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[ CITY OF BAYTOWN NOTICE OF MEETING   CITY COUNCIL WORK SESSION THURSDAY, MAY 28, 2026 4:30 P.M. COUNCIL CHAMBER, CITY HALL 2401 MARKET STREET, BAYTOWN, TEXAS 77520 AGENDA    CALL TO ORDER AND ANNOUNCEMENT OF QUORUM      ]

[00:00:03]

I'M NOT VERY STRONG ON THAT.

SO, UM, I KNOW, I KNOW CARL.

I NOW CALL THE ORDER TO THE CITY COUNCIL WORK SESSION ON THURSDAY, MAY 28TH, 2026, 4:30 PM AND THE CITY COUNCIL CHAMBER, CITY HALL IN THE ANNOUNCEMENT OF QUORUM.

UM, IT IS 4:37 PM UM, SO FIRST WE'LL START WITH ANY CITIZEN COMMENTS.

DO WE HAVE ANY? NO, MA'AM.

OKAY.

SO THERE

[a. Receive a presentation regarding the Utility Billing Leak Adjustment practices.]

BEING NO CITY COMMENTS.

THIS INCLUDES THE CITIZEN'S COMMENT PORTION OF THE AGENDA.

WE'LL MOVE FORWARD TO ITEM TWO A IS RECEIVE A PRESENTATION REGARDING THE UTILITY BILLING LEAK ADJUSTMENT PRACTICES.

MS. TERESA? UH, NO.

I THINK Y'ALL GOT HER NERVOUS.

EVERYBODY RUNNING AROUND.

OH, THERE SHE, SHE ON TIME.

OH, OKAY.

THERE SHE IS MAKING AN ENTRANCE.

, Y'ALL WRONG FOR THAT.

.

NO, YOU ARE WRONG FOR BEING LATE .

I WAS HERE.

THE FLOOR IS YOURS, MA'AM.

OKAY.

GOOD EVENING, MAYOR AND COUNCIL.

UM, AS YOU KNOW, YOU PROBABLY GET CALLS REGARDING, UH, HIGH WATER USAGE WITH THE CITIZENS OF BAYTOWN.

SO WE FEEL LIKE THE PURPOSE OF THIS MEETING, A PRESENTATION, WE WOULD LIKE TO PRESENT TO YOU OUR POLICY ON LEAK ADJUSTMENTS, JUST SO THAT WE CAN PROVIDE CLARITY, CONSISTENCY, WHAT'S WRONG, OH, AND A FAIR AND REASONABLE APPROACH TO THE CITIZENS OF BAYTOWN REGARDING LEAK ADJUSTMENTS.

SO WE'RE GONNA TALK ABOUT LEAK ADJUSTMENTS TODAY AND WHAT WE'RE DOING IN OUR CURRENT PROCESS.

WE ARE GONNA PROVIDE SOME RECOMMENDATIONS AND THEN WE'RE GONNA HIGHLIGHT, UH, A FEW COMMUNITY STANDARDS, UH, AROUND SURROUNDING CITIES AROUND US.

AND THEN I'M GONNA SUMMARIZE, UH, OUR RECOMMENDATION AND THEN WE CAN OPEN IT UP FOR DISCUSSION.

BUT OF COURSE, FEEL FREE TO INTERRUPT ME ANYTIME YOU WANT TO ASK QUESTIONS.

OKAY.

SO WHEN THE CITY OF BAYTOWN IS REFERRING TO A LEAK ADJUSTMENT, WE ARE DISCUSSING A BILLING CREDIT THAT WE ARE APPLYING TO A CUSTOMER'S BILL THAT IS USUALLY A HIGH WATER BILL THAT THEY'RE CALLING TO COMPLAIN ABOUT.

UM, RIGHT NOW OUR CURRENT PRACTICE, WE SUBMIT THE REQUEST TO SUBMIT IT IN WRITING AND OUR UTILITY BILLING MANAGER REVIEWS IT.

TYPICALLY, OUR STAFF WILL GO OUT TO THE RESIDENTS AND, UH, PROVIDE A DATA LOG OF THE ACTIVITY.

AND THEN IF THE REQUEST IS APPROVED, AN ADJUSTMENT IS BASED ON THE SIX MONTH AVERAGE.

AND CURRENTLY AT THIS TIME, WE DO NOT HAVE A LIMIT ON THE NUMBER OF ADJUSTMENTS THAT WE CAN PROVIDE TO A CUSTOMER, UH, THROUGHOUT THE YEAR.

SO BASED ON OUR CURRENT PRACTICE, THIS IS THE THREE YEAR FINANCIAL IMPACT.

I WILL NOT READ ALL OF THE YEARS, BUT, UH, THE DIFFERENCE BETWEEN FY 24 AND THE FOLLOWING YEARS 25 AND 26, UM, WE BELIEVE IS CONTRIBUTED TO, UM, WHEN WE DID NOT HAVE THE SEWER CAP OF 12,000 ON OUR, UH, CUSTOMER'S BILLS.

FOR THE SEWER PORTION, WE APPLY OUR LEAK ADJUSTMENTS ONLY TO THE SEWER PORTION.

AS YOU CAN SEE, THE COMMERCIAL, UH, CUSTOMERS, UH, RANGE AROUND, UH, 66,000.

AND AS OF FY 26 WE'RE AT 162,000.

AT THIS TIME, OUR THREE YEAR RESIDENTIAL TOTAL IS 108,000, AND OUR THREE YEAR COMMERCIAL TOTAL IS AROUND 297,000 FOR A TOTAL OF 405,000 FOR THREE YEARS.

NOW THIS AGAIN, IS ONLY ON OUR SEWER PORTION OF, UM, OF THE BILL.

SO WE, BASED ON THAT INFORMATION AND OTHER INFORMATION WE'LL TALK ABOUT LATER, UM, WE ARE RECOMMENDING THAT WE'LL APPLY THE, WE SHOULD APPLY THE ADJUSTMENT ON THE WATER AND SEWER PORTION OF THE BILL, AND I'LL SHOW YOU A SAMPLE OF WHY WE ARE MAKING THAT RECOMMENDATION.

WE'RE ALSO RECOMMENDING THAT WE DO IT ONLY FOR RESIDENTIAL CUSTOMERS AND THAT WE REMOVE THE ADJUSTMENT FOR, UH, COMMERCIAL, COMMERCIAL CUSTOMERS AND THAT WE LIMIT THE ADJUSTMENTS TO TWO TIMES A YEAR, WHICH WOULD BE IN ALIGNMENT WITH OUR PAYMENT PLAN AND THEN ALSO REQUIRED DOCUMENTATION TO RECEIVE AN ADJUSTMENT.

SO CURRENTLY, UH, A PART OF OUR RESEARCH WAS WE COMPARED 15 CITIES WITHIN THE SURROUNDING AREA, AND AS YOU CAN SEE, THERE IS NOT A SET STANDARD FOR HOW THESE, UH, LEAK ADJUSTMENTS ARE BEING APPLIED.

SOME CITIES APPLY ADJUSTMENTS TO WATER AND RESIDENTIAL, AND THEN SOME APPLY JUST FOR COMMERCIAL.

AND THEN WE HAVE ONE THAT JUST DOES IT FOR RESIDENTIAL ONLY, AND THEN SOME THAT DO WATER AND SEWER

[00:05:01]

ADJUSTMENTS, AND THEN A FEW THAT HAVE NO ADJUSTMENTS WHATSOEVER.

SO BASED ON THAT INFORMATION AS THERE'S NO REAL STANDARD IS SOMETHING THAT WE HAVE TO COME UP WITH THAT IS, UH, FAIR AND CONSISTENT FOR OUR RESIDENTS.

UM, I WANNA SHOW YOU AN EXAMPLE OF WHAT'S HAPPENING CURRENTLY WITH OUR CURRENT PROCESS.

SO LET'S SAY YOU'RE A CUSTOMER AND YOU HAVE AN AVERAGE BILL OF 6,000 GALLONS.

YOU'RE A BILL WILL BE AROUND $146.

IF YOU RECEIVE A HIGH BILL OF 25,000 GALLONS, YOUR BILL WILL JUMP TO 390, AROUND $392.

SO WHEN YOU REQUEST THAT YOU RECEIVE A LEAK ADJUSTMENT, THE CREDIT THAT YOU'LL RECEIVE, IF YOU LOOK AT THE SEWER LINE, IS ONLY $48 AND 54 CENTS.

THAT'S THE CREDIT THAT YOU WOULD RECEIVE ON YOUR BILL.

SO YOUR BILL WOULD GO DOWN TO $343 BASED ON OUR PROPOSED, UM, RECOMMENDATIONS.

YOUR BILL WOULD GO BACK TO THE $146 AND YOUR CREDIT WOULD BE $245 IF WE APPLY THE CREDIT TO BOTH WATER AND SEWER.

SO BASED ON THAT INFORMATION, WE ARE RECOMMENDING OUR CURRENT STATUS IS SEWER ONLY FOR RESIDENTIAL AND COMMERCIAL.

OUR NUMBER OF ADJUSTMENTS ARE UNLIMITED.

WE ARE ONLY REQUESTING THAT THEY PROVIDE US A REASON ON WHY THEY'RE REQUESTING THE ADJUSTMENT.

AND THE FINANCIAL IMPACT OVER THREE YEARS IS 405,000.

WE ARE PROPOSING WATER AND SEWER FOR RESIDENTIAL ONLY AND REMOVING THE, UM, ADJUSTMENT ON COMMERCIAL JUST TO TRY TO BE BETTER STEWARDS OF THE CITY'S REVENUE.

BUT OF COURSE THAT OPTION IS UP TO YOU.

UM, WHATEVER YOU WOULD LIKE US TO BRING BACK TO YOU IS FINE.

UM, WE ARE WANTING TO LIMIT THE ADJUSTMENTS TO A YEAR, AND WE ARE WOULD LIKE TO REQUIRE DOCUMENTATION OF A LEAK REPAIR.

IT COULD BE RECEIPTS IF THEY FIXED IT ON THEIR OWN, BUT JUST DOCUMENTATION OF SOME FORM OF, UH, REPAIR THAT ACTUALLY TOOK PLACE FOR THE LEAK SO THAT WE CAN ENSURE THAT IT'S NOT JUST USAGE THAT WAS JUST USED FOR TO FILL A POOL OR WHATEVER THE REASONS WERE.

AND THEN ALSO THE FINANCIAL IMPACT THAT WE'RE ESTIMATING IF WE REDUCE IT TO JUST WATER AND SEW FOR RESIDENTIAL ONLY WILL BE $217,000.

AND SO WITH THAT, UM, THAT IS THE END OF THE PRESENTATION AND I'M HAPPY TO ANSWER ANY QUESTIONS IF YOU HAVE ANY.

THANK YOU.

OPEN IT UP TO ALL OF YOU IF YOU HAVE ANY QUESTIONS, COMMENTS? NO, EXCUSE ME, MIKE.

A COUPLE OF COMMENTS.

AND I THINK YOU ANSWERED IT AS FAR AS THE REQUIRED DOCUMENTATION.

YOU SAID IT, YOU WANT A WRITTEN REQUEST MM-HMM .

FOR THE ADJUSTMENT AND JUST A SIMPLE REASON FROM THE RESIDENT, AND THEN ALSO DOCUMENTATION OF REPAIR.

AND IT'S LIKE, WELL, I HAD A FAUCET LEAKING OUTSIDE AND I'VE REPLACED THE O-RINGS IN IT AND STOPPED THE LEAK.

MM-HMM .

IS THAT SUFFICIENT? YES.

OKAY.

AND THEY CAN PROVIDE THE RECEIPT OR THAT THEY PURCHASE FOR THOSE ITEMS OR? YES, THAT WOULD BE SUFFICIENT.

AND, AND I'LL PICK ON MYSELF BECAUSE I'VE USED THE ADJUSTMENT ONCE A COUPLE OF YEARS AGO AND I HAD A OUTDOOR FAUCET THAT WAS DRIPPING MM-HMM .

BUT IT HAD A HOSE ATTACHED TO IT AND THE HOSE WAS STRUNG OUT IN THE YARD.

I WASN'T PAYING ATTENTION TO IT.

SO, AND IT'S AMAZING HOW, AND IT WAS JUST A FAST DRIP, BUT THAT FAST DRIP WAS QUITE A BIT OF WATER GOING THROUGH, BUT WE ONLY ADJUSTED THE SEWER NOW.

SO, BUT IT WAS AN ADJUSTMENT, BUT I WAS ABLE TO FIX THAT MYSELF.

AND THEY, THEY TOOK THAT AS A, YOU KNOW, ONE, IT WAS THE REASON AND TWO THAT I COULD SHOW 'EM THAT I FIXED IT.

MM-HMM .

SO I'M GOOD WITH THAT AND I'M GOOD WITH KEEPING IT TO RESIDENTIAL LOAN INSTEAD THE COMMERCIAL, MY THOUGHT PROCESS ON THAT, IF IT'S COMMERCIAL, THERE'S SOMEBODY AT THE BUSINESS EVERY DAY OR, YOU KNOW, AT LEAST SIX DAYS A WEEK DOING SOMETHING.

SO THEY WOULD NOTICE IF THERE'S A LEAK OR NOT, WHERE A RESIDENTS COULD BE GONE FOR A WEEKEND OR, OR GONE FOR TWO, THREE DAYS OF VACATION OR SOMETHING LIKE THAT AND NOT SEE THAT.

SO I'M, I'M GOOD WITH BOTH THAT GOOD JOB.

I APPRECIATE IT, JACOB.

YEAH, I, I AGREE WITH EVERYTHING YOU'VE RECOMMENDED HERE.

UM, I APPRECIATE YOU PUTTING, PUTTING THE WORK IN.

UM, YEAH, I MEAN, ULTIMATELY THE, THE GOAL IS TO ENCOURAGE FOLKS TO FIX, FIX THE LEAKS, RIGHT? MM-HMM .

UM, JUST SO THAT'S LESS WATER WE'RE HAVING TO PROCESS AND, AND PRODUCE.

SO, UM, YEAH.

I AGREE.

APPRECIATE IT.

MM-HMM .

YEAH, I'M GOOD WITH IT.

.

I LIKED IT.

YEAH.

I LIKED IT WAS, YOU KNOW, YOU MOVE INTO THE RESIDENTIAL, THAT WAS KIND OF MY CONCERN OF, YOU KNOW, COMMERCIAL, YOU HAVE A COMMERCIAL BUSINESS, YOU NEED TO BE RESPONSIBLE FOR WHAT'S GOING IN AND OUTTA YOUR, OUTTA YOUR BUSINESS AND WHAT, WHAT YOU'RE DEALING WITH.

SO, UH, I'M, I'M COMPLETELY AGREE WITH THAT.

I LIKE THAT IT'S TWO A YEAR BECAUSE THERE'S, THERE'S PEOPLE THAT CAN ABUSE IT OR I CAN GET THAT.

AND HAVING THE DOCUMENTATION OF THE RECEIPT AND WHY, WHAT THE REPAIR WAS, YOU KNOW, GIVES US A LITTLE INSIGHT TO WHAT'S GOING ON THERE.

