[00:00:03]
          LOGGED IN? EVERYBODY LOGGED IN. WE'RE GOOD. YES, SIR. ALL RIGHT. IT'S 334. WE'LL START OUR WORK 
          [CALL TO ORDER]
SESSION NOW. THIS IS THE MCKINNEY CITY COUNCIL WORK SESSION. IT'S TUESDAY, MARCH THE 3RD, 2026. FIRST ITEM OF BUSINESS. WE'LL CALL THE MEETING TO ORDER. WE HAVE DONE THAT. NOW THE PUBLIC WILL HAVE THE OPPORTUNITY TO ADDRESS CITY COUNCIL ON AN AGENDA ITEM. 
          SEEING NO ONE REGISTER, WE'LL MOVE ON. FIRST ITEM IS TWO SIX. DASH. SCRATCH THAT. BACK UP TO 
          [DISCUSS AGENDA ITEMS for the City Council Regular Meeting to be held on Tuesday, March 3, 2026 at 6:00 p.m.
]
AGENDA ITEMS. DO WE HAVE ANY QUESTIONS ON THE AGENDA COUNCIL? NO SIR, I DO HAVE ONE. GIVE ME ONE SECOND. GET TO THAT POINT IN THE ROAD. DO DO DO DO DO DO DO DO DO DO DO. 260166 SHORT TERM RENTALS. PULL THAT ONE DOWN AND HAVE SOME CONVERSATION THERE, MR. QUINT. YES, SIR. IN LOOKING AT THE THE HISTORY OF THIS AND HOW IT HOW WE GOT TO THIS POINT, IT LOOKS LIKE IN 2016 THERE WAS A COUNCIL MEETING AND AGENDA ITEM AND IT WAS BASICALLY SAID, LET'S JUST MONITOR THE SITUATION. AND THEN IN 2024, AM I RIGHT? IT CAME BACK UP. COUNCIL SAID, LET'S, LET'S DO SOMETHING. THAT WAS TWO YEARS AGO. SO HERE'S MY QUESTION. WHY TWO YEARS LATER? WELL, I'LL BE HONEST WITH YOU. WE JUST DROPPED THE BALL. WE DIDN'T GIVE IT THE ATTENTION IT DESIRED. AND ULTIMATELY, A COUNCIL MEMBER RECENTLY, A COUPLE OF MONTHS AGO ASKED, HEY, WHAT'S THE STATUS OF THIS? AND IT WAS LIKE, OH, WHOA, WE DROPPED THE BALL. RUSH, RUSH, RUSH, GET SOMETHING HERE. JUST BEING HONEST WITH YOU. OKAY. ANOTHER QUESTION. THE NUMBER OF CALLS OR NUMBER OF CALLS OR COMPLAINTS THAT WE'VE GOTTEN RELATED TO VIOLATIONS OF AN ORDINANCE THAT WE HAVE OR WHAT DOES THAT LOOK LIKE? YEAH. SO RIGHT NOW WE DON'T HAVE ANY REGULATIONS REGULATING SHORT TERM RENTALS AT ALL, SO THAT WHEN WE GET A CODE VIOLATION, IT'S FOR TRASH AND DEBRIS FOR A SHORT TERM RENTAL, JUST LIKE IT WOULD BE FOR YOUR HOUSE OR MINE. 
          SAME THING WITH TRAFFIC. SAME THING WITH NOISE. SAME THING WITH LIGHTING. WE ARE ADDRESSING THE NUISANCES, NOT THE ACTUAL USE. SO A LOT OF TIMES. SO FOR EXAMPLE, IF YOU ASK ME HOW MANY COMPLAINTS HAVE WE GOTTEN FOR A SHORT TERM RENTAL? COULDN'T TELL YOU BECAUSE WE DON'T REGISTER SHORT TERM RENTALS. THEY'RE NOT REQUIRED TO REGISTER WITH US, SO WE DON'T KNOW. RIGHT. OKAY. WE DON'T HAVE A PRESENTATION TO GIVE. YEAH, YOU COULD HAVE HIM PULL THAT UP OUT OF ORDER. DO THAT NOW. WELL, LET'S GO AHEAD AND CLOSE. HOLLOWAY DIDN'T WANT TO SIT AND WAIT ON THAT. SO SO MICHAEL THANK YOU. SO WE'RE GOING TO COME BACK TO YOUR PRESENTATION. BUT RATHER THAN MAKE HOLLOWAY WAIT WE'RE GOING TO LET HIM GO FIRST AND THEN WE'LL CALL YOU BACK UP. LOVE THAT OKAY. YOU CAN GO CATCH YOUR BREATH NOW. OKAY. SEEING NO MORE DISCUSSION ON THE AGENDA FOR THESE TONIGHT'S MEETING, WE'LL GO TO TWO SIX. 
          MR. MAYOR, IF I COULD REAL QUICKLY, JUST FOR THE COUNCIL'S EDIFICATION, THERE ARE A COUPLE OF ITEMS THAT ARE GOING TO NEED TO BE PULLED DOWN FROM THE CONSENT CALENDAR THIS EVENING. 
          I DIDN'T CIRCLE THEM. ACTUALLY, ONE OF THEM HAS TO DO WITH THE DESIGN CONTRACT FOR STONEBRIDGE DRIVE. THERE'S A SCRIVENER'S ERROR IN TERMS OF THE NAME OF THE FIRM. IS THE DIFFERENT. IT WAS NOT THE RIGHT NAME THAT WAS SAVED, SO THAT WILL POINT THAT OUT. BUT THAT IS A KIMLEY-HORN I BELIEVE IS GOING TO BE THE DESIGN CONTRACTOR THAT WAS INTENDED. IT JUST WAS A SCRIVENER'S ERROR. AND THE OTHER ONE HAS TO DO WITH A TERM SHEET FOR A DEVELOPMENT PROJECT IN PROVIDENCE, 0173 THOSE WE WILL ASK FOR YOU TO PULL OFF OF THE CONSENT CALENDAR AT THE REGULAR MEETING, SO WE CAN CORRECT THAT ON THE FLOOR, AND THEN YOU CAN ACT. SO THE FIRST 10171 OR 0172. WHICH ONE IS IT AS YOU PUT IT, THE SCRIVENER'S ERROR. THAT'S A BIG WORD, COUNCILMAN SCRIVENER. BIG WORD SIR. YEAH. THIS ONE WOULD BE THE. 01690169I BELIEVE. OKAY. 
