[00:00:04] >> [BACKGROUND] GOOD MORNING, EVERYONE. [1. DECLARATION OF A QUORUM AND CALL MEETING TO ORDER] IT IS 9:00 AM. I AM OFFICIALLY CALLING THE WORKSHOP FOR THE CITY COUNCIL OF GALVESTON TO ORDER FOR THURSDAY, JUNE 27. I WANT TO WELCOME COUNCIL BACK. THIS IS LIKE GROUNDHOG DAY. [OVERLAPPING] SEEMS LIKE WE WERE JUST HERE. THANK YOU STAFF FOR BEING HERE AND FOR THOSE IN THE AUDIENCE, THANK YOU. FOR THOSE THAT MAY BE WATCHING IN THE COMMUNITY, WE ARE VERY GLAD TO HAVE YOU WITH US THIS MORNING. WE HAVE A BUSY SCHEDULE, BUSY WORKS OF AGENDA. WE DO HAVE A QUORUM, BUT LET'S HAVE A ROLL CALL, PLEASE. >> MAYOR BROWN. >> PRESENT. >> COUNCILMEMBER LEWIS. >> SHE'S HERE. >> COUNCILMEMBER FINKLEA. >> PRESENT. >> COUNCILMEMBER BROWN. >> PRESENT. >> COUNCILMEMBER PORRETTO. >> HERE. >> COUNCILMEMBER RAWLINS. >> HE'S HERE. >> COUNCILMEMBER ROBB. >> PRESENT. >> VERY GOOD. WE DO HAVE ALL OF OUR COUNCIL MEMBERS PRESENT. >> JUST SAY PRESENT. >> [OVERLAPPING] PRESENT. >> EVERYBODY IS HERE THIS MORNING. LET'S MOVE TO OUR ITEM CLARIFICATION ITEM 3A, PLEASE, JANELLE. [3.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 (1 Hour)] >> 3A 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. >> AS YOU KNOW, COUNCIL, WE'LL GO AROUND THE TABLE, SEE IF ANYONE HAS QUESTIONS. AS WE'VE DISCUSSED IN THE PAST, THIS IS FOR CLARIFICATION, NOT DISCUSSION, THE PROS AND CONS OF THIS ITEM, BUT TO JUST GET A LITTLE CLEAR IDEA IF YOU HAVE QUESTIONS TO HELP YOU UNDERSTAND THE ISSUES A LITTLE BIT BETTER. I'M GOING TO MOVE. IS IT TOO EARLY TO START, BEAU? DO YOU HAVE QUESTIONS ON THE AGENDA, SIR? >> NO. >> DAVID FINKLEA, DISTRICT 2. >> SURE. DO WE HAVE A REPRESENTATIVE FROM THE PORT? >> YES, SIR, WE DO. WE HAVE TONY BROWN HERE. YES, SIR. >> I'M GOOD. THANK YOU. >> ROGER APOLOGIZES [INAUDIBLE] >> TONY, IF YOU COULD HAVE A SEAT SO THEY COULD HEAR YOU ON THE CAMERA. >> TONY, HAVE A SEAT. >> WELL, THANK YOU. >> TONY, COULD YOU IDENTIFY YOURSELF FOR THE CAMERA, PLEASE? >> CERTAINLY, TONY BROWN, PORT ATTORNEY FOR THE PORT OF GALVESTON, LAWYER ACROSS THE STREET. >> THANK YOU. GO RIGHT AHEAD, DAVID. >> SURE. THANK YOU. TONY, HAVE Y'ALL RECEIVED A FINAL GMP, GUARANTEED MAXIMUM PRICE FOR TERMINAL 16 YET? >> WE HAVE NOT RECEIVED THE FINAL ONE, THAT'S COMING SHORTLY. WE'VE GOTTEN THIS TWO OF THREE. >> HOW DO WE MOVE FORWARD WITH APPROVING A BOND ISSUANCE, NOT KNOWING WHAT THE GUARANTEED MAXIMUM PRICE ON THE PROJECT IS? >> STAFF IS COMFORTABLE THAT WE HAVE WITHIN A RANGE WHERE THEY BELIEVE THAT OPERATING FUNDS WILL COVER ANYTHING. THE STAFF AND THE TRUSTEES ARE FIRM, THEY DON'T WANT TO GO ANYTHING OVER 160 MILLION ON THIS ISSUE. >> SURE. >> DAVID, EXCUSE ME. JUST TO ANSWER YOUR QUESTION TOO. WHEN IT COMES UP TONIGHT, I WAS GOING TO MAKE A MOTION THAT IT WOULD INCLUDE NOT TO EXCEED 160 MILLION. >> I SEE. >> I THOUGHT THAT WAS ALREADY IN THERE. >> IT'S NOT. WE LEFT IT OPEN, BUT IT SHOULD NOT EXCEED 160 MILLION. >> THAT IS MY BIGGEST ONE. I MIGHT COME BACK AROUND, BUT THAT'S MY ONLY QUESTION ON THE AGENDA ITEMS. THANK YOU, MAYOR. >> YOU'RE WELCOME. COUNCILMAN BROWN. >> 11C. THANKS, TONY. >> THANKS, TONY. >> THANK YOU, TONY. >> [INAUDIBLE] I JUST WANTED TO REAL QUICK QUESTION. IS THERE SOMETHING THAT'S DIFFERENT IN THIS ONE THAT HELPS PREVENT DEBRIS GETTING IN THE BEACH SAND, LIKE WHAT HAPPENED TO THE LAST TIME, I GUESS? >> KYLE. >> KYLE CLARK, COASTAL RESOURCES MANAGER. YES. THIS IS FROM A DIFFERENT SAND SORT. THIS IS ACTUALLY COMING FROM THE MAINTENANCE TRENCHING OF THE HOUSTON SHIP CHANNEL. THE MATERIAL THAT WAS TAKEN TO DELLANERA THAT THE PARK BOARD DID LAST YEAR WAS FROM TEXAS INTERNATIONAL TERMINAL, BUT THEY HAVEN'T DECIDED IF IT CAME FROM THERE OF THE DUMP TRUCK. IT'S A DIFFERENT PROCESS OF GETTING THE SAND ON THE BEACH. IT WILL BE TESTED. THERE ARE SPECS IN THE CONTRACT THAT ANY DEBRIS FOUND OUT THERE WILL BE ON THE CONTRACTORS DIME TO CLEAN IT UP. >> THIS WILL BE PUMPED SO IT'LL BE A MORE REFINED PROCESS? >> YES, SIR. >> GOT TO GO THROUGH THE BIG PIPE? >> YES, IT IS DOES. >> BOB, WE HAD ANOTHER QUESTION. >> WELL, JUST TO CLARIFY. THERE WAS ALSO ANOTHER DUNE THAT WAS DONE AFTER [00:05:01] THAT PROJECT IN FRONT OF THE TIARA PROPERTY, AND ALL THAT SAND WAS SIFTED AND THEY DIDN'T FIND THE SAME DEBRIS IN IT. JUST SO YOU'RE AWARE. >> THAT'S GREAT. THANK YOU. >> ANOTHER QUESTION ON 11H ABOUT THE ELECTRIC SUPPLY TO THAT. JUST TO BE CLEAR, THAT'S THAT'S THE LOCATION OF THE TEMPORARY? >> FOR THE TEMPORARY. YES, SIR. >> WHEN THEY DO BUILD A NEW FACILITY, THERE'LL BE A DIFFERENT LOCATION NOT TO REMOVE THAT. >> WE'RE WORKING ON THAT RIGHT NOW. WE'RE WORKING THROUGH THAT WITH THE PARK BOARD. >> ONE OTHER 11I. I WAS JUST CURIOUS, IF YOU JUST GIVE ME A BRIEF UNDERSTANDING OF THE SCOPE OF THAT TWO MILLION DOLLARS AND IF THERE'S OTHER MONEY INPUT WITH THAT. >> I'M SORRY. WHAT'S THE QUESTION? >> TESA, COULD YOU IDENTIFY YOURSELF, PLEASE? >> TESA WROBLESKI, DIRECTOR OF DISASTER GRANTS AND RECOVERY. >> THANK YOU. I WAS JUST CURIOUS ABOUT THE APPROVAL OF THE GRANT APPLICATION TO THE US DEPARTMENT OF TRANSPORTATION FOR STRENGTHENING MOBILITY AND REVOLUTIONARY TRANSPORTATION. JUST CURIOUS, IT'S JUST A REAL QUICK BRIEF SCOPE OF WORK THAT THAT COVERS THAT TWO MILLION DOLLARS, AND WE'RE GOING TO PUT OTHER MONEY WITH IT TOO? >> INITIALLY, WE'RE JUST DOING A STAGE 1, WHICH IS UP TO TWO MILLION DOLLARS, NO CITY MATCH, AND THAT'S TO START THE INFRASTRUCTURE FOR THE TRAFFIC SYSTEM. >> FOR THE FOR THE ISLAND WIDE TRAFFIC? >> BRANDON COOK, ASSISTANT CITY MANAGER. ACTUALLY, THIS IS ON STAGE 1, WE'RE LOOKING AT A PILOT PROGRAM FROM ABOUT 7TH STREET TO 59TH STREET, AND WE'RE GOING TO INCORPORATE A SKATER SYSTEM THAT USES AI, ARTIFICIAL INTELLIGENCE AT THE INTERSECTIONS THERE TO MONITOR TRAFFIC COUNTS, PEDESTRIAN COUNTS, BICYCLE COUNTS, AND WHAT HAVE YOU. IT'LL PRETTY MUCH GATHER A LOT OF DATA TO ALLOW OUR TRAFFIC TEAM TO BE ABLE TO MAKE DECISIONS ON TIMING ISSUES AND WHAT HAVE YOU. THAT'S THE PILOT THAT WE'RE LOOKING AT, AND THIS WILL ESSENTIALLY PUT IN THE BACKBONE FOR THE WHOLE TRAFFIC SKATER SYSTEM. THE REASON WHY WE CHOSE, NUMBER ONE, BECAUSE OF ALL THE PEDESTRIAN AND ALTERNATIVE FORMS OF TRANSPORTATION THAT WE HAVE OUT THERE. BUT ALSO BECAUSE IN THAT LITTLE STRETCH, WE'RE NOT SUBJECT TO TXDOT JURISDICTION THERE, WHEREAS SOME OF THE OTHER HIGH TRAFFIC CORRIDORS LIKE BROADWAY, HARBORSIDE, AND WHAT HAVE YOU, WE WOULD BE SUBJECT TO THOSE. THAT'S THE REASON WHY WE CHOSE THAT AS A PILOT, LESS REGULATORY HURDLES THAT WE HAVE TO JUMP THROUGH. >> IF IT'S SUCCESSFUL, YOU WOULD DO IT ISLAND WIDE, I GUESS? >> IF WE GET THE MONEY, YEAH, ABSOLUTELY. THAT'S A PLAN FOR STAGE 2. THEN WE GO AFTER STAGE 2 ON THAT SAME GRANT THERE. IF THIS ONE, WE RECEIVE A FAVORABLE TYPE OF RECOMMENDATION, THEN WE WOULD GO THERE. >> ALSO, I THINK IT TEASES UP FOR OTHER FEDERAL MONEY TO DO THE PROJECTS IF WE'RE SUCCESSFUL WITH THIS PHASE. >> THAT'S REMARKABLE. YOU'LL BE ABLE TO GET DATA ON PEDESTRIANS AND BICYCLES, AS WELL AS CARS? >> YES. WE HAVEN'T SCOPED THE EXACT PARTICULAR UNITS THAT WE'RE LOOKING AT, BUT WE HAVE A GENERAL IDEA AND IT'LL BE A DESIGN TYPE. >> I'D BE INTERESTED IN HEARING ABOUT THAT. >> WE HAVE A QUESTION ON THAT, BOB. COUNCILMAN PORRETTO. >> THIS IS SOMETHING WE TALKED ABOUT AT THE LAST WORKSHOP, CORRECT? >> RIGHT. >> MOVING FORWARD WITH THAT. BEYOND THE GRANT STAGE 1 FOR TWO MILLION DOLLARS, IS THERE ANY MATCH, LET'S SAY THREE, LIKE IF WE DO THREE MILLION, IS THERE A MATCH THAT WE WOULD HAVE TO COME UP WITH OR IS THIS JUST STAGE 1? WHAT'S THE MATCH? >> ZERO. >> NO BEYOND TWO MILLION. >> THE MAXIMUM ON STAGE 1 IS TWO MILLION DOLLARS. WHEN WE GO TO STAGE 2, THEN THERE WOULD BE A COST SHARE BASED ON THE CONSTRUCTION OR THE AMOUNT OF THE PROJECT IN STAGE 2. >> IS THAT JUST BASED ON PERCENTAGE OF WHAT THE AMOUNT IS? >> IT'S BASED ON THE FEDERAL REQUIRED PERCENTAGE ON STAGE 2. >> DO THEY HAVE THAT SET YET? >> NO. IT VARIES BY ISSUANCE. >> IT VARIES. >> DEPENDS ON THE PROGRAM. THEIR PROGRAM NEXT YEAR, MAY BE A 10, MAY BE A 20, MAYBE A 50. >> THEY HAVEN'T SET THE GUIDELINES FOR YOU? >> CORRECT. >> IT VARIES. >> HOW MANY STAGES, IF YOU KNOW? >> THERE'S ONLY TWO STAGES. THIS IS THE LAST ROUND FOR STAGE 1, SO WE'RE GETTING IN THE LAST TIME THAT WE CAN DO IT ON STAGE 1. THEN YOU HAVE TO HAVE A STAGE 1 PROJECT TO GET THE STAGE 2. >> ONE MORE QUICK ONE ON THE 11O I THINK FIREWALL UPDATE. WILL THIS DO ANYTHING TO HELP PREVENT SCAMS THAT WE EXPERIENCED A WHILE BACK. >> I WOULD DEFER TO HOPE ON THAT. >> SPEAKING OF SCAMS, [INAUDIBLE] [LAUGHTER]. >> GOOD MORNING. I'M SORRY. I DIDN'T CATCH THE QUESTION. >> THIS WAS THAT YOU IDENTIFY YOURSELF. >> MY NAME IS HOPE DEAN. I AM THE CIO FOR THE CITY. >> HE'S EASY ASKING ABOUT THE SONIC WALLS. >> WHAT WAS YOUR QUESTION? >> WHAT I WAS JUST WONDERING IF THAT FIREWALL UPDATE WILL DO ANYTHING TO HELP PREVENT THE SCAM THAT WE HAD RECENTLY, THE BILLING SCAM? [00:10:01] INTERESTING QUESTION. NO, BECAUSE THAT WAS A VALID EMAIL. THAT WAS SOMEBODY'S EMAIL ACCOUNT WAS COMPROMISED, AND SO THE EMAIL WAS VALID, COMING FROM A VALID DOMAIN. IT'S JUST THE PERSON CONTROLLING IT WAS NOT THE PERSON WHO YOU THOUGHT IT WAS. I DON'T HAVE ANY CONTROL OVER THEIR DOMAIN, ONLY MINE. >> THIS WOULD PROTECT US FROM DOING THE SAME THING TO SOMEBODY ELSE. >> BRIAN. [LAUGHTER] >> LET THE RECORD REFLECT THAT'S NOT WHAT HE'S GOING TO DO. >> THAT'S ALL I HAVE, THANKS. >> THANKS, BOB. SHARON. >> WELL, HE JUST ASKED MY QUESTION. I WAS GOING TO ASK ABOUT THE CRITICAL UPDATES. I HAVE ONE FOR THE PARKS. I HAVE SEEN BARBARA SANDERSON SOMEWHERE AND URBAN GRANT. >> BARBARA. >>GOOD MORNING. >> GOOD MORNING. >> GOOD MORNING. >> TO DOS FIRST. >> BARBARA, IF YOU COULD IDENTIFY YOURSELF. >> SURE. BARBARA SANDERSON, EXECUTIVE DIRECTOR PARKS, RECREATION COMMUNITY OUTREACH. >> ON THIS GRANT, IT SAYS NON URBAN OUTDOOR. I HAVE A SIMPLE QUESTION. ARE THERE GRANTS OUT THERE THAT WOULD PROVIDE OUTDOOR SHIELDS PARK AND URBAN? >> THAT'S A GREAT POSSIBILITY. YES, MA'AM. >> WELL, KUDOS TO YOU ALL ON THIS. >> THIS IS THE FIRST TIME WE'RE WORKING WITH VISION GALVESTON. I'D LIKE TO THANK CHRISTINA BRYANT AND HER TEAM. THEY'RE GOING TO ASSIST US IN THE WRITING PART OF IT. WE'RE GOING TO DO A COLLABORATIVE EFFORT, BUT THE CITY NEEDS TO APPLY FOR IT. >> NOTHING MAJOR, JUST KUDOS AND A QUICK QUESTION ON URBAN. >> KUDOS TO VISION GALVESTON ALSO. >> YES. >> VERY GOOD. >> BARBARA, I'M GOING TO NEED YOU. >> ANYTHING ELSE, COUNCIL? COUNCILMAN PORRETTO. >> 11F. >> 11F. >> HAS THIS ITEM BEEN PULLED FROM THE AGENDA? >> IT HAS NOT. THIS ITEM WAS A REQUEST THAT CAME THROUGH THE PROPER CHANNELS ON THIS. BARBARA OR BRIAN MAY WANT TO EXPAND ON THIS. >> IT MEETS ALL THE GUIDELINES OF OUR NAMING POLICY. >> I WOULD LIKE TO DEFER IT. >> THAT'S ENTIRELY ELSE PREROGATIVE. >> I WAS ON THE UNDERSTANDING THAT IT WAS REMOVED, AND WE WERE GOING TO DEFER IT. >> I THINK THAT'S PRUDENT BECAUSE I THINK WE NEED TO REVIEW THE POLICY ASSOCIATED WITH NAMING THESE PARKS. >> GO AHEAD. >> I DON'T KNOW. WE CAN LOOK AT THE POLICY, BUT WITH ALL THE THINGS THAT HAVE COME UP IN REFERENCE TO MR. JUSTI AS WELL AS MR. JANEK, I WOULD LIKE TO DEFER IT. BECAUSE THEY BOTH WERE SO COMMITTED AND WE CAN LOOK AT DOING A NAMING ON BOTH. >> I THINK THE ISSUE WAS WAS THAT AND THIS IS FROM A LOT OF PEOPLE IN MY NEIGHBORHOOD AS WELL. THERE WAS LETTER SENT WHEN MR. JUSTI PASSED IN 2022. WHATEVER HAPPENED, I'M NOT SURE. BUT I WAS UNDER THE UNDERSTANDING THAT THIS WAS GOING TO BE REMOVED, AND IT'S NOT. I WOULD DEFER. THIS IS NOT A TRY TO MAKE SOMETHING POLITICAL WHERE IT SHOULDN'T BE BECAUSE BOTH OF THESE MEN ARE GREAT. THEY ARE OF MY GRANDFATHER'S ERA, THE LATE '20S. THEY'RE GOOD MEN. THEY GAVE A LOT TO GALVESTON. THEY WERE VERY INSTRUMENTAL IN THE SPORTS AND BASEBALL IN PARTICULAR. I THINK WE SHOULD LOOK AT THIS AND MAYBE DEFER IT AT COUNCIL. >> LET ME GIVE SOME INPUT ON THIS. THIS ITEM, THERE WAS DISCUSSION ABOUT PULLING THIS ITEM. MR. JANEK'S REQUEST WHO CAME FROM MR. TRAMONTE. IT WENT THROUGH THE PROPER CHANNELS. THIS IS ON OUR AGENDA TODAY BECAUSE IT MEETS ALL THE CRITERIA THAT WE HAVE ESTABLISHED AT THIS POINT TO NAME STRUCTURES OR BALL PARKS AFTER AN INDIVIDUAL. IT WAS DECIDED AND I PARTICIPATED IN THAT THAT SINCE IT MET THE ALL OF THE CRITERIA, THIS WAS A LEGITIMATE APPLICATION. [00:15:03] IT WAS NOT MY CALL TO PULL THIS OFF THE AGENDA. THIS IS THE CALL OF COUNCIL. THAT'S WHY IT IS ON COUNCIL'S AGENDA. >> BUT I WANT EVERYBODY TO UNDERSTAND THAT THIS IS A LEGITIMATE APPLICATION THAT WENT THROUGH THE VETTING PROCESS HERE AT THE CITY. THIS IS NOT SOMETHING THAT WAS RANDOMLY PUT ON THE AGENDA, SO WE WOULD NEED TO DISCUSS THAT. WE NEED TO ALSO, IF WE WANT TO DEFER THAT, PERSONALLY, I WOULD LIKE TO DETERMINE WHAT THE REASONS ARE THAT WE WOULD WANT TO DEFER THAT. I'VE TALKED TO MR. JUSTI ON THIS, THERE HAS BEEN INPUT. BROWN, YOU'VE HAD A NUMBER OF CONVERSATIONS ON THIS. >> WE HAVE OTHER NAMING OPPORTUNITIES THAT WERE OFFERED TO THE JUSTI FAMILY AS WELL. >> THE ONLY REASON JUSTI TALKED TO ME WAS TO TALK TO HIS MOM, BECAUSE THERE WAS LETTERS THAT WERE SENT IN TO NAME THIS COMPLEX IN 2022. >> WE CAN'T FIND LETTER. >> WE CAN'T FIND A LETTER. >> WE'VE RECEIVED AN UNSIGNED PICTURE OF A LETTER, BUT WE CANNOT LOCATE ONE ANYWHERE IN OUR RECORDS, E MAIL OR OTHERWISE. [OVERLAPPING] >> I STAYED YESTERDAY AFTER WORK AND TORE UP MY OFFICE TO MAKE SURE THERE WAS NOTHING IN MY OFFICE, OR IN MY ASSISTANT'S OFFICE. >> I UNDERSTAND. I DON'T WANT TO ARGUE THE PROS AND CONS. WE NEED TO DO THIS AT THE COUNCIL MEETING TONIGHT, BUT I JUST WANT EVERYBODY TO UNDERSTAND THE SITUATION THAT, THIS IS ON OUR AGENDA BECAUSE THIS, IT'S JUST LIKE SOMETHING THAT WENT THROUGH PLANNING COMMISSION, WENT THROUGH THE PROPER VETTING OF ALL THE COMMITTEES. I THINK THIS WENT TO PARKS AND RECS COMMITTEE, AND VETTED. >> SORRY. IT FOLLOWED ALL THE GUIDELINES THAT ARE LISTED. EVERY LETTER OF SUPPORT FOR MR. JANEK CAME THROUGH E MAIL, WHICH IS TIME STAMPED ON MY COMPUTER, AND THAT'S WHY WE PROCEEDED. >> CORRECT. VERY GOOD. ANY OTHER QUESTIONS ON THIS? >> BEFORE YOU CAN STOP, I HAVE A QUESTION. I. >> YOU SHOULD GO RIGHT AHEAD. ON JUNE 25TH, 2018, A LETTER WAS SENT TO BARBARA FROM MANUEL MARINO REQUESTING. >> I WAS NOT IN THE PARKS DEPARTMENT THEN. I WAS HERE AT CITY HALL, AND DID NOT RECEIVE THAT LETTER. >> WELL, THEN AGAIN, ON JUNE 27TH, 2022, DID YOU RECEIVE IT THEN OR NO? I DON'T REMEMBER? >> THERE'S NOT A RECORD IN MY E MAIL EITHER. >> WELL, THEN MAYBE WE SHOULD REVISIT POLICY BECAUSE, LIKE I SAID, EDDIE JANE, YOU COULDN'T ASK FOR A BIGGER ICON IN GALVESTON, BUT MR. JUSTI IS RIGHT THERE WITH HIM. >> IT'S FUNNY BECAUSE, YOU CAN TALK TO 10 DIFFERENT PEOPLE AND FIVE SAY, JANEK AND THEN FIVE SAY JUSTI AND, IT REALLY ISN'T. >> I HATE TO SEE TWO EXCELLENT FAMILIES PITIED IT IT AGAINST EACH OTHER OVER SOMETHING LIKE THIS. TO ME, THAT IS INDICATIVE OF A BAD POLICY AT THE CITY OF HOW WE ALLOW THIS. >> IF WE WANT TO DEFER THIS TO LOOK AT OUR POLICY, I THINK THAT MAKES SENSE. >> WE HAVE A VERY GOOD POLICY ON STREETS. >> NOW, JUST FOR YOUR INFORMATION, IF WE FOLLOWED THE STREET POLICY, WE COULD NOT NAME ANY STRUCTURES ON ANYBODY UNLESS THEY HAD BEEN DECEASED MORE THAN FIVE YEARS. THAT'S SOMETHING TO TAKE IN CONSIDERATION, AND IF WE FELT THAT THAT'S MORE APPROPRIATE, WE COULD MOVE IN THAT DIRECTION. ANY OTHER CLARIFICATION? YES, SHERIFF. >> I HAVE A QUESTION. WHEN DID THE APPLICATION PROCESS START? HOW LONG WAS THE PROCESS FOR NAMING IT? >> FOR MR. JANEK? >> MR. JANEK, IS IN YOUR PACKET WHEN WE RECEIVED THE FIRST LETTER FROM MR. TRAMONTE, WHICH WAS MARCH THE 20TH OF 2024. THERE WAS A PUBLIC HEARING, THE LETTER WAS READ IN THE PARKS AND RECREATION ADVISORY BOARD MEETING. THERE WAS A PUBLIC NOTICE PUT OUT IN THE NEWSPAPER ON FACEBOOK, AND SEVERAL LETTERS WERE RECEIVED FROM FORMER PLAYERS, AND A FORMER COUNTY COMMISSIONER, COMMISSIONER BAR TO RENAME IT. I DO KNOW BOTH GENTLEMEN, JUST FOR INFORMATION. THE STREET RIGHT IN FRONT OF [INAUDIBLE] BERNARD DAVISVILLE, IS NAMED FRANK JUSTI DRIVE. AND MR. JANEK DOES HAVE A BUILDING IN THE WEST COUNTY THAT'S NAMED AFTER HIM. BOTH GENTLEMEN DO HAVE SOMETHING NAMED AFTER THEM. [00:20:02] THEY'RE BOTH ICONS. I KNOW I'VE KNOWN THEM BOTH MY ENTIRE LIFE. >> MY QUESTION IS MAINLY THE PROCESS. SINCE IT WENT THROUGH THE PROCESS, I'M JUST ASKING THE REST OF COUNCIL, WHY CAN'T IT STAY AND THEN CHANGE PROCESS? WHY WOULD WE LOOK AT REMOVING THAT NAME TO CHANGE THE PROCESS? WHY DO THEY COINCIDE? [OVERLAPPING] >> THAT'S A VERY GOOD POINT, THOUGH, SHARON, BECAUSE IT'S JUST LIKE IF SOMETHING YOU FILED AT PLANNING COMMISSION AND SOMEBODY FILED TO GET A BEACH SECTION CERTIFICATE FOR US TO TURN IT DOWN AND THEN TO CHANGE THE RULES, SO THAT THEY COULDN'T FILE. YES, MA'AM. >> BUT WE HAVE DEFERRED ITEMS BEFORE, EVEN THOUGH PEOPLE HAVE. >> WE HAVE. >> I KNOW I CALLED BARBARA, BECAUSE I WAS GETTING SO MANY CALLS BOTH SIDES. YOUR THOUGHTS WERE THEY ARE BOTH DESERVING. I THINK THEY BOTH COACHED OVER 60 YEARS. [NOISE] TO WHAT ALEX SAID, IT'S TRUE. IF YOU TALKED TO FIVE PEOPLE, BECAUSE I STARTED CALLING ALL MY BASEBALL FRIENDS AND ASKING THEM. BUT, THEY'RE ALSO WOULDN'T BE ANYTHING