROM WHAT WE CAN SEE.
NOW, IF IT TURNS OUT THAT WE FIND AREAS THAT HAVE LEAD, THEN THE NEXT PIECE IS HAVING TO TEST THE WATER TO MAKE SURE THAT THE LEAD CONTAMINANT LEVELS OR WITHIN THE NEW MORE STRICT AMOUNTS OR LEVELS, AS LONG AS THEY STAY THERE, THEN WE'RE OKAY.
PART OF THIS NEW LEAD AND COPPER RULE, WE'RE GOING TO BE REQUIRED TO OPTIMIZE OUR CORROSION CONTROL.
WE'RE GOING TO BE REQUIRED TO ACTUALLY BEGIN TESTING THE LEAD CONTENT IN THE WATER AROUND SCHOOLS, DAYCARES AND ANY OTHER PLACE THAT HOUSES CHILDREN.
THAT'S GOING TO EXPAND OUR SEARCH AREA FOR THIS.
NOW, IF WE BUST THE TRIGGER LEVEL, WE WILL HAVE TO TAKE ACTION AND WE WILL HAVE TO REPLACE SERVICE MAYBE EVEN MEAN, WHAT IF A CUSTOMER REALIZES, HEY, ON MY SIDE, I HAVE LEAD.
NOW I'M GOING TO REPIPE MY HOUSE.
ONCE THEY DO THAT, WE'RE GOING TO HAVE TO WORK OUT A PROCESS WHERE THEY NOTIFY THE CITY BECAUSE WE'RE GOING TO BE REQUIRED TO IMMEDIATELY CHANGE THAT SERVICE SO THAT THEIR WHOLE NEW PIPE IS UNCONTAMINATED.
>> WELL, WE CHANGE THE SERVICE AS FAR AS THE METER.
>> IF IT'S ON THEIR SIDE, SO THEY'RE GOING TO HAVE TO CHANGE THEIR PIPES AND IF IT'S ON OUR SIDE TOO THEN WE'RE GOING TO HAVE TO CHANGE OUR PIPES.
>> IF THEY CHANGE THEIRS WE HAVE TO CHANGE OURS.
>> ANY OTHER QUESTIONS OR ANY OTHER ITEMS? I'M GOING TO WIND THIS UP QUICK QUESTIONS.
IT'S 11:00 AM COUNCIL, THIS PACKET MATERIAL WAS SENT TO US.
IT'S NOT IN OUR BUCKET HERE WITH THE AGENDA IT WAS SENT BY CARRIE SUMMERALL.
I JUST WANT TO BRING THAT TO YOUR ATTENTION ON THAT, AND THERE'S A NICE LETTER FROM THE PORT THERE THAT LINES UP AND GIVES A KUDOS TO
>> GERRY AND CARRIE DID A GREAT JOB.
>> GERRY I PERSONALLY DIDN'T HAVE ANY QUESTIONS.
I JUST WANTED TO BRING THAT TO THEIR ATTENTION AND YOU GUYS DID A WONDERFUL JOB.
>> THANK YOU WE APPRECIATE IT.
>> YOU'RE WELCOME. ALSO, ITEM 11.0, I'VE GOT A EITHER GOOD OR BAD I GOT WRAPPED UP IN THAT CONVERSATION CONCERNING GARDEN VERON HERE A COUPLE OF MONTHS AGO.
I ASSUME WE'RE HOPING THAT'S GOING TO TAKE CARE OF OUR PROBLEMS.
>> WE'RE TRYING TO SOLVE THE MOISTURE ISSUES IN BUILDING. YES, SIR.
>> THAT'S BEEN A CONTINUAL PROBLEM OVER THERE. [OVERLAPPING]
>> WE THINK THAT'S GOING TO SOLVE SOME OF THE PROBLEMS AT LEAST.
>> IF IT DOESN'T, THEN WE'LL TACKLE THE NEXT WHEN IT COMES ALONG, THERE'S ALOT MOISTURE BEING GENERATED.
WE FOUND THE SPOT WHERE IT'S BEING GENERATED COOLING AND [OVERLAPPING] IT'S HORRIBLE PROCESS OF AIR CONDITIONING, SOMETHING THAT COULD NEVER MEANT TO BE AIR CONDITION.
>> NOW RUNNING HEAD DUCK UNDERNEATH THAT.
>> MOST OF THE DUCTWORK IS ACTUALLY INSULATED A LITTLE BIT.
AS WE FOUND OUT, THE PART BETWEEN THE MAIN DUCTWORK AND THE REGISTERED IS NOT AND THAT'S WHY WE'RE GOING IN TO INSULATE.
THEY'RE REPLACING [INAUDIBLE].
[01:20:02]
THAT SHOULD TAKE CARE OF A LOT OF THAT BUT THERE'S STILL, IT'S AN OLD BUILDING AND IT'S MEANT TO BREATHE.[INAUDIBLE] AND WE JUST HAVE TO KEEP AFTER IT AND WE MAY HAVE TO KEEP AFTER IT FOR A DECADE.
>> FIGURE OUT HOW TO MAKE IT WORK RIGHT.
OR SPEND A LOT OF MONEY AND ENERGY.
>> I DON'T THINK ANYBODY REALIZES HOW MUCH CONDENSATE CAN COME OFF OF AIR CONDITIONING IN GALVESTON.
>> I DO. I HAD TO REPLACE MY ENTIRE CEILING.
>> I COLLECTED WATER [OVERLAPPING].
>>THAT'S JUST COMING OFF YOUR UNIT.
I MEAN, IF YOU HAVE SOMETHING EXPOSED, IT'S SWEATING AND IT'S A LOT.
>> IT'S A LOT. MARIE, DID YOU HAVE A QUESTION?
>> YEAH. WE OWN AND MANAGE THAT.
WHY DID I ALWAYS THINK THE HISTORIC FOUNDATION [OVERLAPPING].
>> WE OWN IT, THE HISTORICAL FOUNDATION MANAGES IT.
>> THEY OWN AND MANAGE ASHTON VILLA.
WE OWN, THEY MANAGE THE GARDEN.
>> IN THE CONTRACT, MARIE, WE HAVE IT DELINEATED WITH RESPONSIBILITIES OF OURS AND WHICH ARE OUR RESPONSIBILITIES.
>> IT'S KIND OF LIKE THE PART WITH CAPITAL VERSUS REPAIR AND UPKEEP.
>> WHAT'S THE LIFESPAN ON THIS NEW PRODUCT? DO YOU KNOW OFFHAND?
[LAUGHTER] IT'S NOT GOING TO DETERIORATE MUCH.
>> CLOSED CELL OR OPEN CELL FOAM?
>> IT'S ABOUT THE AIR CONDITIONING ASPECT, I'M ALMOST POSITIVE IT'S GOING TO BE CLOSED CELL.
BRIAN, LAST QUESTION I HAD 11T AS THIS IS THIS TRAINING OF GALVESTON POLICE CADETS.
>> I WON'T GET INTO ALL THE DETAILS OF WHY THEY SHUT THESE OTHER PROGRAMS DOWN.
BUT I GUESS MY QUESTION IS, WE'RE MOVING TO ALVIN COLLEGE, I GUESS, ON THIS?
>> [INAUDIBLE] CHIEF. [LAUGHTER]
>> I'M NOT TALKING ABOUT SHERYL'S HUSBAND.
>> YES, SIR. THERE WERE SOME ISSUES THAT OCCURRED INTERNALLY AND THE DIRECTOR OF THE POLICE ACADEMY WALKED AWAY FROM THE PROGRAM AT GALVESTON.
THE DIRECTOR, TOM, WAS RELEASED.
TOM IS NOT EVEN GOING TO HAVE ANOTHER PROGRAM UNTIL NEXT JANUARY.
WE KNEW WE WERE GOING TO HAVE CONSIDERABLE AMOUNT OF CADETS THAT WE NEEDED TO SECURE A SPOT FOR, SO WE IMMEDIATELY CONTACTED ALVIN WHEN ALL THIS STARTED, KIND OF UNRAVELING, SECURED SPOTS FOR THEM.
WHAT WE DON'T WANT TO DO NOW IS BURN THAT BRIDGE.
IN-CASE WE NEED IT IN THE FUTURE.
CONTACT WITH BART STEVENS, THE NEW DIRECTOR AT GALVESTON COLLEGE, AND TOLD HIM IN THE FUTURE WHERE WE'RE WILLING TO SIT DOWN AND TALK ABOUT IT AND SEE WHAT'S BEEN DONE TO ALLEVIATE ANY ISSUES THAT THEY HAD AND ANY CONCERNS WE HAVE AND GO BACK THERE.
BUT IN THE MEANTIME, I WOULD HATE TO BURN A BRIDGE AT ALVIN IF THE SITUATION AND GOT RIGHT [INAUDIBLE]
>> MILES HAS BEEN TALKING TO US.
HE'S ACTUALLY INTERESTED IN EXPANDING THAT PROGRAM AT GALVESTON COLLEGE AS OPPORTUNITY PRESENTS, AND WE BOUGHT A LOT OF OTHER LAW ENFORCEMENT AGENCIES TO THE TABLE TO WORK WITH HIM ON THAT.
I THINK IT'S GOING TO BE VERY SUCCESSFUL LONG-TERM FOR GALVESTON COLLEGE, GOOD PARTNERS FOR US.
>> WELL, THAT WAS MY MAIN QUESTION IS, FIRST OF ALL, THANK YOU FOR REALLY FOLLOWING UP AND OFFERING THIS ALTERNATIVE.
BUT MY QUESTION REALLY WAS, WE'LL BE ABLE TO GET BACK INTO GALVESTON COLLEGE AT SOME FUTURE DATE.
WE HAD OFFICERS THERE THAT WERE ACTUALLY TEACHING AND DOING SOME THINGS, BUT I WANT TO KIND OF IRON SOME OF THOSE THINGS OUT TOO BECAUSE WE WERE SENDING PEOPLE THERE WERE BEING REIMBURSED AT A RATE OF ABOUT $25 AN HOUR BUT MOST OF THE TIME WHEN WE SEND THEM THERE WE'RE DOING THAT AT AN OVERTIME RATE AND IT'S NOT ADVANTAGEOUS FOR THE PD, ESPECIALLY WHEN WE'RE SHORT BECAUSE WE'RE HAVING A BACK-FILL OTHER POSITIONS TOO AND IT'S JUST KIND OF WE NEEDED TO REWORK ALL OF THAT AND SIT DOWN AND COME UP WITH A BETTER PLAN.
>> OKAY. VERY GOOD. THANK YOU, CHIEF.
>> ALL RIGHT, THAT WAS ALL THE QUESTIONS I HAVE.
I THINK WE'VE HAD A GOOD DISCUSSION ON LOT OF THESE QUESTIONS OR A LOT OF THESE ITEMS. LET'S MOVE TO ITEM 4B IF WE COULD, PLEASE. JANELLE
[4.B.Discussion Of Galveston Municipal Code Chapter 19, Article III, Concessions And Peddlers, Section 19-51 – Definitions; Section 19-52 – Permit Required; Section 19-53 – Procedure For Approval And Applicable Standards; And Section 19-56 – Exceptions And Exemptions; Planning Case Number 22PA-005, Making Various Findings And Provisions Related To The Subject (Listowski/Brown - 15 Min))]
>> 4B. DISCUSSION OF GALVESTON MUNICIPAL CODE CHAPTER 19, ARTICLE 3, CONCESSIONS OF HANDLERS.
SECTION 1951, DEFINITION SECTION 1952, PERMIT REQUIRED SECTION 1953, PROCEDURE FOR APPROVAL IN THE APPLICABLE STANDARDS IN SECTION 1956, EXCEPTIONS AND EXEMPTIONS.
[INAUDIBLE] NUMBER 22 [INAUDIBLE] 005 AND THE VARIOUS FINDINGS AND PROVISIONS RELATED TO THIS SUBJECT.
[01:25:05]
>> DANIEL, COME ON OVER AND HAVE A SEAT BECAUSE I HAVE A FEELING YOU MIGHT BE WITH US FOR A LITTLE WHILE ON THIS.
SECOND OF ALL, I'M GOING TO TURN THIS OVER TO JOHN IN JUST A SECOND FOR SOME INTRODUCTION ON THIS AND TO DANIEL.
HAVE A SEAT, DANIEL, AND PULL UP TO THE TABLE UP HERE.
I WANT TO KIND OF GIVE AN INTRODUCTION HERE.
FIRST OF ALL, WE HAVE BOB BROWN WITH US TODAY.
HE IS THE VICE-CHAIR, I THINK, OF THE PLANNING COMMISSION.
JEFFREY HILL HAS HAD SOME ILLNESS IN THE FAMILY AND CANNOT BE WITH US TODAY.
BOB, THANK YOU FOR BEING HERE.
WE MAY HAVE SOME QUESTIONS FOR YOU AS WE GO ALONG.
SECOND OF ALL, JEFFREY HILL HAD SENT AN EMAIL TO ME.
SHE REQUESTED THAT THIS BE READ BEFORE WE START OUR DISCUSSION.
I READ THROUGH IT AND I WAS VERY IMPRESSED.
DURING THE LAST TWO YEARS, WE HAVE HAD 13, YES, 13 WORKSHOPS TO DISCUSS THE CHANGES PRESENTED TODAY IN 10E, AND THIS WILL BE ON OUR AGENDA TO THIS AFTERNOON OR 10E.
IN THAT PERIOD, THE MEMBERS OF THE PLANNING COMMISSION HAVE TURNED OVER QUITE A BIT CREATING A LEARNING CURVE WITH EACH NEW EDITION.
ONE THING THAT HAS NOT CHANGED IS THE DILIGENCE AND LEADERSHIP OF PLANNER DANIEL LUNSFORD.
HE HAS THOROUGHLY AND THOUGHTFULLY RESEARCHED THE FOOD TRUCK ORDINANCES FOR MANY CITIES ACROSS TEXAS.
HE CALL IT IN GALVESTON COUNTY HEALTH DEPARTMENT OFFICIALS TO ANSWER OUR QUESTIONS ON TWO DIFFERENT OCCASIONS.
HE SENT OUT NOTICES SO WE COULD ACTIVELY SOLICIT INPUT REGARDING THE CHANGES FOR LICENSE FOOD TRUCK AND FOOD TRUCK PARK OPERATORS.
DANIEL HELPED US PLOW THROUGH DEFINITIONS AND CODE ENFORCEMENT CONSIDERATIONS WITH EQUAL CONSIDERATION.
AS COUNCIL AND CITY MANAGEMENT ARE WELL AWARE, THE PLANNING DEPARTMENT DOESN'T HAVE A LOT OF EXTRA TIME ON THEIR HANDS.
YET, DANIEL ALWAYS TOOK THE TIME TO ANSWER OUR QUESTIONS IN A POLITE AND PROFESSIONAL MANNER.
HIS PATIENCE WAS ALMOST BIBLICAL.
I LIKE THAT. THAT WAS [LAUGHTER] I SPEAK FOR ALL MEMBERS OF THE PLANNING COMMISSION PAST AND PRESENT TO WORK WITH DANIEL ON THIS MATTER BUT I OFFER OUR MOST SINCERE GRATITUDE.
WITHOUT HIM THIS MONUMENTAL TASK WOULD NEVER HAVE BEEN COMPLETED.
SHE WANTED ME TO READ THAT CONGRATULATIONS BIT. VERY GOOD.
THIS IS ITEM 10A ON OUR AGENDA HERE.
JOHN, WOULD YOU LIKE TO DO AN INTRODUCTION ON THIS BEFORE DANIEL STARTS?
>> I'LL GO AHEAD AND PASS THE DADO AND I'LL FOLLOW UP AT THE END THERE.
DANIEL, I'M GOING TO TURN IT OVER TO YOU SIR.
>> ANY QUESTIONS? [LAUGHTER] SERIOUSLY THOUGH I KNOW YOU ALL HAVE AN ENVIABLE TASK OF GETTING YOUR HEAD AROUND.
I HAVE A LOT OF WORK ON FAIRLY SHORT PERIOD OF TIME.
I DO HAVE A SHORT PRESENTATION PREPARED.
GINELLE I THINK SHE HAS IT, LET ME BRING THAT UP, I'M A GOOD PLACE TO START.
JUST TO GIVE YOU A BRIEF RUNDOWN AND HOPING WE CAN GO FROM THERE AS FAR AS, [NOISE] QUESTIONS AND DISCUSSION.
FIRST, WE'LL START WITH A BACKGROUND.
THIS REALLY GOES BACK TO 2014.
AT THAT TIME, PRETTY MUCH IN CONJUNCTION WITH THE LDR CHANGES.
STAFF, MET WITH A AD HOC COMMITTEE TO PUT TOGETHER THE FIRST ROUND OF CONCESSION ORDINANCES, WHICH IS WHAT WE HAVE TODAY.
BEFORE THAT, THERE WERE NO REAL CONCESSION OR FOOD TRUCK ORDINANCES IN GALVESTON IS MY UNDERSTANDING.
THIS WAS BEFORE ME. I'VE DONE A LITTLE RESEARCH ON THIS.
THIS WAS AN EFFORT TO PUT SOMETHING TOGETHER THAT WAS COHESIVE AS OPPOSED TO SOMETHING HERE, SOMETHING THERE, SOMETHING SOMEWHERE ELSE THAT WAS COMPOSED OF SIX AD HOC MEMBERS.
PLUS EX OFFICIAL I BELIEVE WAS TERRIBLY TROLL.
SHANNON LEE WAS EX OFFICIO THAT TIME.
COMPOSER, RESTAURANT OWNERS, BUSINESS OWNERS, GENERAL PUBLIC, THEY ADDRESS A NUMBER OF ISSUES AND STANDARDS AND BUFFERS, THINGS LIKE THAT.
YOU MIGHT THINK OF IT'S EITHER LIVE SAFETY OR COMPLIANCE CONCERNS.
IT INCLUDE SOME INPUT FROM PARKS DEPARTMENT MITCHELL HISTORIC PROPERTIES, OF COURSE, HAS SACRIFICED PARK DOWNTOWN AND THE HEALTH DISTRICT.
[01:30:04]
THAT ORDINANCE, WHICH IS OUR CURRENT ORDINANCE, WAS ADOPTED IN JULY OF 2015.REVISIONS WERE REQUESTED BY COUNCIL MEMBERS, BOTH CURRENT AND PAST, DUE TO A VARIETY OF ISSUES.
I HONESTLY AFTER ALMOST SEVEN YEARS, THAT'S A GOOD AMOUNT OF TIME TO LOOK AT AN ORDINANCE AND SEE IF IT'S WORKING IF IT NEEDS TO BE REVISED.
I THINK WE'RE IN A GOOD PLACE.
NEXT SLIDE, PLEASE. LET'S TALK ABOUT WHAT'S NOT CHANGING.
KEY DEFINITIONS REALLY AREN'T CHANGING EXCEPT TO CLARIFY SOME THINGS AND CLOSE A LITTLE LOOPHOLES.
GENERALLY SPEAKING, THAT'S NOT CHANGING TOO MUCH.
ANY CHANGES WE'VE MADE HAVE BEEN MET TO, LIKE I SAID, CLOSE SOME LOOPHOLES AND TIGHTEN UP SOME THINGS ARE A LITTLE BIT AMBIGUOUS.
THE ANNUAL PERMANENT REQUIREMENTS WERE STILL REQUIRE A PERMIT FOR FOOD TRUCKS.
GENERAL PROCEDURES AND STANDARDS ARE GENERALLY NOT CHANGING.
OF COURSE, THE COUNTY HEALTH DISTRICT STANDARDS ARE THERE PER VIEW, WE DON'T REALLY GET INTO THAT, SO THAT'S NOT CHANGING.
WE'RE NOT PROPOSING TO CHANGE OUR OPERATIONS OF PRIVATE PROPERTY.
ONLY WE REALLY STILL DON'T WANT FOOD TRUCKS AND THE RIGHT-OF-WAY.
FOR VARIETY OF REASONS OF COURSE.
REPLICATION PROCESS HAS NOT CHANGED.
IF SOMEONE IS NOT COMPLIANT WITH, STILL HAVE THE ABILITY TO REVOKE THEIR PERMIT AND ENCOURAGE THEM IN VARIOUS WAYS TO BE COMPLIANT.
MISCELLANEOUS PERMITS FOR PILLARS AND DISARRAY RENTALS, JUST THINGS LIKE THAT, IT'S NOT PART OF THIS PURVIEW.
WE'RE NOT TOUCHING THE SPECIAL EVENT OR DOES FOR LONE STAR MARDI GRAS OVER AND BE LIKE THIS.
THIS IS JUST FOR OUR FOOD TRUCKS.
WE CALL THEM CONCESSIONS. NEXT SLIDE, PLEASE.
>> CAN I ASK YOU ONE QUESTION?
>> JUST BECAUSE IN ONE DID THE DEFINITION THAT TALKS ABOUT A CART, THAT WOULDN'T BE CONSIDERED A PEDDLER UNLESS THEY WERE SELLING FOOD?
>> CORRECT. OUR DEFFINATION OF PEDDLER AT THIS POINT IS REALLY JUST FOR DOOR-TO-DOOR SALESMAN.
WE GET MAYBE ONE OF THOSE THAT [LAUGHTER] DOESN'T COME UP MUCH.
WE WILL CONSIDERED A CART TO PUSH CART TO BE A CONCESSION.
YOU HAVE TO MEET THE SAME STANDARDS.
>> LIKE SAYING MARDI GRAS, WHERE YOU SEE THE PEOPLE THAT ARE SELLING BALLOON WHAT NOT?
>> WELL, MARDI GRAS IS A LITTLE BIT DIFFERENT CREATURE.
>> [OVERLAPPING] YOU SEE PEOPLE OUTSIDE STAND SELLING [INAUDIBLE].
>> RIGHT. TECHNICALLY, THEY SHOULD HAVE A CONCESSION PERMIT.
DO THEY ALL HAVE A CONCESSION PERMIT? [LAUGHTER] BUT TO ANSWER YOUR QUESTION.
>> THEY TECHNICALLY, COULD. THEY WOULD.
BUT ENFORCEMENT IS ALWAYS VERY IMPRECISE.
WHAT'S CHANGING LOCATION STANDARDS.
THIS THIS WAS BASED ON REQUEST OF OUR PARK PERMITTED CONCESSION OWNERS.
REMEMBER ONE PERSON SAID SPECIFICALLY, WE DON'T MIND THE FEES.
WE WOULD JUST LIKE MORE FOR THE MONEY.
WE'RE PROPOSING THAT INSTEAD OF A CONCESSION HAVING TO BE IN THE SAME PLACE ALL THE TIME, WHICH IS WHAT THE CURRENT STANDARD IS, WE'RE PROPOSING THAT THEY ARE ALLOWED TO MOVE BETWEEN THREE DIFFERENT LOCATIONS AS LONG AS THEY'RE ALL PROPERLY ZONE, THEY HAVE A LEASE AGREEMENT WITH THE OWNER, ETC, UNDER THE SAME PERMIT.
CODE ENFORCEMENT SEEK MARSHALL'S INDICATED THAT THEY DON'T THINK THAT WOULD BE ANY UNDUE BURDEN ON THEM TO ENFORCE THAT.
THEY SEEM TO BE OKAY WITH THAT.
>> ONLY THREE. JUST OUT OF CURIOSITY.
>> JUST A STAR, JUST TO SEE HOW IT GOES.
A LOT OF CITIES ALLOW FOOD TRUCKS TO JUST MOVE WHEREVER.
I DON'T THINK WE WANT TO COVARY IT.
>> IF WE GET TO A POINT WHERE WE HAVE FOUR FOOD TRUCK PARKS, BECAUSE I KNOW THIS WAS AN ISSUE IN BECAUSE PEOPLE THEY WANT TO ATTACK FOOD TRUCKS, THEY COULDN'T GO ON LAST NIGHT, GOT SEPARATE LICENSES.
BUT LET'S SAY WE HAVE FOUR PARKS AND THEY WOULDN'T BE ABLE TO WORK AT EACH OF THOSE?
THEY CAN BE BY THEMSELVES ON A COMMERCIAL LOT.
TO ME, IT'S LOCATION STANDARDS.
>> NO. BUT LET'S JUST SAY WE AFFORD FOOD PARKS.
>> YES. YOU'RE CORRECT. BUT THEY REALLY HAVE A PERMIT.
>> THEY WOULD ONLY BE ALLOWED TO SERVE AT THREE.
>> THAT'S PROBABLY, WE CAN PROBABLY JUMP OFF THE BRIDGE TO IT.
WE DON'T HAVE THAT I DON'T THINK WE HAVE THAT PROBLEM WITH THAT.
>> WE PROBABLY DO. YOU PROBABLY HAVE MORE THAN FOUR DRAWERS.
[01:35:04]
>> YEAH, IT'S SOMETHING WE SHOULD PROBABLY LOOK AT.
>> IT PROBABLY DIDN'T MATTER REALLY IF WE MADE IT THREE OR FOUR OR FIVE, BUT [OVERLAPPING].
>> OR YOU CAN MAKE A DISTINCTION BETWEEN OPERATING A LICENSED FOOD TRUCK PARK AND OPERATING AND NOT IN A FOOD TRUCK PARK AND LIMIT THE NUMBER OF [INAUDIBLE] BECAUSE I JUST SUDDENLY CAN'T JUST PULL UP TO ANY GAS STATION.
>> NO, BUT I'M NOT TALKING GAS STATION, I'M TALKING FOOD TRUCK PARK.
>> BECAUSE LIKE ONE OF THE THINGS THAT THE ONE THAT'S IN C ALTHOUGH ADVERTISE THIS WEEK, LOBSTER.
THEN THE LOBSTER GUY WHO MIGHT ALSO BE XYZ PARK AT XYZ COULDN'T GO TO YZA BECAUSE HE COULD ONLY, I MEAN, IT SEEMS TO ME YOU SHOULD BE ABLE TO OPERATE AT ANY PARK.
>> PROBABLY PERMANENT FOOD TRUCK PARK.
>> YEAH. YOU WOULD BE PLACING PARK IN THERE BECAUSE WHERE IT IS RIGHT NOW WITH THE THREE, THEY COULD GO TO THREE INDIVIDUALS.
IT DOESN'T HAVE TO BE FOOD TRUCK ARKS.
>> OR PERHAPS YOU'VE CHANGED TO SAY ANY.
>> CORRECT ME IF I'M WRONG. I DON'T THINK THAT'S TOTALLY CORRECT.
THEY CAN HAVE A LEASE AGREEMENT WITH SOMEBODY TO GO OPERATE THERE.
BUT IF THERE IS SUCH THING IN THIS ORDINANCE AS A FOOD TRUCK PARK IT IS DEFINED.
>> THEY CAN OPERATE OUT OF, IF YOU HAVE A PERMIT FOR A FOOD TRUCK PARK, THEY CAN OPERATE OUT OF THREE OF THOSE.
>> NOT ALL FOUR, WHEN [OVERLAPPING].
>> IF THEY WENT TO A GAS STATION PARKING LOT ON THE WEEKDAY, THEY WOULD HAVE TO HAVE ANOTHER LEASE AGREEMENT AND I GUESS PAY ANOTHER FEE, OPERATE THERE.
>> WELL, SO JUST TO GIVE A LITTLE CONTEXT BECAUSE SOME OF THIS DOES INTERPLAY.
THIS IS PRETTY HOLISTIC PROPOSAL.
BUT CURRENTLY, OUR STANDARD PRACTICE HAS BEEN IF SOMEONE WANTS TO BE IN MORE THAN ONE LOCATION OR CURRENT REGULATION, [OVERLAPPING].
THEY WOULD PAY FOR A SEPARATE PERMIT FEE IN A SEPARATE UNIT, WHATEVER.
THAT WOULD NECESSARILY CHANGE.
IF THEY WANT TO BE AT FOUR, FIVE, SIX PLACES, THEY COULD TECHNICALLY PAY ANOTHER FEE.
WE'RE ALSO PROPOSING AN INCENTIVE FOR THEM TO BE IN PARKS, BEGIN WITH, WHICH IS A.
>> BUT IF YOU'RE INCENTIVIZING PEOPLE TO BE IN PARKS, THEN YOU WOULD WANT TO LIMIT THEM TO JUST THREE OF THE PARKS.
YOU SHOULD I'M SAYING YOU COULD DO IT.
WE'RE ALREADY LIMITING BECAUSE WE WANT TO KEEP THEM MAD AT GAS STATIONS.
BUT WE'RE ALMOST PUSHING THEM INTO THAT BY LIMITING THEM ON THE NUMBER OF PARKS THEY COULD BE IN.
>> I UNDERSTAND. YEAH. THAT NUMBER COULD BE.
IT COULD BE FOUR OR FIVE WHATEVER [OVERLAPPING].
>> I LIKE THE IDEA THAT YOU JUST PUT THEM IN HIS ALL YOU'RE GOING TO A LICENSED AND APPROVED FOOD TRUCK PARK [OVERLAPPING] YOU CAN MOVE AMONGST THOSE PARKS.
>> WELL, BUT I WANT TO MAKE SURE WE'RE CLEAR ON THIS.
IF THEY HAD THREE SEPARATE LAWS, THEY HAVE PERMISSION FROM THAT PROPERTY OWNER THERE, AND IT'S NOT A FOOD TRUCK PARK.
>> THEY WOULD HAVE TO FREE OTHER LICENSES.
>> THE PROPERTY OWNER HAS TO HAVE HIS PROPERTY PERMITTED AS A FOOD TRUCK PARK?
>> EVERYONE DOES. ANY PLACE YOU PARK A FOOD TRUCK?
>> NO, NO, NO, NO. IF A PROPERTY OWNER WANT TO CREATE A FOOD TRUCK PARK THERE IS A PROCESS TO DO THAT.
THEY PERMIT THEIR PROPERTY AS A FOOD TRUCK PARK.
THEN THAT FOOD TRUCK PAYS A LOWER FEE FOR THEIR PERMIT FEE TO OPERATE ON THAT PARK.
[OVERLAPPING] IF THEY WANT TO GO TO A GAS STATION PARKING LOT AND IT'S NOT A PARK AND THEY DON'T HAVE A PERMIT FOR A PARK, THEN THEY PAY A HIGHER FEE AND THEY CAN OPERATE OUT OF THAT.
>> WELL, I GUESS MY QUESTION IS IF SAY THERE'S THREE VACANT PLOTS?
>> THEY WOULD PAY THREE FEES FOR EACH ONE OF THOSE.
>> TODAY OR TO THIS ORDINANCE?
>> TODAY THEY WOULD PAY THREE SEPARATE FEES, AND TO THIS ORDINANCE, THEY WOULD PAY THREE SEPARATE FEES.
BUT IF THEY HAD INDIVIDUAL PLOTS AND ON MONDAY, TUESDAY THERE ON ONE OF THEM WEDNESDAY, THURSDAY, THEY HAVE TO HAVE THREE SEPARATE?
>> BUT SO WHAT WE'RE TALKING ABOUT IS THE LANGUAGE THAT'S TIED TO A CERTIFIED FOOD TRUCK ARE WE MIGHT WANT TO [OVERLAPPING].
>> I THINK WHAT THE ORDINANCE IS DOING IS ALLOWING THEM TO MOVE BETWEEN FOOD TRUCK PARKS.
>> BUT IF I COULD THROW IN HERE BECAUSE THAT WAS IN MY SOMEWHAT LIMITED ENGAGEMENT IN THIS PROCESS.
YOU GUYS DID A GREAT JOB ON THE SIDE.
[01:40:01]
YOU'RE ALL [OVERLAPPING] I KNOW YOU'VE BEEN AT THIS A LONG TIME.BUT ONE OF THE THINGS I THOUGHT I HEARD WAS [NOISE] WITHOUT REGARD TO FOOD TRUCK PARKS, IF THEY HAD SAY THREE GAS STATIONS THEY HAD AGREEMENTS WITH, THEY WANTED TO BE ABLE TO PICK AND CHOOSE WHICH OF THOSE THEY LANDED ON A SINGLE APARTMENT?
>> NO. UNLESS THAT GAS STATION WENT OUT AND GOT A PERMIT FOR A FOOD TRUCK PARK?
>> THEY WOULD HAVE TO PAY FOR THE FEES.
THEY WOULD HAVE TO SHOW LEASE AGREEMENTS FOR THOSE PROPERTIES THAT HAVE TO GO THROUGH THE WHOLE PROCESS TO BE IN THREE SEPARATE GAS STATION PARKING LOTS.
>> THIS IN EFFECT INCENTIVIZE PEOPLE TO OPERATE WITHIN THE FOOD TRUCK PARKS?
>> WHICH IS WHAT WE WANT [OVERLAPPING].
>> THAT'S THE WHOLE POINT OF THIS REVISION [OVERLAPPING].
>> [OVERLAPPING] DOESN'T MAKE THAT BOB, YOU MAKE THEM UNLIMITED, WHATEVER.
>> SAY ANY CERTIFIED FOOD TRUCK PARKS.
>> YES, CERTAINLY, LIKE I SAID, THREE WAS A STARTING POINT.
THERE'S JUST NOTHING REALLY MAGICAL ABOUT THAT NUMBER, HONESTLY.
ONE THING I DO WANT TO MENTION IS THAT CURRENTLY ONE OF THE PROPOSALS IS TO MAKE GETTING A CONCESSION PARK PERMIT EASIER AND CHEAPER.
THE REASON FOR THAT IS CURRENTLY TO BE A CONCESSION PARK YOU HAVE TO PAY A $1,000.
THAT'S MOST CERTAINLY BEING PASSED ON TO THE FOOD TRUCK PEOPLE WHO ARE OCCUPYING THAT PROPERTY BECAUSE THEY'RE GOING TO PASS THAT EXTERNALITY.
I GUESS THAT'S THE RIGHT TERM TO THE LEASE HOLDER.
IF WE WERE PROPOSING TO HAVE THEM GET A CERTIFICATE OF ZONING COMPLIANCE, WHICH IS PRETTY MUCH WHAT IT SOUNDS LIKE, JUST A LITTLE LETTER FROM STAFF. WE DO THEM ALL THE TIME.
BUT IT SAYS YES, YOU MEET THE CRITERIA FOR DOING THIS THING.
HOPEFULLY, THAT WILL INCENTIVIZE PEOPLE TO GO INTO PARKS TOO BECAUSE HOPEFULLY THAT WILL BE REFLECTED IN THEIR LEASE AGREEMENT.
PLUS, WE'RE PROPOSING TO GIVE THEM A DISCOUNT IF AT LEAST ONE OF THEIR LOCATIONS, IF THEY'RE PERMITTED TO BOUNCE AROUND FROM ISN'T A PARK.
WE'RE TRYING TO ACIDIFY FINANCIALLY TO GO TO PARKS WHICH HAS BEEN MENTIONED, WAS ONE OF THE MAIN CONCERNS FROM THE BEGINNING.
>> BUT JUST SAYS JEFFREY HILL JUST COMMENTED THAT [NOISE] NONE OF THE VENDORS OBJECTED TO THIS LIMIT OF THREE BECAUSE WHAT WE'RE NOT TAKING INTO ACCOUNT IS THE COST OF LEASE AGREEMENTS WITH THE DIFFERENT BAR WRITERS.
>>> DANIEL, LET ME ASK THIS HERE.
THE WAY I UNDERSTOOD WE HAD A CONCERN HERE, I THINK NOT TOO LONG AGO, A FOOD TRUCK PARK AND THEY HAD PERMITTED FOR A FOOD TRUCK PARK AND THEY WERE ALLOWING POP UP VENDORS THAT DIDN'T SELL FOOD, THEY DIDN'T SELL OTHER ITEMS, RETAIL ITEMS, THAT'S NOT PERMITTED. THAT IS CORRECT?
>> THAT'S CORRECT. THE ONLY EXCEPTION TO THAT WOULD BE SAENGERFEST PARK AND THAT'S BECAUSE OF VERY SPECIFIC ORDINANCE FROM I BELIEVE 2007.
>> THIS FOOD TRUCK PARK OWNER DOESN'T HAVE THE ABILITY TO SUBLET SPACE OUT TO OTHER VENDORS LIKE THAT, IT HAS TO BE FOOD TRUCK ORIENTED?