          YES. 0169 OKAY. ANYTHING ELSE? THAT'S IT. OKAY. VERY GOOD. NEXT ITEM 260156. CONSIDER THE 
          [Consider/Discuss the Annual Audit Results, and the Acceptance of the Annual Comprehensive Financial Report (ACFR) and the Federal/State Single Audit Reports for the Fiscal Year Ended September 30, 2025]
ANNUAL AUDIT RESULTS AND ACCEPTANCE OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT. 
          [00:05:03]
I APOLOGIZE, I'M NOT MARK HOLLOWAY. I AM CHANCE MILLER, THE ASSISTANT FINANCE DIRECTOR. 
          TODAY WE HAVE A SHORT PRESENTATION FOR YOU ALL ON THE FISCAL YEAR 2025 ANNUAL AUDIT RESULTS. I DID WANT TO START OFF AND PUBLICLY GIVE A BIG THANK YOU TO STAFF. WHENEVER WE GO THROUGH THE AUDIT PROCESS, THE AUDITORS WILL BE ON SITE FOR A MONTH. AND THAT'S JUST WHEN THEY'RE ACTUALLY DOING FIELD WORK. THEY COME FROM AN INTERIM AS WELL. AND SO OUR STAFF IS DOING OUR DAY TO THEIR DAY TO DAY JOBS AND ALSO CLOSING OUT THE PRIOR FISCAL YEAR. SO IT ENDS UP TURNING INTO DOUBLE THE AMOUNT OF WORK AND SAYING THAT WE'RE ABLE TO PRESENT A CLEAN, UNMODIFIED OPINION TO YOU ALL. AND EVEN BIGGER. WE HAVE NO PROPOSED AUDIT ADJUSTMENTS THIS YEAR, SO A BIG TESTAMENT TO THE QUALITY OF STAFF WE HAVE IN THE FINANCE DEPARTMENT AND THE WORK THEY PUT IN THIS YEAR. I DID WANT TO GIVE A LITTLE BACKSTORY. ON FEBRUARY 16TH, WE MET WITH THE AUDIT COMMITTEE. SO I THINK THREE OF YOU ALL WERE THERE. WE DID A LITTLE BIT LONGER PRESENTATION, BUT ALLOWED FOR SOME DIALOG THAT OUR THE WEAVER DIRECTOR, CLAIRE, PRESENTED THAT. AND THEN ON TOP OF THAT, THIS ITEM WILL BE ON CONSENT TONIGHT FOR YOUR APPROVAL. AND SAYING THAT I'D LIKE TO WELCOME CLAIRE. SHE'S A DIRECTOR AT WEAVER, AND SHE'S OUR EXTERNAL AUDITOR. THANK YOU, THANK YOU. CHANCE. GOOD AFTERNOON. I APPRECIATE THE TIME TO COME AND PRESENT TO YOU ALL TODAY. WE DID MEET WITH AUDIT COMMITTEE BACK LAST MONTH AND GOT TO DELIVER THESE RESULTS AS WELL. SO AGAIN MY NAME IS CLAIRE WOOTEN. I'M AN AUDIT DIRECTOR. I'VE GOT 15 YEARS OF EXPERIENCE AND I REALLY ENJOY BEING ON THIS THIS AUDIT. NUMBER ONE, WE PERFORMED THIS AUDIT IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS AS WELL AS GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS. 
          WE ALSO PERFORMED A FEDERAL AND STATE SINGLE AUDIT ACT. SO FOR THAT FEDERAL SINGLE AUDIT, IT'S WE PERFORMED THAT IN ACCORDANCE WITH THE UNIFORM GUIDANCE. AND THAT'S STATE SINGLE AUDIT. WE PERFORMED IN ACCORDANCE WITH THE TEXAS GRANT MANAGEMENT STANDARDS OR TEX GUMS. AND THEN WE ALSO PERFORMED A NUMBER OF TESTS IN REGARDS TO COMPLIANCE, THE LARGEST OF THAT BEING UNDER THE PUBLIC FUNDS INVESTMENT ACT, WHERE WE'RE LOOKING AT YOUR INVESTMENT PROCEDURES, ALL OF THE INVESTMENT OFFICERS THAT THE CITY HAS, AND THEN MAKING SURE INVESTMENTS ARE BEING RECORDED AND ENTERED INTO AS PART OF THAT PUBLIC FUNDS INVESTMENT ACT. SO OUR AUDIT TIMELINE IS REALLY WHAT WE CONSIDER A YEAR LONG APPROACH. SO THIS YEAR WE DID ENTER INTO A NEW AGREEMENT WITH THE CITY. WHEN WE WENT THROUGH THAT RFP PROCESS, WE'RE ONCE WE WERE AWARDED THE AUDIT, WE STARTED THE INITIAL AUDIT PLANNING PHASE. WE CAME OUT FOR INTERIM FIELDWORK IN SEPTEMBER, WHERE WE PERFORMED A NUMBER OF PROCEDURES LIKE INTERNAL CONTROL TESTING, INTERNAL CONTROL WALKTHROUGHS, WHERE WE GOT AN UNDERSTANDING OF THE NATURE OF THOSE INTERNAL CONTROLS. AND THEN IN DECEMBER, WHEN ALL OF THE NUMBERS WERE FINALIZED AND READY TO BE AUDITED, THAT'S WHEN WE CAME OUT AND ACTUALLY AUDITED THE FINANCIAL STATEMENTS WE PRESENTED TO AUDIT COMMITTEE BACK IN FEBRUARY, AND THEN HERE TODAY TO PRESENT FINAL RESULTS, RESULTS AS WELL. SO THERE WERE NO CHANGES TO OUR PLANNED AUDIT APPROACH THAT WE DETERMINED DURING INTERIM. WHEN WE WERE LOOKING THROUGH COUNCIL MINUTES AND REALLY DETERMINING WHAT OUR SIGNIFICANT RISK WOULD BE, OR THE RISK ASSESSMENT OF THE CITY. 