WRONG, ESPECIALLY IF WE LOOK AT OUR POLICY ON DOING LIKE THE JANEK JUSTI BALL FIELDS, AND YOU COULD HAVE BOTH. >> I BELIEVE MR. JUSTI PROPOSED THAT TO MR. JANEK. >> NO. I THINK HE PROPOSED JUSTI JANEK. [LAUGHTER] >> I'M NOT I'M NOT AWARE OF THESE SEMANTICS. >> BUT BOTH SEMANTICS [INAUDIBLE]. >> I DO KNOW HE DID SAY HE DID THAT BECAUSE I'VE BEEN TRYING TO. >> BOTH GOT THE SAME INFORMATION, BUT I GOT INFORMATION FROM ONE OF MY CONSTITUENTS ABOUT THE LETTER THAT WAS SENT AND I'D LIKE TO GET A LITTLE MORE INFORMATION. I KNOW YOU SEARCHED HIGH, LOW AND I WANT TO GET MORE INFORMATION ON THE DEAL TO SEE IF THERE WAS MAYBE A COMMUNICATION BREAKDOWN OR SOMETHING WAS MISSED. LIKE I SAID, THEY'RE BOTH IN HIGH REGARDS. >> I WOULD REGARDLESS OF WHAT YOU GUYS DO ON THIS, BECAUSE THIS IS A POLICY ISSUE, COUNCIL CAN DO WHATEVER THEY WANT TO DO WITH IT. BUT I DO THINK WE NEED TO LOOK AT OUR OVERALL POLICY, ESPECIALLY WHEN YOU HAVE PEOPLE WHO ALREADY HAVE THINGS NAMED AFTER THEM AND NAMING MULTIPLE THINGS, AND ALL THOSE TYPE OF THINGS AND WHETHER THEY'RE. THERE'S SO MANY MERITORIOUS PEOPLE HERE IN GALVESTON. >> YES. >> THE AGENDA OF ITEM IS SEEKING CLARIFICATION. >> THAT IS CORRECT. THE REASON I KEPT THIS ON THE AGENDA, IS THAT, THIS IS A COUNCIL DECISION. IF COUNCIL MEMBERS FEEL THAT THEY WOULD NOT LIKE TO APPROVE AT THIS POINT, THE JANEK REQUEST AND APPLICATION, THEN THAT'S WHAT THE VOTES ALL ABOUT, SO WE'LL ADDRESS THIS THIS EVENING. YES, MA'AM. >> BROWN, YOU WERE SAYING THERE'S OTHER NAMING OPPORTUNITIES. >> I KNOW WHEN I WAS AT O'CONNELL. MR. JUSTI COACHED AT PONY COLE. THAT'S THE NAME OF THE STREETS NAMED AFTER HIM OUTSIDE. >> YOU HAVE A STREET NAMED AFTER [OVERLAPPING]. >> I'VE MADE THAT OFFER TO COMMISSIONER JUSTI, IF THAT WOULD BE AN OPPORTUNITY, BECAUSE, MY MEMORIES OF COACH JUSTI ARE THERE. >> THAT'S WHERE AMERICAN LEGION PLAYS. THEY PLAY BETWEEN THERE AND TURFIELD. >> HE ALSO COACHED THERE. MR. JUSTI IS THE BEST. OF COURSE, HE WAS ALWAYS ASSOCIATED WITH O'CONNELL. THAT'S WHERE I WENT TO SCHOOL, SO THAT'S HOW I KNOW HIM. I THINK THE COMMISSIONER RAN THAT BY HIS MOM AND HER BROTHERS WERE 53RD STREET. >> GOOD. BUT THE OFFER WAS MADE AND IT STANDS TO THE DATE BECAUSE I CAN'T THINK OF ANOTHER PERSON WHO HAS HAD THAT KIND OF IMPACT AT THAT FIELD OTHER THAN COACH JUSTI. >> ANY FURTHER DISCUSSION ON THE PROS AND CONS WILL HAPPEN THIS EVENING, AND ANY FURTHER CLARIFICATION QUESTIONS. THANK YOU, BARBARA. APPRECIATE IT. ALEX? ANYTHING ELSE, SIR? GO RIGHT AHEAD, MARIE. >> MOST OF THE QUESTIONS WERE ASKED. I WOULD LIKE JUST A QUICK OVERVIEW AND I'M GUESSING DAN IS HERE FOR THE BUDGET CHANGE. THE BUDGET AMENDMENT. HE'S CHILLING HERE. I DIDN'T SEE HER. SHE'S NOT WEARING PINK AGAIN TODAY. >> YOU'VE BEEN TOLD TO SIT DOWN. >> Y'ALL CAN HEAR ME. >> EVERYONE AT HOME CAN HEAR TOO. [LAUGHTER] >> IF YOU COULD IDENTIFY YOURSELF. >> MY NAME IS CHILA LUDANI, [00:25:02] AND I'M THE FINANCE DIRECTOR. THE QUESTION IS RELATED TO THE BUDGET AMENDMENT. THE SECOND QUARTER REPORT THAT WAS RECEIVED LAST MONTH BY THE COUNCIL, THIS IS IN REGARDS TO THAT. MOST OF THE AMENDMENT ITEMS ARE RELATED TO HOT TAX ITEMS, THAT COUNCIL HAS APPROVED IN THE LAST SIX MONTHS, AFTER THE ORIGINAL BUDGET ADOPTION, BUT FOR THE PARK BOARD BUDGET AS IT WAS PROPOSED. THIS IS JUST REALLOCATING THOSE FUNDS AS COUNCIL HAS APPROVED THE PROJECTS. >> ANYTHING ELSE, MARIE? >> NO. IT WAS EASY. >> THAT WAS SUPER EASY. >> YOU KEPT SAYING IT WAS GOING TO BE A LONG MEETING AND WHEN I ON [OVERLAPPING] >> BUT WE'RE NOT THROUGH YET. >> I'M NOT SEEING IT. I KNOW SHORT TERM WILL NOT BE A HOT ISSUE. >> BROWN, I'VE GOT A QUESTION ON 11E. >> YES, SIR. >> THAT IS THE ALCOHOL FOR THE PARK BOARD ITEM. >> I THINK WE OUGHT TO HAVE ALCOHOL FOR EVERYBODY. >> YESTERDAY. [LAUGHTER] >> YESTERDAY WE DEFINITELY SHOULD HAVE HAD ALCOHOL. >> ON 11E, THE ONLY QUESTION I HAD UNDERSTAND, I APPRECIATE STAFF GETTING WITH PARK BOARD STAFF AND WORKING ALL THAT OUT. BROWN, WOULD YOU EXPLAIN THAT? BARBARA, WOULD YOU EXPLAIN THAT, THAT ITEM ABOUT THE REVENUE IS RETAINED BY THE PARK BOARD, THAT'S NOT IN THE COST SHARE. >> THAT'S WHAT WE DECIDED. >> I'D LIKE A LITTLE MORE DETAIL, SO I UNDERSTAND THAT BETTER. >> MAYOR, FOLLOWING GUIDANCE OF COUNCIL IN THE DISCUSSIONS, THE CITY HAS ALWAYS TAKEN A POSITION. WE DON'T WANT TO BE IN ALCOHOL BUSINESS, AND THIS IS A CITY PARK, AND SO WE DON'T WANT TO SHARE IN ANY REVENUE FROM THE SALE OF ALCOHOL. AS WE WORK THROUGH THE INNER, LOCAL AND DECIDE ON REVENUE SHARES AT OUR VARIOUS PARKS THAT WE HAVEN'T RECEIVED IN THE PAST, WE'RE GOING TO EXCLUDE ALCOHOL BECAUSE WE DON'T WANT ANY PART OF ALCOHOL SALE REVENUE. >> THAT'S FINE. I JUST WANTED TO BE CLEAR ON THAT. >> WE HAVE SEVERAL EVENTS THAT HAPPEN IN PARKS, REGULAR PARK PLAYGROUNDS, AND WE DO NOT WANT TO ENCOURAGE OR APPROVE ANY TYPE OF ALCOHOL SALES OR EVEN PASSING OUT ALCOHOL. >> VERY GOOD. THAT ANSWERS MY QUESTION. THANK YOU VERY MUCH. APPRECIATE IT. THAT'S ALL THE QUESTIONS I HAD COUNCIL. LET'S MOVE TO ITEM 3B IF WE COULD. [3.B. Discussion Of The Industrial Development Corporation (IDC) Drainage Proposed Certificate Of Obligation Issuance (B. Cook - 15 Min)] >> 3B. DISCUSSION OF THE INDUSTRIAL DEVELOPMENT CORPORATION, IDC, DRAINAGE PROPOSED CERTIFICATE OF OBLIGATION ISSUANCE. >> VERY GOOD. WE HAVE BRANDON [INAUDIBLE]. THANK YOU, STAFF. >> YES, PLEASE. >> ACTUALLY, YOU HAVE THE MICE HERE BRANDON. >> IT'S NOT PICKING UP FOR SOME REASON. COULD YOU MOVE IT CLOSER? >> YES, WE CAN. >> THEN JUST PICK UP THE MIC. DON'T PICK UP THE STAND. >> IT'S WORKING. >> THANK YOU. >> IT WAS A SATURDAY NIGHT LIVE SKIT, BUT I WON'T GO INTO IT. >> I GOT A COPY OF THE PRESENTATION FOR YOU. GOOD MORNING, MAYOR AND COUNCIL. >> GOOD MORNING. >> BRANDON COOK, ASSISTANT CITY MANAGER. AT THIS POINT IN MY CAREER, I'VE BEEN ABLE TO FOCUS A LOT ON STRATEGIC FINANCIAL PLANNING. >> CAN YOU SPEAK UP? >> I REALLY COULDN'T HEAR. >> IS THIS BETTER? PERFECT. AS I WAS SAYING, AT THIS POINT IN MY CAREER, I'VE BEEN ABLE TO FOCUS A LOT ON STRATEGIC FINANCIAL PLANNING FOR THE CITY, IN ADDITION TO PROVIDING EXECUTIVE LEADERSHIP SERVICES TO THOSE DEPARTMENTS UNDER MY UMBRELLA, WHICH CURRENTLY INCLUDES SANITATION, RECYCLING, PUBLIC WORKS, MUNICIPAL UTILITIES, PLANNING, ENGINEERING, CONSTRUCTION, COASTAL, ECONOMIC DEVELOPMENT, BUILDING. I GRADUATE BORE HIGH, CLASS OF '97, BEEN WITH THE CITY FOR OVER 20 YEARS, WITH 14 CITY MANAGER'S OFFICE. DURING THAT TIME, OVER THE LAST 20 PLUS YEARS, I'VE SEEN THE CITY MOVE FROM A DISASTER RECOVERY PHASE ON TO MORE OF A BEAUTIFICATION AND PROACTIVE MAINTENANCE PHASE. [00:30:04] I REALLY BELIEVE THAT THE NEXT LOGICAL STEPS IN OUR EVOLUTION IS GOING TO BE TO FOCUS ON RESILIENCY AND SUSTAINABILITY GOING FORWARD. HAVING SAID THAT, I WANT USE THIS SLIDE. >> YOU STILL MIGHT WANT TO SPEAK UP A LITTLE. >> IS THAT BETTER? >> YEAH. >> PERFECT. HAVING SAID THAT, ONE OF THE BIGGEST CHALLENGES THAT WE ARE LOOKING AT GOING FORWARD IS REALLY SEA-LEVEL RISE. I SENT UP THIS GRAPH HERE FROM NOAA, AND IT'S SHOWING THE RELATIVE TREND IN SEA-LEVEL RISE AT THE GALVESTON BAY ENTRANCE FROM ABOUT 1957-2023. IF YOU EXTRAPOLATE THAT OUT OVER THE HUNDRED YEARS, IT AMOUNTS TO 2.15 FOOT INCREASE IN SEA LEVEL, WHICH IS 2-3 TIMES OUR GLOBAL AVERAGE. LAST WEEK, I THINK TROPICAL STORM ALBERTO WAS A PRETTY GOOD DEPICTION OF THIS ISSUE. WE HAD LESS THAN TWO INCHES OF RAIN FOR A SIX-HOUR EVENT MEASURED AT THE PUBLIC WORKS RAIN GAUGE THAT WE HAVE AT THE BUILDING THERE ON MARKET STREET, AND NOAA CLASSIFIES THAT AS LESS THAN A ONE-YEAR STORM AS FAR AS RAIN EVENTS ARE CONCERNED. [OVERLAPPING] >> WE HAD TO DOUBLE THAT ON THE WEST END. >> FOR RAIN? >> YEAH. >> WELL, RAIN IS VERY LOCALIZED ISSUE. BUT THE REAL STORY WAS, BUT THE RAIN SUBSIDED AND WE STILL HAD THESE FOUR-AND-A-HALF FOOT TIDES IN SOME AREAS. >> THEY NEVER SUBSIDED. >> NO. IT WAS DAYS AND DAYS. THAT WAS THE BIG STORY ABOUT THAT. THIS WAS TAKEN LAST THURSDAY MORNING, ABOUT 8:30. THIS IS 15TH LOOKING AT STRAND AND HARBORSIDE. IF YOU LOOK RIGHT THERE BEHIND THAT RED STOP SIGN, THAT'S WHERE THE PROPOSED 14TH STREET PUMP STATION IS GOING TO GO. THIS WAS TAKEN ON 59TH AND STEWART FROM THE CVS PARKING LOT. THAT'S RIGHT THERE AT ABOUT 8:15 THAT MORNING. THIS IS JUST SEVERAL BLOCKS UP THE STREET FROM WHERE THE SOUTH SHORE DRIVE PUMP STATION IS PLANNED TO BE BUILT. THAT'S AN ANOMALY. I THINK THAT WAS A GOOD OPPORTUNITY FOR US TO EDUCATE THE PUBLIC BECAUSE NORMALLY, WHEN WE RECEIVE THESE TYPES OF TIDES, WE'RE ALSO GETTING A 10-YEAR OR 20-YEAR RAIN EVENT ON TOP OF THAT, AND IT JUST EXACERBATES THE PROBLEMS AND STUFF. JOHN Q PUBLIC DOESN'T REALLY UNDERSTAND THE DIFFERENCE BETWEEN THE SALTWATER AND THE RAIN WATER, IT'S JUST WATER SITTING IN THE STREET. I THINK ONE THING THAT'S IMPORTANT TO POINT OUT THOUGH WITH THESE PUMP STATIONS IS THAT ON A 10-YEAR EVENT, WE'RE STILL GOING TO HAVE RAIN HOLDING IN THE STREET OR PONDING IN THE STREETS. THEY WILL ADDRESS THIS SUNNY DAY FLOODING, LIKE WE SAW, THEY SHOULD EFFECTIVELY DO THAT. WHAT THEY WILL DO IS REDUCE THE DURATION OF THE PONDING, IT'LL DRAIN A LOT FASTER. THIS SOME OF THE HYDRAULIC MODELING THAT WE DID AS PART OF THE SOUTH SHORE DRIVE PUMP STATION. >> IT ALSO CREATES MORE RETENTION BENEATH THE STREET BECAUSE THE PIPES WILL BE FULL WHEN IT STARTS RAINING. >> EXACTLY. IT TAKES A LOT LONGER TO FLOOD AND THEN WE CAN DRAIN IT A LOT FASTER. WHAT THIS SHOWS IN THE ORANGE AND RED AREAS THERE IS THE DURATION OF PONDING UNDER A 25-YEAR STORM WITH A THREE-FOOT TIDE WILL BE REDUCED ANYWHERE BETWEEN 1-6 HOURS DEPENDING ON THE EXACT LOCATION, INCLUDING THAT AREA THERE ON STEWART WHERE I TOOK THE PICTURE AT EARLIER, I JUST SHOWED IT TO YOU. THE PROBLEM WITH THESE PUMP STATIONS IS THEY'RE EXPENSIVE AND THEY'RE GETTING MORE AND MORE EXPENSIVE BY THE DAY. FOR INSTANCE, THIS IS THE TIMELINE THAT WE HAD ON SOUTH SHORE DRIVE PUMP STATION. WE APPLIED FOR THE GRANT IN OCTOBER OF 2020. AT THAT TIME, OUR CONSTRUCTION COST WAS ESTIMATED AT $49 MILLION. WE WERE AWARDED THE GRANT IN MAY OF '21, BEGAN SCOPE AND DESIGN CONTRACTS, WHAT HAVE YOU. WE RECEIVED A 95% OPINION OF PROBABLE COST OF CONSTRUCTION IN MARCH OF '24. THAT INCREASED TO $59 MILLION WHICH IS A 20% INCREASE OVER OUR ORIGINAL ESTIMATE WHEN WE APPLIED FOR THE GRANT. >> THE BENTLEY IS NOT PART OF THE BUDGET? >> I DON'T THINK SO. [OVERLAPPING] THAT'D BE EASY TO VALUE. WHY DOES IT KEEP GOING THAT WAY? THERE WE GO. AT THIS POINT, EVERYBODY'S PRETTY FAMILIAR WITH CPI AS A MEASUREMENT OF INFLATION, [00:35:01] THE CONSUMER PRICE INDEX MODEL. BUT WHEN YOU'RE LOOKING AT BUSINESS AND GOVERNMENT SPENDING, ONE NEEDS TO LOOK TOWARD THE PRODUCER PRICE INDEXES. YOU HAVE A QUESTION? >> NO, SIR, I DON'T HAVE >> THESE ARE A COUPLE OF THE PRICING INDEXES THAT I'VE PULLED. THE ONE HERE ON THE LEFT IS FROM THE BUREAU OF LABOR STATISTICS, IS THE PPI INDEX FOR FINAL DEMAND FOR GOVERNMENT CONSTRUCTION. AS YOU CAN SEE IN 2020, WHEN WE APPLIED FOR THAT GRANT. TODAY IN 2023, DOLLARS CONSTRUCTION PRICES HAVE INCREASED BY ALMOST 30%. ON THE RIGHT SIDE, THAT IS THE ENGINEERING NEWS RECORD CONSTRUCTION COST INDEX. THAT IS A FAVORITE OF THE ENGINEERS THAT DESIGNED THE PROJECTS, AND THAT SHOWS ABOUT A 20% INCREASE FROM 2019. SOME OF THE CRITICISMS ABOUT THESE TWO INDEXES, THE ONE ON THE RIGHT, THEY SAY IT DOESN'T INCLUDE CONTRACTOR PROFITS IN THERE BECAUSE THEY FOCUS MORE ON LINE ITEM DETAIL AND A LOT OF YOUR PROFITS ARE SITTING IN MOBILIZATION AND RETAINAGE, OR WHAT HAVE YOU. THE CRITICISM ON THE PPI IS THAT IT ONLY SURVEYS ABOUT 20 MAJOR METROPOLITAN AREAS, AND A LOT OF THESE BIDS CAN BECOME MORE REGIONAL ISSUES, DEPENDING ON LABOR MARKETS OR WHAT HAVE YOU. >> THESE NUMBERS HAVE PLAYED OUT IN OTHER PUBLIC PROJECTS AND GOVERNMENT PROJECTS HERE IN GALVESTON RECENTLY AND THEY SEEM TO BE PRETTY. [OVERLAPPING] >> THE TREND REMAINS THE SAME IF YOU LOOK AT VARIOUS INDICES THAT YOU USE. >> ABSOLUTELY. THEY'RE UP ALL OVER, AND THIS IS ONE OF THE DRIVERS BEHIND IT, CONCRETE AND CEMENT. THESE BIG DRAINAGE PROJECTS HAVE THESE HUGE BOX CULVERTS MADE OF CONCRETE. THEY GO UNDERGROUND, AND THE PRICE OF CONCRETE IS 31% SINCE 2020 NOW AT THIS POINT, AND WITH NO SIGNS OF RELIEF. SOME OF THE THINGS ARE STARTING TO TAPER DOWN LIKE STEEL AND STUFF, BUT WE'RE SEEING NO RELIEF ON CEMENT AND CONCRETE. OF COURSE, 14TH STREET HAS NOT BEEN INSULATED FROM THIS ISSUE. IT FOLLOWS THE SAME TIMELINE AND TRAJECTORY THERE. WE ASKED FOR AN INCREASE OF FUNDING TO FEMA BACK IN JUNE OF 2021 WHEN OUR CONSTRUCTION COST WAS ESTIMATED AT 39 MILLION. NOW, AS OF JANUARY 2024, IT'S ABOUT 48 MILLION, SO THAT'S A 25% INCREASE FROM THE ORIGINAL COST ESTIMATE BACK IN JUNE. >> HAVE WE STARTED THIS ONE? >> I'M SORRY? >> WE HAVE STARTED THIS, RIGHT? >> WE'RE TALKING ABOUT A BOTTLE OF INPUT. ONE WILL BE BID EARLY JULY AND THE OTHER WILL BE BID SHORTLY THEREAFTER. >> WE'RE LOOKING AT JANUARY, ASSUMING THE FUNDING COMES IN PLACE. >> WE'VE ALL THE DESIGN AND ENGINEERING? >> YES. BUT ON 14TH STREET, WE HAD TO UNDERGO A CONSTRUCTABILITY REVIEW BECAUSE WE PUT IT IN FEMA'S QUEUE. A LOT OF THINGS HAVE CHANGED OUT THERE, THE FOOTPRINT, WE HAD DEL MONTE MOVE OUT, SO WE DON'T HAVE TO ACCOMMODATE FOR THEIR OPERATIONS OUT THERE. WE'RE TRYING TO UTILIZE THIS TIME PERIOD TO REALLY MAKE SURE THAT WE'RE NOT OVERPAYING FOR SOMETHING. >> AND THERE ARE TWO DIFFERENT FUNDING SOURCES. THIS ONE HAD A LITTLE BIT MORE STRINGENT REVIEW TIME THAN THE ONE ON OFFICE DID. >> SOUTH SHORE IS MID-JULY? >> WE'RE GOING AT MID-JULY. >> THE END OF JULY IS WHAT WE WERE LOOKING AT, JULY 30TH. >> EARLIER THIS WEEK. >> IS WHAT WE'RE PLANNING. >> SOUTH SHORE HARBOR, YOU DON'T INDICATE A FUNDING SHORTFALL, HOWEVER, ON 14TH STREET. YOU INDICATE A $19 MILLION SHORTFALL? >> NO. IT'S ESTIMATED $10 MILLION SHORTFALL. >> WHERE ARE THOSE FUNDS COMING FROM? >> THAT'S THE NEXT SLIDE. >> I'M SORRY. >> WE'RE PROPOSING. NO, GOOD SEGUE. THANK YOU [OVERLAPPING] FOR KEEPING US MOVING ALONG. >> THAT'S GOOD. >> WHAT WE'RE PROPOSING TO DO IS ASK THE IDC BOARD FOR APPROVAL OF AN MOU TO BACK ABOUT $20 MILLION WORTH OF CERTIFICATES OF OBLIGATION OVER A 20-YEAR SPAN. THIS IS THE SCHEDULE THAT WE'RE LOOKING AT. WE'RE ASSUMING ABOUT 4.3% ALL IN TRUE INTEREST COSTS ON THIS PROJECT WITH ABOUT 25 BASIS POINTS AS A BUFFER JUST TO HANDLE ANY KIND OF MARKET FLUCTUATIONS THAT WE MIGHT HAVE. THIS WOULD BE ON SLIDE 12 IS YOUR AMORTIZATION SCHEDULE. WE'D BE LOOKING AT ABOUT ONE-AN-A-HALF MILLION DOLLARS EVERY YEAR OVER 20 YEARS FOR THIS 20-YEAR DEBT. >> WE'RE LOOKING AT THIS FROM THE INFRASTRUCTURE. >> THERE WOULD NOT BE ENOUGH MONEY IN THE INFRASTRUCTURE FUND TO COVER BOTH OF THESE PROJECTS. WHAT WE'RE LOOKING AT RIGHT NOW IS BECAUSE 14TH STREET IS PART OF THE PORT OPERATIONS AND IT'S ON PORT PROPERTY, [00:40:02] IT SUPPORTS WATERBORNE COMMERCE. WE'RE PLANNING TO UTILIZE THE ECONOMIC DEVELOPMENT SILO IN ORDER TO FUND THAT PORTION OF THAT. THEN THE OTHER HALF WOULD COME FROM THE INFRASTRUCTURE SILO FOR THE SOUTH SHORE DRIVE PUMP STATION, IS WHAT THE FORECASTING LOOKS LIKE. [OVERLAPPING] >> WE'LL BE USING BOTH SILOS FOR THESE TWO PROJECTS SO THAT THEN THAT ELIMINATES USING THEM FOR ANYTHING ELSE WE MIGHT NEED IT FOR? >> WELL, THERE'LL STILL BE MONEY LEFT IN THE SILOS, THEY ARE NOT TAPPED OUT. ACCORDING TO JUST OUR FORECAST RIGHT NOW, IF WE DIVE INTO A RECESSION AND SALES TAX DIPS, THINGS COULD CHANGE. BUT AT THIS POINT, THERE WILL BE MONEY FOR OTHER PROJECTS AS WELL IN THERE. >> IT WILL TAKE AWAY FROM THOSE SIGNIFICANTLY. >> SEVEN HUNDRED FIFTY THOUSAND DOLLARS. >> THAT'S WHAT I WAS LOOKING FOR WAS THE ANALYSIS. WHAT'S YOUR REMAINING ALLOWABLE DEBT SERVICE COVERAGE IN IDC? >> WELL, FOR THOSE TWO, I WAS PLANNING TO VET THAT WITH THE BOARD. I CAN COME BACK TO COUNCIL AFTER I RECEIVED THE BOARD'S INPUT OR WHAT HAVE YOU BECAUSE THAT'S OUR NEXT STEPS IN THIS WHOLE SCHEDULE IS TO APPROACH THE IDC BOARD ON JULY 9TH WITH MEMORANDUM OF UNDERSTANDING. THEN ASSUMING THEY APPROVE THAT, THEN WE WOULD BRING THIS BACK TO COUNCIL JULY 25TH TO AUTHORIZE THE ISSUANCE OF THE CERTIFICATES, AND SOME OTHER KEY DATES IN THERE. THEN WE WOULD GO THROUGH THE REGULATORY PROCESS, PROVIDE DUE NOTICE, OR WHAT HAVE YOU. THEN WE WOULD COME BACK TO COUNCIL, LOOKING FOR A PARAMETER ORDER FOR THE NEGOTIATED SALE, AND THEN GO TO MARKET ON SEPTEMBER 30TH AND THEN CLOSE ON OCTOBER 22ND. >> SALES TAX HAS BEEN STAGNANT RECENTLY? >> FLAT. [OVERLAPPING] >> IT WAS DOWN INITIALLY, IT'S STARTING TO FLATTEN OUT RIGHT NOW. SO WE'VE REVISED OUR FORECAST TO HAVE IT FLAT AT LEAST FOR THIS YEAR. I THINK A MODEST 2% BUMP IN THE FORECAST FOR NEXT YEAR IS WHAT I'VE PROGRAMMED AT LEAST IN THE INDUSTRIAL DEVELOPMENT CORPORATION FORECAST. I HAVE NOT HAD A CHANCE TO TOUCH BASE WITH [INAUDIBLE] ON HER LONG-RANGE FORECAST, SO I'LL NEED TO DO THAT AND ALIGN THOSE. >> I WANT TO MAKE AN EDITORIAL STATEMENT ON THIS PROJECT. WE TALK ABOUT WHAT IS THE WHAT IS THE BENEFIT TO RESIDENTS OF TOURISM, [NOISE] THIS IS IT. ABOUT 50% OF THIS FUNDING COMING FROM IDC COMES FROM SALES TAX OF OUR TOURIST, AND THIS IS JUST ONE LITTLE PART. AS WE GO THROUGH THIS, I THINK WE'LL SEE MORE AND MORE HOW TOURISM REALLY FUNDS SO MUCH OF WHAT