>> YEAH, IT HAS TO BE CONCESSIONAL.
THIS IS ONE OF THE THINGS WE'RE PROPOSING TO CHANGE BECAUSE STAFF'S OPINION IS QUICK AT HAND.
RIGHT NOW IT COULD BE NON-FOOD ITEMS, THAT'S ANOTHER QUESTION TO TALK ABOUT.
RIGHT NOW THEY ALL HAVE TO BE IN A VEHICLE OR CONVEYANCE OF SOME SORT MEANT FOR THAT PURPOSE.
POP UP REALLY ISN'T ALLOWED HERE.
>> I NOTICED THAT IN THE ORDINANCE THAT WE'RE LOOKING AT, THERE'S TWO DEFINITIONS OF CONCESSIONS AND YOU'RE WANTING US TO CLARIFY THAT IN THE MOTION?
THIS IS ONE OF THE VERY FEW PLACES WHERE STAFF'S RECOMMENDATION AND COMMISSIONS RECOMMENDATION VARIED A LITTLE BIT.
>> IT'S GOING TO BE ON THE DEFINITIONS HERE.
>> IT'S RIGHT AT THE BEGINNING.
>> BASICALLY, OUR PLANNING COMMISSION SAY WE'RE OKAY LETTING NON-FOOD ITEMS LIKE T-SHIRTS OR SOUVENIRS OR WHATEVER BEING SOLD OUT OF A CONCESSION VEHICLE PROPERLY PERMITTED.
STAFF'S OPINION WAS THAT CONSIDERING THAT ABOUT 90 PERCENT OF OUR COMPLAINTS PROBABLY COME FROM THOSE NON-FOOD MERCHANDISE BECAUSE OF THAT NATURE, IT'S NOT PERISHABLE, THEY TEND TO CREAM OUT FROM THEIR VEHICLE.
STAN'S IDEA WAS PERHAPS WE JUST LIMIT CONCESSIONS TO FOOD ITEMS.
>> I THINK WE'LL NEED TO CLARIFY THAT IN OUR MOTION WHEN WE MAKE IT THIS AFTERNOON.
[01:45:04]
I KNOW YOU'RE FINISHED COUNTING THROUGH THIS, BUT WHEN WE'RE TALKING ABOUT THE PARKS, FOOD TRUCK PARKS AND CANNOT BE PERMITTED WITHIN 100 FEET OF BRICK-AND-MORTAR THAT SELLS SIMILAR GOODS AND I UNDERSTAND THAT AND I'M SURE A LOT OF RESTAURANT TOURS WOULD LIKE TO SEE THAT EVEN LARGER.
BUT I'M THINKING ON THE ONE I'M MOST FAMILIAR WITH, WHICH IS SIAL WHICH THE FOOD PARK IS ACTUALLY OWNED BY A RESTAURANT [LAUGHTER] WHICH IS A BRICK-AND-MORTAR.
WOULD THEY STILL HAVE TO PUT THEIR TRUCKS A 100 FEET FROM YOUR OWN BUSINESS EVEN THOUGH THEY OWN BOTH AND PREVENT BOTH?
>> TECHNICALLY, YES, BUT I SEE WHERE YOU'RE GOING WITH THIS.
YEAH, WE COULD CLARIFY THAT SAY UNLESS THEY'RE OWNED BY THE SAME ENTITY OR SOMETHING.
I THINK THAT'D BE A PRETTY EASY FIX, BUT NO, YOU'RE RIGHT, THAT'S A VERY GOOD POINT.
>> YOU HAD MORE SLIDES AVAILABLE.
>> A FEW MORE. I COULD GO THROUGH PRETTY QUICK.
>> SURE. ONE OF THE BIG THINGS WE'RE CROWS INTO AS A TEMPORARY CONCESSION PERMIT PROCESS OF SOME SORT, RIGHT NOW, WE DON'T HAVE THAT.
FOR EXAMPLE, I HAVE A GENTLEMAN THAT COMES IN FROM CALIFORNIA EVERY YEAR, ANOTHER ONE THAT COMES IN FROM FLORIDA EVERY YEAR, AND ONE THAT COMES IN FROM ARIZONA EVERY YEAR.
THEY PAY THEIR ANNUAL PERMIT TO BE HERE FOR LONE STAR RALLY FOR ONE WEEK AND OUTSIDE OF THE EVENT.
WHEN THEY'RE OUTSIDE THE EVENT THEY FALL INTO THIS CATEGORY.
THEY DON'T HAVE ANY OTHER OPTION AND THAT ALSO IS A PROBLEM FOR, SAY, IF GALVESTON COLLEGE WANTS TO DO SOMETHING AND HAVE A FOOD TRUCK ON THEIR PREMISES.
THEY ONLY HAVE AN ANNUAL PERMIT OPTION AND THEY'RE NOT ZONED FOR A CONCESSION.
NOT HAVING A TEMPORARY CONCESSION PROCESS IS PROBLEMATIC AND THERE'S A HUGE DEMAND AS WAS MENTIONED BEFORE.
EARLIER TODAY, THERE'S A LOT OF TOURISM HERE IN GALVESTON AND A LOT OF FOLKS WANT TO COME IN FOR SPECIAL EVENTS, WHETHER IT BE A ONE WEEKEND THING OR ONE OF THE BIG ONES LIKE MORNING OFF, BUT NOT ALWAYS IN THE EVENT ZONE FOR WHATEVER REASON, AND SO THEY DON'T HAVE A GOOD OPTION SO WE ARE PROPOSING A TOO MUCH CONCESSION [OVERLAPPING]
>> DO WE ALSO CHASE A LOT OF THESE VENDORS ON BUSY WEEKENDS HERE? I KNOW THE MARSHALL DOES AND SO DOES PD CAUSE WILL START GETTING CALLS FROM LOCAL RESTAURANT TOURS.
"HEY, THERE'S A GUY SELLING SAUSAGE AT 27TH AT SEAWALL, THERE'S A GUY SELLING PIZZAS HERE." THESE TRUCKS WILL JUST ROLL IN ON BUSY WEEKENDS SO TRY TO MAKE THEIR MONEY BEFORE WE CATCH THEM, WE'D RATHER HAVE THEM BE PERMITTED, MAKE SURE THEY'RE PROPERLY DISPOSING OF THEIR WASTEWATER, ALL THOSE TYPE THINGS THAT WE MAKE SURE OF AND IT WOULD MAKE IT MUCH EASIER ON THE MARSHALL AND THE POLICE DEPARTMENT THAT I HAVE TO ENFORCE THESE CYNICS.
>> I'VE BEEN AT BABY REVEAL PARTIES WHERE THEY BRING IN A LOBSTER TRUCK AND THAT'S THEIR FOOD.
>> YOU DON'T NEED A PERMIT FOR THAT.
>> YOU DON'T NEED A PERMIT FOR THAT.
>> WE CONSIDER THAT TO BE CATERING.
SOMETHING LIKE THAT IF IT'S NOT OPEN TO THE GENERAL PUBLIC AND IF THEY'RE FUNCTIONING AS A CATERER [INAUDIBLE]
>> WE DEFINITELY WANT TO PROPOSE THAT, AND THERE WAS SOME DISCUSSION FROM OUR PLANNING COMMISSION ABOUT THE FEES AND THEY ACTUALLY RECOMMENDED A LITTLE BIT HIGHER FEE THAN WHAT WE HAD INITIALLY CAME IN WITH AT STAFF'S LEVEL BUT I THINK IT'S GOOD.
>> I HAVE QUESTIONS ON THE FEES.
>> WHY ARE YOU CHARGING A FEE FOR A FOOD TRUCK THAT'S GOING TO A FOOD TRUCK PARK IF THE FOOD TRUCK PARK HAS TO PAY A FEE?
>> WELL, IN THIS CASE IS JUST TEMPORARILY.
>> IF WE WERE INTO THE FEE ZONE, THAT'S MY QUESTION IS WHY IS THAT BEING CHARGED?
>> WHAT IS THAT FEE, DANIEL? I DON'T REMEMBER.
>> FOR THE TEMPORARIES, I BELIEVE WE'RE PROPOSING A $40 [OVERLAPPING]
>> BUT I THINK HE'S TALKING ABOUT IF YOU WANT TO GO INTO A FOOD TRUCK PARK, WHAT IS THAT FEE?
>> IN THIS AUDIENCE IT WOULD BE 250.
>> [OVERLAPPING] PREVIOUSLY IT WAS WHAT?
>> FIVE HUNDRED AT EACH ON CAGE?
NOW, I UNDERSTAND YOUR POINT HERE, WE WERE ALREADY CHARGING THE FOOD TRUCK PARK A PERMIT FEE.
[01:50:03]
THEN WE'RE CHARGING THE FOOD TRUCKS SO WE COULD REDUCE THAT FEE.BUT WE DO NEED SOME FEE OR APPLICATION ASSOCIATED WITH THAT JUST SO WE HAVE THAT TRUCK REGISTERED.
>> THEY ARE ALSO NOT EXACTLY THE SAME ENFORCEMENT PAST THE INDIVIDUAL TRUCK AND THE PARK ITSELF.
>> RIGHT. THE TRUCKS REGULATED BY THE GALVESTON COUNTY HEALTH DISTRICT.
THEY LOOK AT THE TRUCKS, THEY MAKE SURE THAT NOBODY IS GOING TO GET KILLED BY WHAT THE FOOD THEY'RE SERVING.
AS A FOOD TRUCK PERSON, NOT ONLY DO THEY HAVE THAT FEE BUT THEN THEY'RE GOING TO PUT PART OF THAT FEE FROM THE FOOD TRUCK THAT THEY HAVE PLUS THEY'RE GOING TO EITHER CAPTURE A PERCENTAGE OF YOUR SALES AS A FOOD TRUCK PARK OR THEY'RE GOING TO GET YOU WITH ANOTHER FEE AND BY THE TIME ALL SAID AND DONE, ONE DAY'S WORTH OF WORK AND A FOOD TRUCK PARK WITH ALL THOSE FEES, THAT'S A LOT OVERHEAD.
[OVERLAPPING]. FOR A GUY WHO'S PEDDLING ICE CREAM OR KILL BOSSES.
>> I WILL SAY THAT WE TALKED TO SEVERAL FOOD TRUCK OWNERS AND THEY WERE IN AGREEMENT WITH THE FEE STRUCTURE HERE.
BUT I DO UNDERSTAND YOUR POINT, WE'RE DOUBLE TAXING PEOPLE HERE.
>> MY ONLY WORRY IS THAT TO POINT TO THE BUDGET, WE NEED TO MAKE SURE THAT IF WE'RE HAVING TO DEAL WITH IT BY CITY BASIS, THIS IS A NEW AREA THAT IT NEEDS TO COVER OUR COST.
I DON'T KNOW WHAT THAT IS. I'M NOT SAYING 250 COVERS IT WHEN THERE'S TOO MUCH OR NOT ENOUGH, I DON'T KNOW.
>> PROBABLY IF WE'D LIKE TO COVER A COST, IT'LL BE A LOT MORE.
>> [OVERLAPPING] CAN I THROW A QUESTION ON THAT EXACT POINT? DOES THE ORDINANCE REQUIRE ANY HEALTH AND SAFETY BECAUSE MIKE POINTS OUT THAT THE COUNTY IS IN CHARGE OF THAT, DO WE REQUIRE?
>> RIGHT ON THE EDGE BECAUSE THEY DO REQUIRE RECEPTACLES, WHICH [INAUDIBLE]
>> I UNDERSTAND, BUT WHAT DO WE REQUIRE THAT THEY OBSERVE COUNTY REGULATION?
>> [OVERLAPPING] WE DO BECAUSE I DON'T KNOW HOW WELL THE COUNTY MANAGERS OR ENFORCERS THIS BUT IF WE [OVERLAPPING].
BUT WE ALSO WANT THE CAPACITY TO ENFORCE IT.
WE CAN ENFORCE NECESSARILY THE COUNTY RULES, BUT IF WE ADOPT COUNTY RULES, [INAUDIBLE]
>> THE ISSUE COMES IN. WE'LL GET A COMPLAINT ON WEEKEND BECAUSE I'LL GET THESE CALLS MYSELF AND THERE'S A FOOD TRUCK OPERATING AND IT'S PLUGGED IN ILLEGALLY OR THEY'RE DROPPING GRAY WATER OR THINGS LIKE THAT.
YES, THOSE BECOME HEALTH DISTRICT ISSUES.
BUT WHETHER OR NOT THE HEALTH DISTRICT WILL RESPOND AT 2:00 O'CLOCK ON A SATURDAY AFTERNOON [NOISE] BECOMES ANOTHER ISSUE AND WE TYPICALLY HAVE TO HANDLE THAT EITHER THROUGH PV OR THROUGH [OVERLAPPING].
>> SO WE HAVE TO HAVE IN THE ORDINANCE, THE CAPACITY TO [OVERLAPPING]
>> WE CURRENTLY AND WE'LL PROPOSE TO ORDINANCES REQUIRE AGC VALUES GCH, PSD PERMIT AS PART OF OUR PERMANENT PROCESS.
SO THEY WILL HAVE TO GO THROUGH GCHD, WHETHER IT'D BE AN ANNUAL OR TEMPORARY BEFORE THEY EVEN COME TO US AND HOPE TO GET PERMIT.
>> [OVERLAPPING] EVEN IF THE PERMIT IS FROM HOUSTON?
>> YEAH. EACH EACH COUNTY HEALTH DISTRICT HAS KIND OF SWORE INDEPENDENCE, SO YES, THEY WOULD HAVE.
>> OKAY. WE'VE TALKED ABOUT THE APPLICATION FEES ALREADY AND SOME OF THE IDEAS OF INCENTIVIZING THAT.
LOCATION STANDARDS, WE'VE TALKED ABOUT THROUGH DIFFERENT LOCATIONS.
ZONING RESTRICTIONS AREN'T GOING TO CHANGE, IT WON'T BE ALLOWED.
ANNUALS WILL NOT BE ALLOWED EVERYWHERE.
WE ARE PROPOSING TO ADD TRADITIONAL NEIGHBORHOOD INTO THE PERMITTED ZONING FOR COMMERCIAL PROPERTIES AND [INAUDIBLE] WAS MENTIONED.
AND THE OTHER REASON FOR THAT IS ALLOW THOSE TMDS, THE BEACH TOWN, ETC., THEY ALREADY HAVE A COMMERCIAL COMPONENT PLANNED INTO THEIR COMMUNITY.
THEY'RE USING MASTER PLANNING COMMUNITIES THAT HAVE THAT.
SO THE IDEA WAS, WELL, WHY ARE WE LIMITING THEM FROM SOME ABILITY TO HAVE THE CONCESSIONS? THE BUFFER WAS MENTIONED PREVIOUSLY AND WHEREVER IT WAS 75 FOOT, WE'RE MOVING TO A 100, THAT WAS A RECOMMENDATION FROM OUR PLANNING COMMISSION, TO GIVE THE BRICK-AND-MORTAR IS A LITTLE BIT MORE RELIEF.
[OVERLAPPING] [INAUDIBLE] BY THE BRICK-AND-MORTAR.
>> SURE. GISD, THEY WANT A BUFFER FROM SCHOOLS DURING SCHOOL HOURS FOR MOSTLY TRAFFIC PEDESTRIAN SAFETY CONCERNS, AND WE'RE HAPPY WITH THAT.
THAT DOESN'T SEEM TO BE AN ISSUE AND ALMOST NEVER COMES UP, AND THEN WE HAVE A CURRENT BUFFER BETWEEN CONCESSIONS AND RESIDENTIAL ZONING, WHICH WOULD NOT CHANGE.
WE ELIMINATED CRIMINAL BACKGROUND CHECK REQUIREMENTS, KIND OF LEGALS ADVISOR BECAUSE IT'S NOT ACTIONABLE.
[01:55:02]
OUR CURRENT ORDINANCE SAYS YOU HAVE TO HAVE A STATEMENT IF THE OPERA HAS A CRIMINAL RECORD OR BALANCE.BUT IT DOESN'T SAY WHAT WE DO WITH THAT.
BECAUSE OF THAT, BECAUSE THERE ARE STATE LAWS THAT PROHIBIT CERTAIN PEOPLE WITH CRIMINAL ACTIVITIES FROM DOING CERTAIN THINGS IN GENERAL, LEGAL SAID THAT IT'S NOT NECESSARY.
WE CAN TAKE THAT OUT. NEXT SLIDE, PLEASE.
THANK YOU. WE HAVE PRETTY MUCH GONE THROUGH THE TEMPORARY CONCESSIONS.
WE DO HAVE THE PROPOSED FEES THERE, $4 PER DAY UP TO 14 DAYS.
THAT'S A STATE LAW THAT SAYS YOU CAN'T DO MORE THAN 14, BUT COUNCIL COULD ALWAYS SAY UP TO SEVEN OR UP TO FOUR.
SO THERE'S NO MINIMUM, THERE'S A MAXIMUM PER STATE LAW.
THEN $150 FEE FOR LATE SUBMITTALS.
AS BRIAN MENTIONED, JUST BECAUSE IT DOES TAKE SOME ADDITIONAL TIME FROM STAFF TO DROP EVERYTHING WE'RE DOING TECHNICALLY AND-
>> [OVERLAPPING] WE HAVE A LOT OF THESE IN OUR PROCESS WHERE WE ASKED FOR EVERYBODY TO DO BEFORE TEN DAYS BECAUSE WHAT HAPPENS IS AROUND HERE ON FRIDAYS, IF YOU HAVEN'T BEEN AROUND HERE ON FRIDAYS-
>> [INAUDIBLE] [OVERLAPPING] I'LL LEAVE BARELY LEAVING ENOUGH.
>> I [INAUDIBLE] WITH PEOPLE WANTING LAST SPEAKER PERMITS AND THIS PERMIT AND THAT PERMIT FOR THE WEEKEND AND IT CAUSES US TO HAVE TO RUN PEOPLE ALL OVER AND EVERYTHING.
SO I TOTALLY CONCUR WITH THE PLANNING COMMISSION AND WE WILL PROBABLY BE TALKING ABOUT THIS AS WE TALKED ABOUT FEES AND THE FUTURE, THAT IF YOU WANT A PERMIT OUTSIDE OF THE 10-DAY AREA WITHIN THAT TEN DAYS, THEN THERE'S GOING TO BE A COST INCREASE TO YOU FOR YOUR PROCRASTINATION.
>> SO ONE OTHER THING I WANT TO MENTION IS ONCE AGAIN, ON THE SUBJECT OF TEMPORARY CONCESSIONS, WE'RE NOT PROPOSING ZONING RESTRICTIONS ON TEMPORARY CONCESSIONS.
A VERY IMPORTANT REASON FOR THAT, A LOT OF OUR CHURCHES AND SCHOOLS WHO HAVE IN THE PAST HAD TROUBLE GETTING THESE PERMITS, THEY'RE IN RESIDENTIAL ZONING DISTRICTS.
SO IF WE PUT A ZONING RESTRICTION LIMIT ON THE TEMPORARY CONCESSIONS FOR A WEEKEND OR A COUPLE OF DAYS-
>> A CHURCH COULDN'T DO A CARNIVAL.
WE'VE HAD CHURCHES THAT HAVE ASKED ABOUT DOING A BIBLE DAY CAMP.
THAT'S WHY WE SAY NO ZONING RESTRICTIONS FOR TEMPORARY. [OVERLAPPING]
>> THAT'S FOR STATE LAW, BUT YEAH, YOU HAVE THE ABILITY TO SAY WELL, NO MORE BEFORE. [OVERLAPPING]
>> I UNDERSTAND WE CAN'T GO OVER 14.
>> NEXT SLIDE, PLEASE. THE APPLICATION FEES WE'VE REALLY TALKED ABOUT ALL THIS PRETTY MUCH MEAN IT'S ALREADY COME UP IN THE QUESTIONS ALREADY.
ONE THING I WILL POINT OUT IS AS FAR AS ENCOURAGING PEOPLE TO CLUSTER INTO PARKS, THERE'S A POSSIBILITY THAT A LOT OF IT MAY BE MARKET-DRIVEN.
I DON'T KNOW HOW MUCH OF ABILITY WE YOU REALLY HAVE TO DEAL WITH IT.
WE ONLY DO SO MUCH. NEXT SLIDE, PLEASE.
>> [BACKGROUND] WAIT THAT'S IT.
>> VERY GOOD. I'M GOING TO SUMMARIZE SOME THOUGHTS HERE ON THIS, AND WE'VE GOT THREE POINTS THAT WE NEED TO GIVE INPUT ON THE SIDE WITH TAMMY.
ONE IS, AS MARIE MENTIONED ABOUT THE RESTAURANT, THE FOOD TRUCKS NEXT TO A RESTAURANT AND THE BUFFER ZONE.
I'D LIKE FOR YOU, IF YOU WOULDN'T MIND DANNY DRAWING OUT SOME WARNING ON THAT, TO ACCOMMODATE WHAT WE'RE TALKING ABOUT HERE SO COUNCIL CAN SEE THAT IN WRITING WHEN WE VOTE ON THIS, THIS AFTERNOON.
>> IF THAT'S ALRIGHT. WE HAVE ALSO THE THREE PARKS SITUATION.
DOES COUNCIL HAVE ANY DIRECTION. I DON'T REALLY [OVERLAPPING]
>> THREE, PER LIMIT THREE PARKS.
>> THREE PARKS. IT DOESN'T MATTER TO ME.
>> I DON'T THINK WE SHOULD LEND IN IT. [OVERLAPPING]
>> AS I SAID JEROBOAM HILLS SAID THAT, "NOBODY OBJECTED TO THIS BECAUSE OF THE INCREASED COST OF TRYING TO OPERATE MORE THAN THREE PARKS." "FEEL ABOUT IT " THAT'S WHAT SHE SAID.
>> I DON'T HAVE REALLY ENDING ONE WAY OR THE OTHER, I WOULD JUST SAY THAT THE THREE IS JUST A NUMBER THAT WAS CHOSEN AND THERE'S NO REAL SIGNIFICANCE IN THAT NUMBER.
>> IF WE KNOW WE ALREADY HAVE FOUR WHY NOT MAKE IT FOUR? WE KNOW WE HAVE FOUR CERTIFIED FOOD PARKS.
>> WELL, PROBABLY HAVE FIVE NEXT MONTH.
>> IT DOES COME AND GO YES, IT DOES. YEAH.
>> WHAT'S YOUR THOUGHTS ON IT?
>> I WOULD THINK THAT THREE OR FOUR WOULD BE A GOOD PLACE TO START.
THERE ARE SOME OTHER CITIES THAT HAVE THAT LIMIT IN TEXAS, IT'S NOT NECESSARILY A STANDARD IT'S FAIRLY COMMON.
WE CAN ALWAYS AMEND THIS LATER IF IT TURNS OUT TO BE A PROBLEM, WE CAN ALWAYS COME BACK TO COUNCIL AND SAY, "HEY, BECAUSE OF THIS."
[02:00:02]
>> I HOPE THE PROBLEM [OVERLAPPING] IS WE HAVE A LOT OF GOOD FOOD TRUCK PARKS.
>> WHEN PEOPLE OBJECT TO CHANGING INTO FOUR.
>> MAYOR I HAVE A QUESTION. ARE WE SETTLED IN THIS ON WHAT THE DEFINITION OF CONCESSIONS DO WE NEED?
>> WE'RE GOING TO GET TO THAT. LET'S MAKE IT FOUR, WHEN YOU MAKE YOUR CHANGES, MAKE IT FOUR AND LET'S SEE WHERE WE STAND WITH THAT, WITH COUNCIL.
>> I'VE GOT ONE QUESTION JUST SO HAPPENED THAT SOMEONE IS BLESSED WITH TWO FOOD TRUCKS.
THE SAME THING. THEY CAN PUT ONE FOOD TRUCK IN ONE PARK AND ONE IN THE OTHER.
>> THEY WOULD HAVE TO PERMIT EACH FOOD TRUCK SEPARATELY.
>> EACH FOOD TRUCK HAS CATERED TO THREE OR FOUR PARKS WHEREVER THE NUMBER IS.
>> DID WE HAVE THE DEFINITION OF CONCESSIONS? PERSONALLY, I'D LIKE THE ONE THAT STAFF HAS RECOMMENDED TO NOT INCLUDE RETAIL ITEMS THERE.
THAT'S JUST ME BUT PUTS SOME THOUGHTS ON THAT.
>> WHEN YOU SAY RETAIL, I MEAN, ONLY FOOD CAN BE SOLD WITHIN THE FOOD COURT?
>> I CAN SELL MY T-SHIRTS WITH MY BARBECUE SHOP.
>> WITH YOUR OWN SAM'S BARBECUE THAT CAN'T SELL THEIR SHIRT?
>> NO THERE MAY BE A POSSIBLE SOLUTION TO THAT BUILT INTO THE ORDINANCES.
THAT IS THAT WE SAY THAT ALL THE MERCHANDISE HAS TO BE WITHIN THE TRUCK.
YOU COULD CONCEIVABLY HAVE YOUR T-SHIRTS, WITH YOUR BARBECUE, WHATEVER, AS LONG AS THEY ARE PROPERLY STORED AS DISPLAYED.
BUT WHAT HAPPENS IS WHEN THEY ARE PURELY RETAIL, AND THERE'S NO FOOD ITEMS, IT'S ALL NON-PERISHABLE STUFF THAT DOESN'T SPOIL.
IT TENDS TO CREEP OUT OF THE CONVEYANCE.
THAT'S WHY WE HAD THIS DIFFERENCE OF OPINION.
BUT YEAH, I UNDERSTAND YOUR POINT AS WELL.
I BELIEVE THAT WAS BROUGHT UP IN OUR DISCUSSIONS AT PLANNING COMMISSION ALSO.
>> ARE YOU SAYING IT'S IN THE ORDINANCE TO ALLOW THE SELLING OF T-SHIRTS FOR BOB'S BARBECUE, THEY'RE SELLING BARBEQUE.
>> YEAH WE'LL NOT SPECIFICALLY, BUT THERE IS THAT PROVISION SAYS EVERYTHING HAS TO BE WITHIN THE TRUCK.
IF THEY'RE SELLING FOOD, T-SHIRTS IT'S PROBABLY A BETTER CHANCE THAT WILL HAPPEN IF THEY'RE JUST SELLING STUFF THAT DOESN'T PERISH.
>> WELL, OKAY. BUT BY THIS DEFINITION THOUGH, WITHIN A FOOD TRUCK COURT, WE WOULD NOT ALLOW A POP-UP T-SHIRT VENDOR WHO JUST GOES AND SELLS T-SHIRTS OUTSIDE A TRUCK.
>> IT'S GOT TO BE INSIDE A TRUCK.
>> BUT IT HAS TO BE ANSWERORY TO THE SALE OF THE FOOD AND NOT INDEPENDENT VENDORS SELLING TRINKETS OR POTTERY OR T-SHIRTS OR WHATEVER IN A POP-UP TENT.
>> THIS IS SOLELY IN A CERTIFIED FOOD TRUCK PARK BASIS ANYWHERE.
>> THE TEMPORARY WOULD BE DIFFERENT BECAUSE ONCE AGAIN, WE DO HAVE A LOT OF FOLKS THAT COME IN FOR LITTLE STAR AND MARDI GRAS THAT ARE SELLING NON-FOOD ITEMS. THE TEMPORARY CONCESSION WOULD BE DIFFERENT ALMOST HAS TO BE BY FUNCTION, WHAT OUR TOURISM INDUSTRY IS LIKE.
THIS WOULD BE MORE OF A PROHIBITION ON THE ANNUALS BECAUSE THAT'S WHERE MOST OF OUR COMPLAINTS COME FROM. BUT YEAH.
>> THE VENDORS THAT YOU SEE DURING ART THAT ARE SELLING ART OR THIS OR THAT OUTSIDE OF STORES.
NOW, THEY WOULD HAVE TO GET A TEMPORARY OR THEY ALWAYS HAD TO GET A TEMPORARY?
>> NO WE'RE GOING TO MAKE IT MORE COMPLEX [LAUGHTER] A LOT OF THAT STUFF THAT GOES ON IN THE RIGHT-OF-WAY AND IT EVOLVES THE SIDEWALK OR THE STREET.
IT GOES THROUGH OUR PARKS DEPARTMENT IT'S A SPECIAL CONVEYANCE, SO THAT WOULDN'T CHANGE.
>> THIS IS JUST FOR THE FOLKS WHO ARE HERE FOR JUNETEENTH OR THEY'RE HERE FOR MARDI GRAS OR THEY ARE HERE FOR AS FAR AS THE TEMPORARIES GO.
THOSE OTHER THINGS LIKE THE FARMER'S MARKET, FOR EXAMPLE, THEY HAVE SPECIAL CONVEYANCES.
WHAT'S THE CODE FOR USING GENERATORS, DECIBELS?
>> CURRENTLY, WE REQUIRE THAT ALL CONCESSIONS BE OPERATING THERE OFF OF A, A GENERATOR OR B, A DEDICATED METERED T-POLL.
WE ARE PROPOSING TO CHANGE THAT AND EXPANDED IT A LITTLE BIT FOR A COUPLE OF REASONS.
FIRST OF ALL, IF WE HAVE A FOOD TRUCK IT'S PROBABLY OUR CURRENT ORDINANCES.
IF WE HAVE A FOOD TRUCK AND THEY'RE NOT REQUIRED TO MOVE.
THEY SAY I'M OPERATING OFF A GENERATOR.
YOU CAN'T OPERATE A FOOD TRUCK 24/7 OF A GENERATORS, IT'S NOT PRACTICAL.
THESE PEOPLE, A LOT OF THEM ARE QUITE POSSIBLY PLUGGING IN WAYS THEY ARE TECHNICALLY NOT ALLOWED.
DOES THAT MEAN THAT THEY'RE UNSAFE? NOT NECESSARILY.
[02:05:01]
WE ARE PROPOSING TO EXPAND AND THIS IS ONCE AGAIN INPUT FROM OUR BILLING DEPARTMENT OUR TEAM BUILDING OFFICIAL, AND FROM CHRIS HARRISON FIRE DEPARTMENT.THEY GAVE US AN INPUT AND SAY, "WELL, REALLY IF THEY'RE PLUGGING INTO POWER, ANYTHING THAT'S PROPERLY PERMANENT AND INSPECTED BY AN ELECTRICIAN, FOLLOWS OUR CODES, SHOULD BE FINE." THERE SHOULDN'T BE A LIFE SAFETY ISSUE.
I COULD NOT HAZARD A GUESS AS TO WHY THE ORIGINAL AD HOC COMMITTEE ONLY SIT ALONG THOSE TWO COULDN'T SAY. YEAH.
>> MY QUESTION, I GUESS, ALONG THAT LINE.
A CERTIFIED FOOD PARK, ARE THEY REQUIRED TO HAVE RESTROOMS?
>> THEY HAVE TO HAVE A RESTROOM.
>> THEY WOULD GET OUR [INAUDIBLE] GARBAGE DISPOSAL.
>> NO, I DIDN'T SEE ANYTHING FROM THAT AREA.
>> OUR ORDINANCE DOES NOT REQUIRE IT.
I DON'T BELIEVE [OVERLAPPING] THEY HAVE TO REQUIRE RESTROOM ACCESS AND HAND WASHING FOR EMPLOYEES OF THE FOOD TRUCKS.
I DON'T BELIEVE THEY HAVE TO HAVE IT FOR THE PATRONS.
I MEAN THE IDEA IS SORT OF GRAB-AND-GO.
OF COURSE, FOOD TRUCK PARKS CAN BECOME DESTINATIONS.
>> BUT THEY ARE REQUIRED TO HAVE RESTROOM ACCESS BY GCHD STANDARDS FOR EMPLOYEES OF THE FOOD TRUCK.
>> BUT NOT NECESSARILY FOR PATRONS AS MY UNDERSTANDING FROM GCHD.
>> [OVERLAPPING] THIS DOESN'T HAVE ANYTHING IN THERE.
>> BUT FOR HEALTH STANDARDS, THEY HAVE TO HAVE A PLACE TO WASH THEIR HANDS.
>> THE QUESTION ABOUT THE DEFINITION OF CONCESSIONS IS THAT PART THAT'S HIGHLIGHTED IN GREEN IN THE PACKET, AND WE NEED TO DECIDE WHICH OF THOSE WE GO WITH.
I WOULD PREFER STAFF'S RECOMMENDATION BECAUSE IT'S PERISHABLE GOODS, FOOD ITEMS, AND COMMODITIES THAT'S WHY IT DOES NOT ALLOW THE NON-PERISHABLES.
>> RIGHT, BUT IT GIVES [OVERLAPPING] IS THAT YOUR RECOMMENDATION AS WELL?
>> YES, THAT'S THE RECOMMENDATION. [OVERLAPPING]
>> THE STAFF RECOMMENDATION? [OVERLAPPING].
>> AS TO THE COST OF THIS [INAUDIBLE]
>> SO WE'RE CLEAR THAT IT'S SOMETHING WE NEED TO BE CLEAR ON WHEN WE PASS THIS?
>> IF YOU'LL PUT THOSE THOUGHTS ON THOSE THREE THINGS THEN, DANIEL, IN WRITING TO SO THAT THAT CAN BE WHEN WE MAKE THE MOTION THAT WE BE VERY CLEAR ON WHAT WE WANT TO AMEND.
>> NOW, THERE WAS ONE MORE DIFFERENCE OF OPINION.
>> BETWEEN STAFF AND THE PLANNING COMMISSION AND THIS IS A FAIRLY MINOR ONE. LET'S SEE.
THE PLANNING COMMISSION'S IDEA WAS TO PROHIBIT THE INDIVIDUAL FOOD TRUCK BY THEMSELVES IN A GAS STATION PARKING LOT, FOR EXAMPLE, NOT IN PARK, TO NOT BE ALLOWED ANY SEATING.
ONLY ALLOW SEATING IN FOOD TRUCK PARKS.
[NOISE] STAFF'S RECOMMENDATION WAS JUST KEEP IT CONSISTENT.
>> I WOULD AGREE WITH THAT [INAUDIBLE] STAFF RECOMMENDS.
>> ESPECIALLY IN FOOD. [OVERLAPPING]
>> SO THIS WAS A THOUGHT THERE [OVERLAPPING]
>> IT MIGHT BE THE ONLY PLACE THEY CAN GO FOR LUNCH.
>> WE'RE TRYING TO PUSH THESE TRUCKS INTO A PARK, NOT INTO A GAS STATION PARKING LOT.
YOU DON'T HAVE TO HAVE PARKING REQUIREMENTS, YOU DON'T MEET ANY OF THESE PARKING REQUIREMENTS OR ANYTHING LIKE THAT FOR FOOD TRUCK IN A GAS STATION PARKING LOT, AND USUALLY THERE IS PARKING BUT NOT NEEDED.
THE THOUGHT WAS THAT IT'S MORE OF A GRAB-AND-GO KIND OF THING, YOU ORDER YOUR FOOD AND YOU GO, YOU DON'T EAT ON-SITE.
THOSE ARE THE REASONS WHY THE COMMISSION RECOMMENDED THAT.
I WANT TO SEE FOOD TRUCKS IN FOOD TRUCK PARKS BUT I DON'T REALLY HAVE A REAL SOLID OPINION.
>> BUT WE HAVE FOOD RELATED PLACES WHERE THERE ISN'T MANY RESTAURANTS OR WHATNOT, WHERE FOOD TRUCKS HAVE GONE IN AND YOU SEE PEOPLE EATING THERE.
I THINK HAVING SEATING FOR SIX IS NOT AN ISSUE.
>> BUT YOU'RE ALSO HAVE PLENTY OF PLACES WHERE THESE PULL UP IN A GAS STATION PARKING LOT, BASICALLY WITH IN SIGHT OF A DOOR OF A RESTAURANT TOO.
>> YOU GOT ALL THESE GAS STATION PARKING LOTS THAT SERVE FOOD WITHIN A GAS STATION AND THE FOOD TRUCKS ARE [INAUDIBLE] TOO.
>> BUT THEY'RE ALLOWING THAT, RIGHT?
>> OH, YEAH. THEY'RE TOTALLY ALLOWING IT BECAUSE THEY'RE MAKING MONEY RENTING THAT SPACE TO THE FOOD TRUCK.