          AND THERE WERE NO CHANGES TO THAT AUDIT PLAN. SO WHAT WE HAD SET OUT TO DO, THERE WERE NO CHANGES FROM THAT. WE ALSO DO ANALYZE RISK. AND FOR ANY CITY, ESPECIALLY OF THIS SIZE, WE DO CONSIDER IMPROPER REVENUE RECOGNITION A RISK. AND THAT, AGAIN, IS FOR ANY CITY WHERE WE ARE LOOKING AT UTILITY BILLING WITH, YOU KNOW, JUST A REFINED MICROSCOPE. WE'RE SELECTING A NUMBER OF TRANSACTIONS AND GOING DOWN INTO MAKING SURE THAT THE UTILITY BILLING RATES THAT YOU ALL APPROVED AS COUNCIL ARE ACTUALLY BEING CHARGED TO THE CUSTOMERS. AND THEN ALSO WITH FEDERAL AND STATE GRANTS, BECAUSE FEDERAL AND STATE GRANTS NONCOMPLIANCE COULD HAVE A MATERIAL EFFECT ON THE FINANCIAL STATEMENTS. SO WE'RE DIGGING IN WITH A BIGGER MICROSCOPE THERE AND REALLY MAKING SURE THAT NOT ONLY WAS THE CITY IN COMPLIANCE WITH THOSE, THAT THE REVENUE WAS ALSO RECORDED CORRECTLY AND NO ISSUES THERE, NO ISSUES WITH UTILITY BILLING THAT WE NOTED OR WITH THE REVENUE RECOGNITION THERE. WE WITH OUR RESULTS DURING THE COURSE OF THE AUDIT, LIKE CHANCE SAID, WE NOTED NO UNCORRECTED MISSTATEMENTS. SO THOSE ARE MISSTATEMENTS THAT WERE IDENTIFIED BY US AND CORRECTED BY MANAGEMENT. SO THAT MEANS THE FINANCIAL STATEMENTS THAT YOU ALL HAVE THAT WE AUDITED ARE THE SAME NUMBERS THAT THEY HAVE IN THEIR SYSTEM. AND THEN WE NOTED NO SIGNIFICANT DEFICIENCIES, NO MATERIAL WEAKNESSES, AND THEN NO INDEPENDENCE MATTERS TO REPORT, OUR TEAM IS INDEPENDENT FROM THE CITY. THE FIRM IS AS WELL. AND THEN ON THE LOWER LEFT, WE HAVE ISSUED AN UNMODIFIED OPINION OVER THE CITY'S FINANCIAL STATEMENTS. AND THEN WE HAVE ALSO ISSUED AN UNMODIFIED AUDIT REPORT OVER THE FEDERAL, THE FEDERAL SINGLE AUDIT AND THOSE FEDERAL PROGRAMS, AS WELL AS THE STATE SINGLE AUDIT IN THE STATE PROGRAMS. AND THEN ON THE 
          [00:10:03]
BOTTOM RIGHT, THERE ARE NO OTHER COMMUNICATIONS THAT I NEED TO MAKE SURE THAT YOU ALL ARE AWARE OF. THERE ARE NO MANAGEMENT LETTERS WITH INTERNAL CONTROL ISSUES OR ANYTHING LIKE THAT. SO NOTHING TO MAKE YOU ALL AWARE OF. AND AGAIN, I COVERED THIS EARLIER, BUT THERE THAT BOTTOM ROW IS COVERING THE RISK OF FRAUD IN REVENUE RECOGNITION, WHICH AGAIN IS IS SIMILAR TO ANY OTHER CITY AUDIT, ESPECIALLY WITH THE WATER, SEWER AND THE GRANTS. AND THEN AGAIN ALSO WITH AIRPORT, BECAUSE YOU ALL DO HAVE AN AIRPORT, WE MADE SURE WE WERE LOWERING OUR SCOPE THERE AND DOING DOING A NUMBER OF REVENUE TESTING TRANSACTIONS THERE AND NOTED NO ISSUES. AND THEN ALSO FOR THE TOP LINE FOR THE MANAGEMENT OVERRIDE OF INTERNAL CONTROLS, WE DID A NUMBER TESTING OF JOURNAL ENTRIES, MAKING SURE THAT THE CITY DOES HAVE INTERNAL CONTROLS IN PLACE AND MAKING SURE THAT THERE IS NO MANAGEMENT BIAS THAT WE WERE AWARE OF. SO EVERYTHING LOOKED GOOD THERE AS WELL. THE IN YOUR ACT FOR THE ANNUAL FINANCIAL REPORT, YOUR SIGNIFICANT ACCOUNTING POLICIES ARE NOTED IN NOTE ONE. THERE WAS ALSO AN IMPLEMENTATION OF A SIGNIFICANT GASB STANDARD THIS YEAR, WHICH IS GASB 101 CALLED COMPENSATED ABSENCES. AND THAT WAS IMPLEMENTED THIS YEAR. THAT MADE THE CITY TAKE A LOOK AT ALL OF THE LEAVE BALANCES THAT THE EMPLOYEES HAVE, AND MAKING SURE THAT THOSE BALANCES THAT WERE EARNED AND AVAILABLE TO BE USED, BUT NOT NECESSARILY GOING TO BE PAID OUT AFTER AT THE RETIREMENT POINT. SO THEY HAD TO PUT IN PLACE AN ESTIMATE TO MAKE SURE THAT THOSE WERE PROPERLY REFLECTED ON THE FINANCIAL STATEMENTS. AND THEN THERE ARE OTHER ESTIMATES INCLUDED IN THE FINANCIAL STATEMENTS THAT I WANTED TO MAKE YOU ALL AWARE OF. THE MOST SIGNIFICANT OF THOSE BEING THE IBNR OR INCURRED BUT NOT REPORTED LIABILITIES LIKE MEDICAL CLAIMS, AND THEN ALSO THE PENSION AND OPEB LIABILITY. 
