* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:01] WE'LL CALL THE CITY COUNCIL [1. CALL SESSION TO ORDER] WORK SESSION FOR THURSDAY, MARCH 5TH, 2020. TAKES ORDER AT 6:01 PM ROLL CALL. COUNCILMAN WARNER? HERE. COUNCILOR MORRIS? HERE. COUNCILOR GORDON PORTERFIELD. HERE. DR. KING. HERE. MAYOR THORNTON. DAVID HERE. UH, FIRST ITEM [3.1. Discussion of short-term rental management. (Kate Moriarty)] UP IS THREE ONE DISCUSSION OF SHORT TERM RENTAL MANAGEMENT. MAY, MAY I MAKE A QUICK POINT OF ORDER? CAN, OR HAVE A, I'D LIKE TO MOVE UP TO 0.2 FOR MY TWO MINUTES SPEECH NOW. AND THEN FIVE MINUTES FOR COUNSEL OR WORK SESSION DISCUSSION. I DON'T HAVE ISSUE. DO. THIS WILL BE EXCITING. ALL RIGHT. IT'S JUST TWO MINUTES. I'LL TAKE TWO MINUTES AND I'M NOT ASKING FOR ANYONE MINUTES. FIVE MINUTES, TWO MINUTES. THREE MINUTES TWO. OKAY. HOLD ON, HOLD ON. I GOTTA READ IT. OH. DISCUSSION AND POSSIBLE ACTION RELATED TO WORK SESSION PODCAST. I JUST NOTICED, UH, THAT OVER THE PAST THREE OR FOUR MEETINGS AND NO SHORTCOMING OR FALL BY ANYONE IN THESE MEETINGS OR STAFF OR ANYTHING, BUT WE HAVE NOT DONE THE POSSIBLE ACTION RELATED TO WORK SESSION TOPICS FOR SEVERAL WORK SITTING MEETINGS, IF I REMEMBER CORRECTLY. SO, AND I UNDERSTAND THAT WE'VE DONE THAT. I WAS JUST WANTING TO KNOW IF FOR FIVE MINUTES PEOPLE COULD SHARE THOSE TOPICS. IF THEY WANTED ME RIGHT NOW AND THEN FIVE MINUTES OR LESS, THEN YOU'D BE DONE AND GO BACK TO NORMAL. YES. FOR LIKE, ON FROM MY PREVIOUS, RIGHT. SO YOU, IRAQ. 'CAUSE THE LAST COUPLE, FEW WE RUN OVER. YOU GUYS HAVE, DO YOU KNOW, ARE YOU, YOU BACK MORE? I'M LETTING THEM PEOPLE POP AND SEE ME. I WANNA BE SEEN. JOHN, IF HE GETS TOO CLOSE TO THE WINDOW, I'LL PULL, PULL ME BACK. PULL ME BACK. SO AGAIN, I'M NOT SAYING I HAVE A SPECIFIC N ENGINE, I JUST KNOW THAT WE, WE, WE'VE SKIPPED OVER THAT AND UNDERSTANDABLY SO WITHOUT ANY BLAME OR HARM OR PROBLEM. BUT IF ANYONE WANTED TO TALK ABOUT FUTURE SUBJECTS, UM, NOW'S OUR TIME. AND I'VE ALREADY DONE PAST MY TWO MINUTES AND I'M INTO THE, WE HAVE THREE AND A HALF MINUTES OR THREE MINUTES LEFT. YOU DON'T GET ONE MINUTE. YES SIR. YOU'RE GOOD. YEAH. THAT WHAT HE IS TRYING TO SAY IS THAT THAT AGENDA ITEM IS, IS, IS NOT MEANT FOR. LET'S TALK ABOUT WHAT FUTURE WORKSHOPS MAY BE. THAT, THAT, THAT WOULD BE AT THE COUNCIL MEETING, FUTURE AGENDA ITEMS. THAT IS IN CASE Y'ALL WANNA TAKE ANY ACTION FROM WHAT WAS PRESENTED TONIGHT IN THE WORKSHOP, IT ALLOWS YOU TO BE ABLE TO DO THAT. MY CORRECT. YEAH. I'M DONE. YOU'RE WELCOME. THANK YOU. ALRIGHT, THREE ONE DISCUSSION. SHORT TERM RENTAL MANAGEMENT. THANK YOU, MAYOR COUNSEL, UH, NICK ANGEL MANAGEMENT FELLOW FOR THE RECORD. UM, SO TO GIVE Y'ALL SOME BACKGROUND ON THIS PRESENTATION, UM, IN FALL OF 2025, STAFF WAS ASKED FROM MY COUNSEL ABOUT OUR COLLECTION OF HOTEL OCCUPANCY TAX, UM, AND HOW THE COLLECTION OF HOT TAX COULD BE STANDARDIZED IN THE CITY. UM, AND TO KINDA JUST GIVE A RUNDOWN ON SHORT-TERM RENTALS, THAT IS ANY, UH, PRIVATE HOME HOTEL, CONDO, ANY RENTAL PROPERTY THAT'S RENTED FOR A PERIOD OF LESS THAN 30 DAYS. AND THOSE PROPERTIES ARE ALL REQUIRED TO REMIT HOT TAXES, WHICH IN HU IT'S 7%. UM, AND AS MOST OF YOU PROBABLY KNOW, THERE ARE TWO HOTELS IN HU THE THIRD OF THE TOWN PLACE SUITES. IT'S SET TO OPEN THIS YEAR. IT'S FACED SOME DELAYS. UM, AND THEN IN ADDITION TO THOSE HOTELS THAT HAVE BEEN PAYING HOT TAX, UM, THERE BUSINESS ARE ALSO ESTIMATED TO BE ABOUT 70 SHORT-TERM RENTALS ON SITES LIKE AIRBNB, VRBO. UM, AND THAT'S JUST BASED ON A PRELIMINARY DATA REVIEW THAT WE DID. UM, BUT IN FY 25, ONLY TWO OF THOSE SHORT-TERM RENTALS REMITTED HOT FUNDS TO THE CITY, UM, OUT OF THOSE ESTIMATED 70 PROPERTIES. UM, ALSO WE DID A, WE DID A CALCULATION THAT OVER THE PAST THREE YEARS, THE AVERAGE HOT REMITTED PER SHORT-TERM RENTAL PROPERTY WAS ABOUT $1,800 PER YEAR. THAT'S JUST A ROUGH CALCULATION THOUGH, BECAUSE THAT VARIES WIDELY. UM, SO WE LOOKED AT WHAT OTHER CITIES WERE DOING TO TRACK THIS. UM, AND ORDINANCES WERE LOOKED AT FOR, DO, DO WE NEED TO PAUSE THE PRESENTATION? NO. OKAY. EVERYBODY'S OKAY. [00:05:01] OKAY. UM, SO WE, WE LOOKED AT WHAT OTHER CITIES WERE DOING TO, TO TRACK THE SHORT TERM RENTAL PROPERTIES SINCE OUR REMITTANCE IS SO LOW AMONG THE PROPERTIES THAT WE ARE ESTIMATED TO HAVE IN THE CITY. UM, SO ORDINANCES WERE LOOKED AT FOR GEORGETOWN, FREDERICKSBURG, FRISCO, LOCKHART, PFLUGERVILLE, BROWN ROCK, AND SAN MARCO. UM, ALL OF THOSE CITIES HAVE ORDINANCES LIKE THIS. UM, AND THE ORDINANCES, THEY BASICALLY REQUIRE SHORT-TERM RENTAL PROPERTIES, OPERATING AND ADVERTISING ON THOSE SITES LIKE AIRBNB, ET CETERA. UM, PROPERTIES THAT ARE OPERATING AS A SHORT-TERM RENTAL, UH, TO REGISTER WITH THE CITY TO APPLY FOR A PERMIT. UM, AND WHAT ALL OF THESE ORDINANCES DID INCLUDE WERE GUIDELINES FOR HOW TO APPLY FOR THOSE PERMITS, HOW TO RENEW THEM, UH, ANY ASSOCIATED FEE INFORMATION. UM, ALSO HOW TO ENFORCE THE ORDINANCE, UH, YOU KNOW, WITH FINES AND REVOCATION OF THE PERMITS. BUT WHAT KIND OF VARIED AMONGST THOSE ORDINANCES WERE MAXIMUM OCCUPANCY AND MINIMUM PARKING GUIDELINES. SOME HAD THOSE, SOME DIDN'T. UM, NEIGHBOR NOTIFICATION REQUIREMENTS. SO IF YOU'RE GOING TO START OPERATING AS A SHORT TERM RENTAL, UM, NOTIFYING NEIGHBORS WITHIN A CERTAIN DISTANCE OF THE PROPERTY, UM, PROCESSES FOR APPEALING IF YOU WERE DENIED THE PERMITS OR IF IT WAS REVOKED, UH, FOR GOING AGAINST WHAT THE ORDINANCE REQUIRED. UM, SIGNAGE AND INFORMATIONAL BROCHURES. SO THAT'S BASICALLY JUST WITHIN THE PROPERTY, HAVING SIGNAGE OF YOUR PERMIT NUMBER AND OTHER INFORMATION FOR THE PEOPLE THAT ARE STAYING THERE. AND THEN INSPECTION REQUIREMENTS FOR PRIOR TO RECEIVING A PERMIT OR PRIOR TO, UH, RENEWAL OF YOUR PERMIT. UM, THESE INSPECTION REQUIREMENTS, UM, WOULD, COULD BE BA BASICALLY PRIOR TO OUR CHIEF BUILDING OFFICIAL LEAVING, HE SAID THAT, UH, HE WOULD RECOMMEND THESE, BUT THAT'S SOMETHING THAT SOME OF THESE ORDINANCES, UH, INCLUDED AND SOME OF 'EM DID. AND IN THESE OTHER CITIES, WE REACHED OUT TO ALL OF 'EM TO ASK ABOUT WHAT PROBLEMS THEY FACED, UM, IN IMPLEMENTING THESE ORDINANCES AFTER THEY WERE ADOPTED. AND SOFTWARE IS USED IN A LOT OF THE CITIES, UH, PRIMARILY TO DO ADDRESS IDENTIFICATION. AND THAT'S INCLUDED IN ANY BASE MODULE FOR A SOFTWARE LIKE THIS. THAT THE SOFTWARE WOULD AUTOMATICALLY GO INTO ALL OF THE VARIOUS SITES, UM, WHERE THE SHORT-TERM RENTAL PROPERTIES ARE ADVERTISED. AND THE SOFTWARE WOULD SEE HOW MANY PROPERTIES ARE OPERATING IN THE CITY AT ANY GIVEN TIME. UM, THERE ARE OTHER MODULES OFFERED FOR THESE KINDS OF SOFTWARES SUCH AS PERMITTING SOFTWARES, UM, TAX COLLECTION, OTHER THINGS FOR CONSTITUENTS TO, TO USE. UM, FOUR OF THE SEVEN CITIES THAT WE LOOKED AT ARE USING THE ADDRESS IDENTIFICATION KIND OF SOFTWARES. UM, AND TWO OF THE THREE THAT ARE NOT USING IT CURRENTLY SAID THAT THEY PLAN ON DOING SO JUST TO MAKE THE IMPLEMENTATION OF THE ORDINANCE AND MAKING SURE THAT PROPERTIES ARE IN COMPLIANCE ARE JUST TO MAKE IT A LOT EASIER FOR STAFF AND TO, TO MAKE COMPLIANCE GREATER. UM, 'CAUSE WITHOUT A SOFTWARE LIKE THIS, YOU HAVE TO HAVE STAFF REGULARLY CHECKING ALL OF THESE SITES, UM, DOING THEIR BEST TO SEE WHO IS ADVERTISING ON THE SITE, WHO'S OPERATING, UM, THAT HAS NOT REGISTERED WITH THE CITY. UM, AND THEN FIVE OF THE SEVEN CITIES THEY USE SOFTWARES LIKE THIS FOR ACTUALLY COLLECTING THE HOT AND KEEPING TRACK OF IT. SO, IN SUMMARY, UM, THERE IS A LACK OF REMITTANCE AMONG OUR PROPERTIES. 