TO BE HONEST WITH YOU, WE HAVE HAD ZERO RESTAURATEURS COMMENT ON THIS.
[02:10:01]
>> I'VE HAD A LOT OF COMMENTS FROM RESTAURATEURS.
>> YEAH, I'M HEARING IT. [OVERLAPPING]
>> WE'VE HAD ZERO COME TO THE PLANNING COMMISSION.
NO COMMENTS AT ALL DIRECTED TOWARDS STAFF.
WHEN THIS ORDINANCE GOT ADOPTED BACK IN [OVERLAPPING]
>> 2015, THERE WAS A HUGE OUTCRY FROM THE RESTAURATEURS.
"IT'S GOING TO HURT MY BUSINESS," "THE [INAUDIBLE] IS GOING TO BE INUNDATED WITH FOOD TRUCKS." THE ORDINANCE GOT PASSED, THAT DIDN'T HAPPEN.
I THINK MOST RESTAURATEURS UNDERSTAND THAT THEIR BUSINESS MODEL IS A TOTALLY DIFFERENT BUSINESS MODEL THAN A FOOD TRUCK BUSINESS MODEL, AND THE PERSON IN THAT FOOD TRUCK IS PROBABLY NOT GOING TO AFFECT THEIR BUSINESS AND I THINK THAT'S WHY WE HAVEN'T SEEN THEM AT ONE OF 13 MEETINGS THAT WE'VE HAD AT PLANNING COMMISSION.
>> ALL OF WHICH WERE PROBABLY NOTIFIED AND[OVERLAPPING].
>> I MEAN, I HAVE HAD COMMENTS.
>> THEY WERE TOO BUSY TO COME [LAUGHTER].
>> THAT'S A GREAT PROBLEM TO HAVE [NOISE].
>> I USED TO GET COMPLAINTS [OVERLAPPING].
>> I THINK THEY WANT TO MAKE SURE OF THEIR.
OF YOU OWN A BRICK-AND-MORTAR, YOU HAVE TO PLAY [INAUDIBLE], WINDSTORM, HOMEOWNERS IN WHATNOT
>> SO A LOT OF IT IS [INAUDIBLE] [OVERLAPPING].
>> YEAH, I UNDERSTAND ALL THAT.
>> I GOT COMPLAINTS [OVERLAPPING].
>> YOU SEE THOUGH IT'S A DIFFERENT MODEL WHEN RESTAURANT OWNERS ALSO HAVE A FOOD TRUCK, AND THERE'S SEVERAL OF THEM TO DO THAT.
>> AT KIDS GRANT ART FESTIVAL, THERE ARE TWO SOFT SERVED AND A SNOW CONE THAT GO THERE AND WE OUTPERFORM THEM HANDS DOWN. THAT'S A BRICK-AND-MORTAR.
>> LET'S GO AHEAD WITH [OVERLAPPING] ON THE SEATING [LAUGHTER] [OVERLAPPING] AND THE WORDING THAT, SO WE ALL HAVE THAT SO THAT WHEN WE MAKE THE MOTION WE'LL BE ABLE TO [OVERLAPPING]
>>YES, SHARON, I'M SORRY. [OVERLAPPING].
>> I JUST HAVE A QUESTION. I JUST NEED CLARIFICATION, SO I THINK IT'S 37 AND [INAUDIBLE] BECAUSE SOMETIMES WE GO OUT THERE AND IT'S A FOOD TRUCK WITH A SITTING AREA AT A GAS STATION.
>> 35TH? SO DOES THAT MEAN THAT THAT KIND OF SITUATION WILL GO AWAY FOR THAT FOOD TRUCK?
>> JUST THE SEATING, IF IT IS PASSED WITH PLANNING COMMISSION RECOMMENDATIONS.
>> RIGHT BUT THE SEATING FOR THE SIX OR WHATEVER WOULD GO AWAY.
>> BUT STAFF IS RECOMMENDING TO ALLOW THOSE SIX SEATS TO REMAIN.
>> HE'S GOING TO WRITE THESE, THERE'S GOING TO BE FOUR OF THEM.
THE WORDING FOR US WHEN IT COMES TO THE MOTION WE'LL HAVE THAT AND IF WE WANT TO [NOISE] SUPPORT THAT OR NOT, WE'LL HAVE IT FOR ANOTHER STAFF.
VERY GOOD. DANIEL, ANYTHING ELSE YOU WANT TO SAY, SIR?
YOU ALL COME HAMMERING THROUGH THIS [OVERLAPPING]
>> CAN I ASK ONE MORE QUESTION? I'M SORRY.
WE'RE GOING FROM RIGHT NOW THEY COULD HAVE FOUR SANDWICH BOARDS TO ONE.
>> YEAH. WE'RE BASICALLY OUTLINING [NOISE] ARTICLE 5 OF OUR LAND DEVELOPMENT REGULATIONS FOR SIGNAGE.
WE'RE JUST OUTLINING THEM ON WHAT'S ALREADY ON THE BOOKS INSTEAD OF GIVING THIS EXCEPTION THAT NO ONE HAS EVER ACTUALLY DONE.
>> THEY WERE GOOD WITH THAT [OVERLAPPING]
>> YEAH. I DON'T RECALL ANY OF THE CONCESSION FOLKS SAYING ANYTHING ABOUT THAT.
>> DANIEL, ARE YOU GOOD WITH GETTING US THOSE REVISIONS BY OUR MEETING THIS AFTERNOON?
I TALKED TO DON PREVIOUSLY, I KNOW SHE'S CAUGHT UNDER THE WEATHER, BUT I TALKED TO DONNA PREVIOUSLY.
I THINK THAT THESE ARE FAIRLY EASY TWEAKS TO MAKE.
WE CAN GET A DRAFT ORDINANCE GENERATED AT THE TIME FOR THE MEETING THIS AFTERNOON.
>> YEAH. I'LL PUT THIS ON THE WORKSHOP AGENDA AND OUR REGULAR MEETING AGENDA TODAY.
WE WORKSHOP, AND THEN THEY COME BACK ON OUR NEXT MEETING.
>> BUT STAFF HAD SOME CONCERNS THAT THEY DIDN'T WANT TO GET THIS IN EFFECT AS SOON AS POSSIBLE.
>> PLUS THIS WAS, THE WAY YOU DID THIS DOCUMENT WAS EXCELLENT.
IT MADE IT EASY TO READ THROUGH WHAT THE CHANGES WERE. I UPLOAD YOU. [OVERLAPPING]
>> YOU HAD YOUR COMMENTS THERE, AND THAT WAS VERY GOOD.
THIS GOES INTO EFFECT IF WE APPROVE THIS JANUARY 1ST.
>> IT WOULD IMMEDIATELY, RIGHT JOHN?
>> IT WOULD ACTUALLY BE IMMEDIATELY FOR NEW.
[02:15:02]
OF 2023 EVERYONE WOULD BE ON THE SAME PAGE.>> WE WERE ALSO HOPING TO HAVE THAT APPROVED QUICKLY BECAUSE WE'RE STILL ON THE PEAK OF OUR TOURISM SEASON.
I WILL SURE ALLOW THOSE TEMPORARIES WAY TO JUMP ON THE [LAUGHTER] BANDWAGON.
>> CHURCHES OF GALVESTON COLLEGE AND THEIR PLACES ARE STILL HAVING TEMPORARY ADVANCES, IT'D BE PROBABLY USEFUL AT LEAST TO HAVE THEIR TEMPORARY PLACE.
>> SOUNDS GOOD. JOHN, ANY OTHER COMMENTS?
>> NO. JUST STAFF DID A GREAT JOB.
PLANNING COMMISSION DID A GREAT JOB.
THEY WORK THROUGH THIS DILIGENTLY. [OVERLAPPING]
>> I DID NOTHING. [LAUGHTER] I JUST SAT THERE AND LISTEN.
>> WELL, [NOISE] AS YOU CAN TELL, THIS CAN BE A VERY DIFFICULT SITUATION, VERY COMPLEX.
BOB, DID YOU WANT TO SAY ANYTHING? [NOISE].
>> MAYBE JUST ONE LITTLE CLARIFICATION ADDRESSING AND LIKE DAVID MENTIONED, HEALTH DEPARTMENT.
[NOISE] WELL, ONE OF OUR GUIDING PRINCIPLES WAS, OF COURSE TRYING TO DRIVE THESE FOOD TRUCKS TO FOOD TRUCK PARKS FOR A LOT OF DIFFERENT REASONS.
THEN ANOTHER ONE WAS TO AVOID ANY DUPLICATION OR CONFLICT WITH HEALTH DEPARTMENT.
BECAUSE IN OUR MEETINGS WITH THE OPERATORS, THAT WAS ONE OF THE MAIN THINGS THAT CAN COME ABOUT FROM NOWHERE AND OVERHAND WAS, WHO'S IN THE DRIVER'S SEAT WITH ALL THIS.
WE WENT THROUGH IT, TOOK A LOT OF TIME GOING THROUGH, HOW DO WE REGULATE THE GRAY WATER TANK, THE FRESH WATER TANKS, THE SEWAGE AND ALL THIS STUFF? RATHER THAN TO TAKE A LAUNDRY LIST OF WHAT THEY SHOULD AND SHOULDN'T DO, WE REFERENCED TO THE COUNTY HEALTH DEPARTMENT.
IN FACT, WE HAD A PRESENTATION FROM THE OFFICIAL [INAUDIBLE] YOU'LL SEE [NOISE] IN OUR ORDINANCE THERE ARE REFERENCES [NOISE] TO MAKE SURE THAT I HAVE THE COUNTY HEALTH DEPARTMENT PERMIT AND DISPLAY AND THEY CONFORM TO ALL THE COUNTING RULE. WE DID COVER THAT.
>> THANK YOU, BROTHER BENSON. THANKS, PLANNING COMMISSION, PLANNING STAFF, DID A GREAT JOB ON THESE.
WE'LL ADDRESS THIS TODAY [NOISE] THIS AFTERNOON AT 5:00 PM. THANK YOU AGAIN.
>> THANK YOU. [OVERLAPPING] [NOISE]
[4.D.Discussion Of Short Term Rental Software, Registration And Related Topics (Legal - 1 Hour)]
WE HAVE SOME GUESTS FOR ITEM 4D. THEY'RE HERE.[NOISE] TODAY, I TALKED TO MIKE AND BRYAN.
[NOISE] IF IT MATCHED YOUR APPROVAL, WILL MOVE INTO THE SHORT-TERM RENTAL, AND THEN WE'LL COME BACK TO BUDGET PRESENTATION ON THAT.
DOES ANYBODY HAVE ANY CONCERNS TO THAT?
>> THIS IS LOOKING LIKE TWO O'CLOCK [INAUDIBLE]
>> WE MAY NOT GET THROUGH ALL OF OUR ITEMS IF WE WANT TO.
>> VERY GOOD. [OVERLAPPING] BRYSON, COME ON UP.
>> REMEMBER COUNCIL LIKE ME, I'LL SIT WHEREVER YOU WANT. [OVERLAPPING].
>> WE HAVE A COUPLE OF CHAIRS HERE.
>> I CERTAINLY DO HAVE A GUEST WITH ME.
>> YES PLEASE, COME SIT NEXT TO ME.
>> IN THAT WAY IF THERE'S ANY WRATH TO THE COUNCIL, I'M GOING TO DIRECT IT RIGHT AT HERE.
I JUST GAVE THE POWERPOINT PRESENTATION TO GINELLE SO SHE CAN PULL IT UP.
I DID BRING HARD COPIES JUST IN CASE COUNCIL WANT A HARD COPY.
>> WITH ME TODAY I HAVE A GENTLEMAN NAMED MAC CURTIS.
MAC CURTIS IS THE FOUNDER OF A GROUP CALLED THE SMART CITY POLICY GROUP.
THEY DO A NUMBER OF DIFFERENT THINGS.
BUT PARTICULARLY FOR US, WE BROUGHT HIM ON AS A CONSULTANT TO HELP US.
WE WERE GOING TO GET INTO IT A LITTLE BIT IN PRESENTATION, TO HELP US WITH THIS REPORT THAT WE'RE GIVING YOU TODAY, AND ALSO TO HELP US WITH A REQUEST FOR PROPOSAL TO UPDATE OUR SOFTWARE SYSTEM WITH ALL THE ORDINANCE CHANGES THAT HAVE HAPPENED.
THEY WERE SUCCESSFUL, THEY WERE GOOD CHANGES. WE'LL GET INTO THAT.
BUT IT SHOWED US THAT WE NEED TO UPDATE OUR SOFTWARE.
WE'RE GOING TO GET INTO THAT JUST A LITTLE BIT. THIS IS MAC CURTIS.
THEN WHAT WE HAVE FOR YOU TODAY COUNCIL AND MR. BARRETT IS A REPORT.
WE WENT AND LOOKED AT OTHER CITIES.
WE FOUND OTHER CITIES THAT WE THOUGHT MIGHT BE COMPARABLE TO US AS A TOURISM DESTINATION AREA.
WE WANT TO LOOK AT SOME TEXAS CITIES, [NOISE] BUT WE ALSO WENT OUT AND LOOKED AT SOME OTHER CITIES OUTSIDE OF TEXAS AND WE WANTED TO SEE WHAT WERE THEY DOING IN TERMS OF SOFTWARE.
WHAT SOFTWARE WERE THEY USING FOR HOTEL OCCUPANCY AND TAX COLLECTION, FOR REGISTRATION OF SHORT-TERM RENTALS, AND THINGS LIKE THAT.
WE ALSO WANTED TO SEE WHAT WERE THEY DOING FROM AN ORDINANCE PERSPECTIVE AS IT RELATES TO REGISTRATION.
WHAT FEES WERE THEY CHARGING FOR REGISTRATION? HOW OFTEN DO YOU HAVE TO RENEW YOUR REGISTRATION? THEN WE ALSO LOOKED AT ENFORCEMENT.
HOW THEY WERE ENFORCING THEIR ORDINANCES THAT THEY HAD ON THE BOOKS.
THIS REPORT IS JUST INFORMATIONAL, THERE'S NO RECOMMENDATION, POLICY RECOMMENDATIONS, OR OTHER RECOMMENDATIONS.
[02:20:01]
THIS IS JUST TO PROVIDE COUNCIL WITH THE RESULTS OF OUR SURVEY OF OTHER CITIES, SO WE CAN START THE CONVERSATION OF HOW YOU REGULATE SHORT-TERM RENTALS.WE'RE GOING TO GO AHEAD AND START WITH THE PRESENTATION.
THE FIRST THING THAT WE NEED TO DO IS WE'VE GOT TO UNDERSTAND THE ISSUE.
I'M JUST GOING TO TOUCH ON A COUPLE OF THESE BULLETS.
I'LL TURN IT OVER TO MATT AND THEN I'LL CLOSE IT OUT.
IF YOU'VE SEEN A HUGE EXPLOSION IN SHORT-TERM RENTALS ON THE ISLAND, IT'S HAPPENING, IT'S OUT THERE, IT'S NOT AN ILLUSION. WE'VE SEEN IT TOO.
AS A MATTER OF FACT, SINCE 2017, WE'VE SEEN A 97 PERCENT INCREASE IN OUR REGISTERED SHORT-TERM RENTALS.
IN 2017, IT WAS ABOUT 2,100 REGISTERED SHORT-TERM RENTALS.
AS OF YESTERDAY, IT WAS 4,420 REGISTERED SHORT-TERM RENTALS.
YOU'RE GOING TO HEAR ME USE THE TERM REGISTERED BECAUSE THOSE ARE WHAT WE KNOW ARE IN THE MARKET.
OF COURSE, THERE'S GOING TO BE SOME UNKNOWNS OUT THERE.
IT'S HARD TO QUANTIFY EXACTLY HOW MANY SHORT-TERM RENTALS ARE ON THE ISLAND.
THERE'S A NUMBER OF FACTORS FOR THAT, BUT I WOULD REASONABLY SAY THAT SOMEWHERE BETWEEN 4,500 AND 5,500 IS A PRETTY SAFE ESTIMATE BASED OFF OF WHAT WE'VE SEEN.
WITH OUR CURRENT GROWTH TREND, OUR REGISTRATION GROWTH TREND, WE CAN POSSIBLY END THE YEAR WITH AROUND 4,900 REGISTERED SHORT-TERM RENTALS.
WE'VE SEEN THIS HUGE EXPLOSION.
WITH THAT, I'LL TURN IT OVER TO MATT TO ADDRESS THE COMMUNITY CONCERNS.
>> HI EVERYBODY. MY NAME IS MATT CURTIS AND LIKE BRYSON SAID A FOUNDER OF THIS GROUP, BUT MY BACKGROUND IS IN CITY GOVERNMENT AS A LAST COUPLE, MAYORS OF AUSTIN, HAD A COUPLE OF OTHER ROLES WITH THE CITY OF AUSTIN ON TRANSIT AUTHORITY THERE.
NOW A BUNCH OF FORMER STAFF MEMBERS AND FORMER OFFICIALS FROM AROUND THE COUNTRY WORK WITH ME.
PRIMARILY WE WORK ON THIS ISSUE AND ONE OF THE REASONS IS BECAUSE LIKE WHAT BRYSON SAID, WE'RE SEEING SUCH CHANGE SO QUICKLY IN THE INDUSTRY, IN THIS SPACE AND YOU'RE SEEING PEOPLE GET INVOLVED.
BUT YOU'RE ALSO SEEING A DIFFERENT TYPES OF MODELS OR SHORT-TERM RENTALS POP UP.
PROBABLY IN A TOWN LIKE GALVESTON, WE HAD OUR TRADITIONAL NON-OWNER-OCCUPIED SECONDARY HOME VACATION RENTAL.
BUT ABOUT TEN YEARS AGO OR SO, WE STARTED SEEING THE PROLIFERATION OF THE HOME SHARING MODEL.
THE PRIMARY HOME, SOMEBODY WHO IT'S THEIR HOME, IT'S GOT THEIR PRODUCTS IN IT, THEIR STUFF AND THEY DECIDED THEY WANTED TO RENT IT OUT.
THAT REALLY BECAME FAMOUS BECAUSE OF AIRBNB.
THAT WAS THEIR ORIGINAL MODEL.
BUT NOW OF COURSE, ALL THE DIFFERENT ONLINE TRAVEL AGENCIES TAKE ON ALL TYPES OF DIFFERENT INVENTORY SO THEY CAN HAVE NON-OWNER-OCCUPIED HOMES AND HOME SHARING AND BEYOND ANY OF 35 DIFFERENT LARGER MARKETPLACES THAT ARE OUT THERE.
ONE OF THE THINGS THAT YOU GUYS, OF COURSE, HEAR ABOUT IS THE COMMUNITY CONCERNS AND THAT'S WHAT BRYSON AND TEAM WE HAVE TO TALK ABOUT FOR A QUICK SECOND.
YOU GUYS KNOW THE BIG ONES, NOISE, PARKING, TRASH, OCCUPANCY, AFFORDABILITY, HOME INVENTORY OF PROPERTIES, AND HOME AFFORDABILITY.
THEN OF COURSE, ONE THAT'S HARD TO QUANTIFY NEIGHBORHOOD CHARACTER.
SOME FOLKS WILL JUST NOT ONE SHORT-TERM RENTALS MAYBE IN THEIR COMMUNITY.
THAT'S A TOUGH ONE BECAUSE IT'S A CONSTANTLY EVOLVING INDUSTRY.
IT IS VERY NUANCED AND WE'RE SEEING ALL THESE NEW MODELS POP UP ALL THE TIME.
SOMETIMES THERE MAY BE MORE BENEFICIAL FOR BUSINESS TRAVELERS, LIKE MORE TRADITIONAL TOWARDS A CORPORATE APARTMENT STYLE PROPERTY.
THOSE HAVE 24-HOUR POINTS OF CONTACT.
WE'RE MAKING SURE THAT THERE AREN'T ANY ISSUES AND THE COMPLIANCE IS FOUND.
THAT'S ONE OF THE THINGS WE FOCUS ON WHEN WE TALK ABOUT THE COMMUNITY CONCERNS.
WHAT CAN WE DO TO DEVELOP A SITUATION WHERE YOU GUYS CAN ACHIEVE COMPLIANCE? COMPLIANCE IS DEFINITELY A BIG CHALLENGE.
>> CAN I ASK YOU TO MOVE A LITTLE CLOSER TO THE TABLE? OUR MICROPHONE IS OVER HERE.
>> OH, I'M SO SORRY. SORRY ABOUT THAT.
>> NOBODY'S EVER SAID THAT BEFORE.
[LAUGHTER] I THOUGHT YOU WERE GOING TO TELL ME TO BE QUIET.
REALLY RULES THAT ACHIEVE COMPLIANCE ARE A CHALLENGE.
IF WE WERE TO JUST LOOK AT OTHER CITIES, I WOULD NEVER PUT THIS TOGETHER.
BUT I FIND SO FEW EXAMPLES OF CITIES THAT ACTUALLY ACHIEVE A REASONABLE LEVEL OF COMPLIANCE, IF YOU WERE JUST TO TAKE A BROAD SET OF DIFFERENT EXAMPLES, THOSE EXAMPLES MAY HAVE LOW COMPLIANCE LEVELS.
THE EARLY ADOPTERS OF SHORT-TERM RENTAL RULES IN THE WORLD WERE AMSTERDAM, PORTLAND, SAN FRANCISCO, NEW YORK CITY.
NONE OF THEM HAVE SEEN ONE YEAR THAT THEY TIPPED UP ABOVE 10 PERCENT COMPLIANCE WITH THEIR RULES.
BUT WHAT THEY DID IS SO MANY OTHER TOWNS WOULD ADOPT THE MODEL OF REGULATIONS THAT THEY HAD PUT IN PLACE BECAUSE THEY WERE THE FIRST ADOPTERS.
NOW WHAT WE'VE HAD IS WE HAVE THIS REALLY WORLDWIDE NETWORK OF SO MANY DIFFERENT COMMUNITIES THAT EITHER DON'T ACHIEVE COMPLIANCE AT ALL OR MORE OFTEN THAN NOT, ESPECIALLY IN SMALLER COMMUNITIES, VACATION TOWNS, COASTAL CITIES, MOUNTAIN TOWNS.
THEY ACTUALLY DO PUT RULES IN PLACE, BUT THEY DON'T EVEN TRY TO ENFORCE THEM.
ONE OF THE THINGS WHEN WE WENT THROUGH THIS PROCESS IS TALKING ABOUT HOW CAN WE DO SOMETHING THAT CAN HELP YOU ACHIEVE COMPLIANCE, COULD ACHIEVE WHAT YOU WANT TO WITH YOUR LOCAL RULES?
>> THEN THE LAST THING THAT I GOT US TO WHERE WE ARE TODAY IS THE UNCOLLECTED HOTEL OCCUPANCY TAX.
[02:25:02]
THIS WAS AN ISSUE THAT HAD BEEN TALKED ABOUT FOR YEARS, BUT IT WAS FRONT AND CENTER WHEN I GOT HERE.WHEN I SAY GOT HERE TO THE PARK BOARD ABOUT TWO YEARS AGO AND THE DISCUSSION BECAME IT WAS ACTUALLY CITY COUNCIL AT THE TIME THAT CREATED A SEPARATE TASK FORCE TO LOOK OUT WHY IS THE STATE COLLECTIONS HIGHER THAN THE LOCAL COLLECTIONS? FOR THE LONGEST TIME, STATE LOCAL HOT COLLECTIONS OR EXCUSE ME, LOCAL HOT COLLECTIONS WERE HIGHER THAN THE STATE UNTIL ABOUT 2017 WHEN VOLUNTARY COLLECTION AGREEMENTS WERE SIGNED BETWEEN THE STATE CONTROLLER'S OFFICE AND GROUPS LIKE AIRBNB, VRBO.
THOSE AGREEMENTS REQUIRE THEM TO COLLECT AND PAY THE HOTEL OCCUPANCY TAX ON TRANSACTIONS THAT OCCUR ON THEIR PLATFORMS. OR WHEN THEY SIGN THOSE, THAT'S WHEN WE STARTED SEEING THE STATE COLLECTIONS IN GALVESTON BEING HIGHER THAN OURS IN TERMS OF PENNY VALUE, WHAT YOU COLLECT FOR 1 PERCENT OF THE TAX RATE.
WHEN WE TOOK A LOOK AT THAT, WE NOTICED THAT HAS TO BE BECAUSE OF THE BCAAS.
IT WENT FROM 1.2 PERCENT IN 2017 BEING HIGHER TO 15 PERCENT IN 2019.
IF YOU LOOK AT 2021, IT WAS 60 PERCENT HIGHER THEIR PENNY VALUE THAN OURS.
WE DETERMINED IT HAD TO BE BECAUSE OF THESE VOLUNTARY COLLECTION AGREEMENTS AND THE TASK FORCE TO ASSESS THAT OR I SHOULD SAY, ESTIMATED THAT WE'RE LOSING SOMEWHERE BETWEEN $3 AND 4 MILLION A YEAR.
THAT'S WHEN COUNSEL MADE THE CHOICE TO CHANGE THE ORDINANCE AND THEY REQUIRED ANNUAL REGISTRATION, REQUIRED THE REGISTRATION NUMBER BE PLACED ON ALL ADVERTISEMENTS.
THEN REQUIRED THROUGH ORDINANCE NOT A VOLUNTARY COLLECTION AGREEMENT FOR AIRBNB, VRBO TO COLLECT AND PAY THE HOTEL OCCUPANCY TAX.
WE'VE SEEN AN EXPLOSION REGISTRATIONS SINCE THEN.
WE'VE SEEN A HUGE EXPLOSION IN HOT COLLECTIONS SINCE THEN.
KUDOS TO COUNCIL, THAT WAS A GOOD DECISION.
WE'RE SEEING THE BENEFITS FROM IT.
RIGHT NOW, LIKE I SAID, WE'RE AT ABOUT 4,400 SHORT-TERM RENTALS AND AIRBNB AND VRBO SINCE THE ORDINANCE CHANGED WENT INTO EFFECT FOR THEM TO COLLECT, THAT WAS AUGUST OF 2021.
SINCE THEN THOSE TWO ENTITIES HAVE PAID $4.4 MILLION IN HOTEL OCCUPANCY TAX, THEY WERE GOOD DECISIONS.
BUT WHAT THAT LED TO WAS US LOOKING AT THESE CHANGES AND LOOKING AT OUR CURRENT SYSTEM, WHEN I SAY US, THE PARK BOARD, AND WE LOOKED AT OUR CURRENT SOFTWARE AND IT'S TOTALLY INADEQUATE.
[BACKGROUND] WE CREATED A REGISTRATION RENEWAL OPTIONS, SO WE HAVE THAT IN OUR CURRENT SYSTEM.
BUT WE NEED TO GET MORE SOPHISTICATED.
THERE ARE SOFTWARE SOLUTIONS OUT THERE THAT ALLOW YOU TO SCRAPE PLATFORMS, TRY TO IDENTIFY SOME OF THESE INVISIBLE OR NON-REGISTERED AND NON-COMPLIANT PROPERTIES.
IT BECOMES A LOT MORE AUTOMATED.
IT MAKES PAYMENT AND PROCESSING AND DISTRIBUTION A LOT EASIER.
THAT'S WHERE WE'RE AT NOW, AND THAT'S WHAT WE'RE LOOKING AT.
I GUESS WE LOST OUR PRESENTATION, BUT THAT'S OKAY, YOU HAVE THE HARD COPIES IN FRONT OF YOU.
WE JUST WANTED TO GIVE COUNSEL JUST A LITTLE BIT OF THAT BACKGROUND TO UNDERSTAND WHY WE'RE HERE IN FRONT OF YOU.
AS A RESULT OF ALL OF THAT, ANOTHER TASK FORCE WAS CREATED TO LOOK AT THOSE THINGS.
LOOK AT THE RESOURCE VIEW FOR THE PARK WARD, TO HELP ENSURE COMPLIANCE WITH ORDINANCE AS THEY ARE WRITTEN.
ALSO TO SURVEY AND LOOK AT OTHER CITIES AND SEE WHAT THEY'RE DOING IN TERMS OF SOFTWARE AND ORDINANCES AND STUFF LIKE THAT.
WITH THAT, I'LL TURN IT BACK OVER TO MATT AND YOU CAN INTRODUCE THE DATA SOURCE.
>> FOR YOU GUYS FOLLOWING ALONG ON PAPER, WE'RE ON THE [INAUDIBLE] SLIDE.
IF I REALLY LEAVE YOU WITH TWO THINGS.
IF THERE'S ONE THING, I ALWAYS LIKE TO TALK TO MY FRIENDS IN A LOCAL GOVERNMENT.
>> CAN YOU HOLD ONE SECOND DOWN?
>> I HAVE A POOR INTERNET CONNECTION RIGHT NOW.
>> [INAUDIBLE] MIGHT BE OBSERVED.
>> WE HAD FOUR ON ZOOM, I THINK TWO OF THEM WERE STAFF.
>> WE'RE TELEVISING TO THE PUBLIC?
>> IT WAS THOSE BIG ISSUES THAT LED US TO WHERE WE ARE TODAY.
THE SECOND TASK FORCE WAS CREATED.
REMEMBER, LIKE I SAID, I'LL TURN IT OVER TO MATT TO INTRODUCE IT.
AGAIN, WE'RE UP TO THE STAKEHOLDER SLIDE.
I JUST WANTED TO TALK TO YOU A LITTLE BIT ABOUT THAT.
THE TWO THINGS I'D REALLY LOVE TO GET ACROSS IS MAKE SURE, IN MY OPINION AND HAVING STUDIED HUNDREDS OF THESE REGULATIONS OVER THE LAST 12 YEARS AROUND THE COUNTRY AND AROUND THE WORLD, WHAT ACHIEVES COMPLIANCE AND WHAT DOESN'T.
AS YOU GO THROUGH THIS, REMEMBER, COMPLIANCE HAS TO BE THAT GOAL, IT'S GOT TO WORK.
IT SEEMS THAT PEER COMMUNITIES HAVE A VIABLE CITIES THAT ARE SIMILAR TO GALVESTON IN DIFFERENT WAYS THAT HAVE ACHIEVED A HIGH LEVEL OF SUCCESS.
WITH COMPLIANCE, ONE OF THE THINGS THEY SAY IS STAKEHOLDER ENGAGEMENT.
THAT SECOND THING I MENTIONED TO YOU THAT YOU SHOULD REALLY WALK AWAY WITH SAYING IS, YOU GUYS DID IT BETTER THAN ANYONE.
BIGGEST CITIES TO THE SMALLEST CITIES DON'T PUT TOGETHER A STAKEHOLDER COALITION LIKE THIS ONE.
CLAIRE REISWERG, RON VENABLE, KAY TERRY, LIZ OVERTON, MARY BRANAUM, MIKE LOFTIN, HOPE DEAN, BRYSON, DON,
[02:30:02]
AND MYSELF ARE WORKING AS A CONSULTANT, COMING TOGETHER SINCE LAST SEPTEMBER WITH GREAT REGULARITY, DOING VIRTUAL OFFICE VISITS OR SITE VISITS TO DIFFERENT CITIES.MEETING WITH DIFFERENT CITIES, TALKING TO THEM ABOUT WHAT WORKS AND WHAT DOESN'T, GETTING INTO THE GRANULAR LEVEL OF HOW THEIR SOFTWARE COMPLIANCE SYSTEMS WORK AND HOW THEIR OVERALL REGULATORY SCHEME WORKS.
PEOPLE HAVE BEEN AT THE TABLE, ORGANIZED, READY FOR A REGULAR DISCUSSIONS.
I THINK WE'VE SEEN A GREAT LEVEL OF SUCCESS.
IT'S HELPED US TO PUT TOGETHER THE RFP FOR THE SOFTWARE COMPLIANCE TOOL.
BUT IT'S ALSO HELPED US TO TALK ABOUT WHAT ARE THOSE UNIQUE CHARACTERISTICS FROM THE REGULATORY SETUP THAT YOU WOULD LIKE TO SEE AND THE SUCCESS THAT YOU MIGHT SEE IN GALVESTON.
>> CAN WE PAUSE FOR JUST A MINUTE?
>> WE'RE SURE, AT LEAST, DON CANNOT HERE YOU.
>> [BACKGROUND] IS DON NOT ABLE TO HEAR A THING?
>> [NOISE] OTHERS ONLINE CAN BE LOST.
ENTER YOUR MEETING ID, FOLLOWED BY ACCOUNT.
>> ENTER YOUR PARTICIPANT ID, FOLLOWED BY TOWN.
>> I AM GOING TO CANCEL ALL THESE.
>> [BACKGROUND] YOU HAVE ENTERED THE MEETING AS THE PANELISTS.
ATTENDEES CAN NOW HEAR YOU SPEAK.
>> THAT'S OUR CITY ATTORNEY, HE IS HOME WITH COVID.
IT'S IMPORTANT THAT WE HAVE HIM.
>> APPARENTLY WE WERE BACK ON.
>> CAN I TAKE A MOMENT TO GREAT CRAIG STEVENSON WHOSE IN THE AUDIENCE.
>> DR. STEVENSON, DON WAS JUST SAYING HELLO AND WELCOME.
>> IT'S NICE TO SEE YOU. I'M STEVEN CRAIG, I'M FROM UNIVERSITY OF HOUSTON.
>> OKAY. DON, WE'RE GOING TO GO AHEAD AND FINISH THIS, AND THEN WE'LL HAVE DR. STEVENSON COME ON BOARD.
>> NOW WE GO TO THE NEXT SLIDE.
>> THANK YOU. JUST TO REITERATE, THE LEVEL OF STAKEHOLDER ENGAGEMENT IN THE PROCESS THAT YOU'VE HAD HERE IS REALLY SECOND TO NONE.
IT SHOULD BE WAIVED AS A BEST PRACTICE EXAMPLE.
I THINK FROM THE CITY ATTORNEY AND CITY STAFF, WHEN THEY GO TO THE ICMA, IF YOU GUYS GO TO THE NATIONAL LEAGUE OF CITIES, DIFFERENT TEXAS MUNICIPAL LEAGUE.
BE PROUD TO WAVE HOW WELL THIS ONE FUNCTION AND HOW WELL THIS ONE WAS ORGANIZED.
IT REALLY DOES NOT HAPPEN ON THIS PARTICULAR ISSUE, OR FRANKLY MANY OF THE DIFFERENT ISSUES WE DEAL WITH AROUND THE COUNTRY.
SO ONE OF THE THINGS THAT THE STAFF TASK FORCE DID IS FOCUS ON SOME KEY PRINCIPLES.
A KEY MISSION OF WHAT WE WANTED TO ACCOMPLISH AND WHAT WE WANTED TO ACHIEVE HERE IS, NUMBER 1, TO REVIEW AND IDENTIFY THE PRACTICES AND EXAMPLES OF VIABLE PURE COMMUNITIES.
AGAIN, LOOKING AT THOSE COMMUNITIES THAT ACTUALLY DO FUNCTION WHERE THEY ARE ATTEMPTING COMPLIANCE AND WE'RE TRYING TO WORK AT THIS AND LEARN FROM THIS.
SO MANY COMMUNITIES DO PASS REGULATIONS AND THEN FRANKLY NEVER ADDRESS THEM AGAIN.
NUMBER 2, TO APPLY LEARNING TO THE UNIQUE NATURE OF GALVESTON.
GALVESTON IS DIFFERENT FROM OTHER COMMUNITIES, CERTAINLY GEOGRAPHICALLY, ECONOMICALLY, AND SO MANY OTHER THINGS.
YOU WANT TO BE ABLE TO ACHIEVE THE LOCAL RULES THAT ARE IMPORTANT TO YOU.
THEN FINALLY, NUMBER 3, TO IDENTIFY AND SOLICIT TOOLS THAT ACHIEVED COMPLIANCE, INCLUDING THOSE SOFTWARE SOLUTIONS.
THE SOFTWARE COMPLIANCE TOOL WAS A MAJOR FACTOR, BUT WERE THERE OTHER TOOLS THAT CAN BE PUT IN PLACE THAT COULD HELP PEOPLE TO ADDRESS THOSE CONCERNS THAT THEY MIGHT HAVE, THOSE COMMUNITY CONCERNS THAT WE TALKED ABOUT EARLIER.
