Announcements:
Mayor Patrick McNulty announced Cameron County’s level of emergency for Covid rose from a level two to three out of five. McNulty also commended Parks Manager Debbie Huffman for the excellent execution of the 4th of July Walking Beach Parade.
Consent Agenda
What happened: A motion to approve the consent agenda with the exclusion of item 4.4 due to a question from Councilwoman Eva-Jean Dalton.
Motion passed.
A second motion to approve agenda item 4.4 and directed Chief Financial Officer (CFO) Rodrigo Gimenez to maintain the current tax rate, and current property valuations that would create no new revenue for the city.
Motion passed.
Why it matters: Concerned, Dalton checked to question if the tax rate would rise. “I just want to make sure that they are not raising the tax rate.”
What now: The Council agreed to keep the tax rate the same during their budget workshop meeting on June 22. McNulty explained that Chief Financial Officer Rodrigo Gimenez must first calculate the no-new-revenue rate and the voter approval tax rate.
Regular Agenda
What happened: A motion to approve the 2022–23 annual budget for the South Padre Island Economic Development Corporation (EDC).
Motion passed.
Why it matters: Executive Director Darla Lapeyre announced new budget proposals for Sand Dollars for Success, business classes for business owners, the deep-water marina, and sponsoring more community events. “The board felt it was important to be more involved,” said Lapeyre.
5.2
What happened: Discussion regarding short-term rental registrations and compliance required by Chapter 11 Article 7 of the city’s code of ordinances.
After discussion and recommendations from the public, McNulty closed the item.
Why it matters: Many issues surround short-term vacation rentals on SPI, ranging from noise complaints from residents living next to ongoing parties, occupancy, unregistered property owners not collecting or remitting the 17% tax, or having a 24/7 one hour contact.
In the agenda packet, an article from Mesquite, Texas, appears to show similar problems to the current issues SPI faces on short-term vacation rentals. Councilwoman Eva-Jean Dalton warned of comparing non-resort areas to SPI, although McNulty added some cases apply to everybody. “We need to look at apples to apples, not apples to oranges,” said Dalton.
Board members from the Vacation Rental Management Association of South Padre Island (VRMA-SPI) contributed to the discussion on short-term rentals. VRM Owner and Vice-Chair of the Conventions and Visitors Advisory Board for the City, Tom Goodman, read aloud a letter put together by the association that he sent previously to the Council. Goodman said the board is offering help to the city find solutions and prevent problems, but also noted after requesting police complaints that a separate category for vacation rental companies is needed. “We understand the problems. We want to be a part of the solution. We are just simply asking for a place at the table.”
Currently, penalties for an offense is a $500 fine per day. VRMA-SPI board member, and rental property owner, Will Greenwood addressed the lack of enforcement may be the culprit. “The current vacation short-term rental ordinance was carefully thought-out years ago by committee members in 2015 and 2016. It’s a good ordinance.”
There doesn’t appear to be enforcement of rental property registration. After making calls to vacation rental property owners, Greenwood concluded that no one had ever gotten a fine. “Holding owners accountable for problem rental properties is the biggest we have in the city today. “
McNulty pointed out a significant issue: some complaints do not get filed due to ruining the tourism experience, and many don’t follow through with the complaint. “It’s like you’re calling the police to show up but then saying, ‘I don’t want to be involved afterward,’” said McNulty.
Before closing, Greenwood offered recommendations to the Council. “Don’t be scared to fine people. If we have bad actors out there, we want them fined. I think these residents want them fined. $500 per day is a big fine.”
He also recommends forming a short-term rental community to analyze the current ordinance and work with city staff for improvements. He thought it was too early in the game to start discussing occupancy. “I feel like that’s just the most logical move forward.”
5.3
What happened: Discussion and possible action regarding noise complaints and compliance required by chap.
After discussion and comments from the public, McNulty closed the item.
Why it matters: Resident Stephanie Wilson advised the Council from her experience reporting noise complaints that she’s never been asked to sign a complaint.
Goodman also added his VRMA-SPI board would add this item for discussions and recommendation since it is a problem for many, not just short-term vacation rentals.
5.5
What happened: Motion to approve the budget amendment from the general fund and the excess reserves for $570,222 to purchase city vehicles for various departments.
Why it matters: The budget amendment will cover new dump trucks, SPI-PD motorcycles, beach patrol ATVs, and more.
What now: The expected arrival for the vehicles is in 2023.
5.7
What happened: A motion to approve the amended McAllen Parade Sponsorship agreement.
Motion passed.
Why it matters: This matter was tabled in the past to allow new CVB Director Blake Henry to overlook the agreement. “This gives SPI the opportunity to present in other cities,” says Henry.