'CAUSE WE HAVE ESTIMATED THERE TO BE AROUND 70, BUT ONLY TWO PROPERTIES ACTUALLY REMITTED CONTACTS IN FY 25. AND A LOT OF WHAT THESE CITIES ARE DOING ARE ALL OF THE CITIES THAT, THAT WE LOOKED AT. THEY REQUIRE, UH, SHORT TERM RENTAL OPERATORS TO [00:10:01] APPLY FOR A PERMIT, WHICH WE CURRENTLY DO NOT DO. SO THESE ARE SOME THINGS FOR COUNSEL TO CONSIDER FIRST. UM, YOU KNOW, DO, DO WE WANT THE, DO WE WANT SHORT TERM RENTAL PROPERTY OPERATORS TO BE REQUIRED TO REGISTER TO OPERATE IN THE CITY? UM, ALSO, DO WE WANT THAT TO EXTEND TO OUR ETJ? BECAUSE OUR CURRENT, UM, OUR CURRENT HOTEL OCCUPANCY TECHS ORDINANCE, IT DOES SAY THAT PROPERTIES OPERATING IN THE ETJ ARE REQUIRED TO REMIT O SO THE QUESTION WOULD BE WHETHER YOU WOULD WANT, UM, THE PROPERTIES OPERATING IN THE ETJ TO BE REQUIRED TO REGISTER AS WELL. UM, AND THEN SOME MISCELLANEOUS [3.2. Discussion and possible action related to Work Session topics] ITEMS. BASICALLY THE SOFTWARE COMPANIES HAVE RECORD OF THE BOOKINGS ON THESE SITES AS FAR BACK AS 2019. SO WOULD WE WANT TO TRY TO GET THE OPERATORS TO PAY THOSE TAXES THAT THEY HAVEN'T BEEN PAYING, UM, FOR THE LAST SEVERAL YEARS. UM, AND THEN, AS I MENTIONED, INSPECTION REQUIREMENTS, MAXIMUM OCCUPANCY PARKING REQUIREMENTS, NEIGHBOR NOTIFICATION, SIGNAGE, BROCHURE, UM, WHAT KIND OF FINES OR, YOU KNOW, WHAT WOULD CONSTITUTE GROUNDS FOR REVOCATION OF THE PERMIT AND THEN WHAT THE APPEAL PROCESS SHOULD LOOK LIKE. ALL THOSE ARE THINGS THAT, UM, YOU SHOULD BE CONSIDERING IF YOU WANT TO HAVE AN ORDINANCE LIKE THIS, WHAT THE ORDINANCE WOULD INCLUDE. THANK YOU. I LIKE IT. SORRY FOR THE INTERRUPTION. BOTH. THANKS, NICK. THE ONLY THING I'D SAY IS I, I DON'T KNOW THE COUNCIL. I'M GONNA SAY THIS. NORMALLY I DON'T HAVE TO SAY I ON THINGS, BUT IN CASE THIS BECOMES A BIG DEAL. 'CAUSE IN SOME CITIES THIS HAS BEEN A, A BIG, SOMETIMES PROPER RIGHTS. I DON'T THINK THE COUNCIL ACTUALLY GAVE ME DIRECTION. IT WAS, I HAD REACHED OUT AFTER READING SOME THINGS THAT AUSTIN DID. I REACHED OUT TO DOTTIE AND ASKED, UM, WHAT CAN WE DO AS A CITY? SO THAT WAY LAST TIME I THINK WE GOT CLOSE TO HITTING THIS ABOUT THE TIME WE TALKED ABOUT FOOD TRUCKS. IT WAS, IT WAS, I WAS GETTING SOME HATE. UM, SO I JUST WANNA MAKE SURE THAT IF IT'S GONNA BE HATE AND ORDER TO STEER IT TO, BUT, UH, WHAT I SAY, WELL, I THINK, YOU KNOW, I LIKE BEST PRACTICES. YOU KNOW, MY BACKGROUND IS, IT'S NOT LIKE IF IT DOESN'T WORK, DON'T F DON'T, DON'T FIX IT. BUT NOT THAT RIGID. IT'S JUST OTHER CITIES ARE DOING THIS AS, AS YOU POINTED OUT AND OTHER THINGS. I THINK THAT'S SOME OF THE BEST REFERENCES. IF IT'S WORKING, THEN JUST GO WITH THAT. I ALWAYS LIKE TO TAKE WHAT YOU WANT AND LEAVE THE REST, YOU KNOW, TWEAK IT TO WHATEVER. UM, I'M NOT FAMILIAR WITH ANY OF THE OTHER CITIES HOW THEY OPERATE, BUT I MEAN, IF WE'VE GOT A CONSENSUS OF SEVERAL CENTRAL TEXAS CITIES AND AUSTIN, I'M NOT SAYING WE SHOULD FOLLOW AUSTIN AT ALL, BUT THEY HAVE A HUGE, YOU KNOW, B AND B ISSUE. I USED TO HAVE PROPERTY OVER THERE AND IT WAS GOT SIDEWAYS REALLY QUICK ABOUT 10 YEARS OF WHO COULD DO WHAT, WHO COULD DO WHAT. SO I THINK BEING CLEAR ABOUT WHAT WE WANT AND WHEREVER THAT DIRECTION COMES FROM, WHETHER IT'S COUNCIL OR WORK SESSION TO GO TO COUNSEL ARE DEFINITELY WHAT, YOU KNOW, LEGAL HAS TO SAY. UH, I I, I SUPPORT THE, THE TEAM, THE GOOD TEAM THAT WE HAVE RIGHT NOW. UM, THE ONLY THING THAT POPPED ON MY MIND IS THIS KIND OF, THIS KNOW, AS FAR AS FINE REVOCATION, DUH. THAT APPEALS PROCESS, WHATEVER'S, AGAIN, WHAT'S WORKING RIGHT NOW. I'M, I'M A LITTLE HESI HESITANT TO GO AFTER, NOW MAYBE THEY DIDN'T END THE MINUTIA RIGHT HERE, BUT RETROACTIVE PAYMENTS. I MEAN, TO ME, I THINK IF PEOPLE COME FORWARD AND SAY, THIS IS WHAT WE ARE, THIS IS WHAT WE'RE DOING AND THIS IS WHAT WE'RE GOING FORWARD AND THEY'RE OPEN AND HONEST ABOUT THAT, I DON'T REALLY THINK THAT ANY TYPE OF PUNITIVE OR RETROACTIVE PAYMENTS IS AT THIS POINT KNOWING SO LITTLE ABOUT IT. I'M NOT REALLY KEEN ON THAT. THAT'S IT. BUT THANKS FOR THE PRESENTATION. SO AM I, AM I BASICALLY HEARING YOU SAY THAT IF WE, IF WE DO AN INITIATIVE AND IF WE SAY, HEY, YOU NEED TO COME IN AND VOLUNTARILY REGISTER. IF YOU VOLUNTARILY REGISTER, WE'RE JUST GONNA START COLLECTING FROM HERE FORWARD, BUT THEN WE'RE GONNA COME BACK AND DO A SCRUB OR A SCRAPE OR WHATEVER IT WAS CALLED. AND IF YOU COME UP AND YOU DIDN'T VOLUNTARILY REGISTER, WE'RE GOING BACK AS FAR AS WE CAN TO GET YOUR TAXES. I WOULD ALMOST, I DON'T KNOW, I DON'T KNOW ABOUT THE LAST SENTENCE, BUT I'M IN THE MIDDLE ON THAT. BUT I THINK IT WAS ON VRBO AND THOSE GROUPS, IT'S ON, I WOULD SAY IT'S ON THEM TO MAKE SURE TAXES ARE BEING COLLECTED. MM-HMM . IT'S THEIR PLATFORM. THEY TOOK THE PROPERTY. IF THEY WEREN'T OUT THERE DOING THE DUE DILIGENCE, LIKE, HEY, WHAT CITY WE [00:15:01] NEED TO HAVE THE CODE, I WOULD ALMOST LIKE US TO SEE TO WHERE WE DO THE SCRUB MM-HMM . AND WE SEND A DEMAND LETTER TO THE DIFFERENT ENTITIES GOING, LOOK, YOU OWE US SOME MONEY BECAUSE YOUR JOB WAS TO DO ALL THIS, YOU HAD TO PLATFORM. I MEAN, IF EBAY'S NOT COLLECTED SALES TAX AND YOU'RE SUPPOSED TO, EBAY'S WANTS TO GET IN TROUBLE. AND SO I DON'T KNOW WHAT THE PROCESS IS AND SO I, I DON'T, BUT I, I, 'CAUSE I KNOW SOME PEOPLE DON'T KNOW BECAUSE THEN I ALSO KNOW THERE'S A GROUP OF PEOPLE WHO, AND THEY DON'T EVEN PAY ATTENTION AND IT'S NOT THAT BIG A DEAL. AND I THINK THE TECH COMPANIES, 'CAUSE THAT'S WHERE I REMEMBER, IF I REMEMBER RIGHT, THAT'S WHAT KIND OF HAPPENED IN AUSTIN IS THEY STARTED GOING AFTER THE TECH COMPANIES BECAUSE THE TECH COMPANIES CIRCUMVENTING THEIR ORDINANCES AND THEN, UH, UM, THE LAST DEMAND LETTER COST US AT THIS POINT. RIGHT. BUT I DON'T THINK IT WOULD BE A DEAL LIKE THAT. BUT I THINK IT WOULD BE APPROPRIATE TO SEND IT. AND THEN THEY CAN ALWAYS SAY, HEY LOOK, UH, YOU KNOW, HOW, HOW DO WE FIX THIS? OR I'D SAY EVEN WITH THE HOMEOWNER, IT'S LIKE, IF YOU'VE BEEN RENTING IT OUT SINCE 2019 AND WE'VE GOT YOU DOWN FOR, YOU OWES ABOUT, YOU KNOW, $84,000 IN TAXES, I THINK THAT IT'S LIKE, HEY, LET'S TALK. LET'S COME IN AND TALK ABOUT IT AND GO WHAT? 