          SO THAT'S THE RETIREE HEALTH PLAN. THOSE ARE PREPARED BY AN ACTUARY, AND WE REVIEW THE ACTUARIAL REPORTS FOR ANY KIND OF BIAS OR UNUSUAL ASSUMPTIONS. AND WE NOTED NO STRANGE ISSUES THERE AS WELL. EVERYTHING LOOKED GOOD WITH THOSE REPORTS. THIS IS A LITTLE BIT OF BACKGROUND BEHIND COMPENSATED ABSENCES. BUT THE CITY DID IMPLEMENT THE STANDARD AND IT DID PROVIDE A RESTATEMENT OF THE CITY'S FINANCIAL STATEMENTS TO ADD TO THE LIABILITY FOR THE CITY OF $603,000 IN THE COMPONENT UNITS OF $61,000. SOME. THERE WERE NO ANY UNUSUAL TRANSACTIONS THAT WE WERE MADE AWARE OF, OR THAT WE FOUND. THROUGHOUT THE COURSE OF OUR AUDIT, ALL TRANSACTIONS HAD PROPER SUPPORT, AND THEN THERE WAS NONE, NO TRANSACTIONS THAT WERE ENTERED INTO WITHOUT PROPER GUIDANCE. WE WE DID NOT IDENTIFY ANY OR IDENTIFIED OR SUSPECTED FRAUD. NO DIFFICULTIES ENCOUNTERED DURING THE COURSE OF OUR AUDIT. 
          MANAGEMENT WAS VERY WILLING TO PROVIDE EVERYTHING WE NEEDED AND TIMELY. AND THEN WE HAD NO DISAGREEMENTS WITH MANAGEMENT, NO DIFFERING OPINIONS ON ANY TRANSACTIONS OR ANYTHING LIKE THAT. AND THEN ONCE WE WERE READY TO ISSUE OUR OPINION, MANAGEMENT DID PROVIDE US A MANAGEMENT REPRESENTATION LETTER THAT THEY SIGNED. THAT WAS THEM TAKING RESPONSIBILITY OVER THE FINANCIAL STATEMENTS AND SAYING THAT THEY PROVIDED EVERYTHING TO US. AND THEN WE'RE NOT AWARE OF MANAGEMENT CONSULTING WITH ANY OTHER ACCOUNTANTS OR AUDITORS FOR A BETTER OPINION, AND THEN NO OTHER SIGNIFICANT MATTERS OR FINDINGS OR ANY OTHER ISSUES THAT WE NEED TO MAKE SURE YOU ALL ARE AWARE OF. AND THAT IS ALL. IT'S IN A QUICK NUTSHELL. 
          DO YOU ALL HAVE ANY QUESTIONS OVER THE PRESENTATION OR OVER THE AUDITED FINANCIAL STATEMENTS? OH, NO QUESTIONS, MISS WOOTEN. THANK YOU. I APPRECIATE YOU BEING HERE. 
          [Consider/Discuss a Potential Short-Term Rental (STR) Registration Program]
THANK YOU. I APPRECIATE YOU HAVING ME. THANKS. THANK YOU. NEXT ITEM 260157. CONSIDER POTENTIAL SHORT TERM RENTAL REGISTRATION PROGRAM. MR. QUINN, YOU SHOULD BE ALL WARMED UP NOW. 
          I'M BACK. MICHAEL QUINN, EXECUTIVE DIRECTOR OF DEVELOPMENT SERVICES HERE TO GIVE YOU A BRIEF UPDATE REGARDING A SHORT TERM RENTAL REGISTRATION ORDINANCE THAT WE'VE PLACED ON YOUR REGULAR AGENDA TONIGHT FOR CONSIDERATION. SO FIRST, BEFORE GETTING INTO THE PROPOSED ORDINANCE, I WANT TO SET THE STAGE A LITTLE BIT. A LOT OF THE INFORMATION ON THIS SLIDE, YOU'VE ALREADY HEARD, YOU ALREADY KNOW. SO NOTHING SHOULD BE EARTH SHATTERING HERE, BUT JUST KIND OF A BROAD DEFINITION. AND AGAIN, DEFINITIONS OF SHORT TERM RENTALS DEPEND ON WHICH CITY YOU'RE AT, WHAT CONTEXT YOU'RE TALKING ABOUT THEM. BUT AT A HIGH, HIGH LEVEL RESIDENTIAL PROPERTY THAT IS RENTED TO SOMEONE THAT IS NOT PERMANENTLY LIVING THERE, THAT'S A SHORT TERM RENTAL. AND IT'S IMPORTANT TO NOTE THAT SHORT TERM RENTALS ARE REQUIRED TO PAY HOTEL OCCUPANCY TAXES. AS EVERYBODY KNOWS, THEY'RE VERY POPULAR NOW. THEY'VE BEEN POPULAR SINCE THE LATE 2000 AND CONTINUE TO GET MORE AND MORE 
          [00:15:06]
NOTORIETY, TAKE ROOT IN CITIES AS TIME GOES ON. WITHOUT A REGISTRATION ORDINANCE, IT'S DIFFICULT TO KNOW HOW MANY SHORT TERM RENTALS WE ACTUALLY HAVE IN THE CITY OF MCKINNEY. 
          DEPENDING ON THE SOURCES YOU LOOK AT, THERE COULD BE ANYWHERE FROM 300 TO WELL OVER 450 IN THE GEOGRAPHIC AREA. SO IT'S REALLY DIFFICULT TO KNOW EXACTLY HOW MANY SHORT TERM RENTALS CURRENTLY EXIST IN THE CITY OF MCKINNEY. MAYOR, TO YOUR EARLIER DISCUSSION WITH ME, WE'VE TALKED ABOUT THIS TWICE SHORT TERM RENTALS, TWICE WITH THE CITY COUNCIL, FIRST IN 2016. 