UH, YOU KNOW, SOMEONE COMES AND SAYS, HEY,

[00:10:01]

I HAD A 20,000 GALLON LEAK AND IT WAS JUST A O-RING ON A WATER FAUCET.

I'D BE LIKE, AH, NO, YOU DID SOMETHING ELSE.

YEAH.

THAT'S NOT GONNA FIX THE PROBLEM.

RIGHT.

SO YOU CAN KIND OF SEE WHAT, WHAT SOME OF THE ISSUES WOULD BE ON THAT PART.

IT WAS DOCUMENTED.

SO I APPRECIATE THAT AND I APPRECIATE THE WORK YOU PUT INTO IT.

OKAY.

SO I JUST WANNA ADD THAT WHEN WE, UM, WHICH WE'RE PRESENTING TO YOU LATER FOR THE WATER METER REPLACEMENT PROGRAM, WE FEEL LIKE A LOT OF THESE ISSUES WILL GO AWAY BECAUSE THE CUSTOMER WILL HAVE REAL TIME DATA TO ADDRESS ISSUES WAY BEFORE, UM, IT GETS DOWN THE ROAD.

SO, UM, BUT THIS IS, YOU KNOW, STILL SOMETHING WE WANNA BE ABLE TO PROVIDE TO THE CITIZENS OF BAYTOWN.

OKAY.

WELL, I DID EXPECT LIKE A HUGE CONVERSATION ABOUT THIS, SO I HAD LIKE TONS OF QUESTIONS.

, BUT NO .

I'M JUST KIDDING.

I DON'T, UM, SO I, I DO AGREE WITH MY COLLEAGUES AND I APPRECIATE YOU BRINGING THIS FORTH AND, UM, UH, THE ONLY, UM, QUESTION THAT I HAVE, ESPECIALLY BECAUSE I, I KNOW MY NEIGHBORS, I KNOW SOME OF THE ONES THAT HAVE HAD ISSUES, UM, AND THEY DON'T GO OUT AND BUY BECAUSE THEY HAVE STOCKS OF THINGS AT HOME.

AND SO WHAT IF SOMEBODY LIKE, HEY, I HAVE A LEAK.

UM, I HAVE SUPPLIES AT HOME ALREADY, AND THEY DON'T HAVE RECEIPTS TO SHOW THAT, YOU KNOW, HEY, I FIXED IT.

SO WOULD YOU BE OKAY WITH US APPROVING THAT OR I MEAN, 'CAUSE WE CAN DO WHATEVER YOU GUYS WANT US TO DO AND WHATEVER YOU FEEL LIKE IS APPROPRIATE.

I DEFINITELY WANT Y'ALL'S INPUT ON THIS.

'CAUSE WELL, I WOULD SAY, I MEAN, WITH THE NEW METERS, LIKE IF THERE WAS A LEAK AND THERE'S NO LONGER A LEAK, WE SHOULD LIKE SEE A STEP CHANGE, RIGHT? I MEAN, YOU SHOULD.

SO I WOULD THINK WE'D BE ABLE TO LOOK AT IF, TELL US, HEY, I MADE A REPAIR ON THIS DAY.

MM-HMM .

I DON'T HAVE RECEIPTS 'CAUSE I HAD SOME SPARE FITTINGS AROUND THE HOUSE.

MM-HMM .

WE SHOULD BE ABLE TO SEE A STEP CHANGE THAT DAY.

RIGHT.

I AGREE WITH YOU LOT.

SO MAYBE WE CAN USE THE NEW METER DATA TO HELP IN THAT DECISION.

YEAH.

OKAY.

I LIKE THAT.

THANK YOU.

MM-HMM .

SO I WOULD BE OKAY WITH THAT.

UM, BECAUSE AGAIN, SOME PEOPLE MAY ALREADY HAVE THINGS AT HOME.

THAT'S TRUE.

UM, AND SO I WANNA MAKE SURE THAT WE'RE ABLE TO SOMEHOW HELP THEM AS WELL.

OKAY.

UM, SO I HAVE NO PROBLEMS WITH EVERYTHING THAT WAS DISCUSSED.

YEAH.

AND, AND THAT WAS MY COMMENTS WHY I ASKED, BECAUSE WHEN I FIXED MY FAUCET, I ALREADY HAD THE MM-HMM .

THE O-RINGS AND STUFF TO FIX IT.

YEAH.

I JUST DIDN'T KNOW IT WAS LEAKING AND IT WAS SCREW DOWN TIGHT, BUT IT WAS JUST DRIPPING.

YEAH.

AND SO, YEAH, IT IS KIND OF, IF I GIVE YOU SOMETHING IN WRITING, AND AGAIN, I AGREE WITH, YOU HAVE TO REQUEST IT IN WRITING AND THEN YOU HAVE TO TELL US WHAT YOU DID TO FIX IT.

MM-HMM .

BUT WE, YOU SHOULD SEE A PRETTY QUICK CHANGE IN USAGE.

UM, BUT YEAH, I HAD, I DIDN'T GO BUY ANYTHING.

I HAD A BOX OF THEM.

YOU KNOW, YOU ACCUMULATE THOSE THINGS OVER THE YEARS.

RIGHT.

'CAUSE YOU KNOW, YOU NEED ONE, YOU CAN'T FIND IT AND YOU GO BUY ANOTHER BOX AND THEN YOU FIND THE FIRST BOX MM-HMM .

UH, NOW YOU HAVE TWO BOXES OF THEM.

SO, UM, BUT YEAH, I, I WOULD BE OKAY WITH, AS LONG AS IT'S WRITING OUT IT WAS A LEAK, YOU KNOW, REASON WAS IS THE LEAKING FAUCET, IT CHANGED THE O-RINGS IN IT LEAK STOPPED.

YEAH.

I'M GOOD WITH THAT.

FIXED IT ON SUCH DATES.

YEAH.

AND THEN THAT WAY WE CAN LOOK AT ANY DIFFERENCE IN THE METER.

I'M GOOD WITH THAT.

UM, SO, UH, AND, AND I KNOW WE'RE JUST DISCUSSING TODAY MM-HMM .

WE AREN'T MAKING ANY DECISIONS.

'CAUSE I KNOW PROBABLY SOME OF OUR COLLEAGUES MAY HAVE INPUT ON THAT AS WELL.

MM-HMM .

UM, SO I'D LIKE TO HEAR WHAT THEY MAY HAVE TO SAY, BUT AT LEAST THIS IS KIND OF THE DIRECTION FOR RIGHT NOW.

UM, JASON, DID YOU HAVE SOMETHING? I DID HAVE, I HAVE TWO QUESTIONS FOR Y'ALL AS WE KIND OF MOVE FORWARD, OR A COMMENT AND TWO QUESTIONS.

UM, THE QUESTION IS, I I, DO Y'ALL UNDERSTAND THAT COMMERCIAL MEANS NOT, THIS WILL NOT APPLY TO APARTMENTS EITHER? YES.

OKAY.

CORRECT.

APARTMENTS NEED TO TAKE CARE OF THEIR APARTMENTS.

'CAUSE THAT'S GONNA TIE INTO THE SHORT-TERM RENTAL CONVERSATION.

THAT'S WHAT WE WERE CONSULTING ABOUT.

WE HAVE TO BE CONSISTENT ON HOW WE'RE DEFINING THINGS.

YES, I AGREE.

UM, SO THAT DOES NOT APPLY TO APARTMENTS FOR THE ADJUSTMENTS.

THE NEXT THING IS, AS WE'RE BUILDING THE LEAK ADJUSTMENT OR, OR UPDATE, DO Y'ALL WANT THIS TO BE EFFECTIVE WHEN WE BRING THIS BACK? OR IS THIS SOMETHING Y'ALL ARE PLANNING FOR THE FY 27 BUDGET TO TAKE EFFECT? UM, LET'S SEE.

WHY SHOULDN'T BE EFFECTIVE RIGHT AWAY? YEAH.

WE'RE OKAY WITH IT RIGHT AWAY, RIGHT? NO, I THINK IT'S, I'M FINE WITH IT RIGHT AWAY AS SOON AS WE APPROVE IT.

RIGHT.

THAT'S WHAT I'M SAYING.

AGREE.

I'M FINE WITH IT GOING INTO EFFECT IMMEDIATELY.

OKAY.

YOU OKAY WITH THAT? MM-HMM .

WE HAVE A CONSENSUS.

SO NEXT STEPS WILL BE BRINGING BACK, UH, AN ORDINANCE FOR YOU GUYS TO APPROVE.

UM, AND THEN WE DO PLAN TO PUT OUR POLICY ON THE WEBSITE TO PROVIDE MORE EDUCATION TO THE CUSTOMERS.

OKAY.

AND I WILL MAKE A COMMENT, UH, MAYOR PROTI THAT THE, WE STARTED EARLY TODAY MM-HMM .

BECAUSE WE, WE DO MURDER BOARD ALL OF OUR PRESENTATIONS BEFORE THEY COME TO COUNCIL.

UM, WE, UH, THE DIRECTORS GAVE THERESA AND HER TEAM A HARD TIME.

WE, THIS WAS A 45 MINUTE, UH, PRESENTATION WHEN IT RAN THROUGH WITH THE DIRECTORS MM-HMM .

AND, UH, SO WE

[00:15:01]

WERE BASING THAT.

AND ALSO, THIS IS A LOT OF QUESTIONS.

WE, WE TRY TO ANSWER, ASK QUESTIONS AS THE COUNCIL WOULD ASK QUESTIONS TO TRY TO HELP FACILITATE THIS CONCRETE .

THERE WAS NO CONCRETE DISCUSSION WHO HAD IT, WHO HAD IT.

THERE WAS NO CONCRETE DISCUSSION AND, UM, UH, TACKLED ONTO THE SHORT TERM RENTAL.

WE HAD NO IDEA HOW LONG THIS THIS WORK SESSION WOULD BE.

SO UNDERSTOOD.

UNDERSTOOD.

UH, I THOUGHT IT WAS GONNA BE A LONG ONE AS WELL.

BUT THAT, THAT'S OKAY.

UM, I, THE ONLY THING I WOULD ASK, UH, MR. CITY MANAGER, IF YOU CAN GET WITH OUR COLLEAGUES, JUST TO MAKE SURE YOU GET ANY DEEP DOWN QUESTIONS THAT THEY MAY HAVE.

AND IF THERE'S SOMETHING MAJOR, MAYBE YOU CAN JUST EMAIL ALL OF US.

YES, MA'AM.

AS YOU USUALLY DO.

JUST, HEY, THESE QUESTIONS CAME UP AND THAT WAY WE'RE ALSO AWARE.

I, WE GOOD? YES, MA'AM.

OKAY.

ALL RIGHT.

SO, UM,

[b. Discussion regarding a proposed Unified Land Development Code amendment pertaining to Short Term Rentals.]

MOVING ON TO ITEM TWO B IS TO, UH, DISCUSS A, UH, PROPOSED UNIFIED LAND DEVELOPMENT CODE AMENDMENT PERTAINING TO SHORT TERM RENTALS.

MR. SCRIBNER, GOOD EVENING.

AFTERNOON COUNCIL MEMBERS.

UH, HOLD ON.

LEMME FIND IT.

THAT MUST BE THE ONE RIGHT THERE.

THANK YOU.

UH, WE ARE HERE TONIGHT AND, AND, UM, LET'S, LET'S, UH, LET'S BEAT, UM, THERESA'S RECORD HERE AND GET THERE.

THAT WAS WHAT, ABOUT 22, 23 MINUTES? THIS ONE'S LIKE 1819, RIGHT? YEAH.

I CAN SEE YOU'RE SHAKING YOUR HEAD IN BELIEF IN THE SYSTEM.

OKAY.

YOU'RE EATING UP THE MINUTES.

UM, IT'S NOT, YOU ALREADY KNOW WHERE I'M COMING.

SET THE TIMER.

UM, THANK YOU FOR, UH, FOR BEING HERE.

WE ARE HERE TONIGHT BECAUSE IT'S, IT REALLY STARTED, UM, BACK WHEN THE NEW ULDC CAME INTO EFFECT LAST YEAR.

AND THERE WERE SUP UH, REQUIREMENTS AND OTHER REQUIREMENTS FOR, UH, SHORT-TERM RENTALS.

SO, BUT WE'RE HERE TONIGHT BECAUSE WE'VE HAD A PROCESS OF LEARNING HOW THAT'S, THAT PROCESS WORKS.

AND, UM, ALSO WE HAD, UH, A REQUEST FROM YOU, THIS COUNCIL, UH, ON APRIL 23RD TO KIND OF WORK UP, UP, OR EXCUSE ME, BACK IN, UM, BACK WHEN THE SUP CASE CAME BACK IN NOVEMBER, DECEMBER, WHENEVER THAT WAS, TO COME UP WITH SOME BEEFIER REGULATIONS FOR SHORT-TERM RENTALS.

SO THIS STARTED WITH A REQUEST FROM COUNSEL TO SAY, HEY, WE WOULD LIKE TO DO SOMETHING ELSE WITH SHORT-TERM RENTALS WORK SOMETHING UP.

SO WE BROUGHT THAT BACK TO YOU ABOUT A MONTH AGO.

AND THERE WAS STILL A LOT OF CONFUSION.

THERE WAS STILL A LOT OF, OF, HEY, I'M NOT SURE THAT'S EXACTLY THE DIRECTION WE WANTED TO GO.

SO WE'RE HERE TONIGHT TO KIND OF WALK THROUGH WHERE WE'RE AT AND WHAT YOU WOULD LIKE TO DO WITH IT.

SO REMEMBER THAT THE PURPOSE IS TO GET CLEAR DIRECTION ON THE TEXT AMENDMENT AND ANY PROPOSED CHANGES THAT YOU'D LIKE FROM THE ONE THAT YOU HAVE ALREADY SEEN.

WE HAVE NOT MADE ANY CHANGES TO IT AS OF YET.

SO WE'RE GONNA WALK THROUGH THAT TONIGHT.

UM, NOT WORD FOR WORD, BUT SORT OF TOPIC BY TOPIC AND MAKE SURE THAT WE ARE GETTING DIRECTION FROM COUNCIL ON WHERE YOU WANT THIS TO GO.

UM, WE, WE WANT THIS TO MANAGE GROWTH AND ADD VALUE, AND WE ALWAYS WANT TO MAINTAIN THAT PUBLIC HEALTH, SAFETY, AND WELFARE FOR THE CITY.

UM, THIS, REMEMBER TO THAT, ANOTHER PURPOSE OF THIS IS TO ALLOW THE CITY TO PROACTIVELY ADDRESS THE MARKET AS IT CHANGES AND SET EXPECTATIONS FOR THE NEIGHBORING PROPERTY OWNERS OR FOR POTENTIAL, UM, SHORT-TERM RENTAL OWNERS AS WELL.

YOU, UH, I, I WELCOME YOU ASKING QUESTIONS AS I GO, BUT WHEN WE GET TO THE END, I WILL KIND OF RECAP EVERYTHING.

IF YOU WANNA WAIT UNTIL THEN, THAT IS UP TO YOU.

UM, SO THE PROPOSED REGULATIONS, AGAIN, THIS DOES NOT REFLECT ANY OF THE COMMENTS WE HEARD AT THE, AT THE PUBLIC HEARING, UH, A MONTH AGO.