'CAUSE IF YOU OWE US A LOT OF MONEY, YOU MUST HAVE A REALLY SUCCESSFUL, AND THESE GUYS ARE MAKING A LOT OF MONEY OFF SAMSUNG AND ALL THIS CONSTRUCTION. YEAH. FRANKLY, I DON'T THINK THAT WE WOULD HAVE A WAY OF KNOWING HOW MUCH THEY OWED US BECAUSE THERE'S NO RECORD THAT WE WOULD HAVE ACCESS TO OF HOW MANY NIGHTS THEY DID RENT IT. IT'S ALL, IT'S ALL ON YEAH. WEBSITE. THEY DON'T WANNA SHARE IT. OH YEAH. SO I HAD A A, A SHORT-TERM RENTAL IN ROUND ROCK AND ROUND ROCK DOES NOT MAKE YOU GET PERMIT. AT LEAST WHEN I WAS DOING IT. THEY DIDN'T MAKE YOU DO IT. UM, SO I I I THINK WE SHOULD COLLECT IT FROM, FROM, AND I WAS FINE. I WAS FINE DOING IT. I THINK PART OF THAT WILL PARTLY YOU'LL, WHEN YOU PERMIT THEM, THEY DIDN'T HAVE TO START FOLLOWING RULES. YOU DON'T FOLLOW RULES. THEY'RE GONNA DO WHAT THEY WANNA DO. 'CAUSE THE ONLY THING THEY CARE ABOUT IS MAKING MONEY AND THEY'LL DO WHATEVER THEY CAN TO MAKE THAT, THAT PROPERTY PROFITABLE. SO HAVING A PERMIT TO OPERATE ONE, FOLLOW SOME GUIDELINES TO MAKE SURE THAT IT'S SAFE DOESN'T, YOU KNOW, TRACK FROM THE COMMUNITY AND STUFF LIKE THAT. I THINK IT'S, I THINK IT'S A GREAT IDEA. UM, I I'M ALSO WITH YOU. I DON'T THINK GOING BACK TO COLLECT RETRO IS, IS A GOOD THING. IF, IF IN GOOD FAITH THEY COME IN, COME FORWARD, IF IT STARTS PERMITTING PROCESS AND THEY VOLUNTARY COME IN AND, AND DO ALL THE PING THEY DO. I, I THINK THAT'S GOOD ENOUGH. ARE YOU OKAY CONTACTING INTERNET COMPANIES ABOUT IT? SO THE INTERNET COMPANIES VRVO, AIRBNB, THEY DON'T, THEY DON'T COLLECT, THEY ONLY COLLECT STATE LEVEL. THEY ONLY COLLECT THE STATE LEVEL. UH, UH, HOT THAT THE CITIES. SO THE CITIES AND, AND THEY SPECIFY IN THEIR SIGNUP PROCESS, YOU ARE RESPONSIBLE, YOU KNOW, ADJUST YOUR PRICES TO MAKE SURE YOU, YOU, YOU COVER THAT FEE AND THEN YOU CAN FIND INFORMATION. UM, I WAS USING A SOFTWARE CALLED PRICE LABS AND IN THERE YOU CAN TELL THAT WHAT CITY YOU'RE IN, HOW MUCH IT IS, AND THEY'LL TACK IT ON THERE. BUT ISN'T THEM DOING THAT? KINDA LIKE THE, THE WALK TRUCK THAT PUTS ON THE BACK OF THE TRUCK NOT RESPONSIBLE FOR BUSTED WINDSHIELD. IT'S BEEN IN REALITY THEY ARE, BUT THEY SAY THEY'RE NOT THAT WAY. WHEN STUFF FALLS OUT AND BUSTS OUT YOUR WINDSHIELD, YOU'RE LIKE, OH, IT'S MY FAULT. I, IT, IT DOESN'T HURT TO ASK. I MEAN, LIKE I WAS, I SHOULD HAVE HAD A NOTE. I NOTICED THAT AUSTIN WAS ENLIST. THERE WAS ONE OF THE CITIES LOCALLY THAT YOU HAD ON THE LIST. YOU HAD ROUND ROCK, MARCUS, BUT NOT AUSTIN. I THOUGHT THAT WAS INTERESTING. MOST LIKELY ONE OF THEM, LAKEWAY AND AUSTIN WERE NOT ONES THAT I LOOKED AT. YEAH, OKAY. LAKEWAY MADE ONE. LOOK AT THAT. SO I SAT THROUGH, I WAS A VERY CONTENTIOUS, SO THEY HAVE A LOT OF PROPERTY THAT PEOPLE TOOK LIKE FIVE BEDROOM HOMES AND TURNED 'EM INTO EIGHT BEDROOM HOMES. YEAH. AND BUILT AN OVERSIZED POOL. YEAH. AND IT GOT OUTTA HAND TO THE POINT TO WHERE THE PUBLIC WAS DEMANDING. AND SO THEY STARTED, UM, GOING BACK ON MEMORY A FEW YEARS AGO, THEY STARTED BASICALLY A PERMIT. AND SO SOMEONE KEPT CALLING PARTIES AND THEY REVOKED THE PERMIT AND THEY SAID, LOOK, YOU'RE, 'CAUSE THESE, HERE'S HOW, LOOK AT THIS. THESE PEOPLE ARE DOING THIS IN A NEIGHBORHOOD. AND I'M A BIG PROPONENT OF PEOPLE WHO BUY A HOUSE. IT'S ONE OF THEIR MAJOR MOST BIGGEST INVESTMENTS. YEAH. AND THEY'RE EXPECTING NEIGHBORS BESIDE 'EM. AND IF ALL OF A SUDDEN YOU'VE GOT EIGHT CONSTRUCTION GUYS THAT ARE UP ALL NIGHT, UH, RAISING HELL YEAH. THEN IF PEOPLE WANTED THAT, THEY WOULD'VE GOT AN APARTMENT. AND SO THEY GOT IT REVOKED. WELL THEN IT WAS, YOU COULD ONLY HAVE SO MANY OF THESE, I THINK THEY ACTUALLY CALL 'EM STR, UH, THERE TOO. BUT THEY HAD SO MANY PERMITS COULD BE WITHIN A THOUSAND FEET. AND SO THIS ONE COUPLE HAD INVESTED LIKE ALMOST A MILLION DOLLARS WAS IN THEIR PROPERTY AND THEY GOT IT REVOKED AND THEY WERE GOING BACK TO THE COUNCIL TRYING TO GET IT TO REINSTITUTED. AND THE COUNCIL WAS DEMANDING, WHAT ARE YOU GONNA DO DIFFERENTLY? HOW ARE YOU GONNA SCREEN YOUR TENANTS BECAUSE YOU'RE CREATING A, YOU KNOW, THE POLICE ARE [00:20:01] GOING OUT THERE. SO I LITERALLY HAD A CONVERSATION ABOUT ST YESTERDAY AT CHURCH. UM, AND AUSTIN HAS CHANGED A LOT OF WHAT THEY'RE DOING. UH, ONE OF THE THINGS I HEARD YESTERDAY WAS AUSTIN NOW HAS WORKED WITH AIRBNB AND VRBO AND THEY'RE, AND THEY'RE BASICALLY MAKING THOSE TWO COMPANIES COLLECT THE PERMIT DOCUMENT BEFORE THEY CAN BE LIVE ON THEIR SITE. SO THEY'RE BASICALLY MAKING EACH PROPERTY OWNER GET A PERMIT. RIGHT. THAT'S BECAUSE THEY'RE FORCING THAT. THAT'S A, THAT'S WHERE I GOT THAT ARTICLE THAT MADE ME THINK IF THOSE COMPANIES ARE COMBINED, THEN THAT MADE ME THINK THEY HAVE TO COMPLY THAT BEFORE THEY'VE BEEN SAYING IT'S NOT A RESPONSIBILITY. WELL, I THINK IT'S NOT NECESSARILY COMPLY. I THINK IT'S MORE OF A GOOD FAITH THING. LIKE WE DON'T COLLECT IT. BUT YOU KNOW WHAT, WE'LL DO EVERYTHING WE CAN TO HELP YOU COLLECT IT BY MAKING THEM PERMIT, YOU KNOW, PROVIDE A PERMIT THAT THEY HAVE TO GO THROUGH THE CITY THAT THEY GET TO SAY, OKAY, YOU'VE GOT A PERMIT. WE CAN NOW, COULD THEY UPLOAD ANY DOCUMENT UP THERE AND IT WILL TO TAKE IT? I DON'T, I DON'T KNOW, I DON'T KNOW HOW SOPHISTICATED THE SYSTEM IS, BUT MAKING THEM GET A PERMIT, I THINK THAT'S A GREAT STEP TO DO THAT. YOU CAN'T, YOU CANNOT OWN MORE, YOU CANNOT OWN THE SAME PROPERTY WITHIN A CERTAIN AMOUNT OF FEET. BECAUSE ONE THING THEY'RE TRYING TO PREVENT IS A LARGE COMPANY COME IN THERE WHO'S, WHO'S GOT DEEP POCKETS BUY A BUNCH OF HOMES AND TURN 'EM ALL ONTO AIRBNBS. THEY'RE TRYING TO PREVENT THAT BY SAYING YOU COULD OWN, BECAUSE THEY USED SHOULD NOT LET YOU, YOU HAVE TO BE LIVING IN THE, THE BUILDING IN ORDER TO USE AIRBNB AND AUSTIN. AND NOW THEY CHANGED THAT. SO THEY SAY, OKAY, YOU DON'T HAVE TO LIVE IN IT, BUT YOU CAN'T HAVE MORE THAN ONE WITHIN A CERTAIN, UH, DISTANCE APART. SO NOW YOU CAN OWN, YOU CAN HAVE ONE NORTH HU AND SOUTH HU ON YOUR FLIGHT. SO YOU CAN HAVE MORE TOGETHER. YOU JUST THE SAME ENTITY OR