THAT WAS THE MISSION AND THE ACTION THAT THE TASK FORCE WENT THROUGH, AND THEY DID VERY SUCCESSFULLY.
>> IF I COULD. I JUST WANTED TO POINT OUT THAT SINCE SEPTEMBER, WE HAVE DONE A COUPLE OF THINGS.
THE TASK FORCE HAS ISSUED AN RFP AND IT ACTUALLY CLOSED A WEEK OR SO AGO.
WE'RE IN THE PROCESS OF REVIEWING THOSE RESPONSES AND [NOISE] DIFFERENT SELECTED SOON.
THEN OF COURSE WE'RE DOING THE SURVEY REPORT THAT WE'RE DOING NOW.
THOSE ARE A COUPLE OF THINGS THAT WE'VE ALREADY ACHIEVED.
THE TASK FORCE WILL CONTINUE TO ME AS WE IMPLEMENT OUR SOFTWARE SOLUTION. NEXT SLIDE.
[02:35:05]
>> ON THIS SOFTWARE SOLUTIONS, YOU'LL HEAR US TALK ABOUT THIS FRANKLY, WHAT IT BOILS DOWN TO.
THERE'S A HANDFUL OF DIFFERENT COMPANIES THAT GETS EVEN MORE CHALLENGING.
THERE'S A HANDFUL OF DIFFERENT COMPANIES.
THEY TEND TO WORK IN THIS SPACE.
THEY REALLY JUST POPPED UP OVER THE LAST HANDFUL OF YEARS.
THEY'RE HELPING CITIES AND COUNTIES AND MAYBE EVEN SOME CASES, SOME STATES ACHIEVE GOALS WITH CREATING A TAX COURT OR DIFFERENT THINGS THAT HELP LOCAL COMMUNITIES ADDRESS ANY OTHER NUISANCE OR COMPLIANCE EFFORTS THAT THEY'RE TRYING TO UNDERTAKE.
THERE'S A HANDFUL OF COMPANIES, THERE'S A NAME OF MOST OF THE BIG ONES WHERE I WAS JOKING ABOUT A MOMENT AGO ABOUT WHY IT BECOMES A LITTLE CHALLENGING AS MANY OF THESE COMPANIES KEEP ACQUIRING EACH OTHER.
IN JUST THE TIME THAT WE'VE BEEN A TASK FORCE, WE'VE SEEN ABOUT NINE DIFFERENT COMPANIES DWINDLED DOWN TO ABOUT SIX OR SEVEN BIG ONES AND THEN ANOTHER ONE TRY POP UP AND THEN IT'LL GET BOUGHT BY SOMEONE.
BUT THE AVERAGE YEARLY COST TO HIRE THESE DIFFERENT COMPANIES, IT REALLY DEPENDS ON WHAT THEY'RE OFFERING YOU.
IN SOME CASES IS JUST A SIMPLE REGISTRATION PORTAL BECAUSE FRANKLY FOR A COMMUNITY I'LL MAKE UP ONE AND USE MY HOMETOWN ROUND ROCK.
ROUND ROCK MIGHT SAY, THAT'S ALL, WE WANT IT RIGHT NOW IN ROUND ROCK.
NOT A HUGE PROBABLY A VACATION DESTINATION.
MY MOM MIGHT ARGUE WITH ME, BUT THAT MIGHT BE WHAT THEY NEED THERE.
BUT IN A COMMUNITY LIKE NORTH MYRTLE BEACH OR A VAIL OR GALVESTON THAT MIGHT HAVE SO MUCH MORE DENSITY OF VACATION RENTALS IN SUCH AN INDUSTRY COMING IN FOR VACATION, MAYBE WANT TO ADD ON OTHER RULES AND OTHER APPLICATIONS TO YOUR SOFTWARE COMPLIANCE TOOL.
TAX PORTAL, 24-HOUR CALL LINE, SOMETHING THAT CAN ACTUALLY RELAY BACK TO A LOCAL POINT OF CONTACT THAT'S REPRESENTING THE VACATION RECORD AND SO MANY OTHER THINGS THAT HELP LOCAL GOVERNMENTS ACHIEVE THEIR LOCAL GOALS.
THOSE LITTLE BELLS OR WHISTLES CAN CHANGE THE PRICE TAG ON THE SOFTWARE COMPLIANCE TOOL FROM BETWEEN 50,000 ON AVERAGE TO ABOUT 300,000 THAT BEING THE HIGH AND LOW.
>> BUT EVERYBODY WE TALKED TO HAD RECENTLY ACQUIRED SOME SOLUTION, SOME SOFTWARE SOLUTION.
EVERYONE WE TALKED TO DEFINITELY EXPRESSED THE NEED TO DO SOMETHING LIKE THAT.
>> TALKING ABOUT THE RFP, HOW DO WE DEVELOP AN RFP FOR THAT SOFTWARE COMPLIANCE SOLUTION? AGAIN, WE WANTED TO LOOK AT THOSE VIABLE CITIES WHERE THEY WERE ACTUALLY WORKING WITH THEIR SOFTWARE COMPLIANCE TOOL AND PROACTIVELY.
PROACTIVELY REGULARLY IN A DETERMINED FASHION.
AGAIN, YOU WOULD HAVE CITIES WHERE WE WOULD SPEAK WITH AND WE WERE TALK TO THEM ABOUT HOW THEY WERE WORKING WITH THEIR SOFTWARE COMPLIANCE.
WHEN THEY SAY, WELL, WE HIRE HIM EVERY NOW AND THEN SOMEBODY GETS A REPORT, NOBODY'S REALLY PAYING ATTENTION TO IT.
WE DIDN'T SEE THAT AS A VIABLE MODEL TO PURSUE.
WE WANTED TO TALK TO THE FOLKS WHO ARE WORKING REGULARLY WITH THEIR SOFTWARE COMPLIANCE TOOL AND TRYING TO GET THE BEST OUT OF THEM THEY COULD AFTER SPEAKING WITH THEM AND FINDING OUT WHAT IF THEY PUT IN PLACE FOR THEIR RFPS.
FRANKLY, RFP IS SUSPECTED WE TAKING THE BEST PRACTICES FROM ALL OF THOSE.
THESE ARE PLACES LIKE GLENN COUNTY, NEW BRAUNFELS, PALM DESERT, CALIFORNIA, NEW BRAUNFELS, TEXAS.
ON THE COMAL RIVER, GREAT RIVER DESTINATION.
A LOT OF PEOPLE TRAVELING UP THERE TO GO SPEND A WEEKEND, ESPECIALLY IF YOU'RE IN-BETWEEN AUSTIN, SAN ANTONIO, IT'S EASY TO ACCESS DESTINATION.
THEY'RE WORKING DILIGENTLY WITH THEIR SOFTWARE COMPLIANCE TOOL AND REALLY TRYING TO GET THE MOST OUT OF IT AND FEEL LIKE THEY HAVE A HIGH LEVEL OF COMPLIANCE BECAUSE WE LOOKED AT THOSE AND BUILD THAT RFP BASED ON THOSE RFPS THAT HAVE ALREADY BEEN LEARNED FROM OTHER CITIES.
>> WE FOCUSED ON A COUPLE OF DIFFERENT THINGS THAT THE RFP, WE WANTED TO MAKE SURE THAT THERE WAS A REGISTRATION TOOL.
WE NEED THAT DATA COLLECTION AND MAINTENANCE, NOT JUST A STANDARD REPORTS, BUT WE WANTED A REPORT WRITING TOOL.
OF COURSE THE EDUCATION, GETTING THE INFORMATION OUT.
WE DIDN'T NOTICE THERE'S A COUPLE OF PLACES THAT TALKED ABOUT YET THIS WONDERFUL TOOL, BUT A LOT OF PEOPLE DIDN'T KNOW THAT IT WAS, THERE TO BE USED SO EDUCATION WAS KEY.
THEN OF COURSE, THE COMPLIANCE MONITORING, SCANNING THESE DIFFERENT PLATFORMS THAT AIRBNB IS AND VERBOSE AND THOSE SORTS OF WEBSITES CONSTANTLY COLLECTING THAT ADVERTISING DATA THAT HELPS AND OF COURSE, THE TAX REMITTANCE TRYING TO MAKE THAT AS EASY AS POSSIBLE AND THEN THE 24-SEVEN HOTLINES.
THOSE ARE ALL REQUIREMENTS THAT WE PUT IN OUR RFP.
AND ALSO I JUST WANTED TO MENTION, LIKE I SAID A MINUTE AGO, IT WAS ISSUED IN MAY, CLOSED IN JUNE.
THE GOAL IS TO IDENTIFY A VENDOR SOMETIME IN JULY, PERHAPS THE REAGAN REAGAN BACK TO THE BOARD, IF NOT AT THE LATEST, IT'LL BE AUGUST.
THE GOAL IS TRY TO GO LIVE BY DECEMBER OF THIS YEAR BUT I WILL SAY THAT WE'RE NOT IN A MAJOR RUSH TO IMPLEMENT.
WE WANT TO GET IT RIGHT RATHER BE HASTY.
IF WE HAD TO WORK WITH OUR CURRENT SYSTEM, IT DOES HAVE THE REGISTRATION RENEWAL TOOL YOU CAN PAY ONLINE.
WE CAN LIVE LIVE THROUGH IT IF WE HAD TO BUT RIGHT NOW THE GOAL IS TO TRY TO IMPLEMENT THIS SOFTWARE SOLUTION BY DECEMBER. NEXT SLIDE, PLEASE.
[02:40:04]
NOTICED WHEN WE STARTED LOOKING AT WHAT OTHER CITIES ARE DOING IN TERMS OF REGISTRATION.EVERYBODY HAD A REGISTRATION REQUIREMENT, EVERYBODY HAD AN ANNUAL RENEWAL REQUIREMENT.
THAT WAS SOMETHING THAT WE SAW THAT EVERYBODY HAD BUT WE SAW A HUGE DISPARITY BETWEEN REGISTRATION FEES.
SOMEWHERE IS LOW AS FIVE TO MAYBE EVEN $29, SOMEWHERE IS HIGH AS 1200 OR MORE.
WE DID TALK TO I THINK IT WAS VAIL, COLORADO THAT HAS BETWEEN 550 THEY CHARGE.
I THINK IT WAS BASED OFF OF EITHER OCCUPANCY OR NUMBER OF ROOMS, BUT THEY'RE THINKING ABOUT INCREASING THAT FEE AS WELL.
>> SAN VAIL IS SORT OF A MISNOMER BECAUSE VAIL IS A MAN-MADE TOWN, WHICH IS ALL RANDOM BUT IT'S THE COMMUNITIES AROUND IT THAT HAVE THE REGULATIONS BECAUSE IT WOULD BE PRETTY HARD TO FIND ANYONE WHO LIVES FULL-TIME AND THEY'RE PROPER.
>> THEY'RE DIFFERENT A LITTLE BIT DIFFERENT, RIGHT. I THINK THE AVERAGE PRICE OF A HOME WAS $70.
>> YOU HAD A LOT OF FULL-TIME PEOPLE THAT LIVED.
>> BUT YOU HIT ON A GOOD POINT IN THE SENSE THAT EVERY COMMUNITY IS UNIQUE IN ITSELF.
EVERY SOLUTION IS UNIQUE IN AND OF ITSELF.
LET US HAVE EVIDENCED BY THE REGISTRATION FEES.
WE'VE SEEN IT RANGE THE GAMIT FROM LOW TO HIGH, BUT ALL OF THE HAD A REGISTRATION REQUIREMENT.
ALL OF THEM HAD AN ANNUAL RENEWAL REQUIREMENT.
>> [LAUGHTER] [OVERLAPPING] HE'S JUST IN THE COACHELLA VALLEY YOU GUYS KNOW PALM SPRINGS, THAT AREAS IN THAT NECK OF THE WOODS.
THERE'S A STRING OF VACATION TOWN DOWN THERE, CATHEDRAL CITY AND A FEW OTHERS.
I OFTEN TIMES WRITE THESE THINKING THAT EVERYONE KNOWS THESE DIFFERENT DESTINATIONS BECAUSE I HAVE TO TALK ABOUT THEM OFTEN, I APOLOGIZE. WHERE DO THE FEES GO? THAT'S FASCINATING BECAUSE DIFFERENT FOLKS TALK ABOUT WHERE THEY WOULD LIKE THE FEES TO GO IF YOU HAVE A REGISTRATION FEE FOR SHORT-TERM RENTALS.
WELL, IN SOME CASES, WE ACTUALLY HAD THE REGISTRATION FEE GOES SPECIFICALLY TO CODE COMPLIANCE.
IN SOME CASES, THE REGISTRATION FEE WENT BACK INTO THE GENERAL FUND WITH THE IDEA THAT THEY WOULD TO HIRE A PERMANENT ADMINISTRATOR TO MONITOR THE SHORT-TERM RENTAL PROGRAM AND MAKE SURE THEY ARE SUCCESSFUL.
BUT WE HAD A COUPLE OF INTERESTING LITTLE TIDBITS OF INFORMATION THAT WE PICKED UP WHILE WE WERE OUT THERE TALKING TO THESE DIFFERENT GROUPS AND DURING OUR VIRTUAL SITE VISITS, ONE OF THEM WAS IN GLYNN COUNTY.
IT WAS AGAIN TALKING ABOUT HOW DO YOU WANT TO ACHIEVE COMPLIANCE GOING THROUGH THE STRONGEST STRAIGHT STAKEHOLDER PROCESS.
THEY ALSO ADDED MAKING SURE TO TAKE TIME TO COLLECT DATA AND THEN MONITORING THE DATA.
MAKE YOUR DECISION BASED ON DATA RATHER THAN ANECDOTE.
GOING THROUGH THE ANECDOTAL PROCESS, THEY FELL FOR SURE, THEY NEEDED TO USE THAT REGISTRATION FEE TO HIRE THREE NEW CODE COMPLIANCE OFFICERS.
BUT BETWEEN JULY AND OCTOBER OF 2021, THEY ONLY HAD 18 COMPLAINT CALLS NO MATTER HOW MUCH THEY PROMOTED COMPLAINT LINES, 24-HOUR COLUMN LINES, ONLINE REGISTRATION, AND EVEN DOING AN INVESTIGATION OF ANY COMPLAINTS THAT WENT INTO CITY COUNCIL OFFICES,18.
THEY SAID, WE DON'T HAVE THE DATA TO SUPPORT A NEED TO HIRE MORE CODE COMPLIANCE OFFICERS.
THEY DID STRESS [NOISE] PALM DESERT SAID SOMETHING VERY SIMILAR, BRECKENRIDGE HAD SOMETHING SIMILAR.
>> WELL, OUT OF CURIOSITY, DID THEY CHECK THE NUMBER OF COMPLAINTS THAT WENT INTO THEIR POLICE FORCE?
>> THEY [NOISE] MADE IT VERY CLEAR WE COULD NOT BELIEVE HOW LOW THEIR NUMBER IS BECAUSE THE PROBLEM IS NOW, THEY'VE MADE IT PART OF THEIR ORDINANCE THAT THEY WOULD USE THE REGISTRATION FEE FOR THREE CODE ENFORCEMENT OFFICERS.
NOW THEY HAVE TO GO BACK AND FIX THAT BECAUSE THEY CAN'T JUSTIFY WHAT THEY DID.
WE ACTUALLY HEARD THAT WHEN WE TALKED TO BRECKENRIDGE AND PALM DESERT AND OTHER CITIES, IS THAT OFTEN TIMES THAT DATA DOES NOT REFLECT THE ANECDOTE.
USING THOSE FEES TO PUT INTO THE GENERAL FUND OR THE CODE COMPLIANCE OFFICE, DIFFERENT FOLKS, USED IT IN DIFFERENT WAYS, BUT THEY WANTED TO MAKE SURE THEY DO ONE THING WELL IN THE CITIES THAT WE FOUND VIABLE.
THEY HIRED OR AT LEAST FUNDED THAT PERMANENT ADMINISTRATOR WHO'S MAKING SURE TO MONITOR THE EVERYDAY ASPECT OF THE PROGRAM.
>> ALSO TO MAKE SURE EVERYBODY IS AWARE OF THE CURRENT $50 REGISTRATION FEE, THAT'S THE AMOUNT HERE THAT WAS SAID IT'S A $50 REGISTRATION FEE THAT IS COLLECTED BY THE PARK BOARD.
WE DO USE IT TO OFFSET THE COSTS LIKE FOR EXAMPLE, THE FEES WILL BE USED FOR THE OFFSET THE COST OF THE SOFTWARE SOLUTION.
AGAIN, TALKING ABOUT THESE FROM COMMUNITIES THAT WE FOUND VIABLE PROGRAMS WHERE PEOPLE WERE WORKING DILIGENTLY TO MAKE THEIR PROGRAMS WORK AND MAKE THEIR SOFTWARE COMPLIANCE TOOL WORK ALONG WITH IT.
THEY DID HAVE A FEW SIMILAR PIECES OF FEEDBACK THAT WE HEARD
[02:45:05]
BACK FROM THESE DIFFERENT CITIES WHEN WE DID OUR ONLINE SITE VISITS AND WE'VE TALKED WITH THEM AND DONE SURVEYS WITH THESE DIFFERENT CITIES.ONE WAS FASCINATING, WAS THAT THE HIGH REGISTRATION FEE DOES NOT REMOVE BAD ACTORS.
THAT THEY FELT THAT THE HIGH REGISTRATION FEE WOULD BE THAT HURDLE THAT WOULD TAKE BAD ACTORS OUT, BUT IT DOESN'T.
THE HIGH REGISTRATION FEE TO THEM WASN'T SOMETHING THAT WAS PURELY ADVISABLE TO PURSUE THAT.
THEY ALSO MENTIONED THAT THE LOWER REGISTRATION FEES, DEPENDING WHAT THEY VIEWED AS LOW, ACHIEVED A HIGHER LEVEL OF PEOPLE GETTING INTO THE PROGRAM, SO THEY WERE ABLE TO DEFECT.
WE TRIED TO FIND A SWEET SPOT THAT WOULD GET MORE PEOPLE INTO THE PROGRAM AND THEN TRY TO ACHIEVE COMPLIANCE OVER TIME WITH THAT GROUP.
ANYBODY WHO'S OPERATING OUTSIDE OF THAT GROUP, OUTSIDE OF THE REGISTERED LEGAL OPERATING ACTORS CAN BE MORE EASILY BE IDENTIFIED, ESPECIALLY USING THE SOFTWARE COMPLIANCE TO.
EIGHTY PERCENT OF THE RESPONDENTS OF EVERYONE WE THREW THE QUESTION IN, DO YOU THINK YOUR CITY WILL BE READDRESSING YOUR ORDINANCE IN THE NEXT YEAR? EIGHTY PERCENT OF THEM SAID YES.
JUST GOES TO SHOW PEOPLE ARE VIEWING THIS AS SOMETHING YOU ARE GOING TO HAVE TO TINKER WITH OVER TIME.
THERE'S NOT GOING TO BE AN EASY FIRST TIME SOLUTION.
THE PUNITIVE FINES SHOW A HIGHER RATE OF SUCCESS FOR THE REMOVAL OF BAD ACTORS.
WE ACTUALLY HEARD THAT, I FEEL LIKE YOU HAVE A STORY ABOUT THAT.
>> WE HEARD IT FROM A COUPLE OF PEOPLE AND WHAT IT WAS, IT WASN'T FINES IT WAS EVEN REVOCATION [NOISE] AND IT WAS THE PEOPLE THAT ACTUALLY ENFORCE THAT.
WHAT I MEAN BY THAT IS A COMPLAINT WOULD COME IN, AT THIS PARTICULAR CITY IT WAS PALM DESERT, WOULD GIVE YOU AN HOUR OR THEY'D GIVE THAT LOCAL CONTACT AN HOUR TO ADDRESS WHATEVER THAT ISSUE WAS, LET'S SAY IT WAS NOISE, YOU'VE GOT AN HOUR TO ADDRESS IT.
IF YOU FAIL TO ADDRESS IT WITHIN THAT HOUR, A CITATION WOULD BE ISSUED.
I CAN'T REMEMBER EXACTLY WHAT IT WAS WHEN IT WAS 500 THE FIRST TIME, A 1,000 SECOND TIME, 1,500 THE THIRD TIME AND YOU LOSE YOUR LICENSE FOR A YEAR.
WHEN THEY STARTED ENFORCING THAT, THEY NOTICED THAT A LOT OF THEIR BAD ACTORS EITHER SHAPED UP OR SHIPPED OUT.
THAT WAS SOMETHING THAT WE GOT FROM THEM AND WE'RE GOING TO GET INTO IT HERE IN A MINUTE, IT WAS REALLY NICE TO HEAR THAT THEY WERE FOCUSING ON SELF COMPLIANCE.
THOSE PEOPLE THAT UNDERSTOOD THAT THERE WAS SOMEBODY OUT THERE WATCHING IT, THEY WERE GOING TO GET FINED IF THEY DIDN'T FOLLOW THE RULES.
HAD AN ACTIVE LOCAL CONTACT TO TRY THEIR BEST TO MAKE SURE THAT THE RULES WERE FOLLOWED.
>> THAT WAS LIKE EVEN IN 2 AM IN THE MORNING, ON A FRIDAY MORNING, ON A SATURDAY MORNING?
>> IF YOU DON'T RESPOND, YOU PUT UP A CITATION THE NEXT DAY.
>> SOME OF THE SOFTWARE COMPLIANCE TOOLS HAVE THAT INBOUND 24-HOUR.
>> THE CITATION WENT TO THE PROPRIUM?
>> THERE'S SOME OF THE DIFFERENT TOOLS HAVE AN INBOUND CALL CENTER AND THEN CAN ACTUALLY ALSO DISPATCH TO THAT CALL TO THE BUBBLE POINT OF CONTACT.
THE ONE LAST POINT ON THIS WAS INTERESTING FROM SO MANY DIFFERENT CITIES AND SO MANY DIFFERENT STATES WAS TO EXPECT LEGAL CHALLENGES THAT OFTEN TIMES LEGAL CHALLENGES WITH THE CREATION OF YOUR NEW ORDINANCE WILL LIKELY BE AN OUTCOME AND PEOPLE MIGHT FIND A REASON TO OPPOSE THE GAPS OR DENSITY LIMITS OR ANY KIND OF BAN ON REWARDS REWARDING.
>> IT GETS BROKEN [INAUDIBLE] THE NUMBER OF LICENSES THAT COULD BE HIGH IN [INAUDIBLE]
>> HOW MANY OF THESE CITIES HAVE DONE [INAUDIBLE]
>> OF YOUR PEER CITIES, WHAT WAS THE AVERAGE NUMBER OF SHORT-TERM RENTALS IN THOSE CITIES?
>> IT REALLY DEPENDS BECAUSE THERE WAS A LOT OF DIFFERENT SIZES.
IF YOU LOOK AT A PLACE LIKE VAIL, I THINK IT WAS SOMETHING LIKE 80 OR 90 PERCENT OF THEIR HOUSES STOCK WERE SHORT-TERM RENTALS.
WHEN YOU LOOK AT OTHER PLACES, I REALLY JUST THINK PALM BEACH WAS PROBABLY A LOT LIKE OURS IN THAT 20-40 PERCENT RATE OR SOMEWHERE AROUND THERE.
BUT EVERYBODY WAS A LITTLE BIT DIFFERENT.
THERE WAS NOT A CONSISTENT AMOUNT THAT YOU ALL WERE LEVELED AT.
>> THERE WERE CITIES THERE THAT HAD 5,000 UNITS.
>> YEAH. IF YOU LOOK LIKE A PLACE LIKE VAIL, I THINK WE HAD LIKE 80 PERCENT OR SOMETHING THERE, HOUSING STOCK WITH SHORT-TERM RENTALS, BUT I THINK THEY ONLY HAD 800 SHORT-TERM RENTALS. IT WASN'T THAT MANY.
>> THAT'S ALL CONDOS. THEY ALL DOESN'T HAVE ROOM FOR THIS [OVERLAPPING]
>> COMPARED TO THE PEER CITIES, WE HAVE A HIGH AMOUNT OF SHORT-TERM RENTALS.
>> I THINK WE HAVE [NOISE] ONE OF THE HIGHEST IN TEXAS IF NOT THE HIGHEST IN TEXAS.
FOR MY PEER GROUP THAT I'VE BEEN MEETING WITH.
I THINK OUR NEXT CLOSEST ONE IS MAYBE 1,000.
>> GLYNN COUNTY WAS ABOUT 3,000.
I LIKE TO POINT AT GLYNN COUNTY.
>> GEORGIA. I THOUGHT YOU MEANT TEXAS.
>> IT'S VERY SIMILAR TO INTER-COASTAL TOWN.
I KNOW THE 3,000 IS [OVERLAPPING]
>> WERE THERE ANY CITIES IN TEXAS THAT WERE SERVING DIRECT CITATIONS ON TO THE OWNER? BECAUSE I'M WONDERING IF TEXAS LAW EVEN ALLOWS THAT.
[02:50:01]
THAT'S A QUESTION FOR DON.>> YEAH, I THINK WE CAN FIND OUT.
>> WITH OUR STRONG PROPERTY RIGHTS HERE IN TEXAS, I DON'T KNOW WHERE THERE'S A LOT OF QUESTIONS ALONG THOSE LINES.
IN A LOT OF STATES, YES, YOU ACTUALLY CAN TAKE IT IN ABSENTIA OF THE HOMEOWNER FOR THINGS THAT HAPPENED ON THEIR PROPERTY WHEN THEY'RE NOT THERE.
I DON'T KNOW THAT YOU CAN DO THAT IN TEXAS OR NOT.
>> ALSO, WONDERING HOW THEY HANDLE CORPORATE OWNERS.
>> WE HAVE THAT ISSUE WITH FAMILY DOLLAR STORE.
I'M NOT SURE HOW I WOULD DEAL WITH BEACHBOX RENTALS OR SOMETHING LIKE THAT.
IT'S HARD TO TAKE IT AT CORPORATION.
>> THE INTERESTING THING THAT BRECKINRIDGE DOES JUST BECAUSE I'M MORE FAMILIAR, BUT LET'S SAY B WERE A BEACH BOX HOUSE AND YOU DECIDE TO BUILD ONTO IT, YOU WILL HAVE TO MAKE A PORTION OF THAT HOUSE BE AVAILABLE FOR A WORKER IN THE AREA.
YOU HAVE TO ADD AN APARTMENT FOR SOMEONE WHO WORKS MORE THAN 30 HOURS.
>> I'M SURE THAT'S A COMPLIANCE ISSUE FOR THIS CONVERSATION TODAY.
>> WELL, BUT IT IS PART OF THEIR SHORT-TERM.
IT FALLS UNDER THEIR SHORT-TERM RENTALS.
>> HOW MANY OF THESE OTHER PLACES ARE DOING THEIR INSPECTIONS IN THE SHORT-TERM RENTALS BEFORE THEY'RE ALLOWED IN THE REAL POOL?
>> THERE WAS A COUPLE THAT WE TALKED TO.
>> I KNOW FREDERICKSBURG DOES.
>> THEN THERE'S, WHAT WAS IT? PEARLAND, I THINK.
>> JUST DID THAT TOO. YOU HAVE TO HAVE THE FIRE INSPECTION OR SOMETHING?
>> THEY COULD DO ALL PEARLAND A DAY, BUT YEAH.
>> INDUSTRY STANDARDS, THERE WERE A COUPLE OF CITIES THAT TRIED TO DO CITY INSPECTIONS.
BUT WHAT I FEEL LIKE MOST CITIES HAVE FALLEN INTO IS ALLOWING THE HOMEOWNER OR PROPERTY OWNER, PROPERTY MANAGER TO HAVE AN INSPECTION DONE AND THEN TURN IT TO PAPER WORK.
IN A COUPLE OF STUDIES THEY DID JUST DEVELOP A SPECIAL SHORT-TERM RENTAL CHECKLIST FOR INSPECTIONS. WE COULD PROBABLY GET.
>> I JUST SAW IN FREDERICKSBURG THEY HAVE ACTUAL PLANNING DEPARTMENT OR ENFORCEMENT OFFICERS THAT GO INTO FIRE MARSHAL DO INSPECTIONS OF THE SHORT-TERM RENTAL PROPERTIES.
[NOISE] THERE'S A LOT OF DIFFERENCE TOO IN THE AGE OF THE HOUSING STOCK THAT WE'RE RENTING OUT HERE.
LIFE SAFETY WASN'T A HIGH PRIORITY IN 1900.
WHILE A LOT OF OUR BUILDING CODES HAVE TAKEN CARE OF THOSE ISSUES, ESPECIALLY ON THE NEWER HOMES LIKE IN MURRAY'S DISTRICT WHERE THEY HAVE EXTRA MEANS OF EGRESS AND ALL THOSE TYPE OF THINGS, WE DON'T HAVE THAT IN A LOT OF OUR OLDER HOMES HERE IN GALVESTON, AND THAT'S BEEN BROUGHT UP AS ONE OF THE ISSUES FOR US TO DO INSPECTIONS FOR SHORT-TERM RENTALS.
THE OTHER THING IS THAT THE CAPACITIES SUCH AS EVEN THINGS AS WATER AND SEWER, THESE WERE OLDER HOMES THAT WERE BUILT TO HOUSE A FAMILY OF FOUR PEOPLE AND NOW THERE'S 16 PEOPLE CRASHING IN THIS HOUSE AND IT'S CAUSING ALL ISSUES WITH OUR SEWER SYSTEM AND WATER SYSTEM, OUR TRASH SYSTEM.
BECAUSE OUR ALLEYS ARE DESIGNED FOR YOU TO HAVE SIX TRASH CANS, THINGS LIKE THAT.
[NOISE] I'M NOT TRYING TO SHOOT DOWN WHAT YOU'RE SAYING, I'M JUST TRYING TO SEE IF THERE WAS ANY PARODY WITH ANY OTHER CITIES THAT HAD OUR UNIQUE CIRCUMSTANCES.
>> WELL, SO SOMETIMES THE PARODY IS A LITTLE BIT DIFFERENT.
IN THE MOUNTAIN TOWNS, WE ALSO DID SPEAK A LITTLE BIT TO TELLURIDE THAT WE DIDN'T DECLARE THEM A VIABLE OPTION BECAUSE THEY'VE HAD SOME VERY SIGNIFICANT CHANGES WITH OVER-REGULATION THEY HAD ABOUT AN ISSUE RECENTLY.
[NOISE] BUT WHEN SPEAKING TO TELLURIDE, ONE OF THE THINGS WE WERE ABLE TO FIND IS THAT IN THOSE MOUNTAIN TOWNS, THEY ALSO HAVE WATER ISSUES OR WASTE ISSUES UNTIL THEY PUT RULES AROUND THAT.
ONE OF THE EASY ONES WAS BASICALLY, FRANKLYN BEING ABLE TO ENFORCE THE OCCUPANCY LIMITS OF THE HOME USING THE SOFTWARE COMPLIANCE TOOL.
AS A SOFTWARE COMPLIANCE TOOL, WE CAN NOW SEE ARC IS THE OPERATOR OF THAT HOME, MARKETING THAT HOME FOR A LARGER OCCUPANCY THAN IT SHOULD HAVE.
THEY'RE ABLE TO SEE ANY OF THE FEEDBACK CHAT OR ANYTHING ABOUT [NOISE] THE HOME IF THEY SAY THAT THE OCCUPANCY WAS GREATER THAN IT SHOULD HAVE BEEN.
THERE ARE CERTAINLY EXAMPLES OUT THERE OF WHAT WE CAN DO.
>> CERTAINLY, WE SHOULD ESPECIALLY AT MURRAY'S DISTRICT AND THIS IS SAYING FAMILY FOR SETTING [NOISE] WILL RENT A BEACH HOUSE, BUT THEN THEY WILL HOST AN EVENT AT SAID BEACH HOUSE THAT'S NEVER GOING TO GET FLAGGED BY YOUR SOFTWARE.
>> SOMETHING LIKE THAT, NO. WHEN IT CAME TO THINGS RESPONDING TO A LARGE PARTY, YOU'RE RIGHT, THAT'S PROBABLY NOT GOING TO COME THROUGH THE HOTLINE, THEY'LL PROBABLY CALL POLICE DIRECTLY.
>> THAT WAS ONE THING I WOULD MENTION ABOUT ABOUT THE SOFTWARE.
>> TEXAS IT'S ILLEGAL TO LIMIT OCCUPANCY, CORRECT?
>> NO, MA'AM, YOU CAN LIMIT OCCUPANCY.
>> BECAUSE I THOUGHT THAT THE SUPREME COURT RULED ON THAT CASE IN AUSTIN OR SAN ANTONIO.
>> NO. OF A PROPERTY? NO. ARE YOU THINKING OF THE SHORT TERM RENTAL ORDINANCE IN AUSTIN THAT WAS WITH THE SUPREME COURT RULED AGAINST THAT? I THINK THAT WAS THE OVERALL RULE.
IT WAS MORE ABOUT THE BAN OF NOT OWNER-OCCUPIED VACATION RENTALS IN AUSTIN, IT WAS THE CITYWIDE [NOISE] BAN IN SINGLE-FAMILY'S HOMES.
>> LET ME ASK THAT TO OUR CITY ATTORNEY BECAUSE WE'VE DISCUSSED THAT BEFORE.
[02:55:02]
DON, CAN YOU HEAR US?>> THERE'S A COMMENT, CAN THE STATE OF TEXAS, CAN YOU BAN?
>> LIMIT OCCUPANCY ON THE SHORT-TERM RENTALS? DON? [NOISE]
>> I'M THINKING ABOUT THAT. THAT'S AN OPEN QUESTION.
AS PART OF THE PROPERTY CONTENTS I GUESS NOT AND THERE BE BUILDING CODE, THERE IS AN INTEREST [NOISE] OF LIMIT OF OCCUPANCY THAT REALLY DO NOT ACTUALLY LIMIT OCCUPANCY.
RIGHT NOW, NO, I DON T THINK WE HAVE A MECHANISM.
>> WELL, SO WE WERE JUST TALKING ABOUT WHAT ARE THE SOME OF THE DIFFERENT PEER COMMUNITIES TALK ABOUT THE KEY POINTS OF ORDINANCE SUCCESS.
THEY ALL POINT TO THE SAME LIST, IT WAS NICE TO HEAR BACK SO MANY OF THE SIMILARITIES FROM THESE DIFFERENT CITIES FROM DIFFERENT PARTS OF THE COUNTRY, BUT THE REGISTRATION OR THE PERMANENT PROCESS THAT COMPLAINED HAVING A COMPLETE LINE THROUGH THE SOFTWARE TOOL RATHER THAN BECOMING SOMETHING THAT MIGHT BE AN ADDED BURDEN FOR THE CITY.
HAVING THE ORDINANCE IS ENFORCED THROUGH PUNITIVE ACTION AND FINDS.
WE DID HERE BACK A LOT OF GREAT POSITIVE COMMENTS ABOUT THE FINE STRUCTURE.
THE LOCAL POINT OF CONTACT WAS JUST UNANIMOUS.
PEOPLE WANTED TO HAVE A LOCAL POINT OF CONTACT BASED ON HOW QUICKLY SOMEBODY COULD RESPOND AND ALSO HOW EFFECTIVELY.
YOU DON'T WANT SOMEBODY WHO'S JUST A POINT OF CONTACT, JUST ACTING AS SOMEONE WHO WILL ANSWER THE PHONE, BUT SOMEBODY WHO ACTUALLY WILL BE ABLE TO ADDRESS A PROBLEM.
THE EDUCATION INITIATIVE WAS HIGHLIGHTED OFTEN, NOT JUST EDUCATING THE PROPERTY OWNERS AND PROPERTY MANAGERS AS SHORT TERM RENTALS, BUT EVEN EDUCATING THE COMMUNITY OVERALL.
IN GLENN COUNTY, A POINT BACK TIME AND TIME AGAIN, THERE'S STRONG EDUCATION EFFORT FOR PROMOTING THAT 24 HOUR CALL LINE AND SOFTWARE COMPLAINT SYSTEM THAT THEY HAVE PUT IN PLACE.