THIS IS THE PROPOSAL AS YOU HAD IT IN FRONT OF THEM.

SO WE, UH, AGAIN, THE, THIS IS JUST A RECAP OF THAT.

UM, SO THE HOTEL OCCUPANCY PACK TAX IS REQUIRED BY THE NEW REGULATIONS, UM, THAT IS REQUIRED BY STATE LAW.

IT IS NOT REQUIRED FOR A STAY LONGER THAN 30 DAYS, UM, BECAUSE THERE'S NO PERMIT REQUIRED FOR ANYTHING LONGER THAN 30 DAYS AS WELL.

IT WOULD, THAT WOULD FALL OUTSIDE OF THE CATEGORY OR DEFINITION OF SHORT-TERM RENTAL.

THERE WE ARE, UH, PROPOSING TO REQUIRE A PERMIT.

UH, THAT PERMIT WOULD REQUIRE A 24 HOUR CONTACT PERSON, UH, INFORMATION TO BE POSTED IN THE, UH, UH, NOT ONLY IN THE, THE RENTAL, BUT ALSO TO BE PROVIDED TO THE CITY.

UH, THAT WOULD RENEW ANNUALLY.

AND, UH, ALSO POST THE PERMIT INSIDE THE DWELLING ITSELF, THERE WOULD BE AN INSPECTION REQUIRED.

UH, THAT INSPECTION WOULD LOOK AT THINGS LIKE NUMBER OF BED BEDROOMS, NUMBER OF PARKING SPACES PROVIDED THAT'S OFF STREET PARKING, UH, SPACES PROVIDED, MAKE SURE THERE'S FIRE EXTINGUISHERS, SMOKE DETECTORS, ALL THE SAFETY STUFF.

AND, UM, WE WOULD REQUIRE THAT PRIOR TO ISSUANCE

[00:20:01]

OF THE INITIAL PERMIT.

AND THEN ONCE A YEAR, EVERY TIME THEY RENEW.

UH, AND ALSO IF WE GET A COMPLAINT, IF THERE'S SOMETHING WHERE WE FEEL LIKE AS A CITY WE NEED TO REINSPECT, THEN WE WOULD BE, UH, THERE'S A, THEY'RE KIND OF ON NOTICE THAT WE WOULD BE ALLOWED TO DO THAT AS WELL.

THE REGULATIONS THEMSELVES CALL OUT THAT THE RESIDENTIAL CHARACTER OF THE STRUCTURE AND OF THE NEIGHBORHOOD IS TO BE MAINTAINED.

THERE'S BEEN A LOT OF QUESTIONS ON WHAT DOES THAT MEAN? WHAT IS RESIDENTIAL CHARACTER? SO IT REALLY COMES DOWN TO THE BULLET POINTS UNDERNEATH, WHICH IS THE PARKING.

SO WE, WE, WE STATED ONE SPACE PER BEDROOM.

THAT'S O AGAIN, OFF STREET.

THIS IS IN THE DRIVEWAY.

ONE SPACE PER BEDROOM PLUS ONE ADDITIONAL SPACE.

SO IF I HAVE A FOUR BEDROOM HOUSE AND I'M RENTING OUT ALL FOUR BEDROOMS, THEN I HAVE TO HAVE FIVE, UH, PARKING SPACES ON MY PROPERTY OFF STREET.

THAT DOES INCLUDE THE GARAGE.

SO IF YOU HAVE TWO SPACES IN THE GARAGE, THREE IN THE DRIVEWAY, YOU'RE GOOD TO GO.

IF I HAVE A FOUR BEDROOM HOUSE AND I'M ONLY RENTING OUT TWO OF THE BEDROOMS, WHICH CAN HAPPEN, THEN I ONLY HAVE TO HAVE THREE OFF SPACE PARKING SPACE, OFF STREET PARKING SPACES, UH, PROVIDED.

UM, SO THAT WAS ONE OF THE PIECES I THINK THAT WE HAD KIND OF DISCUSSED A LITTLE BIT.

THEN THE NUMBER OF OCCUPANTS, AGAIN, THIS IS TWO PEOPLE PER BEDROOM, PLUS TWO ADDITIONAL PEOPLE.

SO IF I HAVE A FOUR BEDROOM HOUSE, I CAN HAVE UP TO 10 PEOPLE STAYING IN THE HOUSE AT ANY GIVEN TIME.

UH, THE, AGAIN, I, I WANT TO KIND OF COME BACK AGAIN.

WE'RE TALKING ABOUT RESIDENTIAL CHARACTER.

SO THIS CAN'T BE ADVERTISED AS A PARTY VENUE.

WE'RE NOT DOING, UM, I DON'T KNOW, AFTER PROM PARTIES HERE OR SOMETHING LIKE THAT, OR, OR, UH, A WEDDING, YOU KNOW, WHATEVER.

UM, THE MINIMUM STAY IS 24 HOURS.

WE DON'T WANT, UH, ONE OF THESE TO END UP AS A, AN HOURLY RENTAL TYPE SPACE.

UH, AND THEN THE, UM, AS I MENTIONED BEFORE, THE PERMIT, THE LOCAL CONTACT AND ANY OF THE PROPERTY RULES HAVE TO BE POSTED INSIDE THE, INSIDE THE, THE HOUSE.

UM, AND THAT'S KIND OF NORMAL IF YOU'VE RENTED AN AIRBNB BEFORE, YOU KNOW THAT THAT'S USUALLY, UM, THAT THAT'S THEIR POLICY AS WELL.

UH, WE DID HAVE IN THE PROPOSED REGULATIONS, UH, A AN ENCOURAGEMENT TO PROVIDE AN INTERIOR SOUND MONITORING DEVICE THAT CAME ABOUT BECAUSE WHEN WE HAD THE SUP BACK IN NOVEMBER, DECEMBER, THE, THAT PARTICULAR OWNER VOLUNTEERED THAT AS A CONDITION.

AND WE SAID, OKAY, IT SOUNDS GOOD.

SO THEN WE PUT IT IN THERE.

WE, WE HEARD CITY COUNCIL LAST TIME SAYING, WE DON'T REALLY LIKE THAT.

'CAUSE IT'S ENCOURAGED.

IT'S NOT GONNA BE A REGULATION.

SO YOU'LL SEE THE, THE CROSS HATCHES THROUGH THAT BECAUSE WE'RE TOTALLY FINE WITH THAT.

LET'S JUST GO AHEAD AND TAKE THAT OUT.

SO IT HASN'T BEEN TAKEN OUT OF THE PROPOSAL, BUT WE'VE ALREADY HEARD YOU THE DIRECTION ON THAT TO GO AHEAD AND TAKE IT OUT.

UM, WE ALSO HEARD, I THINK FROM COUNCILMAN LESTER, THERE WAS SOME CONCERN THAT MENTIONING THIS PROPERTY OWNER IS RESPONSIBLE FOR COMPLYING WITH COVENANTS RULES, HOA STUFF, UH, DEED RESTRICTIONS THAT WE WERE PUTTING OURSELVES IN A WEIRD SPOT THAT WE MIGHT BE, UH, STUCK IN THE MIDDLE BECAUSE WE AS A CITY ARE NOT AUTHORIZED TO ENFORCE ANY DEED RESTRICTIONS OR HOA COVENANTS, THINGS LIKE THAT.

UM, SO WHAT I DID HERE WAS I HIGHLIGHTED THE FIRST PART OF THAT SENTENCE.

THE PROPERTY OWNER IS RESPONSIBLE.

ALL THIS IS MEANT TO DO IS TO PUT THEM ON NOTICE.

AND WE WOULD INCLUDE THIS WITH THE APPLICATION AS WELL.

THERE MAY BE RESTRICTIONS OR COVENANTS OR DEED, THINGS THAT YOU NEED TO DO MORE RESEARCH ON.

MAKE SURE YOU HAVE YOUR DUCKS IN A ROW BEFORE YOU COME TO US.

AND, AND WE CAN ADD A SENTENCE HERE THAT SAYS SOMETHING LIKE, UH, THE CITY IS NOT, THE CITY IS NOT RESPONSIBLE FOR ENFORCING, OR SOMETHING LIKE THAT.

AND, AND THAT, I'M GONNA JUMP IN HERE THAT, THAT'S MY CONCERN, IS, OKAY, SO WE WE TELL THEM THEY'RE RESPONSIBLE AND THEN THEY DON'T COMPLY WITH THAT.

WHAT'S THE CONSEQUENCE? NOTHING FROM US.

IT'S NOTHING.

IT, THERE'S SO WE CIVIL, BUT NOT FROM US.

CORRECT? NO.

CORRECT.

SO I, I JUST DON'T WANT IT.

THE IMPLICATION IS TO ME, IF I WAS READING THAT OR I'M A NEIGHBOR DOWN THE STREET, IT'S KINDA LIKE Y'ALL SAID THEY'RE RESPONSIBLE FOR, FOR DOING THIS.

THEY'RE NOT DOING IT.

WHAT ARE Y'ALL DOING ABOUT IT? WE'RE NOTHING.

WELL, THAT'S NOT GONNA GO OVER OR IT, IT WILL GO OVER, BUT LIKE A LEAD BALLOON, YOU KNOW? 'CAUSE IT'S, YOU KNOW, AGAIN, THAT'S MY CONCERN.

I DON'T WANT TO GET IN THE MIDDLE OF THAT DOG FIGHT 'CAUSE IT'S NOT OUR FIGHT.

RIGHT.

AND, AND STAFF IS A HUNDRED PERCENT AGREEABLE WITH THAT STATEMENT.

AND THAT'S, I I THINK IF WE PUT SOME SORT OF A, UM, A DISCLAIMER IN THERE AT THE END OF IT, MAYBE THAT WOULD COVER IT.

YEAH.

WE CAN PUT SOMETHING IN THERE TO THE EFFECT THAT THE CITY IS NOT RESPONSIBLE FOR PROSECUTING ANY VIOLATIONS.

BUT I THINK THE INTENT BEHIND THE STATEMENT IS INFORMATIVE RATHER THAN, UH, ENFORCEMENT RELATED.

BUT WE CAN BUTTON

[00:25:01]

IT UP HOWEVER YOU ALL THINK IS APPROPRIATE OR, OR TAKE IT OUT IF YOU THINK THAT'S APPROPRIATE.

AGAIN, I'M, MY CONCERN IS THE AVERAGE CITIZEN THAT MAY BE NOT SUPPORTIVE OF THIS TYPE OF CODE IS GONNA LOOK THAT SAYING, OKAY, WELL THE CITY'S GONNA TAKE CARE OF THAT.

WE'RE NOT, SO WE'RE SETTING OURSELVES UP FOR THAT COMPLAINT OR ARGUMENT.

TO ME, HAVING A DISCLAIMER IN THERE, AGAIN, HUMAN NATURE, THEY'RE GONNA READ THAT FIRST SENTENCE AND NEVER GET TO THE SECOND SENTENCE.

WELL, WHICH IS WHERE THE DISCLAIMER WILL BE.

AND WE PUT THE, SO WHETHER WE LEAVE IT IN OR NOT, I UNDERSTAND THAT, OKAY, WE'RE NOT GONNA DO IT.

BUT ARE WE SETTING OURSELVES UP? WE WE COULD ALWAYS PUT IT AT THE FRONT.

THAT'S, THAT'S WHAT I WOULD SAY WOULD PUT IT AT THE FRONT, THE FIRST THING TO READ IN THAT PART.

BECAUSE IT, IT DOES, IT DOES GIVE A LITTLE BIT OF COMFORT TO THOSE THAT ARE OUT THERE, THAT ARE, THAT ARE, THAT ARE GONNA BE OPPOSED, OPPOSED TO IT THAT HEY, THE CITY'S DOING EVERYTHING THEY CAN TO LET THESE PEOPLE KNOW, HEY, YOU, YOU'RE GONNA HAVE SOME ISSUES.

AND IT'S NOT THE CITY'S RESPONSIBILITY, BUT THEY DO NEED TO, IT, IT, IT'S JUST AN INFORMATIVE PORTION OF THE, OF THE ORDINANCE FOR THEM.

AND I, BUT I WOULD PUT IT AT THE TOP WHERE HO AND D RESTRICTIONS AND THEN IN PARENTHESES, NOT ENFORCEABLE BY THE CITY OF BAYTOWN OR HOWEVER YOU NEED TO PUT IT LEGAL WISE.

YEAH.

AND THEN THEY CAN READ THE PART I JUST GO BACK TO OVER THE LAST SEVERAL YEARS, WE'VE HAD A NUMBER OF INDIVIDUALS NOT EVEN ON THIS ISSUE, HAVE COME FORWARD AND SAID, WELL, OUR DEED RESTRICTIONS SAY THIS AND THIS.

WHY IS IT THE CITY DOING SOMETHING? I MEAN, AND WE DIDN'T EVEN TOUCH IT.

YEAH.

AND, AND THE ASSUMPTION IS IT'S A DEEP RESTRICTION.

IT'S A HOA REQUIREMENT.

WHY ISN'T THE CITY HELPING US WITH THIS? I JUST DON'T WANT US TO GET INTO THAT GRAY AREA.

WE, WE TAKE ENOUGH BEATINGS ON SIMILAR ISSUES.

IT'S, I'M JUST CAUTIOUS IF WE LEAVE IT IN THERE THAT, YOU KNOW, I UNDER, I FULLY APPRECIATE AND UNDERSTAND THAT IT'S NOT OUR RESPONSIBILITY.

THE AVERAGE CITIZEN IS NOT GONNA BE AS UNDERSTANDING AS, AS WE TEND TO BE.

WE'RE WELL INFORMED.

WE HAVE GOOD STAFF THAT THAT KEEPS US APPRAISED.

WE HAVE GOOD LEGAL ADVICE.

SO WE UNDERSTAND ALL THAT.

BUT, YOU KNOW, I, THAT'S JUST MY COMMENTS ON IT.

SO, SO IS, AM I HEARING A CONSENSUS THEN THAT IF WE ADD, UH, SOME SORT OF A DISCLAIMER AND THEN MOVE IT UP TO THE FRONT OF THIS SECTION, THAT THAT MIGHT BE A WAY TO HELP COMBAT THAT? YES.

YEAH.

COUNCILMAN POWELL, YOU'RE OKAY WITH THAT? YEAH, I'M OKAY WITH THAT.

YOU OKAY? OKAY.

PERFECT.

THANK YOU.

I'M OKAY WITH THAT.

OKAY.

ON THE NEXT PIECE THEN, UM, SO THERE IS A SECTION IN THE PROPOSED REGULATIONS THAT TALKS ABOUT REVOKING OR SUSPENDING A PERMIT FOR SHORT-TERM RENTAL, UM, THAT WOULD FALL ON PLANNING AND DEVELOPMENT.

UM, WE WOULD ONLY DO THAT IF THERE'S A VIOLATION OF LAW OR THE REGULATIONS THEMSELVES, A FAILURE TO PAY THE, THE HOTEL OCCUPANCY TAX.

ANY FALSE INFORMATION THAT THEY MIGHT GIVE US THAT WE FIND OUT LATER WAS, WAS FALSE.

UM, AFTER THREE VIOLATIONS IN, IN A 12 MONTH PERIOD, OR A FAILURE TO CORRECT ANY VIOLATIONS THAT THEY'VE BEEN NOTIFIED OF, THEN THAT'S WHEN A, A REVOCATION WOULD HAPPEN.