          THE DIRECTION AT THAT TIME WAS TO, WELL, LET'S LET THE MARKET EVOLVE. LET'S LET SOME OF THE CASE LAW KIND OF MAKE ITS WAY THROUGH THE COURT SYSTEM. LET'S CONTINUE TO ADDRESS NUISANCES, THINGS THAT MIGHT ARISE AS A RESULT OF THESE SHORT TERM RENTALS. BUT LET'S LET'S STOP SHORT OF DOING ANYTHING JUST YET. FAST FORWARD TO 2024. GAVE THE CITY COUNCIL A BRIEF UPDATE ON SOME OF THE CASE LAW THAT'S STILL PENDING. GOING THROUGH THE COURTS, SOME OF WHAT SOME OF OUR SISTER CITIES HAVE DONE AND THE DIRECTION FROM THE COUNCIL AT THAT TIME WAS, HEY, WORK ON A REGISTRATION ORDINANCE. LET'S START THERE AND LET'S GO DOWN THE ROAD SOME OTHER TIME. AGAIN, AS I MENTIONED EARLIER, APOLOGIZE FOR THE DELAY IN GETTING THIS BACK TO YOU. WE JUST DROPPED THE BALL. WE DIDN'T GIVE IT THE ATTENTION THAT IT WARRANTED. SO WITH THAT SAID, LET'S LOOK AT SOME OF OUR SISTER CITIES. SHORT TERM RENTALS ARE REGISTERED IN PLANO, FRISCO AND ALLEN. YOU CAN SEE UP HERE KIND OF A WIDE GAMBIT OF WHAT THEY DO. SOME SIMILARITIES. ALL OF THEM CHARGE A FEE. ALL OF THEM REQUIRE 24 HOUR CONTACT INFORMATION, BUT THEY VARY ON WHAT THEY ACTUALLY REGULATE. FOR EXAMPLE, YOU CAN SEE THE CITY OF ALLEN REGULATES HOW MANY PEOPLE CAN BE IN A BEDROOM, WHEREAS FRISCO AND PLANO DON'T DO THAT, WHEREAS PLANO, ON THE OTHER HAND, REQUIRES VIDEO SURVEILLANCE MONITORING EQUIPMENT SO THAT YOU CAN GET A BETTER FEEL FOR WHAT'S GOING ON. SO MY POINT IN BRINGING THIS UP TO YOU IS JUST TO ONE, DRAW YOUR ATTENTION TO PLANO, FRISCO, ALLEN. SISTER CITIES ARE ALREADY REQUIRING SHORT TERM RENTALS TO REGISTER WITH THEM. BUT THEN THERE'S A WIDE RANGE OF OF REGISTRATION ORDINANCES THAT COME FROM THAT POINT. WE'LL TALK A LITTLE BIT MORE ABOUT THAT HERE IN A COUPLE OF SLIDES. SO OUR PROPOSAL WE WANT TO MAKE IT EASY. WE WANT TO MAKE IT PRETTY EFFICIENT FOR ANY SHORT TERM RENTALS TO REGISTER. AS SUCH WE'RE GOING TO REQUEST A OR PROPOSE AN ANNUAL REGISTRATION ONE TIME NO FEE. WE ARE GOING TO REQUIRE THAT YOU PROVIDE US, AS PART OF THAT REGISTRATION, A SHORT OR A 24 HOUR CONTACT. WHO CAN WE CALL IF WE GET COMPLAINTS? WHO CAN WE CALL TO MAKE SURE THAT YOU'RE DOING THE RIGHT THINGS? AND THEN A PROPOSED EFFECTIVE DATE. LET'S START NOW. IT'S LOW COST OF ENTRY. AND SO OUR PROPOSAL WAS AS SOON AS IT GETS PUBLISHED IN THE NEWSPAPER, LET'S GO LIVE WITH IT. AS I MENTIONED, WITH ANY ORDINANCE, IT'S A SPECTRUM, RIGHT? YOU COULD GO SUPER DETAILED, SUPER INTO THE WEEDS THAT WOULD BE ON THE RIGHT SIDE OF THIS SLIDE, AND THEN YOU COULD DO NOTHING AND THAT WOULD BE ON THE LEFT SIDE. WE FEEL LIKE THE PROPOSAL THAT'S ON THE COUNCIL AGENDA TONIGHT IS VERY MUCH REGISTRATION ONLY. SO WE FEEL LIKE IT'S ON THE LEAST INVOLVED SIDE OR ON THE LESS INVOLVED SIDE DEFINITELY HAS MINIMAL LEGAL RISK FROM OUR PERSPECTIVE. 
          SO WITH THAT SAID, I WANTED TO COMPARE ALL OF THEM AGAIN. YOU SAW THE PLANO FRISCO ALLEN ON A COUPLE OF SLIDES. NOW WE'VE ADDED THE CITY OF MCKINNEY ON THERE. AND YOU CAN SEE AT A HIGH, HIGH LEVEL, ALL WE'RE ASKING YOU TO DO IS REGISTER ANNUALLY. AND WE'RE NOT PROPOSING A FEE AT THIS TIME, BUT WE ARE ASKING YOU TO GIVE US CONTACT INFORMATION. WHO CAN WE GET IN TOUCH WITH IF WE HAVE QUESTIONS ABOUT YOUR FACILITY? SO WITH THAT, I WILL STAND FOR QUESTIONS. ANY QUESTIONS? YEAH. MR. QUINT, THANK YOU FOR THIS. IN THE INTEREST OF FULL DISCLOSURE, I'M THE