RELATED ENTITY CAN'T YEAH, BECAUSE WE HAVE A NEIGHBORHOOD. YEAH. SO I, I CAN'T BUY MY NEIGHBOR'S HOUSE AND TURN 'EM BOTH INTO AIRBNBS. RIGHT. I MIGHT BE ABLE TO BUY ONE DOWN THE, DOWN THE STREET A LITTLE A BIT, TURN THAT ONE INTO AIRBNB. BUT I CAN'T, I CAN'T LIKE GET A WHOLE BLOCK AND TURN ALL 'EM INTO AIRBNBS IN AUSTIN. AND I AGREE WITH THAT TOO. REVENUE GENERATOR. I THINK THIS IS A PROTECTION OF NEIGHBORHOODS. IT'S, I THINK IT'S, I THINK IT BIT OF BOTH. AND TO ME THE REVENUE IS WHAT HELPS OFFSET THE COST OF PROTECTIVE NEIGHBORHOODS. YEAH. LIKE WE HAVE THE ONE UP BY THE NINTH GRADE CENTER. I, I'D SAY IN AIRBNB, NO, BUT I'D SAY HALF THE NEIGHBORHOOD IS RENTAL. MM-HMM . AND OWNED BY YEAH. SEVERAL ENTITIES. AND SO I'M LIKE, IT'S SUCH A TRANSIENT SYSTEM TO, I MEAN IT'S JUST TREAT IT DIFFERENTLY. SO I, I DON'T, I THINK AIRBNBS ARE BAD IF YOU DON'T CONTROL THEM. YOU KNOW, ONE OF THE THINGS WE DID WITH AIRBNB, WE, AND I THINK IT'S PART OF AUSTIN NOW, IS LIKE, YOU CAN'T HAVE PARTIES. IT'S IN OUR CONTRACT. YOU CAN'T HAVE A PARTY IN THERE. RIGHT. SO WE, WE WANT TO MAKE SURE THAT THEY'RE RESPECTING OUR NEIGHBORS. ALL OF OUR NEIGHBORS KNEW WE HAD AN AIRBNB. SO ALL THOSE THINGS THAT I MENTIONED, I THINK, I THINK THOSE ARE ALL GOOD STEPS. BUT THE PERMITTING PART I THINK IS SUPER IMPORTANT. 'CAUSE YOU WANNA MAKE SURE THAT IF THEY'RE OPERATING, THEY'RE OPERATING WITH THEIR NEIGHBORS IN MIND, COMMUNITY IN MIND, SAFETY AND MIND, ALL THOSE KIND OF THINGS. AND SO, BUT I'M ALL FOR COLLECTING IT AND FIGURING OUT HOW TO, HOW TO COLLECT IT BECAUSE I THINK EVERYONE WINS IN THAT WAY. THE ONLY THING I WOULDN'T DO IS I WOULDN'T HAVE INSPECTIONS. AND THE REASON I SAY THAT IS, SO I GO ON RENTAL PROPERTY AND, AND THERE'S CODES FOR RENTAL PROPERTY AND PEOPLE HAVE A PROBLEM. THERE'S AN AVENUE WITH THE STATE THEY GO TO. SO REALLY, WHATEVER, WHATEVER THE PROCESS IS, UH, PEOPLE HAVE A RIGHT TO GO. AND WE ALSO HAVE A REVOCATION ISSUE TO WHERE IF THERE IS A CODES ISSUE, SOMEONE COULD CONTACT US AND JAMES COULD CORRECT ME, BUT THEY COULD CONTACT US. WE COULD GO FOLLOW A COMPLAINT AND GO, THIS IS OUTSIDE OF CODE, AND THEN GIVE THEM NOTICE THAT WE'RE GONNA REVOKE YOUR PERMIT. IF IT YEAH. IF IT'S AN OUTSIDE THING, IT'S AN INSIDE THING. LIKE, YEAH. I DON'T KNOW WHAT THE INSPECTION WOULD BE. YOU KNOW, UH, WHEN WE BUILT OURS, WE MADE SURE THAT WE HAD A, THE ONLY INSPECTION I REMEMBER WAS MAKING SURE WE HAD A FIRE, A FIRE SMOKE DETECTOR IN EVERY ROOM. YOU KNOW, I THINK JUST COMMON SENSE STUFF, RIGHT. THAT YOU WOULD DO IF YOU WERE RENTING YOUR HOUSE OUT OR AN APARTMENT, HAVING A FIRE EXTINGUISHER AVAILABLE, THOSE KIND OF THINGS. BUT YOU'RE RIGHT. I DON'T THINK HAVING STAFF GO OUT AND INSPECTING EVERY PROPERTY DOESN'T MAKE SENSE TO ME EITHER. AND THEN THE, THE OCCUPANCY AND PARKING THING, THAT'S AN INTERESTING ONE TOO. UM, OUR, OUR ROUND ROCK HOUSE SLEPT 14 PEOPLE. AND SO WE NEVER HAD A LOT OF CARS OUT THERE THAT WE HAD FOUR CARS IN THAT DRIVEWAY. AND MAYBE TWO IN FRONT OF THAT WAS THE MAX WE HAD AT, AT ANY ONE TIME. 'CAUSE YOU'RE RIGHT, USUALLY WITH OUR HOUSE, IT WAS MOSTLY, UM, CONTRACTORS COMING IN, WORKING AT SAMSUNG. UM, WE HAD ONE, UH, BACHELOR. BACHELOR, BACHELOR PARTY. UM, BUT WITH OUR LOCATION TO GEORGETOWN, UM, I'M SURPRISED, I DON'T KNOW IF YOU GET A LOT OF BUSINESS BY THAT, BUT YOU HAVE, UM, THE TWO STEP IN THAT BRINGS, BRINGS A LOT OF PEOPLE HERE. MM-HMM. AND ONE OF THE THINGS THAT WE DID WITH OURS IS BECAUSE, YOU KNOW, WHEN YOU GO GET A HOTEL, YOU HAVE MAX OCCUPANCY OF FOUR PEOPLE. YOU HAVE A LARGE FAMILY, YOU GET TWO [00:25:01] OR THREE ROOMS AND THEN, UH, UH, UH, AN AIRBNB THAT'S BUILT PROPERLY, THE WHOLE FAMILY CAN BE THERE ALTOGETHER. SO, SO THERE'S A LOT OF BENEFITS TO A, TO A SHORT-TERM RENTAL. UM, BUT BEYOND SHORT-TERM RENTAL, WE ALSO THINK ABOUT, UM, A LOT OF, THERE ARE A LOT OF INVESTORS NOW TAKING A HOUSE, A FOUR, A FOUR BEDROOM HOUSE AND TURNING INTO SIX BEDROOMS, SEVEN BEDROOMS, AND THEY RAN ON EACH ROOM AND THEN THEY GET KILLING THAT WAY. THAT'S THE OTHER THING WE HAVE TO THINK ABOUT. THAT'S, I IF THIS INCLUDES THIS OR NOT, BUT IF IT DOESN'T, IT NEEDS TO INCLUDE, UM, I DON'T WHAT IT'S CALLED. THAT'S WHY YOU STARTED GETTING HATE BEFORE WHEN I BROUGHT THAT UP AND I SAID, HEY, PEOPLE ARE BUYING HOMES AND TURN 'EM INTO MULTIFAMILY. ABSOLUTELY. BECAUSE YOU GO TO, UM, R-O-O-M-I-E-S ROOMIES.COM AND YOU CAN GO RENT MA THE MASTER BEDROOM COMES TO THE BATHROOM THAT'S 1500 A MONTH. THIS JACK AND JILL BEDROOM IS 800 MONTH. AND I WAS LIKE, THIS IS MULTIFAMILY LIVING. THIS ISN'T, TO ME, THIS IS NOT RESIDENTIAL. THIS IS NOT ZONED APPROPRIATELY. AND THEN PEOPLE START TELLING ME, I'M GETTING INTO PROPERTY RIGHTS. AND I'M LIKE, NO. THE, THE PERSON WHO LIVES THERE NEXT DOOR TRYING TO RAISE A FAMILY, THEY DON'T WANT FOUR FAMILIES LIVING IN A HOUSE NEXT DOOR. IN MY MIND, THE ROADS WEREN'T PREPARED FOR THAT. SCHOOLS AREN'T PREPARED. NOTHING THAT WE HAVE IS PREPARED FOR. YEAH. UM, THAT TYPE OF STUFF. I LOVE REAL ESTATE. I, I, I THINK THEY'RE, THEY'RE ALL GREAT IDEAS. WE JUST GOTTA JUST BE CAREFUL BECAUSE THEN YOU HAVE THINK AT WHEN THOSE, WHAT THOSE HOUSES CALLED, LIKE A HALFWAY HOME OR GROUP HOME YEAH. GROUP HOMES. RIGHT. SO, SO NOW HOW DOES THAT FALL INTO THIS, UH, YOU KNOW, WITH, WITH THOSE RULES AS WELL. BUT YEAH, I THINK GROUP HOMES ARE EXEMPT. OKAY. AND THESE ARE FOR SHORT TERM, YOU KNOW, LESS THAN 30 DAYS. RIGHT. SO THE ONES THAT ARE BREAKING IT UP AND HAVING LONG TERM RENTALS, THEY'RE MORE IN THE REALM OF MULTIFAMILY VIOLATION THAN THEY ARE VIOLATION OF NOT COLLECTING HOTEL AUCTIONS SOMETIMES. OH YEAH. PROPOSED CHANGES TO UDC TAKE INTO GROUP HOME AND DIFFERENT THINGS TO CHANGE THE ZONING TO MAKE IT, UM, ASSUMING IT'S LEGAL FROM PERMITTED TO LIKE, I THINK IT WAS IN THE SUP WE TALKED ABOUT THAT. DID YOU HAVE A HALFWAY HOUSE? JUST GO ANYWHERE? THERE ARE SOME THINGS, AND IT MIGHT BE ONE OF THOSE ONES THAT THE STATE HAS MADE BASICALLY PASS LAWS THAT SAYS THE CITY CAN'T EXEMPT FROM, LIKE FOR EXAMPLE, IF A SCHOOL WANTS TO GO OR CHURCH WANTS TO GO INTO A RESIDENTIAL ZONED AREA, THEY GET TO GO IF WE CAN'T SAY NO. SO IT MIGHT BE ONE OF THOSE DEALS ALSO WE DIDN'T KNOW. YEAH. IT MIGHT BE ONE OF THOSE DEALS. UM, THIS IS MARYANNE BANKS. I'M SORRY I HAVEN'T LOST YOU. I'M ONE OF THE ATTORNEYS, UM, GROUP HOMES DO HAVE SEPARATE FEDERAL, UM, ALLOWANCES. AND SO THERE ARE CERTAIN THINGS WE CAN'T REGULATE, BUT THE NUISANCES CREATED BY SOME OF THESE HOMES YOU'RE TALKING ABOUT