AND THEN THAT WOULD BE BASICALLY SUSPENDED FOR 12 MONTHS.

THEY CAN'T REAPPLY FOR A YEAR AFTER THAT.

UM, AND THEN IF THERE'S ANY ISSUES WHERE THEY, THE, THE PROPERTY OWNER OR APPLICANT, THE PERMIT HOLDER FEELS LIKE THERE IS AN ISSUE OR A MISS, A READING OF, OF SOMETHING, THEN THEY CAN APPEAL THAT TO THE BOARD OF ADJUSTMENT AS AN APPEAL OF THE DIRECTOR'S DECISION, WHICH IS PART OF A, THAT, THAT'S A PROCESS WE HAVE IN PLACE NOW.

SO, UM, AND THERE WAS A LOT, THERE WERE A LOT OF QUESTIONS REGARDING ENFORCEMENT.

HOW ARE WE GOING TO HANDLE ENFORCEMENT? UM, REALLY THE, THE MAIN AVENUE THAT WE'VE BEEN LOOKING AT IS USING A THIRD PARTY CONSULTANT.

SO SHORT OF BRINGING THIRD PARTY CONSULTANTS IN HERE AND HAVING THEM DO A PRESENTATION, UM, CALVIN AND I GATHERED SOME, UH, SOME INFORMATION ON THIS FROM SEVERAL DIFFERENT PROVIDERS AND THEY, THEY ALL KIND OF DO DIFFERENT LEVELS.

THE ONE THAT, UM, THAT I, THAT I LEAN TOWARDS BECAUSE OF THE SERVICES THEY DO PROVIDE, UM, THEY PROVIDE SOFTWARE.

THEY ALL PROVIDE A PIECE OF SOFTWARE, UH, WHICH, UH, INCIDENTALLY, NONE OF THEM, NONE OF THEM TIE INTO ANY OF OUR, OUR, OUR, UM, NO CURRENT, OUR CURRENT, UH, UH, SYSTEMS. NO FIGURE.

UM, YEAH.

UH, BUT WE WOULD'VE A SOFTWARE THAT WOULD TRACK THOSE.

AND WHAT THEY DO IS THEY BASICALLY, THEY ARE USING, UM, STAFF AND AI TO SCOUR THE INTERNET ON A DAILY BASIS AND LOOK AT ALL OF THE LISTINGS ACROSS, I THINK THE ONE GUY SAID SOMETHING LIKE 10,000.

YES.

10,000, 10,000 DIFFERENT WEBSITES BECAUSE YOU'VE GOT THE, YOU KNOW, DOZEN OR SO MAIN, UM, PROVIDERS OF THAT.

BUT THEN THERE'S JUST A ZILLION OF THEM OUT THERE THAT ARE EITHER REGIONAL OR, UM, YOU KNOW, JUST LOCAL OR EVEN INDIVIDUALS WHO DO IT ON THEIR OWN.

SO, UM, SO ANYWAY, THEY, THEY KIND OF SCOUR AND, AND LOOK FOR THOSE LISTINGS

[00:30:01]

THAT ARE NOT PART OF OUR PERMITTING SYSTEM.

UM, THEY WOULD HANDLE THE IMPLEMENTATION OF THAT SYSTEM.

SO AGAIN, WE'RE THINKING SOMEWHERE BETWEEN 85 AND A HUNDRED, UH, JUST AT THE OUTSET THAT WE HAVE IN THE CITY OF BAYTOWN RIGHT NOW.

IT COULD BE MORE 'CAUSE THEY HAVEN'T DONE THE FULL SEARCH YET.

UM, THEY WOULD PROVIDE VIOLATION LETTERS, LIKE PHYSICAL LETTERS THAT GET MAILED OUT AND UP TO A CERTAIN POINT.

AND THEN AFTER THAT POINT, THOSE LETTERS WOULD, THAT, THAT'S KIND OF WHERE THEY STOP.

WE'RE NOT FINDING ANYBODY THAT REALLY CAN DO ANYTHING BEYOND SEND A LETTER.

SO THIS PARTICULAR COMPANY WOULD SEND UP TO THREE LETTERS, WHICH THEY CLAIM TO HAVE A GOOD RESPONSE.

UH, SOMETHING LIKE 95%.

AND THEN AFTER THAT, WE WOULD BE HELD TO USING OUR NORMAL CODE ENFORCEMENT PROCESS, WHICH IS, UH, CITATIONS THROUGH THE COURT SYSTEM, WHICH WE HAVEN'T TESTED THAT YET.

SO WE'RE NOT SURE REALLY WHERE THAT WOULD GO.

UM, BUT THAT, BUT THAT IS OUR PROCESS RIGHT NOW.

THAT COST WOULD BE SOMEWHERE IN THE NEIGHBORHOOD OF 25 TO, TO $30,000 PER YEAR IF WE'RE ESTIMATING AROUND 85 SHORT TERM RENTALS.

UH, IN ORDER TO COVER THAT COST, WE'RE SOMEWHERE IN THE NEIGHBORHOOD OF $300 A YEAR.

WE THINK THAT'S A PRETTY REASONABLE PRICE.

WE'VE SEEN, UH, SEVERAL CITIES THAT ARE RIGHT IN THAT, THAT RANGE SOMEWHERE FROM, UH, 250 TO $400 IS, IS PRETTY, UH, IS PRETTY, UH, REASONABLE.

UH, AND THEN WE ALSO HAVE THE HOT REVENUES.

WE'RE, AGAIN, THIS IS AN ESTIMATE SOMEWHERE IN THE NEIGHBORHOOD IS 75 TO $80,000 A YEAR FOR 85 SHORT TERM RENTALS IS WHAT WE WOULD, WHAT WE WOULD EXPECT TO SEE FOR REVENUES TO THE CITY.

WE CANNOT USE THOSE REVENUES TO PAY FOR THE CONSULTANT, BUT IT IS ADDITIONAL REVENUE FOR THE CITY, UM, THAT WOULD COME THROUGH THIS AS WELL.

OKAY.

UM, YES SIR.

SO ON THOSE FEES AND, YOU KNOW, YOUR PROJECTED FEES AT 300, THAT'S COVERING THE, THE CONSULTANT MM-HMM .

BUT, UM, THAT'S NOT COVERING YOUR TIME TO GO THROUGH THE PERMIT STAFF'S, TIME TO GO THROUGH THE PERMIT AND OTHER THINGS THAT NEEDS TO BE RECOUPED ALSO.

SO THAT THREE HUNDRED'S NOT A, TO ME IT, THAT'S COVERING THING, BUT IT'S NOT COVERING YOUR TIME TO DO THE PERMIT.

IT'S NOT COVERING YOUR STAFF'S TIME TO DO THE PERMIT AND ANY OTHER THINGS THAT HAVE TO GO ALONG WITH THAT, THAT PROPERTY.

SO THEY GET A PERMIT.

HOW LONG IS THAT PROCESS GONNA TAKE? HOUR AND A HALF HOUR, TWO HOURS.

THIS COMPANY WOULD HANDLE ALL THE PERMITTING.

OKAY.

I'M SORRY IF I DIDN'T MAKE THAT CLEAR, BUT YOU, BUT YOU DO HAVE STAFF THAT'S GONNA BE MONITORING SOME OF THIS TOO.

THERE IS GONNA BE STAFF TIME ASSOCIATED WITH THIS ONLY IF WE GET A RED FLAG.

THAT, THAT THE IDEA.

SO THE, THE WHOLE, SO WILL IT BE A FINE FOR THE RED FLAG THEN ? UH, Y YES, I THINK SO.

OKAY.

SO THE IDEA WOULD BE TO MINIMIZE I DONT PERCENT RECOUPING OF COST ON THIS.

RIGHT.

AND I, AND I, I CAN'T ARGUE WITH THAT AT ALL.

UM, THE IDEA IS FOR STAFF TO DO AS LITTLE AS POSSIBLE WITH THIS PROCESS BECAUSE WE, WE WE'RE NOT, WE'RE NOT LOOKING FOR EXTRA STAFF.

IF WE WERE GOING TO HANDLE IT OURSELVES, WE WOULD NEED EXTRA STAFF.

WE'RE NOT, WE'RE REALLY TRYING NOT TO GO THAT DIRECTION.

IF WE'RE LOOKING AT A TOTAL OF, YOU KNOW, 10 TO 15, UM, PROPERTIES A YEAR, SOME SOMEWHERE IN THAT NEIGHBORHOOD THAT WE NEED TO TAKE TO THE NEXT STEP, WE CAN ABSORB THAT.

I'M, I'M NOT TOO WORRIED ABOUT THAT.

IF WE GO MORE THAN THAT, IF WE GET INTO THE FIRST YEAR AND REALIZE WE'RE SPENDING A LOT OF TIME ON THIS, THEN WE WOULD HAVE TO HAVE A DIFFERENT CONVERSATION AS OF RIGHT NOW.

UM, THAT THIS, THIS IS KIND OF WHAT WE'RE ANTICIPATING.

THE OTHER PART OF THAT TOO, I THINK I, I WOULD RATHER US ANTICIPATE THAT WE ARE GONNA HAVE THAT ISSUE AND HAVE THE P FEE COVERING US AND THEN REDUCE IT AFTERWARDS.

IF WE DON'T HAVE THAT PROBLEM, I WOULD NOT, I WOULD RATHER US NOT GO INTO IT GOING, OH, IT COSTS US AN EXTRA 25, $30,000 OR $40,000.

LET'S COVER THAT COST AND THEN SAY, OH, WELL WE WERE ABLE TO GO DOWN.

I'D RATHER DROP A, DROP A PERMIT FEE THAN RAISE A PERMIT FEE.

BECAUSE THE INITIAL FEE, THEY, IF YOU'RE DOING IT, HEY IT COSTS ME $600 TO DO IT AND NEXT YEAR, HEY, YOU KNOW WHAT, WE CAN COVER IT.

IT'S ONLY GONNA COST REALLY THREE 50 AND WE DROP IT DOWN TO THREE 50.

IT'S EASIER VERSUS GOING, HEY, IT'S 300, BUT NOW YOU KNOW WHAT? IT REALLY COST US SIX, NOW WE GOTTA RAISE IT TO SIX.

THAT'S A BIG DIFFERENCE FOR SOMEONE TO DO THAT.

I'D RATHER GO HIGH AND THEN COME BACK DOWN TO THEM BECAUSE IT'S A WHOLE NEW THING.

THAT'S THE THING IS WE'RE WE'RE TRYING TO COVER OUR COST AND NOT INCUR ANY COST ON THIS.

HOW, HOW DOES THE REST OF THE COUNCIL FEEL ABOUT THAT, ABOUT THAT FEE? AGAIN, WE HAVEN'T PROPOSED A FEE.

THIS IS, THIS IS US SAYING SOMEWHERE IN THE NEIGHBORHOOD OF $300 SHOULD COVER WHAT WE'RE GONNA BE CO SPENDING.

JACOB CHECK.

I MEAN, I DON'T REALLY HAVE ANY CONCERNS WHERE IT'S AT.

I MEAN, WE'RE GONNA HAVE THE ADDITIONAL HOT REVENUE AS WELL.

THAT WOULD BE NEW REVENUE.

RIGHT.

UM, THAT WE'RE NOT SEEING RIGHT NOW.

SO I THINK THAT WOULD, IF IT'S TRULY 75 TO 80,000, UM, I MEAN THAT WOULD COVER ANY ADDITIONAL COSTS.

BUT, BUT YEAH, I MEAN I THINK WE WOULD WANNA STUDY IT JUST LIKE WE DO ALL OUR FEES.

I MEAN WE, WE HAVE KIND OF A TARGET PERCENTAGE OF WHAT WE WANNA RECAPTURE.

SO, UM, AND LEMME POINT OUT TOO THAT AGAIN, THE HOT REVENUES CAN'T

[00:35:01]

BE USED TO RECOUP THESE COSTS.

THAT'S TRUE.

GOTTA BE USED.

THEY GO INTO A SPECIFIC, SPECIFIC FUND AND CAN ONLY USED FOR CERTAIN THINGS.

THAT IS TRUE.

SO I'D LIKE TO SAY THAT IT WOULD OFFSET GENERAL FUND COSTS, BUT IT DOESN'T.

YEAH, NO, THAT'S FAIR.

AND, AND I'LL, I'LL JUMP IN THERE.

UM, AND I UNDERSTAND MY COLLEAGUE'S POSITION, BUT WE HAVE TO BE CAUTIOUS OF, YOU KNOW, OKAY, WE SET THE FEE HIGH BASED ON ANTICIPATED STAFF TIME AND THEN WE COME BACK THE NEXT YEAR AND CUT IT BECAUSE WE DON'T HAVE THAT MUCH TIME.

WELL, INEVITABLY MURPHY IS WELL, UH, AND ACTIVE, THEN THE FOLLOWING YEAR WE'RE GONNA GONNA HAVE TO GO BACK AND BUMP IT UP AGAIN BECAUSE THEN WE DID USE THAT MUCH TIME.

IT, IT FLUCTUATES.

SO IF, IF STAFF IS REASONABLY COMFORTABLE THAT WE'RE GONNA BE RUNNING 85 OR SO OF THESE OR, OR SO AT 300 A YEAR COVERS OUR OUTFLOW COST.

UM, AGAIN, 10 OR 15 CASES A YEAR FOR A DEPARTMENT AS MR. SCRIBNER'S GOT.

THAT'S, I HATE TO SAY NEGLIGIBLE, BUT IT IS NEGLIGIBLE AS FAR AS ACTIVITY.

IF IT TURNS OUT TO BE, YOU KNOW, WE'RE TAKING 40 OF THEM TO, TO COURT, YOU KNOW, EVERY SIX MONTHS WE CAN ALWAYS COME BACK AND RAISE THAT FEE MIDYEAR.

WE DON'T HAVE TO WAIT FOR THE YEAR.

WE COME BACK AND SAY, OOH, YOU KNOW, THE FEES ARE NOT COVERING COSTS OR WHATEVER.

UM, WE JUST HAVE TO BE CAREFUL ABOUT OVERVALUING PERMIT FEE IF WE'RE GONNA BASE IT ON OUR COSTS.

'CAUSE WE GET TROUBLE BOTH WAYS.

UM, SO IF, IF YOU'RE COMFORTABLE WITH 300 A YEAR AND IT'S GONNA COVER OUR OUTFLOW COST, UM, MY BIGGEST CONCERN AS I BROUGHT OUT LAST TIME IS THAT WE'RE ESTIMATING 85.

WHAT IF IT COMES OUT, THERE'S ONLY 30 OF THEM THAT'S, AND, AND NOW WE'RE SPENDING $30,000 FOR 30 OF THEM.

THAT'S, THAT'S MY BIGGEST CONCERN.

UH, AS FAR AS STAFF TIME IMPLEMENTING ENFORCEMENT ACTIVITY.

I THINK FOR THE FIRST YEAR OR TWO, THAT'S PROBABLY GONNA BE NEGLIGIBLE.

WE, WE HAVE A, A QUICK SEARCH, UM, RESULT OF AT LEAST 85.