THE RESIDENTS' IMPROVEMENTS ARE. AND WITHOUT THAT, WE WOULD NOT HAVE THIS. >> I TOLD YOU GUYS, FLOODING HAS BEEN A PROBLEM IN GALVESTON. MY WHOLE LIFE, MY PARENTS' LIFE, MY GRANDPARENTS' LIFE, WE ARE SOLVING FLOODING ISSUES NOW THAT HAVE BEEN CHRONIC. IT'S EXPENSIVE THAT OUR RESIDENTS HAVE ASKED FOR, AND THIS IS THE SOLUTION AND WE WANT THESE SOLUTIONS. THIS IS THE ROUTE WE HAVE TODAY. >> VERY GOOD. ANY QUESTIONS? YES. [OVERLAPPING] >> MY ASK FOR THAT WAS NOT NECESSARILY THAT I'M OPPOSED. >> NO, I UNDERSTAND. >> IT'S JUST SIMPLY THAT I NEED TO UNDERSTAND WHAT'S THE REMAINING COVERAGE FOR DEBT SERVICE SO THAT WE KNOW HOW DO WE MOVE FORWARD WITH OTHER PROPOSED IMPROVEMENTS, WHETHER IT BE ON THE DRAINAGE MASTER PLAN OR PAVEMENT MANAGEMENT, WHATEVER THAT WE KNOW IS REMAINING. >> AS I'VE SAID MANY TIMES PUBLICLY, THESE PUMP STATIONS ARE BEYOND WHAT OUR CITIZENS 100% ASK THEMSELVES. THESE ARE MASSIVE PROBLEMS. >> THEY ARE. >> WHAT PROBABLY NEEDS TO OCCUR IS THAT IN FUTURE FUNDING CYCLES, THE GRANTING AGENCIES NEED TO TAKE INTO ACCOUNT THESE BIG SWINGS AND INFLATION. ALBEIT, THESE PROJECTS CAME IN JUST BEFORE THE BIG, WHAT I WOULD CALL THE COVID SWING. THAT'S KIND OF AN ANOMALY, AND THERE'S A WHOLE BUNCH OF PUBLIC ENTITIES THAT HAVE BEEN CAUGHT IN THAT, THE SCHOOL DISTRICT DOES AND OTHERS. IT SHOULD LEVEL OFF AFTER THIS FOR FUTURE PROJECTS, HOPEFULLY. BUT FINANCING HAS GOTTEN MORE EXPENSIVE TOO. >> I KNOW IT'S UNPOPULAR, BUT IF WE'RE LOOKING AT STAGNATING SALES TAX, WE PROBABLY SHOULD START, I THINK, AUDITING AND SEEING IF WE ARE COLLECTING ALL OF OUR SALES TAX. >> MR. BULGHERINI DOES THAT. >> WE'RE GOING TO DISCUSS THAT IN JUST A SECOND. YES, SIR. >> WELL, NO, THAT'S A GOOD POINT, THOUGH. >> NOT POPULAR, BUT [OVERLAPPING] WE NEED ALL WE CAN GET. >> WE HAVE COUNCILMEMBER RAWLINS ASKING QUESTIONS. >> THIS IS THE SAME GROUP THAT PRESENTED THE BOND FOR THE PORT, CORRECT? [00:45:05] >> YES, OUR FINANCIAL ADVISOR, CAMERON THATCHER. YES. >> IF YOU IF YOU TURN TO PAGE 11, SUMMARY OF FINANCING STATISTICS. >> EXCUSE ME, BOTH. COULD YOU IDENTIFY YOURSELF, PLEASE, SIR. >> YES. CAMERON THATCHER, I WORK FOR HUNTINGTON CAPITAL MARKETS AS FINANCIAL ADVISOR TO THE CITY. >> WE'RE GOING TO HAVE THE SAME CONVERSATION WE HAD LAST TIME WE WERE DISCUSSING REPORT. WE'RE EITHER GOING TO NEED TO TAKE THE LIFE OF THE AMORTIZATION AND SIMPLY HAVE TWO TABLES. IF YOU'RE ALL GOING TO PROPOSE 11 YEARS ON THE AVERAGE LIFE ON ONE PAGE, AND THEN AMORTIZE IT OVER 20 YEARS AND THEY ADD UP TO THE SAME NUMBER, WE'RE GOING TO MAYBE HAVE TWO TABLES, ONE AT 11 YEARS, ONE AT 20 YEARS. >> NO. AGAIN, THE AVERAGE LIFE IS A CALCULATION. IF YOU LOOK AT THE DEBT SERVICE, [NOISE] AND YOU WERE TO LOOK AT HOW THE PRINCIPAL IS PAID OUT IN THE LEFT COLUMN, THAT FIRST COLUMN, THE AVERAGE LIFE IS A CALCULATION OF HOW MUCH THE PRINCIPAL IS PAID OFF. THE LAST MATURITY IS NOT PAID OFF UNTIL YEAR 20, BUT THE AVERAGE LIFE OF ALL OF THE BONDS THERE, THE CALCULATION OF IT, EQUALS 11 YEARS. BASICALLY IT'S SAYING ALL THE DEBT WILL BE OUTSTANDING FOR APPROXIMATELY 11 YEARS, EVEN THOUGH THE FIRST BOND IS ONLY OUTSTANDING FOR ONE YEAR. IT'S A PURE CALCULATION. I CAN REMOVE THAT LINE COMPLETELY. THE DEBT WILL BE AMORTIZED OVER 20 YEARS, BUT THE AVERAGE LIFE IS A CALCULATION THAT WE USE IN [INAUDIBLE]. >> I GUESS I UNDERSTAND COMPLETELY WHAT YOU'RE SAYING, BUT IT'S A NUMBER THAT'S PUT IN THERE. IF TAKEN THE WAY IT'S WRITTEN, THE NUMBERS WOULD CHANGE. IN OTHER WORDS, A 10-YEAR AMORTIZATION COMPARED TO 20-YEAR AMORTIZATION, YOU'RE GOING TO SAVE A TON OF INTEREST THAN YOU WOULD OF 20. >> OF COURSE. ON A 30-YEAR AMORTIZATION, JUST LIKE ON YOUR HOUSE, YOU WOULD PAY ABOUT THE SAME AMOUNT OF PRINCIPAL AS YOU PAY IN INTEREST, SAME THING. HERE, YOU CAN LOOK, WE'RE DOING ABOUT $20 MILLION. THE INTEREST IS 10 YEARS, SO WE CUT IT IN HALF. >> AGAIN, THE AVERAGE LIFE IS JUST SAYING, AT ANY GIVEN MATURITY, IF YOU WERE TO RANDOMLY SELECT ONE, THE AVERAGE LIFE OF IT WOULD APPROXIMATE TO 11.7 YEARS. BUT THE 20 YEAR, OBVIOUSLY, IS GOING TO BE OUT FOR 20 YEARS, THE FIRST YEAR IS GOING TO BE OUT FOR ONE. >> I GUESS I'M JUST LOOKING AT THE BOTTOM LINE OF THE TOTAL DEBT SERVICE. THAT'S WHAT WE CAN DEPEND ON. >> IF YOU WANT, I CAN TAKE IT OUT. IT'S JUST SAYING PURE AVERAGE OF EVERYTHING, THE WEIGHTED AVERAGE OF HOW LONG THESE ARE OUTSTANDING VERSUS HOW MUCH YOU'RE PAYING ON THEM. IT EQUATES TO JUST UNDER 12 YEARS. >> I WOULD BE OKAY WITH LEAVING IT IN THERE IF YOU ADDED THE TOTAL OF WHAT WE'RE LOOKING FOR. I KNOW IT'S SAYS 20-YEAR SERVICE, BUT IF YOU ADD IT ON THE AVERAGE LIFE OF EACH BOND AND THEN ADDITIONALLY, WHERE THIS IS JUST A 20-YEAR BOND. >> I CAN ADD A LINE THAT SAYS THIS IS A 20-YEAR BOND RIGHT UNDERNEATH IT. >> I APPRECIATE THAT. >> DURATION OF THE AMORTIZATION. >> THERE'S NO PRE-PENALTY PAYMENT? >> AS WITH ALL BONDS, INVESTORS HAVE AN OPTIONAL REDEMPTION DATE, AND TYPICALLY, THAT'S ABOUT A 10-YEAR. SOMETIMES, YOU CAN GET AWAY WITH NINE YEAR WITHOUT PAYING ANY PREMIUM. RIGHT NOW, THAT'S WHAT WE'RE LOOKING AT, 9-10 YEARS. YOU CAN PREPAY THAT AT ANY TIME, BUT IT SITS IN AN ESCROW UNTIL IT HITS THAT COAL DATE. THEN AFTER THAT, YOU CAN EITHER PREPAY, OR IF INTEREST RATES GO DOWN, WE CAN REFINANCE FOR A LOWER RATE, WHICH WILL HELP THE SALES TAX FOR FUTURE. >> I'M SORRY, BEAU, YOU HAVE MORE? >> NO, THANK YOU. >> OUR COST TO 1.5 ANNUAL PREMIUM THEN ON THIS, THAT APPROXIMATELY 50% WILL COME OUT OF INFRASTRUCTURE AND 50% OUT OF ECONOMIC DEVELOPMENT. >> YOU SHOULD EXPLAIN. >> YES. EACH SILO GETS HOW MUCH A YEAR? ABOUT TWO? >> RIGHT NOW, ABOUT TWO. >> ABOUT TWO MILLION A YEAR. WE HAVE FOUR SILOS, SO WE HAVE ABOUT EIGHT MILLION FLOWING INTO IDC ANNUALLY ON THAT. >> TO SPEAK OF OTHER PROJECTS, THE BOARD HAS ALREADY APPROVED THE DIP PROJECT, THE DRAINAGE IMPROVEMENT PILOT PROJECT. THAT'S ABOUT 2.5 MILLION THAT WE'RE ABOUT TO HOLD A PUBLIC HEARING ON AT OUR NEXT BOARD MEETING AND THEN BRING TO COUNCIL FOR APPROVAL AFTER THE FACT, AND IT'S LOOKING AT ADDRESSING SOME MORE LOCALIZED INTERSECTIONS. >> A LOT OF WHAT WE PILOTED, [INAUDIBLE] TALKED ABOUT YESTERDAY [OVERLAPPING]. >> EXACTLY. RIGHT. >> IT IS WORKING VERY WELL. >> YEAH, TO PIGGYBACK ON THAT. [00:50:02] THAT'S GOING TO GIVE THEM NEEDED EQUIPMENT, AND SOME MATERIAL FUNDS FOR MATERIALS IN ORDER TO GO OUT AND ACCOMPLISH SOME OF THESE PROJECTS THAT YOU GUYS DISCUSSED YESTERDAY. >> ANY QUESTIONS FURTHER, COUNCIL? >> JUST MAKING A COMMENT. AS WE MAKE THE ISLAND BETTER AND BETTER, THE SALES STATE THAT WILL START TO RISE, AGAIN. >> THAT'S THE WHOLE GOAL OF IDC MONEY. >> THAT'S RIGHT. [OVERLAPPING]. >> WE GET MORE IDC MONEY. >> EXACTLY. >> WE FEEL LIKE IMPROVEMENTS, WE REALLY LOOK AT THAT CLOSELY AND IF IT'S NOT GOING TO BENEFIT SALES OVERALL, IT'S PROBABLY NOT A GOOD SPOT FOR THOSE SILOS. >> I FORGET THAT THE FEDERAL GOVERNMENT'S CONTRIBUTING ABOUT $100 MILLION TOWARD THESE TWO PROJECTS OVER THERE TOO. [OVERLAPPING] THE PROBLEM IS YOU ASK AND THEN THE PRICE TAG KEEPS GOING UP AND THE YOU HAVE MORE. WE TRIED THAT ALREADY. >> IT'S GOT TO STOP SOON. >> [OVERLAPPING] TO THANK BRANDON FOR ALL THIS WORK ON THIS. ALSO, TO GIVE KUDOS TO TESA WROBLESKI WHO YOU MET EARLIER. I WORKED WITH TESA NOW ALMOST 30 YEARS, AND THERE IS NONE BETTER [OVERLAPPING] IN CHASING THIS STUFF DOWN BOTH POST DISASTER AND PRE DISASTER. >> SHE IS THE QUEEN IN FEMA FUNDING. >> SHE'S VERY GOOD. >> THANK YOU, BRANDON, VERY MUCH. APPRECIATE IT. THANK, CAMERON. THANK YOU VERY MUCH. LET'S MOVE TO ITEM 3C, PLEASE. [3.C. Discussion Of Proposed Changes To City Code Chapter 33 Related To Taxation (D. Glywasky/C. Ludanyi - 15 Min)] >> I'LL JUST READ FROM OVER HERE. 3C, DISCUSSION OF PROPOSED CHANGES TO CITY CODE CHAPTER 33 RELATED TO TAXATION. >> [LAUGHTER] IS THAT RIGHT? THIS ITEM, DAN, ARE YOU GOING TO PRESENT THIS. WON'T YOU SIT AT THE MICROPHONE, DAN, OVER HERE. >> GIL IS COMING TOO. >> GIL IS COMING? >> THIS IS EMPTY HERE TOO, DAN. >> EVERYBODY IN THE COMMUNITY IS DEAF, BUT I JUST DID THAT. [LAUGHTER] [BACKGROUND] >> THIS ITEM, COUNCIL, IS NOT ON OUR AGENDA FOR ANY ACTION TODAY, BUT IT WILL PROBABLY BE BACK TO US IN JULY FOR ACTION. THIS IS JUST TO ACQUAINT US WITH THIS AND TO CLARIFY THAT, AND SEE IF WE HAVE ANY QUESTIONS. I TALKED WITH DAN A LITTLE BIT ON THIS. THIS IS MAINLY A HOUSE KEEPING TYPE ITEM FOR THESE TAX CHANGES, BUT I'LL TURN IT OVER. DAN, ARE YOU GOING TO START? >> I THINK THE TAX CODE IS CONTAINED IN PUBLISHED CITY CODE WAS WRITTEN AROUND 1960. IT'S AN INTERESTING ARTIFACT, BUT REALLY NOT RELEVANT TO THE WAY THINGS ARE DONE TODAY. THE CURRENT SECTION, ON AD VALOREM TAXES, PROVIDES FOR THE CITY TO HAVE ITS OWN TAX ASSESSOR WHO PERFORMS THE ASSESSMENT OF TAXES, WRITES THE TAX ROLE, SPONSORS A BOARD OF EQUALIZATION. NONE OF THOSE THINGS HAPPEN TODAY. THE TAX CODE WAS WRITTEN BEFORE THE ADVENT OF THE CAD. BEFORE TIME WHEN THE CITIES COULD DESIGNATE THE COUNTY TAX ASSESSOR COLLECTOR TO DO THE COLLECTION, WHICH [INAUDIBLE] HAS DONE, AND WE NEEDED TO REALLY BRING UP AD VALOREM TAXES INTO THE PRESENT CENTURY. WE HAVE CHARLENE AND I WORKED ON THIS TOGETHER. SHE'S VERY HARD WORKER, AND I'D LIKE YOU TO NOTE THAT I WOULD NOT YIELD TO THE FOUR TIE CONTEST TO BRANDON. >> IT'S A GOOD TIME OF THE DAY. >> AS ATTACHMENTS TO THIS ITEM, YOU WILL SEE THE PRESENT CODE AND THE PROPOSED CODE. WE HAVE NOT REALLY DONE ANY SUBSTANTIVE CHANGES TO THE TAX CODE. WE HAVE MERELY SUBSTITUTED THE PROCEDURAL SECTIONS FOR THOSE THAT WERE IN THE TAX CODE AND HAD BEEN MADE OBSOLETE. THE TAX CODE HAS SEVERAL SECTIONS, ONE ON AD VALOREM TAXES, ONE ON HOT TAXES, ONE ON BINGO TAXES, ONE ON TELECOMMUNICATIONS. BUT THE CHANGES WE'VE MADE TO AD VALOREM, I THINK REALLY ARE NON-CONTROVERSIAL AND PRETTY PLAIN. [00:55:03] THEY, IN FACT, FOLLOW THE PROCEDURE WE HAVE BEEN USING THE LAST SEVERAL YEARS. IN A WAY, YOU COULD SAY WE'RE BRINGING THE CITY CODE UP TO WHAT WE ACTUALLY DO, COMPLIANCE WITH OUR BEHAVIOR. IN THE CITY CODE, IT PROVIDED FOR HOMESTEAD EXEMPTIONS FOR DISABLED [INAUDIBLE]. WE DO THAT EVERY YEAR AS PART OF THE BUDGET PROCESS. I THINK WE DID IT LAST [NOISE] ONE. WE HAVE A SECTION ON HOTEL OCCUPANCY TAX. I DON'T REALLY RECALL MAKING ANY DRAMATIC CHANGES TO IT EXCEPT FOR CLARIFYING THE PENALTY PORTIONS, BRING THEM MORE INTO LINE WITH THE STATE CODE. >> STATE LAW. >> THE TRIGGERS FOR AND CIVIL REMEDIES AVAILABLE TO THE CITY ARE SET OUT IN THE TAX CODE, AND WE'RE JUST WRAPPING THEM UP INTO THE PRESENT CODE. ONE THING WE DID DO IN THE MIDDLE OF THE HOT TAX SECTION WAS AN ENTIRE SECTION ON HOW TAX MONEY WOULD BE DISTRIBUTED THROUGH THE ARTS AND HISTORIC COMMITTEE. WE HAVE LIFTED THAT OUT AND PUT IT AT THE END OF THE CHAPTER AT THE END. WE HAVE NOT CHANGED IT AT ALL. WE HAVE NOT CHANGED IT BECAUSE WE THINK WE NEED TO HAVE THE INPUT OF THAT COMMITTEE BEFORE WE DO ANYTHING TO IT. THERE ARE SOME ERRORS, I UNDERSTAND THAT NEED TO BE BROUGHT INTO THE PRESENT, BUT WE NEED TO INVOLVE THE COMMITTEE BECAUSE THIS IS THEIR AREA. THE NEXT SECTION ON BINGO TAX, I DIDN'T REALLY REALIZE THERE WAS A 2% BINGO TAX IN TOWN. >> THIS OFFENDS ME RELIGIOUSLY. [LAUGHTER]. >> WE HAD CONSIDERED ELIMINATING IT, BUT MY THOUGHT WAS, WHY NOT KEEP IT IN, EVEN THOUGH THERE ARE NO BINGO GAMES ACTIVE IN TOWN. BUT TO MY SURPRISE, JANELLE PRODUCED TWO BINGO PERMITS. ONE FOR HOLY FAMILY, HAD A ONE NIGHT BINGO ENTERPRISE AND ANOTHER ORGANIZATION, WAS IT THE ELKS OR SOMETHING? >> ELKS, YEAH. >> THEY HAD A SIX MONTH PERMIT. I HAD ENVISIONED A COMMERCIAL BINGO OPERATION THIS BEING APPLIED TO LIKE THIS IS A BIG ONE IN LAMARC. IF YOU'RE OKAY WITH IT, I WOULD PROPOSE EXCLUDING. >> NOT FOR PROFITS. >> NOT FOR PROFIT EVENTS NOT TO EXCEED X PERIOD OF TIME. IF THEY'RE HAVING A BINGO THING, THEY NEED THE MONEY AND IT'S UP TO YOU WHETHER WE SHOULD BE TAXING IT. I SUGGEST WE GIVE THEM A PASS AND ONE DAY, MAYBE, YOU NEVER KNOW, PERHAPS THERE'LL BE A HUGE BINGO HALL IN TOWN. >> THERE USED TO BE. >> THERE USED TO BE BACK IN THE DAY. >> ON 61ST STREET. >> BUT MOST HERE NOT FOR PROFITS, I DON'T KNOW THAT THEY'RE ALL AWARE THAT THEY'RE SUPPOSED TO GET PERMITS, BUT THERE'S USUALLY NO MONEY. IT'S DONATED THINGS. THEY'RE DONATED. WHAT WOULD YOU TAX ANYWAY? >> I THINK THE TAX IS ON THE TAKE OF THE HOUSE FROM THE BINGO GAME. >> BUT SO MOST YOUR NOT FOR PROFITS, DON'T DO IT FOR MONEY. THEY'LL HAVE PEOPLE DONATE A BOTTLE OF LIQUOR, THEY'LL DONATE OR AT LEAST ONES THAT I'VE SEEN. IT'S THAT KIND OF YOU WIN. >> THEY'RE NOT TALKING ABOUT THE WINNING. THEY'RE TALKING ABOUT WHAT YOU PAY TO PLAY. THE TAX WOULD BE ON WHAT YOU PAY TO PLAY IS WHAT DAN IS SAYING. YOU PAY ONE DOLLAR AND PLAY THE GAME TO WIN A BOTTLE OF LIQUOR, THERE'D BE A 2%, YOU PAY TWO CENTS. >> I THINK WE SHOULD WAIVE, DAN. >> I TOTALLY AGREE. >> WE DON'T NEED TO BE WADING INTO THIS AT ALL. TELECOMMUNICATION TAX, TO BE HONEST WITH YOU, I DON'T HAVE A HANDLE ON IT. >> IT HAD TO BE ADOPTED BY MUNICIPALITIES IN ORDER TO COLLECT IT. I'M SURE THAT'S WHAT WAS DONE, [01:00:01] IS IT WAS INCORPORATED, AND THEN IT ALLOWS US TO COLLECT THAT TAX ON ANY TELECOMMUNICATIONS OCCURRING IN THIS. >> APPARENTLY, IT BECAME EFFECTIVE IN 1988. THEN THERE'S AN ORDINANCE NUMBER. AS TO SALES TAX, WE DID NOT HAVE A MENTION OF SALES TAX IN OUR TAX CHAPTER. I HAVE MERELY ADDED IN AN ARTICLE THAT SAYS, WE HAVE A SALES TAX. IT'S IMPOSED AND COLLECTED AND SENT TO THE STATE CONTROLLER WHO YOU GIVES IT TO US AND THAT'S PRETTY MUCH IT. THEN WE HAVE A CLARIFICATION ON THE USE OF THE LAST ARTICLE, ARTICLE 6 DEALS WITH THE DISTRIBUTION PROCEDURES USED BY ARTS AND HISTORIC FOR DISTRIBUTION OF THEIR PORTION OF THE HOT TAX. THAT'S PRETTY MUCH IT. WE REALLY HAVEN'T DONE ANYTHING SUBSTANTIVE. WE'VE JUST MOVED THINGS AROUND TO MAKE IT MORE USER FRIENDLY. >> HAVE WE ADDED IN THE REAL PROPERTY TAX ON THE RENTALS THAT COUNTY HAS PUT IN. >> THAT WAS COVERED UNDER AD VALOREM. WE DON'T ASSESS THEM SPECIFICALLY AND SEPARATELY. THEY ARE PART OF THE AD VALOREM TAX COLLECTED BY THE COUNTY. >> BUT WE SHOT AD VALOREM IN OUR TAX SCHEDULE? >> I'M SORRY. >> BUT WE SHOT HAVE A SIMILAR IN OUR TAX SCHEDULE? >> NO. BECAUSE WE ADOPT A RATE AND THAT RATE IS ASSESSED AGAINST BOTH REAL AND PERSONAL PROPERTY TAXES. WE COVER THEM EITHER WAY. >> COUNCILMAN PORRETTO. >> SOME OF YOUR NOTES WERE ON HERE. >> THAT WAS RATE. >> WHAT'S UP WITH THE TAX COLLECTION SUIT? I'M JUST JUST CURIOUS WHY WE [INAUDIBLE] COUNCIL, SECTION 33-99.2. I'M ASSUMING ALL THOSE ORDINANCES THAT GOT TOUCHED UPON BETWEEN SOMETIME IN 2001. MOST RECENTLY. >> THAT WAS A SUIT, I BELIEVE [NOISE] IN CHUCK WILSON AGAINST THE CAD. LET ME SEE. 33-92? >> 99-2. >> I'M SORRY. I CAN'T FIND WHERE WE'RE AT HERE. 99-2. >> TAX COLLECTIONS HERE. >> CITY ATTORNEY'S OFFICE HAS ALWAYS BEEN ABLE TO FILE TAX COLLECTION CASES WITHOUT ANY INVOLVEMENT OF COUNCIL. WE HAVE ACCOUNTS SENT TO THE AUDITOR FROM THE PARK BOARD. HE HAS A PERSON AUDIT THEM, THEY CONTACT THE TAXPAYER, THEY SEEK RECORDS. THE TAXPAYER EITHER COMPLIES OR DOES NOT COMPLY. IF THE PERSON DOES NOT COMPLY, WE GO AHEAD AND FILE A DEMAND AND THEN FILE A SUIT. IF THEY DO COMPLY, GLEN PRODUCES THE AUDIT AND SENDS A DEMAND LETTER, AND THIS IS TO KEEP COUNCIL TOTALLY OUT OF THE ELECTION OF TAXES, WHERE, YOU DON'T WANT TO BE. THESE ARE OPERATIONAL ISSUES AND COUNCIL IS A POLICY MAKING BOARD. >> WE'LL BE DISCUSSING THAT IN A SECOND, BUT THE PARK BOARD WHEN THAT HAPPENS, THEY PAY THE CITY FOR THOSE AUDITS. >> THEN THERE WAS ONE MORE. I THINK IT WAS THE SEVEN EIGHTS AND ONE SEVENTH. [01:05:01] WHAT WERE THE CHALLENGES THAT THE PARK BOARD WAS RAISING? >> CHALLENGES OF THE BOARD. >> THE NOTE SAID SOMETHING, YOU ADDRESSED THE CONCERNS AND CHALLENGES RAISED BY THE PARK BOARD. >> LET ME SEE. WHERE ARE YOU AT THERE? >> THIS ONE WOULD BE 33-103, USE AND DISTRIBUTION OF HOT TAX. >> IT'S YOUR NOTE ON NUMBER 7. >> I GOT CALLED. YOU GOT YOUR NOTES AND SHOULD HAVE NEVER BE TEXT. >> 33 [INAUDIBLE] >> 33-103. NUMBER 7. >> ONE ZERO THREE. WE HAD A BIT OF A TIFF LAST YEAR. WE'RE HERE, BUT I'M SURE YOU READ ABOUT IT. >> I WAS WATCHING. [LAUGHTER] >> ONE OF THEIR ASSERTIONS WAS, HOT TAX BELONGED TO THEM. IN THE TAX CODE, IT SAYS, WE DO NOT SEND HOT TAX TO ANYBODY, UNLESS WE HAVE A CONTRACT. >> YOU MIGHT WANT TO SPEAK UP BECAUSE [OVERLAPPING]. >> WE CAN BARELY HEAR YOU. >> TALK ABOUT THE FACT THAT THEY CAN'T HEAR YOU. IF YOU COULD START THAT OVER. >> I DON'T KNOW IF YOU KNOW, BUT THERE WAS A LITTLE TIFF LAST YEAR. THE PARK BOARD ASSERTED THAT HOT TAX BELONGED TO THEM, AND OUR ASSERTION WAS, IT WAS A CITY TAX THAT WE SENT TO THEM. THE TAX CODE PROVIDES THAT WE DO NOT SEND HOT TAX TO ANYBODY, WITHOUT A WRITTEN CONTRACT. THAT IS CODIFIED IN THIS. THIS MIGHT ACTUALLY BE A CLARIFICATION THAT WE'VE PUT IN. BUT WHAT WE WANT IS, WE WANT TO KNOW THE DOUBLE AMOUNT, WHY WE'RE SENDING IT TO YOU, AND OUR RIGHT TO AUDIT. TO ME, IT WAS NOT SOMETHING THAT SHOULD HAVE BEEN THE SUBJECT OF A TIFF, BUT HERE WE ARE. >> THAT'S ONE OF THE REASONS THAT WE APPROVED THE PARK BOARD BUDGET. ANY FURTHER QUESTIONS ON THIS? ANY QUESTIONS FROM [INAUDIBLE]? THANK YOU VERY MUCH. YOU'LL HAVE THIS TO US IN JULY ON OUR AGENDA. VERY GOOD. >> I'M GOING TO ADD SOMETHING ON THE BINGO TAX. >> ON THE