PARKING, PARTYING, YOU KNOW, EXCESSIVE NOISE, UM, EXCESSIVE TRASH, LITTER, WHATEVER, OTHER THINGS LIKE THAT ARE NUISANCES UNDER YOUR CODE THAT YOU CAN REGULATE. YEAH. SO SOMETIMES THERE ARE THINGS THAT WE CAN REGULATE EVEN WITH SOME OF THOSE, BUT FORMERLY THEY WERE CALLED HALFWAY HOUSES, THE GROUP HOMES, SOME OF THEM. UM, BUT, AND SO YOUR ZONING ORDINANCE MAY HAVE LA LANGUAGE LIKE THAT, BUT THINK ABOUT BOARDING HOMES. THAT USED TO BE, UM, BUT AGAIN, BOARDING HOUSES UNDER YOUR CODE ARE GONNA GO ON A CERTAIN LEVEL AND IT'S NOT GONNA BE YOUR SINGLE FAMILY NECESSARILY. SO, SO ANYWAY, THERE ARE WAYS TO ADDRESS IT. USUALLY. YOU KNOW WHAT GONNA SAY AGAIN, DUPLEX OR, NO, THAT'S NOT THE, UM, WHAT'S THE, WHAT'S THE SHARED OWNERSHIP FORMAT? CONDOS. THEY USUALLY CONDO. CONDOMINIUM. YEAH. THEY CAN BE, THEY CAN BE CONDOMINIUM, THEY CAN, YEAH. DIFFERENT, YOU KNOW, REGULATION. BUT AGAIN, YOU HAVE SOME REGULATIONS FOR THOSE THINGS. I CAN'T AGREE WITH WHAT'S BEEN SAID. THE INSPECTION IS A, THAT'S A, THAT'S A, I DON'T KNOW ABOUT THAT. THE OCCUPANCY AND THE PARKING. I HAVE NO IDEA WHAT TO DO, BUT I THINK SOMETHING SHOULD BE A LIMIT ON THAT. AGAIN, I HAD PROPERTY OVER NEAR THE MUELLER DEVELOPMENT IN AUSTIN AND PART OF THE PROBLEM WAS THE MCMANSIONS, WHICH IS WHERE YOU JUST HAVE THESE HEIGHT, MAXIMUM HEIGHT, YOU KNOW, MINIMUM, UM, UH, EASEMENT DIFFERENCE. AND THEN, AND PEOPLE ARE LOOKING AT A, YOU KNOW, A THREE STORY BUILDING, 45 FEET OR 50 FEET AND YOU KNOW, AND THERE IT'S JUST SQUARE, YOU KNOW, IT'S MAXIMUM USE OF THE, THERE'S NO REALLY ARCHITECTURE, NO REAL ELEVATION. AND IT WAS CALLED THE MCMANSION MCMANSION ISSUE. YOU MAY WANNA LOOK AT THAT. THE OTHER THING THAT WAS OF ISSUE IS WHAT, I HAD A PROPERTY THAT I HAD LIVING SPACE IN, BUT I CHAINED OFF FROM THE KITCHEN, BUT ALLOWED UTILITIES AND A, AND A BATHROOM IN THE GARAGE. SO IT WAS STILL LIVING IN AS WELL AS [00:30:01] A BB I'M GETTING A THOUSAND DOLLARS, I'M GETTING A THOUSAND DOLLARS A WEEK WITH BATHROOMS BACK EIGHT YEARS AGO. UM, BUT, AND THE OTHER THING THAT WAS A PROBLEM. WE WANT THAT CODE. WE DON'T WANT THAT. RIGHT. . UH, BUT, UH, YEAH, IT WASN'T PORT APART . BUT THE OTHER THING WAS, IS THAT THEY PICKED AND CHOOSE, I DON'T THINK WE'RE GONNA DO THIS, BUT JUST WANNA SHARE, THEY PICKED AND CHOOSE WHAT NEIGHBORS IT, NEIGHBORHOODS IT WAS IN. SO THAT BECAME A POLITICAL FIGHT WHERE IF IT WAS TECH COMPANIES, MAYBE A HIGHER DOLLAR AREA, YOU KNOW, WITH WIDER STREETS. BUT I LIVE IN, IN HUDDLE PARK, YOU KNOW, WE HAVE SOME OF THESE, I SEE THERE'S, YOU KNOW, 6, 8, 10 CARS THERE. AND, AND I, I THINK THEY'RE PERMANENTLY THERE. I DON'T NECESSARILY, THAT'S A BAD THING. IT DEPENDS ON THE NUMBER OF PEOPLE THERE. BUT AT SOME POINT, YOU KNOW, ON A RESIDENCE THAT HAS A, AN 80 FOOT OR 60 FOOT FRONTAGE, THERE'S JUST SO MANY CARS YOU CAN PUT IN THE DRIVEWAY. LEGALLY, IF YOU HAVE SIDEWALK, YOU CAN ONLY GET TWO CARS IN MY NEIGHBORHOOD. IF YOU PUT A, THE SECOND ROW, YOU'RE VIOLATING THE, THE, THE, UH, SIDEWALK ORDINANCE AND THEN, YOU KNOW, YOU CAN PARALLEL PARK, YOU KNOW, ANYWHERE LEGALLY. I MEAN IT'S, IT'S A PUBLIC STREET, BUT YOU KNOW, WE ALREADY HAVE ISSUES WITH PARKING PROBLEMS IN THAT NEIGHBORHOOD. AND I'M NOT SAYING THAT'S THE ONLY ONE I DO LIVE IN MEADOW PARK, BUT I MEAN, SOME THINGS IN SOME NEIGHBORHOODS BASED ON SIZE OF STREETS, I DON'T WANNA SAY YOU HAVE TO WANNA DO AN AUDIT, HOW MANY CARS ARE IN THERE? BUT YOU GET TO SAY THAT THIS, THIS MAXIMUM SPEED MAY ONLY BEEN EIGHT PEOPLE. YOU KNOW, ESPECIALLY LOOK AT THOSE FLOOR PLANS AND THE HOMES IN THERE. YOU KNOW, IF IT'S AN EXISTING FOUR BEDROOM HOME, THEN OKAY, EIGHT PEOPLE, YOU KNOW, OR WHATEVER, WHATEVER THE NUMBER IS. BUT YOU KNOW, IF IT'S A TWO BEDROOM OR THREE BEDROOM, IT ONLY HAS ONE BATH. I DON'T THINK WE SHOULD PUT 10 OR 12 PEOPLE IN THERE, YOU KNOW. AND THEN THE QUESTION IS, WHO'S LIVING THERE PERMANENTLY AND WHO'S LIVING THERE FOR AN EVENT, YOU KNOW, FOR ONE WEEK OR ONE MONTH OR WHATEVER THAT IS. I'M NOT SAYING I KNOW WHAT, HOW TO DO THAT, BUT I THINK THOSE ARE THINGS THAT WE NEED TO UNDERSTAND AND KIND OF LEARN. WE CAN LEARN ON HOW PEOPLE ARE DOING THINGS RIGHT. WE CAN ALSO LEARN HOW THINGS HAVE BEEN DONE WRONG. YEAH. AND THEN TRY TO KEEP THAT FROM HAPPENING. BUT AGAIN, I LIKE ALL THIS, WHAT'S GONNA LIMIT THE SHORT TERM RUNNER ANYWAY IS EVERY, AS FAR AS I KNOW, ALL NEW DEVELOPMENTS ARE GONNA HAVE HOA YEAH. AND MOST HOAS ARE GONNA ABANDON ANYWAY. SO THIS IS ONLY GONNA WORK IN COMMUNITY THAT DON'T HAVE AN H-O-A-E-T-J, YOU KNOW, THINGS LIKE THAT. NO ONE, VERY FEW INVESTORS ARE GONNA WANT TO BUY A HOME IN A, IN A SUBDIVISION THAT HAS AN HOA AND TRY TO START A, A SHORT TERM RENTAL. IT'S, BUT MOST OF THESE INVESTORS NOW ARE CORPORATE. I'VE GOT, I'VE GOT OUTTA 769 HOMES I THINK IN HU PARK. I'D SAY 40% OF IT WAS CORPORATE OWNERSHIP. BUT, BUT IT'S STILL AN WAY. BUT HERE'S MY ONLY ISSUE WITH HO IS BEING A PRESIDENT, ONCE YOU'D HAVE SOMEONE SAY NOT PAYING THEIR THEIR DUES, YOU ALMOST CAN'T COLLECT THEM. YEAH. AND THAT'S NOT TRUE. AND SO THAT YOU HAVE TO GET TO WHERE YOU'RE GONNA, YOU'RE GONNA TAKE THE HOUSE FROM 'EM. AND SO YES. BUT YOU END UP SPENDING MONTHS AND MONTHS AND MONTHS, YOU'RE SPENDING TENS OF THOUSANDS OF DOLLARS IN LEGAL BILLS. BECAUSE SOMETIMES I DO SOMETHING, WHAT I FIND A LOT OF HOAS, THE PROBLEMS THEY HAVE IS THAT WHEN THEY COME UP WITH ISSUES, IT'S ALMOST LIKE THE BELT SUSPENDERS. YEAH. YOU'VE GOT THEIR CODES. BUT THE CITY HAS A A LOT MORE ENFORCEMENT POWERS. YES. WHEREAS IN H HOA WOULD'VE HAVE TO NEED AND SPEND MONEY, THEY'RE GOING THIS CORPORATION. SO, I MEAN, I WOULD EVEN DO IT FOR THE E TJ AND I AGREE. I AGREE. UM, THE WAY WE'RE GROWING AND EXPANDING, UM, AND THEN ANOTHER REASON I DO THIS IS IF WE DO GET TO A POINT WHERE WE'RE DOING A CONVENTION CENTER, UH, THE CONVENTION CENTER WILL TRIGGER A HIGHER OCCUPANCY TAX THAT WE CAN COLLECT. AND PART OF THE DEBT SERVICE ON THAT BUILDING COULD COME FROM THE INCREASE IN HOT FUNDS. UH, WHICH BY HAVING THAT COULD THEORETICALLY HELP THE PEOPLE WHO HAVE STR. CORRECT, SIR, YOU GUYS SUGGESTING A PERMITT AND NOT HOT, THESE, WHAT YOU'RE SAYING, PERMIT THEM AND NOT COLLECT A HOT TAX. I'M SAYING COLLECT, COLLECT THE TAX PERMIT AND ETJ UNTIL LEGALLY WE CAN'T COLLECT THEM IN THE ETJ. AND THEN HERE I'M NOT AS WORRIED. I'M SAYING YOU'RE SAYING PERMANENT PLUS THE HOT. YEAH. YES. AND I'M NOT AS WORRIED ABOUT THE OCCUPANCY AS MUCH IN THE PARKING. AND I, I DON'T KNOW WHAT THE, IF IT'S LIKE NO MORE THAN TWO CARS CAN PARK ON THE STREET AND THEN IF YOUR DRIVEWAY HOLDS THREE OR FOUR GRADE, IF IT HOLDS TWO. 