YEAH, WE THINK IT'S MORE THAN THAT.

BUT ALSO ONCE WE INSTITUTE A, A REGULATION POLICY LIKE THIS, YOU MAY SEE SOME DROP OFF OR AT THE VERY LEAST JUST TRY TO STAY OFF THE RADAR, WHICH OF COURSE WOULD BE A WHOLE DIFFERENT COMPLICATION.

YEAH.

THAT'S A DIFFERENT IS THIS 25 TO 30, I MEAN, IS THAT PRETTY MUCH IT'S GONNA COST IN THAT RANGE REGARDLESS OF HOW MANY HOMES? OR IS IT LIKE TIERED OR IS IT PER A PER PERMIT? I MEAN, HOW YEAH, WE DON'T, WE DON'T KNOW EXACTLY YET BECAUSE WE HAVEN'T GONE OUT, WE DO KNOW THERE ARE, ARE MORE THAN ONE COMPANY THAT PROVIDE THIS SERVICE.

AND SO WE WOULD HAVE TO GO OUT FOR AN RFP PROCESS AND, AND MAKE SURE THAT WE GET, UM, PROPOSALS IN.

SO THIS WAS THE ONE, THIS WAS ROUGHLY THE, THE COST FROM THE COMPANY THAT PROVIDED THE MOST SERVICES.

HMM.

SO, UM, THEY HAD ALREADY LOOKED AT BAYTOWN AND THEY, THIS WAS A PACKAGE DEAL.

SO I THINK THE ANSWER IS YES, IT WOULD STILL COST THAT EVEN IF THEY ONLY ENDED UP DOING 40 OF THEM.

OKAY.

OKAY.

KEN, DO YOU HAVE ANY COMMENTS, QUESTIONS? NO.

UM, I DO HAVE A QUESTION.

UM, BACK WITH THE VIOLATIONS.

I WAS TRYING TO WAIT TILL THE END, BUT, OKAY, I'LL DO IT NOW.

UM, , UH, I KNOW THAT WE ARE GIVING THEM LIKE 12 MONTHS, YOU KNOW, THAT THEY WOULD BE OUT OF, UM, WHAT IS, IT CANNOT REAPPLY FOR 12 MONTHS MM-HMM .

AS WE KNOW, SOME OF THE APARTMENTS THAT WE HAVE NOW THAT ARE REPETITIVE, UM, COULD WE AT SOME POINT SAY, YOU KNOW, YOU'VE HAD SUCH NUMBER OF VIOLATIONS AND THEY CAN JUST NO LONGER BE IN AIRBNB AND BAYTOWN, AND WOULD, WOULD Y'ALL BE INTERESTED IN SOMETHING LIKE THAT? OR ARE Y'ALL OKAY WITH SO LIKE A THREE STRIKES AND YOU'RE OUT RULE SOMETHING LIKE THAT? WELL, I'M NOT SAYING WHICH NUMBER , I'M JUST SAYING NO, YEAH.

AS AN EXAMPLE.

YEAH.

IF THEY'RE GONNA BE REPETITIVE AND YOU KNOW, THEY'RE GONNA KEEP GOING BACK AND CREATE MORE VIOLATIONS.

SO WE WANNA HAVE A SET NUMBER OF VIOLATIONS WHERE THEY CAN, WE CAN JUST SAY, YOU KNOW WHAT, IT'S IT, YOU'VE, YOU'VE WAITED YOUR 12 MONTHS, BUT THEN HERE WE ARE AGAIN TWO YEARS LATER WHERE YOU'RE VIOLATING AGAIN.

OKAY.

AND I KNOW WE GOOD, I MEAN, THIS IS JUST A, A THOUGHT, WE MAY NOT HAVE TO MAKE A DECISION RIGHT NOW, BUT JUST SOMETHING FOR Y'ALL TO THINK ABOUT TO ME, THAT THAT WOULD DEPEND ON THE TYPE OF VIOLATION MM-HMM .

IF IT, IF IT WAS MORE OF A OCCUPANT VIOLATION THAT'S, AND, AND, AND THE OWNER CORRECTS THAT BY KICKING 'EM OUT OR WHATEVER, THAT'S STILL A VIOLATION.

AND WHAT IF THEY SELL THE PROPERTY TO SOMEONE ELSE AND THAT PERSON MANAGES THE PROPERTY DIFFERENTLY? YEAH.

WELL, IT COULD GET VERY COMPLICATED, VERY FAST.

WELL, THAT WOULD BE A NEW PERMIT.

THAT NEW PERMIT.

SO PERMIT OVER THAT.

YEAH, I AGREE WITH THAT.

SO,

[00:40:01]

BUT, BUT YOU KNOW, IF IT'S A OWNER TOP VIOLATION, THEN I COULD SEE AFTER, YOU KNOW, THREE, AFTER TWO OR THREE, UM, SUSPENSIONS FOR 12 MONTHS.

NOW WE'RE THREE, THREE AND A HALF YEARS DOWN THE ROAD AND THEY'RE, AND EVERY TIME THEY COME BACK, THE OWNER STILL DOES VIOLATIONS.

I CAN SEE US SAYING, YOU KNOW, PROBABLY NOT, BUT IF IT'S A OCCUPANT VIOLATION, WE GET COMPLAINTS ON NOISE.

CHIEF'S GOTTA GO OUT A COUPLE OF TIMES.

AND THE OWNER, YOU KNOW, ONCE THEIR CONTACT, THE OWNER RESPONSES UP, YOU VIOLATING OUR, OUR INTERNAL CONTRACT, Y'ALL ARE OUT.

YEAH.

I'M TRACKING OWNER.

YEAH.

YEAH.

SO, SO DEPENDING ON THE TYPE OF VIOLATION YEAH, IT, I COULD SEE SOMETHING LIKE THAT, BUT THAT'S A LITTLE BIT MORE DIFFICULT TO TRACK.

OKAY.

I, I DON'T KNOW IF WE, IF WE COULD HAVE A STATEMENT, THERE'S SOMETHING LIKE ANOTHER, ANOTHER REGULATION, AND AGAIN, I'M JUST, I'M THINKING OUT LOUD.

THE, UH, THAT SAYS THAT, UM, THE DIRECTOR OR CITY MANAGER OR SOMEBODY COULD REVOKE THE PERMIT, UM, DEFINITELY BASED ON IF THEY'RE, YOU KNOW, BEING JERKS.

YEAH.

UM, MR. CITY ATTORNEY, I THINK YOU HAD A SURE.

I JUST WANTED TO SAY YOU HAD A LOOK, YOU HAD A QUESTION.

JUST WANTED TO REMIND COUNSEL THAT WE DO HAVE A DEFAULT PENALTY IN THE CODE ALREADY.

UM, AND UNLESS BY CODE OR ORDINANCE, UH, SECTION ONE DASH 14, IT'S CHANGED BY COUNSEL, THEN THE DEFAULT PENALTY IS $500 PER VIOLATION.

UH, EXCEPT THAT, UH, FINER PENALTY, UH, THAT RELATES TO FIRE SAFETY, ZONING, PUBLIC HEALTH, OR SANITATION, WHICH IS GENERALLY THE CATCHALL THAT, UH, THESE TYPES OF REGULATIONS FALL INTO.

UH, THEN THE FINE OR PENALTY CANNOT EXCEED $2,000.

OKAY.

UH, THERE'S ALSO A PROVISION THAT IF THERE ARE STATE LAWS IN EFFECT, AND WE PRESUME NEXT YEAR THERE WILL BE, UH, THEN THE MAXIMUM PENALTY, UH, SHALL BE THE MAXIMUM PENALTY ESTABLISHED UNDER STATE LAW.

OKAY.

I'M OKAY WITH THAT.

UM, AND THEN I KNOW THAT YOU AND I, UM, BRIEFLY TALKED OVER THE PHONE ABOUT THE HOT FUNDS AND AIRBNB CURRENTLY ALREADY, UM, COLLECTS HOT FUNDS.

UM, SO WERE YOU ABLE TO DETERMINE WHERE THOSE MONIES ARE GOING? IS IT GOING TO THE COUNTY? IS IT LIKE, WHERE DO THE HOT FUNDS GO THAT AIRBNB COLLECTS? UH, I, I DON'T HAVE AN ANSWER FOR YOU TONIGHT.

OKAY.

SO IF WE CAN FIND THAT OUT.

OKAY.

UM, THAT'D BE GREAT.

SO THE HOUSE SET UP WITH, WITH AIRBNB, WITH, UH, VRBO, THEY AUTOMATICALLY COLLECT THE, THE HOT FUNDS, AND IF YOU DO A CONTRACT WITH THEM, UM, THEY SUBMIT EVERYTHING TO THE CITY OR TO WHICHEVER TAXING ENTITY THAT IT GOES TO.

MM-HMM .

THERE'S ALSO A PIECE ON THERE THAT YOU CANNOT OVERREGULATE THEM IF YOU AGREE TO THAT CONTRACT AND THEY JUST BLANKET DO THAT FOR YOU AUTOMATICALLY.

SO THERE, THERE ARE PIECES THAT YOU HAVE TO, THIS WILL STILL COLLECT HOT TAXES, WHICH Y'ALL ARE DOING MM-HMM .

BUT THERE'S ALSO PIECES WHERE YOU CAN WORK WITH THEM AND IT'S STREAMLINED AND IT'S TAKEN CARE OF, AND THEN THEY TAKE CARE OF IT.

BUT IT'S, IT BY AND LARGE, AIRBNB VRBO ALREADY SUBMIT ALL THE HOT FUNDS COLLECTED TO THE TAXING ENTITY REGARDLESS.

OKAY.

SO IF THEY'RE GONNA BE IN BAYTOWN, WE WOULD BE THAT TAXING ENTITY.

OKAY.

BECAUSE I JUST WANNA MAKE SURE WE'RE NOT GONNA MISS OUT ON, ON ANYTHING.

OKAY.

ALL RIGHT.

DID YOU HAVE ANY OTHER COMMENTS ABOUT THAT? I HAVE A QUESTION.

I YES, I HAVE TWO, TWO, I HAVE STATEMENTS ON, ON WHAT Y'ALL TALKED ABOUT MM-HMM .

AND THE FIRST THING IS ON THE HOT FUNDS, THE FINANCE COMMITTEE JUST MET BEFORE THIS MEETING.

AND ONE OF THE THINGS THAT, THAT WAS SAID TO THE FINANCE COMMITTEE IS THAT HOT FUNDS ARE GOING DOWN.

AND THE REASON THAT I SAY THAT IS, UM, ANECDOTALLY, AND I DON'T HAVE ANYTHING TO PRESENT TO YOU, WHAT'S, WHAT'S HAPPENING IS THAT OUR HOTELS AND OUR SHORT TERM RENTALS ARE BEING USED FOR 30 DAY STAYS PLUS MM-HMM .

RIGHT? BECAUSE WHEN YOU DO THE CHANGEOVERS, THE HOTELS AND THE, THE SHORT TERM RENTALS ARE BEING USED FOR MORE THAN 30 DAYS.

AND SO THAT IS PLAYING A ROLE IN A REDUCTION OF HOT AND HOT REVENUE.

RIGHT.

AND SO THE, THE, UH, THE HYATT REGENCY IS CLASSIFIED AS A LUXURY HOTEL.

UH, THE OTHERS, UH, HOTELS IN BAYTOWN ARE CLASSIFIED AS MID-MARKET AND THE LUXURY HO THE LUXURY HOTEL IS NOT BEING USED FOR THOSE LONGER, LONGER TERM STAYS.

HOWEVER, THE SPRING HILL SUITES AND UM, UH, HILTON GARDEN INN AND THE OTHER HOTELS IN THE AREA ARE BEING LIKE HEAVILY USED FOR LONGER TERM STAYS AT THIS POINT, WHICH IMPACTS US ON THAT SIDE.

UM, SO I SAY THAT TO SAY TO MARTIN'S POINT, WHEN WE, WHEN COUNSEL IMPLEMENTS THIS

[00:45:01]

REGULATION PIECE, AND THIS GOES INTO YOUR CONVERSATION ON THE FEE, OKAY.

WHEN THAT THERE WILL BE A REDUCTION IN SHORT TERM RENTALS THAT ARE APPLYING FOR SHORT TERM RENTAL APPLICATIONS BECAUSE IT'S JUST, IT'S DONE BECAUSE, HEY, WHY NOT USE THE PROPERTY IN BETWEEN THE, THE LONGER TERM STAYS AT THE SAME TIME? OKAY.

AND SO THAT'S SOMETHING TO PLAY IN, IN, INTO, AND JUST SO Y'ALL HAVE ALL THE INFORMATION WHEN YOU'RE TALKING ABOUT FEES AND MR. LESTER, YOU ACTUALLY SAID IT, UM, IT'S MORE THAN JUST MARTIN AND HIS TEAM THAT ARE BEING INVOLVED WITH SHORT TERM RENTALS.

PD WILL GO OUT, THE FIRE MARSHAL WILL MOST LIKELY GO OUT.

UM, OTHERS, WHEN THIS IS IMPLEMENTED, THE PEOPLE THAT STRONGLY DISLIKE SHORT TERM RENTALS WILL CALL CODE ENFORCEMENT AND PD EXTENSIVELY TO REPORT AND REPORT AND REPORT A SHORT TERM RENTAL AND BE, BE CHECKED OUT.

IT'S NO DIFFERENT THAN PARKING IN THE YARD AND Y'ALL KNOW HOW MANY YARD PARKING IN THE YARD CONVERSATIONS THAT WE HAVE AS AN ENTITY.

THAT WILL ALSO HAPPEN WITH SHORT-TERM RENTALS BECAUSE PEOPLE DON'T, SOME PEOPLE DON'T WANT RENTALS IN, IN, IN THE CITY.

SO I PROSECUTED IN MUNICIPAL COURT AS WELL, AND THEY'RE PROSECUTED IN MUNICIPAL COURT AS WELL.

SO WE'LL HAVE THAT ADDED TO THE DOCKETS.

UM, SO JUST, I'M, I'M TRYING TO GIVE YOU ALL THE INFORMATION SO THAT Y'ALL CAN HAVE AN INFORMED CONVERSATION WHEN WE'RE LOOKING AT THESE THINGS.

AND MARTIN IS PRESENTING HIS SIDE AND WHAT HE'S THE SUBJECT MATTER EXPERT IN, BUT THERE ARE A PLETHORA OF OTHER THINGS THAT HAVE TO BE CONSIDERED.

THANK YOU.

I I WILL ALSO REMIND YOU THAT AS WE LOOK AT THE PROPOSED LANGUAGE OR WHATEVER WE DECIDE TO DO WITH IT, IF FOR SOME REASON COUNCIL DECIDES TO NOT TAKE ANY ACTION, THERE ARE STILL REGULATIONS ON THE BOOKS THAT REGULATE OUR SHORT TERM RENTALS, AND IT WOULD INCLUDE THAT SPECIAL USE PERMIT THAT WE ONLY DID.

ONE OF THAT IS REALLY KIND OF AWKWARD AND PUTS YOU GUYS IN A, IN A POSITION THAT YOU CAN'T WIN.

SO WE, WE AT THE VERY LEAST, WOULD LIKE TO GET RID OF THAT PIECE OF THE PUZZLE BECAUSE WE DON'T THINK IT BENEFITS THE CITY OR, OR YOU GUYS.