THESE ARE TWO THAT I REALLY ENJOYED HEARING BACK ABOUT BECAUSE IT MEANT A LOT TO ME FROM THE POINT OF GOVERNMENT INNOVATION AND GOVERNMENT SUCCESS.
TIMELY REPORTING OF THE COMPLIANCE DATA, BUT THEN REGULAR REVIEW OF THE COMPLIANCE DATA, OFTEN WITH A CROSS DEPARTMENTAL GROUP OF PEOPLE.
AGAIN, A LOT OF IT IS NON-VIABLE CITIES WOULD TALK ABOUT GETTING THE COMPLIANCE REPORT, LIKE A REGULAR REWARD FROM YOUR SOFTWARE COMPLIANCE TOOL, AND FRANKLY IT DIDN'T GO ANYWHERE.
INSTEAD, THE CITIES THAT SEEMED TO DO A LOT WITH IT GET PEOPLE INTO A ROOM, HOW IT WILL TAKE A LOOK AT IT AND SEE IF THERE'S ANY TRENDS OR ANYTHING THAT THEY CAN HELP ADDRESS REPEATEDLY.
THERE WE GO. ENFORCEMENT OF FINE STRUCTURE WE DID HEAR BACK FROM SOME OF THOSE DIFFERENT CITIES ON THE DIFFERENT TYPES OF FINES THAT THEY PUT IN PLACE.
BRYSON HAD MENTIONED SOME OF THE DIFFERENT VARYING FINE STRUCTURES THAT ARE PUT IN PLACE SO THAT FOLKS CAN RECEIVE FUNDS OVER TIME AND EVENTUALLY LOSE THEIR LICENSE OR THEIR ABILITY TO OPERATE.
THAT SEEMS TO BE SOMETHING THAT THESE CITIES POINTED TO AS BEING THE MOST EFFECTIVE.
KNOWING THAT THERE WAS A HEAVY FINE THAT WAS POTENTIALLY COMING THEIR WAY WAS TO GET PEOPLE TO HOP AND ACTUALLY WORK WITH WEIGHT.
THIS IS THE SPREAD ON SOME OF THESE DIFFERENT FINES.
I THINK IT WAS VEILED MENTIONED THE 500, 1,500 AND 2,500 DOLLAR FINE STRUCTURE AND FINALLY THE REVOCATION FOR TWO YEARS IF THERE WAS NON-COMPLIANCE.
TO BE FAIR, THEY ALSO MENTIONED THAT THEY TYPICALLY GET PEOPLE TO REACT ON FIRST WARNING.
WE HEARD BACK FIRST WARNING FROM GLENN COUNTY AND FROM NEW BRAUNFELS AS WELL AND THEY WENT BACK TO POINTING TO THE FACT THAT THEY WERE ABLE TO DO SUCH A STRONG EDUCATION EFFORT OF THEIR PROPERTY OWNERS AND PROPERTY MANAGERS THAT MORE PEOPLE IN A PROGRAM OPERATING AND PAYING ATTENTION SO THAT WHEN THEY WERE ABLE TO GIVE THEM ONE WARNING OR ONE FINE THEY FELT LIKE THE ISSUE WAS ADDRESSED QUICKLY.
>> IN NEW BRAUNFELS, WHAT ARE THEY FINING FOR?
>> JUST LIKE MOST CITIES WE TALKED ABOUT EARLIER, THEY'LL HAVE DIFFERENT RULES ON NOISE, PARKING, TRASH, OCCUPANCY.
TO MY UNDERSTANDING, YOU CAN LIMIT BY BEDROOM THEN TO OFTENTIMES YOUR CITY IS TALKING ABOUT TO PREVENT A PLUS TWO.
I BELIEVE THEY HAVE THAT IN PLACE IN NEW BRAUNFELS AND SO ANYTHING A LARGE PART OF YOUR GATHERING EXCEEDS. [OVERLAPPING].
>> CAN WE GET A COPY OF THEM ALL TO SEE WHAT YOU WERE DOING? LA QUINTA, IS THAT IN TEXAS?
>> NO MA'AM, IT'S IN THE COACHELLA VALLEY IN SOUTHERN CALIFORNIA.
>> THERE'S NOT A LOT OF GREAT VIABLE EXAMPLES THAT I WOULD PUT UP AGAINST GALVESTON FOR TEXAS.
I KNOW WE TALKED ABOUT PURE LAND AND INSPECT PURE LANDS INVENTORY IN A HALF DAY.
NO OTHER CITIES, MAYBE ARLINGTON OR AUSTIN,
[03:00:03]
WHICH ARE OBVIOUSLY SUCH DIFFERENT DYNAMICS FROM GALVESTON.COURT REVERSED IS ONLY DEVELOPING THEIR ORDINANCE FOR THE FIRST TIME.
FREDERICKSBURG JUST WENT THROUGH A LONG PUBLIC UPHEAVAL AND HAVEN'T HAD THE ORDINANCE IN PLACE FOR A MINUTE LONG ENOUGH TO SEE IF IT'S EVEN EFFECTIVE.
THAT LEAVES US WITH NEW BRAUNFELS, IT'S PROBABLY THE BEST TEXAS EXAMPLE THAT WE COULD SAY WAS COMPLEMENTARY IS A VACATION DESTINATION.
NOT WILDLY DISSIMILAR IN SIZE, THEY HAVE TO HAVE SOME VACATION RENTAL INVENTORY.
>> ONE THING I'D LIKE TO POINT OUT TO YOU BEFORE WE MOVE ON FROM THE FINE STRUCTURE IS GALVESTON'S GOING TO BE UNIQUE, EVEN MORE UNIQUE THAN IT ALREADY IS IN AN ENFORCEMENT STRUCTURE.
WHAT I MEAN BY THAT IS ALL THE OTHER CITIES WE TALKED TO YOU, IT'S THE CITY, RIGHT? THERE IS NO PARK BOARD OF TRUSTEES, JUST THE CITY THAT'S DOING THAT.
THE PARK BOARD IS THE COLLECTION AGENT, RIGHT? WE'RE THE REGISTRATION COLLECTION OF DISTRIBUTION AGENT FOR THE CITY, BUT WE DON'T HAVE ANY ENFORCEMENT AUTHORITY.
WHEN COUNCIL IS CONSIDERING ENFORCEMENT PROGRAM, KEEP THAT IN MIND THAT THE ENFORCEMENT AUTHORITY RESTS WITH THE CITY.
>> I'LL JUST MOVE QUICKLY ALONG.
I THINK WE HAVE FOR OUR NEXT LINE, TURN A LITTLE BIT MORE ABOUT THE ENFORCEMENT PROGRAMS. JUST CITIES TALKING ABOUT THAT THEY USED THAT DEDICATED ADMINISTRATIVE SUPPORT TO HELP THEM FIND SUCCESS.
THAT WAS ONE OF THE BEST THINGS THEY HAD, IF THEY HAD A SOLE POINT OF CONTACT WITHIN CITY GOVERNMENT TO HELP THEM ACHIEVE SUCCESS.
THAT THOSE CITIES ARE UTILIZING THEIR CODE ENFORCEMENT OFFICES TO HELP GET OUT THERE AND MAKE SURE THAT THEY ARE ENFORCING THOSE RULES AND REGULATIONS.
OF COURSE, JUST A COUPLE OF POINTS LIKE YOU HAD MENTIONED, YOU HAVE SOME CITIES GET THE CALLS INTO THE POLICE DEPARTMENT, HAS NOT EVERY CITIZEN KNOWS WHERE TO MAKE THE COMPLAINT CALL.
THERE ARE A COUPLE OF CITIES LIKE BRECKENRIDGE AND A FEW DIFFERENT CITIES AROUND THE COUNTRY THAT MIGHT USE A LAW ENFORCEMENT OFFICERS TO DO THEIR ENFORCING, BUT MOST OF OUR EXAMPLES USED A CODE ENFORCEMENT.
>> THERE'S A COMPLAINT CALL THAT GOES TO THE POLICE DEPARTMENT.
DO THEY HAVE A WAY OF TRACKING THEM WITH ISSUE WITH THE SOFTWARE TO ASSIGN THAT TO A PARTICULAR [INAUDIBLE]?
>> IF IT COMES THROUGH THE HOT LINE, YES.
IF IT DOESN'T COME THROUGH THE HOT LINE, IT GOES DIRECTLY TO THE POLICE DEPARTMENT THEN IT MAKES IT A LITTLE BIT TRICKIER TO TRACK.
THE POLICE WOULD NEED ACCESS TO THAT DATABASE AND KNOW THAT THEY'RE RESPONDING TO A SHORT TERM RENTAL, SO YOU CAN TRACK WHATEVER ACTION WAS TAKEN.
BUT IF THAT'S THE ONLY WAY WOULD OCCUR AT THAT POINT.
IF WE WANTED TO HAVE A TRACK OF IT, IT WOULD HAVE TO COMPLETE THE HOTLINE, BUT WE CAN'T INTERFACE.
WE HAVE SEEN INTERFACING WITH OTHER DEPARTMENTS, POLICE AND CODE ENFORCEMENT, THE SOFTWARE TOOL.
>> THAT'S WHERE THAT CROSS DEPARTMENTAL WORK REALLY CAME IN.
WE HEARD THAT OFTEN FROM FOLKS AS THEY COULD SIT HERE AND FLAG ANY DISTURBING TRENDS BECAUSE THEY SAW SOMETHING THROUGH ONE PORTAL, LIKE THE ONLINE 24 HOUR HOT LINE CALL CENTER, BUT THEN SOMETHING ELSE THAT CAME THROUGH LAW ENFORCEMENT OR EVEN A COUNCIL OFFICE.
JUST A COUPLE OF OTHER QUICK POINTS.
THE VAIL, NOTICE OF COMPLAINT SENT TO THE STR REPRESENTATIVE.
THAT WAS A REALLY NEAT THING THAT WE LEARNED WHEN I'VE BEEN HERE STUDYING THIS FOR SO LONG, NEVER HEARD OF THAT ONE.
IS WHEN A CALL CAME IN THROUGH THAT 24 HOUR COMPLAINT LINE, IMMEDIATELY A COMPLAINT IS DISPATCHED TO THE POINT OF CONTACT WITH THE SHORT TERM RENTAL TO THE TURNAROUND TIME FOR THAT COMPLAINT MOMENT.
THAT WAY, THAT MANAGER, OWNER, OPERATOR, IF THEY'RE DOING WHAT THEY ARE SUPPOSED TO BE DOING CAN ADDRESS IT IMMEDIATELY, AND MAYBE SOMEBODY FROM CODE OR POLICE DEPARTMENT OR LAW ENFORCEMENT DON'T HAVE TO GO OUT AND RESPOND.
>> WE HAVE THAT HERE WITH MEMBERS OF [INAUDIBLE] THAT'S AN IMMEDIATE, AND THEN [INAUDIBLE] OFF DUTY POLICE SO IT COVERS BOTH SIDES.
>> SO PALM DESERT AND I GUESS THAT WAS THE ONLY EXAMPLE, BUT THEY HAD ALSO MENTIONED THAT THEY HAVE THAT EMAIL OR VOICEMAIL.
I GUESS THIS SPEAKS TO YOUR QUESTION.
THE EMAIL OR VOICEMAIL THAT COMES THROUGH THE POLICE DEPARTMENT WILL BE SENT TO THE APPROPRIATE CITY STAFF, THEY DO TRACK THAT INTERNALLY.
JUST A COUPLE OF KEY TAKEAWAYS.
JUST THAT INTERESTING THING TO TALK ABOUT, THAT DEBATE THAT HAD HAPPENED IN GLYNN COUNTY IS NOT DISSIMILAR TO WHAT HAPPENS IN SO MANY OTHER CITIES AROUND THE COUNTRY.
IT WAS A VERY HIDED AND ONGOING DEBATE THAT WAS OF CONCERN, AND A LOT OF COMMUNITY FOLKS ISSUING CONCERNS ABOUT THAT NOISE PARKING TRASH, OCCUPANCY, HOUSING AFFORDABILITY, AND SO MANY OTHER THINGS.
BUT THEN AFTER ALL THAT AND ALL THE TALK OF THE NON-STOP NUISANCE BETWEEN JULY 1 AND OCTOBER 1, 2021 THAT THEY HAD RECEIVED 18 TOTAL COMPLAINTS, COMPLAINTS THAT RANGE OF DIFFERENT TYPES.
IF I REMEMBER CORRECTLY, THERE ARE POINT OF CONTACT WITH THE CITY TOLD US IT'S ONLY BUNCHED UP TO ABOUT 22 COMPLAINTS AS OF [INAUDIBLE] JUST HAVEN'T HAD THE COMPLAINTS TO BE ABLE TO SHOW THAT THEY HAD THE PROBLEMS THAT THEY WERE CONCERNED OF.
THAT SAID, THEY'VE GOT A GOOD REGULATION AND A STRONG EDUCATION PROCESS IN PLACE, AND I THINK WHAT THEY HOPED TO DO IS ONLY ALLOW A SPACE WHERE GOOD ACTORS ARE ABLE TO OPERATE LEGAL.
[03:05:04]
THEN IN 2021, PALM DESERT, ANOTHER CITY OF [NOISE] A HIGH AMOUNT OF SHORT-TERM RENTAL INVENTORY SHOWED PRETTY LOW-LEVEL OF TOTAL NUMBER OF COMPLAINTS.WHEN YOU GO THROUGH, YOU ACTUALLY FOUND THAT ABOUT A THIRD OF THEIR COMPLAINTS ARE TAGGED AFTER THE END OF THE INVESTIGATION AS UNFOUNDED.
MEANING, PEOPLE MIGHT HAVE CALLED IN SAYING, OH, THERE'S A PARTY AFTER DISPATCHING SOMEONE, THE PARTY WAS NEXT DOOR, OR THE PROPERTY IS BEING USED ILLEGALLY, SO SHORT-TERM RENTAL AND AFTER CODE ENFORCEMENT OFFICE VISITS, THEY'RE ABLE TO FIND OUT, IT'S THE OWNER USING THE PROPERTY.
WHATEVER THE REASON COULD HAVE BEEN, IT WAS TAGGED BY THE CITY IS UNFOUNDED.
THAT LEFT 2/3 OF THEIR COMPLAINTS BEING VIABLE, RANGING FROM ANYTHING FROM A NOISE VIOLATION TO [INAUDIBLE] SHORT-TERM RENTAL OPERATION.
IT TAKES US TO THE NEXT SLIDE.
I GUESS BEFORE WE GET INTO THIS, ANY FINAL THOUGHTS BUT ANYTHING THAT I MENTIONED OR WOULD YOU LIKE ME TO [OVERLAPPING].
THIS IS WHERE I'VE BEEN FOCUSED SINCE I FIRST GOT INTO THIS INDUSTRY 12 YEARS AGO NOW.
SOMETHING THAT CONFERENCE OF MAYORS PUT OUT, WHICH I THINK JUST CAPTURES THE ISSUE.
IF ONEROUS BURDENSOME REGULATIONS ARE CREATED, ARE WE GOING TO DRIVE ACTIVITY UNDERGROUND? IT SEEMS THAT ALL DATA, ALL EXAMPLES AROUND THE COUNTRY AND AROUND THE WORLD SAY YES.
BUT IF YOU CAN CREATE THAT FAIR REGULATION TO GET PEOPLE INTO A PROGRAM, ARE YOU ABLE TO LET GOOD OPERATORS OPERATE AND THEN CREATE LOCAL RULES THAT APPLY TO THE CONCERNS OF THE COMMUNITY AND CREATE THOSE LOCAL REGULATIONS THAT WILL WORK HERE? AGAIN, I BELIEVE THE ANSWER IS YES.
THAT OF COURSE HAS TWO GREAT OUTCOMES.
ONE, IT REDUCES THE BURDEN ON A CITY BUDGET THAT IS TRYING TO ATTEMPT COMPLIANCE WHEN MAYBE BAD REGULATIONS OR BURDENSOME REGULATIONS WERE PUT IN PLACE, BUT IT ALSO INCREASES THE RECEIPT OF THE HOTEL OCCUPANCY TAXES, WHICH CAN BE SO BENEFICIAL TO THE COMMUNITY.
ONE OF THE THINGS WHEN WE'VE STUDIED SOME OF THESE DIFFERENT CITIES THAT HAVE CREATED REALLY HEAVY RESTRICTIONS IS, IT DOES SIGNIFICANTLY DRIVE UP THE IMPACT ON THE CITY BUDGET.
OBVIOUSLY, THERE'S NO TWO WAYS ABOUT IT IF THERE ARE RULES AND CHECKS THAT HAVE TO BE IN PLACE WHERE CITY STAFF OR CITY EMPLOYEES ARE WORKING ON THIS ISSUE THAT DOES HAVE A COST, BUT THERE DOES SEEM TO BE SOME OF THESE SWEET SPOTS THAT ARE FOUND OUT THERE, AND I BELIEVE WE'VE SHOWN YOU SOME TODAY, AND I THINK EVERY SINGLE ONE OF THEM DRIVES HOME THAT NEED FOR THAT SOFTWARE COMPLIANCE TOOL TO HELP YOU ACHIEVE THOSE LOCAL RULES.
>> VERY GOOD. I APPRECIATE IT.
THIS TASK FORCE HAS EVALUATED THIS INFORMATION TOO, IS THAT RIGHT?
>> LET'S OPEN IT UP FOR QUESTIONS OR COMMENTS FROM COUNCIL.
ANY COMMENTS, QUESTIONS? I'M GOING TO JUST MAKE A FEW COMMENTS.
I THINK THAT WE OWE IT TO OUR RESIDENTS HERE THAT WE NEED TO MOVE AHEAD WITH SOME TYPE OF MORE COMPLIANCE ORIENTED POLICIES FOR SHORT-TERM RENTALS.
NOW, WHAT THOSE WILL BE? I DON T KNOW, THAT'S SOMETHING WE'RE GOING TO HAVE TO WORK OUT.
WHICH CAUGHT MY ATTENTION HERE THOUGH IS THIS CONTACTING THAT REPRESENTATIVE THAT HAS TO ADDRESS THIS IN ONE HOUR.
THAT SEEMS VERY INTERESTING TO ME, I'M NOT SURE HOW THAT WOULD FLY WITH THE TEXAS LAW, BUT I DON'T KNOW.
I THINK IT WARRANTS LOOKING INTO THAT MORE.
THE OTHER THING TOO, IN 2015, WE PASSED AN ORDINANCE HERE IN GALVESTON WHERE IF YOU WERE A SHORT-TERM RENTAL FROM THAT POINT FORWARD, YOU HAD TO HAVE A PARKING SPACE FOR EVERY BED.
[NOISE] YOU COULD HAVE TWO OF THEM ON THE STREET, AND AFTER THAT, [OVERLAPPING] THEY HAVE BEEN DIOPSIDE.
I DON'T KNOW WHATEVER HAPPENED TO THAT, BRIAN.
>> [OVERLAPPING] IN THE EAST AND IT GETS ENFORCED THROUGH YOUR NORMAL PARKING ORDINANCES, [NOISE] BUT WE NEVER FOLLOWED THROUGH WITH THAT ORDINANCE TO HAVE AN ENFORCEMENT COMPONENT TO IT.
>> WELL, I THINK WHAT HAPPENED IS IT WAS THE UNDERSTANDING OF COUNSEL AT THE TIME WHEN THESE SHORT-TERM RENTALS WERE REGISTERED, THAT THEY WOULD HAVE TO SHOW SOME TIME FOR PROOF OF THAT, WE NEVER DID THAT.
>> WE DON'T HAVE THE REGISTRATION [OVERLAPPING]
I'M NOT POINTING FINGERS, BUT I THINK WE NEED TO LOOK AT THAT BECAUSE WE HAVE IT ON THE BOOKS.
NOW, HOW MANY OF THESE SHORT-TERM RENTALS ARE MEETING THAT CRITERIA, I DON'T KNOW.
>> WHY, I CAN TELL YOU AT MINE [INAUDIBLE] DISTRICT ZERO, BUT I THOUGHT THAT WAS MORE DIRECTED TOWARDS BED AND BREAKFAST.
>> [OVERLAPPING] THAT WAS CAUSING SOME OF THE CONSTERNATION AS YOU RECALL IN THE LAST SELECTION, IS THAT THERE'S A CONFLICT IN THE ORDINANCE TOO BETWEEN OUR PARKING REGULATIONS,
[03:10:02]
AND THOSE THAT ARE ALLOWED FOR SHORT-TERM RENTALS WITH STRUGGLES WITH THAT AND THE EAST AND MORE THAN ANY PLACE ELSE BECAUSE WE DON'T HAVE PARKING RESTRICTIONS OVER IT DOWN LIKE THAT.>> YES. WE JUST REALLY STAYED FOCUSED ON THE REGISTRATION ASPECT OF THIS BECAUSE THERE ARE A DOZEN QUESTIONS LIKE YOU'RE RISING RIGHT THERE THAT WE'RE GOING TO HAVE TO TALK THROUGH TODAY.
TODAY IS PROBABLY NOT THAT THEY HAVE THAT CONVERSATION.
>> I THINK THERE'S A GREAT CONVERSATION.
I THINK MY BIGGEST OUT TAKE ON THIS IS WHERE THE FEES COULD GO AND THAT WOULD HOPEFULLY BE THE GENERAL FUND TO REDUCE OUR TAX BURDEN ON THE CITIZENS THAT LIVE HERE FULL TIME.
>> AS LONG AS WE DON'T INCREASE EXPENSES AND DOING THE THINGS THAT WE SAY WE'RE GOING TO DO.
>> WELL, YOU EASILY MEET EXPENSES BY RAISING THESE FEES A MODEST AMOUNT FROM WHAT WAS SHOWN UP THERE.
>> I THINK THAT'S WHERE WE START FIRST AND START SHOWING OUR CITIZENS THAT THESE SHORT-TERM RENTALS MAY BE A BURDEN BUT WE'RE ALSO TRYING TO ALLEVIATE SOME OF THE TAX BURDEN ON THEM BY DOING THIS.
>> YOU KNOW, IT WAS FASCINATING TOO THAT I'VE HAD IN MY MIND THAT WE WERE GOING TO GET THIS BIG MARSHALL PROGRAM OR SOMETHING GOING WHERE WE WOULD MONITOR, ENFORCE ALL THESE THINGS ON THESE, ON THE SHORT-TERM RENTALS.
IT SOUNDS LIKE OTHER CITIES THAT WENT THROUGH THAT FOUND THAT THEY JUST DIDN'T REALLY HAVE THAT MUCH NEED FOR CODE ENFORCEMENT, ONCE THEY STARTED THE PROGRAMS AND BECAME MORE FORMALIZED IN THEIR APPROACH TO SHORT-TERM RENTALS.
>> THEY DIDN'T REALLY HAVE A NEED FOR A CODE ENFORCEMENT IF IN TERMS OF ASSISTING WITH ENFORCING THE RULES, THEY WERE RECONSIDERING WAS A HUGE INVESTMENT.
>> FOR ENFORCEMENT WE'RE HIRING ADDITIONAL [INAUDIBLE].
>> YOU'D HAVE TO TIE THAT BACK INTO GEOGRAPHY TOO.
IT'S HARD IF WE HAVE ONE GUY DOING THIS AND HE'S GOT AN ISSUE IN DAVID'S DISTRICT AND THEN HE'S GOT A SECOND ISSUE ON MARIE'S DISTRICT AND ITS THIRD ISSUES IN MIKE'S DISTRICT.
HE'S PRETTY MUCH BURNED THE DAY AT THAT POINT.
THERE ARE THESE OTHER CITIES AREN'T CONFIGURED IN A 32 MILE LINEAR CONFIGURATION LIKE WE ARE.
SO I THINK OUR ENFORCEMENT IS GOING TO BE JUST A LITTLE BIT MORE EXPENSIVE THAN SOME OF THESE OTHER AREAS.
BUT I AGREE, WE COULD EASE INTO IT.
BUT THE PROBLEM IS, IS ONCE YOU SET THE FEE AND WE REALIZED WE DON'T HAVE ENOUGH, IT'S REALLY HARD TO GO BACK BECAUSE THESE PEOPLE WHO DON'T PAY THEIR FEE IF WE WAIT A WHOLE ANOTHER YEAR TO BASICALLY COME IN AND CORRECT THE SITUATION.
>> IF I COULD JUST ADDING ONTO THAT, CAN LET YOU GO FIRST IF YOU'D LIKE.
>> JUST ADDING ON TO THAT, WHAT MAKES THE ART GEOGRAPHY EVEN MORE OF A CHALLENGE, ESPECIALLY WHEN IT COMES TO THE SOFTWARE TOOLS THAT IT'S NOT CONTIGUOUS, IT'S NOT A CONTINUOUS GAUSSIAN.
GOT JAMAICA BEACH RIGHT THERE ON THE WEST SIDE, SO THAT EVEN MAKES IT A LITTLE BIT MORE CHALLENGING.
>> THE OTHER TWO ANIMALS THAT HAVE POPPED UP AND THEN PROCESS INVOLVE THIS, ONE BEING A GOOD ONE.
A LOT OF PEOPLE SINCE WE SEE A LOT OF NEIGHBORHOODS ACROSS THE ISLAND BECOMING OUR ZERO, A LOT OF PEOPLE ARE JUST REGISTERING AND NOT RUNNING.
BUT THEY'RE AFRAID WHEN THEY LEAVE THEIR HOUSE TO THEIR CHILDREN, THEY WOULDN'T BE ABLE TO AFFORD IT WITHOUT THE ABILITY TO RENT.
I DON'T KNOW, I GUESS YOU COULD TELL THEM BY YOUR SOFTWARE NOW, HOW MANY LICENSE PROPERTIES THAT ARE OUT THERE THAT ARE ZERO?
>> YEAH. WE CAN BREAK IT DOWN BY AS YOUR DISTRICT, COMPANY, YOU GRANDFATHER AS WELL.
>> THEN THE OTHER ANIMAL THAT HAS RULED IT'S HEAD IN THE LAST MONTH, THAT IS NOW MEETING WITH THE DIFFERENT REALTORS ACROSS THE ISLAND AND THEY'RE PURSUING IT, IS THE PICASSO MODEL WHICH IS TIMESHARE HOMES, AND ARE WE REQUIRING THEM TO BE LICENSED?
>> IF THEY SAY IS FOR MORE THAN 30 DAYS.
BUT IT'S NOT, SUBJECT TO [OVERLAPPING].
>> [INAUDIBLE] YEAH, SO PICASSO IS UNINTENDED CONSEQUENCES.
WHEN SOME FOLKS STUDY THIS, THEY DON'T VIEW IT AS A UNINTENDED CONSEQUENCE IN SOME COMMUNITIES THAT DO HAVE HEAVY RESTRICTION.
WHAT IT IS IS IT'S A TIMESHARE, SO PEOPLE ARE BUYING THEM, AND ACTUALLY SUPPOSEDLY HENDERSON CONSTRUCT TO NOT SHORT-TERM RENTAL, BUT THERE'S NO REAL WAY TO ENFORCE THAT, SO WHAT PEOPLE ARE SEEING IS IT'S A WAY FOR 8, 9, 10, 15 DIFFERENT FOLKS INVEST IN A SINGLE PROPERTY AND THEN IT MAKES IT MORE DIFFICULT TO KNOW WHAT'S HAPPENING WITH THE PROPERTY.
>> JOHN, IF YOU READ THE WHOLE PICASSO THINGS SINCE THEN YOU HAD THE RIGHT TO DO WITH YOUR SHARE WHAT YOU WANT, YOU CAN SHORT-TERM RENTAL.
>> RIGHT. YOU SAID [INAUDIBLE] YOU MEAN PICASSO.
>> I MEAN PICASSO, YOU CAN SHORT-TERM RENTAL.
[03:15:03]
WITH THE ART OF HAVING THAT KIND OF HOME OWNERSHIP WHERE YOU HAVE SO MANY DIFFERENT PEOPLE OWNING A HOME DOES CREATE THAT CHALLENGE OF KNOWING EXACTLY WHAT'S HAPPENING WITH THEM WHENEVER THAT PERSON, THAT INDIVIDUAL OWNER IS RESPONSIBLE FOR THAT WEEKEND.>> THEN THE OTHER ONE THAT BRIAN DOES REMINDED ME OUT, THAT'S POPPING UP, ESPECIALLY IN MY DISTRICT, IS PEOPLE COMING IN TO GRIP PROPERTIES ON THE BAY THAT HAVE A POOL AND THEY'LL SAY, WELL, SHORT-TERM RENT, YOUR POOL FOR A BIG PARTY.
THAT IS HAPPENING ON OUR ISLAND RIGHT NOW, PEOPLE ARE DOING IT.
>> THAT'S ANOTHER COMPANY THAT ROY HAS THAT MARKET ON THAT CALLED SWIFTLY.
[OVERLAPPING] SO UNFORTUNATELY, YEAH, IT'S SOMETHING THAT HAS POPPED US.
>> THAT'S WHAT I WILL CALL [OVERLAPPING] REGULATED.
>> WELL, THEN THERE'S ALWAYS THOSE OWNERS TOO THAT MAYBE THEY'VE BEEN AROUND FOR A LONG TIME AND THEY HAVE A CLIENT BASE, SO THERE'S NO REAL NEED FOR THEM TO USE AIRBNB OR VRBO.
MAYBE IT'S ALL DONE, SHAKE THE HAND OR ON A PHONE CALL.
IT'S DIFFICULT. I WAS A TAX AUDITOR FOR A LONG TIME.
YOU'LL NEVER SEE ATTACKS PROGRAM THAT SHOOT 100 PERCENT COMPLIANCE, IT DOESN'T HAPPEN.
BUT THAT DOESN'T MEAN THAT WE SHOULDN'T BE TAKING SOME EFFORTS TO TRY TO TAKE IT TO THAT POINT.
BUT THERE'S ALWAYS GOING TO BE THOSE KINDS OF ACTORS, THE CHALLENGES THAT PEOPLE COME UP WITH NEW WAYS TO MARKET AND STUFF, AND THERE'S ALWAYS THE CHALLENGES OF THOSE PEOPLE THAT JUST, THEY'RE GOING TO BE UNDERGROUND AND THEY'RE HARD TO FIND.
>> YOUR SOFTWARE PROGRAM YOU'RE SHOOTING AGAIN, YOUR TIMELINE AGAIN.
[OVERLAPPING]. THE PRICE WHAT DID YOU SAY?
>> THE TIMELINE IS SO WE WANT TO SELECT A VENDOR RIGHT AWAY, SO THAT'S THE NEXT STEP.
WE'RE SCORING ALL THE PROPOSALS, WE PLAN ON HAVING A CONTRACT BACK TO THE TRUSTEES, THE BOARD OF TRUSTEES FOR CONSIDERATION IN JULY, THE LATEST WOULD BE AUGUST.
IT JUST DEPENDS UPON HOW WE CAN GET ALL THAT WORKED OUT.
THE GO LIVE GOAL IS DECEMBER FIRST.
IF NOT, IF WE CAN'T GET THERE, WE'RE NOT GOING TO BE HASTY, WE CAN FALL BACK ON OUR CURRENT SOLUTION AND MAKE SURE THAT WE IMPLEMENTED CORRECTLY.
BUT THE GOAL IS THIS IN REVERSE.
>> OUT OF THAT RANGE, 50 K TO 300 K, WHERE DO YOU FALL IN THERE?
>> WITH OUR RANGE OF SERVICES THAT WE'RE WANTING, IT'S PROBABLY GOING TO BE UP AT THAT HIGHER RATE, SOMEWHERE BETWEEN 2 AND 300,000 DOLLARS.
>> WHAT IS THE RANGE OF SERVICES YOU'RE LOOKING AT?
>> THERE'S GOING TO BE THE ACTUAL REGISTRATION SYSTEM ITSELF, AND THAT'S GOING TO ALLOW FOR NEW REGISTRATIONS AND RENEWALS AND PAY, AND THEN THEY ALSO HAVE LIKE THINGS LIKE AUTOMATIC NOTICES AND THINGS LIKE THAT THAT COME OUT OF THAT SYSTEM.
THERE'S THE HOT-LINE, IT'S EXPENSIVE.
IT'S OUTSOURCED THROUGH THE VENDOR AND THAT'S YOUR PEOPLE ANSWERING PHONES AND STUFF LIKE THAT, THAT'S AN EXPENSIVE SOLUTION.
WE CAN RIDDLE THIS STUFF DOWN AS WE WORK THE CONTRACT HERE.
THE OTHER IS THE ACTUAL COLLECTION OF DISTRIBUTION OF THE HOTEL OCCUPANCY TAX RATE, SETTING UP THE SYSTEM FOR THAT.
THEN THERE'S THE SCRAPING OF THE PLATFORM IS GOING AND LOOKING AT NOT JUST THE £1000 GORILLA IN THE ROOM LIKE AIRBNB AND VRBO, BUT ALL OF THEM HOMEAWAY, BUT SCRAPING THOSE PLATFORMS TO SEE IF THERE'S ANY VISIBLE IS OUT THERE, PEOPLE ADVERTISING THEIR PROPERTY.
THAT ALSO HELPS IN THE EVENT OF AN AUDIT, SOMEBODY GETS AUDITED, YOU CAN SAY NO, WE HAVE EVIDENCED BECAUSE THE SYSTEM WILL LOG ALL THOSE ADVERTISEMENTS PICTURES, AND STUFF LIKE THAT.
THE LOG ALL THAT IS EVIDENCED IN CASE YOU EVER AUDITING SOMEBODY OR IF THERE'S A CHALLENGE NOW WE HAVE PROOF THAT YOU WERE ACTIVE FROM THIS [OVERLAPPING].
>> THE SOFTWARE ACTUALLY DOES THAT LIKE ROBOT WISE OR PERSONS REQUIRED?
>> IT'S THE ACTUAL SCRAPING IS AUTOMATED, THERE'S THE CODE, THE ZEROS AND ONES, WHATEVER THEY RANKED TO ACTUALLY DO A SCRAPING.
BUT THEY'LL HAVE ANALYSTS THERE THAT WORK FOR THE VENDOR THAT WILL TAKE THAT INFORMATION AND THEY COME AND THEY POPULATE MAPS, THEY POPULATE ACCOUNTS, THEY GIVE US REPORTS.
THEY GIVE US ALL THE LISTINGS THAT WE CAN FIND IN THE DATABASE AS REGISTERED AND THINGS LIKE THAT.
>> WE'LL HAVE ANOTHER MEETING, WE'LL BRING YOU BACK.
I'D LIKE TO STAY IN TOUCH WITH ALL THE SOFTWARE SITUATION.
BRYSON, WHERE WE STAND WITH ODU.
I DON'T KNOW HOW WE WORK IT OUT, BUT I WANT TO BE ABLE TO TRACK THE COMPLAINTS ON THESE [OVERLAPPING].
>> BUT I THINK THAT TO ME THAT COMPLAINT SHOULD COME TO THE CITY.
WE HAVE THE POLICE FORCE WE HAVE, I THINK THAT'S SOMETHING THAT SHOULD BE MONITORED BY THIS SECTION.
I JUST WANT TO MAKE SURE THAT WE HAVE A METHOD OF COLLECTING DATA ON THIS AND APPLYING IT TO EACH SHORT-TERM RENTAL.
>> GOOD THING TO LEAVE YOU WITH THIS, I USE THEM OFTEN AS AN EXAMPLE, BUT GLENN COUNTY STARTED, I FEEL LIKE IN YEAR 1 WAS ACHIEVING ABOUT AN 80 PERCENT COMPLIANCE WITH THEIR LOCAL ORDINANCE AND ITS NOW UP TO 98.
>> HOW MANY SHORT ROSE TO THAT?
>> ABOUT 3,000. BUT THAT MIX OF HOUSING STOCK, I WOULD SAY IS SIMILAR.
I LIKE THE FACT THAT IT WAS A COASTAL TOWN [OVERLAPPING].
>> DON'T KNOW THE TOTAL POPULATION, I'M SORRY.
[03:20:01]
BUT IT'S ALSO BECAUSE IT'S A COUNTY.THEY ARE ABLE TO DO LAND USE POLICY IN A COUNTY LEVEL IN GEORGIA, I GUESS.
BUT THAT'S ONE THAT I LIKE TO USE IN THIS EXAMPLE.