WHAT TAX? >> I'M TO ADD AN EXEMPTION IN THE BINGO TAX. I'LL FIGURE THAT OUT. >> IT SOUND LIKE YOU SAID BIG O TAX. IT'S LIKE, WHAT'S A BIG O? >> THREE MONTHS, SIX MONTHS? >> WHAT DO YOU THINK? >> IF YOU'RE OPERATE I THINK THREE. IF YOU'RE RUNNING A THREE MONTH BINGO SPECIAL. >> THE NONPROFITS, I THINK IT SHOULD ALWAYS BE EXEMPTED. BECAUSE I'VE BEEN INVOLVED IN SO MANY NONPROFITS AN THEY'RE AFRAID TO DO BINGOS. >> THERE'S SOMETHING IN THE BINGO LOGO, THOUGH, THERE HAS TO BE SOME ASSOCIATION WITH A NONPROFIT FOR ALL BINGO OPERATION, SO WE NEED TO BE CAREFUL ABOUT USING THAT AS THE LITMUS TEST ON IT. I THINK THE TIME FRAME, AS COUNCIL MEMBER THROW OUT POINTS OUT THAT MAY BE PRUDENT. >> BRING US SOMETHING BACK DAN ON WHAT YOUR RECOMMENDATION WOULD BE ON THAT. THAT SOUNDS GOOD. THANK YOU. [OVERLAPPING] >> APPRECIATE IT. >> IT'S BEEN A WHILE SINCE I SHARED A FESTIVAL. BUT I BELIEVE THERE'S SOME EXEMPTION IN THERE. I KNOW MOST OF THEM WERE TIED TO SOME CERTAIN PERCENTAGE. IT USED TO BE THAT WAY ANYWAY. I HAVEN'T DONE IT FOR A LONG TIME, BUT JUST MOVE DOWN TO CLARIFY. >> VERY GOOD. THANK YOU VERY MUCH. LET'S MOVE ON TO ITEM 3D, PLEASE. >> WE DID THAT. CAN WE JUST TAKE A SHORT BREAK? >> WE HAVE A REQUEST FOR A BREAK BY ALL MEANS. [BACKGROUND] >> IT IS 10:18 AM. WE ARE BACK INTO SESSION NOW. [01:10:02] WE HAVE TWO COUNCIL MEMBERS THAT ARE NOT PRESENT, SHOULD BE HERE VERY QUICKLY ON THIS. [BACKGROUND] >> DISCUSSION OF SHORT TERM RENTAL REGISTRATION. >> JUST A SECOND, BROWN. LET'S GIVE IT ABOUT JUST A COUPLE MORE MINUTES. IF THEY'RE NOT HERE, WE ARE STARTING WITHIN A MINUTE. [BACKGROUND] >> WHEN WE GO ON BREAKS AGAIN, WHAT WE'RE GOING TO DO IS ESTABLISH A TIME TO RETURN. PUBLIC KNOWS ALSO THAT WE'RE COMING BACK AT 10:15 [OVERLAPPING] >> THE PUBLIC IS VERY CONCERNED ABOUT OUR HEALTH WHEN YOU DON'T LET US HAVE BREAKS. >> WELL, EVEN WINSTON GETS TO GO OUT TWICE A DAY, MAYOR. [LAUGHTER] WE'LL DO TWICE A DAY, ONCE IN THE MORNING [LAUGHTER]. >> HERE'S JANELLE. >> HERE WE GO. >> I TURNED THE MIC'S ON. >> THERE'S SOME LACK OF TRUST ON MY PART TO BE ABLE TO DO THAT EFFECTIVELY. >> THE SCREEN IT'S ON. >> WE TURNED IT ON AN JANELLE. [OVERLAPPING]. >> ONCE IN A LIFETIME OPPORTUNITY, AND THEY KILLED IT. >> BROWN, WHEN WE READ THE ITEMS. [LAUGHTER] YOU READ ONE AND TWO. I WANT EVERYTHING READ ONE AND TWO ON 3D. >> 3D. DISCUSSION OF SHORT TERM RENTAL REGISTRATION. [3.D. Discussion Of Short Term Rental Registration] ONE, MANAGEMENT FEES, ASSOCIATED EXPENSES, AND RECOMMENDATIONS FOR THE FUTURE, AND TWO CONDOMINIUM FEE STRUCTURE. >> COUNCIL, TWO OR THREE MONTHS AGO, OUR PAST COUNSEL REQUESTED THAT FROM STAFF TO LOOK AT THE REGISTRATION FEE FOR SHORT TERM RENTALS, WHICH IS CURRENTLY $250 ANNUALLY, AND BRING BACK A RECOMMENDATIONS FOR US TO DISCUSS ON HOW THESE MONIES WOULD BE UTILIZED AND OF WHAT FORM THEY WOULD BE UTILIZED. THIS ALSO BRINGS INTO PLAY DISCUSSIONS ABOUT THE ACTUAL FEE ITSELF, AND HOW THAT'S STRUCTURED. AS WE GO THROUGH THIS DISCUSSION, I WOULD LIKE FOR YOU TO KEEP IN MIND, NOT ONLY THE REVENUES THAT ARE GENERATED, BUT, THE EXPENSES THAT WOULD COME OUT OF THIS, SO THAT WE CAN LOOK AT EACH PARTICULAR EXPENSE. IT'S VERY IMPORTANT THAT WE'RE GOING TO SPEND SOME TIME ON THIS THIS MORNING BECAUSE STAFF NEEDS TO HAVE SOME DIRECTION HERE. THIS HAS BEEN HANGING OUT THERE FOR QUITE A WHILE, AND WE NEED TO GIVE THEM DIRECTION, TO BRING BACK TO US MORE FORMAL APPROACH TO HOW THESE FEES WOULD BE MANAGED AND HANDLED. DAN, YOU ARE LEADING THAT DISCUSSION, IS THAT CORRECT? I'LL START OFF AND THEN I'LL HAND IT OFF TO CHILA, AND THEN WE'LL HAVE A LOT OF FUN DISCUSSING. GOOD MORNING, MAYOR, COUNCIL. I GUESS I NEED TO IDENTIFY MYSELF. I'M DAN BUCKLEY. I'M THE DEPUTY CITY MANAGER. WHAT COUNCIL CHARGED US WITH WAS TO, NUMBER 1, BRING FINANCIAL INFORMATION TO YOU ABOUT WHAT WE WERE COLLECTING IN HOT REGISTRATION FEES, HOW IT WAS CURRENTLY BEING SPENT, AND WHAT KIND OF BALANCE WAS LEFT AFTER, AT THE END OF THE DAY THAT COULD BE SPENT TO, NUMBER 1, POTENTIALLY LOOK AT ISSUES THAT COST THE CITY AS A RESULT OF SHORT TERM RENTALS, AND OTHER SOURCES OR OTHER AVENUES OR WE COULD UTILIZE THE FUNDING. I GUESS THE FIRST PART WAS TO DETERMINE WHAT WAS COLLECTED, WE PUT TOGETHER A PRESENTATION FOR YOU GUYS. CHILA IS GOING TO GO OVER WITH YOU. BUT AT THE END OF THE DAY, THE DISCUSSION, ON THE STAFF LEVEL, HAS GONE AROUND THE FACT THAT THE WAY WE DO IT RIGHT NOW IS TERRIBLY INEFFICIENT. IT'S A CITY FEE. WE'RE HAVING SOMEBODY ELSE COLLECT IT, THEY COLLECT IT, THEY SPEND MONEY AND THEN THEY SEND MONEY BACK TO US, AND IT DOESN'T FUNCTION WELL. ONE OF THE RECOMMENDATIONS THAT WE'LL DISCUSS AFTER THIS AND WANT TO GET SOME DIRECTION FROM COUNCIL IS, THEN WE BRING THAT BACK TO THE CITY AND CITY SHOULD DO THE WHOLE PROCESS MUCH LIKE WE DO EVERYTHING ELSE. WHEN YOU SELL, BUY PERMITS AND OTHER FEES, CITY COLLECTS IT, WE MANAGE IT, WE HANDLE IT. LET'S, NUMBER 1, GET INTO THE FINANCIAL SO YOU CAN SEE THE KIND OF MONEY WE'RE TALKING ABOUT, AND WHAT'S COMING IN, HOW IT'S BEING SPENT, AND THEN WE'LL GET INTO SOME OF THE USES THAT WE'RE RECOMMENDING, AND THEN WE'LL WIDE OPEN TO OTHER USES THAT THE COUNCIL MAY HAVE THAT WE CAN GO OUT AND SEE HOW WE CAN IMPLEMENT THOSE. [01:15:04] BUT WE'RE TRULY LOOKING FOR GUIDANCE FROM COUNCIL ON WHERE WE GO FROM HERE. >> THANK YOU, DAN. CHILA >> GOOD MORNING AGAIN. CHILA LUDANI, FINANCE DIRECTOR. TO START WITH, I WANT TO MAKE YOU AWARE THAT AS PARK BOARD COLLECTS THESE REGISTRATION FEES FOR THE CITY, THEY REPORT TO US AT YEAR END. WE DO NOT HAVE NUMBERS FOR FISCAL YEAR '24. WE HAVE LAST YEAR'S NUMBERS FOR FISCAL YEAR '23, WHICH WE RECEIVED IN AUGUST OF LAST YEAR, AND THEN THE PARK BOARD DID A TRUE UP IN JANUARY. THERE'S A LAG WITH THE REPORTING AND THE RECEIPT OF THESE FUNDS. WHAT WAS BUDGETED FOR LAST YEAR WAS, 2,400 REGISTRATIONS WAS WHAT WAS ESTIMATED AT $250 A POP, AND IT'S NOT ENTIRELY ACCURATE, BECAUSE I THINK THERE WAS AT LEAST ONE REGISTRATION THAT WASN'T PAID AT 250 IN CASE ANYONE DOES THE MATH. IT WAS BEFORE THE ORDINANCE WAS IMPLEMENTED. BUT SO BASED ON THAT, WE AGREED WITH THE PARK BOARD THAT THEY GET $92 FOR THEIR COSTS ASSOCIATED WITH COLLECTIONS OF THAT 250, AND THE CITY GETS $158. YOU'LL SEE THE BUDGETED AMOUNTS THERE. THE ACTUAL COLLECTIONS THAT WERE TRUED UP IN JANUARY REFLECTED 4,747 REGISTRATIONS FOR TOTAL COLLECTIONS OF 1,186,550, AND YOU'LL SEE THE SPLIT THERE BETWEEN THE PARK BOARD AND THE CITY. WHAT THAT MEANS IS, THE INCREASE OVER WHAT WAS BUDGETED WAS ABOUT $86,750 IN TOTAL COLLECTIONS, AND THAT WAS SPLIT ACCORDING TO THE SAME RATIOS. OF THIS, THE PARK BOARD BUDGET FOR '23, THE ACTUALS YOU'LL SEE THERE IS $466,000 A LITTLE OVER THAT, AND THIS INCLUDES THEIR PERSONNEL EXPENSE IN '23, THEIR SOFTWARE EXPENSE, AND VARIOUS OTHER THINGS. TELEPHONES, AUDITS, WHICH IS THE AUDITS THAT WE DO HERE AT THE CITY THEY PAY, OUR CITY AUDITOR FOR THOSE, THAT SORT OF THING. THEIR BUDGET DECREASED IN '24 BECAUSE THEY DECREASED THE NUMBER OF STAFF MEMBERS ASSOCIATED WITH THIS, SO IT WENT DOWN TO 401,000. YOU'LL SEE THAT ON THE CITY SIDE, WE HAD NO ACTIVITY LAST YEAR ON OUR PORTION, AND SO THAT CARRIED FORWARD AND SO FOR THE '24 BUDGET, WE'VE ALSO NOT HAD ANY ACTIVITY SO FAR, BECAUSE WE HAVEN'T DECIDED WHAT WE'RE DOING, BUT IT'S A DOUBLING, INCLUDING THE FUND BALANCE FROM FISCAL YEAR '23 ROLLED INTO AVAILABILITY FOR FISCAL YEAR '24. THAT IS WHY IT IS 1.3 MILLION DOLLAR. YOU'LL SEE THAT FOR '23, THE PARK BOARD HAD A DEFICIT, MEANING, THE AMOUNT OF REVENUE AVAILABLE TO THEM BASED ON THAT CALCULATION WAS 436,000, AND THEY SPENT MORE THAN THAT BY ABOUT $30,000, BASICALLY. >> CAN I ASK A QUESTION? WHAT WAS THE PERSONNEL EXPENSE THAT IT WAS 115,000? >> LAST YEAR, THEY HAD TWO STAFF MEMBERS. ONE OF THEM MAY HAVE BEEN PART TIME, BUT THERE'S ONE PERSON WHO IS THE PRIMARY FOR ALL OF THE SHORT TERM RENTALS. THEN SHE HAD AN ASSISTANT. THIS YEAR, THERE IS NO SECOND POSITION SUPPORTING HER. THAT'S MY UNDERSTANDING. >> OF COURSE, AS WE GET INTO THE DISCUSSION, MOVE THAT FUNCTION HERE, WE'LL HAVE PERSONNEL EXPENSES. >> ABSOLUTELY. WE'LL SEE THAT IN JUST A MOMENT. IF THE CITY WERE TO TAKE BACK THIS REGISTRATION PROCESS, AND THIS IS BASED ON THE ESTIMATES FROM '23, AND THEN THE '24 BUDGET THAT THEY'VE SUBMITTED AND WERE APPROVED FOR, THE CITY WOULD ABSORB THOSE EXPENSES RELATED TO COLLECTIONS, PERSONNEL, SOFTWARE, AUDITS, ETC, FOR ABOUT $401,000, AND THE CITY WOULD REGAIN ALL THE REVENUE, WHICH IS THE ONE POINT ALMOST $2,000,000 WHICH WAS RECEIVED IN '23. THE REMAINDER OF THAT MONEY WOULD BE AVAILABLE FOR ENFORCEMENT ACTIVITIES. THAT'S CORRECT TODAY AS WELL, BUT THAT'S WHAT THE ANNUAL RECURRING REVENUE IS PROJECTED AT FOR AVAILABILITY FOR ENFORCEMENT. >> WHERE IS THE COST CAPTURE IN THIS FOR THE HOTLINE? >> THE HOTLINE CURRENTLY IS PART OF THE SOFTWARE CONTRACT. THE STR HOTLINE IS RUN BY THE SOFTWARE COMPANY, OR IT'S THROUGH THAT CONTRACT THAT THE PARK BOARD HAS FOR THE SOFTWARE. [OVERLAPPING] >> I DON'T HAVE ANY DETAILS OF IT, BUT I WOULD BET IT'S A SHARE. >> IT'S A SERIOUS DISCONNECT. AND WHICH WAY DOES [OVERLAPPING] [LAUGHTER] >> THERE ARE POTENTIAL THERE ARE POTENTIAL PROCESS IMPROVEMENTS THAT HAVE ALREADY BEEN RAISED, SUCH AS, THE ORDINANCE MIGHT NEED TO BE UPDATED TO REQUIRE A REGISTRATION CONTACT THAT CAN RESPOND TO ENFORCEMENT CONCERNS WITHIN AN HOUR, AND POTENTIALLY PENALTY INCURRED IF THERE IS NO RESPONSE. THIS IS ON THE PART OF THE OPERATOR. ADDITIONALLY, THE ITEMS DISCUSSED AS POTENTIALLY BEING REIMBURSABLE ENFORCEMENT ACTIVITIES FOR THE CITY, WOULD BE ENFORCING PARKING REQUIREMENTS, ENFORCING THE NOISE ORDINANCE, [01:20:01] AND ENFORCING THE TRASH ORDINANCES. WE FEEL THOSE ACTIVITIES ON PART OF THE CITY COULD BE REIMBURSABLE BY THIS FEE. >> I HAVE A QUITE GO AHEAD. I'LL GO AHEAD TO YOU. >> THE HOTLINE IS GOING TO REQUIRE SOME ADMINISTERING IN ORDER TO BE ABLE TO ACKNOWLEDGE THOSE THINGS THAT WOULD HAVE AN IMPORTANT PROBLEM. THERE'S GOING TO BE SOME ADMINISTRATION SERVICES FEES WITH THAT. IS THAT JUST INCLUDED? >> I'M GOING TO DISCUSS IT ON THE NEXT SLIDE, I THINK. >> THIS HAS TO DO WITH SHORT-TERM RENTALS, AND IT HAS TO DO WITH CONSIDERATION OF HOT TAX. WHY WOULDN'T ENFORCEMENT BE COVERED BY HOT TAX? >> WELL, IT COULD BE, BUT ESSENTIALLY WHAT WE'RE DISCUSSING IS THE CITY RECEIVES A PORTION OF THIS REGISTRATION FEE, AND CURRENTLY COUNCIL HAS NOT DESIGNATED WHAT TO USE THAT 7-$800,000 FOR. POTENTIALLY, ITEMS THAT AREN'T HOT REIMBURSABLE, BUT ARE RELATED TO SHORT TERM RENTAL ITEMS WOULD BE WHAT THIS 7-$800,000 WOULD BE APPROPRIATELY USED FOR. THAT'S WHAT WE'RE DISCUSSING. >> THERE IS A PRETTY STEEP HILL TO CLIMB TO USE THAT HOT. >> IT IS. IN THE 7-800,000, AS WE'RE TALKING, THIS IS UNRESTRICTED MONIES. THESE ARE MONIES THAT DO NOT FALL UNDER THE HOT CRITERIA. >> OTHER POTENTIAL USES THAT WE'VE DISCUSSED IS THE ONGOING FUNDING OBVIOUSLY OF THE EXISTING ADMINISTRATIVE PROCESS. BUT AS YOU MENTIONED, THE CALL CENTER AS IT CURRENTLY FUNCTIONS OR DOESN'T FUNCTION, IS A QUESTION THAT WE WANT TO ADDRESS. THERE'S ALSO A CALL CENTER INITIATIVE WITH THE CITY CURRENTLY GOING ON, AND THERE'S POTENTIAL THAT WE WOULD BRING THAT IN HOUSE WITH THE EXISTING CALL CENTER THAT IS BEING STARTED AS WE SPEAK. ADDITIONALLY, THE CITY MARSHAL STR CODE ENFORCEMENT PROGRAM, WHATEVER THAT MAY LOOK LIKE, WE'RE PROVIDING YOU WITH ONE OPTION, AND THIS IS JUST A SHOT IN THE DARK. BUT TO HAVE TWO MARSHALS AVAILABLE THURSDAY THROUGH MONDAY FOR 10-HOUR SHIFTS PROBABLY IN THE EVENINGS, AND WE'RE SAYING THAT WOULD BE ABOUT 168,000 AND RECURRING PERSONNEL COSTS, APPROXIMATELY $100,000 ONE TIME TO STAND THAT UP. BUT THAT'S JUST ONE OPTION. >> I'M GLAD YOU SAID IN THE EVENING, BUT REALLY THE PROBLEMS HAPPEN OVERNIGHT AND THAT'S THE BIGGER ISSUE. >> THE 10-HOUR SHIFTS ARE GOING TO GO INTO THE EARLY MORNING HOURS. WE CAN FLEX THE TIME AND PUT THE STAFF. THERE'LL BE 10 HOURS, BUT IT'LL BE A VARIABLE 10 HOURS DEPENDING ON WHAT THEY DO. [OVERLAPPING] YEAH. >> IT SHOULD BE COVERED LIKE FRIDAY THROUGH MONDAY. >> THAT'S WHAT WE'RE TALKING ABOUT. >> OVERNIGHT. >> FRIDAY THROUGH MONDAY. THEN YOU CAN WORK UNTIL THERE'S VERY LITTLE ACTIVITY FROM, 3:00-6:00 A.M. OR REALLY FROM 3:00-11:00 A.M. YOU'RE GOING TO VARY THE HOURS AND PUT IT WHERE YOU HAVE THE MOST ACTIVITY. THAT'S ALL INFORMATION WE HAVE SO YOU CAN STAFF IT THAT WAY. >> ARE WE SAYING THAT WE'RE PAYING EACH OFFICER 84,000 OR IS THAT FOR THE PROGRAM? >> THAT'S WITH SALARY AND BENEFITS. THE AVERAGE SALARY RIGHT NOW FOR CITY MARSHALS IS ABOUT 60,000 GIVE OR TAKE, AND SO THAT 168 INCLUDES THE SALARY AND BENEFITS AS WELL AS THE SALARY FOR TWO MARSHALS. >> I WANT TO HEAR [OVERLAPPING] >> WHAT'S THAT TOTAL 84,000? >> THAT'S JUST AN ESTIMATE. WE'RE GIVING YOU ROUND NUMBERS FOR A POTENTIAL PROGRAM. WE CAN OBVIOUSLY GET INTO MORE DETAIL WHEN COUNCIL DECIDES. >> [INAUDIBLE] SESSION. >> YES. ALSO POTENTIALLY, THERE COULD BE A ROOM FOR POLICE AND FIRE RESPONSE REIMBURSEMENT. I'M NOT SURE WHAT THAT WOULD LOOK LIKE. ALSO, THE FUNDING COULD BE USED FOR POTENTIAL DATA ANALYSIS TO BETTER QUANTIFY THE LINKS BETWEEN TOURISM AND PUBLIC SAFETY EXPENSES. THIS MIGHT BE A FUNDING SOURCE THAT ALLOWS COUNCIL TAKE FOR THAT. >> WE THINK THAT'S A BIG ITEM. >> WE HAVE TWO QUESTIONS, COUNCILMAN PORRETTO. >> CITY CALLED DISPATCH REIMBURSEMENT. WHAT'S THE COMPANY THAT THE PARK BOARDER WE'RE GOING TO USE? WHAT'S THE COMPANY? >> WE WOULD DO IT OURSELVES. >> YEAH, BUT WHO'S THE VENDOR? >> THE VENDOR FOR THE PARK BOARD SOFTWARE [OVERLAPPING] >> I CAN'T REMEMBER THE NAME. >> [OVERLAPPING] I GUESS THIS WOULD FALL INTO MARSHALL'S DISPATCH OR POLICE DISPATCH? >> IT WOULD FALL INTO THE PUBLIC WORKS DISPATCH SYSTEM. >> WELL, IT'S A CITYWIDE. [01:25:02] >> WE'RE DOING THE CITYWIDE CALL CENTER. >> IT'S GOING TO HANDLE SHORT TERM RENTAL CALLS, IT'S GOING TO HANDLE? [OVERLAPPING] LIKE A 311? >> VERY MUCH LIKE. >> VERY MUCH LIKE 311 WITHOUT THE THREE AND THE ONE >> [OVERLAPPING] AND THE ONE. [LAUGHTER] WHY COULDN'T WE COME UP WITH SOMETHING LIKE THAT? >> WE CAN. THE ISSUE IS HAVING A CELL PHONES DOWN DEPENDS ON WHAT TOWER THEY'RE AT. IF THEY'RE ON THE WEST END OF THE ISLAND, THEY MAY HIT A TOWER ON THE MAINLAND. IF THEY'RE NEAR THE CAUSA, THEY MAY HIT A MAINLAND TOWER AND YOU DON'T KNOW WHERE THE 311 CALLS GOING TO GO. >> BUT WHAT IF WE DID A 131, LIKE WE MADE UP A [OVERLAPPING] >> WHAT I'M SAYING IS WE BOUND. >> WHAT MUNICIPALITY DOES [OVERLAPPING] >> WE'RE GOING TO RESEARCH EVERY POSSIBILITY OF WAY TO DO IT AND MAKE IT EASY. THERE'S A LOT OF SOFTWARE APPLICATIONS OUT THERE THAT PROVIDE FOR THIS TYPE OF THING. WE HAVEN'T WITH THE LACK OF DIRECTION FROM COUNCIL ON THIS, WE DON'T REALLY KNOW WHERE TO GO ON WHAT YOU ALL WANT, BUT BRIAN HAS ALREADY MANDATED WE STAND AT THE CALL CENTER. IT'S HAPPENING. THIS IS GOING TO BE THE PERFECT PART OF THIS. I CAN SHARE WITH YOU THAT WE'RE LOOKING AT SWITCHING OUR PAY BY PHONE APPLICATION TO ANOTHER VENDOR AND THAT VENDOR HAS ITS OWN HOTLINE. >> I DON'T KNOW IF YOU CAN TALK ABOUT WHAT'S THE VENDOR. >> CAN'T TELL. >> DAVID, YOU HAD A SHOT. >> YEAH. ON THAT LAST ITEM, AND THEN I'VE GOT ONE ON THE OTHER ONE TOO. DATA ANALYSIS. WHEN WE STARTED DOING A LOT OF RESEARCH ON THIS AND MARIE WAS INVOLVED WITH THIS AS WELL. I ASKED THE ASSISTANT CHIEF FOR SOME PRELIMINARY INFORMATION, AND THE DATA IS REALLY EASY TO PULL BECAUSE YOU PULL IT BY ZIP, IT'S INCIDENT BY ZIP CODE. THEN ALL YOU DO IS YOU'RE FINDING OUT WHETHER THEY'RE RESIDENTS OR NOT RESIDENTS, WHICH YOU EITHER NON RESIDENT OR TOURISTS OR WHATEVER. THE PRELIMINARY INFORMATION THAT CAME BACK WAS THAT 80 PERCENT OF CRIMES OR INCIDENCES THAT ARE OCCURRING ON OUR ISLAND ARE BEING OCCURRED BY NON RESIDENTS. I THINK THIS IS A VERY APPROPRIATE USE TO CONTINUE THAT DATA ANALYSIS SO THAT THAT INFORMS HOW WE SET OUR BUDGET. THEN THE OTHER THING THAT I WANTED TO SAY IS THAT THE WHOLE IDEA BEHIND THIS IN HOUSE OPTION AND TALKING WITH BRIAN OF HAVING A CONSOLIDATED CALL CENTER IS A REALLY GREAT OPPORTUNITY FOR EFFICIENCY BECAUSE RIGHT NOW IF YOU THINK ABOUT IT, WE'VE GOT ONE SYSTEM THE CITY'S PAYING FOR IT, WE'RE PAYING FOR IT WITH THE PARK BOARD. THEY'RE USING IT FOR A SOLE PURPOSE, BUT IF WE CAN PULL THAT BACK TO THE CITY AND HAVE THAT UNDERNEATH ONE UMBRELLA, THEN IT HELPS TO FURTHER REDUCE COSTS ASSOCIATED WITH ADMINISTRATION OF AN STR PROGRAM. >> I'D LIKE TO DESCRIBE THE CURRENT SYSTEM AS AN EXAMPLE OF MOTORCYCLE WEEKEND WHEN I ASKED THEM HOW MANY CALLS THAT THEY HAVE BLADE AND THEY SAID 30. I SAID THAT'S INTERESTING BECAUSE I HAD 100. GRANTED, I WAS EXAGGERATING AT 100. BUT [OVERLAPPING] >> YOU DO GET OUT YOUR PHONE NUMBER. [LAUGHTER] >> NO. BUT THERE'S A DISCONNECT THERE. IS IT WORKING? >> I DON'T KNOW IF THIS IS OUTSIDE OF THE SCOPE OF THE WORKSHOP ITEM, BUT IF WE'RE WRITING A TICKET, WE'RE NOT WRITING IT TO THE OPERATOR, WE'RE WRITING IT TO THE PARTY THAT IS OWNER. COMMITTING THE VIOLATION DEPENDS ON YOUR ORDINANCE. >> SOMEHOW DON HAS TALKED ABOUT HOW WE DO THE STR REGISTRATION. IS IT A LICENSE, IS IT A REGISTRATION? WHAT IS IT? IF YOU'RE THE LICENSE HOLDER, THEN THE LICENSE HOLDER MIGHT BE ABLE TO BE CITED BY ORDINANCE FOR VIOLATIONS OF THE