ONE WHO ADVOCATED TO BRING THIS UP TO A WORK SESSION IN TELL ME WHERE I'M WRONG AND ANYTHING I SAY. AND, MR. HAUSER, YOU MIGHT WANT TO CHIME IN TO THE STATE DOESN'T ALLOW CITIES MUCH ABILITY AT ALL TO REGULATE SHORT TERM RENTALS. WHAT DOES HAVE THE ABILITY TO REGULATE SHORT TERM RENTALS IS HOA'S. AND SO THERE'S A LOT OF COMMUNITIES IN WEST MCKINNEY THAT DO HAVE HOAS THAT DO REGULATE SHORT TERM RENTALS, BUT THE CITIES DON'T ENJOY ANY TEETH IN THIS. NOW, IN DISTRICT TWO, WHERE I'M THE COUNCILMAN, THERE'S ONE COMMUNITY OF NOTE THAT DOESN'T HAVE AN HOA, AND THAT IS THE COMMUNITY CALLED VISTA OF EL DORADO AND EL DORADO ESTATES. NOW, 30 YEARS AGO, VONDA AND I MOVED INTO EL DORADO ESTATES. WE'RE ON OUR SECOND HOUSE AND WE'VE BEEN THERE ALSO. THIS IS REALLY NOT 
          [00:20:01]
IMPACTED ME PERSONALLY, BUT IN VISTA OF EL DORADO IN PARTICULAR, WERE THE HOMES ARE A LITTLE BIT OF A LOWER PRICE POINT. THERE'S A LARGE MANIFESTATION IN MY, IN MY MIND OF SHORT TERM RENTALS THAT ARE COMING UP. THIS IS ANECDOTAL, BUT JUST TO GIVE YOU A SENSE OF IT, THERE'S A THERE'S A GENTLEMAN WHO LIVES THERE WHO I'VE BEEN IN CONTACT WITH. AND HE HAD HE APPROACHED SOMEONE WHO WAS REDEVELOPING OR REMODELING ONE OF THE HOMES TO BE AN STR. AND THAT GENTLEMAN SAID TO THE RESIDENT, IF YOU KNOW OF ANY TWO STORY HOMES AVAILABLE IN THE VISTA EL DORADO, I WANT TO BUY THEM TO BE SHORT TERM RENTALS. I WOULD SAY, AND THIS IS MY OPINION, THAT A LARGE NUMBER OF SHORT TERM RENTALS IN ONE COMMUNITY CAN DIMINISH WHAT THAT COMMUNITY IS, BECAUSE EVERYONE THERE IS TRANSIENT, AND I ENJOY STAYING IN SHORT TERM RENTALS ALL OVER THE COUNTRY AND HAVE FOR 25 YEARS. BUT I DON'T PRETEND THAT IT IS WHAT'S BEST FOR A NEIGHBORHOOD, BUT WE CAN'T CONTROL THAT. SO THAT'S WHY THIS IS HERE WAS JUST TO TO DO TWO THINGS REALLY WAS TO CREATE THE REGISTRATION SO WE KNOW WHO THEY ARE TO GET THE CONTACT INFORMATION, AND ALSO TO INJECT SOME KIND OF A HURDLE IN ORDER TO DO THESE THINGS IN THIS AREA OF CONCENTRATION, WHICH THEY'RE ALLOWED. WHEREAS IN MOST AREAS OF WEST MCKINNEY THEY'RE NOT ALLOWED. SO I WOULD ASK THEN WHY NOT THE REGISTRATION FEE? DO WE FEEL LIKE THAT IS PUTTING US ON LEGAL, QUESTIONABLE GROUND TO DO WHAT OUR SISTER CITIES ARE DOING? OR WHY? OR IF NOT, WHY DO WE NOT HAVE THE REGISTRATION FEE? AS PART OF THIS PROPOSAL, I'LL LET MR. HAUSER SPEAK TO THE LEGALITY OF THE FEE. BUT OUR INTEREST IN NOT PROPOSING ONE WAS JUST TO MAKE IT SUPER EASY TO REGISTER. THERE'S NO REASON WHY YOU WOULDN'T APPROACH THE CITY AND FILL OUT THE REGISTRATION. OKAY, SO I AGREE WITH MR. QUINN. WE LOOKED AT IT INTERNALLY MORE AS A A PERHAPS A BARRIER WHERE PEOPLE WOULD NOT WANT TO REGISTER BECAUSE THERE WAS A FEE. BUT FROM A LEGAL STANDPOINT, A FEE COULD BE CHARGED. IT WAS REASONABLE FOR THE ADMINISTRATION OF THE PROGRAM, SO IT COULD COME WITH A FEE IF THE COUNCIL SO DESIRED. BUT THE FEELING HERE WAS IT MIGHT BE BETTER TO GET THE FULL UNIVERSE OF OF PROPERTIES IF THERE WASN'T A FEE. OKAY. AND I WILL JUST SAY THAT I'LL ACQUIESCE TO THAT. I TRUST STAFF ON THIS, BUT I MAY BE BACK ASKING FOR A FEE LATER, BUT I APPRECIATE, MR. MAYOR. THANK YOU. YOU'RE WELCOME. I MEAN, TO YOUR POINT, MY QUESTION WOULD BE HOW MANY ARE WE ESTIMATING ARE IN MCKINNEY AND HOW MUCH STAFF TIME DOES THAT TAKE? I MEAN, IS WOULD THAT JUSTIFY A FEE AT THIS POINT? YEAH, TOUGH TO SAY. 