UM, I DID WANNA MAKE SURE THAT WE, WE GET THROUGH, UM, AND, UM, COUNCIL MEMBER GRIFF SAID HE WANTED TO HEAR WHAT THE PUBLIC HAS STATED ABOUT THIS.

AND I KNOW WE HEARD FROM A COUPLE PEOPLE AT THAT LAST MEETING.

SO I TRIED TO, UM, KIND OF SUMMARIZE WHAT WE HEARD.

AND WHILE WE DON'T HAVE TO GO DOWN THROUGH THESE ONE BY ONE, YOU CAN SEE THAT SOME OF THESE WOULD CREATE A PRETTY MAJOR, UM, ISSUE FOR, FOR STAFF.

UM, AND, AND A LOT OF COST AND TIME AND EXPENSE.

AND, AND REALLY SOME OF IT'S JUST KIND OF OVER THE TOP.

UM, THE FIRST ONE WAS DEFINE BEDROOMS STRICTLY ON THE ORIGINAL HOME PLAN.

SO IF YOU DID ANY KIND OF CONVERSION, UH, YOU WOULD NOT BE ALLOWED TO USE THAT FOR, FOR SHORT TERM RENTAL.

MANY OF THE HOUSES IN BAYTOWN, WE CAN'T TRACK BACK THAT FAR.

SO WE HAVE NO WAY TO TELL, UM, LIMIT EACH PROPERTY TO ONE RENTAL UNIT.

YOU, YOU COULD DO THAT.

UM, THE CURRENT CODE DOES DO THAT.

THE, UH, IMPLEMENT PERMIT FEES, RENEWAL FEES AND INSPECTION FEES WE'RE, WE ARE PROPOSING THAT CLEARLY DEFINED PARKING RULES WE'RE PROPOSING THAT AS WELL.

UM, POSTING OF EMERGENCY CONTACT, EVACUATION ROUTE INSPECTION DOCUMENTATION, THAT THAT'S PRETTY REASONABLE.

AND WE ARE REQUIRING SOME OF THAT, UH, ESTABLISHED CLEAR RESPONSIBILITY FOR ENFORCEMENT THAT WE HAVE TALKED SOME ABOUT THAT TONIGHT.

SO THAT IS SOMETHING WE, WE ARE, UM, WORKING ON.

UH, SOMEBODY MENTIONED CAPPING THE NUMBER OF SHORT-TERM RENTALS AT TWO PER NEIGHBORHOOD.

UM, I THINK THERE ARE OTHER CITIES THAT DO SOME SORT OF A CAPPING, UM, NUMBER FOR THOSE.

UM, I'M NOT ENTIRELY SURE HOW THAT WOULD WORK.

IT, IT FEELS A LITTLE ARBITRARY TO ME AND I THINK THAT WOULD BE HARD TO ENFORCE, UM, FROM A LEGAL PERSPECTIVE.

AGREED.

UH, REQUIRE BACKGROUND CHECKS FOR ALL ADULT RENTERS.

THIS WAS, THEY WANT BACKGROUND CHECKS EVERY TIME SOMEBODY KNEW RENTS.

THAT THAT IS COMPLETELY NOT DOABLE.

THAT THAT'S, WE, WE HAVE NO WAY TO MAKE SOMETHING LIKE THAT HAPPEN.

UM, AND IT REALLY IS PRETTY UNREASONABLE.

IT'S NOT THAT THAT'S JUST NEVER GONNA HAPPEN.

UH, PROVIDE HOAS WITH AN ONGOING LIST OF SHORT-TERM RENTAL PROPERTIES.

UM, I THINK ONCE WE HAVE A LIST WE CAN PROVIDE THAT TO ANYBODY.

SO I, I DON'T HAVE A BIG ISSUE WITH THAT.

IF SOMEONE WANTS TO COME IN AND REQUEST IT, THEN I THINK WE CAN PROVIDE THAT, UH, LIMIT SHORT TERM RENTALS TO MIXED USE IN COMMERCIAL DISTRICTS ONLY.

YOU'LL NOTICE THAT THE PROPO, HOW IT IS NOW, THEY'RE NOT, UM, THEY'RE NOT ALLOWED IN COMMERCIAL DISTRICTS.

THEY'RE ONLY ALLOWED IN OUR RESIDENTIAL DISTRICTS.

'CAUSE THAT'S WHERE THEY ARE NOW.

THEY ARE NOT IN THE MIXED USE ZONES.

THEY'RE NOT IN THE COMMERCIAL ZONES AND THEY'RE NOT LIKELY TO BE IN BAYTOWN.

SO IF YOU WERE TO SAY, WE ONLY ALLOW THESE IN MIXED USE IN COMMERCIAL DISTRICTS, YOU WOULD ESSENTIALLY KILL THAT MARKET HERE IN BAYTOWN.

UM, OTHER CITIES HAVE DONE IT, BUT I DON'T KNOW LONG TERM HOW THAT'S GONNA HOLD UP, UM, IN,

[00:50:01]

IN THE LEGAL SYSTEM.

UM, SO WE'RE, WE'RE STILL KIND OF WAITING TO SEE HOW THAT PANS OUT IN OTHER CITIES, BUT I WANTED TO MAKE SURE YOU HAD THIS INFORMATION, THIS, THIS WAS REQUESTED.

SO MAKE SURE THAT'S ON THE TABLE.

OKAY.

SO I WANT TO COME BACK, UM, THAT, THAT'S ALL FOR THE INFORMATION.

SO NOW I JUST WANNA MAKE SURE THAT WE'RE CLEAR ON THE THINGS THAT WE NEEDED TO, UM, TO, TO WORK THROUGH.

SO FIRST OFF THE PERMIT, I THINK, UH, IT, IT FEELS LIKE EVERYBODY'S GOOD WITH REQUIRING A PERMIT ON AN ANNUAL BASIS.

UH, AND THAT WOULD OF COURSE CARRY A FEE AND IT WOULD, UH, SO THEN WE MOVE ON TO INSPECTIONS.

INSPECTIONS IN THE PROPOSED LANGUAGE WOULD BE REQUIRED UPFRONT AND THEN EVERY TIME THEY RENEW, SO ANNUALLY.

NOW KEEP IN MIND THOSE INSPECTIONS ARE LARGELY, I THINK AS, UM, OUR CITY MANAGER, UH, DESCRIBED LAST TIME.

EITHER DONE BY THE HOMEOWNER TAKING VIDEO AND UPLOADING THAT OR, OR DOING IT ON LIVE WITH A PERSON AT THE THIRD PARTY, UM, THIRD PARTY, UH, COMPANY DOING THIS.

OR SOMETIMES THAT.

IT HAS ALSO BEEN DESCRIBED TO US THAT THEY ACTUALLY, THEY TAKE PICTURES AND UPLOAD THEM AND THAT'S, THAT COUNTS AS THEIR INSPECTION.

SO, UM, YOU KNOW, WHETHER THEY'RE HOLDING A NEWSPAPER WITH TODAY'S DATE ON IT.

WELL WE DO.

I, I DON'T KNOW ABOUT THAT PART, BUT, UM, BUT THAT IS THE INSPECTION PROCESS.

IF WE WERE TO SAY WE HAVE TO HAVE A STAFF MEMBER GO OUT AND INSPECT THESE, AGAIN, WE HAVE TO KIND OF START OVER ON THE COST PART BECAUSE THAT'S NOT SOMETHING THAT WE ARE LOOKING TO DO RIGHT NOW.

UM, SO MY QUESTION IS, IF YOU'RE OKAY WITH INSPECTIONS BEING DONE THAT WAY, ARE WE DOING THEM ANNUALLY? ARE WE DOING THEM JUST UPFRONT? I LIKE, I LIKE 'EM WHEN THEY RENEW.

SO I'M OKAY WITH INITIAL AND THEN WHEN THEY RENEW.

YEAH.

AND YEAH.

OKAY.

IS IT CONSENSUS THERE? OKAY.

SOUNDS GOOD.

UM, THE USE, SO AGAIN, WE HAVE THIS RESIDENTIAL CHARACTER THAT WE ARE, THAT THE CODE IS, IS SAYING WE HAVE TO, UM, MAINTAIN THAT RESIDENTIAL CHARACTER WHEREVER THESE ARE BEING DONE AND WE CAN'T HAVE IT AS A PARTY VENUE.

UM, I, I'M NOT SURE WE NEED TO HAVE MUCH CONVERSATION ABOUT THAT, BUT I THINK AS I DESCRIBED IT, WE'RE REALLY LOOKING AT THE PARKING, THE NUMBER OF PEOPLE YOU CAN HAVE, THERE ARE THOSE TYPES OF THINGS.

SO, WHICH, WHICH WE'LL ALSO TALK ABOUT.

SO THE, THE PARKING WAS ONE OFF STREET SPACE PER BEDROOM PLUS ONE.

HOW DOES EVERYBODY FEEL ABOUT THAT? WE, WE ARE TRYING TO PROVIDE SOMETHING THAT NUMBER ONE ALLOWS OR ENSURES, I SHOULD SAY, THAT THE CARS ARE GETTING, THEY'RE NOT PARKING IN THE STREET AS MUCH 'CAUSE WE CAN'T REALLY, WE CAN'T REALLY REGULATE THAT VERY WELL.

UM, BUT ALSO THAT, UM, YOU KNOW, WE'RE, WE'RE, WE'RE SAYING OKAY, YOU CAN'T HAVE BIG PARTIES HERE SO YOU CAN'T HAVE TONS AND TONS OF CARS AND, UM, BUT WE WANNA MAKE SURE THAT IT'S SET UP FOR THIS SORT OF THING.

SO WE FELT THAT THE ONE PER BEDROOM PLUS ONE WAS THAT INSURANCE.

THAT, THAT IT DOES, IT DOES REG REGULATE IT AT LEAST A LITTLE BIT STRICTLY.

UM, 'CAUSE IF YOU'RE ON A TINY LOT WITH NO PARKING, THEN YOU JUST CAN'T DO IT.

YEAH.

YEAH.

I LIKE THAT.

EVERYBODY SEEMS OKAY WITH THAT? OKAY.

MM-HMM .

UM, AND THEN ON A SIMILAR NOTE AS THE OCCUPANTS, THAT WAS TWO PER BEDROOM PLUS TWO, THAT'S, THAT'S STILL A PRETTY DECENT SIZE, UM, GROUP IN A HOUSE.

IS THAT MORE THAN YOU WOULD SEE LIVING IN A HOUSE? PROBABLY NOT IN SOME CASES, MAYBE SO IN OTHERS.

SO, UH, AGAIN, I'M JUST LOOKING TO YOU TO SAY, DOES THAT SEEM LIKE A REASONABLE TWO PER BEDROOM PLUS TWO, WHAT WOULD YOU CONSIDER PLUS TWO? IS THAT SOMEONE SLEEPING IN THE LIVING ROOM? YEAH.

MAYBE YOU HAVE A FOLD OUT COUCH IN THE LIVING ROOM OR SOMETHING, OR I DON'T, THEY SLEEP ON THE FLOOR IN THE KITCHEN.

IT IT'S, IT'S, IT'S TWO EXTRA PEOPLE WHEREVER THEY'RE SLEEPING.

OKAY.

MAYOR AND COUNSEL, I, I NEED TO INTERRUPT FOR A SECOND ONE.

IT GOES BACK TO THE FIRST CONVERSATION ON THE HOA AND PUTTING STUFF IN THAT'S JUST NOT ENFORCEABLE.

I HAVE ZERO IDEA HOW WE WOULD ENFORCE OCCUPANCY.

YEAH.

UM, MARTIN AND I HAD THIS CONVERSATION WHEN WE WERE MURDER BOARDING THIS PRESENTATION.

IT'S, WE DON'T, WE DON'T REGULATE OCCUPANCY ON A HOME CURRENTLY.

AND SO I DON'T KNOW HOW WE WOULD REGULATE OCCUPANCY FOR A SHORT TERM RENTAL AT THE SAME TIME.

MM-HMM .

NOW YOU CAN SAY IT, YOU CAN STATE IT IN THE PERMIT, BUT IT DOESN'T, UNLESS WE'RE THERE, THERE'S NO WAY TO ACTUALLY REGULATE THAT IN ADDITION TO THE PARKING PIECE.

WE NEED TO BE VERY CAREFUL ON WHAT THAT IS.

UM, JUST SO THERE ARE NUMEROUS HOMES IN BAYTOWN THAT ARE ONE CAR GARAGE WITH A SINGLE DRIVEWAY IN, IN FRONT OF THAT GARAGE, THAT'S TWO SPACES.

SO THAT BASICALLY THEY CAN RENT OUT ONE ROOM OF THEIR HOUSE FOR, FOR THAT TO BE.

NOW, DOES THAT ALSO MEAN THAT IF THEY RENT OUT THAT ONE ROOM AND SOMEBODY USES TWO CARS,

[00:55:01]

THAT THE OWNERS OF THE PROPERTY CAN THEN PARK FOUR CARS ON THE STREET? HOW DO WE REGULATE THAT? AND SO I, I'M, I'M TRYING TO JUST MAKE SURE THAT WE ARE AWARE BECAUSE Y'ALL ARE GONNA CALL ME WHEN THE CITIZEN CALLS YOU, AND I'M GONNA BE LIKE, I DON'T HAVE A GREAT ANSWER FOR YOU.

AND I WOULD PREFER THAT WE KIND OF LIKE HASH THAT OUT UP HERE SO WE CAN HANDLE IT BEFORE WE GET TO THAT ENFORCEMENT PIECE AND IT CAUSES COMPLICATIONS.

SOME OF YOU MAY ALSO KNOW THAT IF YOU'RE USING ONE OF THE MAJOR BRANDS, YOU'RE USING AIRBNB OR VRBO, ONE OF THOSE, THEN A LOT OF TIMES THOSE COMPANIES ALSO THE OWNERS WILL, UM, WILL REGULATE THE OCCUPANCY THROUGH THOSE COMPANIES AND THEY'LL POST IT AS PART OF THEIR LISTING.

SO IF THERE'S A COMFORT LEVEL THAT WE KNOW THAT, YOU KNOW, 80, 90% OF THESE ARE GONNA BE THOSE TWO COMPANIES, THEN MAYBE THE OCCUPANCY CAN COME OUT AND, AND WE WON'T.

UM, THE THE OTHER THING I'M THINKING ABOUT THOUGH IS THE OCCUPANCY WILL PROBABLY ONLY BE ENFORCEABLE IF WE GET A COMPLAINT AND GO OUT AT THAT TIME.

SO IF IT'S FOR US, IF IT'S DURING THE DAY, 'CAUSE WE'RE NOT GONNA GO OUT AND LOOK AT IT AT 10 O'CLOCK ON A SATURDAY, THAT'S THE COPS THAT RIGHT.

AND THAT'S WHERE IT PUTS PD IN A VERY PRECARIOUS SITUATION BECAUSE THEY DON'T HAVE A WAY TO JUSTIFY OR CITE OR, OR TALK TO ANYTHING.