'CAUSE OTHERWISE I DON'T KNOW. BUT I DON'T WANT IS, THIS IS WHAT I'M THINKING, JIM, IS YOU GET TO A THING WHERE THE CODE IS SO COMPLEX THAT EVEN STAFF'S TRYING TO FIGURE OUT YEAH. BUT YEAH. CONTROL, EVEN IF YOU SAY LIMIT ONE CAR IN THE STREET, THEY'RE GONNA PARK FIVE, THEY'RE GONNA PARK 'EM ALL OVER THE PLACE. WELL, AND FRANKLY WE, HOW ARE WE GONNA KNOW? YEAH, RIGHT. YOU'RE NOT GONNA KNOW. HOW ARE WE GONNA KNOW THOSE CARS BELONG TO THAT HOUSE DR BUT THAT'S WHERE THE PERMIT, THAT'S WHERE THE PERMITT COMES IN. THE SCR OWNER KNOWS THE RULES AND HE'S GONNA SPECIFY THAT, YOU KNOW, OUR, OUR, OUR RULE SAID YOU CANNOT PARK, [00:35:02] I CAN'T REMEMBER, I THINK IT WAS ONE OR TWO IN THE FRONT. THAT'S IT. IF YOU HAVE MORE CARS THAN THAT, THEN YOU GOTTA FIGURE SOMETHING ELSE OUT. I THINK WHAT THE ROYAL DEALS, WE GET A PORTION OF THE USERS TO FOLLOW IT. AND THEN IF THERE IS AN ISSUE, I MEAN, I'M NOT GONNA SAY MOST LAWS, IT MITIGATES IT TO, THERE'S A LOT OF LAWS ON THE BOOKS THAT, YOU KNOW, IT'S A SIDE, I DON'T KNOW IF IT'S HERE, BUT I'VE BEEN IN A CITY WHERE IF THERE'S A SIDEWALK, YOU WALK IN THE STREET AND IT'S BREAKING THE LAW. AND SO YOU MIGHT GET STOPPED. AND SO IF THERE'S A PARKING LIMIT AND THEN YOU DO HAVE AN ISSUE, UM, THERE'S A CHANCE THAT COULD BE A REVOCATION ISSUE. I WOULDN'T DO A PERMIT ONLY BECAUSE WHAT I DON'T WANT IS JAMES WILL COME TO US AND GO, OKAY, YOU GUYS INSTITUTED THIS. I'M GONNA NEED TWO FTES, , WE'VE GOT 87 HOMES AND NOW WE HAVE TO CHECK EVERY CAR. WE HAVE TO CHECK ALL THIS. TO ME, IF WE DO IT RIGHT, WE'LL HAVE THE POWER TO REVOKE ANYBODY'S PERMIT IF THEY BECOME AN ISSUE. AND WE CAN PLAY MORE OF A, A REACT. I THINK THIS, YOU HAVE TO BE REACTIVE, NOT PROACTIVE ON THEIR ASSAULT WORK. I THINK HE SAID THAT YOU MIGHT GET 40% THAT COMPLY. AND I'M NOT ASKING FOR ANYONE TO GO OUT AND INSPECT, BUT IF SOMEONE HAS LIKE A HANDICAP SIGN THEY PUT ON THEIR THING, THAT IT HAS A, AN ADDRESS THAT'S LISTED THERE THAT THEY'RE PART OF, WE DON'T NEED THE, THE FACT THAT THEY'RE DOING THAT, I THINK WE'LL GET THAT COMPLIANCE HIGHER THAN 40%. 'CAUSE THEY WANT TO DO THE RIGHT THING. AND SO MAYBE WE GET IT TO 50 OR 60%. I'M NOT ASKING FOR, YOU KNOW, TO, TO PUT MORE, YOU KNOW, LOAD ON STAFF. WHERE WOULD THEY GET THOSE AT? UM, FROM THE CITY. IT'S JUST A, IT'S JUST LIKE A HANDICAP THING, YOU KNOW? SO, SO WHENEVER WE GET THE PERMIT, WE HAVE A PERMIT AND YOU, AND YOU LIST HOW MANY VEHICLES YOU HAVE THERE. YOU DON'T HAVE TO NECESSARILY PUT THE LICENSE PLATE NUMBER, BUT HOW MANY VEHICLES YOU HAVE THERE, YOU'RE ALLOWED SIX OR WHATEVER THE CODE, WHATEVER WE DOING. AND YOU GIVE 'EM SIX LITTLE HANDICAP THINGS THAT THEY I SEE WHAT YOU'RE SAYING. THAT'S NOT ABOUT IT. IF YOU NEED REPLACEMENTS OR $25 A PIECE. RIGHT. YEAH. I'M NOT ASKING FOR ENFORCING IT. I JUST THINK IF YOU DO THAT, IT'S NOT A HUGE COST WITH THOSE THINGS. I DON'T KNOW FOR SURE. BUT I THINK YOU'LL GET MORE COMPLIANCE IF PEOPLE KNOW THEY NEED TO HAVE A PERMANENT, IT'S JUST, I THINK IT'S NOT PEOPLE ARE BEING DISHONEST. THEY JUST SAID, OH, I HAVE TO HAVE THIS HERE SO I'M GONNA DO THE RIGHT THING. AND I THINK YOU GIVING PEOPLE THE OPPORTUNITY TO DO THE RIGHT THING. MORE PEOPLE DON KNOW WE'LL DO IT. THAT. GOOD POINT. UH, YES. WE SHOULD ACTIVELY COLLECT S STRS. YES. IN THE ETJ AND YES, TO REGISTER, I WOULD GO AHEAD AND LOOK AT THE SOFTWARE TO MANAGE IT. 'CAUSE I DON'T THINK, UH, IT'S, I DON'T, THE SOFTWARE IS GONNA AMAZE ME. IT'S PROBABLY $40,000 A YEAR OR SOMETHING CRAZY. BUT SO WILL THE COST OF EMPLOYEES SCANNING THROUGH ALL THE WEBSITES AND THEN YOU HAVE TO DO IT WEEKLY. 'CAUSE CHARLES HAS ONLY RENT HIS OUT ONCE A ONE WEEKEND OF THE MONTH. AND, UM, AND SO THEN THE SOFTWARE TAKE CARE OF IT. AND DOES ANYBODY CARE ABOUT INSPECTION? SOUNDS LIKE WE DON'T CARE ABOUT THAT. I, I THINK THAT WHAT WE DO IS WE SAY THESE ARE ARE REQUIRE OR NOT, I DUNNO IF REQUIREMENT'S THE RIGHT WORD. THIS IS WHAT YOU WANT YOU TO DO GUIDELINES AND IT'S ON YOU TO DO THAT. YEAH. BUT WE'RE NOT GONNA PUT AN INSPECTION TO MAKE SURE WE'RE NOT GONNA ENFORCE IT. DON'T SAY WE'RE NOT GONNA INSPECT. RIGHT. SAY, SAY YOU CAN BE, YOU CAN'T BE INSPECTED. YOU CAN'T BE INSPECTED. I LIKE THAT. SO WE DON'T HAVE TO DO AGAIN. YES, I'M, UH, I'M NOT PERMITS. UH, THE REASON I SEE IT IS, UH, IS I JUST SEE IT AS ANOTHER TAX AND I DON'T LIKE TAXES. UM, NOW NOT TO CONTRADICT MYSELF, BUT THEY'RE RUNNING A BUSINESS AND BUSINESS HAS CERTAIN TAXES. SO THE HOT, THE HOTEL ANCY TAX IS A TAX THEY TECHNICALLY SHOULD BE PAYING TO RUN THAT BUSINESS. SO I'M OKAY WITH THE HOT, I'M OKAY WITH ETJ. SORRY, WHAT WERE YOU NOT OKAY WITH THE PERMIT? BECAUSE A BUSINESS HAS A PERMIT TOO, RIGHT? UM, TO AN EXTENT, YES. IT HAS A CERTIFICATE OF OCCUPANCY, WHICH DOESN'T REALLY COST . WE DIDN'T SAY COST TIP. ALL THE HOOPS THAT TO JUMP TO. YEAH. WELL I DON'T LIKE THAT EITHER. SO WE SPEND 50, IF WE DID 50 BUCKS FOR THE TO PERMIT IT. NO, THAT'S JUST ANOTHER TAX TO FALL LINE WITH OCC TAX. YOU'RE TAXING PEOPLE. YOU CAN CALL IT A PERMIT. YOU CAN CALL IT FEE AND CALL IT WHATEVER HE WANTS TO TAX. WE'RE COLLECTING MONEY THAT I DON'T THINK WE NEED TO COLLECT. NOW I WILL SAY THIS, SO HOAS, THAT WAS A GOOD POINT. UM, AS I'M SITTING HERE LISTENING AND THINKING, UM, THERE'S ALSO RULES, AND I DON'T KNOW IF IT'S A INSURANCE THING OR WHAT, BUT WHEN YOU HAVE A RENTAL, YOU HAVE TO FOLLOW CERTAIN GUIDELINES. YES. SO YOU HAVE TO HAVE A CERTAIN LOCK ON THE DOOR. UM, THERE'S CERTAIN LIKE CODE YOU HAVE TO FOLLOW. RIGHT? I DON'T KNOW IF FOR A RENTAL, UH, FOR THE RENTAL, ANY RENTAL RENTAL SHORT OR LONG TERM. THERE. THERE ARE, BUT I THINK THAT'S, I THINK THAT'S SPECIFIC ON WHAT YOU'RE GONNA DO. IF IT'S A LONG TERM RENTAL. IF IT'S A SHORT TERM RENTAL, UM, I HAVE TO GET, I AS A, I DON'T KNOW. I'M ASKING YEAH. THE PROPERTY, I HAVE TO GET DIFFERENT INSURANCE RIGHT. BECAUSE I'M NOT LIVING IN THERE. RIGHT. AND IT'S BEING RENTED OUT ON A REGULAR BASIS. SO THERE IS A DIFFERENT RIDER YOU TO PUT ON YOUR INSURANCE TO COVER THAT. RIGHT. UM, BUT WHAT I'M SAYING IS REGULAR RENTAL HAS [00:40:01] TO HAVE A DEADBOLT THAT DOESN'T HAVE THE KEY FROM INSIDE. RIGHT. SO I DON'T, I DON'T SHORT RENTAL HAVE TO HAVE THAT OR NOT. I'M, I'M ASKING. UM, BUT I THINK IF WE HAVE OUR OTHER ORDINANCES IN OUR UDC AND OUR CODE ENFORCEMENT DOING WHAT THEY'RE SUPPOSED TO DO, I MEAN, I, I JUST DON'T LIKE THE PERMIT. I THINK IT'S US GETTING INTO