ORDINANCE. IT ALL DEPENDS ON HOW THINGS ARE DONE AT YOUR LEVEL AND WHEN WE WRITE THE RULES. >> IN SOME CASES, IT COULD BE BOTH. >> CERTAINLY COULD BE. >> BECAUSE LIKE AN INSTANCE WOULD BE TRASH AND LET'S SAY WE MAKE A MINIMUM FOR A SHORT TERM RENTAL, THEY HAVE TO HAVE FOUR TRASH CANS, AND THE PROPERTY OWNER ONLY PROVIDES TWO. BUT THE OTHER PERSON JUST SCATTERS THE TRASH. THEY COULD BOTH BE. >> WE HAVE AN ORDINANCE NOW, COUNCIL MEMBER, THAT SAYS YOU'RE NOT SUPPOSED TO PUT YOUR TRASH CAN UP TILL X NUMBER OF HOURS BEFORE YOUR TRASH IS PICKED UP, IT HAS TO BE TAKEN IN BETWEEN X NUMBER OF HOURS AFTERWARDS, WHICH IS ENFORCEABLE RIGHT NOW. A LOT OF SHORT TERM RENTAL PEOPLE, GOOD OPERATORS, THEY HAVE COMPANIES THAT COME TAKE THE CANS IN AND PUT THEM UP. SOME OF THE OTHERS DON'T. YOU'LL SEE CANS STAY OUT FOR DAYS AFTER THE TRASH OR THEY GO OUT A MINUTE [OVERLAPPING] >> OR THEY NEVER GET PUT OUT. >> I HAVE 20,600 OF THE SHORT [OVERLAPPING] >> I WANT TO GET SOME POINTS OUT AND THEN WE'RE GOING TO COME SHARING JUST A SECOND HERE, BUT I WANT TO BRING US BACK TO THE DISCUSSION HERE. I WANT TO TALK ABOUT THE $250 ANNUAL FEE. WHEN COUNCIL ESTABLISHED THAT, THAT WAS NOT ETCHED IN STONE. I WANT TO BRING THAT FORWARD. COUNCIL ESTABLISHED THAT BASED UPON COMPARISON TO OTHER CITIES AND THINGS LIKE THAT, THERE WERE RECOMMENDATIONS FOR A LOT HIGHER REGISTRATION FEE AND A LOT LOWER. WE SETTLED IN AT 250 KNOWING WHEN WE GOT MORE DATA THAT WE WOULD COME BACK AND THEN REEVALUATE THAT REGISTRATION FEE. [01:30:05] THE SECOND THING IS THE DATA ITSELF. WE DON'T, AND CORRECT ME IF I'M WRONG, I THINK DAVID FINKLEA HAS BEEN LOOKING INTO THIS QUITE CLOSELY AND OTHER PEOPLE. I'M NOT SURE WE ACTUALLY KNOW WHAT OUR PROBLEMS ARE OUT THERE. >> WELL, WE DO. >> WELL, LET ME JUST FINISH. WE DON'T EXACTLY KNOW HOW MANY BAD ACTORS ARE OUT THERE. WE ESTABLISH A PROGRAM WHERE WE HAVE A MARSHAL HERE THAT'S WORKING THROUGHOUT THE WEEKENDS AND ALL NIGHT, AND MAYBE IT'S FIVE UNITS THAT ARE GIVING US ALL THE PROBLEMS. NOW, WE DON'T KNOW THAT YET. THAT'S SOMETHING THAT I THINK IS VERY IMPORTANT TO GET THIS DATA SO THAT WE KNOW WHAT WE'RE ACTUALLY ADDRESSING HERE. WE DON'T WANT TO DO AN OVERKILL, BUT WE DON'T WANT TO DO AN UNDERKILL ON THIS. IT'S SOMETHING THAT WE REALLY NEED TO GET THE DATA TO MAKE SURE WE KNOW WHAT WE'RE ADDRESSING HERE. >> SHARON KNOWS THAT. >> SHARON, GO RIGHT AHEAD. >> I NEED A CLARIFICATION ON THE HOT TAX THAT WAS COLLECTED. I THOUGHT I HEARD MARIE ASK A QUESTION ABOUT ENFORCEMENT. I THOUGHT I UNDERSTOOD THE MAYOR TO SAY THAT WE CAN'T SEE THAT ENFORCEMENT WITH THESE TAX. >> IT'S DIFFICULT. >> OKAY [OVERLAPPING] >> WELL WITH THE HOT TAX, BUT WITH THESE, WE CAN WITH REGISTRATION FEES. >> WITH THE REGISTRATION FEE, YOU CAN. THAT'S WHERE THE FUNDS FOR THE OFFICERS IS COMING FROM. >> YES, MA'AM. >> OKAY. >> YOU'RE NOT YET. >> IT'S NOT THERE NOW, BUT IT COULD COME FROM REGISTRATION FEES, COULD ALSO COME FROM FINES. REMEMBER, OUR BEST WAY TO CURTAIL SOMETHING WE DON'T WANT TO SEE IS TO ENFORCEMENT. AFTER ENFORCEMENT, IF YOU DON'T WRITE TICKETS, YOU DON'T COLLECT FINES. >> BUT THE PROBLEM FUNDING THROUGH FINES IS THAT THERE'S AN UPTICK IN FINES, AND ONCE YOU DO ENFORCEMENT, THE FINES TRICKLE OFF. IF YOU STOP DOING ENFORCEMENT, THEN THE PROBLEM COMES BACK. FINES ARE NOT A GOOD LEVEL OF FUNDING SOURCE FOR ISSUES LIKE THIS. THERE ARE A BETTER LEVEL FUNDING SOURCE FOR THINGS THAT HAVE HIGH TURNOVER LIKE PARKING AND THINGS LIKE THAT. BECAUSE THEN THERE'S AN AVERAGE FINE WITH THESE THERE'S GOING TO BE AN UPTICK IN FINES, EVERYBODY BECOMES INTO COMPLIANCE AND WHEN THEY REALIZE WE'RE NOT ENFORCING BECAUSE WE DON'T HAVE FINE MONEY TO PAY THEM, THEN IT RUNS BACK UP. AGAIN, YOU TRY TO AVOID THESE THINGS BY HAVING A LEVEL ENFORCEMENT BUDGET. >> I HAVE TO DO THE ENFORCEMENT. >> YOU HAVE TO DO THE ENFORCEMENT. >> THE SECOND QUESTION CAME TO THE DATA THAT YOU WERE SAYING 80 PERCENT. IS IT BROKEN DOWN INTO WHAT ARE THEY DOING? >> NO. I DID NOT GET IT BY ACTIVITY. IT WAS JUST A GLOBAL NUMBER. THAT'S WHY I SAID HAVING THIS DATA COLLECTION OR DATA ANALYSIS AS PART OF THE STR, REGISTRATION FEE WOULD BE A GOOD THING TO DO. >> THE ANALYSIS IS KEY BECAUSE THE DATA YOU GOT SHOWS PEOPLE THAT LIVE AND OTHER ADDRESSES. WELL, MANY OF THOSE ARE PROPERTY OWNERS HERE THAT HAVE SECOND HOMES. YOU HAVE TO BE ABLE TO WORK THROUGH. WHAT ARE THE TOURISTS THAT COME HERE? HOW MANY ARE SECOND HOMEOWNERS? HOW MANY PEOPLE ARE TRANSIENT HERE FOR SOME TIME VERSUS A TOURIST. THE ANALYSIS OF THE DATA IS KEY. THE BETTER AND MORE REFINED WE CAN MAKE THE ASSESSMENT, THE BETTER INFORMATION. >> I THINK WHAT YOU'RE GOING TO FIND IS THAT IT'S A SMALL PERCENTAGE THAT ARE BAD ACTORS. [OVERLAPPING] HOPEFULLY, LONG TERM WITH GOOD STRONG CONSISTENT ENFORCEMENT, YOUR BAD ACTORS LEAVE THE MARKET. >> [OVERLAPPING] SHARON FINISH, THEN WE HAD ALEX AND THEN MARIE AND THEN DAVID. >> I THINK IT WOULD COME BACK TO WHAT YOU JUST SAID AND MIGHT BE THE REPEAT LOCATIONS WITH ACTIVITIES POSSIBLY. I THINK THAT'S WHAT YOU STATED, IT COULD BE THAT BECAUSE ACTORS WILL DO WHAT THEY ARE. IF THEY FIND THAT ENVIRONMENT OKAY, THEN THEY'LL KEEP REPEATING ACTS. WHERE ELSE IF THEY KNOW THAT THIS IS SHORT TERM RENTAL, THIS IS NOT ALLOWED, THEN THEY WON'T. I'M THINKING WHAT YOU SAID THAT POSSIBLY. >> REVOCATION OF LICENSE WOULD WOULD BE AN OPTION, BUT REVOCATION OF LICENSE CREATES A WHOLE ANOTHER LEVEL OF ENFORCEMENT AS WELL BECAUSE ME SAYING YOU DON'T HAVE A LICENSE TO OPERATE ANYMORE AND YOU STILL OPERATING OR TWO SEPARATE THINGS, THEN THERE'S GOING TO BE AN ENFORCEMENT COMPONENT. >> YOU TAKE THAT LICENSE, THAT REALLY UNDERMINES THE LIVELIHOOD OF THOSE INDIVIDUALS OWNING THAT PROPERTY. >> BUT IF WE DON'T HAVE AN ENFORCEMENT MECHANISM ONCE YOU REVOKE THE LICENSE, DOES THAT [OVERLAPPING] >> NO, YOU'RE EXACTLY RIGHT. >> COUNCIL MAY RULE THAT COST. >> YES, SIR. I AGREE. >> THIS DATA ANALYSIS, I GUESS THAT'S THE UPHILL BATTLE IS FINDING EXACTLY BECAUSE IF IT IS A BIGGER PROBLEM, THEN WE ALL REALIZE, THEN WE CAN PROBABLY GET SOME HOT TAX EXPENDITURES FOR PUBLIC SAFETY. [01:35:01] >> THAT'S A PART OF THE ARGUMENT. >> MAYBE. >> BUT REALLY IT'S A LOT OF THE ARGUMENT. >> IT IS A BIGGER PROBLEM. WE WOULD HAVE A STRONGER CASE AND IT WOULD BE LESS OF AN UPSET. >> ABSOLUTELY. WE'RE TRYING TO BUILD THAT DATASET NOW OF TOURIST RELATED POLICE CALLS, TOURIST RELATED EMS CALLS, TOURIST RELATED MARSHAL CALLS, AND THE MORE DATA WE HAVE THE MORE INFORMATION WE CAN USE TO MAKE DETERMINATIONS. >> I AGREE WITH YOU, THE MORE DATA WE COLLECT, BUT I CAN HAND OVER TO A SIGNIFICANT AMOUNT OF DATA WITH ADDRESSES THAT ARE PLAYERS. AS A PERSON WHO DEALS WITH THIS EACH AND EVERY WEEKEND, I HAVE ADDRESSES, I HAVE INFORMATION, I HAVE A LOT OF DATA I CAN GIVE YOU TO START WITH BECAUSE IF THIS YEAR SO FAR HAS BEEN THE WORST YEAR IN MY DISTRICT FOR SHORT TERM RENTALS. ALL I KEEP SAYING IS, GOD, IT'S GOING TO BE A LONG SUMMER IF WE'RE ONLY THIS SHORT INTO IT AND IT DOESN'T REALLY START UNTIL FOURTH OF JULY BEFORE [OVERLAPPING] >> LET ME FINISH. THAT GOES PRECISELY TO THE POINT. THERE ARE ACTIVITIES IN SHORT TERM RENTALS. SOMETIMES GOEM IS CALLED. SOMETIMES APD IS CALLED. SOMETIMES YOU ARE CALLED. [OVERLAPPING] SOMETIMES THE COMPLAINT LINE IS CALLED, IF YOU'VE EVER DEALT WITH THAT. IT'S LESS THAN SATISFYING BUT YOU HAVE ALL THESE >> WE DON'T HAVE AT THIS POINT, A WAY TO BOIL IT DOWN TO A SINGLE PLACE SO IT CAN BE AND THAT IS A HUGE PROBLEM. >> YEAH. CLARIFY ON ENFORCEMENT. >> WE'RE TALKING ABOUT ENFORCEMENT OF CITY CODES AND ORDINANCES. >> I AGREE. >> WE'RE NOT AND SHALL NOT ENFORCE HOUSE RULES. A LOT OF THESE CALLS THAT COME IN ARE ASKING FOR ENFORCEMENT OF HOUSE. >> NOISE, TRASH, LARGE PARTIES PARTS ISSUES, BUT SAYING THAT'S THE KIND OF THING I HAVE. >> THE FACT THAT THERE'S TOO MANY PEOPLE. >> IN THE HOUSE OVER THE LEASE AMOUNT OR WE WOULD LIKE TO EVICT THESE PEOPLE FOR WHATEVER REASON, FOR NON-PAYMENT ORE, THOSE ARE HOUSE RULES. WE SHALL NOT BE INVOLVED IN. >> I UNDERSTAND THAT EXPLICITLY. >> DAVID, YOU HAD A COME-IN. TOOK MY THUNDER. SO THANK YOU. I MEAN, THAT'S OKAY. TO DAN'S POINT, I MEAN, WE'RE TALKING ABOUT YOU'RE LOOKING AT THE DATA COLLECTION ASSOCIATED WITH NON-RESIDENTS OR TOURISM. HERE WE'RE ALSO TRYING TO IMPROVE THE DATA COLLECTION QUALITY ON SHORT-TERM RENTALS. I THINK WHAT HAS BEEN BROUGHT FORWARD IS A STEP IN THE RIGHT DIRECTION. IT'S NOT A PANACEA, AND IT'S NOT A ONE-DONE THING. TO DAN'S POINT, THE IDEA BEHIND MAKING SURE THAT WE GET THOSE VARIOUS DATA COLLECTION POINTS, THOSE OTHER PRIVATE GROUPS OR CONTRACT GROUPS IS REALLY KEY AS WELL. THANK YOU, DON. >> MOST OF THESE VIOLATIONS AND I'M GOING TO AND DAVID CAN GUIDE ME. I'M OWED AND HAD BEEN IN THE REPRESENTATIVE FOR DISTRICT 2 IN ABOUT FIVE, SIX YEARS. I'M JUST TELLING YOU WHAT I SAW WHEN I WAS IN DISTRICT 2. WE DIDN'T HAVE THAT MANY PROBLEMS WITH SHORT-TERM RENTALS. >> WE DIDN'T HAVE THAT MANY SHORT TERM. WE HAVE A LOT. >> WE HAVE A TON OF. >> THE NUMBER OF SHORT-TERM RENTALS IS DROPPING EVERY YEAR. IF YOU'LL NOTICE, THE NUMBER OF SHORT-TERM RENTALS THEY'RE PREDICTING PROBABLY DROPPED THREE, 400 THIS YEAR. MAYBE. >> WELL, I DON'T KNOW. LAST YEAR IT WENT UP. I DON'T HAVE NUMBERS FOR THIS YEAR, BUT IT WENT UP TO THE 4,700, I BELIEVE. >> IT'S BE TALKING TO THE REALTORS, THESE SHORT-TERM RENTALS ARE SELLING. MOVING INTO LONG-TERM RENTALS OR SINGLE-FAMILY HOMES. >> MITRI 2, NOT IN DISTRICT 6. >> WELL, LET ME JUST FINISH, MARIE. THAT'S HAPPENING THROUGHOUT THE COMMUNITY. IT MAY NOT BE HAPPENING IN DISTRICT 6, BUT IT'S HAPPENING THROUGHOUT THE COMMUNITY AND OTHER DISTRICTS ON THIS. >> DISTRICT 5 WAS DOING WHEN THAT HAD A LOT OF GROWTH. >> IN SHORT-TERM RENTALS? THAT WAS PARK PORT DATA FROM THIS YEAR. >> THAT'S GOOD TO KNOW. WE HAVE MOST OF THE CONCERNS WITH SHORT-TERM RENTALS, WE ALREADY HAVE THINGS ON THE BOOK TO ENFORCE THAT. WE JUST DON'T REINFORCE IT. BUT WE HAVE THE RULES AND REGULATIONS ON THE BOOKS ALREADY. MY QUESTION I HAVE TWO QUESTIONS FOR STAFF ON THIS. NUMBER 1, IF WE TOOK OVER THE CALL CENTER, [01:40:03] IF WE TOOK OVER THE REGISTRATION PROCESS, THE PERSONNEL THAT'S INVOLVED WITH THAT. IF WE HAD A WEEKEND MARSHAL THAT WAS AVAILABLE TO HANDLE CALLS OF DISTURBANCES FOR SHORT-TERM RENTALS, HOW MUCH IS THE TOTAL BUDGET FOR THAT? >> WE ACTUALLY WENT UP THERE. MY IT'S $168,000 PLUS OR MINUS. I'M SORRY, I DIDN'T READ. I WILL TELL YOU SOMETHING WE WERE A MISSING WE DIDN'T DISCUSS IS ONE OF THE BIGGEST COMPLAINTS WE GET PARKING. BIGGER IT WOULD COME UP BECAUSE WE'VE HEARD ABOUT IT FROM MOST OF YOU AND WE HEAR ABOUT IT ALL THE TIME IS YOU HAVE SHORT-TERM RENTALS TAKING UP THE ENTIRE BLOCK OR SOMETIMES MORE THAN A BLOCK OF PARKING FOR ONE RESIDENCE. THAT IS ONE OF THE BIGGEST ISSUES THAT WE HAVE TO DO. >> THAT'S SOMETHING YOU NEED TO ADDRESS IN AN ORDINANCE AS WELL RIGHT HERE. >> WE CAN DO THAT IN AN ORDINANCE. I WOULD SAY IN DISTRICT 2. WHEN I WAS THERE, THE PARKING THE MAJOR PARKING PROBLEMS I HAD WAS LONG-TERM RENTALS. THE MAIN PROBLEM I HAD WITH NUISANCE COMPLAINTS AND TRASH COMPLAINTS WAS LONG-TERM RENTALS, NOT SHORT-TERM RENTALS. >> ALEX? >> YES. ALEX. >> CAN WE GET STAFF TO GET WITH THE PARK BOARD TO GET THE EXACT NUMBERS BREAKDOWN BY DISTRICT FOR SHORT-TERM RENTALS? I WOULD APPRECIATE THAT. >> THAT'S CERTAINLY SOMETHING WE CAN APPRECIATE. >> I THINK I BACK WE HAD BRACE HIM ACTUALLY WE HAVE THAT INFORMATION ROUGH MARCH, BUT I ASKED HIM FOR AN UPDATE. BUT THE PARKING IDEA THAT WAS IN THIS HANDOUT, I THINK WOULD BE IMPOSSIBLE TO POLICE. HAVING ONE CAR, I MEAN, IT MAY BE A START. I MEAN, WHEN I READ THROUGH THIS, I WAS LIKE, TALK ABOUT SOMETHING THAT YOU'LL NEVER BE ABLE TO USE. >> WELL, IT GETS DOWN TO WHETHER WE DO REGISTRATION OR WHETHER WE DO LICENSING. BEFORE YOU CAN YOU HAVE TO HAVE LICENSE. >> YOU HAVE A PART THERE IS ONE PART OF TOWN THAT HAS A PARKING PLAN. WHEN A SHORT-TERM RENTAL IS REGISTERING, THERE IN WHATEVER PART OF TOWN THAT IS, THEY'RE SUPPOSED TO SUBMIT THEIR PARKING PLAN. THAT SEEMS LIKE A BETTER CONCEPT GLOBALLY THAN SAYING ONE CAR PER BEDROOM WITH DA DA DA. >> THAT'S NOT WHAT WE PROPOSING. >> OKAY. WELL, THAT'S WHAT'S IN THIS THING. IT SAYS ONE CAR PER BEDROOM WITH TWO PARTS. >> I DON'T EVEN THINK THESE CARS WILL FIT IN THE BEDROOM. >> WHAT DOCUMENT ARE YOU REFERENCING? >> ONE THAT WAS IN OUR PACKET. >> OUR PRESENTATION. >> NO, THAT'S DON. >> YOU'RE NOT THERE. DON'T THE BEAMS. >> WE'RE COMING TO THAT. BOB, YOU HAD A QUESTION. >> JUST A FEW COMMENTS. FIRST IS ON WHAT CRAIG HAS SAID ABOUT THE DECLINING NUMBER OVERALL OF THE STRS, TO ME IN MY MIND, THAT MAKES THIS THE PERFECT TIME TO MAKE THESE ADJUSTMENTS AND GET THIS THING LIKE WE REALLY WANTED BECAUSE IT WILL BE MORE EFFECTIVE THAT WAY IF WE HAVE MORE. THE OTHER THING IS, I GUESS YOUR ANALYSIS HERE IS BASED ON THE $250 REGISTRATION FEE THAT CORRECT SAYS. I GUESS WHAT WE'RE REALLY THINKING ABOUT HERE AND TRYING TO GET TO THE BOTTOM OF IS BEING ABLE TO COVER ALL OF OUR COSTS. TO ME, ONE OF THE HARDEST COSTS TO COVER IS, I UNDERSTAND THE CALL CENTER, THE TECHNOLOGY AND THE ACADEMIC WAYS THAT ARE NEEDED TO SET THAT UP, BUT REALLY THE HARD PART TO ME, IS GOING TO BE FIRST OF ALL, THE COMMUNICATION TO EVERYBODY, THE ENFORCEMENT OF IT AND THE FEEDBACK AND MEASURING OF EFFECTIVENESS. THERE'S A WHOLE LOT OF STAFF OF PEOPLE TIME TIED UP IN SOMETHING LIKE THAT. IF WE'RE GOING TO DO THIS, WE GOT TO BE SURE THAT WE MAKE SURE THAT WE COMMUNICATE IT TO THE RESIDENTS AND MAKE SURE WE GET FEEDBACK AND MAKE SURE WE MEASURE THE EFFECTIVENESS OF IT. WE CAN IMPROVE IT BECAUSE THIS IS THE FIRST TIME. THIS IS BETA. RIGHT KIND OF A THING. SO WE NEED TO BE ABLE TO IMPROVE ON IT AS WE GO DOWN THE ROAD. THAT COST OF ALL THAT IS JUST REALLY I HAVE NO IDEA HOW TO EVEN MEASURE THAT. >> NO. TO BE SURE, ONE OF THE THINGS WE TALKED ABOUT WHEN I MOVED OUT THERE WAS IF THE PLANNING DEPARTMENT WERE TO BE THE CONTACT POINT COLLECTING INSTEAD OF PARK BOARD, WE WOULD TRY AND RECRUIT THAT PARK BOARD EMPLOYEE WHO IS INCREDIBLY FAMILIAR WITH THE PROCESS, BUT CERTAINLY, IT WOULD REQUIRE ADDITIONAL STAFF ON THE CITY SIDE FROM WHAT EXISTS HERE TODAY, WHETHER IT'S THAT PERSON OR SOMEONE ELSE. >> THERE'S MORE BENEFIT TO THIS PLANNING DEPARTMENT DOING REGISTRATION AND THAT WE HAVE DIFFERENT ZONING RULES AND DIFFERENT APPLICATIONS OF WHAT CAN BE DONE AND DEED RESTRICTIONS AND [01:45:02] OTHER THINGS THAT EXIST OUT THERE THAT OUR PLANNING DEPARTMENT IS AWARE OF. THERE'S NO WAY THE PARK BOARD I MEAN, THEY NEED TO BE DEFENDED. THEY WOULD NOT KNOW. I MEAN, THEY DID. THEY DON'T KNOW WHAT OUR RULES ARE. THEY DON'T KNOW THAT YOU CAN'T THAT'S A GREAT REASON FOR THE CITY TO TAKE IT. >> HOW IT, PLEASE, SOMETHING IF YOU DON'T EVEN KNOW WHAT IT IS. >> THAT'S EXACTLY RIGHT. >> BUT ADDITIONALLY, I WOULD SAY THAT THE CONVERSATION ABOUT PARKING SPECIFICALLY IS MORE THAN JUST A CLERK REGISTERING PEOPLE. THEN YOU ARE TALKING ABOUT A DIFFERENT IMPACT ON STAFF IF YOU'RE HAVING SOMEBODY ELSE REVIEW PARKING REGULATIONS. THERE'S DEFINITELY A COST ADMINISTERING. >> IT'S HARD TO QUANTIFY WHEN WE DON'T CONTROL THE WHOLE PROCESS. WE CAN ENSURE EFFICIENCY, WE HOPE. WE STRIVE TO EVERY DAY. I MEAN, THAT'S GETS BACK TO THE WE NEED TO CONTROL THE WHOLE PROCESS IN THE CITY. >> YOU'RE RIGHT. WE HAVE ALEX. >> I JUST WANTED TO SEGUE AND COUNCILMAN BROWN'S IDEA. I REALLY LIKE MAYBE KEEPING THAT CALL CENTER OPEN FOR SUGGESTIONS, COMPLAINTS, COMMENTS AS WELL, 100%. NO. KIND OF LIKE. >> ACTUALLY, I LIKE THAT FOR ALL OF OUR WE PROVIDE. >> MOST PEOPLE WANT TO GIVE FEEDBACK VIA TEXT FEEDBACK FOR I MEAN, ULTIMATELY, THAT'S WHERE MOST PEOPLE COMMUNICATE NOW. THEY DON'T LIKE MAKING PHONE CALLS. >> IF WE CAN TIE IT INTO. >> I GET MADE FUN OF THAT BY MY DAUGHTERS ALL THE TIME. >> WE CAN TIED INTO, LIKE, PUBLIC WORKS AND I HAVE FOLLOW UP WITH THINGS. >> GIVE THEM THEY HAVE A TRUTH CALL CENTER, SOMEBODY GIVE THEM A TICKET AND THOSE LOGS AND FIGURE, WELL, WHAT DID WE DO AS A RESULT OF IF THE PERSON GETS SATISFIED? >> THAT WAY, WE CAN FOLLOW UP WITH. >> WE HAVE NO IDEA NOW. >> WE HAD DAVID. >> TO TALK, GO BACK TO COUNCILMEMBER BROWN'S COMMENTS, WHEN WE STARTED LOOKING AT THE ROLE AND FUNCTION OF WHAT WE REFERRED TO AS AN SDR ADMINISTRATOR. IT'S THE PERSON THAT'S ADMINISTERING, THE WORK OVER AT THE PARK BOARD. ONE OF THE MAIN FOCUSES WE LOOKED AT WAS THE NEED TO IMPROVE NOT JUST THE QUALITY OF DATA THAT WE WERE RECEIVING FROM THE SHORT-TERM RENTALS, BUT THEN ALSO THE COMMUNICATION OF INFORMATION BACK TO OWNERS AND OPERATORS ABOUT HOW THINGS ARE FUNCTIONING, AND THEN ALSO RELATED TO THE EFFICIENCY OF MAKING SURE THAT THAT PERSON'S ROLES AND RESPONSIBILITIES ARE VERY CLEARLY OUTLINED AND THEY HAD A FEEDBACK LOOP TO MAKE SURE THAT THEY WERE IMPROVING THAT OVERALL PROCESS. WE KNOW WE GOT TO START SOMEWHERE. >> IT'S GREAT TO COLLECT DATA, BUT IF YOU DON'T HAVE ANYBODY TO ANALYZE IT AND TO ACTUALLY IMPLEMENT CHANGES AS A RESULT OF IT, THEN THE DATA IS FRUITLESS. >> THAT WAS ONE AND I'M GLAD YOU BROUGHT IT UP. SO THANK YOU. >> WANT TO THROW IN ANOTHER THOUGHT INTO THIS DISCUSSION? IS IT IN YOUR BUDGET ABOUT THE AMOUNT OF MONEY THAT WE TAKE OUT OF THE REGISTRATION FEES