THEY'RE LIKE, HEY, THEY GO OUT, THEY GET A COMPLAINT AND THE HOME ONLY ALLOWS EIGHT PEOPLE, AND THEN THERE'S 10 PEOPLE AT THE HOUSE AND THEY'RE LIKE, HEY, THESE TWO PEOPLE ARE ACTUALLY STAYING OUTSIDE THE WHOLE TIME, TIME AND THEY'RE, THEY'RE SLEEPING IN A TENT AND THEY AREN'T STAYING.

AND SO THE OFFICER THEN HAS TO SAY, I DON'T KNOW HOW TO CITE THIS OR ENFORCE THIS.

YEAH.

I DON'T, SOMETHING, I MEAN, FOR ME, I DON'T, I DON'T EXPECT STAFF TO REALLY ENFORCE THE NUMBER OF CARS OR THE NUMBER OF OCCUPANTS.

I THINK IT'S PART OF THE PERMIT PROCESS.

LIKE YEAH, IF YOU'RE GONNA LIST THIS AS A THREE BEDROOM, THERE NEEDS TO BE FOUR PARKING SPACES.

BUT I MEAN, I DON'T THINK WE NEED TO GO BY AND CONSTANTLY CHECK TO SEE IF THERE ARE FIVE CARS THERE.

IT'S JUST PART OF THE PERMIT PROCESS.

OKAY.

UM, OCCUPANTS, BUT IT KIND OF, THE OCCUPANTS IS THE SAME THING.

I MEAN, IF, IF IT HAS THREE BEDROOMS, IT CAN BE LISTED FOR EIGHT PEOPLE.

RIGHT.

AND I THINK THAT'S JUST A, IN THE PERMIT PROCESS, WE NEED TO SAY, HEY, YOU'RE, YOU KNOW, THIS IS A EIGHT PERSON LISTING.

NOW, I DON'T KNOW IF THAT'S SOMETHING THIS COMPANY CHECKS ON TO SEE IF THEY'RE STAYING WITHIN THEIR, THEY CAN PERMIT REQUIREMENTS.

YEAH.

I MEAN, WHEN THEY'RE OUT THERE, YOU KNOW, CHECKING THESE WEBSITES, THEY WOULD, BUT I WOULD NOT EXPECT US TO GO MAKE SURE THERE'S NOT TWO EXTRA PEOPLE.

I, I DON'T THINK WE NEED TO BE ENFORCING THAT.

I THINK IT JUST NEEDS TO BE, IT NEEDS TO BE LISTED AS AT THE RIGHT NUMBER.

AND WHEN YOU GO AND SEARCH, I MEAN, WHEN YOU GET ON AIRBNB AND SEARCH FOR A HOUSE THAT'LL HOLD EIGHT PEOPLE, YOU KNOW, IT, IT'S GONNA POP UP THE WHATEVER'S WITHIN YOUR SEARCH CRITERIA.

BUT I DON'T EXPECT US TO BE ENFORCING THE NUMBER OF VEHICLES OR THE NUMBER OF OCCUPANTS CLARIFICATION ON THE PARKING.

THE PARKING IS A MINIMUM.

SO WE JUST WANNA MAKE SURE WHEN THE PERMIT IS ISSUED THAT THEY HAVE THE MINIMUM NUMBER OF PARKING SPACES AVAILABLE.

RIGHT.

SO THERE IS NOTHING TO ENFORCE ON THAT.

I GUESS LONG TERM, WE JUST NEED TO KNOW UPFRONT, IF I'M RENT OUT FOUR BEDROOMS, I'VE GOT AT LEAST TWO SPACES IN THE GARAGE AND THREE IN THE DRIVEWAY AND ALL ARE AVAILABLE FOR RENT FOR THE RENTAL.

RIGHT.

UH, FOR THE RENTERS.

YEAH.

I THINK I AGREE WITH, AND I THINK TO ANSWER JASON'S QUESTION, IT'S JUST YEAH, THAT'S PART OF RECEIVING YOUR PERMIT.

BUT ONCE THEY HAVE IT, WE'RE NOT GONNA GO RIDE BY AND COUNT CARS AND ASK HOW MANY PEOPLE ARE IN THE HOUSE.

AND MY, THAT'S THE WAY I SEE IT FUNCTIONING.

IT'S JUST ME.

YEAH.

AND I THINK THAT'S WHERE WE'RE, BECAUSE YOU'RE, YOU'RE TRYING TO MINIMIZE SOMEBODY SAYING, HEY, I, I ONLY, I CAN ONLY PUT TWO, THREE CARS IN MY DRIVEWAY, BUT I WANNA RENT A HOUSE FOR EIGHT TO NINE PEOPLE.

NO, THAT'S, THEY, IT'S NOT, I MEAN, AND I'M ASSUMING THE, THE OCCUPANCY IN THE, IN THE, IN THE OTHER PARTS WOULD BE ENFORCED BY THE, THE, UH, THE, UH, COMPANY THAT YOU'RE HAVING THAT'S GONNA BE WATCHING THEM.

SO THAT'S KIND OF ONE OF THE THINGS THAT, IT'S NOT THE NOISES AND OTHER THINGS, OF COURSE THAT'S DIFFERENT.

THAT'S POLICE.

BUT THIS IS SECONDARY.

SECONDARY.

BUT THE OCCUPANCY SHOULD BE, I'M ASSUMING, ENFORCED BY THE COMPANY WE'RE PAYING TO REGULATE THIS STUFF FOR US.

CORRECT.

OKAY.

I, I DON'T KNOW THAT THEY WOULD, OTHER THAN RIGHT AT THE BEGINNING OF THE PROCESS TO SAY THIS.

I MEAN, LIKE YOU MENTIONED THAT, THAT THE LISTING SAYS THIS CAN HOLD UP TO EIGHT PEOPLE, THEN THAT WOULD BE SOMETHING THAT THEY COULD, UM, REGULATE AND ENFORCE.

UM, BUT LATER ON DOWN THE ROAD, IF SOMEBODY SAYS THIS IS LISTED FOR 10 PEOPLE AND THEY HAVE 11, UH, IT'S, THAT'S, THEY'RE NOT GONNA DO IT AND WE'RE NOT GONNA DO IT EITHER, PROBABLY.

MM-HMM .

YEAH.

COUNSEL, CAN I GET SOME CLARIFICATION? AND I APOLOGIZE IF I WAS, UM, IF I DIDN'T HEAR CORRECTLY, UH, BECAUSE WE HAVE BEEN, UH, TALKING BACK AND FORTH FORTH, BUT, UM, WHEN, UH, I THOUGHT I HEARD YOU SAY YOU'RE NOT INTERESTED IN

[01:00:01]

STAFF ENFORCING, UH, SOMETHING IN PARKING THAT'S IN A PERMIT.

DID YOU MEAN YOU, YOU LITERALLY DON'T WANT CITY STAFF DOING THAT? UM, BUT IT'S OKAY IF THE CONSULTANT DOES THAT OR ARE YOU SAYING WE SHOULDN'T BE FOCUSING ON THE ENFORCEMENT OF A PARKING RESTRICTION IN THE PERMIT? I'M, WHEN SOMEBODY CALLS IN THOUGH, CAN WE HOLD THAT QUESTION? LET KEN, KEN'S BEEN WANTING TO SAY YEAH, THANK YOU.

UM, I WAS KIND OF PIGGYBACKING ON SOMETHING MIKE LE SAID EARLIER IS IF WE PUT THIS IN ORDINANCE, OUR, OUR COUNSEL, OUR OUR CONSTITUENTS CAN EXPECT US TO ENFORCE IT.

ABSOLUTELY.

THEY'RE GONNA EXPECT, HEY, THIS IS, I'M, I'M HAVING THAT ISSUE RIGHT NOW.

THIS IS THE ORDINANCE WITH, WITH, WITH PARKING.

SO, UM, I THINK WE NEED TO BE CAREFUL TO PUT THAT INTO ORDINANCE IF WE'RE NOT PREPARED TO HAVE THE TEETH TO ENFORCE IT.

UH, SO I THINK OUR CURRENT ORDINANCE, OUR PARKING ORDINANCE SHOULD SUFFICE, YOU KNOW, NO PARKING ON THE GRASS.

UM, BUT TO ASK TO, UH, ENFORCE THE OCCUPANTS, IT'S, IT'S A, IT'S A DANGEROUS ROAD GOING DOWN.

SO, AND, AND FOR CLARIFICATION, UM, UH, OR, OR TO SUPPLEMENT THE COUNCIL MEMBER'S STATEMENTS, WE, WE ARE KIND OF SIMULTANEOUSLY HAVING A PERMIT DISCUSSION AND AN ORDINANCE DISCUSSION.

AND MAYBE WE SHOULD DISTINGUISH BETWEEN THE TWO AND WHERE YOU WOULD LIKE CERTAIN LANGUAGE TO, TO APPEAR.

AND YOU MUST BE READING MY MIND, 'CAUSE THAT WAS MY COMMENT.

'CAUSE YOU MENTIONED IT TO ME.

BOTH THE PARKING AND OCCUPANCY REQUIREMENTS IS A PERMITTING PROCESS.

MM-HMM .

I HAVE A HOUSE WITH X NUMBER OF BEDROOMS. I CAN ONLY HAVE, I CAN ONLY ADVERTISE IT FOR TWO PEOPLE PER BEDROOM PLUS TWO.

SO I'VE GOT A THREE BEDROOM HOUSE I'M LOOKING AT, I CAN ADVERTISE, I HAVE A THREE BEDROOM HOUSE WITH OCCUPANCY UP TO A MAXIMUM OF EIGHT.

AND I HAVE TO HAVE, IN MY PERMIT APPLICATION, I HAVE TO SHOW THAT I HAVE AT LEAST FOUR PARKING SPACES.

THAT'S A PERMIT PROCESS.

MM-HMM .

IF WE GET A COMPLAINT, WELL, THERE'S NINE PEOPLE THAT SPENT THE NIGHT THERE LAST NIGHT.

HOW AM I GONNA KNOW THAT BY THE TIME I GET THERE? OR CHIEF GETS THERE, THREE OF 'EM HAVE LEFT, THERE'S ONLY SIX.

SO THEY'RE IN COMPLIANT.

BUT IT'S A PERMITTING PROCESS TO HELP US SO THAT IF I'VE GOT A TWO BEDROOM AND I WANNA LEASE IT OUT TO 10 PEOPLE, I CAN'T DO THAT.

I CAN'T GET A PERMIT FOR THAT.

MM-HMM .

SO IT'S A LIMITING FACTOR FOR THE PERMITTING PROCESS, NOT THE ENFORCEMENT PROCESS.

THE ENFORCEMENT IS, WE GET A COMPLAINT, WE GO OUT YEAH.

THE CHIEF PULLS UP.

YEAH.

THEY GOT 12 CARS OUT HERE AND 53 PEOPLE IN THE HOUSE.

WELL NOW THAT'S ONE OF THOSE VIOLATIONS THAT WE GO ON THE MARK.

THEY GET THROUGH THOSE THAT THEY'RE GONNA BE SUSPENDED FOR 12 MONTHS.

THAT'S THE ENFORCEMENT PHASE, YOU KNOW, NOT NECESSARILY GONNA GIVE 'EM A TICKET.

'CAUSE WHAT ARE YOU GONNA SIGN 'EM FOR OTHER THAN YOU'RE IN VIOLATION OF YOUR PERMIT, YOU HAVE TOO MANY PEOPLE HERE, YOU GOT TOO MANY CARS, IT'S A VIOLATION.

HERE'S YOUR NOTICE OF VIOLATION.

WE GO ON, YOU GET TWO MORE, YOU GET SUSPENDED FOR 12 MONTHS.

THAT'S TWO SEPARATE ROADS THAT GO DOWN.

BUT, BUT I AGREE WITH TRYING TO LIMIT THE PERMITTING PROCESS SO THAT WE CAN CATEGORIZE.

IT'S A SMALLER HOUSE THAT HAS FEWER PEOPLE AND FEWER PARKING, BIGGER HOUSE, MORE PEOPLE, MORE PARKING.

OKAY.

THAT'S PART OF THE PERMIT PROCESS.

OKAY.

AND THAT'S WHAT I'M GETTING OUT OF THAT.

AND, AND REMEMBER TOO, WHAT THE MARKET IS IN BAYTOWN, IT, IT'S NOT THE SAME MARKET AS A, AS A HOUSTON OR LIKE A, A BEACH COMMUNITY OR SOMETHING LIKE THAT.

IT'S NOT GONNA BE THE SAME AS GALVESTON.

IT'S NOT THE SAME MARKET.

SO ARE WE GONNA SEE, YOU KNOW, THE PARTIES OF THE 50 CARS AND THE, AND OUT PARKED EVERYWHERE? MAYBE, BUT PROBABLY NOT.

UM, SO, UH, I, I WOULD AGREE WITH COUNCIL MEMBER LESSER, I THINK THIS, THIS IS REALLY, IT'S MORE ABOUT THE PERMITTING PROCESS.

AND WE WOULD, WE WOULD ATTEMPT TO ENFORCE IF THERE WAS A, AGAIN, PARKING IS ONLY GONNA BE AT THE FRONT END, THE OCCUPANCY PART.

WE WOULD ATTEMPT TO ENFORCE THAT.

BUT IF WE GET THERE AND THEY SAID THERE WAS 11 PEOPLE IN HERE AND YOU GET THERE AND THERE'S ONLY FIVE, THEN YOU, YOU JUST GO, OKAY, WELL WE CHECKED IT AND THERE'S ONLY FIVE PEOPLE.

SO YEAH.

COUNSEL, IF I COULD MAKE A CLARIFICATION, THERE IS ADMINISTRATIVE ENFORCEMENT OF OUR PERMITS.

THAT'S SOMETHING DIFFERENT THAN PROSECUTION OF OUR ORDINANCES.

MM-HMM .

GOT IT.

OKAY.

SORRY.

BUT THAT'S THE SAME POINT THOUGH, MARTIN, IF YOU DO, IF YOU ISSUE A BUILDING PERMIT AND SOMEBODY'S VIOLATING THE BUILDING PERMIT, WHAT HAPPENS? WE SEND SOMEBODY OUT TO CHECK IT OUT.

THAT'S RIGHT.

THAT'S, THAT'S WHAT I'M SAYING HERE.

EVEN WITH THE, EVEN IF THE PERMIT IS ISSUED, THE PERMIT STILL HAS TO BE ENFORCED.

AND THAT'S, I I

[01:05:01]

PRO THE ONLY REASON I'M PUSHING BACK ON THIS MM-HMM .

IS BECAUSE I PROMISE YOU I'M GOING TO GET PHONE CALLS.

THERE ARE MULTIPLE MEMBERS ON THIS DAAS THAT ARE GONNA CALL ME IMMEDIATELY AS SOON AS THIS THING PASSES.

AND I'M GONNA BE, I'M GONNA HAVE TO SAY WE'RE NOT ENFORCING IT.

AND THEN, THEN I'M, THEN I'M BREAKING MY CONTRACT BECAUSE I'M NOT ENFORCING THE LAWS OF THE CITY AT THAT POINT.

AND THAT'S A CHALLENGING PLACE FOR ME TO BE IN.

MM-HMM .

WELL, I MEAN, WITH IT BEING A PERMIT, AGAIN, WE GO BACK TO THE PERMIT PROCESS.