I THINK YOU CAN LOOK AT SOME OF THE OTHER CITIES AS EXAMPLES AND KNOW THAT COMPLIANCE CAN BE FOUND.
THAT IT DOES SEEM LIKE WE'RE ABLE TO DO IS YOU'RE ABLE TO SEE BECAUSE OF THE SOFTWARE COMPLIANCE TOOLS QUICKLY SCANNING ALL THOSE 35 PLUS ONLINE MARKETPLACES, FINDING OUT WHO'S MARKETING AND WHO'S NOT, WHO'S ACTUALLY RENTING AND WHO'S NOT, AND THEN MAKING SURE THEIR PAYING THEIR APPROPRIATE TAXES INVOLVED WITH VOCALIZATION.
>> LETS GIVE IT A MONTH LIKE YOUR EXAMPLES LIKE BREAK A RANCH AT SUMMIT.
ALSO, SUMMIT COUNTY HAS SEPARATE CHARGES EACH SUMMIT COUNTY ACTUALLY CHARGES REAL PROPERTY, BUSINESS PROPERTY ON YOUR HOUSE CONTENT.
EVEN SOME OF THE CITIES, THERE ARE MULTIPLE CHARGES THAT COME IN FROM THE COUNTY AND THE CITY.
>> YEAH, I KNOW I THINK SUMMIT COUNTY WOULD BE THOUGH FOR THE NON-INCORPORATED PARTS OF THE COUNTY [OVERLAPPING].
>> THERE'S ACTUALLY A COUNTY FEE.
>> THAT APPLIES FOR BRECKENRIDGE.
>> THAT APPLIES TO THE CITIES THAT ARE RENTING FRISCO, [NOISE] ALL THEIR CITIES.
>> WE JUST GOT BACK FROM WORK BY PLACER COUNTY, WHICH IS TRICKY AREA OF SOUTH LAKE TAHOE AREA? THE CITIES HAVE THEIR INDIVIDUAL REGULATIONS WITHIN THE COUNTY WOULD HAVE A SEPARATE SET.
ANYWAY, THERE ARE DEFINITELY EXAMPLES OUT THERE THAT YOU GUYS CAN USE AND THERE'S A LOT OF EXAMPLES OUT THERE THAT FALL FLAT AND HAVE A LOW LEVEL OF COMPLIANCE.
I THINK AS YOU GO THROUGH THIS DISCUSSION, USING THE DATA THAT COMES FROM THE SOFTWARE COMPLIANCE RULES CAN BE YOUR BEST GUIDE.
>> THANK YOU, EVERYONE. THANK YOU PRICE.
WE ALSO HAVE PART OF THIS DISCUSSION.
>> HOW FAR ARE WE? MESSAGES NAMED BOB NUMBER OF TIMES ALREADY, BUT DR. CRAIG, PLEASE COME FORWARD IF THIS DR. STEVE CRAIG.
[INAUDIBLE] GREG STEVENS. I'M DATING MYSELF, THAT WAS PETER GUN, BUT ANYWAY, [LAUGHTER] YOU [INAUDIBLE] [LAUGHTER].
ANYWAY, DON, DID YOU WANT TO INTRODUCE [NOISE] DR. CRAIG HERE?
>> YES, PLEASE. HI, DR. CRAIG ITS GOOD TO MEET YOU.
EVEN IF NOT IT'S ONLINE,[LAUGHTER].
SEVERAL MONTHS AGO, I STARTED LOOKING AT THE VIABILITY OF HAVING AN ECONOMIC STUDY DONE ON THE EFFECT OF SHORT TERM IN RENTALS FROM PROPERTY NEIGHBORHOOD ON THE ISLAND.
[NOISE] [INAUDIBLE] BOX OF ASSERTIONS THAT A SHORT-TERM RENTAL WOULD MOVE INTO THE NEIGHBORHOOD AND JOINING PROPERTIES WOULD IMMEDIATELY LOSE VALUE.
ONE OF THE OTHER COMPLAINTS IS THAT SHORT-TERM RENTALS DESTROY THE NEIGHBORHOOD DEALING AND THAT SETS THE BODY CAVITY OF OUR COMMUNITY.
I WAS WONDERING IF THERE WAS A WAY THAT A STUDY COULD BE DONE.
STUDY TO VERIFY THESE ASSERTIONS.
I AM REACHED OUT WHEN URBAN POLICY GROUP AT RICE UNIVERSITY PAY IN TAX RETURNS OVER TO DR. STEVENS.
[OVERLAPPING] I WONDERED IF AT LEAST THAT YOU'D SAY, YES, MAYBE WANTED TO HAVE THIS STUDY GO FORWARD WITH A FOCUS ON DO SHORT-TERM RENTALS AFFECT THE PROPERTY VALUES OF PROPERTIES JOINING SHORT-TERM RENTALS.
THE NEXT THING IS, WHAT OTHER ECONOMIC EFFECTS RESULT FROM SHORT-TERM RENTALS? WITH THAT, I'LL THROW IT OVER TO TOM STEVENS, DR. CRAIG, TO DISCUSS THE POSSIBILITY OF HAVING THIS ACADEMIC STUDY [NOISE] HERE AND PLEASE DOCTOR INTRODUCE YOURSELF AND GO AHEAD.
>> I'M STEVEN CRAIG. I'M AT THE UNIVERSITY OF HOUSTON WHERE I'VE BEEN FOR ACTUALLY QUITE A LONG TIME.
WE'RE IN THE PUBLISH OR PARISH BUSINESS, SO WE DO ACADEMIC RESEARCH, BUT WE ALSO REALLY INTERESTING TO DO PROJECTS IN THE COMMUNITY IN TEXAS IS A REALLY INTERESTING PLACE TO STUDY.
[03:25:04]
I'VE BEEN AT THE UNIVERSITY FOR A VERY LONG TIME.EVEN THOUGH I WAS BORN HERE BUT NONETHELESS.
WHEN THE REQUEST CAME TO THINK ABOUT THIS, ONE OF THE REASONS YOU ALL ARE STRUGGLING WITH THE PREVIOUS PRESENTATION, WHICH IS THAT THE SHORT-TERM RENTALS ARE REALLY A DIFFERENT INDUSTRY.
IT'S A NEW INDUSTRY. SOME PEOPLE THOUGHT WHEN IT STARTED THE HOTELS WOULD ALL BE EMPTY.
IT DOESN'T SEEM LIKE THERE'S VERY MUCH EFFECT ON THE HOTEL, SO THEY AREN'T COMPLAINING NEARLY AS MUCH AS I DON'T KNOW IF YOU GUYS ARE HEARING COMPLAINTS, BUT THEY'RE NOT REALLY.
THEN WHEN IT'S A NEW INDUSTRY, YOU GOT TO THINK ABOUT A LITTLE BIT DIFFERENTLY.
THERE ARE SEVERAL INTERESTING PARTS OF THE PREVIOUS PRESENTATION THAT TOUCH, I THINK, ON WHY YOU WANT TO THINK ABOUT IT IN A HOLISTIC WAY.
THE REAL QUESTION FOR THE POLITICAL ENVIRONMENT IS WHO'S BENEFITING AND WHO'S NOT BENEFITING AND, [NOISE] IN SOME SENSE, WHAT WOULD YOU DO WITH REGISTRATION MONEY? THE ANSWER SHOULD BE WHAT YOU WANT TO COMPENSATE THE LOSERS IF THERE AREN'T.
IS THIS A GOOD INDUSTRY FOR THE CITY? THAT'S AN IMPORTANT THING TO THINK ABOUT.
IT TURNS OUT IN ECONOMICS LITERATURE, IT'S NOT VERY WELL KNOWN [LAUGHTER] AND SO ONE OF THE REASONS I WAS INTERESTED IN THIS, IS THAT I HAVE A PHD STUDENT WHO'S ACTUALLY SO GOOD.
SHE'S FINISHING HER THESIS A LITTLE EARLY AND SHE HAS CAPACITY TO DO ANOTHER PROJECT, AND SO THIS WOULD BE THE PERFECT PROJECT FOR HER.
IT WOULD BE REALLY USEFUL TO YOU ALL I THINK, BUT ALSO USEFUL TO HER ACADEMIC CAREER.
[NOISE] SHE'S GOING TO END UP IN A REAL ESTATE DEPARTMENT OF A BUSINESS SCHOOL SOMEWHERE, AND SHE'S VERY GOOD.
[NOISE] WHEN YOU THINK ABOUT WHAT THE RIGHTS OR THE NEXT DOOR NEIGHBORS, ARE THEY REALLY WORSE OFF? WELL, SO THAT'S AN INTERESTING QUESTION AND IT'S NOT STRAIGHTFORWARD, BECAUSE ONE OF THE QUESTIONS IS, IF THEY'RE DOING AIRBNB, WHAT WOULD BE HAPPENING INSTEAD? WOULD THEY BE RENTING OUT THE WHOLE ROOM OR JUST ONE ROOM OR THE WHOLE HOUSE? YOU KNOW YOUR POINT, I THOUGHT ABOUT, PEOPLE THAT THEY CAN ONLY AFFORD THEIR HOUSE, SO THAT THEY CAN RENT IT OUT PART OF THE TIME.
FROM AN ECONOMIC PERSPECTIVE, IT'S A BIT OF A CAPACITY UTILIZATION ARGUMENT.
CAN WE USE MORE OF OUR HOUSING STOCK THAT WE'RE CURRENTLY USING WITH ALL THESE COVID CHANGES THAT ONE NEED TO DO STUDY, EVERYONE WANTS [LAUGHTER] BASED ON THEIR HOUSES? [NOISE] I GUESS WHAT I'M TRYING TO SAY IS I THINK THE ECONOMIC EFFECTS OF THE SHORT-TERM RENTAL MARKET ARE PRETTY COMPLEX AND NOT VERY WELL KNOWN, BUT IT'S PUSHING ON, IN THE OLD DAYS, WE SAID WATER BED, BUT A BEANBAG CHAIR.
[LAUGHTER] WHICH IS THAT YOU AREN'T QUITE SURE WHERE IT'S GOING TO COME OUT WHEN YOU PUSH ON IT.
[NOISE] I'VE BEEN THINKING OF A LOT OF WAYS WHERE THE PUSH PULL COMES, BUT THERE'S DATA THAT COULD BE TAKEN THROUGH IT.
[NOISE] I DON'T WANT TO GO INTO VERY MUCH DETAIL, BUT JUST FOR EXAMPLE, CLEARLY THE HOUSING MARKET IS REALLY IMPORTANT.
EVERYONE CARES ABOUT THEIR PROPERTY VALUES.
DO SHORT-TERM RENTALS MAKE PROPERTY VALUES GO UP OR DOWN, AND DO THEY MAKE THEM GO UP OR DOWN FOR EVERYONE OR JUST SOME PEOPLE? WE WANT TO KNOW THAT QUESTION.
THERE'S DATA IN THE WORLD THAT YOU COULD STUDY THAT, AND IF YOU GUYS DECIDE TO GO AHEAD WITH THIS PROJECT, I'D BE ASKING YOU TO HELP ME GET SOME DATA [LAUGHTER] BECAUSE THIS WOULD JUST BE AN EXCLUSIVE GALVESTON AND PROJECT.
I'M NOT GOING TO COMPARE IT TO OTHER CITIES OR ANYTHING LIKE THAT.
GALVESTON REALLY IS ACTUALLY AN UNUSUAL PLACE.
THERE'S A VIABLE COMMUNITY HERE, IT'S NOT JUST VACATIONS.
YOU GOT THE BIG CITY UP THE ROAD, AND SO THERE'S IMPORTANT INTERACTIONS WITH THAT WAY TOO, WHICH REALLY AFFECTS THE SHORT-TERM RENTAL MARKET.
I KNOW LOTS OF PEOPLE IN HOUSTON THAT OWN VACATION PROPERTIES HERE AND SOME OF THEM DO AND SOME DON'T DO SHORT-TERM RENTAL MARKETS.
[NOISE] BUT I'M PRETTY SURE THE DEMAND FOR PROPERTY WOULD BE LESS IF THAT MARKET DIDN'T EXIST.
IN SOME SENSE, WHY THE PROPERTY VALUE IS ACCELERATING? WELL, I THINK THE SHORT TERM RENTAL MARKET HAS HELPED [INAUDIBLE] WHICH HAS GOOD AND BAD ASPECTS.
DOES IT HELP EVERYBODY OR JUST THE VACATION PROPERTIES OVER THERE AND NOT NECESSARILY THE CITY OVER HERE LIKE THAT? IT'S INTERESTING TO THINK ABOUT [NOISE] [INAUDIBLE]
[03:30:01]
>> THEN IT DOES CUT BOTH WAYS FOR ABOUT THIS OTHER HOUSE.
YOU LIKE THAT IMPROVEMENT [INAUDIBLE] [NOISE] FOR THE NEXT 20 YEARS.
THAT DOESN'T DO YOU ANY GOOD EXCEPT IT IMPACTS YOUR TAXES.
>> [OVERLAPPING] UNLESS YOU BORROW AGAINST YOUR HOUSE.
[LAUGHTER]. I'M NOT ENCOURAGING YOU, I'M JUST SAYING. [LAUGHTER]
>> I THINK ONE OF THE THINGS THAT I THINK WE NEED TO BE ABLE TO DO IS DEFEND OURSELVES AND LAWSUIT WHEN WE'RE ATTEMPTING TO REGULATE SHORT-TERM RENTALS AGAIN, BECAUSE IT'S A VERY LITIGIOUS ENVIRONMENTS.
TEXAS IS RIPE FOR THAT ANYWAY.
[NOISE] WE STARTED PASSING ORDINANCES THAT RESTRICT ANY OF THESE ASPECTS.
WE CAN'T EVEN AFFORD TO DO THAT UNLESS WE HAVE THE DATA.
UNLESS WE CAN CARRY SOMETHING INTO COURT AND SAY, "THIS IS WHY WE [NOISE] CHARGE THAT, THIS IS WHY WE ENFORCE THAT, THIS IS THE IMPACT WE SEE ON THE COMMUNITY."
>> ABSOLUTELY. I THINK SOME OF THE QUESTIONS ABOUT WHAT WOULD YOU DO WITH REGISTRATION MONEY.
[NOISE] THE QUESTION IS, ARE YOU GOING TO PROVIDE SERVICES TO THE CUSTOMERS WHICH JUST MAKES GALVESTON MORE ATTRACTIVE IN GENERAL, OR ARE YOU JUST GOING TO TRY TO? [LAUGHTER] I THINK IN SOME SENSE, THE INFORMATION PALETTE IS REALLY IMPORTANT FOR MAKING GOOD PUBLIC POLICY DECISIONS.
I GUESS WHAT I'M REALLY TRYING TO DO IS IN SOME SENSE, YOU SHOULD BE THINKING ABOUT HOW CAN YOU FOSTER THIS BUSINESS WHICH IS A NEW ONE, AND AT THE SAME TIME, NOT HAVE DISPROPORTIONATE NEGATIVE IMPACTS ON CERTAIN GROUPS OR PEOPLE LIKE THAT.
>> BECAUSE WHAT YOU'LL HEAR, ESPECIALLY FROM THE BIG CORPORATE COMPANIES, BECAUSE I'VE HAD THIS HAPPEN IN HOMEOWNER'S ASSOCIATION MEETINGS AND THEY'RE LIKE, "WE ALREADY PAID OUR TAX, WE'RE REGISTERED, WHY SHOULD WE PAY MORE? HOTELS DON'T." I'LL SAY, "EXCUSE ME, HOTELS HANDLE THEIR OWN TRASH.
HOTEL HAVE THEIR OWN SECURITY.
HOTELS HAVE THIS, HOTELS HAVE THAT, YOU DON'T." SO THEREFORE OUR CITIZENS ARE PAYING FOR THAT BECAUSE WE HAVE TO INCREASE OUR RATES.
>> IF I COULD, THOSE ANECDOTAL STATEMENTS OF THAT SHORT-TERM RENTALS ARE MORE COSTLY TO US INDIRECTLY.
THAT IS THE TYPE OF THING WE NEED TO VERIFY IF THIS KIND OF A SIGN, WHICH WILL THEN ALLOW US TO JUSTIFY THE [INAUDIBLE] THAT MIGHT BE REQUIRED.
THE FLIP SIDE OF THAT- OH, I'M SORRY.
>> [OVERLAPPING] [INAUDIBLE] [NOISE] PROPERTY VALUES HAVE FALLEN, BUT THEY HAVE PRESENTED NO EVIDENCE TO SUPPORT THAT.
>> THE OTHER THING THOUGH IS THAT WHEN THERE'S A NEW INDUSTRY AND THERE'S MORE VISITORS, FOR EXAMPLE, THE RESTAURANTS BENEFIT AND THE OTHER ENTERTAINMENT SERVICES BENEFIT AND THEN THERE'S DEMAND FOR CLEANING AND SERVICES BECAUSE ONCE THE PROPERTY GETS USED MORE OFTEN THEN IT'S GOING TO WEAR OUT MORE AND SO THAT SPECTRUM OF SERVICES.
THAT'S WHY I'M SAYING I THINK THAT IT'S ACTUALLY COMPLEX, IT'S NOT STRAIGHTFORWARD.
YES, HOTELS, THEY GOT THEIR OWN TRASH, BUT MAYBE THESE SHORT-TERM RENTALS AREN'T A NET BURDEN BECAUSE OF ALL THE OTHER, I'LL JUST SAY MONEY SPENT [NOISE] ON ALL THESE OTHER THINGS.
UNDERSTANDING THAT AND OF COURSE, RESEARCH STUDIES, I DON'T WANT TO OVER CLAIM BECAUSE RESEARCH STUDIES NEVER GIVE YOU, OH, THE ANSWER IS $1.32 [LAUGHTER] PER $1, RIGHT? BUT YOU WILL GET A POINT ESTIMATE AND PART OF IT IS JUST TO THINK ABOUT [NOISE] WHAT THE WHOLE THING LOOKS LIKE, RIGHT? WE'RE GOING TO COLLECT A LOT OF DATA.
>> I THINK WE'D PROBABLY BE GLAD TO BE A GUINEA PIG FOR THIS EXACT SORT OF THING.
WHAT DO YOU SEE AS PROBABLE TIMELINE FOR PRODUCING SUCH?
>> SO AS YOU ALL KNOW, FASTER IS MORE EXPENSIVE.
WHAT I'D SAY THE PERFECT TIMELINE WOULD BE TO COLLECT DATA FOR A SEMESTER AND ANALYZE IT FOR A SEMESTER.
[LAUGHTER]. SO THAT WOULD SAY GET IT DONE LIKE NEXT MAY OR JUNE.
>> ABOUT A YEAR'S TIME OR THERE, I THINK?
>> CAN IT TAKE ACTION BEFORE THAT?
>> WELL, THAT'S WHY I ASKED THAT QUESTION BECAUSE WE'RE PROBABLY GOING TO NEED TO TAKE SOME STEPS.
>> WE DON'T NEED TO TAKE ACTION THE END OF THIS YEAR.
>> IF WE IMPLEMENT THE SOFTWARE LATE THIS YEAR, WE'LL PROBABLY NEED TO TAKE SOME ACTION BEFORE WE HAVE A DEFINITIVE STUDY, AND AS YOU SAY, A DEFINITIVE MAY NOT BE A GOOD WORD [LAUGHTER] TO APPLY TO.
GO. I'M ACTUALLY THE FATHER OF AN ECONOMIST.
[03:35:03]
>> THOUGHT THAT YOUR FATHER WOULD KNOW THIS [NOISE] [LAUGHTER]
>> WE PROBABLY WOULD NEED TO TAKE SOME ACTION BEFORE WE STUDY THAT.
>> WE DEFINITELY WOULD, IN MY OPINION.
DON, IT SOUNDS LIKE COUNCIL MAY HAVE AN INTEREST IN THIS.
YOU WILL BRING BACK TO US THE DETAILS ON HOW THAT UNFOLDS, THE COST AND ALL THAT.
>> THE DOCTOR AND I WILL WORK ON THAT.
I'M BACKED WITH A STUDY PROPOSAL IDEA AND THE TWO THESE OTHER DETAILS.
THINK WE COULD DO IT IN THE NEXT FEW WEEKS?
ANY THOUGHTS, COUNCIL, ON THIS? GO AHEAD.
>> I WAS JUST GOING TO SAY DOCTOR, MY HUSBAND FEELS YOUR PAIN BECAUSE HIS NAME IS CHRIS ROB [LAUGHTER] AND THEY HAVE TO BE [INAUDIBLE] CALL HIM ROB.
>> I WANT TO SAY TOO, I'M NOT SURE WHERE I GOT CRAIG STEVENS, BUT ANYWAY, YOU PROBABLY HAVE HAD THAT HAPPENED BEFORE.
>> LIKE I SAID, MY WIFE COMPLAINS ABOUT IT, SO IT'S [LAUGHTER] PERFECTLY FINE.
>> WHY DON'T WE MOVE FORWARD WITH THAT.
DON, IF YOU COULD GET WITH DR. CRAIG AND BRING BACK INFORMATION FOR US AND THEN WE'LL MOVE FROM THERE.
>> CRAIG, THANK YOU VERY MUCH.
>> I'M ACTUALLY ENJOYED THE HEARING.
YOU GUYS, YOU'RE TAKING YOUR JOB SERIOUSLY.
THE GROUP THING AND THE WORKSHOP THING IS A GOOD TOOL, BUT I HAVEN'T SEEN ALL GOVERNMENT ORGANIZATIONS USE.
>> THANK YOU. I APPRECIATE THAT AND IT SOUNDS LIKE IT WE'LL BE SEEING MORE OF YOU AS WELL.
>> WELL, ABSOLUTELY. LIKE I SAID, JUST COLLECTING INFORMATION IS OFTEN WHAT YOU ALL NEED.
CLEARLY, ONCE YOU PASS ONE LAW, YOU AREN'T DONE, ARE YOU? [LAUGHTER].
>> NOT AT ALL. THANK YOU VERY MUCH.
>> MY PLEASURE. NICE TO MEET YOU.
>> IT'S NICE TO MEET, SIR. THANK YOU FOR BEING HERE.
>> THANK YOU. I APPRECIATE IT.
>> NOW WE'RE MOVING INTO THE MEAT OF THE MEETING.
WE HAVE LUNCH HERE AND IF I COULD SAY, LOOKING AT THE REST OF THIS, I DON'T WANT SHORT CIRCUIT THE BEACH PRESENTATION BECAUSE I REALLY WANT TO GET SENSE OF COUNCIL AND SOME FEEDBACK.
IT WON'T HURT US THAT THE FURTHEST UNTIL JULY.
THAT'LL GIVE US A CHANCE TO HAVE A NEW COMMITTEE STRUCTURE IN PLACE OR A BOARD BY THAT TIME ANYWAY.
>> THAT WOULD BE GOOD AND I WAS GOING TO MENTION TO STAFF, I PUT THESE ITEMS ON THE AGENDA FOR ITEM 4F.
I'M GOING TO DEFER 4F TO,AND 4G.
DAVID, I WOULD ASSUME YOU WOULD WANT TO DEFER YOUR 4H?
[4.H. Report Of City Council's Park Board Representative (Collins/Brown - 10 Minutes)]
>> YEAH, AND THERE'S NOT MUCH OF A REPORT.
I CAN GIVE YOU THE REPORT ON STUART BEACH.
THE PARK BOARD SIDED WITH THE STUART BEACH DEVELOPMENT.
THEIR DRAINAGE SQUARES ARE IN PLACE AND SO FAR WORKING IS JUST FINE.
>> BRIAN BUTTON TAKE A LOOK AT [INAUDIBLE]. [LAUGHTER]
>> WELL, THEY COULD [INAUDIBLE] [OVERLAPPING].
>> OUR DRAINAGE IN THE CITY IS WORKING WELL TOO.
[LAUGHTER] LET'S SEE HOW IT GOES.
>> FOR CLARIFICATION SAKE, [LAUGHTER] WE'RE GOING TO DEFER ITEM FOR 4E, 4F, 4G, AND 4H.
>> I'VE ASKED DAN AND MIKE TO MAKE THEIR BUDGET VERY RAPID TO YOU GUYS LEAVE.
EVERYBODY'S TIRED, YOU'RE NOT GOING TO ABSORB HALF OF THIS ANYWAYS.
>> WE HAVE LUNCH HERE ALSO, COUNCIL.
>> WE COULD EAT WHILE YOU TALK.
>> MIKE, COME ON NOW. THANK YOU FOR YOUR PATIENCE.
[4.C. FY 2023 Budget And Capital Improvement Plan (CIP) Discussion - (M. Loftin/D. Buckley - 40 Min)]
YOU PROBABLY FOUND THE SHORT-TERM RENTAL DISCUSSION INTERESTING, DIDN'T YOU MIKE?>> ALSO STEVE AND CRAIG DIDN'T RECOGNIZE ME, I'M RECOGNIZES STAMPS FOR MANY ROOMS TODAY.
>> WHEN I STARTED TEACHING A BUDGET CLASS 30 YEARS AGO.
>> NO. HE WAS ON FINANCE, BUT HE SUGGESTED I SHOULD [INAUDIBLE] A SMALL BUDGET. [LAUGHTER]
>> I KNOW THAT WE'RE ALL THAT'S BETWEEN YOU GUYS AND YOUR LUNCH.
WE SEE THIS [LAUGHTER] AS A SIGNIFICANT [OVERLAPPING] TIME STOP.
IT'S PRETTY IMPORTANT TO US THAT WE GET THE INFORMATION TO Y'ALL.
WHAT WE'RE GOING TO START WITH IS I PROMISED Y'ALL MIKE AND I MET WITH EACH OF YOU DURING THE FIRST WEEK OF JUNE.
WE DISCUSSED, AT A HIGH LEVEL, THE REVENUE AND THE EXPENSES THAT WE FORECAST AT
[03:40:01]
THE VERY HIGHEST LEVELS AND TRYING TO RECONCILE AND UNDERSTAND WHAT KIND OF SHORTFALL OR EXCESS REVENUE WE MIGHT HAVE AT THE END OF ANY PERIOD FOR NEXT YEAR.THE CLEAR CONSENSUS FROM COUNCIL IS YOU WANTED US TO TRY TO IDENTIFY ADDITIONAL REVENUE SOURCES FROM FEES AND THE STRUCTURE OF HOW CITY ASSETS ARE MANAGED AND UNDERSTAND.
BRIAN'S BEEN TELLING Y'ALL THAT PROBABLY SINCE THEY IMPOSED THE 3.5 PERCENT TAX CAP.
SAYING GUYS, WE'RE GOING TO HAVE TO LOOK TO FEES.
I THINK EVERYBODY RECOGNIZES NOW THAT THAT IS WHERE WE HAVE TO GO BECAUSE OF THE LIMITATIONS THAT ARE ESTABLISHED OTHERWISE.
>> THERE ARE CERTAIN SERVICES WE'RE ALWAYS GOING TO PROVIDE THAT WE CANNOT GAIN REVENUE FROM, POLICE, FIRE, PARKS.
THESE ARE THINGS THAT WE PROVIDE TO OUR CITIZENS AS A RESULT OF THE TAXES THAT THEY'RE PAYING AT.
THERE ARE A LOT OF SERVICES THAT WE PROVIDE THAT ARE ENTERPRISE IN NATURE, AND THOSE FEES HAVE TO MARRY UP AND COVER THE COST OF THEIR OPERATION.
THAT'S WHAT WE'RE GOING TO WORK ON WITH YOU GUYS OVER THE NEXT YEAR.
>> RECOGNIZING THAT THE PROCESS THAT WE GO THROUGH, LIKE THE PROCESS OR ANYTHING WE DO TAKES TIME, SO TO SWITCH FROM WHERE WE ARE NOW TO A MORE FEE-BASED STRUCTURE IS GOING TO TAKE TIME.
THEY'RE GOING TO BE WORKING WITH YOU GUYS TO ESTABLISH HOW WE DO IT, WHERE WE DO IT, HOW DO WE BENEFIT FROM INCREASED FEES, DO WE USE IT AS WE'VE TALKED ABOUT TO INCREASE THE COST OF HOMESTEAD PROPERTIES IN GALVESTON.
JUST FOR THE BENEFIT OF THE PUBLIC THAT WEREN'T IN THOSE BRIEFINGS, WHAT WE TALKED ABOUT IS THE GENERAL EXPENSE INCREASES FOR NEXT YEAR.
WE'VE GOT COST OF LIVING INCREASES, CONTRACTUALLY DRIVEN FOR POLICE AND FIRE IS ABOUT $1.47 MILLION.
CIVILIANS SALARY AND COLLAR ADJUSTMENT'S ABOUT $557,000.
WE'VE BEEN OPERATING ON GRANTS AND THINGS AVAILABLE TO US THE LAST COUPLE OF YEARS, PROBABLY GOING TO GO UP ABOUT $600,000 NEXT YEAR.
THESE ARE ALL GENERAL FUND CONTRIBUTIONS OR EXPENSES.
PENSION CONTRIBUTIONS PROBABLY UP ABOUT $0.5 MILLION.
DRIVEN BY JUST THE PURE COST OF THE INCREASED BUDGET INFRASTRUCTURE SET ASIDE IS GOING TO GO UP.
ALL OF THOSE THINGS ARE GIVENS.
WE KNOW THAT WE CONTRACTION ARE GOING TO DO THEM OR WE'RE ACQUIRED BY ORDINANCE TO DO THEM.
FROM A REVENUE PERSPECTIVE, MIKE'S ESTIMATED ABOUT $1.1 MILLION IN INCREASED PROPERTY TAX REVENUE.
THAT'S GOING TO BE INCREASED BY 3.5 PERCENT, WITHIN THE 3.5 PERCENT CAP AND NEW CONSTRUCTION.
SALES TAX, MIKE'S GOT A 30-YEAR TREND THAT SHOWS THAT SALES TAX ALWAYS COMES BACK TO THE SAME LINE.
RIGHT NOW WE'RE EXCEEDING, WE'RE WAY ABOVE IT.
THE PERSPECTIVE THAT STAFF'S TAKING IS WE'RE LOOKING AT IT AS A ONE TIME.
WE WANT TO USE THOSE SALES TAX REVENUES FOR ONETIME EXPENSES AS WE GO FORWARD TO SEE IF THE LINE HOLDS TRUE BECAUSE WHAT YOU DON'T WANT TO DO IS COMMIT THOSE SALES TAX TO PERMANENT EXPENSES AND THEN THEY GO AWAY.
>> USE IT FOR ONETIME CAPITAL PURCHASES, CAPITAL EXPENSES?
>> THAT'S ONE OF THE THINGS WE'RE GOING TO BE PROPOSING.
[NOISE] MIKE'S GOING TO TALK TO YOU A LITTLE BIT ABOUT THAT.
IF THEY HAPPEN WHEN THE NEW CRUISE TERMINAL OPERATES, WE SHOULD GET ABOUT $300,000 FROM THAT.
THEN THE LIBRARY MANAGEMENT IS EXPECTED TO UP ABOUT $557,000 BECAUSE IF YOU REMEMBER THE AGREEMENT IS THAT WILL GO UP WHEN WE GO UP.
IF WE INCREASE X, THEY'LL GET THE SAME PROPORTIONAL INCREASE X AND THEN REFUND THE REST BACK TO THE CITY.
THOSE ITEMS ASIDE, AGAIN, I WANTED TO JUST GO THROUGH THAT.
EACH OF YOU HEARD THAT THIS FIELD FROM MIKE AND I WHEN WE MET WITH YOU, BUT I WANTED THE PUBLIC TO HEAR IT.
RIGHT NOW, WE'RE TRYING TO RECONCILE DOWN TO ABOUT $2.7 MILLION EXPENSE OVER REVENUE SHORTFALL.
WE'RE GOING TO HAVE TO LOOK AT ADDITIONAL WAYS TO RECAPTURE.
SOME OF THAT RESULT WHICH I JUST IDENTIFIED AS MOVING SOME OF THOSE CAPITAL EXPENSES BACK TO DOING BUNDLE SALES TAX, ONETIME EXPENSES, GET THEM OFF, AND SEE HOW TO BRING THE BUDGET FORWARD.
THERE WAS REMARKABLY A CLEAR CONSENSUS FROM COUNCIL.
I WILL TELL YOU TO THE PERSON, Y'ALL LIKE THE IDEAS AND BROUGHT FORWARD THE IDEAS OF FEES, RESTRUCTURING WHAT WE DO, HOW WE DO IT, BETTER PERFORMANCE OF SOME OF THE THINGS THAT WE HAVE IN PLACE NOW, BUT I'LL GIVE YOU A LIST WHICH I HANDED OUT TO YOU BUT COUNCIL RECOMMENDATIONS INCLUDED INCREASING FEES AND FINES.
RECOGNIZING THAT FINES HISTORICALLY, WE COLLECT ABOUT 50 PERCENT OF THEM.
IT'S A GIVEN THAT WE CAN INCREASE THEM, BUT REGARDLESS, JUST BECAUSE YOU SAID WE'RE INCREASING BY $1, IT DOESN'T MEAN WE'RE GOING TO EARN $1 WE'LL PROBABLY EARN $0.50 ON THAT.
THAT'S SOMETHING THAT HAPPENS TO THOSE.
COLLECTING ADMINISTRATIVE FEE FROM HOT.
PARK BOARD ADMINISTERS, MANY PROGRAMS UNDER HOT, THEY CHARGE AN ADMINISTRATIVE FEE AGAINST THAT ON ALL OF THEM.
WE DON'T DO THAT, YET WE DO SPEND A SIGNIFICANT AMOUNT OF RESOURCES MANAGING HOT ASSETS AND MANAGING HOT.
THAT WAS BROUGHT UP BY COUNCIL MEMBER.
[03:45:01]
BETTER MANAGE THE TOURIST-RELATED BUSINESS OPERATORS THAT ARE UTILIZING CITY ASSETS.THAT GETS BACK TO HOW DO WE CHARGE IN FRANCHISE FEE, HOW DO WE CHARGE FOR THE USE OF OUR PARKS? WHAT DO WE RECOVER FROM SEAWOLF PARK? WHAT DO WE RECOVER FROM DELLANERA? THAT'S A THING THE COUNCIL MEMBERS ASKED US TO LOOK AT.
YOU JUST TALKED ABOUT THE SHORT-TERM RENTAL REGISTRATION FEE.
ADMINISTRATION FEE FOR SEAWOLF PARKING, AGAIN, WE'RE UP THERE ENFORCING WORK THEY'RE DOING OUR THINGS.
HOT WON'T LET US CHARGE FOR ENFORCEMENT, BUT WE'RE STILL ADMINISTERING A PROGRAM.
CAN WE GET MONEY THROUGH ADMINISTRATION OF THAT? THAT'S SOMETHING WE'RE GOING TO DO.
FEES ON PORT PARKING OR PARKING IN GENERAL.
IT CAN BE DE MINIMIS FROM A PERSPECTIVE OF THE PERSON PARKING, BUT IN AN AGGREGATE, IT COULD BE SOME MONEY BACK TO THE CITIZENS OF GALVESTON.
>> THESE PARKING LOTS, IT'S GREAT FOR THE PORT.
I'M GLAD THEY'RE PARKING ALL THESE CARS, BUT THEY ARE EXACERBATING OUR FLOODING ISSUES EXPONENTIALLY BECAUSE WE ARE PAVING EVERYTHING AND PUTTING CARS ON IT.
THESE WERE AREAS THAT ONCE WERE ABSORPTIVE AREAS THAT WE DIDN'T HAVE TO DRAIN INTO OUR DRAINING SYSTEM.
IT SEEMS TO REASON THAT THERE SHOULD BE SOMETHING THERE.
>> I DON'T WANT TO GET OFF ON A TANGENT, BUT WHAT DOES THAT MEAN, FEES ON PORT PARKING?
>> I'M ALREADY ON A TANGENT BACKGROUND.
[LAUGHTER] WELL, CAN WE ADD A FEE? LET'S JUST SAY THEY CHARGE $50 FOR A WEEK AND THE CITY IMPOSED A $2 FEE ON PARKING ON CITY PROPERTY.
>> IT'S BEEN DONE IN OTHERS, MARFA, OTHER CITIES TOO.