          AS I MENTIONED, IT'S DIFFICULT TO KNOW EXACTLY HOW MANY ARE IN THE CITY OF MCKINNEY. A REAL WORLD ESTIMATE IN MY MIND WOULD BE IN THE 300 350 RANGE. AND IN TERMS OF HOW MUCH STAFF TIME, IT REALLY DEPENDS ON HOW WE ADMINISTER THE PROGRAM. CAN WE AUTOMATE IT THROUGH GOV OR SOME OTHER PLATFORM THAT THE CITY HAS WHERE YOU JUST YOU APPLY, YOU GIVE US YOUR REGISTRATION AND WE KICK OUT YOUR APPROVAL, OR IS THERE SOME REVIEW THAT WE NEED TO TO DO THAT'S STILL TO BE DETERMINED. BUT I THINK AT A HIGH LEVEL, WE DON'T THINK IT'LL BE A WHOLE LOT OF WORK IF WE CAN AUTOMATE IT, IF IT'S NOT AUTOMATED AND WE HAVE TO DO EVERYTHING THROUGH PAPER APPLICATIONS, THERE'LL BE SOME NOMINAL LOAD ON CITY STAFF RESOURCES. MR. MAYOR, TO THE MAYOR PRO TEM POINT. PERHAPS. MAYBE WE REVISIT THIS IN A YEAR AND SEE WHAT KIND OF PARTICIPATION, SEE HOW MUCH EFFORT IT'S TAKEN THE STAFF AND YOU MIGHT WANT TO IMPOSE A FEE AT THAT TIME. IS IS THERE A PENALTY FOR NOT REGISTERING? YEAH. SO IT WOULD BE A SUBJECT TO THE SAME MISDEMEANOR AS ANY OTHER ORDINANCE VIOLATION. ULTIMATELY, WE WOULDN'T START WITH A CITATION. WE WOULD NOTIFY YOU, HEY, IT'S FREE, EASY TO REGISTER. HERE'S THE WAY. BUT ULTIMATELY IF THEY DIDN'T, IT WOULD BE SUBJECT TO A CITATION CLASS C MISDEMEANOR JUST LIKE EVERY OTHER CODE VIOLATION. YOU KNOW, WE JUST HAD A PRESENTATION BY BRANDON OPALA THE LAST SESSION WITH INTEGRATION OF AI AND UTILIZING THAT. I'M JUST WONDERING IF HE MIGHT BE A PERSON WHO WOULD BE WILLING TO WEIGH IN ON THIS, TO AUTOMATE THIS AS MUCH AS POSSIBLE, BUT ALSO PREPARE IT TO BE INTEGRATED, FOR INSTANCE, WITH POLICE DEPARTMENT TO LOG THE NUMBER OF COMPLAINTS THAT WE DO GET SO THAT WHEN WE COME BACK IN A YEAR, WE HAVE A WHOLE LOT MORE DATA TO COMPARE TO. SEE IF THAT'S TO YOUR POINT, I THINK BRANDON AND WHAT HE'S DOING WITH SNOWFLAKE IS A GREAT WAY TO CONSOLIDATE THE INFORMATION. I THINK FOR US, WHAT WE'VE GOT TO EXPLORE IS CAN ENTER GOV THE LAND MANAGEMENT SYSTEM. IT ISSUES PERMITS. RIGHT. AND WHAT ARE WHAT IS A REGISTRATION IF NOT JUST BASICALLY A PERMIT. SO WE THINK WE MAY BE ABLE TO DO THIS WITH GOV. AND WE MAY NOT HAVE TO DO MUCH HEAVY LIFTING. WE 
          [00:25:02]
JUST GOT TO EXPLORE SOME OF THE LIMITATIONS OF GOV. BUT YEAH COORDINATION WITH MR. OPL UP AND THE DATA DATA HALL WOULD BE VERY VERY BENEFICIAL FOR SURE. THANK YOU MICHAEL. BEHIND YOU, CHIEF ELLENBURG. CHIEF YOU'RE STILL HERE. SO I HAD SOME QUESTIONS ABOUT WELL MICHAEL, WHY YOU'RE STILL HERE. SO PLAY THROUGH THE TYPE CALL YOU WOULD EXPECT FROM SOMEONE VIOLATING A CODE THAT CURRENTLY EXISTS. IT WOULD BE NOISE OR PARKING. TRASH. TRASH LIGHTING, MAYBE LIGHTING. WHAT ELSE? THOSE ARE TYPICAL. OKAY, SO, CHIEF, I'M GLAD YOU'RE HERE. COULD YOU ADDRESS THE NUMBER OF CALLS OR NOT? DOWN TO A POINT, BUT HOW DOES YOUR DEPARTMENT DEAL WITH NOISE, TRASH, LIGHTING? PARKING TYPE TYPE THINGS YOU WANT TO START? WE'RE PROBABLY DEALING WITH SHORT TERM RENTALS NOW. WE RESPOND TO THOSE TYPES OF CALLS 24 HOURS OR MAINLY IN THE NIGHT TIME HOURS. BUT EVERY DAY OF THE WEEK WE ALWAYS TRY TO SEEK VOLUNTARY COMPLIANCE. HEY, YOUR MUSIC'S TOO LOUD. THE BACK PORCH LIGHTS BLINDING THE NEIGHBORS. WOULD YOU TURN IT OUT? I WOULD SAY 90% OF THE TIME WE'RE MET WITH COMPLIANCE. SOMETIMES WE RETURN THAT SAME NIGHT ON THE SAME CALL, AND THAT'S WHEN A CITATION WOULD BE ISSUED AND THAT CITATION WOULD BE ISSUED TO WHO, WHO, WHOEVER'S IN CARE WHO'S IN CONTROL OF THE HOUSE. SO MY POINT WOULD BE WE WOULDN'T KNOW THAT IT'S A SHORT TERM RENTAL UNLESS THEY TOLD US, OKAY. SO WE WOULD KNOCK ON THE DOOR AND ASK FOR THE ADULT. AND ONCE WE GOT AN ADULT, THAT'S GOOD ENOUGH FOR US BECAUSE THAT'S WHO WE'RE GOING TO ASK FOR COMPLIANCE FROM. AND YOU WOULD HOPE IT WOULD BE THE PERSON THAT WOULD IS RESPONSIBLE OR FOR THAT HOME AT THAT TIME, YOU WOULD HOPE WE VIA THE REGISTRATION PROGRAM, IF APPROVED BY THE CITY COUNCIL, THE POLICE OFFICERS WOULD HAVE ACCESS TO A DASHBOARD WHERE THEY COULD GET THAT CONTACT INFORMATION SO THEY COULD TALK TO SOMEBODY IN CARE OR CUSTODY OF THE PROPERTY THERE AT THAT MOMENT, OR IF THEY'RE NOT COMPLYING OR THEY CAN'T GET ANY TRACTION, THEY CAN PULL UP THAT 24 HOUR CONTACT INFORMATION AND SAY, HEY, WE VISITED THE PROPERTY. YOU'RE NOT THE PEOPLE THERE ON SITE ARE NOT RESPONDING. WE NEED YOU TO ADDRESS THIS ISSUE ASAP. JUST ANOTHER RESOURCE, I GUESS. THAT'S MY THAT'S MY 180 FROM EVERYONE THAT SAID ANYTHING. I DON'T SEE THAT REALLY WORKING THAT WAY. IF I'M ON A HOME AND YOU'RE CALLING ME AT 115 IN THE MORNING, THE PERSON I'VE RENTED IT TO IS MAKING NOISE. WHAT? WHAT CAN I DO? I'VE GOT AN AGREEMENT WITH VRBO OR SOMEONE TO ADDRESS THAT. I'M NOT FOLLOWING THE LOGIC. AND YOU'RE CALLING ME AT 115 IN THE MORNING THAT MY RENTAL IS GOT A PROBLEM? I WASN'T PREPARED TO TALK ABOUT THIS. I JUST SO HAPPENED TO OWN A SHORT TERM RENTAL IN ANOTHER STATE. SO THE PEOPLE WHO RENT MY HOME ARE THE ONES WHO GET CONTACTED BY THE POLICE AND PAY THE FINES. I MAY GET CALLED, BUT THERE'S VERY LITTLE I CAN DO OTHER THAN NOT RENTING TO THOSE PEOPLE ANYMORE. 