THE, I'M SAYING THIS, IT'S US GETTING INTO THE WEEDS WHEN WE SHOULDN'T. UM, ON THAT, UH, BECAUSE YOU LOOK AT MY HOUSE, I MEAN, I'M GONNA HAVE, I'M GONNA HAVE KIDS DRIVING CARS. THERE'S GONNA BE FOUR OR FIVE CARS IN MY, IN MY HOUSE AT ALL TIMES. AND PRETTY SURE NONE OF 'EM ARE GONNA FIT IN THE GARAGE. UH, SO WE'RE GONNA BE PARKING IN THE STREET, IN THE DRIVEWAY AND EVERYTHING ELSE, FILLING IT UP. NOW WE'RE NOT SHORT-TERM RENTAL AND PEOPLE KNOW THAT. RIGHT. BUT AGAIN, I'M, I'M, I'M ON THE STANCE OF I IF, IF THEY'RE GONNA OPERATE IT AS A BUSINESS, THEN WE SHOULD LOOK INTO THE COORDINATING AND COOPERATING WITH THE, THE RENTAL AGENCY. SO LIKE THE VRBO AND THE AIRBNBS AND THE, AND WHATEVER. UM, BUT I MEAN, I THINK, LISTEN, YOU KNOW, HOW MANY PEOPLE COME KNOCKING ON MY DOOR THAT DON'T HAVE A PERMIT? WE HAVE, WE HAVE PERMITS ALREADY. YEAH. AND SO IF WE'RE NOT GONNA ENFORCE IT, THEN WHY HAVE IT? WE DON'T. WE DON'T, WE DON'T ENFORCE IT. SO EVERYONE THAT COMES TO MY DOOR, I TELL 'EM, HEY, YOU SHOW ME YOUR PERMIT AND I'LL BE WILLING TO LISTEN TO YOUR SPIEL. THEY NEVER COME BACK, WHICH IS GREAT, BUT THAT JUST TELLS ME THEY DON'T HAVE PERMIT. I AGREE WITH YOU ON THAT. BUT THIS IS EASIER TO ENFORCE THAN THAT IS BECAUSE THIS, WE CAN OVERSIMPLIFYING, YOU CAN HIT A BUTTON AND KNOW EVERYBODY WHO'S LISTING AND YOU CAN COMPARE THAT TO WHO HAS A PERMIT, THE PEOPLE COMING THROUGH. THE ONLY WAY TO ENFORCE THAT IS SURE. YOU'RE ALSO, YOU'RE ALSO GONNA HAVE PEOPLE THAT AREN'T LISTED, THAT ARE STILL SHORT-TERM RENTAL. THEY'RE NOT GONNA GO THROUGH AIRBNB AND VRBO. PROBABLY NOT THAT MANY, BUT THEY WILL EXIST. I AGREE. I JUST, TO ME, TO ME, YOU KNOW, SETTING MAXIMUM, MAXIMUM OCCUPANCY PARKING REQUIREMENTS, THEY REALLY, IF WE JUST FOLLOW OUR CODE CODE ENFORCEMENT, IF THEY'RE ILLEGALLY PARKED ILLEGALLY PARK, THERE'S YEAH. FIVE CARS IN THE DRIVEWAY AND FIVE CARS FIT IN THE DRIVEWAY WITHOUT BLOCKING THE SIDEWALK. SO BE IT. UM, YOU'RE GONNA HAVE THAT ANYWAY WITH PEOPLE LIVING IN A HOUSE LIKE MINE. SO, UM, WHAT ABOUT STREET USE? AND SOME OF OUR NEIGHBORHOODS ARE PARKING ONLY ON ONE SIDE. WHAT ABOUT IT? IF YOU HAVE A GUY, IF YOU HAVE SOMEONE THAT HAS EIGHT PEOPLE IN A HOUSE RENTING IT ALL THE TIME, AND THE DRIVEWAY HOLDS TWO CARS AND THERE'S EIGHT MALES LIVING IN THERE, THEN THEY TAKE UP SIX SPOTS. SO TAKING UP THREE OR FOUR HOMES WORTH OF PARKING. BUT IF IT'S SOMEBODY WHO JUST LIVES THERE AND HAS THE SAME SITUATION, WHAT ARE YOU GONNA DO? ARE YOU GONNA DIVORCE THAT ON THEM? THAT'S MY POINT. NO, I, I DON'T, DON'T, SO YOU CAN'T, IT'S, IT'S HARD TO, YOU KNOW, UH, UH, WHAT AM I TRYING TO SAY? UH, IT'S TRY HARD TO PICK ONE, NOT THE OTHER. YEAH. RIGHT. YOU'RE GONNA ENFORCE IT ON SHORT TERM RENTAL, BUT YOU'RE NOT GONNA ENFORCE IT ON THE GUY WHO LIVES THERE OR THE GUY WHO RENTS IT FOR THREE YEARS. FOR ME, IT'S EASY. 'CAUSE COMMERCIAL HAS A HIGHER, AS A HIGHER, UH, IMPACT ON THE CITY. IT, IT USES MORE SERVICES. A LOT OF TIMES THIS TYPE OF COMMERCIAL WILL USE MORE SERVICES. AND SO TO ME IT'S, AGAIN, IF IT'S A COMMERCIAL, IF IT'S A SHORT TERM RENTAL THAT'S IN A COMMERCIAL DISTRICT, IT'S DIFFERENT. BUT BECAUSE HERE'S MY FEAR OF THE FUTURE I SEE IS HOUSES NOT GONNA GET CHEAPER. SO MORE AND MORE THINGS LIKE THIS ARE GONNA POP UP TO EVENTUALLY WE'RE NOT GONNA HAVE NEIGHBORHOODS ANYMORE. WE'RE GONNA HAVE LIKE THE ONE UP BY THE CHURCH ON THE NORTH SIDE OF TOWN. I MEAN, A THIRD TO HALF THE NEIGHBORHOOD IS, IT'S A RENTAL COMMUNITY. AND SO, BUT IT'S OPERATING, UH, PEOPLE WHO BOUGHT HOMES. I WOULD HATE TO OWN A HOME, BUT IT'S A LONG AND ALL BY NEIGHBORS ARE IN AND OUT THERE. IT'S LONG TERM TODAY, RIGHT? NO. AND THEN SAMSUNG STARTS CYCLING PEOPLE OUT EVERY, BEFORE THEY START DOING THE ROOM THING, THEY STARTED DOING THAT. AND SO I GO TO BUY A HOUSE, I'VE SPENT A MILLION DOLLARS ON THE HOUSE ONLY TO FIND OUT I CAN'T SELL IT BECAUSE NOW ALL THE OTHER HOMES ARE NOT BEING KEPT UP IN THE AREA BECAUSE THEY'RE ALL RUN BY A COMPANY. AND AS LONG AS THEY CAN RENT THE ROOMS. SO IS THE ONLY WAY WE'RE GONNA KNOW IF THEY'RE SHORT TERM RENTAL IS IF IN YOUR, IN YOUR, YOUR SCENARIO IS IF THEY GET THE PERMIT, LIKE THERE'S NO WAY TO LIKE NO, THE SOFTWARE IDENTIFIES IT BY, IF THEY'RE ON ANY OF THE WEBSITES. SO IT'S GONNA LIKE THAT SOFTWARE WILL LIKE SEARCH VRBO OR WHATEVER TO LOOK FOR THE ADDRESS. I'M INTERESTED HOW THAT WORKS BECAUSE ADDRESSES ARE ON HER OR AIRBNB. WHAT IT DOES IS IT BASICALLY TAKES THE PHOTOS THAT ARE UPLOADED FOR THE YEAH. AND THEN IT GOES, COMPARES IT AGAINST GOOGLE. YEAH. BECAUSE IN AUSTIN, UM, THERE ARE PEOPLE WHO DON'T PUT THE FRONT OF THEIR HOUSE ON AIRBNB FOR THAT EXACT REASON. THEY WILL PUT A LIVING ROOM PHOTO AS THEIR MAIN PHOTO ABOUT THAT SO THAT IT CAN'T FIND YOU BECAUSE IT, UH, YOU KNOW, A FEW YEARS AGO, AUSTIN DIDN'T HAVE A WAY TO VERIFY WHO HAD A AIRBNB. SO I'M GLAD YOU SAID THAT, BUT I'M ALSO NOW UPSET THAT YOU SAID THAT 'CAUSE THIS IS RECORDED. SO , HERE'S WHAT I SEE ON THAT IS SOME OF THESE CITIES, IT IT IS LIKE RADAR GUN, A RADAR. AND SO, OKAY, WE'VE GOTTA FIX, WELL, AGAIN, AT SOME POINT, SOMEONE BIGGER THAN US IS GONNA CHALLENGE THESE GUYS TO THE POINT WHERE IT'S OKAY, YOU KNOW, THE ADDRESS YOU'RE COLLECTING INCOME FROM, YOU [00:45:01] KNOW, YOU'RE DOING THIS, NOW WE'RE GONNA, THIS, MAYBE THE SOFTWARE'S GONNA TRACK IT AGAINST THE STATE REGISTRY. AND SO BASED ON THAT, AND SO THAT'S WHERE I THINK YOU SET THIS UP. AND THEN THAT'S WHY I THINK YOU NOTICE THOSE, YOU PUT A NOTICE TO B-R-B-O-B-B, WHOEVER THEY ARE, AND LET 'EM KNOW THAT THIS EXPECTATION. BUT BACK TO 2019, UH, WE WANT ALL RECORDS ON THESE HOMES BACK TO 2019, LET THEM COME UP AND SPEND OUR TIME AND THEY COULD BLOW US OFF AND THEN THEY, IT BLOW OFF. BUT I, I DON'T THINK A LOT OF THE BIGGER CITIES ARE LETTING THEM BLOW OFF. AND I THINK THEY'RE PROBABLY BEING MORE, UM, I GOT A LETTER FROM , THEY SENT ME A LETTER SAYING, HEY, WE BELIEVE YOU'RE OFFERING A, AN AIRBNB AND HERE'S A PROCESS TO, TO GO, YOU KNOW, PAY, PAY THE T YEAH. WE, YEAH, WE DEFINITELY SHOULD HAVE AN ORDINANCE OR MORE CON UH, DEFINED ORDINANCE FOR IT. YEAH. AND, AND AND WHEN YOU SAY A PERMIT, YOU, YOU, YOU, YOU EQUATE A PERMIT TO TAX THE PERMIT DOESN'T HAVE TO COST ANYTHING. YEAH. IT COULD JUST BE PERMIT JUST FOR ACCOUNTING BASIS TO LOG ENOUGH'S MORE ABOUT LIKE A LOG THE TRANSACTION. YEAH. IT'S MORE ABOUT THE HOT THAN IT IS ABOUT THE PERMIT. I I THINK THAT'S TOTALLY FINE. IT DIDN'T, IT DOESN'T CAUSE ANYTHING TO REGISTER MY PROPERTY AROUND THIS. YEAH. IF IT'S $0, I'M FINE WITH THAT. YEAH. IT'S MORE ABOUT, I I IT'S NOT, IT'S NEVER GONNA BE A PERFECT SYSTEM BECAUSE THERE ARE PEOPLE OUT THERE SMARTER THAN US. THEY'RE GONNA FIGURE OUT HOW TO, HOW TO BREAK IT. IF YOU DO THIS ABOUT GET TO THE PEOPLE WHO REALLY WANT TO DO THIS BY THE BOOK. WELL HERE'S WHAT IT IS, RIGHT. THING IT'S, IT'S IT'S VOLUNTARY. YEAH. UH, YEAH. RIGHT. LIKE EVERYTHING ELSE, WOULD YOU BE OKAY WITH THIS? WOULD YOU BE OKAY WITH THE ZERO PERMIT FOR LIKE THE FIRST YEAR WHILE IT'S VOLUNTARY, EVERYBODY IT'S BEING IMPLEMENTED. 