>> I THINK IT'S SOMETHING. IT'S WORTHWHILE LOOKING INTO WHAT WE CAN DO.
YOU'RE GOING TO FORCE THOSE FEES ON THE TOURISTS.
THOSE ARE THE ONES IMPACTING OUR SERVICES.
>> THERE'S A COST TO ADDED CARS ON THE AISLE.
>> NO QUESTION ABOUT IT. I ALREADY TALKED A LITTLE BIT ABOUT THE CITY MANAGED THE ASSETS, ADDITIONAL REVENUE GENERATED FROM THOSE.
ONE OF THE COUNCIL MEMBERS BROUGHT UP THE ISSUE THAT CAN WE CHARGE WATER RATES AT A LOWER RATE TO THOSE HOMESTEADED PROPERTIES? IS IT IDEAL, SOMETHING THAT'S WORTH LOOKING INTO TO SEE WHAT THAT STRUCTURE WOULD LOOK LIKE.
A DE MINIMIS ON CRUISE PASSENGERS I THINK THE $0.50 FEE ON THE ROW OF CARIBBEANS COULD'VE BEEN A DOLLAR, COULD HAVE BEEN FIVE DOLLAR AND I DOUBT IT WOULD HAVE DIFFERED ANYBODY FROM CATCHING A CRUISE.
WHAT SHOULD THAT FEE HAVE BEEN AND HOW MUCH CAN IT BE IN THE FUTURE? IMPACT FEES ON NEW DEVELOPMENT.
WE'VE TALKED ABOUT THAT, WE'VE TALKED AROUND IT, WE HAVE PASSED AN IMPACT FEE BUT WE NEVER PUT AN AMOUNT ON IT SO THAT'S NEVER BEEN TRULY VETTED ABOUT WHAT THE COST IS WITH NEW DEVELOPMENTS IN GALVESTON AND WHO PAYS FOR IT.
INCREASED SANITATION FEES ON SHORT-TERM RENTALS OR USE A REGISTRATION FEE TO REDUCE RESONANCE SANITATION COST.
IT WAS AN INTERESTING CONVERSATION WE HAD ON THAT WITH A COUPLE OF COUNCIL MEMBERS IS THAT, MAYBE THE FEE ON SHORT-TERM RENTALS BE USED TO REDUCE THE SANITATION FEE OR THE FEES THAT WE CHARGE OUR RESIDENTS TO OPERATE THAT SERVICE THAT WE EXCLUSIVELY OFFER ON THE CITY.
I THINK WHAT WE GOT FROM YOU GUYS WAS YOU WANTED US TO LOOK AT FEES, YOU WANTED TO LOOK AT HOW TO USE THOSE FEES TO DIRECTLY REDUCE THE COST ON OUR TAXPAYERS.
THAT'S THE CHARGE, WE'RE ESTABLISHING THAT AS A MANAGER'S OBJECTIVE FOR THIS COMING YEAR TO BRING YOU GUYS BACK RECOMMENDATIONS ON HOW TO DO IT, WHAT TO DO IT, TALK WITH YOU ALL AND SEE, IF WE'RE HEADED DOWN THE RIGHT DIRECTION BUT CLEARLY WE GOT THE MESSAGE.
THE MEETINGS WERE EXCEEDINGLY USEFUL TO US, BECAUSE WE WERE ABLE TO GIVE YOU THE HIGH LEVEL VIEW WHERE WE GOT OUT OF THE GATE ON THE BUDGET AND KNOW WHERE YOU ALL ARE COMING FROM A PERSPECTIVE OF WHAT YOU WANT TO SEE US DO AS A MANAGEMENT.
IT'S SOMETHING IN THE PAST WEEK WE'VE FOLLOWED UP OUR OWN OBJECTIVES AND WHERE WE WANTED TO BE AND THEN TOLD YOU ABOUT IT BUT THIS WAY WE GOT YOUR INPUT UPFRONT AND THIS WILL CLEARLY CHANGE THE DIRECTION WE GO [NOISE] IN THE COMING YEAR.
WANTED TO GIVE YOU ALL THAT SUMMARY BEFORE MIKE STARTED SO NOW WE'LL TURN IT OVER TO PROFESSOR LOFTIN SO HE CAN, START SCROLLING ON THE BUDGET.
>> I'M JUST GOING TO SAY WHAT YOU SAID.
>> SERIOUSLY HE'S COVERED ALL THE MAJOR POINTS AND WHAT I'VE HANDED OUT IS JUST AN UPDATED VERSION OF THOSE SAME MEMBERS STRUCTURED A LITTLE DIFFERENTLY AND WE'LL TALK ABOUT THAT.
THERE'S A CONCEPT OF BALANCED BUDGET THAT INCLUDES THE TERM STRUCTURALLY BALANCED BUDGET.
USUALLY WHAT THAT MEANS IS CURRENT INCOME EQUALS CURRENT EXPENSE, YOU DON'T OVERSPEND YOUR CURRENT PERIOD EVEN IF IT'S THE SAME PRINCIPLE OF NOT TRYING TO PUT YOUR GROCERIES OR YOUR RENT ON A CREDIT CARD AND DEFINITELY, WITHOUT HAVING THE INCOME TO PAY IT OFF.
MOST OF THESE INCREASES ON THIS PAGE THAT YOU'RE SEEING ARE RECURRING COSTS SO, RIGHT NOW WE'RE CHALLENGED WITH THE REVENUE GROWTH.
WE'VE GOT TO FUND THEM WITH RECURRING REVENUES WHERE A MILLION OR FOUR, IN THE HOLE.
[03:50:05]
REGARDLESS OF HOW YOU APPROACH ANY LISTS THERE'S BEEN A LOT OF DISCUSSION THIS YEAR ABOUT USE OF SALES TAX BECAUSE OF THE WAY THE REVENUE'S GROWN.WHAT I'VE DONE IS I'VE ADDED A COLUMN TO THIS PAGE THAT SHOWS RECURRING COSTS, RECURRING REVENUE.
I'M SHOWING YOU ONETIME COST AND JUST MY IMPRESSION OR MY BELIEF AS TO HOW MUCH OF OUR SALES TAX MIGHT BE ONE TIME REVENUE.
LET ME GET YOU TO LOOK AT THIS GRAPH FOR JUST A SECOND.
YOU'RE TALKING ABOUT THE MODEL AND I PUT THIS GRAPH AND EVERY QUARTERLY REPORT, EVERY BUDGET, SO PEOPLE CAN SEE WHAT WE'RE REALLY TALKING ABOUT.
THE LITTLE BLACK SQUARES ARE ACTUAL SALES TAX FOR EACH FISCAL YEAR BEGINNING IN 1993.
THE GREEN DOTS ARE WHAT THE MODEL SAYS WE SHOULD HAVE COLLECTED IN THAT PERIOD OF TIME THAT YEAR BASED ON ECONOMIC CONDITIONS THAT EXISTED INCLUDING THE THINGS LISTED AT THE TOP OF THE PAGE.
REGIONAL EMPLOYMENT EXPORTS TO MEXICO, US GROSS DOMESTIC PRODUCT, USED GASOLINE PRICES, SUMMER SEASON AND HURRICANES AND PANDEMIC.
YOU CAN SEE THAT THE LITTLE DOTTED RED LINE TENDS TO RUN DOWN THE CENTER OF THE ACTUALS OF THE MODEL ESTIMATES.
THAT'S THE TREND THAT'S BEEN ADDED SIMPLY BY THE STATISTICAL PACKAGE, THAT PULLS IT ALL TOGETHER AND WHEN THE SALES TAX RUNS OVER IT FOR A YEAR OR TWO IT ALWAYS COMES BACK.
IF IT RUNS UNDER IT IT ALWAYS COMES BACK TO THAT LONG-TERM TREND, THAT'S GALVESTON, THAT'S US.
WELL, RIGHT NOW WE'RE AT THE, 20,000,933 POINT WHICH IS THE NEXT HIGHEST GREEN DOT ON THIS PAGE.
WE'VE GOT A BIG BUBBLE THAT WE'VE BEEN TALKING ABOUT, THAT IS ABOVE THE LINE.
THE QUESTION IS HOW TO USE THAT.
WE DON'T KNOW HOW FAST IT'S GOING TO COME BACK TO EARTH.
OUR LARGE FUND BALANCE CAME LARGELY FROM THAT.
IF WE IDENTIFY A LOT OF NEW FEW IDEAS THAT WE CAN IMPLEMENT AND PUT IN PLACE FOR NEXT YEAR'S BUDGET, THAT WOULD BE A GOOD THING IT WILL REMOVE SOME OF THE FEAR IN MY HEART ANYWAY FROM A FORMER COMMITTEE, THE SALES TAX.
THIS IS REALLY A RISK MANAGEMENT PROBLEM AND IT'S HIGHLY SUBJECTIVE BUT I THINK VISUALLY YOU CAN SEE WHERE WE'RE AT AND HOW THOSE GREEN DOTS GO UP AND AT LEAST IN ONE SCENARIO COME BACK DOWN.
I'VE GOT THE EFFECT OF THE STIMULUS PACKAGES AND INFLATION AND ALL THE THINGS THAT ARE HAPPENING RIGHT NOW CONTINUING THROUGH THIS NEXT FISCAL YEAR.
WE GO INTO REVIEWING WHAT THE DEPARTMENTS HAVE SUBMITTED IN THE BUDGET WORK PAPERS THAT WE'LL BE WORKING WITH.
WE'VE GOT TO MAKE CUTS, WE WILL HAVE TO MAKE CUTS TO ACCOMPLISH SOME OF THIS BECAUSE FOR INSTANCE, WE REALLY CAN'T LEAVE THE CIVILIANS OUT OF A COVID WITH INFLATION WHEREAS WE GOT TO HAVE SOMETHING FOR OUR CIVILIAN WORKERS.
THERE'S VARIOUS THINGS DAN COULD TALK ABOUT THAT ARE BEING CONSIDERED FOR ALL THREE FUNDS REALLY.
AGAIN, HE TALKED THROUGH PRETTY MUCH EVERYTHING ON THAT ALREADY GOT ON THE LIST.
ONE THING TOO, I MET WITH MY MOTHER LAST WEEK, WE BEGAN TO TALK ABOUT CALCULATION OF THIS YEAR'S LIBRARY CONTRIBUTION.
BECAUSE IT APPEARS AS THOUGH OUR PROPERTY TAX ROLL IS GOING TO INCREASE 19, 20 PERCENT.
AGAIN JUST LIKE LAST YEAR, THE CONTRIBUTION THAT THE LIBRARY IS GOING TO MAKE BACK FROM THEIR CHARTER NUMBER TO KEEP THEIR NET INCREASE THE SAME AS US IS GOING TO GO OVER A MILLION.
BUT THEY'RE STILL GETTING THE PERCENT INCREASE THAT WE ARE OVERALL.
IT WOULDN'T JUMP THAT FAR THAT FAST, EXCEPT FOR THE FACT THAT THE TOTAL ROLL LOOKS LIKE IT'S GOING TO BLOW DOORS.
[NOISE] THAT'S REALLY WHERE WE'RE AT WITH.
>> I JUST WANT TO STRESS TO YOU ALL AGAIN, YOUR ADD MORE TAX DOES NOT EVEN PAY FOR YOUR POLICE AND FIRE.
>> SOMETHING TO THINK ABOUT, WE TALKED ABOUT THE PROPERTY TAX EXEMPTION, THE MINIMUM HOMESTEAD EXEMPTION EARLIER.
WHEN WE LOOKED AT THE STATISTICS LITTLE FURTHER ON THAT,
[03:55:02]
IT'S 1.2 PERCENT TO ALL THE OTHER TAXPAYERS AND AN AVERAGE OF ABOUT $18 A YEAR.THOSE EXEMPTIONS BY THEIR VERY NATURE ARE REDISTRIBUTION, AND THAT'S A PART OF WHAT WE DO EVERY YEAR.
WE FOREGO THE COLLECTION OF ABOUT FOUR OR FIVE MILLION DOLLARS TO TAXPAYERS WHO QUALIFY WITH THE HOMESTEAD.
>> SURE. IT'S A REDISTRIBUTION FOR THE ELDERLY.
>> JUST BECAUSE WE FREEZE THEIR TAXES DOESN'T MEAN THAT OUR EXPENSES GO DOWN BY THAT AMOUNT.
THAT GETS REDISTRIBUTED TO THE YOUNGER TAXPAYERS ON THE ISLAND.
SAME THING WITH HOMESTEAD BUYERS, SAME THING WITH DISABLED.
HOW IS THIS BIG. IT IS HOW YOU WANT TO CUT IT UP.
MIKE, SO THIS 5.5 CENT RATE REDUCTION TO OUR TAX RATE, WHERE DOES THAT PUT US AT ABOUT 3.5 PERCENT CAP?
>> WELL, THAT WAS BASED ON ALL THE NUMBERS, I'M ASSUMING RIGHT NOW WITH VERY EARLY RETURNS IN, THAT WOULD PUT US AT 3.5 PERCENT INCREASE.
>> I THINK YOU'RE ASKING WHAT THE RATE WOULD BE.
>> WELL, THE RATE WOULD BE 0.443.
>> WHERE ARE YOU READING AT YOUR [INAUDIBLE]?
>> OH, IT'S ON THAT. TELL ME WHAT THAT ON THE PREVIOUS SHEET SHE GAVE ME, YOU HAD A NO NET REVENUE RATE ON HERE.
WHERE WOULD THAT FALL? REVENUE OVER UNDER EXPENSES, YOU ARE OVER BY 250,000 HERE ON THIS BUDGET?
>> YOU'D GIVE UP ALMOST ALL OF THE INCREASE IN THE LIBRARY CONTRIBUTION AND THAT'S EXACTLY WHAT IT'D BE, IT'D BE ABOUT A MILLION ONE OR A MILLION TWO BASED ON WHAT I'M LOOKING AT RIGHT HERE.
>> NO. IT'S ON THIS SHEET, I THINK NUMBER 4.
>> YES. I'M SORRY. [INAUDIBLE].
>> WE'RE GOING TO HAVE TO CUT ANY WAY TO GET DOWN TO THE LEVEL OF WHAT 3.5 PERCENT WILL ALLOW US TO AFFORD.
>> RIGHT NOW WE'RE GOING TO HAVE TO CUT A BILLION OR FOUR SOMEWHERE.
WELL, 3.5 PERCENT INCREASE TO HOLD UP AND PROVIDE US A STRUCTURALLY BALANCED BUDGET.
>> WELL, YOU HAVE 2.7 HERE RIGHT NOW, SHORTFALL.
>> THAT'S WHERE WE WERE WHEN WE DID [INAUDIBLE] THIS PROJECT WITH YOU AND I DIDN'T PUT THE SALES TAX OF THE PAGE ON THE FORM IT IS NOW, SO TWO MILLION 263.
>> IF YOU TALK TO US TOMORROW, THAT NUMBER IS GOING TO CHANGE AGAIN, CORRECT. BECAUSE WE'RE CONSTANTLY.
>> WITH 3.5 MILLION [OVERLAPPING]
>> DAVID SMITH'S GETTING EXPENSIVE TO KEEP GUYS I GUESS.
I THINK WE'RE GOING TO HAVE TO PUT HIM UP FOR ADOPTION.
>> MEETING THE 3.5 PERCENT CAP, JUST MEANING THAT WE'RE ABOUT HOW MUCH WHAT YOU'RE PREDICTING RIGHT NOW ARE [OVERLAPPING]
>> THAT WOULD PUT YOU IN THE 2.7 RANGE BECAUSE YOU'D HAVE TO ADD A BILLION OR TWO BACK ON TOP OF A BILLION OR FOUR RECURRING COST REVENUE UNDER THE EXPENSE.
>> THAT'S MEETING THE 3.5 PERCENT?
>> YES. WITH THE POLICE GETTING WELL OVER A $1,000,000 ON THEIR COVER, AND THE OTHER MANDATORY THINGS YOU'VE GOT ON HERE.
SERIOUSLY, THE FIRST THING THAT WE WOULD HAVE TO DO IS START CUTTING PEOPLE SOMEWHERE.
I'VE DONE SOME LOOKING AT WHAT THAT WOULD COST US IN TERMS OF UNEMPLOYMENT BENEFITS IS NOT ZERO.
WE WOULDN'T GET, FOR INSTANCE, IF WE DECIDED TO LAY OFF 15 DRIVERS FROM ISLAND TRANSIT, WE WOULDN'T GET A 100 PERCENT SAVINGS FROM ELIMINATING THOSE SALARIES.
WE'D END UP HAVING TO PAY SOME AMOUNT TOWARDS THEIR INCOME.
I WANT TO SAY IF SOMETHING IN THE RANGE OF NINE AND $10,000 PER PERSON.
[04:00:03]
>> LET ME JUST ASK THIS QUESTION AND THIS MIGHT NOT BE THE RIGHT WAY TO GO ABOUT MAKING THIS WORK, BUT JUST SAY IF YOU PUT A SHORT-TERM RENTAL FEE OF $500 ON RENTAL UNIT, YOU WOULD INCREASE AND THAT CAME TO THE GENERAL FUND.
YOU COULD GO TO NO NEW REVENUE RATE?
>> MATHEMATICALLY THAT'S ABOUT RIGHT.
>> IT WOULD TAKE YOU MORE THAN A YEAR TO GET THE MONEY.
>> YOU JUST SAY THAT WOULD GET YOU THERE.
>> CAN I ASK A QUESTION? WHAT WOULD YOU DO WITH AN EXTRA?
>> YOU GET THAT MONEY, GET NEXT YEAR.
>> YEAH, I WAS GRADED ON [LAUGHTER] THAT.
>> CONDITION NOT BE ON SHORT-TERM RENTALS.
IF IT'S BEING USED EITHER FOR PURPOSE OF JUST PAYING THE COST OF ADMINISTERING THE PROGRAM, IT BECOMES AN OCCUPATION TAX, WHICH IS NOT AUTHORIZED IN ANY STATUTE.
WE MIGHT HAVE TO PAY THAT BACK ALONG WITH [INAUDIBLE] WE GOT TO BE REALLY CAREFUL ABOUT LOOKING AT SHORT-TERM RENTALS THE NEXT [INAUDIBLE]
>> WE CALL IT A CASH COW AND BUDGETING.
>> WELL, BUT IF YOU DID TAKE AN APPROACH SAY YOU DIDN'T INCREASE THE FEES TO 500, SAY YOU INCREASED IT TO 150, BUT THEN YOU PUT THAT BEDROOM, HER BEDROOM BECAUSE THAT'S WHAT YOU HEAR FROM THE SMALL ONES SAYING DAVID'S DISTRICT OR THE END TOWNS, THEN YOU PUT A BEDROOM FEE LIKE BRECKENRIDGE THAT HAD THAT.
YOU CAN PROBABLY INCREASE MORE REVENUES.
WHAT QUESTION IS THAT AN FY24 REVENUE SOURCE? [INAUDIBLE] [OVERLAPPING]
>> MY POINT HERE IS THAT AND I THINK YOU ALL HAVE DONE A GOOD JOB OF OUTLINING WHERE ADDITIONAL SOURCES OF REVENUE COULD COME FROM.
WE'VE TALKED ABOUT THIS FOR THE LAST TWO YEARS.
WE'VE GOT TO HAVE MORE REVENUE.
WE CANNOT KEEP GOING UP THREE-AND-A-HALF PERCENT EVERY YEAR ON A SEASON.
THE EXEMPTION THAT WE'VE PUT IN PLACE, IF WE PUT THAT IN PLACE TODAY IS REALLY A ONE TIME DEAL.
BECAUSE NEXT YEAR THOSE PEOPLE GET THE EXEMPTION, BUT YOU GO UP ON YOUR RATE, AND THEY PAY MORE MONEY.
>> WELL YOU MEAN GO UP ON THE PROPERTY TAX RATE?
>> YEAH, BECAUSE THEIR VALUE WILL GO UP.
I MEAN, THE PROBLEM IS THERE VALUE KEEPS GOING UP.
>> EVEN IF YOU'RE FROZEN. [OVERLAPPING]
>> BUT THERE'S A FALLACY VIEW DISCUSSION IN THAT.
IF I'M NO DIFFERENT THAN A HOMEOWNER AND THAT MY COSTS ARE GOING UP TO PROVIDE THE SERVICES THAT THEY WANT.
IF I'M PAYING MORE FOR GAS, IF I'M PAYING MORE FOR LABOR, IF I'M PAYING MORE FOR INSURANCE AND THEY WANT THE SAME LEVEL OF SERVICE, TO EXPECT THE CITY TO KEEP CUTTING.
THAT IS MATHEMATICALLY IMPOSSIBLE.
THIS BECOMES A MATHEMATICAL FUNCTION NOT A POLITICAL DISCUSSION.
>> I DIDN'T SAY ANYTHING ABOUT CUTTING.
WE CONTINUE TO GET BURDENED BY, I SAY BURDEN AND THERE'S BENEFITS TOO OF OUR TOURISTS.
WE CONTINUE TO GET MORE TOURISTS.
OF COURSE, THEY BRING IN SALES TAX AND SHORT-TERM RENTALS BY PROPERTY TAXES.
THERE IS A BENEFIT TO THAT, BUT THERE'S ALSO COSTS ASSOCIATED WITH THAT, WHETHER IT'S JUST THE BURDEN OF LIVING NEXT DOOR, SHORT-TERM RENTAL OR HAVING TOURISTS ALL AROUND THE ISLAND OR WHATEVER.
WE NEED TO START CHARGING FOR THAT.
SOMEHOW CAPITALIZE ON THAT TO BRING IN MORE REVENUE.
WE DON'T KEEP INCREASING THE FEES ON OUR CITIZENS THREE-AND-A-HALF PERCENT EVERY YEAR UNTIL ETERNITY.
I MEAN, THE OTHER PEOPLE, OTHER CITIZENS, CITIES DO THIS AND THEY HAVE THE BENEFIT OF HAVING MORE LAND, AND MORE DEVELOPMENT AND THAT THREE-AND-A-HALF PERCENT TAX, DOESN'T AFFECT THEM LIKE IT DOES US BECAUSE WE DON'T HAVE THAT.
BUT YOU GOT TO DO IT SOMEHOW, YOU'VE GOT TO FIND A WAY TO DO IT.
>> YOU ALL BROUGHT UP SOME GOOD POINTS.
>> HAVING A VOLUNTEER OF FIRE DEPARTMENT THAT.
>> EXACTLY, MOST CITIES ADD MORE TAXES DON'T GET COMPLETELY CONSUMED.
ACTUALLY, OVER CONSUMED BY THE PUBLIC SAFETY COMMUNITIES.
>> YEAH, ABSOLUTELY. MOST [OVERLAPPING] CITIES DON'T HAVE A POPULATION THAT INCREASES BY TWO TIMES OR MORE EVERY DAY OR ON THE WEEKENDS.
>> WE HEARD YOU ALL LOUD AND CLEAR AND, THE FOCUS IS THAT WE INITIALLY STARTED, THE TRACK WHERE WE STARTED ON WAS TRYING TO FIGURE OUT HOW TO REDUCE THE COST OF ALL THE ANCILLARY.
>> STAY AWAY FROM THE TAX RATE.
LOOK AT THE ANCILLARY COSTS OF CITIZEN.
AMOUNT OF THEIR WATER BILL, THEIR WATER COSTS FOR THEIR SANITATION.
IF YOU CAN START CHIPPING AWAY ON ALL OF THOSE THINGS,
[04:05:02]
THE NET IMPACT OF THE RESIDENCE CAN BE LOWER.THAT'S THE DIRECTION THAT WE HEARD.
WE THINK THAT'S A REAL EFFECTIVE WAY TO DO IT.
IT'S A NOVEL APPROACH, IT'S A DIFFERENT APPROACH THAN WHAT WE'VE DONE BEFORE.
BUT BY LOOKING AT FEES THAT REDUCE THE COST TO OUR RESIDENTS.
THAT'S THAT'S DIRECT TO THEIR CHECKBOOK.
THEIR WATER BILL WILL BE LOWER, THEIR SANITATION BILL WILL BE LOWER.
EVERYTHING THEY DO WITH THE CITY IF THEY'RE PART OF THE CITY OF TAXPAYER HOMESTEAD, HOWEVER, WE CARVE IT OUT, IT'S GOING TO BE A DIRECT BENEFIT TO THEM.
>> THERE'S NO DOUBT. DAVID BEEN HOLDING GO AHEAD, DAVID.
>> YOU SEE WE CAN'T CONTINUE TO GO UP THREE-AND-A-HALF PERCENT ON TAXES, NOT THE TAX RATE BUT THE TAXES EVERY YEAR?
>> YOU SAID THAT SEVERAL TIMES.
>> I KNOW, YOU KNOW WHY? BECAUSE THE COST IS GOING UP FASTER THAN THAT.
WE'RE LOOKING AT AN EIGHT-AND-A-HALF PERCENT CPI COMING UP NEXT MONTH AND SO TO SIT THERE AND SAY, WE CAN'T GO UP. YES, WE CAN.
IF COSTS KEEP GOING UP, IF PEOPLE WANT SERVICES, THIS IS WHAT IT COSTS.
EVERY PERSON AT THIS TABLE STOOD UP AT THE CHAMBER OF COMMERCE BREAKFAST AND SAID, YES, I'M VOTING FOR THE SCHOOL BOND MEASURE.
ADDED 11 CENTS TO YOUR TAX RATE FOR SCHOOLS AND YOUR QUIBBLING OVER A MILLION DOLLARS TO THE CITY.
>> $315 MILLION FOR THE SCHOOLS AND YOUR QUIBBLING OVER A MILLION DOLLARS IN THE CITY.
>> I'M NOT SURE WHY YOU ARE SO DEFENSIVE ABOUT THIS? IT'S NOT LIKE IT CAN'T BE DONE.
>> YES, BUT IT TAKES CUTS SOMEPLACE. YOU HAVE TO CUT.
YOU DON'T, [OVERLAPPING] YOU DO WHAT, YOU SAY, LET'S FIND A COUPLE OF MILLION DOLLARS IN SHORT-TERM RENTALS.
THAT'S WHAT DON IS. I'M NOT DEFENSIVE, MAYBE I AM DEFENSIVE ABOUT HIM, I APOLOGIZE.
[LAUGHTER]. BUT THIS IS A RIDICULOUS, RECURRING CONVERSATION TO SAY WE HAVE TO GIVE PEOPLE RELIEF BECAUSE THEY WANT THE SAME LEVEL OF SERVICES, BUT THEY DON'T WANT TO PAY FOR IT.
I MEAN, THIS IS A RECURRING, REPUBLICAN CONVERSATION AT THE PULSE EVERY MONTH.
TAKE A LOOK AT THIS LAST CAMPAIGN, IS LIKE LET'S COMPLETELY DO AWAY WITH SALES TAX, OR PROPERTY TAX LET'S REFORM PROPERTY TAX, LET'S STOP CHARGING PEOPLE PROPERTY TAX, AND DO WHAT FOR A POLICE DEPARTMENT? CHARGE PEOPLE COMING OVER THE CAUSEWAY? IT COST MONEY TO RUN THE CITY.
IT COSTS MONEY TO HAVE THESE SERVICES.
WHEN YOU'RE PUBLIC SAFETY EATS 120% OF YOUR [INAUDIBLE] TAX.
IT'S JUST NOT REALISTIC TO TAKE A LOOK AT THAT AND SAY, WELL, LET'S FIND A COUPLE OF EXTRA PLACES.
LET'S CHARGE PEOPLE EXTRA FOR PARKING AT THE PORT OR THERE'S NOT MILLIONS OF DOLLARS ON THE TABLE JOHN.
>> THERE REALLY IS, [OVERLAPPING] THERE ARE MILLIONS OF DOLLARS ON THE TABLE.
>> THIS LIST THAT YOU PUT TOGETHER, I THINK IS A GREAT START.
I THINK THERE ARE MILLIONS OF DOLLARS HERE NOT HERE. [BACKGROUND] I'D BE LESS DEFENSIVE ABOUT IT IF WE HADN'T ROLLED OVER AND PLAYED DEAD WITH THE PORT THREE YEARS AGO [OVERLAPPING].
>> I'M NOT TAKING THAT OFF THE TABLE.
HOW MANY PEOPLE GET ON A SHIP EACH YEAR?
>> YOU'VE GOT A MILLION OF THEM NOW, IT'S GOING TO BE TWO MILLION BY THE TIME.
>> THEY'LL BE CLOSE TO A MILLION.
>> YOU PUT A DOLLAR ON EACH ONE OF THOSE [OVERLAPPING]
>> CARLO HAS GOT A CONTRACT DOWN THERE AND ALL OF THAT.
>> WHO'S IN CHARGE OF PARKING? THE PORT OF GALVESTON, WHO'S AN ENTITY OF THE CITY.
>> AND PRIVATE ENTITIES, YEAH.
>> THANK YOU [LAUGHTER] [OVERLAPPING].
>> YOU PUT A DOLLAR [INAUDIBLE] YOU RAISE THAT MONEY.
DON'T TELL ME IT CAN'T BE DONE.
>> BECAUSE THERE'S EVEN OTHER WAYS OF DOING THAT. [OVERLAPPING]
>> THERE'S A TON OF OPPORTUNITY OUT THERE.
>> THERE WAS SOMETHING WE STARTED WORKING ON AND IT KIND OF DIED.
BUT ON SHORT-TERM RENTALS, WHICH ARE A BUSINESS, AND IT'S JUST LIKE YOUR BUSINESS PAYS TAX ON WHAT'S IN YOUR OFFICE, OTHER PLACES CHARGE TAX ON WHAT'S IN THE PROPERTY, BECAUSE WHAT IS THAT? REAL? I ALWAYS MIX THEM UP.
>> PERSONAL PROPERTY, AND THE COUNTY SAID, "YEAH IT WOULD BE SOMETHING WE COULD DO.
THERE ARE THERE ARE NUMBERS OF WAYS.
>> I THINK TOMMY WATSON AND THE APPRAISAL DISTRICT CONSIDERED THAT AND WHAT HE TOLD ME WAS THEY DIDN'T FEEL LIKE THAT ANY WAY, RELIABLY, TO ESTIMATE THE VALUE OF NICER FURNISHINGS.
>> WELL, THERE'S OTHER COUNTIES THAT DO IT IN THE COUNTRY SO THERE MUST BE A WAY.[OVERLAPPING].
>> MAY I ASK ONE PHILOSOPHICAL QUESTION TO THE CLERK?
>> NO, YOU WEREN'T FOR [INAUDIBLE] CLEARLY NOT. [INAUDIBLE] [LAUGHTER].
[04:10:02]
NO, WE'VE GOT A PHILOSOPHICAL QUESTION.
>> WHY DO YOU WANT TO REDUCE THE TAX RATE ON CITIZEN FROM THE CITY.
WHY ARE YOU WILLING TO DO A GROSS INCREASE FROM SCHOOL ON SCHOOL TAXES, WHICH IS NOT ENORMOUSLY MORE THAN YOU PAID TO THE CITY?
>> I DID NOT INCREASE THE SCHOOL TAX.
THE PEOPLE OF GALVESTON INCREASED SCHOOL TAX.
>> NO, I VOTED FOR IT. BUT IT WASN'T A COUNCIL DECISION.
>> IT WASN'T A SCHOOL BOARD DECISION.
IT WAS THE PEOPLE OF GALVESTON AND WENT OUT FOR A VOTE AND THEY DECIDED THAT THAT WAS IMPORTANT TO THEM.
THAT'S NOT WHAT WE'RE DOING HERE.
THIS IS WHAT I'M HAVING A DIFFICULT TIME WITH : IF WE JUST STAY WITH THE THREE-AND-A-HALF PERCENT, WE HAVE A DEFICIT THAT WE'RE GOING TO HAVE TO RAISE MORE MONEY JUST TO COVER THAT, AND THAT'S GOING TO COME FROM SHORT-TERM RENTALS, IT'S GOING TO COME FROM SOME OF THE THINGS THAT DAN'S ALREADY LISTED.
THEN WE REDUCE THAT PROPERTY RATE MORE AND WHAT CONCERNS ME LOOKING AT THE FUTURE IS WE CONTINUE TO LOWER THAT BENCHMARK EVERY YEAR.
>> IT'S ALREADY THE LOWEST IT'S EVER BEEN.
WE'RE GOING TO KNOW MORE AND MORE.
WE CAN SAY TO THE CITIZENS, WE ARE GOING TO LOWER THEIR TAXES FIVE-AND-A-HALF CENTS.
>> YOU'RE NOT LOWERING THEM [INAUDIBLE] [OVERLAPPING].
>> WELL, NOT THEIR TAXES, BUT THEIR TAX RATE.
>> YOU'RE NOT LOWERING THEIR TAXES.
>> BUT THAT'S THE ONLY THING WE HAVE CONTROL OF IS THE TAX RATE.
>> WE'RE GOING TO LOWER THEIR TAX RATE FIVE-AND-A-HALF CENTS.
>> BUT YOU MAKE IT SOUND LIKE YOU'RE DOING THEM A FAVOR.
>> THEY'RE GOING TO, COME OUT OF POCKET.
THEY'RE GOING TO RUN A CHECK FOR MORE MONEY.
>> I UNDERSTAND THAT, BUT WE'VE GOT A BUSINESS TO RUN WITH THIS CITY, AND WE'RE GOING TO HAVE TO MAKE UP INCREASED REVENUE SOURCES JUST TO COVER THE THREE-AND-A-HALF PERCENT.
THEN WE GOT THE BENCHMARK CONTINUES TO LOWER EVERY YEAR.
IT'S GOING TO GET WORSE AND WORSE.
>> I UNDERSTAND THAT. BUT TO DAVID'S POINT HERE, IF YOU DON'T LOOK AT OTHER OPTIONS, YOU HAVE A FIDUCIARY RESPONSIBILITY TO GO OUT THERE AND SAY, "HEY, ARE WE LEAVING MONEY ON THE TABLE OUT THERE?
>> IF WE ARE, THEN OUR TAXPAYERS ARE PICKING UP THAT BURDEN.
SO THAT'S WHY I'M SAYING WE HAVE TO GO OUT THERE, FIND MORE REVENUE IF IT'S OUT THERE.
>> WE JUST HAVE TO MAKE SURE THAT WE MATCH UP RECURRING REVENUES TO RECURRING EXPENSES.
>> WE HAVE TO HAVE GOOD STABILITY.
WE TEND TO BENCHMARK OUR PUBLIC SAFETY OFF [INAUDIBLE] BECAUSE WE HAVE TO HAVE PUBLIC SAFETY, AND [INAUDIBLE] IS SOMETHING THAT'S SOMEWHAT GUARANTEED.
OUR SALES TAX AROUND HERE IS NOT GUARANTEED.
IF IT RAINS ON THE 4TH OF JULY, WE'RE GOING TO SEE A DIP IN OUR SALES TAX.
>> IT'S PRETTY DAMN CONSISTENT.
>> YES AND NO. WELL, FIRST OF ALL, I THINK PART OF YOUR SALES TAX INCREASE IS GOING TO CUT JUST BECAUSE OF INFLATION.
SALES TAX IS A PERCENTAGE OF WHAT YOU SPEND.
I THINK YOU'RE SEEING A LITTLE BIT OF A BUBBLE RIGHT NOW, ALL THE MODELS INDICATE A BUBBLE, AND IT'S IMPORTANT THAT WE LEVERAGE THAT BUBBLE TO DO AS MUCH ONE-TIME PROJECTS AS WE CAN, WHICH HELPS YOU LONG TERM.
BECAUSE THE MORE INFRASTRUCTURE AND EQUIPMENT WE CAN BUY DURING THIS BUBBLE TIME, IF WE CAN GET IT, THE BETTER IT'S GOING TO BE FOR US LONG TERM.
YOU DON'T HAVE TO WORRY ABOUT FINANCING A LADDER TRUCK THREE YEARS FROM NOW IF WE HAVE THE MONEY TO DO IT NOW.
YOU DON'T HAVE TO WORRY ABOUT DOING CERTAIN CAPITAL IMPROVEMENT PROJECTS THAT WE NEED TO GET DONE DOWN THE ROAD.
YOU DON'T HAVE TO WORRY ABOUT PUTTING THOSE IN A BOND OR SOMETHING LATER.