CURRENTLY TO PAY LN TO DO SUITE? THAT'S IN THERE. >> RIGHT NOW IT'S BEING PAID. THE MONEY GOES TO THE PARK BOARD AND THE PARK BOARD TAKES OUR FEES AND PAYS US BACK. THEY'RE CURRENTLY GIVING WE'RE CURRENTLY GIVING GLENN FOR HOT AUDITS, 65,000, IS THAT CORRECT? >> AROUND 60,000. >> $60,000. NOW, THIS BRINGS UP A TOPIC FOR COUNSEL, IF WE WANT TO EXPAND OUR INVOLVEMENT WITH HOT AUDITS, AND WE'RE GOING TO NEED TO TAKE MORE MONEY OUT OF THIS REGISTRATION FEE TO GIVE TO OUR AUDITOR TO DO MORE HOT AUDITS. >> IF WE TAKE IT BACK ENTIRELY, THEN WE'VE GOT THE WHOLE BUCKET TO UTILIZE. >> WELL, BUT EVEN AT THE CITY. >> KEEP IN MIND, THOUGH, THAT YOU'RE PAYING AN AUDITOR OUT OF STR FEES TO AUDIT HOT TAX. THEN WE GIVE THE HOT TAX VIA BUDGET TO ANOTHER ENTITY. YOU'RE SPENDING MONEY THAT YOU'RE ASKING THESE PEOPLE TO PAY AND YOU'RE NOT GETTING THE TRUE BENEFIT OF THE MONEY. >. WE GET A PORTION OF THE MONEY. PLUS, I THINK DOES THE INTEREST GO TO US AND PENALTIES TO THE PARK. >> INTEREST IS HOT, THE PENALTY COMES TO THE CITY. >. BUT MY POINT IS, EVEN IF THE CITY TAKES THIS OVER IS WE'RE PUTTING THIS BUDGET TOGETHER. IF COUNSEL WANTS TO EXPAND YOUR FOOTPRINT INTO HOT AUDITS, AND WE WANT TO DOUBLE, THEN WE NEED TO TAKE $120,000 AS AN EXPENSE ITEM AS WE CALCULATE HOW WE'RE UTILIZING THIS MONEY. >> MIGHT I SUGGEST SOMETHING TO YOU? >> YES, SIR. >> THE EFFICIENCY OF THE AUDITOR IS EXCEPTIONAL WHEN YOU LOOK AT THE RECOVERY UTILIZE THAT ARE GAINED BY THE CITY IN HOT AND SALES TAX AUDITS. WHEN THEY'RE FOCUSING EXCLUSIVELY ON HOT, YOU'RE DETRACTING FROM THEIR ABILITY TO DO SALES TAX WORK. I MEAN, IT'S ALL ABOUT WHAT'S THE BENEFIT OF THE CITIZENS OF GALVESTON, HOW THE MONEY CAN BE USED. SALES TAX IS AVAILABLE TO REDUCE THE DEPENDENCE ON THE GENERAL FUND. [01:50:06] EVERY TIME THAT GLENN HAS GOTTEN INVOLVED IN SALES TAX AUDITS, IT'S REMARKABLE HOW MUCH HE'S ABLE TO RECOVER. >> GLENN IS UNBELIEVABLY SUCCESSFUL. >> SALES TAX, AND IT'S REMARKABLE. THEY DO IT OKAY. THEY DO A VERY GOOD JOB AT IT. IT. I THINK THAT THERE'S MULTIPLE NEEDS WITHIN INTERNAL AUDIT AT THE CITY. NUMBER 1, GLENN NEEDS TO WATCH US, THE CAREER EMPLOYEES TO MAKE SURE WE'RE FOLLOWING THE RULES AS ALL HAVE PROVIDED THEM. BUT THEN THERE'S THE SIDE WORK, THE SALES TAX AUDITS, THE HOT AUDITS. ALL THOSE THINGS ARE ANCILLARY TO THEIR PRIMARY ROLE OF WATCH BEING A WATCHDOG FOR A AGAINST. >. YOU'RE EXACTLY RIGHT. BACK TO COUNCILMAN PORRETTO MADE A COMMENT EARLIER, ABOUT THIS. PERSONALLY, I THINK THAT WE NEED TO EXPAND OUR INVOLVEMENT WITH SALES TAX AUDIT NOT HOT TAX AUDIT NECESSARILY. >> I THINK IT'S THE HOT TAX WE'VE BEEN REALLY HARD ON THAT RECENTLY FOR THE EGREGIOUS ACTORS, AND I THINK THERE'S BEGINNING TO BE SOME COMPLIANCE. MAYBE THAT'S OPPOSITE FOR SALES TAX, AND MAYBE WE CAN ALTERNATE EVERY OTHER YEAR. NOT TRYING TO TELL PEOPLE, HEY, CHEAT ON YOUR HOT TAX EVERY OTHER YEAR, SALES TAX, BUT IT'S A BALANCE. >> RAYCON STILL THINKS THERE'S PROBABLY ABOUT 300 PEOPLE THAT ARE UNREGISTERED. AT LEAST NOT PAYING HOT TAX. >> THAT'S ONE OF THE THINGS THIS SOFTWARE PROGRAM WAS SUPPOSED TO HELP IDENTIFY. I DON'T I HAVEN'T RECEIVED THOSE NUMBERS OR I HAVEN'T SEEN THEM. >. I GOT IT REPORTED TO ME JUST THIS WEEK OF REGISTERED AND I'M NOT SURE WHO TO REPORT THIS TO. I'M GLAD THIS JUST CAME UP REGISTERED RENTALS THAT ARE HOMESTEADED. >. THINK THERE'S ANY WAY? I BELIEVE THAT'S PROBABLY ALLOWED. PEOPLE RENT OUT THEIR HOUSE FOR BIKE OR RALLY? B HOUSE. I GOT FRIENDS WITH BACK HOUSES THAT THEY USE. >> NO. I MEAN, THEY DON'T LIVE THERE FULL-TIME. THERE'S A LOT OF HOMESTEADS THAT DON'T LIVE THERE FULL TIME. >> YOU JUST HAVE ONE HOMESTEAD. >> YOU CAN ONLY HAVE ONE HOME. >> YES. IT'S A TECHNICAL QUESTION. I GUESS PART OF THIS TRACKING OF SHORT-TERM RENTALS AND ALL THAT, WILL THAT INFORMATION BE AVAILABLE ON OUR GIS SYSTEM AS A MAP OR SOME WAY FOR TRANSPARENCY? >> THAT'S ACTUALLY AN EXCELLENT POINT AND IT'S NOT A COMPONENT WE CURRENTLY HAVE BUDGETED FOR. >> I'M NOT SURE WE DON'T HAVE A LAYER NOW. >> I THINK IT'S SOMETHING WE'VE TALKED ABOUT AND WORKED ON. I THINK PART OF IT IS THAT ONGOING UPDATING OF THOSE REGISTRATIONS ON THE GIS MAP AND MAKE SURING THAT FUNCTION IS [OVERLAPPING]. >> THAT WOULD BE HELPFUL BECAUSE IF YOU HAVE AN ISSUE WITH A NEIGHBOR, YOU MAY OR MAY NOT KNOW IF IT'S A SHORT TERM RENTAL. IF YOU COULD DO A QUICK CLICK AND SAY, "OH, MY GOD, THAT'S A SHORT TERM RENTAL, " THEN, IT'S A GOOD WAY FOR SOMEBODY IN THE NEIGHBORHOOD IF THEY HAVE SEE A SHORT TERM RENTAL, AND IT'S NOT ON THAT GIS MAP TO CONTACT YOU. >> NOT ONLY THAT WOULD ALSO BE HELPFUL FOR OUR CALL CENTER. >> I'LL TELL YOU A REALLY GOOD GO BY SAN ANTONIO'S WEBSITE HAS A GREAT, VERY ACCESSIBLE, VERY EASY TO NAVIGATE GIS IS STRICTLY STR. IT'S ONE OF THE LAYERS. >> WELL, IT WOULD ALSO HELP US BE ABLE TO PINPOINT. IF A CALL COMES INTO THE CALL CENTER FOR A SEWER BACKUP, THEY WOULD IMMEDIATELY KNOW IF WE'RE RESPONDING TO A SHORT TERM RENTAL OR RESIDENT OR A LONG TERM RENTAL OR WHATEVER CLASSIFICATION IT IS, TO HELP BETTER TRACK EXPENSES. >> I'VE ALWAYS SAID AND I STILL BELIEVE THIS. WHEN WE COME BACK TO LOOKING ON HOW WE'RE GOING TO UTILIZE THESE REGISTRATION FEES, I PERSONALLY DON'T WANT TO HAVE THIS REGISTRATION FEE BE A SLUSH FUND FOR OPERATION OF OTHER ACTIVITIES IN THE CITY. THIS NEEDS TO BE FOCUSED ON WHAT WE WANT TO DO WITH SHORT TERM RENTALS, AND THIS IS A GREAT DIALOGUE THAT WE'RE GOING THROUGH RIGHT NOW. COUPLED WITH THIS IS, I'M GOING TO MOVE QUICKLY AND WE CAN COME BACK TO THIS DISCUSSION. WE'VE HAD A LETTER FROM TERESA ELLIOTT THAT, SHE HAS TALKED TO ME NUMEROUS TIMES, TALKED TO PARK BOARD QUITE A BIT. THERE IS A REQUEST TO CONSIDER TAKING CONDOMINIUMS AND CHARGING A ONE TIME FEE FOR THOSE INSTEAD OF INDIVIDUAL FEES, EVEN THOUGH THOSE CONDOMINIUMS ARE INDIVIDUALLY OWNED. NOW, MS. ELLIOTT FEELS THAT SHE HAS A CONDOMINIUM COMPLEX THAT SHE MANAGES, AND THAT THEY HAVE THEIR OWN TRASH PICK UP, THEY HAVE THEIR OWN SECURITY SERVICE, AND A NUMBER OF OTHER THINGS THAT THEY SUPPLY, AND THEREFORE, THEY DON'T THINK THAT THEY SHOULD BE PAYING AS EVERY OTHER SHORT TERM RENTAL DOES, AN INDIVIDUAL FEE FOR EVERY INDIVIDUALLY OWNED CONDOMINIUM. [01:55:03] THEREFORE, THEY FEEL THAT THEY SHOULD BE PAYING A FAR LESSER FEE. PERSONALLY, I HAVE A CONCERN WITH THAT. I DON'T THINK THAT THAT OPENS UP A PANDORA'S BOX HERE. WE'VE GOT 248 UNITS DOWN THERE AT MARGARITAVILLE THAT HAVE NOT BEEN PERMITTED YET, BUT THEY ARE MOVING FORWARD AND PROBABLY THE MAJORITY ARE GOING TO BE SHORT TERM RENTALS, AND THEY ARE GOING TO BE TERM CONDOMINIUMS DOWN THERE. EVEN THOUGH THEY'RE SINGLE FAMILY HOMES, AND I COULD SEE WHERE SOME OF THESE OTHER GROUPS THAT OWN SHORT TERM RENTALS ARE GOING TO LEGALLY TRY TO CHANGE THE NAMES TO CONDOMINIUMS. I HAVE A CONCERN ABOUT THAT. LET'S OPEN THAT DISCUSSION UP. >> WHEN I THOUGHT I WAS GOING TO BECOME THE QUEEN OF RVO, WHEN WE BOUGHT OUR SECOND HOME UNTIL I FINISHED DECORATING AND IT'S LIKE, "NOBODY WILL EVER STAY IN MY HOUSE, " BUT, I DID A LOT OF RESEARCH, AND A GOOD EXAMPLE WOULD BE BRECKENRIDGE. WITH THEY CALLED THEM CONDO HOTELS, AND THEY STARTED OUT THAT WAY. THEY JUST HAD ONE FEE. THE ISSUE THAT THEY RAN INTO, AND I UNDERSTAND TERESA'S ARGUMENT 100%, WAS IN A CONDO HOTEL, NOT ALL THE PEOPLE WHO OWNED CONDOS USED THE CONDO HOTEL SERVICE. THEN THERE WERE INDIVIDUAL OWNERS THAT WERE STILL RENTING THEMSELVES AND KIND OF FLYING UNDER THE UMBRELLA. IT BECAME SO CONVOLUTED THAT THE CITY WENT AWAY FROM IT, AND THAT'S JUST AN EXAMPLE TO SITE. >> THANK YOU VERY MUCH. WE HAVE ALEX AND THEN DAVID AND THEN BOB. >> WITH ALL DUE RESPECT TO THE SEMANTICAL CALLING OF A SINGLE FAMILY HOME, THAT'S PROBABLY ZONE SINGLE FAMILY HOME WITHIN MARGARITAVILLE AND CALLING IT A CONDO, DOESN'T CHANGE THE FACT THAT IT'S A SINGLE FAMILY HOME. THEY WOULD STILL BE, AND I KNOW THEY'RE TRYING TO DO IT. THIS COMES UP. THEY'VE ENJOY THE $50 FEE. I GUESS THAT'S WHAT TERESA HAD SUGGESTED TO ME. BUT, IF IT'S A CONDO WITHIN A BUILDING, THAT DOESN'T USE THE CITY'S TRASH SERVICE, THEY HANDLE MOST OF THEIR CALL, NEVER SAY NEVER, BUT, WE'RE PROBABLY NOT GOING TO GET A CALL FOR BOISTEROUS BEHAVIOR AS WE WOULD PROBABLY IN MARIE'S DISTRICT WITH A HOUSE THAT SLEEPS 12 AND THEY HAVE 24 THERE. I WOULD BE LEANING TOWARDS. LOWERING THAT NOW, I WOULD DEFER TO TALKING TO THE SHORT TERM RENTAL INDUSTRY AND THE CONDO OWNERS, WITH WHAT EXACTLY THAT FEE WOULD LOOK LIKE. BUT I THINK THE BURDEN THAT THE CONDOS PUT ON THE SYSTEM ARE A LOT LESS THAN WHAT A REGULAR SINGLE MULTI FAMILY HOME WOULD. I THINK WITHOUT THE SEMANTICAL OVERLOAD OF CALLING MARGARITAVILLE SINGLE FAMILY HOMES, THOSE ARE HOMES. >> BUT THEY'RE NOT. THEY ARE STATE LAW ZONED AS CONDOMINIUMS. IT'S THAT, THERE IS IN STATE LAW, AND THAT'S WHAT MARGARITAVILLE IS WORKING WITH IN STATE LAW BASED ON IF YOU DON'T SELL THE PROPERTY, THE LAND, I THINK IT IS. ISN'T IT, BRIAN OR DAN? >> THE ISSUE, IT HAS NOTHING TO DO WITH THE WALLS, WHETHER THE WALLS [INAUDIBLE] YOU'RE NOT, IT HAS TO DO WITH HOW THEY'RE MANAGED, AND THAT'S MS. ELLIOTT'S POINT. MARGARITAVILLE WILL BE MANAGED EXACTLY LIKE A CONDO TOO. >> SAN LOUIS. >> BUT THEY'RE SINGLE FAMILY HOMES. >> SAN LOUIS? DO THEY ALLOW? >> CONDO SIDE? >> I HAVE NO IDEA. >> HOW THEY MANAGE. >> FRACTIONAL OWNERSHIP. THAT'S DIFFERENT, I THINK. >> BUT THERE'S A LOT OF SHORT TERM RENTALS THERE. DOES THE HOTEL? >> THEY REGISTER. >> BUT THEN THAT GOES INTO THE POINT TOO. IF THEY'RE SELF MANAGING AND THEY CAN PROVE THEMSELVES, IS THERE A FEE STRUCTURE THAT WE CAN WORK WITH? >> YOU'RE GOING TO OPEN UP PANDORA'S BOX. [OVERLAPPING] >> I THINK WE NEED TO REMEMBER THAT THIS LICENSE OR REGISTRATION APPLIES TO THE OWNER OF THE DWELLING, FIRST OFF. THE OTHER THING IS THAT, 100% OF THOSE UNITS BEING USED AS RENTALS. HOW DO WE APPLY THAT TO THE BREAKERS DOWN THE WAY, WHERE YOU HAVE OWNERS THAT ARE LIVING THERE? >> THEY'RE IN SHORT TERM RENTALS. [02:00:01] [OVERLAPPING] >> THEY DO HAVE SHORT TERM [OVERLAPPING] BUT YOU ALSO HAVE OWNERS THAT ARE ENJOYING AND THE LIFESTYLE OF LEVEEDNESS. >> SCALE THE PERCENTAGE. IF WE GO DOWN THE ROAD. >> IF WE GO DOWN THE ROAD, IT'S JUST LIKE WHAT GCAD IS GOING TO HAVE TO DO NOW WITH ASSESSING PERSONAL PROPERTY ON, AND CALLING SHORT TERM RENTALS BUSINESSES, BECAUSE, HOW ARE YOU GOING TO DO THAT? IF I OWN MY PROPERTY, IF I LIVED THERE, 75% OF THE YEAR, BUT I RENT IT OUT, IS IT 25%, THEN I HAVE TO PAY 100% OF MY PERSONAL PROPERTY. >> I CAN TELL YOU HOW THAT HAS IT. [OVERLAPPING] >> THAT'S ONE GROUP OF STR OWNERS DIFFERENTLY THAN OTHERS. >> THAT'S WHY BRECKENRIDGE STOPPED DOING IT. IT BECAME IMPOSSIBLE TO FOLLOW. >> BUT THE UNITS THAT MS. ELLIOTT WORKS WITH, EACH ONE IS INDIVIDUALLY PERSONALLY OWNED. THIS IS NOT OWNED BY A GROUP. >> IN EVERY CASE. >> I'VE ALREADY STARTED GETTING CALLS FROM PEOPLE THAT SAY, "I WANT A REDUCTION BECAUSE I'LL PROVIDE MY OWN SECURITY AND MY OWN TRASH ON THE REGISTRATION FEE.". >> MAYBE THEY WILL AND MAYBE THEY WON'T. >> THAT'S RIGHT. [LAUGHTER]. >> GO AHEAD. SORRY. >> YOU MENTIONED A LITTLE WHILE AGO THAT THE DEFINITION OF A CONDO HAS NOTHING TO DO WITH THE TYPOLOGY OF THE BUILDING, IS THAT RIGHT? >> CORRECT. >> CONDOS THAT ARE ALL PART OF ONE STRUCTURE CONSIDERED A MULTI FAMILY RESIDENTIAL? >> THAT'S THE SAME QUESTION. >> MA'AM COULD YOU COME FORWARD. I SAW YOU SHAKING YOUR HEAD THERE. >> CONDOS THAT ARE SHORT TERM RENTALS AND HAS FULL TIME RESIDENTS THAT LIVE THERE. ALL THOSE. >> YES. AN ANSWER TO YOUR QUESTION. CONDOS ARE DIFFERENT. THEY'RE NOT REALLY REGULATED BASED ON THEIR STRUCTURE, THEY'RE REGULATED BASED ON THE OWNERSHIP OF THE LAND, AND THEN HOW THAT'S DIVVIED UP, EXTERNAL TO THE FACT THAT IT'S NOT PLATTED AND DIVIDED SEPARATELY. MARGARET USED A PERFECT EXAMPLE OF THIS, WHERE YOU HAVE A CONDO, THAT'S A SINGLE FAMILY CONDO. THERE ARE CONDOS OUT THERE THAT ARE GENERATED IN MALLS, FOR EXAMPLE, WHERE YOU OWN A FRACTIONAL PORTION OF INTEREST IN THE BUILDING, BUT NONE IN THE LAND. YOU'RE SIMPLY BASICALLY RENTING THE LAND FROM THE HOA. THAT'S HOW MOST OF THESE CONDOS ARE SET UP. THEY'RE ABLE TO BE INDIVIDUALLY OWNED, INDIVIDUALLY MANAGED IF THEY WANT, BUT THE CONDO COMPLEX MIGHT HAVE A MANAGEMENT STRUCTURE THAT REQUIRES IT GO THROUGH A MANAGEMENT FORMAT. IT'S GOING TO REALLY DEPEND ON HOW IT'S SET UP. >> IT REALLY HAS NOTHING TO DO WITH WHETHER OR NOT THAT YOU HAVE 20 CONDOS IN ONE BUILDING OR YOU HAVE 20 SEPARATE BUILDINGS LINED UP RIGHT HERE? >> REALLY. LAND OWNERSHIP IS THE KEY. >> IT'S LAND OWNERSHIP, AND WE'VE GOT GROUPS OUT THERE LIKE THE BIG BOX GROUP THAT OWNS NUMBER OF SHORT TERM RENTALS. >> I GUESS THERE'S AN ISLAND HERE. THE REASON I BRING THAT UP IS BECAUSE I'VE SEEN A LOT OF OTHER MUNICIPALITIES THAT HAVE STRS CATEGORIZED BY TYPE, AND ONE OF THOSE TYPES IS MULTIFAMILY RESIDENTIAL. AND SO THEY HAVE A DIFFERENT STRUCTURE. BECAUSE THERE ARE DIFFERENT TYPES OF STRS OUT THERE. >> WE LOOKED AT THAT AS WELL. AS FAR AS A FIRST PASS, WE DIDN'T REALLY WANT TO BRING IT FORWARD BECAUSE IT BECOMES REALLY COMPLEX. BUT WE DID LOOK AT OTHER CITIES, AND LOOKED AT THE DIFFERENT TYPES OF STR USES, WHETHER SIMILARLY MULTIFAMILY OR ACTUALLY CONDOS AS WELL. THEY DID HAVE DIFFERENT RATE STRUCTURES. >> I'M JUST SUGGESTING MAYBE WE CAN SEE HOW OTHER PLACES HAVE DONE IT. BECAUSE THIS IS NOT ONLY US IT'S [OVERLAPPING]. >> WHAT'S DIFFICULT IS, YOU CAN'T COMPARE TEXAS TO CALIFORNIA. YOU CAN'T COMPARE TEXAS TO COLORADO, BECAUSE OF THE FACT THAT WE HAVE A COMPLETELY DIFFERENT PROPERTY RIGHTS STRUCTURE. YOU CAN COMPARE TO OTHER CITIES IN TEXAS. BUT, I ALWAYS THOUGHT IT SHOULD BE BY NUMBER OF BEDROOMS. BUT THEN, HOW DO YOU DO THAT? THAT'S A BEDROOM. >> THEY'RE BIG ENOUGH TO FIT A CAR IN IT, LIKE WE TALKED ABOUT. [LAUGHTER]. [02:05:03] >> I REMEMBER, WHEN WE BOUGHT OUR HOUSE, THERE WAS A BIG WALKING CLOSET THAT THEY HAD A MATTRESS IN THAT I'M SURE KIDS LOVE TO SLEEP IN. WHAT'S A BEDROOM. IT'S HARD TO DEFINE. >> BUT ON THAT, I AGREE WITH YOU, MARIE. I THINK, WHEN WE'RE LOOKING AT OUR REGISTRATION FEE, HAVING IT BASED ON THE NUMBER OF BEDROOMS, WE'VE GOT ONE BEDROOM PAYING THE SAME AS A HOUSE THAT'S GOT EIGHT BEDROOMS. I JUST THINK GETTING INTO OCCUPANCY LIMITS, THAT'S HARD TO TAKE CARE OF. >> YOU'D HAVE TO PREPARE YOURSELF OF INSPECTIONS AND PROPERTY. >> YOU'D HAVE TO STAND OUT THERE AT NIGHT AND COUNT THEM. BUT BEDROOMS, THERE WILL BE PEOPLE THAT WILL GET AROUND THE RULES, BUT OVERALL, THEY'RE LISTING ON VRBO IS TWO BEDROOMS, FOUR BEDROOMS. I THINK WE OUGHT TO LOOK AT FEE STRUCTURE BASED ON BEDROOMS. I'M SORRY. >> I COULD BE WRONG, BUT MAYBE MARIE CAN GIVE ME A HEAD SHAKE WITH VRBO. THEY SAY IT COULD BE A TWO BEDROOM, BUT THEY SAY SLEEPS EIGHT. WE COULD BASE IT ON HOW MANY THAT YOU ADVERTISE YOU SLEEP. BUT THAT WOULD BE SOMETHING I THINK. >> I HAVE SOME FOUR BEDROOMS THAT SLEEP 32. >> THAT'S NOT HOW YOU SLEEP. [LAUGHTER]. >> VERY CLOSE TOGETHER. >> I THINK TABLING THIS WOULD BE A GOOD IDEA BECAUSE WE'RE IN THREE ES ABOUT TO GO INTO THE CURRENT ORDINANCES, AND THIS IS SOMETHING THAT WE COULD, PAN OFF ON DAN OR WITH THE STR INDUSTRY AND GET EVERYBODY INVOLVED AND WHAT WOULD BE THE FAIR PRICING STRUCTURE. >> YOU'RE TALKING ABOUT THE CONDO, BECAUSE I AGREE WITH SCALING IT BASED ON HOW MANY YOU SLEEP. I THINK A SMALLER CONDO, WOULD PROBABLY FEEL MORE COMFORTABLE. >> HOW DO WE DO THAT WITH PEOPLE WHO DON'T ADVERTISE ON THE PLATFORMS? [OVERLAPPING] >> I WOULD HAVE TO GET REGISTRATION AND, YOU CAN MAKE IT A REQUIREMENT. >> EVERY REGISTRATION IS GOING TO BE A SLEEP TWO? >> WELL, THE ONLY WAY YOU COULD DO IT [OVERLAPPING]. >> YOU HAVE TO PUT HOW YOU ADVERTISE? >> IF WE'RE GOING TO HAVE OUR OWN AREA, IF IT'S GOING TO BE AT THE CITY AND WE'RE DOING IT, WHEN THE REGISTRATION COMES IN, YOU COULD JUST LOOK AT THE CAD LISTING. THAT'S REALLY NOT THAT TEDIOUS. ONCE THEY'RE ALL REGISTERED. >> CAD LISTING TO TELL US. >> TELL US HOW MANY BEDROOM. [OVERLAPPING] >> WE COULD DO BASED ON SQUARE FOOTAGE. >> CAN I SHARE SOMETHING THAT I JUST FOUND OUT? >> ALTHOUGH THE CONDOS AREN'T RATED BY SQUARE FOOTAGE. >> LAST WEEK, THAT ASTOUNDED ME. ON TOP OF OUR REGISTRATION, BEACHSIDE VILLAGE HOA. THEY HAVE THEIR OWN REGISTRATION, THAT'S 650. >> ON TERM. >> SHORT TERM. >> PEOPLE ARE PAYING IT. >> ALL RIGHT. LET'S LET'S START TO WIND UP SO THAT WE CAN I WANT TO BRING I KNOW, BOB. I WANT TO BRING US BACK TO RECOMMENDATIONS FOR COUNSEL FOR STAFF TO BRING BACK TO US BOB. >> WELL, OKAY. JUST IN THAT REGARD, I THINK THE CRUX OF THIS IS WHETHER THE CITY SHOULD TAKE OVER ALL OF THESE FUNCTIONS. THAT'S THE DIRECTION. >> THAT'S ONE OF THEM. YES, SIR. >> I FULLY SUPPORT THAT, BY THE WAY. >> MOSTLY BASED ON EVERYTHING WE JUST SAID. JUST IN ONE LITTLE QUICK POINT ABOUT THE NUMBER OF PEOPLE IN BEDROOMS AND ALL THAT STUFF. A LOT OF THAT NUMBER OF PEOPLE STUFF IS A LIFE SAFETY ISSUE. SO FOR INSTANCE, YOU CAN'T HAVE 20 PEOPLE IN ONE BEDROOM. IT'S JUST A LIFE SAFETY ISSUE EXITING THE WINDOWS ALL HAVE TO BE A CERTAIN SIZE. THAT THING, IS THAT RIGHT? >> WELL, BECAUSE IN THE STATE OF TEXAS, THESE ARE YOUR RESIDENTS, AND WE DON'T GET INTO WHETHER YOUR DAUGHTER'S HAVING TOO MANY KIDS, TOO MANY GIRLS AT HER SLUMBER PARTY. THERE ARE SOME CITIES THAT REQUIRE SHORT-TERM RENTALS