'CAUSE AT SOME POINT I THINK IF, IF, HERE'S WHERE I LOOK AT THIS. I DON'T LIKE TEXAS, BUT IF, IF DOING THIS COSTS MONEY TO THE CITY, THEN BY NOT CHARGING THE COST OF AT LEAST MAJORS REGISTERED ALBERTA, HER TEAM CHECKING ON IT. NOW YOU ACTUALLY TAKING AWAY FROM OTHER SERVICES. BECAUSE IF THEY SAID, HEY, WE SPEND 5,000 OR 10,000 A YEAR IMPLEMENTING AND MANAGING THIS. WELL IF YOU DON'T CHARGE THE PEOPLE CAUSING THE COST. RIGHT. THAT'S WHY THE DOG CATCHER, WHEN YOU LOSE YOUR DOG, A TICKET IS A TAX. RIGHT. BECAUSE YOU CAUSE THEM TO COME OUT THERE BECAUSE THEY CAME OUT THERE, YOU NOW ARE SUBJECT TO YOU SPEED DOWN THE ROAD. THAT'S A TAX. IF YOU GET CAUGHT, IT'S, YOU HAD, SOMEONE'S GOTTA PAY FOR THE OFFICER. SO RIGHT. IF WE DID AN INTRODUCTORY PERIOD, YEAH. I, I'M STILL A NO ON, ON THE COST OF THE PERMIT. I DON'T, I DON'T NOT NOT TO ARGUE WITH YOU, BUT I DON'T WE DON'T HAVE METRICS TO PROVE WHAT YOU'RE SAYING. AR ARGUABLY YES. BUT WE WENT AFTER TO THE FIRST YEAR. 'CAUSE THEN THEY COULD COME BACK AND REPORT TO US AND HEY, YEAH, WE WOULD, YEAH. AND AGAIN, IF IT'S 10 HOMES, I'M WITH YOU. BUT IF IT'S, I MEAN IF IT'S I AGREE 80 HOMES, THEN AT SOME POINT JAMES IS GONNA SAY, LOOK, I NEED, I NEED A STAFF MEMBER. AND IT'S LIKE, RIGHT, IT'S $80,000 AND HOW, AND WE CAN'T USE HOT FUNDS TO PAY FOR IT. 'CAUSE THOSE FUNDS HAVE TO GO TO A SEPARATE DEAL. RIGHT. I WAS ABOUT TO SAY THAT, BUT OKAY, WELL YOU KNOW, THE SOFTWARE IS GOING COSTLY. WE KNOW THAT. RIGHT. SO THAT'S TRUE. SO YOU'VE GOT YET, I'M NOT POKING FRONT OF YOU GUYS, BUT NO ONE'S EVER BROUGHT US A SOFTWARE THAT WAS LIKE $2,500 WE SAY YES TO THAT. IT'S ALWAYS FOR $48,000 AND AN 80,000 SET. WAIT, HOLD ON. I THINK DAVID BROUGHT THE, UH, THE SOFTWARE TO US FOR THE PERSONALITY STUFF. I THINK THAT ONE WAS PRETTY CHEAP. . SO THAT, BUT I, I DON'T WANNA, YOU KNOW, DON'T BE PROBLEM. I THINK IT COULD BE A PROBLEM. 'CAUSE YOU KNOW, IT IS, IT IS. IT'S PROBABLY A PROBLEM FOR EVERYBODY AND IT'LL EVENTUALLY BE A PROBLEM FOR US IF IT ISN'T ALREADY. WE JUST DON'T KNOW. SO I'M OKAY DOING NO FEE AND THEN WE CAN FIND OUT AS WE COME IN. 80 IS NOT, IT'S NOT WORTH, BECAUSE THAT'S THE THING. WE DID USED TO HAVE A FEE ON, I THINK IT WAS PERMITS, RIGHT? FOR ALARMS PERMIT. AND THE PROBLEM WAS WE HAD LIKE 8,000 ALARMS OUT THERE WE THOUGHT, BUT WE ONLY HAD LIKE 400 PERMITS AND THE PERMIT WAS LIKE FIVE OR $10 25. 25 A YEAR. 50. YEAH. SO IT WASN'T MUCH. WE JUST SAID, LOOK, UNLESS WE'RE GONNA GO AROUND ACTUALLY FIND PEOPLE FOR NOT HAVING A PERMIT, THEN WELL IT'S TAKEN AWAY. IF THEY GET A, IF THEY GET A CALL AND IT'S A, IT IS A NO TROUBLE FOUND, THEN WE SHOULD CITE THAT RESIDENCE BUT NOT HAVE ANYONE YOU GET A WARNING ON THE FIRST LINE. ALARM COMPANY SHOULD RESPOND. NOT US. RIGHT. RIGHT, RIGHT. SO THAT'S WHERE I'M OKAY NOT HAVING TO FEED NOW AND WE CAN ALWAYS COME BACK BUDGET SEASON. I AGREE WITH THAT. AND STAFF, I JUST DON'T WANNA START OFF, YOU KNOW, AND, AND I KNOW THEY'RE GONNA PASS IT ON TO THE RENTER AND IT'S NOT EVEN GONNA HIT. NOBODY'S REALLY GONNA CARE. SAY IT GOT A COUPLE CAN LOSE HERE. ALWAYS. YOU HAVE IT SPREAD OUT OVER A YEAR. YEAH. OR HOWEVER MANY RENTERS WHO CARE. BUT, BUT I MEAN THAT IT, THAT COULD BE, THAT COULD GET UP THERE. UM, MY, MY PROPERTY IN ROUND ROCK, WE WERE RENTING IT OUT FOR ABOUT 2, 2 50 A NIGHT ON THE WEEKENDS. AND UM, [00:50:02] UH, TEXAS, THE TWO STEP VIN CAME INTO TOWN. I DIDN'T EVEN KNOW THE SOFTWARE THAT HAD AUTOMATICALLY RAISED MY, MY RENT TO 700. LOOK MAN, I'M DOING 3000. IT IS, IT WASN'T ME OF SOFTWARE . YEAH. MY FAULT. SO, WELL ON THAT, ON THAT NOTE REAL QUICK, WHO, SO HOW, AND ALL OF THIS IS THEN HOW DO WE COLLECT THE HOT TAX? DOES THAT COME THROUGH VRBO OR WHOEVER? NOPE. SO WHO PAYS IT? THE OWNER, LIKE IN YOUR CASE. I HAVE TO GO AND AND PAY IT TO THE CITY. OH. EITHER THEY HAVE A WEBSITE PORTAL THAT YOU GO TO AND PAY IT OR THEY THE OFFICE. SO DOES DO THOSE, UH, PLACES ALL THE OWNER SYSTEM. DO THEY? YEAH, BUT THEY DON'T CHARGE YOU FOR ANY KIND OF WHO, UH, LIKE VRBO OR AIRBNB. THEY DON'T CHARGE YOU AN EXTRA WHATEVER FOR ANY KIND OF, YOU HAVE, LOOK AT AIRBNB, VRBO, ALTHOUGH THEY'RE, THEY DON'T DO ANYTHING. ONLY THING THEY DO IS THEY PROVIDE YOU A, A PLATFORM. THAT'S ALL THEY'RE DOING. THEY PROVIDE YOU AN OPPORTUNITY FOR THE STATE. THEY DO CUT YOU FOR THE STATE. IF I, IF I REMEMBER CORRECTLY. YEAH, IF AUSTIN STARTS PUSHING IT, THEN IT BECOMES OKAY, LOOK HOW OUT. WE NEED TO CHECK THE BOX. I DON'T THINK THEY'RE GOING TO, THEY, UH, AIRBNB WASN'T, NO THAT WAS, THAT WAS UBER. I MEAN 'CAUSE UBER HAD THE SAME ISSUES AND THEY KICKED UBER OUT AND THEN UBER'S NOW, NOW THEY'RE BACK. BACK RELUCTANCE. I, I DON'T KNOW. I DON'T KNOW THE WHOLE STORY. WE GOTTA GO. SO, UM, IF WE, SO WE GOTTA GIVE DIRECTION HERE. SO IF WE DIRECT STAFF AND LET'S TRY TO MAKE DIRECT, I'LL MAKE A MOTION THAT WE START COLLECTING. WE DO THE ETJ, WE HAVE 'EM REGISTER ZERO COST STAFF REPORTS BACK, THEY GET THE SOFTWARE AND YOU REPORT BACK WHAT THE PREVIOUS AMOUNTS ARE AND THEN WE CAN COME BACK AND DECIDE LATER WHAT TO DO WITH THAT. WE DON'T HAVE INSPECTION REQUIREMENTS. YOU GUYS COME BACK. WE SAID, WE SAID NO IN OCCUPANCY. NO, I COME BACK WITH RECOMMENDATION FOR OCCUPANCY AND PARKING. WE WANT NOTIFICATION FOR NEIGHBORS. YEAH, I THINK THAT'S, WE WANT SIGNAGE OF BROCHURES. A PROCESS FOR FINES AND REVOCATION AND THEN A PILL PROCESS. IF YOU GUYS CAN BRING THAT BACK TO US. OKAY. AND WE CAN ALWAYS SATISFY SECOND DRAFT. FIRST ONE. YEAH. NICE. YOU DID GOOD. YOU DID GOOD. GOOD JOB. VERY GOOD. UM, BASICALLY DO THAT . YEAH. YOU ALREADY, YOU REWROTE OUR MOTION FOR US. YEAH. UM, ANY OTHER DISCUSSION ON IT? ALRIGHT, IS THERE ANYBODY OPPOSED? ALL IN FAVOR? AYE. OKAY. CALL ROLL CALL. OH, THAT REQUIRE ALL I TRY TO GET OUTTA HERE. COUNCILOR WARNER. AYE. COUNCILOR MORRIS? AYE. COUNCIL PORTERFIELD. AYE. KING. AYE MAYOR, SENATOR. AYE A AYE. ADJOURN 6 54. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.