          OKAY. VERY GOOD. SO NOW WE HAVE FIRST HAND KNOWLEDGE RIGHT THERE. GOT IT. SO I'LL BE TALKING TO HIM OFFLINE ABOUT ALL THE BAD THINGS HE'S DOING. ANY OTHER COMMENTS? QUESTIONS? NO, I'LL JUST GO BACK TO THE FEE. I DO AGREE WITH PATRICK. THERE SHOULD BE WE SHOULD LOOK AT A REGISTRATION FEE BUT ALSO A NON REGISTRATION FEE. I MEAN IT'S I JUST WENT ON VRBO RIGHT NOW AND JUST NARROWED IT DOWN JUST TO MCKINNEY ONLY NOT OUTSIDE THE RANGE. AND THERE'S 103 PROPERTIES IN MCKINNEY. WE CAN SEND THEM KNOW WE HAVE THE ADDRESSES. WE CAN GO AHEAD AND SAY YOU ARE YOU KNOW, WE CAN HAVE AN ORDINANCE SAY YOU HAVE 30 DAYS TO REGISTER WITH MCKINNEY BECAUSE YOU'RE LISTING ON THIS SITE AS A VR, YOU'RE LISTED AS A, YOU KNOW, ONE OF THESE SHORT TERM RENTALS CHALLENGE THOSE VRBOS AND AIRBNBS DON'T GIVE YOU THE PHYSICAL ADDRESS UNTIL YOU ACTUALLY REGISTER OR YOU RESERVE A ROOM NIGHT. SO WE DON'T ACTUALLY KNOW. NOW, WE COULD INVESTIGATE VIA THE PHOTOS AND TRY AND NARROW IT DOWN, BUT WE WON'T KNOW THE PHYSICAL ADDRESS OF THE PROPERTY UNTIL WE BOOK A NIGHT WITH THEM. IT SEEMS LIKE WITH AI THOUGH, WE COULD LOAD THESE PICTURES IN THERE AND GET AN ADDRESS. WE EXPLORED IT HONESTLY. WE WE PLAYED AROUND UPSTAIRS TRYING TO CREATE AN AGENT TO GO SCOUR THE WEBSITES AND GET US THE ADDRESSES, BUT SUFFICE IT TO SAY, WE WERE NOT SUCCESSFUL. OKAY, PROBABLY OVER THE PAST 24 MONTHS, MAYBE A DOZEN EMAIL COMPLAINTS FROM RESIDENTS OF THE TWO DEVELOPMENTS THAT I MENTIONED SAYING, WHAT CAN WE DO? AND I SAY, GO TO THE POLICE, GO TO OUR CODE DEPARTMENT, DO THIS AND THAT. SO THE THE COMPLAINTS I'VE GOT ARE ONE WAS TRASH A HANDFUL OF PARKING AND THEN THE MAJORITY MAYBE MAYBE A PLURALITY OF NOISE THAT WAS COMING FROM THEM. THE SENSE IS, IS THAT THEY, THEY THESE ARE 
          [00:30:01]
RELATIVELY LARGE HOMES THAT ARE RENTED FOR, YOU KNOW, SOME KIND OF MAYBE BIRTHDAY ANNIVERSARY PARTY, SOMETHING LIKE THAT. SO THE FOLKS THAT STAY THERE SOMETIMES DON'T TAKE A PRIDE IN OWNERSHIP OR STEWARDSHIP OF IT. AND SO I'M GRATEFUL FOR PD GOING OUT THERE AND CODE GOING OUT THERE. BUT REGISTERING THE PROPERTY I THINK, WOULD BE A GOOD PIECE OF INFORMATION FOR US TO HAVE. MISTER MAYOR, COUNCIL MEMBER CLAUDIA, TO YOUR TO YOUR COMMENT, THIS IS SOMETHING THE COUNCIL MIGHT WANT TO PUT ON ITS LEGISLATIVE PROGRAM FOR NEXT SESSION, BECAUSE THIS IS SOMETHING THE LEGISLATURE, YOU KNOW, LOOKS AT EACH SESSION, TYPICALLY AND HERETOFORE, THEY'VE LOOKED AT IT AS A PROPERTY RIGHTS ISSUE. BUT THE MORE INFORMATION THAT THEY COULD RECEIVE ABOUT PROBLEMS, THEY MIGHT BE INCLINED TO ADD SOME AUTHORITY TO THE CITY'S. YEAH, JUST A THOUGHT. ANYONE ELSE? THANK YOU, MR. HAUSER. WE JUST RECEIVING, AND THEN WE'RE ACTING IN OUR REGULAR MEETING, RIGHT? YES, SIR. OKAY. ANYTHING ELSE, MR. 
          [EXECUTIVE SESSION]
QUINT? NO, SIR. THANK YOU VERY MUCH. THAT CONCLUDES OUR AGENDA, MR. HAUSER, DO WE HAVE ANY EXECUTIVE SESSION? YES, SIR. WE DO. ALL RIGHT. THAT BEING THE CASE, AND IN ACCORDANCE WITH TEXAS GOVERNMENT CODE 551.071 2071A AND 551.087, WE WILL ADJOURN INTO EXECUTIVE SESSION. 
          IT IS 405. WE WILL BE BACK BEFORE 5:00. WE HAVE ANOTHER MEETING WE'RE WAITING ON THE MAYE CAN DO IT WITH THE MAYOR PRO TEM. OKAY, MADAM MAYOR PRO TEM, I MOVE, WE ADJOURN THE WORK SESSION. I'LL SECOND THAT.
* This transcript was compiled from uncorrected Closed Captioning.