TO GO THROUGH FIRE INSPECTIONS AND ALL THOSE THINGS. THAT IS EXPENSIVE, AND WE'RE HAPPY TO TAKE THAT ON, BUT IT'S GOING TO INVOLVE MORE THAN THE FEE THAT YOU'RE CHARGING. >> WELL, THE NUMBER OF BEDROOMS, AS WELL AS THE NUMBER OF PEOPLE, IS A REAL NEBULOUS CONCEPT AS WE'VE JUST. >> I AGREE. I THINK THAT'S WHERE COUNCIL MEMBER FINKLEA CAME FROM AND THAT IT BECOMES ALMOST AN IMPOSSIBILITY THE PERMUTATIONS ARE SO MANY AS TO HOW THIS COULD PLAY OUT. >> IF YOU DID SAY LIKE SOME OTHER PLACES ORDINANCES AT THE DEAL WITH DTRS, YOU COULD SAY TWO PEOPLE PER BEDROOM, INSTEAD OF AN ENFORCEMENT ISSUE, IT GIVES YOU SOME LEVERAGE WHEN YOU DO HAVE A COMPLAINT. >> TWO PLUS TWO, TWO ADULTS. >> IF YOU DO HAVE A COMPLAINT, YOU GO OUT THERE AND SAY, WELL, LOOK, YOU GOT TOO MANY PEOPLE HERE. >> WE WOULD NOT KNOW UNLESS WE COULD ENTER THE PREMISES AS TO WHETHER THAT WAS THE CASE AND THAT BECOMES THE ISSUE WITHOUT A WARRANT. >> SO THERE'S NOT A WAY TO ACTUALLY CONTROL THE NUMBER OF PEOPLE AT ANY ONE BUILDING. [02:10:07] >> WHEN THE AUST SUPREME COURT AUSTIN COURT OF APPEALS STRUCK DOWN AUSTIN'S AT BY OBSERVING THAT DS RESTRICTIONS HAD BEEN IN PLACE AT THE TIME OF THE FOUNDING FATHERS THE CONSTITUTION COULD NOT HAVE BEEN DRAFTED BECAUSE IT WOULD HAVE BANNED THAT NUMBER FROM PARTICIPATING. >> WE HAVE TWO ISSUES ON SOME OF THESE WITH A CAR WITH A WIG. BUT SOME OF THESE ISSUES MAKES COMMON SENSE TO US, BUT WHEN YOU GET TO A LEGAL SITUATION IN THE STATE OF TEXAS, THIS BECOMES A LOT DIFFERENT SITUATION. >> ENFORCEMENT, GUYS. I MEAN, ENFORCEMENT BECOMES EXPONENTIALLY MORE EXPENSIVE THE MORE YOU PUT INTO THESE THINGS. WE'RE HAPPY TO DO WHATEVER COUNSEL WANTS TO DO. I UNDERSTAND THAT THESE THINGS ARE ONLY AS GOOD AS WE CAN ENFORCE, AND IT TAKES DOLLARS TO ENFORCE AND I DON'T WANT TO START TAXING THE RESIDENCY TO ENFORCE A WHOLE BUNCH OF THINGS MEAN WE'RE GOING TO DO IT THEN THAT INCLUDED IN COME UP. >> OKAY. BEFORE WE WIND UP OUR DIRECTION TO COUNSEL, I WANT COUNCILMAN PORRETTO AND COUNCILMAN FINKLEA, I THINK, WANTED TO WEIGH IN. DID YOU AND COUNCILWOMAN ROBB? AND THEN WE'LL GET OUR THEN HONE IN ON OUR RECOMMENDATIONS. GO AHEAD, SIR. >> WE JUST TRYING TO HONE IN ON IT. I MEAN, I THINK MOVING FORWARD, MOVING IT TO THE CITY, GETTING DATA. WE CAN EXPAND ON ALREADY WHAT WE DO HAVE AND DELVE INTO THAT AND LOOK AT CHANGING THE FEE STRUCTURE. I THINK, I MEAN, YOU'VE SEEN AB AND B, SLEEPS EIGHT, SLEEPS, WE CAN ALSO, I'M DISAGREES THAT EVERY SHORT-TERM RENTAL NEEDS FOUR TRASH CANS. I THINK WE SHOULD HIT A NUMBER AND REQUIRE TRASH CANS PER NUMBER, AND OBVIOUSLY, PEOPLE GO OVER THAT NUMBER AND THAT'S THAT'S GOING TO BE AN ENFORCEMENT THING. BUT I THINK THE FEE STRUCTURE OF IF IT SLEEPS FOUR, YOU KNOW, IF THEY PAY X AMOUNT, IF IT SLEEPS FIVE, IT SHOULD ESCALATE OVER A CERTAIN TIME. I THINK PEOPLE WOULD FEEL I THINK GETTING THE FAIR SHAKE, AND WE'D PROBABLY SEE MORE MONEY COMING IN FROM MARIE'S DISTRICT BECAUSE SHE HAS BEACH HOMES THAT ARE TWO, THREE STORIES THAT SLEEP 32. >> THE SLEEP PART IS AN ANOMALY, GUYS, BECAUSE PEOPLE RENT THESE HOUSES, ESPECIALLY IN MARIE'S DISTRICT AND THEY HAVE PARTIES THERE. AND THERE'S PEOPLE THERE MAY BE THE APPROPRIATE NUMBER OF PEOPLE SLEEPING IN THE. YOU'LL HAVE FOUR IN PART THEY HAVE THE WEDDING RECEPTIONS AND HAVE THE. THAT BECOMES THE TRASH ISSUE BECOME THE PARKING ISSUE BE ELSE. >> WHAT ARE WE TIED TO, BEDROOMS, SLEEPS, I'M OKAY WITH AS LONG AS WE CAN FIND OUT WHAT IT IS. EVERYBODY CAN COMMUNICATE IT, AND WORK TOGETHER TO GET TO IT. >> THAT WOULD BE ADOPTED THE KISS THEORY WITH THIS UP TO THIS POINT, WE'LL GO WHATEVER DIRECTION YOU GUYS WANT TO GO. BUT JUST THAT'S EXACTLY RIGHT. WE'VE JUST TRIED TO KEEP THE FEE AS LOW AS WE CAN FOR EVERYBODY ACROSS THE BOARD, WITHOUT INFRINGING ON PEOPLE'S PROPERTY RIGHTS, WE DON'T WANT TO START GOING IN PEOPLE'S HOUSES. WE DON'T WANT TO START LOOKING TO SEE IF THEY HAVE OUR EXTINGUISHERS AND WE'RE GOING TO TAKE THEM AT THEIR WORD WHEN THEY REGISTER, ALL THOSE TYPE OF THINGS. WE JUST NEED TO BE ABLE TO ENFORCE OUR CODES AND ORDINANCES THAT ARE ON THE BOOKS TODAY AND ANY SUBSEQUENT RULES THAT YOU GUYS PUT IN. I THINK IF YOU CAN OVERTHINK THIS THING A LOT. I THINK THE MORE TECHNICAL AND THE MORE DIFFICULT YOU MAKE, THE HARDER IT'S GOING TO BE TO ENFORCE, AND THE MORE DIFFICULTY WE'RE GOING TO HAVE, AND THE MORE FRUSTRATION YOU'RE GOING TO HAVE BOTH WITH THE SHORT-TERM RENTAL OWNERS THEMSELVES AND THE USERS OF THE SHORT TERM RENTALS. WHICH ARE ALSO VISITORS TO OUR COMMUNITY AS WELL. WE'RE TRYING NOT TO BE TO OWNER. >> DON'T FORGET THE RESIDENTS THAT ARE IMPACTED BY THE SHORT TERM. >> THAT'S THE WHOLE PURPOSE THE RESIDENTS. THAT'S RIGHT. THAT'S WHY THEY DON'T FORGET THEM. >> WE HAD COUNCILMAN FINKLEA. >> SO YEAH. BRIAN, TO YOUR POINT, I THINK THAT'S WHY YOU SEE WHAT YOU HAVE BEFORE YOU BECAUSE I MEAN, WE DISCUSSED ISSUES LIKE RATE BY OR FEE BY OCCUPANCY. WE DISCUSSED HOW DO YOU ENFORCE OCCUPANCY AND WE CAN'T. I THINK THIS FIRST PASS AT WHAT YOU'RE SEEING HERE IS THE KEEP IT SIMPLE. I MEAN, THIS IS ENOUGH OF A CHANGE ANY WAY THAT IT'S GOING TO TAKE SOME TIME, AND TRANSITIONING INTO DON'S PRESENTATION HERE IN A MINUTE. AS IT RELATES TO THE CONDOMINIUM FEE STRUCTURE, MAYOR, I'M JUST GOING TO SAY THAT FOR RIGHT NOW, MAYBE WE DISCUSS THAT A LITTLE BIT MORE AS WE LOOK AT THE LICENSE FEE SECTION D FROM DON, [02:15:04] BUT I'M NOT REALLY INCLINED TO MAKE THINGS OVERLY COMPLEX RIGHT NOW. THAT WE MOVE FORWARD WITH WHAT WE HAVE HERE, IT'S BEING PRESENTED. THEN IF SOMETHING NEEDS TO BE TWEAKED LATER, THEN OF COURSE, WE CAN DO THAT. >> THAT SOUNDS GOOD, MARIE. >> I JUST WANT TO REITERATE SOMETHING MARY WOULD SAY, WHICH IS WHILE WE'RE LOOKING AT WHAT WE'RE DOING LOCALLY, WE HAVE THE PEOPLE WHO LOBBY THE LEGISLATORS EVERY TWO YEARS TRYING TO TAKE ALL LOCAL CONTROL AWAY AND HAVE IT AT THE STATE LEVEL, WHICH WOULD BE THE WORST THING THAT COULD EVER HAPPEN. I THINK THE MAIN IMPORTANT THING RIGHT NOW IS WE ARE TO MOVE IT TO THE CITY GETS RID OF THAT BIG DISCONNECT BECAUSE SHE CAN'T HAVE INPUT SOMEWHERE AND ENFORCEMENT SOMEWHERE ELSE. THEN WE CAN REFINE THE ENFORCEMENTS BECAUSE THAT'S THAT'S JUST UNDENIABLY THE BIGGEST DISCONNECT. >> WHAT I HEAR COUNSEL SAYING AND I'M GOING TO TRY TO SUMMARIZE, GUIDE ME IF IT. WE'D LIKE TO HAVE STAFF LOOK AT, GIVE US MORE INPUT ON THE DATA ANALYSIS HERE ON HOW WE HOW WE DO THAT AND HOW WE BRING BACK MORE INFORMATION TO COUNSEL TO MAKE EVEN BETTER DECISIONS ON. NUMBER 2, WE'D LIKE TO SEE A BUDGET OF MOVING ALL OF THE REGISTRATION, THE CALL CENTER, ALL OF THAT TO THE CITY AND WE'D LIKE TO SEE A BUDGET ON HOW MUCH THAT WOULD BE. THAT INCLUDES HAVING ENFORCEMENT, POSSIBLY ON THE WEEKENDS WITH THE MARSHALS. >> I WOULD SAY THE OPPOSITE YOUR NUMBER 2 IS NUMBER 1. >> THE THIRD THING IS ON THE DISCUSSION ABOUT CONDOMINIUMS AND SO FORTH, WE'LL TABLE THAT DISCUSSION FOR THE TIME BEING. WE'LL COME BACK TO THAT AT ANOTHER TIME. WE WOULD LIKE TO HAVE YOU GIVE SOME INPUT BASED ON THE LEGALITIES AND HOW EASY IT IS TO MANAGE IF WE SHOULD BASE A FEE STRUCTURE BASED UPON OCCUPATION LIMITS AND OR BEDROOM LIMITS, JUST TO SEE IF THAT'S SOMETHING THAT WE WANT TO GET INTO AND GIVE US SOME RECOMMENDATIONS ON THAT. >> I'LL GET INTO THAT IN A MINUTE. >> EXCUSE ME, OH, YES, SIR. THEN WE'LL GET THEN I WOULD IN AND I KNOW OUR COUNCIL MEMBERS WILL. DAVID HAS A GROUP THAT HE'S BEEN WORKING WITH. WE HAVE MARY BRANHAM HERE THAT'S REPRESENTING SHORT-TERM RENAL GROUPS. BOB HAS A KNOW A NUMBER OF INDIVIDUALS HE'S TALKED WITH. ALL OF US. LET'S GET WITH THE INDIVIDUALS IN OUR COMMUNITY AND START TALKING ABOUT THESE POINTS. WHEN STAFF BRINGS THESE BACK, WE'LL BE ABLE TO PUT MORE INPUT. >> YEAH. I AGREE WITH YOU, MAYOR. I THINK ONE OF THE THINGS IS MAYBE WE'VE BEEN TALKING ABOUT DOING TOWN HALLS FOR UPDATES IN OTHER AREAS AS WELL. I THINK THIS IS ONE OF THOSE THAT NEEDS TO BE DISCUSSED AS WELL. >> I ALREADY, I MEAN, MY GROUPS I HAVE MULTIPLE MONTHS. >> TOWN HALL OR YOUR NEIGHBORHOOD ASSOCIATIONS, WHATEVER EACH COUNCIL MEMBER DOES WE COMMUNICATE EVERY MONTH. >> MORE IMPORTANTLY, IS YOU GUYS DOING YOUR WORK IN YOUR DISTRICT? >> EXACTLY. THANK YOU. >> THANK YOU, STAFF. GREAT DISCUSSION. THANK YOU, COUNSEL. VERY GOOD DISCUSSION. LET'S MOVE TO ITEM 3E. [3.E. Discussion Of Short Term Rental Ordinances] IF YOU CAN READ ALL OF THAT, PLEASE, MA'AM. >> DISCUSSION OF SHORT-TERM RENTAL ORDINANCES. ONE, CURRENT ORDINANCES, AND TWO PROPOSED ORDINANCES ASSOCIATED WITH PERMITTING AND REVOCATION OF LICENSE. >> DON. >> WAIT A MINUTE. >> GO RIGHT AHEAD, DON. SORRY. >> WE'RE ON ITEM THAT YOU PUT ON THE HERE 3E, IF WE COULD. >> I HAVE GIVEN YOU A COPY OF THE PRESENT SHORT-TERM RENTAL ORDINANCE. UNFORTUNATELY, THE FIRST TWO SECTIONS GOT CUT OFF THAT DEALT WITH REGISTRATION. [02:20:01] BASICALLY, THEY PROVIDE THAT PEOPLE HAVE TO REGISTER THE SHORT-TERM RENTALS. GETTING PICKED UP? >> A LITTLE BIT LOUDER. >> FOR YEARS, I HAVE BATTED MY HEAD AGAINST THE WALL, TRYING TO COME UP WITH A SYSTEM OF REGULATIONS THAT WOULD BE ENFORCEABLE ON A CITY-WIDE BASIS. KEEPING IN MIND THE ADMONITIONS OF THE COURTS THAT AND OUR SENATOR MIDDLETON, THAT WE NEED TO SHOW OUR PRESENT ORDINANCES ON PARKING, TRASH, AND NOISE ARE INADEQUATE. THE REASONS THEY ARE INADEQUATE IS THE NATURE OF THE BUSINESS ITSELF. I CAN RENT A SHORT-TERM RENTAL TO A ROCK AND ROLL BAND ON JULY 1, AND THEY WILL MAKE A LOT OF NOISE, AND THEY COULD GET A TICKET FOR NOISE VIOLATION TICKET. THEY LEAVE TOWN, MAYBE THEY PAY IT. MAYBE THEY DON'T. TWO MONTHS LATER, THE OWNER RENTS TO A DIFFERENT BAND WHO MAKES NOISE, THEY GET A TICKET, AND THE OWNER HAS NO GRIEF OVER THIS WHATSOEVER. THE REASON IS UNDER OUR MUNICIPAL ORDINANCES, THEY ARE CRIMES, AND THEY REQUIRE THAT WE BE ABLE TO ESTABLISH CRIMINAL INTENT. CONSIDERING ALL THESE QUESTIONS, I REALIZE THAT PERHAPS INSTEAD OF TRYING TO REGULATE BY ORDINANCE, THAT WE SHOULD TRY TO REGULATE THE OWNER'S CONDUCT THEMSELVES. THE ENTIRE PREMISE OF THE PROPOSED RULES BEFORE YOU ARE TO PROVIDE A LICENSE HELD BY THE OWNER, AND IF THE OWNER DOES NOT MANAGE THEIR SHORT-TERM RENTAL PROPERTY, THEY WILL LOSE THEIR LICENSE. IF WE HAVE A PIECE OF PROPERTY AND WE HAVE TO WORK ALL THIS OUT, SAY WE WILL REVOKE YOUR LICENSE AFTER SIX VIOLATIONS ARE ISSUED TO THE OWNER. WELL, WE'VE ESTABLISHED IN THAT SINGLE CASE WHY OUR ORDINANCES ON TRASH, NOISE, OR PARKING ARE INADEQUATE. BUT WE'RE DOING IT ON THE MICRO LEVEL, NOT ON THE MACRO LEVEL. THE WHOLE SYSTEM THAT WE'RE PROPOSING HERE IS NUMBER 1. RIGHT NOW, IF YOU WANT TO HAVE A SHORT-TERM RENTAL, YOU GO TO THE PARK BOARD, YOU PAY A FEE, YOU'RE DONE. THEY ASSIGN YOU A SOME NUMBER, WHICH YOU HAVE TO INCLUDE ON YOUR ADVERTISEMENTS AND THAT'S ONE OF THE TOOLS THEY USE TO MAKE SURE IT IS REGISTERED. >> [OVERLAPPING] I THINK THAT'S A GREAT IDEA. I'D BE CURIOUS TO KNOW WHAT THE INDUSTRY THINKS OF THAT. >> I'M SORRY. GO AHEAD. >> I SAID, I THINK THE LICENSE IDEA IS A GOOD IDEA, BUT I'D BE CURIOUS TO KNOW WHAT THE INDUSTRY THEY GET. >> WELL, LET DON GET ALL OF THE ORDINANCE OUT. >> WAIT I WANT TO DO IN THIS IS TO SHIFT THE OWNERS TO THE OWNER TO MAKE SURE THEIR PROPERTY IS PROPERLY RUN. THIS DOES NOT PREVENT A MARSHAL FROM GIVING A NOISE MAKER IN A SHORT TERM RENTAL A TICKET. BUT WHAT IT DOES, IT REQUIRES THE OWNER TO BE MORE RESPONSIBLE, AND BE MORE HANDS ON IN MAKING SURE THE OCCUPANTS ARE COMPLIANT WITH OUR STANDARDS OF CONDUCT, LET'S SAY, WE DO THIS IN A COUPLE OF WAYS. NUMBER 1, THEY HAVE, EITHER THEMSELVES OR A DESIGNATED AGENT, THEY GET A CALL YOU HAVE A PROBLEM AT 1212 SMITH STREET, [02:25:07] THEY'RE CAROUSING ON THE FRONT PORCH, FIX IT. THE OWNER HAS AN HOUR TO RESPOND TO THAT COMPLAINT. >> WHO MONITORS THAT? IT'S ON THE CITIZENS RESPONSIBILITY. >> NO. GO AHEAD DON. >> NO. IF YOU HAVE A NEIGHBOR WHO SEES A SHORT TERM RENTAL DOWN THE STREET, AND THE OCCUPANTS OF THE SHORT TERM RENTAL ARE HAVING A FIGHT THAT SPILLS OUT ONTO THE STREET, I'M THE ONE THAT CALLS THE POLICE. BUT THIS IS ONE OF THE LOOPS WE HAVE TO CLOSE WITH DATA MANAGEMENT. >> THE AGENT GOES TO YOU OR HE GOES TO THE RED ON? >> YOU WOULD GO TO THE CALL CENTER, POSSIBLY. >> POSSIBLY, BUT MY PERSONAL EXPERIENCE WITH THE CALL CENTER WAS THAT, THE CITY WILL BE NOTIFIED ON MONDAY MORNING. >> NO. WE'RE TALKING ABOUT THE CALL CENTER THAT THE CITY IS GOING TO TAKE OVER. >> IT STILL,, SO EVEN IF IT GOES TO THE CALL CENTER, AND THAT PERSON SUPPOSED TO RESPOND WITHIN AN HOUR [OVERLAPPING] >> THAT THE OWNER RESPONDED. THAT'S AN ISSUE TO BE DEALT WITH. ALSO, THE NEXT STANDARD IS, THEY GOT TO FIX THE PROBLEM WITHIN TWO HOURS OF GETTING THAT CALL. WHATEVER IT TAKES FOR THEM TO FIX IT, I DON'T CARE WHAT THEY HAVE TO DO. THEY NEED TO FIX IT, IF THEY DON'T SHOW UP IN AN HOUR, THEY DON'T RESPOND, THAT'S A VIOLATION. IF THEY DON'T FIX IT IN TWO HOURS, THAT'S ANOTHER VIOLATION. WE'RE PUTTING THE OWNERS ON THE OWNER TO POLICE THE OCCUPANTS OF THEIR UNIT THAT THEY'RE MAKING MONEY OF [OVERLAPPING]. >> BUT WHO'S TELLING US THAT THEY'RE NOT SHOWING US. >> THE MARSHAL PROBABLY. [OVERLAPPING] >> THE MARSHAL. >> THANK YOU SIR. >> MY THINKING THAT THE MARSHAL WOULD BE OUT THERE. >> WE HAVE TWO MARSHALS AND WE HAPPEN TO HAVE IT'S A MEMORIAL DAY WEEKEND, AND WE HAVE 25 HOUSES THAT ARE HAVING ISSUES AT THE SAME TIME. TWO MARSHALS, SOMEBODY, HOW ARE YOU GOING TO DO THAT? >> I WOULD DEFER TO THE EXPERTISE OF MANAGEMENT. >> I WOULD TELL YOU THAT ON BUSY WEEKENDS, WE WOULD PROBABLY STAFF UP AND THERE WOULD BE AN OVERTIME BUDGET IN THAT FEE STRUCTURE TO COVER ADDITIONAL MARSHALS. I ALSO THINK WE'D HAVE TO WORK WITH OUR PARTNERS IN THE POLICE DEPARTMENT, THAT IF THEY GET TO A CALL AND REALIZE IT'S A SHORT TERM RENTAL, SOMEBODY'S CALLS ARE GOING TO COME IN WITHOUT GOING THROUGH THE CALL CENTER, THAT WE WOULD HAVE THAT. HAVING THE CALL CENTER ADJACENT TO THE DISPATCH CENTER OR CONNECTED TO THE DISPATCH CENTER WILL BE A BIG PLUS. RIGHT NOW, THEY ARE NOT EVEN CONNECTED ON THE SAME CONTINENT, I DON'T BELIEVE. >> WE HAVE COUNCILMAN BROWN. >> WE ALREADY REQUIRE SOME KIND OF INVOLVEMENT FROM STR OPERATORS, THE OPERATOR AND THE CODE. RESPOND IN AN HOUR. >> THIS IS IN THE PROPOSED ORDINANCE THAT WE'RE GOING TO HAVE TO REALLY MASSAGE QUITE A BIT. >> WELL, THAT'S NOT IN THE CODE RIGHT NOW. >> RIGHT NOW WE REQUIRE THE OWNER TO HAVE A DESIGNATED PERSON TO ACT AS A CONTACT TO DEAL WITH PROBLEMS. THERE IS NO SANCTION ASSOCIATED WITH THEIR FAILURE TO DO SO. >> ALEX, WE I UNDERSTAND, THAT'S NOT REALLY IN PRACTICE BEING DONE. >> RIGHT. WELL, BECAUSE THERE IS NO SANCTION, THERE IS NO CIRCUMSTANCE. >> THIS IS MAYBE JUST MY THINKING. I'D RATHER NOT SOMETHING GO ON FOR AN HOUR OR TWO HOURS, AND SOMEBODY'S CALLING AND THE MARSHALS ON 45TH STREET, AND THE PROBLEMS ALL THE WAY AND POINT WEST. >> THAT WE'RE GOING TO HAVE TWO MARSHALS TO TRY TO. >> BUT STILL, LET'S JUST SAY, THEY'RE BOTH PREDISPOSED, AND SOMETHING GOES ON FOR TWO HOURS AND IT SPILLS OUT IN THE STREET. >> AT THAT POINT, THAT'S A POLICE ISSUE AND WE NEED TO GET THE POLICE THERE TO SOLVE THAT PROBLEM FIRST. >> WELL, HOLD ON. I AM NOT CONTEMPLATING THAT THE MARSHAL SIT THERE FOR AN HOUR WAITING FOR THE OWNER TO SHOW UP. >> THAT IS WAITING FOR THE OWNER TO SHOW UP FOR TWO HOURS I [02:30:04] I THINK A MARSHAL SHOULD BE DISPATCHED IMMEDIATELY WHEN THE VIOLATION IS OCCURRING. IF THERE IS SOME FOLLOW UP OR WE GIVE THEM A TIME PERIOD FROM WHEN THE MARSHAL SHOWS UP, AFTERWARDS, I WANT ENFORCEMENT. I THINK MOST PEOPLE AND RESIDENTS WANT ENFORCEMENT ON THIS ISSUE, AND THE BAD ACTORS ARE THE PROBLEM. BUT IF, LET'S SAY MARSHAL IN OPERATOR SHOW UP AT THE SAME TIME, AND IT WAS AN HOUR LATER, DO WE PENALIZE THEM? THEY'RE SHOWING UP? I JUST SEE MAYBE FROM WHEN ENFORCEMENT ACTION HAPPENS, THERE'S A TIME PERIOD WHERE THE OPERATOR HAS TO CONTACT, THE OPERATOR HAS TO NOTIFY, WRITE SOME SMALL REPORT AFTER THE FACT SO TO DEAL WITH THE ACTION. [OVERLAPPING] >> AN HOUR AFTER IT'S REPORTED, WAS TO COMPRESS THE TIME. THE PEOPLE THE RESIDENTS IN THE AREA ARE NOT EXPERIENCING PROLONGED CHAOS. >> I AGREE WITH THAT, BUT IT COULD BE, AND I'M BOB BROWN'S, AN STR OPERATOR, AND I JUST DON'T LIKE THE FACT THAT HE HAS STR NEXT TO MY HOUSE, AND I CALL, AND THERE'S REALLY A NON ISSUE, BUT THAT TIME LIMIT STARTS TICKING ONCE THERE'S A NON ISSUE, AND I WANT TO BE FAIR TO BOTH RESIDENTS AND THE BUSINESS ASPECT OF IT. I THINK WE SHOULD RELY MORE ON THE ENFORCEMENT FEATURE FIRST, AND THEN START A TIME CLOCK ABOUT, IS THE OPERATOR GOING TO DO SOMETHING TO REMEDY AFTER THE ENFORCEMENT ACTION. I WOULD REALLY PREFER IT TO BE THAT WAY. THAT WAY WE'RE ACTUALLY ENFORCING AND WE'RE NOT SAYING OPERATOR ENFORCE FIRST. BUT I DO WANT PENALTIES. >> YOU NEED TO DO BOTH. BECAUSE AS IT IS NOW, WE SITE THE VIOLATOR AND THE OWNER NEVER FEELS ANY PAIN. THEY HAVE NO INCENTIVE. >> THERE'S A BIG DISCONNECT. >> WE HAVE COUNCILMAN RAWLINS. HE'S BEEN WAITING. THEN WE HAVE MARIE AND THEN SHARON. >> ACTUALLY, I WAS BEFORE MARIE. I'LL LET HER GO. >> I'M SORRY, SHARON. >> I JUST SEE PUTTING THIS TIME LIMIT TO ME, IS GOING TO CREATE A LOT OF CONTROVERSY AS FAR AS IT'S JUST TO ME OPEN AND AS YOU SAID EARLIER, OPEN UP A CAN OF WORMS. TO ME, IT'S PRETTY SIMPLE. WE'RE TALKING