SO, UM, THERE'S NO WAY THAT WE CAN TELL THAT SOMETHING WAS DONE WRONG.

IF THE NEIGHBOR'S TAKING A PICTURE AND HE SUBMITS THAT AND SAID, YES, THEY ARE IN VIOLATION.

I SAW 15 CARS THERE, I SAW 12 PEOPLE COMING OUT OF THE HOUSE.

I MEAN, THEY HAVE TO, I, I THINK SUBMIT SOMETHING, WOULDN'T THEY? OR ARE WE JUST SAYING, OKAY, WE'RE GONNA GO BACK AND, AND CHECK THIS OUT.

I THINK WHAT WE'RE SAYING IS THAT THERE IS AN ENFORCEMENT MECHANISM THAT'S INHERENT IN THE ISSUING OF A PERMIT.

MM-HMM .

SO THAT IF THERE'S A COMPLAINT AND, AND WE DO THIS IN A NUMBER OF DEPARTMENTS, UH, OUTSIDE OF PD, THE HEALTH DEPARTMENT PLANNING DEVELOPMENT SERVICES, FIRE MARSHAL.

UH, IF WE GET A COMPLAINT ABOUT SOMETHING, THEN WE INVESTIGATE AND WE MAKE A DETERMINATION.

AND TYPICALLY THE DIRECTOR OF THAT DEPARTMENT HAS THE ULTIMATE DECISION MAKING AUTHORITY BASED ON THE EVIDENCE THAT WAS PRESENTED TO THE DIRECTOR.

SO THERE IS AN ENFORCEMENT MECHANISM.

IT'S JUST NOT THE SAME ENFORCEMENT MECHANISM THAT WE USE FOR OUR ORDINANCES.

OKAY.

I MEAN, AND THAT, THAT CAN ALSO BE TAKEN BACK TO THE PROPERTY OWNER.

YOU RECEIVED THESE COMPLAINTS, YOU NEED TO FIX IT.

THAT IS 100% ACCURATE.

SO IF IT CONTINUES AND THEY FALL INTO THE REGULATION OF YOU'VE HAD THESE VIOLATIONS BECAUSE YOU'VE HAD THESE MANY COMPLAINTS.

THAT'S RIGHT.

YOUR PERMIT'S YANKED.

YEAH.

YOU CAN'T DO X, YOU CAN'T DO Y MM-HMM .

SO THE, THE INHERENT NATURE OF ISSUING A PERMIT IS THAT THERE WILL BE ENFORCEMENT.

IT JUST MAY NOT COME ACROSS MY DESK.

RIGHT.

OKAY.

RIGHT.

ARE YOU ALL GOOD? AS IT RELATES TO PARKING? MM-HMM .

THE PERMIT JUST SAYS YOU NEED TO HAVE, YOU KNOW, SPACES PER NUMBER OF BEDROOMS PLUS ONE.

RIGHT.

LIKE THE PERMIT DOES NOT STATE HOW MANY CARS, MAXIMUM CARS.

THAT'S CORRECT.

IT IS A MINIMUM ONLY A MINIMUMS. CORRECT.

IT'S SO THERE'S NOTHING TO ENFORCE THERE.

THERE'S NOTHING IF YOU GET A CALL THAT THERE ARE TOO MANY CARS YES SIR.

CORRECT.

THAT ALL YOU SAY IS THEY MEET THE PERMIT, THEY HAVE FOUR PARKING SPACES AS THEY'RE REQUIRED TO HAVE.

YES, SIR.

YOU'RE CORRECT.

SO YOU WON'T GET, I MEAN YES, YOU WILL GET THE CALL.

I'LL BE CALLS YES.

BUT THERE'S NOTHING TO GO ENFORCE.

YES, SIR.

BECAUSE THEY THE PERMIT.

YES, SIR.

SO ON THE OCCUPANCY, I THINK WE NEED TO WORD IT YES.

ON IT CAN BE LISTED AS LIKE THE OCCUPANCY IS ASSOCIATED WITH THE LISTING.

YES.

NOT WITH HOW MANY PEOPLE MAY BE IN THE HOUSE.

THAT'S CORRECT.

YES, SIR.

SO THEN THERE'S NOTHING TO ENFORCE THAT EITHER.

THAT IS CORRECT.

YES, SIR.

AS LONG AS IT'S LISTED CORRECTLY.

YES, SIR.

SO I THINK THAT THAT ADDRESSES IT.

I JUST, BUT YEAH, NO, BECAUSE YOU RENT A THREE BEDROOM HOUSE, YOU COULD HAVE EIGHT PEOPLE THAT ARE PART OF THE RENTAL AGREEMENT AND THEN THEY HAVE FRIENDS COME OVER, YOU'RE GONNA HAVE MORE THAN THE EIGHT, BUT THEY'RE NOT PART OF THE RENTAL AGREEMENT.

YEAH, BECAUSE WE DON'T KNOW WHAT TIME TO GO TO BED.

THEY WENT TO BED AT 2:00 AM IN THE MORNING.

IT DOESN'T MATTER.

OH EIGHT WENT TO BED AT 2:00 AM IN THE MORNING.

BUT, AND IF IT GOES BACK TO THE FEES WHEN Y'ALL ARE, WHEN Y'ALL ARE DISCUSSING THAT AS MUCH TIME AS I'VE SPENT WITH A FEW MEMBERS ON SHORT TERM RENTALS, IF Y'ALL WANT TO TAKE MY HOURLY RATE AND PUT IT ON THE, THE SHORT TERM RENTAL FEE, I APOLOGIZE.

, YOUR HOURLY RATE'S ABOUT 20 CENTS AN HOUR.

WELL, IT'S A DUE DILIGENCE.

IT'S A DUE D I'LL MAKE MY STATEMENT 20 HOURS A DAY THAT YOU PUT IN.

I'LL MAKE MY STATEMENT AGAIN.

ARLINGTON WON THEIR SUPREME COURT CASE AND BANNING S ST.

ALL RIGHT, MARTIN, I I, LET ME MAKE SURE I GOT THAT, THAT LAST ONE WE'RE OKAY WITH THE PARKING THE WAY WE ALREADY SAID WE'RE GOOD WITH THE PARKING REGULATION, THE OCCUPANCY, IF WE'RE PUTTING IT IN AS A LISTED OCCUPANCY FOR, FOR YOUR LISTING, NOT NECESSARILY SOMETHING THAT'S THE ACTUAL NUMBER OF PEOPLE THAT ARE IN THE, WE'LL FIGURE OUT HOW TO WORD THAT.

BUT, BUT THAT WAS THE CONSENSUS WAS WE'RE WE'RE GOOD WITH THAT.

YES.

OKAY.

ALRIGHT.

ARE YOU GUYS GOOD WITH THAT? I'M, YEAH.

WITH THAT VERBIAGE.

OKAY.

YOU'RE, ARE WE AT THE END? WE, WE ARE.

I HAVE NOTHING FURTHER.

YOU GOTTA GET THROUGH POSTING.

OKAY.

WELL AND 'CAUSE 'CAUSE YOU HAVE ON POSTING, YOU HAVE A LOCAL 24 HOUR CONTACT.

I WROTE DOWN AND I PUT IT IN QUOTES.

LOCAL, WHAT'S LOCAL? I HAVE THE SAME QUESTION.

DEFINE LOCAL.

DEFINE LOCAL.

THE, AS PROPOSED THE LANGUAGE DOES NOT DEFINE LOCAL, BUT WE CAN SAY WITHIN AN HOUR OR SOMETHING LIKE THAT WITHIN 50 MILES.

DO WE REQUIRE THAT OF

[01:10:01]

HOTEL MOTELS OR, YOU KNOW, NORMALLY THEY HAVE APARTMENT COMPLEX MANAGEMENT REPRESENTED ON SITE, BUT THAT'S DIFFERENT 'CAUSE THEY HAVE SOMEBODY ON SITE.

BUT YEAH, NOT ALL OF THEM.

SO WHAT IS NOT ALL OF THEM? THAT WOULD BE MY QUESTION.

WHAT IS LOCAL? DO YOU HAVE A PREFERENCE? UH, NO.

I JUST HAVE A QUESTION.

IT'S KIND OF LIKE WHAT'S LOCAL.

WE'RE TALKING ABOUT HOUSTON, DALLAS, AUSTIN, SAN ANTONIO, SAN DIEGO, SAN FRANCISCO, NEW YORK CITY WITHIN A 50 MILE RADIUS .

UM, WE'LL, WE'LL DO A LITTLE BIT MORE.

WE'LL SEE WHAT OTHER CITIES HAVE LISTED IF THEY'VE DEFINED IT AND IF SO, WE'LL, WE'LL FIND A GOOD AVERAGE AND PUT THAT IN THERE BECAUSE THANK YOU.

SOMEBODY LIKE AIRBNB, YOU KNOW, IF IT'S AN AIRBNB, THE OWNER COULD HAVE A MANAGEMENT COMPANY OR WHATEVER THAT'S MANAGING THE PROPERTY FORM OR SOMETHING.

SO THAT, THAT WAS MY, AND THEN WE HAVE ON THEIR MINIMUM STAY OF 24 HOURS, BUT I GO BACK TO THE RESIDENTIAL CHARACTER, HE KINDA LOSES RESIDENTIAL CHARACTER IF WE'RE CHANGING OCCUPANTS EVERY 24 HOURS.

SO IT'S, YOU KNOW.

DO OTHER CITIES, HAVE YOU SEEN OTHER CITIES REQUIRE A LITTLE BIT LONGER MINIMUM STAY? NO, AND IN FACT, WE DID HAVE A CONVERSATION WITH THE DIRECTORS THE OTHER DAY, UH, REGARDING WHAT IF MY CHECK-IN TIME'S AT THREE AND CHECKOUT TIME IS AT 11, THAT'S LESS THAN 25 JUST LIKE A HOTEL.

SO, SO WHAT DO WE DO WITH THAT? AND I QUITE FRANKLY DON'T HAVE AN ANSWER FOR THAT.

RIGHT.

WE CAN TAKE THAT PART OUT.

IT IS IN LISTED THAT WAY IN SOME CITIES.

IN SOME CITIES IT'S NOT, IT IS REALLY ABOUT THE, THE RENTAL OF THE SPACE FOR 24 HOURS, NOT THE OCCUPANCY.

SO NOW WE'RE GETTING INTO THOSE LITTLE, UM, KIND OF PICKY THINGS, BUT THE RENTAL OF THE SPACE IS FROM THREE TO THREE BECAUSE NOBODY ELSE IS ALLOWED TO COME IN UNTIL THREE O'CLOCK.

UM, IT, THAT SAID, IF YOU WANTED TO TAKE THAT OUT, WE COULD, UM, THAT THAT'S YOUR CALL.

UH, I MEAN CAN JUST HAVE THIRD THE HAVE SOME TYPE OF MINIMUM, BUT YEAH, IT'S 24 HOURS TOO MINIMUM.

YEAH.

OR I, YOU KNOW, I DON'T KNOW.

IT'S, IT'S REALLY NOT A HOTEL MOTEL, IT'S A AIRBNB.

UM, AND, AND AGAIN, WE'RE NOT A HIGH RECREATION, YOU KNOW, VACATION RESORT AREA.

UM, I KNOW THERE'S A LOT OF CONCERN ABOUT NOT YET.

UH, I KNOW THERE'S A LOT OF CONCERN ABOUT PLANT WORKERS AND STUFF LIKE THAT, BUT PLANT WORKERS ARE GONNA BE MORE THAN 30 DAYS, SO IT'S NOT GONNA APPLY TO THOSE, YOU KNOW, I KNOW A LOT OF THOSE GUYS COMING AND OUT KNOW, KNOW, I KNOW SEVERAL OF THE RV PARK OWNERS AND THOSE GUYS COME IN FOR THREE TO SIX MONTHS AT A POP.

SO, UM, YOU KNOW, IT'S NOT GONNA APPLY TO THEM ANYWAY.

LIKE I SAID, A LOT OF OUR MEDIUM CLASS HOTEL ARE, WE'RE LOSING REVENUE BECAUSE THEY'RE LONG TERM, THEY'RE MORE THAN THAT 30 DAYS, BUT 24 HOURS IS A LITTLE SHORT.

BUT YEAH, I DON'T KNOW WHAT THE, IF THERE'S A STANDARD OR SOME HAVE IT, SOME DON'T AND SOME HABITS, SOME DON'T.

I THINK IF, IF THEY HAD IT 24 HOURS WAS, WAS THE STANDARD.

BUT I THINK, I MEAN YOU CAN SAY MORE THAN THAT IF YOU WANT.

I THINK AGAIN, I AGREE WITH HAVING AT LEAST A MINIMUM OF 24 HOURS.

OKAY.

THAT'S, THOSE ARE THE ONLY TWO FINAL QUESTIONS I HAD.

SO YOU CAN DO 72, WHICH IS A WEEKEND, YOU KNOW, THREE DAYS.

YEAH.

48 FOR A WEEKEND.

YEAH.

YEAH.

EVEN THOUGH WE KNOW A LOT OF 'EM ARE COMING DURING THE WEEK, BUT YOU CAN DO AT LEAST A MINIMUM OF 72 HOURS.

BUT WE CAN KIND OF FINESS THAT 24.

I MEAN THAT'S A SAME AS DENIED AT A HOTEL.

YEAH.

I MEAN THE POINTS TO AVOID HOURLY RENTALS.

RIGHT, RIGHT.

SO RIGHT.

24 PANELS THEN, IS THERE, IS THERE A CONSENSUS ON THAT? LEAVE IT AT 24, MAKE IT MORE THAN 24.

I'M GOOD EITHER WAY.

GOOD.

OKAY.

OKAY.

ALRIGHT.

UM, THAT, THAT IS ALL I HAVE FOR YOU.

I THINK I'VE GOT THE ANSWERS I NEED.

WE WILL BE LOOKING AT BRINGING THIS BACK TO YOU, THE SECOND MEETING IN JUNE FOR, UH, WE WILL AMEND THE PROPOSAL AND BRING IT BACK TO YOU PROBABLY.

WHAT'S THE SECOND MEETING IN JUNE? 23RD? 23RD.

25TH.

25TH I BELIEVE.

25TH.

25TH.

WHATEVER THAT MEETING IS.

WE'LL, WE'LL HAVE IT AT THE REGULAR MEETING FOR APPROVAL.

OKAY.

MS. CITY SECRETARY, CAN YOU, UM, WE MAKE SURE THAT ALL OF THE COUNCIL MEMBERS WOULD BE AVAILABLE OR AT LEAST LET THEM KNOW THAT WE'RE, OR AT LEAST THOSE THAT ARE MISSING THAT THIS IS COMING UP AND IF THEY WANT TO REGULATE ON THAT TO BE HERE.

.

THANK YOU.

UM, CITY MANAGER REYNOLDS, WOULD YOU LIKE, UH, A MEMO PUT OUT TO THE FULL COUNCIL THAT KIND OF SUMMARIZES WHAT WE TALKED ABOUT TONIGHT? I COULD DO THAT TOMORROW.

THANK YOU.

UM, ANY OTHER ITEMS? NO.

OKAY.

WELL, EASY PEASY.

WE ADJOURN AT 5 53.

EASY.