BUT COMMITTING SALES TAX DOLLARS BEYOND A CORE AMOUNT GETS VERY RISKY FOR THE CITY OF GALVESTON.
THAT'S WHY I'VE ALWAYS RECOMMENDED CARRYING THE RESERVES THAT WE CARRY AT THE CITY OF GALVESTON BECAUSE REMEMBER, WE TALK A LOT ABOUT TOURISM IN GALVESTON.
LET ME BE KELLY DE SCHAUN'S FRIEND FOR A MINUTE.
[LAUGHTER] BUT A BIG CHUNK OF YOUR SALES TAX IS TOURIST SALES TAX.
>> SO GOES TOURISM, SO GOES YOUR SALES TAX.
THERE'S AN OFFSET TO SALES TAX GUYS.
YOU'RE GOING TO GET A TAX BENEFIT FROM INCREASED SALES TAX, WHETHER IT'S A BUBBLE OR NOT BECAUSE OF THE SALES TAX OFFSET.
OUR TAXPAYERS REAP SAVINGS FROM THAT TO A CERTAIN DEGREE, BUT WE HAVE TO REALLY MARRY UP OUR RECURRING REVENUE, OUR GUARANTEED RECURRING REVENUE TO OUR MANDATED PURPOSES.
I TOTALLY AGREE ABOUT INCREASING THE FEES.
I AM A THOUSAND PERCENT ON BOARD WITH THIS.
I'M ALSO A THOUSAND PERCENT ON BOARD FOR SHIFTING EXPENSE BURDEN, ONE, THROUGH USER FEES.
IF YOU USE IT, YOU PAY FOR IT; AND THE SECOND THING IS TO SHIFT AS MUCH EXPENSE AS WE CAN OFF OF HOMESTEADED PROPERTY OWNERS.
IF YOU LOOK AT IT AND LOOK AT THE NUMBERS MIKE SHOWED YOU EARLIER,
[04:15:01]
THOSE HOMESTEADED PROPERTY OWNERS, THOSE NUMBERS, THEY PRETTY MUCH MARRY UP TO WHO VOTED IN YOUR LAST ELECTION.THOSE NUMBERS, I CAN'T GUARANTEE THEY'RE THE SAME PEOPLE.
BUT YOU START LOOKING AT THE PEOPLE OVER HERE AND THE NUMBER OF HOUSEHOLDS AND THE NUMBER OF PEOPLE WHO VOTED, WE ALWAYS BEMOAN THE LOW VOTER TURNOUT.
THAT'S WHY OUR VOTER TURNOUT IN GALVESTON IS ALWAYS GOING TO BE LOWER THAN ANYBODY ELSE BECAUSE WE HAVE SO MANY HOUSEHOLDS HERE, THEY'RE NOT POPULATED IN A 100 PERCENT OF THE TIME.
IT'S IMPORTANT THAT WE REALLY RECOGNIZE THAT.
I AM 100 PERCENT ON BOARD WITH THIS AND IF I THOUGHT I COULD DO IT ON A RECURRING BASIS, WE WOULD DO IT, BUT I'M JUST NOT CONVINCED THAT WE CAN PULL THAT OFF.
ESPECIALLY GIVEN THERE'S A HUGE LAG ON MOST OF THESE THINGS.
>> THESE THINGS IF WE DO OUR JOB IN 2023 WITH THESE AND REALLY GO AHEAD AND AND YOU GUYS STAND BEHIND US TO DO THESE THINGS, 2024 I THINK WE CAN PROBABLY PULL OFF EXACTLY WHAT YOU WANT TO DO.
I'M CONCERNED ABOUT DOING IT FOR 2023 WITH AN IFFY SALES TAX PROJECTION AND THE FACT THAT MOST OF THESE WE COULDN'T KICK THESE FEES IN UNTIL MID OR LATER NEXT YEAR.
WE WOULDN'T GET THE FULL BENEFIT OF THE FEES.
>> EXCEPT FOR SHORT-TERM RENTALS, AND THAT'S THE AREA WHEN YOU LOOK AT NOW. WHAT IS IT? THE LAST ONE WAS LIKE 51 PERCENT OF THE HOT TAX, COMES FROM SHORT-TERM RENTALS VERSUS HOTELS.
WHAT COULD WE GAIN FROM THAT? THAT IS SOMETHING THAT WE COULD DO FASTER. [OVERLAPPING]
>> THERE IS TWO THINGS YOU COULD DO. THERE'S DIRECT FEES, WHICH I THINK DON HAS SOME CONCERNS ABOUT THAT WE'D HAVE TO WORK THROUGH.
BUT THE OTHER THING YOU DO, MARIA IS YOU RE-SHIFT YOUR TAX BURDEN.
BECAUSE WHEN YOU START FAVORING YOUR HOMESTEADED PROPERTIES, THOSE AREN'T SHORT-TERM RENTALS.
I GUARANTEE YOU MOST OF YOUR SHORT-TERM RENTALS ARE HOMESTEADED PROPERTIES.
YOU COULD START SHIFTING SOME MORE OF THAT BURDEN TO THE SHORT-TERM RENTALS THAT WAY.
BUT IN FAVORING YOUR RESIDENTS THAT LIVE HERE FULL TIME.
BUT THE FEES ARE DEFINITELY SOMETHING WE NEED TO LOOK AT, YOU KNOW YOU AND I HAVE TALKED ABOUT THAT.
DO WE WANT TO BE KNOWN AS THE WALMART OF THE GULF COAST WHEN IT COMES TO SHORT-TERM RENTALS? WE'RE THE CHEAPEST POINT OF ENTRY OF ANYWHERE AROUND HERE TO GET INTO SHORT-TERM RENTAL MARKET.
BUT HOW WE CAN USE THOSE FEES AND WHAT WE CAN USE THEM FOR IS A QUESTION THAT WE HAVE TO WORK THROUGH THE LEGAL DEPARTMENT.
>> WELL, BUT ALSO HOW CAN WE LEVERAGE HOT TAX SUCH AS TO COVER POLICE COURSE.
WE'RE IN AREAS LIKE THE SEAWALL.
>> BUT THAT'S A LAW, THAT WON'T HAPPEN OVERNIGHT.
THAT'S GOING TO HAVE TO COME FROM THE LEGISLATURE.
>> NO, THERE IS THINGS THAT COULD BE DONE LEGALLY UNDER THE CURRENT ADMINISTRATION. [OVERLAPPING]
>> JUST AN ADMINISTRATIVE FEE.
>> NEXT MEETING COULD YOU COME BACK WITH THIS AND PUT SOME NUMBERS TO HOW MUCH YOU THINK THESE THINGS COULD EVENTUALLY BRING IN? IT'S A BIT SUBJECTIVE.
>> [OVERLAPPING] [INAUDIBLE] IS ONE THE LOWEST IN THE STATE, SO WE'RE NOT OVERHEAD.
LET'S TALK ABOUT THAT HOT TAX BECAUSE THE HOT TAX IS COMING IN.
WE'RE USING THE OUTSIDE OF THE ARTS AND HISTORIC PRESERVATION BOARD THAT IS COMING IN FROM TRICKLED DOWN.
WE'RE USING EVERY BIT OF THAT MONEY THAT'S COMING IN.
NOW IF YOU TAKE A MORE ADMINISTRATIVE FEE OUT THERE, YOU'RE GOING TO HAVE TO CUT THE AMOUNT YOU GIVE THE TROPICS.
>> DO YOU HAVE ANY GROUP, CRAIG?
>> HE ALWAYS GROWS. IT'S NOT GROWING.
DON'T DEPEND ON THIS TREND LINE, BUT IT ALWAYS.
>> WE'RE ACTUALLY LOOKING BEYOND THAT THE CITY COLLECTS DO TRICKLE-DOWN CONSUMER.
I MEAN, THERE'S HOUSE MAYBE IT COULD BE ALLOCATED TO THIS DIRECTION VERSUS WHERE IT'S BEING SOMETHING.
>> WELL YOU'RE GOING TO TAKE IT BUT MY POINT IS, YOU WILL HAVE TO TAKE IT AWAY FROM SOMEWHERE.
YOU'RE GOING TO TAKE IT AWAY FROM ARTS AND HISTORIC PRESERVATION ON HOW MUCH THEY WOULD GET BECAUSE WE'RE GOING TO TAKE IT IN ADMINISTRATION.
>> THERE'S A COUPLE OF HALF THESE THINGS.
>> I AGREE. I JUST WANT TO MAKE THE POINT OF ALL THIS EXCESS HOT JUST SITTING OUT THERE AS BEING UTILIZED AT THIS POINT.
>> NO, WE DON'T. I THINK WE EFFICIENTLY USED THE HOT THAT'S ALLOCATED THE CITY THROUGH TRICKLE-DOWN OR WE SPENT A LIMITED, WE'RE CONFINED BY THE LEGAL USES OF HOT.
THERE'S HOT THAT'S GENERATED AND USED OTHER PLACES FOR THINGS THAT THEY COULD HAVE YOU USED BETTER.
BUT IF WE DO THAT, WHAT I'M SAYING IS THAT YOU'LL HAVE TO TAKE IT AWAY FROM SOMEWHERE ELSE.
WE JUST DON'T HAVE THIS EXPANDING HOT THE ART BOARD LOWERED THEIR PENNY, DIDN'T THEY DAN?
>> I SAW THEIR PACKET MATERIAL AND LOWERING THE AMOUNT OF THEIR OPINION PROJECTED FOR THIS COMPANY HERE.
>> BUT AGAIN, I THINK THE COUNCIL [OVERLAPPING].
[04:20:01]
>> ONE OF THE THINGS THAT WE'VE TALKED ABOUT DURING THE BRIEFINGS WAS WHAT GUIDANCE DOES COUNCIL GIVE THE BARK BORNE WITH HOW THEY WANTED TO UTILIZE THE CITY ASSETS.
THERE'S A BIG AMOUNT OF REVENUE THAT CAN BE GENERATED OFF CITY ASSETS AT RIGHT NOW IS GOING TO THE PARK BOARD AND IT'S NOT COMING UP SOON.
>> IT'S A UNIQUE SITUATION FOR US BECAUSE WE'RE ONE OF THE ONLY CITIES THAT DELEGATES ALL OF OUR HOT REVENUE, ABSOLUTE TRICKLED DOWN TO A THIRD PARTY AGENCY.
IT'S HARD TO COMPARE. IT'S HARD FOR US TO GO OUT AND REACH COMPARATIVES.
IT HELPED YOU MAKE A BEACH, BUILT A CITY POOL WITH THERE.
THERE'S A WHOLE LOT OF DIFFERENT THINGS THAT YOU CAN DO, AND THERE'S A LOT OF CITIES GETTING HOT THAT DIDN'T GET THEM BEFORE BECAUSE OF SHORT-TERM RENTALS, AND IT'S REALLY INTERESTING TO SEE WHAT THEY'RE USING IT FOR.
>> COUNCIL MAC WANTED TO GET INTO WATER AND SEWER [OVERLAPPING].
>> BRANDON AND CRAIGLER ARE HERE TO TALK TO YOU ABOUT THE WATER AND SEWER BUDGET THAT WE'RE DOING.
>> I'M GOING TO TRY AND MAKE THIS QUICK.
LONG STORY SHORT IS THAT ON 2020, WE HAD ABOUT $30 MILLION WORTH OF DEBT SERVICE.
A LITTLE HELP FROM THE GULF COAST WATER AUTHORITY PAYING OFF SOME BONDS AND WE HAVE A LOT OF CAPITAL IN THE YER HERE AND IN THE NEXT COUPLE OF YEARS WITH A LOT OF SHOVEL-READY PROJECTS THAT WE NEED TO FUND.
WE THINK IT'S IMPERATIVE THAT WE GO OUT AND START ISSUING SOME DEBT AS SOON AS WE CAN BECAUSE OF THE RATE STRUCTURE WITH INTEREST RATES JUST GOING UP EVERY TIME WE TURN AROUND AND WE'RE REALLY NOT SEEING ANY RELIEF IN THE NEAR FUTURE, AND SO I HAVE A LIST HERE OF THE NEXT PROJECTS THAT WE NEED FUNDING.
LONG STORY SHORT IS IT'S ABOUT A $66 MILLION NEED OVER THE NEXT COUPLE OF YEARS WITH A LOT OF THESE ARE DRIVEN BY OUR CAPITAL PROGRAM THAT ARE SHOVEL-READY.
THE FIRST ONE HERE ON YOUR LIST IS TEXT DOT AND GULF COAST WATER AUTHORITY.
IT'S SOUTHLAND TRANSMISSION CONFLICT, WE HAVE TO RELOCATE, AND GULF COAST WATER AUTHORITY IS SAYING THEY NEED ABOUT SIX MILLION DOLLARS BY LATE NOVEMBER TO HAVE IT COMPLETED AND MOVE OUT OF THE WAY FOR TECH STOCK TO COME IN BY DECEMBER OF 2024.
WE'VE GOT PIRATES BEACH, WASTEWATER TREATMENT PLANT.
>> WHY DO WE HAVE TO PAY FOR HIGHWAY 3146?
>> IS OUR WATER ON SITTING UP PUTTING THE BRIDGE?
>> WE HAVE PIRATES BEACH IN WASTEWATER TREATMENT PLANT AND LIFT STATION 35 THAT FEEDS IT THERE.
IT'S CURRENTLY AT THE END OF LIFE.
WE HAVE ABOUT $8.5 MILLION WORTH OF RPA MONEY THAT WAS DEDICATED TO THAT PROJECT.
BUT IN THIS WHOLE ENVIRONMENT, THE BIDS CAME IN ABOUT DOUBLE WHAT THE CONSULTANTS HAD EXPECTED, AND SO THAT ONE GOT PUT ON THE BACKBURNER BECAUSE THERE'S NO CASH TO GO AHEAD AND LET THE PROJECT THERE.
BUT IT'S SHOVEL-READY, READY TO GO TO BID AGAIN, IT'S JUST, THERE'S NO CASH LEFT.
>> IT'S A CRITICAL. THAT'S TCEQ ISSUE.
>> I MEAN RIGHT NOW IT'S BEING HELD ON BY FLEX SEAL.
>> GOOD STUFF, MAN. IT'S GOOD STUFF.
DON'T KNOCK THE [INAUDIBLE], IT'S GOOD STUFF.
>> THEN WE'VE GOT THE 10 MILE ROAD ELEVATE STORAGE TANK FOR ANOTHER 14 AND A HALF MILLION DOLLARS.
>> THAT'S ANOTHER TCQ MANDATE, SHOVEL-READY PROJECT WHEREIN HER MANDATE IN ORDER REPLACE THAT.
THE TERRAMAR DESIGN, WE HAVE TO START DESIGNING ON THE TERRAMAR WASTEWATER TREATMENT PLANT.
>> SO MUCH MONEY ON THE WEST END.
>> COULD GO ON ALL DAY WITH THAT.
>> IF WE COME UP WITH CREATIVE INFRASTRUCTURE WE'D HAVE MORE HOUSES AND WE GET LOWER THAN THAT TAX RATE.
>> THAT'S WHAT WE'RE TRYING TO DO. [LAUGHTER]
>> BUT I THOUGHT TERRAMAR WE ALSO HAD THAT [INAUDIBLE].
WE'RE DOING THE I&I PROJECTS OUT AND TERRAMAR TRYING TO FREE UP CAPACITY.
WE'VE DONE SOME BUT WE'RE STILL OUT.
>> WE HAVE GOTTEN SOME INITIAL GOOD RESULTS FOR THE LAST MONTH ON THAT I&I PROJECT.
KUDOS TO [INAUDIBLE] AND HIS TEAM OUT THERE REALLY HUMPING IT.
BUT WE HAVEN'T HAD MUCH RAIN EITHER, SO I THINK WE'LL GET A BETTER IDEA OF WHAT OUR I&I LEVELS LOOK LIKE ONCE WE START GETTING A LOT MORE RAIN.
THERE'S ABOUT SIX LIFTS STATIONS THAT ARE SHOVEL-READY, THAT NEED TO BE HARD AND UPDATED FOR ABOUT FOUR AND A HALF MILLION DOLLARS, AND THOSE STRETCH ACROSS THE ISLAND.
THERE'S THE BELT PRESS AT THE MAIN WASTEWATER TREATMENT PLANT WHICH DEWATERS OUR SOLIDS THERE AND SO WE DON'T HAVE TO HAUL A BUNCH OF WET SLUDGE OUT TO THE LANDFILL.
MAKES OUR OPERATION [OVERLAPPING].
>> ISN'T THIS THE ONE WE JUST BUILT?
>> WE DID NOT DO THIS PART OF THE PLANT.
[04:25:01]
>> YEAH, THIS ONE GOT PULLED OUT FROM THE BID.
>> THIS IS PART OF THE ORIGINAL PART OF THE PLANT THAT WAS DONE BY THE GLM.
>> RIGHT. IT'S AN OLDER BUILDING THAT SITS OFF TO THE SIDE THERE.
WE NEED A CHLORINATOR ON THE UTMB ELEVATED STORAGE TANK.
WHERE IT AUTOMATICALLY PUTS IN AND WE DON'T HAVE TO GO OUT MANUALLY CHLORINATE THE SYSTEM.
RIGHT NOW, THAT'S KIND OF WHAT WE DO OR JUST FEEDS OFF THE RESIDUALS.
WE'VE GOT STEWART ROAD SANITARY SEWER MAIN BETWEEN 8 AND 10 MILE ROAD THAT WAS JUST RECENTLY DISCOVERED IN ITS DEPLORABLE CONDITION.
IT'S A LARGE I&I PROBLEM FOR THE AIRPORT PLANT THAT WE NEED TO GET SOLVED AS SOON AS WE CAN BEFORE WE'RE IN THE SAME BOAT AS WE ARE WITH TERRAMAR THERE.
THEN THERE'S A MATCH FOR THE CAUSEWAY WATER LINE.
THIS IS ON THE NEW CAUSEWAY AND WE'VE GOT A SHOVEL-READY PROJECT THERE WE'VE BEEN CHASING GRANTS FOR IT.
IT'LL GIVE US REDUNDANCY, SO ALL OF OUR EGGS JUST AREN'T IN ONE BASKET SITTING ON THAT OLD RAILROAD BRIDGE THERE.
>> WHICH WE'VE GOT THAT OVER HERE TOO.
>> YEAH, WE'VE GOT THAT, AND WE SAW A MARKUP.
WEBER HAD AN EARMARK, AND ONE OF THE APPROPRIATIONS BILL LAST WEEK THAT SALLY SENT US THAT THERE'S AN EARMARK FOR ABOUT $10 MILLION FOR THAT PROJECT, AND ALSO 59TH STREET STORAGE TANK, WHICH IS NEXT, THERE WAS AN EARMARK FOR $10 MILLION IN THERE.
THAT'S NOT TO SAY IT WILL GET FUNDED IN THERE, BUT WE'VE GOT A PLACEHOLDER FOR IT AND SALLY AND TESSA [OVERLAPPING].
>> WE'RE FURTHER THAN WE HAVE BEEN.
>> BUT WE NEED A MATCH STILL ON THESE THINGS.
WE'VE GOT TO PUT SOME MATCH IN THERE TO CHASE THOSE BECAUSE ALL OF THESE ARE REQUIRING IT.
ALSO RECENTLY IT'S COME TO LIGHT THAT WE'RE GOING TO HAVE TO INVEST SOME MONEY IN THE WHOLE RAILROAD BRIDGE.
THERE'S AN AGREEMENT BETWEEN BNSF, THE COUNTY, GULF COAST WATER AUTHORITY, CENTERPOINT, WHERE WE'RE GOING TO SHARE IN THE COST OF [OVERLAPPING].
>> WE SHARE IN THE COST OF THE MAINTENANCE OF THAT BRIDGE.
>> IS THAT THE CAUSEWAY BRIDGE?
>> YEAH, THE OLD CAUSEWAY BRIDGE.
THAT GOES BACK TO WHEN THEY REDID THE CENTER SPAN.
[OVERLAPPING] ALL THE GROUPS AGREED TO DO THAT BACK.
>> BECAUSE THE WATERLINE IS SITS THERE, SO WE'VE GOT A LITTLE SEED FUNDING IN THERE UNTIL WE GET A BETTER IDEA OF WHAT THOSE COSTS ARE GOING TO LOOK LIKE AFTER THEY DO THEIR CONDITION ASSESSMENT AND BEGIN DESIGN, SO ON AND SO FORTH FOR IT.
NEXT TO WATER AND SEWER MASTER PLAN.
THOSE NEED TO BE MODERNIZED, UPDATED WITH NEWER SOFTWARE AND ALSO SOME TRAINING ABILITY FOR OUR STAFF TO BE ABLE TO DO IT IN-HOUSE.
WE'VE GOT A VERY GOOD ENGINEERING TEAM NOW, ROB HADN'T ENOUGH ENTICE THEM TO BE ABLE TO DO SOME MODELING IN-HOUSE AND EVERYTHING ELSE.
WE'VE JUST GOT TO GIVE THEM THE TOOLS THAT THEY NEED RIGHT NOW.
THESE MODELS SIT WITH CONSULTANTS.
THEY'VE BEEN THROUGH SEVERAL FIRMS THAT KIND OF HOLD YOU HOSTAGE AND CHARGE YOU FOR EVERY LITTLE CALCULATION YOU NEED.
WE REALLY WANT TO BRING THAT IN-HOUSE AND GET THOSE UPDATED WITH SOME MORE RECENT TECHNOLOGY AS WELL.
THEN JUST TO ROUND IT OUT, WE'VE GOT SANITARY SEWER REHAB REPLACEMENT.
THOSE ARE THE LARGER PROJECTS THAT POP UP ON AN EMERGENCY BASIS THAT OUR STAFF CAN'T NECESSARILY TACKLE IN-HOUSE.
THEY MIGHT BE A LITTLE TOO LARGE FOR THEM TO HANDLE.
OUR VALVE AND HYDRANT REPLACEMENTS, WHICH [OVERLAPPING].
>> HAVE BEEN VERY SUCCESSFUL UP TO THIS POINT.
>> ALL RIGHT, BRANDON, HOW IF THIS IS APPROVED, WHERE DOES THE FUNDING COME FROM?
>> IT COMES FROM THE CURRENT WATER RATE AND RIGHT NOW WE'RE PROJECTING THAT THIS WOULD NOT IMPACT YOUR WATER RATE TO ISSUE VCOS AS OF RIGHT THIS MINUTE.
>> BOMBSHELL, BUT WE'RE NOT GOING TO HAVE TO INCREASE WATER RATES?
>> NOT AT THIS POINT BASED ON THE CAPITAL PLAN.
BUT THE SAME COSTS MIKE WAS JUST TALKING TO YOU ABOUT ON THE OPERATION SIDE, GASOLINE, LABOR EXPENSES, BENEFITS, I MEAN, EVERYTHING ELSE GOING THROUGH THE ROOF.
I MEAN, WE'RE WILLING TO INCREASE RATES BASED ON OUR OPERATION EXPENSES.
>> BUT WE'RE WORKING ON A COUPLE OF THINGS ALONG THAT FRONT, CRAIG.
WE'RE WORKING ON A MODEL AND MIKE'S WORKING ON THIS TO WHERE THOSE COSTS ARE NOT NECESSARILY BORNE BY HOMESTEADER PROPERTY OWNERS.
THAT WAS SOMETHING WE TALKED ABOUT IN THE BUDGET MEETINGS WITH YOU GUYS.
THE OTHER THING THAT WE'RE LOOKING AT DOING IS WE'RE GOING TO TRY TO DO SOME RATE WORK OURSELVES THIS TIME RATHER THAN PAYING A CONSULTANT TO SEE EXACTLY WHETHER WE'RE APPORTIONING THINGS OUT APPROPRIATELY AND HOW EVERYTHING'S GOING.
WE'RE GOING TO WORK ON IT OURSELVES.
I WOULD SUSPECT THOUGH, THAT WE'RE GOING TO BE TALKING TO YOU SOMETIME IN JANUARY, MORE THAN LIKELY ABOUT A RATE ADJUSTMENT IN THE WATER FUND OR WATER/SEWER.
JUST BECAUSE OF OUR INCREASED EXPENSES RIGHT NOW, WE DON'T SEE IT.
WE THINK WE COULD ISSUE THIS DEBT AND COVER IT WITH WHAT WE'VE GOT.
BASICALLY, IT'S MONEY WE'RE USING TO PAY THIS DEBT THAT RETIRED.
NOW WE'RE GOING TO USE IT TO DO THIS.
[04:30:02]
>> WE'RE OUT OF CAPITAL FUNDS.
I MEAN, WE'VE DONE REALLY THE LAST SIZABLE PROJECT, WE COULDN'T DO ANY OF THOSE BIG PROJECTS WE'VE GOT.
>> YEAH, EXACTLY. YOU'RE THINKING WE'LL LOOK AT INCREASE IN WATER RIGHTS AROUND JANUARY?
>> YEAH, BUT I DON'T WANT EVERYBODY TO RUN AND PANIC BECAUSE WE'RE GOING TO TRY TO DO IT IN A WAY THAT HAS VERY LITTLE BURDEN IF ANY ON RESIDENTIAL OR HOMESTEADER PROPERTY OWNERS.
>> HOW DO YOU JUSTIFY THAT IF THE WATERAID, EVERYBODY HAS WATER, BUT THERE'S STILL LARGE AREAS THAT DON'T HAVE SEWER.
>> BUT YOU'LL BE UPDATING THEIR WATERAID TO FIX THIS SEWER.
>> SEWER RATE'S SEPARATE AND APART.
>> THAT'S A COMMON MISCONCEPTION THAT PEOPLE HAVE.
THEY SAY, WELL, I'VE BEEN PAYING ALL THESE YEARS AND I STILL DON'T HAVE SEWER, NOW YOU HAVE [INAUDIBLE].
>> I UNDERSTAND THAT IF YOU'RE GOING TO INCREASE THE WATER RATE TO DO THESE PROJECTS.
>> THE SEWER IS SEPARATE WITH WATER.
>> THAT'S WHY WE'RE GOING TO DO THE ANALYSIS ON IT, AND WATER RATES WILL BE INCREASED TO COVER WATER PROJECTS.
THEN SEWER RATE HAS TO CHANGE, IT'LL BE DONE THAT.
IT'S A COMBINED FUND, BUT WE KEEP THEM VERY SEPARATE PER UNIT.
>> THE BOND SALE IS NOT DRIVING THE INCREASE IN THE RATES, IT'S ALL THE OTHER [INAUDIBLE].
>> OPERATIONAL COST, ABSOLUTELY.
>> BUT WE'VE HEARD COUNCIL LOUD AND CLEAR AND THAT'S WHY WE WANT TO SIT BACK AND STUDY IT, AND THEN MAKE SURE WE APPORTION THE COST ACCORDING TO COUNCIL'S GOALS TO TRY TO MINIMIZE THE EFFECTS ON OUR HOMESTEAD PROPERTY [OVERLAPPING].
>> THIS 2.8 MILLION DOLLARS FOR WATER MASTER PLAN, THE SEWER MASTER PLAN, THAT SEEMS PRICEY.
>> WHAT ARE WE TALKING ABOUT DOING HERE?
>> THEY ARE GOING TO PROCURE NEW SOFTWARE AND THEY'RE GOING TO CREATE A WHOLE MODEL, REALLY A CAPACITY TYPE MODEL FOR YOUR SANITARY SEWER SYSTEM AND A WATER DISTRIBUTION MODEL FOR YOUR WATER SYSTEM.
FOR THE DRAINAGE MASTER PLAN, WE'RE DOING THE SAME THING WITH THE H&H.
THAT ONE WEIGHED IN TWO MILLION DOLLARS ITSELF.
>> WE'VE GOT TO HAVE A GOOD PLAN IN PLACE BECAUSE THE QUESTION WE KEEP GETTING AROUND HERE IS, WELL, DO YOU HAVE CAPACITY FOR THIS? DO YOU HAVE CAPACITY FOR THAT? WE'D LIKE TO PUT A SUBDIVISION OUT WEST OF TARAMORE, BUT DO YOU HAVE CAPACITY HERE? DO YOU HAVE CAPACITY THERE? PART OF WHAT THIS DOES IS IT LOOKS AT AVAILABLE LAND THAT'S GOING TO BE DEVELOPED, IT LOOKS AT AVAILABLE PROJECTS, FUTURE PROJECTS, PLAN, FUTURE PROJECTS, IT COULD BE PLANNED, ASSESSES CAPACITY AND TELLS US WHAT THE CAPITAL NEEDS ARE GOING TO BE GONE FOR.
>> ONE OF THE THINGS WE NEED BEFORE WE EVEN GET TO THE POINT OF RAISING RATES ON THIS, I CALL IT JUSTIFICATION.
I NEED TO BE ABLE TO EXPLAIN TO PEOPLE THAT WATER COST, WHAT THEY'RE PAYING, THAT SEWER COST, WHAT THEY'RE PAYING, AND THE SANITATION COST WHAT THEY'RE PAYING.
I HAVE PEOPLE TELLING ME THAT THEY THINK THE CITY IS MAKING BANK ON SANITATION RATES.
I'M LIKE, YOU GOT TO BE KIDDING.
>> WELL, I THINK THAT'S PART OF OUR RATE ANALYSIS ON THE STUDY THAT WE EMBARK ON.
>> BUT THAT'S FOR YOU TO UNDERSTAND IT OR TO EXPLAIN TO US.
I NEED TO BE ABLE TO EXPLAIN IT TO THIS PUBLIC.
>> WE'LL DEFINITELY APPROACH THAT.
>> NOT TO BE A BURDEN, BUT CAN THEY READ FINANCIALS?
>> [OVERLAPPING] [INAUDIBLE] REPORTS WITH THE RESULTS IN THEM.
>> I WISH WE WERE MAKING MONEY.
>> BUT OUR GOAL HERE REALLY IS, LIKE WHAT BRIAN SAID, IS TO BRING YOU GUYS A RESOLUTION TO START THE WHOLE ISSUANCE FOR THE CAPITAL PROJECTS AT OUR MEETING NEXT MONTH SO THAT WE CAN GET THE BALL ROLLING AND MEET OUR LEGAL REQUIREMENTS.
>> THE OTHER THING TOO IS WE HAVE BASICALLY MOVED TO A SEVEN DAY A WEEK MODEL NOW.
WHEN YOU TALK ABOUT WHY I WANT TO SHIFT THIS MODEL TO WHERE THERE'S LESS OF A BURDEN ON THE RESIDENCE, PART OF THE REASON WE'RE SHIFTING TO A SEVEN DAY A WEEK MODEL IS THAT WE'RE GETTING MORE AND MORE AND MORE CALLS WHEN PEOPLE ARRIVE HERE THURSDAY NIGHT, FRIDAY AND THEY'RE CHECKING IN AND THEY'RE LIKE, HEY [OVERLAPPING] I DON'T HAVE WATER, OR THERE'S SEWER PROBLEM.
>> ABSOLUTELY. WE'RE RUNNING 24/7 SEVEN DAYS A WEEK.
>> I'M NOT SAYING YOU'RE HIDING.
>> BUT HOW MUCH WATER ARE WE STILL LOSING?
>> OUR WATER LOSE HAS GONE WAY, WAY DOWN.
>> WAY DOWN. BUT YET I MUST [INAUDIBLE].
>> I WANT TO SAY IT'S ABOUT 15, 17 PERCENT.
>> WE WERE AT 42 PERCENT IN 2017 WHEN WE KICKED OFF OUR WHOLE NON-REVENUE WATER PROGRAM.
WE'VE DROPPED THAT DOWN TO 17 PERCENT, EVEN THOUGH THAT'S NOT AN ACCURATE WAY [OVERLAPPING]..
>> I ALSO WANT YOU TO REMEMBER TOO, PEOPLE THINK THEY CALL IT WHEN THE LEAK WE SHOULD
[04:35:01]
COME RIGHT AWAY BECAUSE WATER IS BEING WASTED.BUT THERE'S A BREAKEVEN POINT THERE, AND WE EVALUATE THE LEAK.
WE'LL SEND ONE GUY OUT TO CHECK IT.
YES, IT'S COSTING US SOME MONEY TO LOSE SOME WATER, BUT HOW MUCH WOULD IT COST US IF I HAVE TO ACTIVATE AND BRING IN A WHOLE ANOTHER CREW TO DO IT AT THAT POINT.
WE STAGE THEM OUT, WE RANK THEM OUT BY PRIORITY, AND WE ATTACK THEM THAT WAY.
NOW, SOMETIMES THE LEAKS WILL WORSEN DURING THAT PERIOD, AND WE NOTICE THAT WHEN THEY GET JUMPED UP AHEAD AND ALIGN.
BUT WE TRY TO BALANCE THAT OUT TO WHAT'S THE BEST VALUE FOR THE RATE PAYER.
>> IT'S HARD TO IMAGINE SOME OF THE LEAKS THAT I KNOW I HEAR ABOUT HAVE BEEN LEAKING FOR OVER A YEAR.
IT WOULDN'T BE A BENEFIT TO FIX THAT SOONER THAN A YEAR.
>> OUR WATER LOSS PERCENTAGE IS ONE OF THE LOWEST IN THE STATE.
>> OURS HAS GONE DOWN SIGNIFICANTLY.
>> WHEN YOU LOOK AT CITIES THAT WE GOT THERE, THEY GO ON [INAUDIBLE].
>> I'M PROJECTING IT TO GO DOWN EVEN MORE WITH THE AMI PROJECT THAT TRINO IS ABOUT EMBARK ON OVER THERE.
YOU PRICE THAT WATER DIFFERENT.
A LEAKING PIPE IN THE GROUND IS NOT WORTH AS MUCH TO GO OUT AND CHASE AS A WATER METER BECAUSE YOU'RE PRICING THIS AT THE RETAIL RATE THAT'S GOING THROUGH ANY METER, IF YOU HAVE A SLOW METER, THAT'S NOT GETTING PRICED, YOU'RE LOSING DOLLARS WHILE OVER HERE YOU'RE LOSING PENNIES.
THAT'S BEEN PART OF OUR WHOLE STRATEGY, WAS TO ADDRESS THE HIGHER YIELDING BECAUSE WE ONLY HAVE SO MANY RESOURCES, SO WE ADDRESS THOSE.
>> BUT I WILL SAY OVERALL, WE HAVE ONE OF THE LOWEST LOSS RATES NOW OF ANYBODY IN THE AREA.
>> IT'S A LOT EASIER FOR US BECAUSE WE GOT ONE-POINT ENTRY AND WE CAN VERIFY AND TRACK.
THE AMI SYSTEM I THINK WILL TIDY UP WHAT WE'RE MISSING.
>> WE'RE GOING TO PLAN TO BRING YOU A C0 SALE AGENDA ITEM, JULY.
BECAUSE WE NEED TO GET THIS PROCESS.
WE CAN'T LOG BACK INTO WHERE WE WERE BEFORE WHERE THERE WAS ABSOLUTELY NO INFRASTRUCTURE INVESTMENT, THIS STUFF IS OLD.
EVEN THE NEW STUFF IS GETTING OLD THAT WE REPLACED IN THE EIGHTIES.
A LOT OF WHAT'S DRIVING THIS TOO, AS I POINTED OUT TO YOU EARLIER, IS THAT WE'RE RUNNING ONE OF THE OLDEST SYSTEMS IN TEXAS AND T-C-E-Q, WHILE THEY WORK WITH US, AND THEY'RE VERY GOOD WITH US ON OWN CERTAIN THINGS.
THEY'RE DRAWING THE LINE IN THE SAND ON A COUPLE OF THESE THINGS.
>> WELL, WE APPLIED FOR IN EVERY CHANCE WE GET AND WE'RE USING A LOT OF THIS IS, AS WE POINTED OUT, IS LEVERAGING OTHER MONIES THAT WE CAN USE.
>> VERY GOOD. SPEAKING OF GETTING OUT, I THINK THIS MEETING IS.
>> YOU ARE GOOD AND JUST FOR THE PUBLIC SAY, THANK YOU.
THE COUNCIL TODAY AND WE ARE DEFERRING ITEMS FOR E, FOR F, FOR G FOR H HAS BEEN ORDERED BY COUNCIL.
>> [NOISE] WE ARE ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.