ABOUT PUTTING A NEW REGISTRATION FEE AND LICENSING REQUIREMENT. THAT'S A PERFECT OPPORTUNITY TO EDUCATE ON THESE ISSUANCES OF NEW LICENSES, WHETHER IT'S THE OWNER OR THE DESIGNEE, AS TO HOW WE ARE GOING TO ENFORCE THE RULES. IF THERE IS A COMPLAINT CALLED IN, AND THE MARSHAL SHOWS UP AND AN ACTIVITY MATCHES WHAT THE COMPLAINT WAS, THEN A CITATION IS WRITTEN, OR A WARNING IS WRITTEN. IF A MARSHAL COMES OUT TO THE SAME EXACT ADDRESS, WHETHER IT'S 30 MINUTES OR FOUR HOURS LATER, WELL, THEN A SECOND CITATION IS ISSUED, AND IT'S AT A DIFFERENT LEVEL. WE HAVE THE ABILITY TO EDUCATE THESE DESIGNEES. >> IT DOESN'T WORK. >> PUTTING A TIME LIMIT IS GOING TO WORK? >>HE'S SAYING YOU ENFORCE FIRST, THEN IF HE COME BACK, IT'S A ENFORCEMENT TICKET WRITTEN TO THE VIOLATOR, AND THEN IF I'M THE OPERATOR, GET A PHONE CALL FROM THE MARSHAL, HEY, YOU HAVE A ENFORCEMENT PROBLEM, YOU HAVE AN HOUR, TWO HOURS OR SOMETHING TO WRITE A REPORT, WRITE YOUR REPORT, REPRIMAND, AND THEN THEY GOT MARSHALS HANDLE IT. I'M JUST GOING TO GO BACK TO SLEEP, AND IT HAPPENS AGAIN, OR EVEN DOWN THE ROAD AND THEY DON'T DO A FOLLOW UP, THEN YOU CAN START DOING THE LICENSE OR MARSHAL PERMIT OR SOMETHING. >> THANK YOU. BUT IN OTHER WORDS, TO ME, IT'S PUTTING A WHOLE LOT OF RESPONSIBILITY ON THOSE TWO MARSHALS WE'RE LOOKING AT, AND TO ME, IT COULD CREATE A LOT OF BACK AND FORTH. A LOT OF THESE OWNERS ARE NOT. IT'S NOT LIKE THEY'RE AROUND LIVING IN GALVESTON. THEY'RE LIVING IN CALIFORNIA, THEY'RE LIVING ON THE EAST COAST, AND THEY HAVE A DESIGNEE LIKE A MANAGEMENT COMPANY THAT'S HERE. [02:35:01] AND SO THAT CONNECTION FROM THE MANAGEMENT COMPANY THAT CALLED THE OWNER IN CALIFORNIA TO SAY, "HEY, WE'VE GOTTEN TWO COMPLAINTS." THEY WERE THREE HOURS APART. IT'S PRETTY SIMPLE, LIKE DOCUMENTED WITH A WARNING. IF THEY GO BACK OUT THERE AGAIN, AND THIS IS A SECOND LEVEL. IF THEY GET SIX OF THOSE CITATIONS OVER WHATEVER AMOUNT OF PERIOD, THEN THEIR LICENSE IS REVOKED. WE SAID EARLIER, KEEP IT SIMPLE, STUPID. THAT'S WHAT I'D LIKE TO RELY ON. >> WE HAD WE HAD MARIE, AND SHARON GO AHEAD. >> I WAS JUST TRYING TO RECAP WHAT DON WAS SAYING. THE ISSUE AT THE BEGINNING IS THAT THE OWNER IN NO WAY IS HELD LIABLE BECAUSE THE PERSON WHO IS RENTING OR WHATEVER, GETS THE TICKET OF THE VIOLATION. WHAT YOU'RE TRYING TO MOVE TO, IS THAT THE OWNER BECOMES, IN SOME WAY, RESPONSIBLE, INSTEAD OF THAT THE PERSON THERE CAN GET A CITATION, BUT THE OWNER WILL ALSO. >> IT ALSO SHIFTS THE BURDEN OF ENFORCEMENT. FROM THE MARSHAL TO THE OWNER THE OWNER WHO'S MAKING THE PROFIT FROM THE OPERATION. NOW, IN ALL FAIRNESS, I HAVE TO SAY THAT IN ONE OF MR. FINKLEA'S MEETINGS, THE SHORT TERM RENTAL OWNERS LOOKED AT ME AND SAID, "YOU'RE GOING TO GET A LOT OF PUSHBACK ON THAT HOUR." IT'S SOMETHING TO TALK ABOUT. BUT IF YOU WANT TO GET THE OWNERS TO TAKE MORE RESPONSIBILITY, AND HAVE A MORE ACTIVE MONITORING OF WHAT THEIR PROPERTY IS BEING USED FOR, THAT'S, I THINK THE BETTER WAY TO APPROACH IT. LIKE I SAY, ON THE MICRO LEVEL, GETTING AT THE PROBLEM OWNERS. THERE ARE LOTS OF SHORT TERM RENTALS IN TOWN, THAT ARE NEVER A PROBLEM. >> AFTER YOU'VE STATED THIS, WHAT ELSE DO YOU HAVE? I KNOW BECAUSE I HEAR QUESTIONS, YOU SAID MAYBE AFTER AN HOUR, IF SOMETHING DIDN'T HAPPEN, DO YOU HAVE ANY OTHER SOLUTIONS OR SUGGESTIONS? >> THESE ARE JUST MY IDEAS. >> IDEAS. THAT'S IT. JUST MAYBE THAT HOUR OR TWO HOURS, MARSHAL. >> AFTER AN ACCUMULATED NUMBER OF VIOLATIONS, THE LICENSE COULD BE REVOKED AND I PROVIDED FOR A LICENSING BOARD THAT THE CITY MANAGER IS ON. NOW, THERE ARE PEOPLE WHO COMPLAIN ABOUT THE SHORT TERM RENTAL DOWN THE STREET MAKING TOO MUCH NOISE WHEN IT'S EMPTY BECAUSE THEY DON'T LIKE SHORT TERM RENTALS. I GET THAT. THAT'S A FACTOR THE LICENSING BOARD COULD CONSIDER IN DECIDING WHETHER TO REVOKE A LICENSE. THEY WOULD HAVE SOME DISCRETION. >> WE HAVE COUNCILWOMAN ROBB. GO AHEAD. >> THE HOUR OF RESPONDING IS PRETTY A COMMON THING IN SHORT TERM RENTALS, IN MULTIPLE CITIES AND STATES, AND WHATNOT AND THE ONE WAY, IT JUST CAME TO BE THAT YOU COULD DO IT, THAT WOULD MAKE IT TRACKABLE, IS THEY HAVE TO REPORT THE RESOLUTION TO THE PROBLEM TO THE CALL CENTER WITHIN THE HOUR. >> BECAUSE HOW ELSE? >> PERSONALLY, I'M A LITTLE LEERY ABOUT THE CALL CENTER. HONESTLY BASED ON YOUR EXPERIENCE. >> OUR CALL CENTER. NO, NOT THAT I'M TALKING ABOUT WHEN WE MOVE IT INTO THE CITY. >> OKAY. >> WHEN WE MOVE IT INTO THE CITY AND THEY HAVE AN HOUR TO RESPOND, THE OWNER'S AGENT HAS TO REPORT TO THE CALL CENTER WITHIN AN HOUR, WHAT THE RESOLUTION WAS, AND THAT WOULD GIVE US A WAY TO TRACK IT. >> I WOULD PIGGYBACK OFF OF THAT, AND NOT TO AGAIN, TO FALL ASLEEP THING WHERE YOU GET A PHONE CALL OR YOU'RE THE OPERATOR AND YOU HAVE A RULY GUEST, HAVING THE ABILITY TO SAY, WE ARE ON THE WAY, WE ARE HANDLING IT CURRENTLY AND THEN FOLLOW UP WITH THAT. I THINK YOU HAVE AN HOUR TO SHOW UP. THERE MIGHT BE A LITTLE BIT OF YOU WEREN'T HERE [02:40:01] AN HOUR YOU WERE HERE AN HOUR, 30 MINUTES. IF AN OPERATOR MAKES CONTACT WHEN THERE IS A COMPLAINT, THEN THAT CLOCK STOPS. THEN MARSHALS WON'T BE SENT, BUT IF IT CONTINUES IN THE MARSHALL SENT, THEN WE CAN DO FURTHER ENFORCEMENT. WE'RE ON THE OPERATOR AS WELL. I'M JUST TRYING TO GIVE PEOPLE THE BENEFIT OF THE DOUBT, SO TO SPEAK. >> I THINK WE CAN'T FORGET THAT WHAT THIS IS DOING FOR US, REGARDLESS OF HOW IT'S ENFORCED OR ANYTHING, IT'S GIVEN THE CITY THE STATUTORY AUTHORITY, BUT THEY WOULDN'T HAVE OTHERWISE. IF SOMEBODY DID SOMETHING AND SOMEBODY MESSED UP AND THEY WERE AND THEY WERE HAD TO CORRECT IT, THEY WOULDN'T HAVE ANYTHING HANGING OVER THEIR HEAD, TELLING THEY MUST CORRECT IT. ABOVE ALL ELSE, THIS GIVES THE CITY THE STATUTORY AUTHORITY, THE LEGS TO STAND ON TO AT LEAST HAVE THIS ON THE BOOKS. IF THERE'S SEVERAL OF THESE HAPPENING, THEN THEY CAN GO BACK TO THAT LICENSING BOARD. OTHERWISE, THEY WOULDN'T THE LICENSING BOARD WOULDN'T KNOW WHO THE BAD ACTORS ARE OVER AND OVER AGAIN, AND I THINK ENFORCING IT IS A REAL ISSUE, A STICKY THING TO FIGURE OUT. I REALLY TRUST THE CITY TO FIGURE OUT HOW TO DO THAT. AGAIN, IF WE MONITOR AND PAY ATTENTION TO THIS, IF THERE'S SOMETHING ABOUT IT THAT'S NOT WORKING, WE CAN FIX IT. >> WE HAVE DAVID FINKLEA? >> YES. COUNCIL MEMBER REPREO, TO YOUR POINT, THE IDEA OF HAVING THIS ONE HOUR RESPONSE TIME, YOU HAVE TO ESTABLISH SOME GROUND RULES IN TERMS OF BEING ABLE TO RECTIFY THE COMPLAINT. THE IDEA OF THAT STARTS WITH WHEN AFTER IT COMES INTO DISPATCH AND AND THEN A MARSHALL IS NOTIFIED IS A BASELINE, IF YOU WOULD. WHAT YOU'RE TALKING ABOUT HERE WHEN YOU SAID, OH, HEY, OWNER GETS THE CALL AND IS ABLE TO RECTIFY IT, MARSHALL STILL ON THE WAY. THAT'S A PROCESS ISSUE, I THINK, WHERE THE OWNER THEN CALLS BACK TO DISPATCH, CLOSES OUT THE TICKET, SAYS ISSUES RESOLVED. BUT WE STILL NEED TO HAVE A RESPONSE TIME FOR THE CITY MARSHAL TO GO OUT AND ENSURE THAT THE VIOLATION HAS BEEN ADDRESSED. I SEE YOUR POINT. >> IT'S SIMILAR TO, LIKE, YOU HAVE A BUSINESS AND A CAR CRASHES THROUGH YOUR FRONT DOOR, YOUR FRONT WINDOW AND YOU KNOW, EITHER FIRE POLICE WOULD GIVE THE PROPERTY OWNER A CALL AND SAY, HEY, YOU HAVE, X, Y, Z. SIMILAR DIFFERENT SIMILAR WHERE THE MARSHAL CAN MAKE CONTACT WITH THE OPERATOR AND INFORM THEM AND THEY SAY, WE'RE ON THE WAY, AND IF THEY TELL THE MARSHAL TO GO POUND SAND, WELL, OKAY, WELL, YOU'RE GOING TO GET ENFORCEMENT ACTION ON YOU AS AN OPERATOR. >> BELIEVE ME, IN ALL THE DISCUSSIONS WE'VE HAD, WE'VE GONE THROUGH ALL MACHINATIONS RELATED TO THE PROCESS RELATED TO ENFORCEMENT, AND WHAT THE CITY ATTORNEYS ARE BRINGING FORWARD IS JUST SOME IDEAS THAT IS THE BEST OR MOST REASONABLE SOLUTIONS THAT WE COULD FERRET OUT. >> BUT I'D LIKE TO ADD SOMETHING TO THAT, WHERE, THESE ARE DON'S. IF MAYBE WE COULD ALL, I DON'T WANT TO DO IT NOW, IT WOULD TAKE HOURS, BUT IF WE ALL WORKED ON SOMETHING WHAT WE WOULD THINK COULD WORK. DON COULD WE COULD GIVE IT, TWO, THREE WEEKS, A MONTH, SEND IT OVER TO DON AND, HAVE INPUT FROM EVERYBODY, AND HE CAN PICK THE BEST OF EVERYBODY'S WORLD, AND WE CAN ALL DISCUSS. >> I WOULD NEVER WANT TO BE IN THE POSITION. >> YEAH. >> ASK FROM AMONG YOU. >> WELL, I WOULD SUGGEST THAT MAYBE THAT'S THE PURPOSE OF MAYBE US GOING BACK OUT INTO OUR RESPECTIVE COMMUNITIES AND GATHERING INPUT. >> THAT WOULD BE A GOOD IDEA. I THINK WHAT I DO HERE, COUNSEL, AS WE WRAP THIS DISCUSSION, I THINK COUNSEL OVERALL IS IN SUPPORT OF THE CONCEPT OF THIS ORDINANCE. I THINK COUNSEL IS ALSO SPECIFICALLY IN SUPPORT OF THE LICENSING. I THINK THEY ALSO ARE IN SUPPORT OF IN SOME MANNER, HOLDING THE PROPERTY OWNER RESPONSIBLE. WHAT IS A LITTLE FUZZY HERE IS THE PRACTICALITY OF THE MARSHALS AND THE ONE HOUR RESPONSE AND CONTACTING THE OWNER AND DOCUMENTING A VIOLATION AND SO FORTH. I THINK COUNSELS IN FAVOR OF HAVING SOME REVOCATION PROCESS IF THERE IS A CERTAIN NUMBER OF VIOLATIONS. DOES THAT GIVE YOU ENOUGH GUIDANCE, DON TO MAYBE WORK WITH THIS? HAVE INDIVIDUAL COUNCIL MEMBERS CONTACT DON WITH INPUT ON WHAT YOU WOULD LIKE TO SEE ON THAT ONE HOUR TYPE SITUATION, AND GIVE US TIME TO GET IT OUT IN THE COMMUNITY AND TALK TO OUR CONSTITUENTS. >> WE NEED TO DEVELOP THIS IN TANDEM WITH THE WORK. [02:45:03] >> THERE'S NO DOUBT. >> YES. I TO PULL BUTCH IN NOW. >> YES, SIR SEE WHAT HE THINKS. >> EXACTLY. >> I WANT TO ADD A COUPLE OF THINGS HERE THOUGH. I ADDED A SECTION ON PARKING. THAT'S JUST THE PRESENT PARKING SITUATION IN THE LDRS, WORKS HERE. DOES NOT WORK IN YOUR NEIGHBORHOOD. IF YOU WANT TO REGULATE PARKING, WE HAVE TO THAT'S A WHOLE OTHER PROCESS WE NEED TO GO THROUGH. ONE OF THE PROBLEMS YOU HAVE. >> HOW WOULD YOU DO IT? >> THE PARKING IN A LOT OF YOUR AREAS IS MIXED IN WITH OPEN BEACH PARKING ON THE STREETS. I DON'T KNOW HOW WE CAN FIX THAT. >> THE RENTALS DON'T COUNT AS OPEN BEACH IF THEY'RE PUBLIC. >> THIS IS A POLICY ISSUE, BUT FROM A PRACTICALITY STANDPOINT. THERE ARE A LOT OF GOOD IDEAS HERE. THERE'S A DOLLAR ASSOCIATED WITH ALL OF THESE GOOD IDEAS. THE PREVIOUS DISCUSSION WAS ALMOST AS IF WE WERE TRYING TO TALK ABOUT HOW WE COULD REDUCE THE FEE AND NOW WE'RE ADDING MORE COST TO THE PROGRAM, THOSE ARE DIVERGENT. WE NEED TO MAKE SURE. >> I THINK IT WAS SCALING IT TO WHERE IT WAS APPROPRIATE. IT WOULD PROBABLY MORE FOR LARGER. >> I WANT TO GET BECAUSE, THERE'S A PRICE TAG TO THIS AND I DON'T KNOW, EVERYBODY WANTS ALL THESE RULES AND WE PUT A PRICE TAG TO IT, THEN THERE'S STICKER SHOCK, AND THEN WE DON'T DO IT, THEN WE SHUT DOWN. >> THAT ADDS TO ONE MORE THING. IN HERE, I'VE ADDED A SLIDING WITH A NUMBER OF OCCUPANCY BECAUSE WE CAN'T REGULATE OCCUPANCY AND WHAT I WAS THINKING WAS, WE CAN SET A VIOLATION BECAUSE THE OWNER IS ALLOWING MORE PEOPLE IN THAN WHAT THEY CHOSE TO LICENSE FOR. HOWEVER, THE CITY IS NOT AUTHORIZED TO LEVY A TAX. WE CAN LEVY A FEE. AS LONG AS THE FEE HAS A RATIONAL RELATIONSHIP TO THE COSTS INCURRED BY THE CITY IN ITS ENFORCEMENT. WHAT MR. BUCKLEY POINTED OUT TO ME THE OTHER DAY IS YOU COULD EASILY HAVE A SHORT TERM RENTAL THAT ACCOMMODATES 10 PEOPLE ALL THE TIME THAT IS WELL RUN, AND WE NEVER HEAR A PEEP OUT OF IT. OR HAVE A TWO PERSON SHORT TERM RENTAL THAT IS JUST AN ONGOING CIRCUS FROM SEASON DAY 1 THROUGH 380. WE HAVE TO HAVE DATA TO SUPPORT THAT LARGER OCCUPIED UNITS REQUIRE MORE ENFORCEMENT EFFORTS THAN DO SMALLER UNITS. >> HOLD ON. BACK TO BRIAN'S POINT. I THINK THAT'S ONE WAY OF LOOKING ANOTHER WAY OF LOOKING AT IT IS MAKING SURE WE GET THE SCOPE OF THIS WHOLE THING THAT WILL PROTECT THE PEOPLE OF GALVESTON AND THEN LET THAT DRIVE THE FEE. >> I AGREE. >> RATHER THAN THE OTHER WAY AROUND. I THINK THAT'S RATHER THAN COMING AT ARBITRARY FEE LIKE YOU HAD TO DO THE FIRST TIME. NOW WE GOT THE TOOLS AND I THINK IN GETTING THE DATA TO HAVE IT THE OTHER WAY AROUND. >> I AGREE. >> I THINK BABA SAYING IS RIGHT ON, AND I JUST HOPE WE DO IT SOONER THAN LATER. >> YOU MADE A GOOD POINT ABOUT MEASURING THE IMPACT, I GUESS. IF YOU HAVE BAD ACTOR THAT'S HAD SEVERAL VIOLATIONS, MAYBE THE FOLLOWING YEAR, HIS REGISTRATION GOES UP BECAUSE WE SPEND MORE TIME DEALING WITH HIM THAN WE DO SAY AN OWNER OCCUPIED STR THAT'S, JUST A MEMBER OF WE NEVER HEAR ANY COMPLAINTS. >> I PERSONALLY THINK OCCUPANCY IS JUST A MESS. I DON'T THINK WE'LL BE ABLE TO FIGURE THIS OUT BECAUSE IF THEY'RE SUPPOSED TO HAVE EIGHT PEOPLE IN THE UNIT, AND NOW THEY COME OVER AND THEY HAVE LIKE YOU SAID, A WEDDING RECEPTION, THEY HAVE MORE PEOPLE SHOW UP NOW OR IN THE UNIT, ARE THEY IN VIOLATION OF THEIR OCCUPANCY? IT'S A REAL DIFFICULT THING TO MANAGE. >> IT'S MORE ABOUT THAT'S WHY YOU HAVE TO HAVE ENFORCEMENT AT NIGHT BECAUSE THE ISSUES COME OUT AT NIGHT DURING THAT DAY WHERE SOMEBODY MIGHT HAVE A PARTY, BUT THEN THAT'S DONE WITH. BUT IF YOU HAVE IS 42 CARS OVERNIGHT, YOU KNOW THAT THERE'S MORE THAN SIX PEOPLE SLEEPING OVER. >> I GIVE AN EXAMPLE OF PARENTS COMING IN RENTING A LARGE BEACH HOUSE AND TURNING IT OVER TO THE HIGH SCHOOL CLASS FOR THEIR GRADUATION WEEKEND AND LEAVING THE KIDS TO THEIR OWN DEVICES. [02:50:04] >> NO. ARE WE FINISHED WITH OUR INPUT HERE? >> TALK ABOUT TIME FRAME FOR GETTING BACK INPUT BACK TO COUNSEL. WE'RE NOW BEING DISMISSED INTO OUR RESPECTIVE AREAS TO GO GATHER INPUT. >> LET ME ASK STAFF. FIRST OF ALL, BRIAN, BASED ON THE FIRST CONVERSATION WE HAD ABOUT THE MANAGEMENT OF THE SHORT TERM RENTAL FEE AND BRINGING EVERYTHING IN HOUSE AND BRINGING BACK THOSE SUGGESTIONS, HOW MUCH TIME DO YOU NEED FOR ALL THAT? >> GIVE US A COUPLE OF COUNCIL MEETINGS TO GET IT BACK TO YOU. >> WE'RE PROBABLY LOOKING MAYBE SEPTEMBER BEFORE WE GET THAT. >> AUGUST. >> AUGUST, SEPTEMBER. >> IT'S MEDDLED IN WITH BUDGET FOR US AND LIKE I TOLD YOU THE OTHER DAY OUR BENCH IN REAL DEEP. WE'LL DO AS BEST WE CAN TO GET IT TO AS QUICK AS WE CAN. >> DOES THAT GIVE COUNCIL ENOUGH TIME TO SAY WE PUT IT ON THE AUGUST AGENDA TO GIVE. >> I'D LIKE JUST TO ADD ONE SIMILAR TO WHAT WE'RE PROPOSING, IT'S EXCEPT A PERMIT FOR SOME ZONES. THE MAXIMUM OCCUPANCY IS TWO PEOPLE PER LEGAL BEDROOM PLUS FOUR EXTRA PEOPLE PER DWELLING UNIT. THEN THE REGISTRATION FEES ARE BASED ON UNIT SIZE AND THE WHAT THEY'RE DO AT THE BEGINNING. THEN PROPERTIES MUST HAVE RESPONSIBLE PARTY LIVING WITHIN 30 MILES AND BE ON SITE WITHIN ONE HOUR IF NEEDED. WE'RE NOT DOING MUCH DIFFERENTLY, BUT I THINK THE DEFINING UNIT SIZE BED I THINK THAT'S IMPORTANT TOO, AND THAT WAY WE CAN DO A SCALING. >> THEN WE GET IT DOWN TO WHAT'S A BEDROOM? >> I'M IN A SQUARE FOOT THING. >> I LIKE TO THAT. >> WE CAN'T QUIT. >> THAT'S A LITTLE MORE ENFORCEABLE. >> WE CAN LOOK AT BOTH AND SEE WHICH FEES WORKS BETTER FOR US AND BUDGETS. >> WELL, SORRY, GO AHEAD HERE. >> THANK YOU, COUNSEL. I THOUGHT THERE WAS A GREAT DISCUSSION AND WE'LL HAVE THIS ON THE AUGUST AGENDA, AND WE'LL BRING BACK OUR THOUGHTS AND YOU'LL BE BRINGING RECOMMENDATIONS FORWARD AT THAT. >> AUGUST IS THE WORST MEETING TO DO IT BECAUSE THAT'S WHEN THEY'RE BRINGING THE TEXT. WHY DON'T WE GO WITH SEPTEMBER? >> SEPTEMBER IS FINE. >> YOU'RE NOT GOING TO GET THIS RESOLVED THIS SEASON. >> LET'S DO IT IN SEPTEMBER. IS SEPTEMBER COMFORTABLE WITH EVERYBODY? >> WE COULD ADDRESS ONE THING BEFORE THEN. IT'S PERHAPS SHIFTING THE TIME ON THE WEEKENDS OF THE MARSHALL SOMEHOW. >> THE ISSUE IS THAT IF I TAKE THEM OFF THEIR DAY WORK, THEN ALL THE STUFF THAT THEY'RE GETTING ACCOMPLISHED ON THE DAY WORK IS GOING TO STOP. THEY'RE NOT GOING TO BE ENFORCING PERMITS AND THINGS LIKE THAT, THAT GO. >> ON A SATURDAY AND SUNDAY, ARE THEY DOING THAT? >> YES. >> OH YEAH. BIG TIME. >> IT'S WHY THEY'RE THERE PRIMARILY. >> WELL, THEN WE'RE GOING TO HAVE TO GET PD TO RESPOND TO. PEOPLE FEEL LIKE EVERYONE RESPONDING. >> RIGHT RIGHT NOW IN SITUATION, IF SOMEBODY IS VIOLATING A CITY ORDINANCE, THEY NEED TO CALL 911 AND SOMEBODY WILL RESPOND. >> BUT HERE WE GO AGAIN. SOMETIMES THEY JUST CALL ON AND WE NEVER GET THAT PIECE OF DATA. >> WELL, UNTIL WE CAN GET ALL THIS IMPLEMENTED, THE DATA IS GOING TO BE INCOMPLETE. >> WELL, IT'S HARD TO IMPLEMENT IT. >> THEY'RE TOLD NOT TO CALL 911, THEY'RE TOLD TO CALL THE NON EMERGENCY. >> CURE CANCER HERE. WE CAN TRY. >> COUNSEL, IT IS 12:02 P.M. WE ARE GOING TO RETIRE INTO [4. EXECUTIVE SESSION] EXECUTIVE SESSION PURSUANT TO TEXAS GOVERNMENT CODE 551.071 CONSULTATION WITH ATTORNEY. A EXECUTIVE SESSION WILL BE CONDUCTED TO DISCUSS AND RECEIVE LEGAL ADVICE CONCERNING PENDING LITIGATION IN DO A SETTLEMENT OFFER OR ON A MATTER IN WHICH THE DUTY OF THE ATTORNEY TO THE GOVERNMENT BODY UNDER THE TEXAS DISCIPLINARY RULES OF PROFESSIONAL CONDUCT OF THE STATE BAR OF TEXAS CLEARLY CONFLICTS WITH THIS CHAPTER RELATED TO THE FOLLOWING. DISCUSSION OF THE STATUS OF THE NEW PELICAN ISLAND BRIDGE, DISCUSSION OF MANAGEMENT OF NON AGENDA ITEMS AND PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551.072 DELIBERATION REGARDING REAL PROPERTY TO DISCUSS THE PURCHASE, EXCHANGE, LEASE OR VALUE OF REAL PROPERTY, FOUR B ONE, DISCUSSION OF 59TH STREET LAND ACQUISITION AND THE USE OF EMINENT DOBBING. WE ARE NOW IN EXECUTIVE SESSION. [02:55:16] IT IS 1:43 P.M. WE ARE NOW OUT OF EXECUTIVE SESSION. WE HAVE GONE THROUGH EVERYTHING ON OUR WORKSHOP AGENDA. COUNSEL, WE ARE ADJOURNED. THANK YOU. >> THANK YOU. * This transcript was compiled from uncorrected Closed Captioning.