HomeMy WebLinkAboutIR 083 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-083
To the Mayor and Members of the City Council June 7, 2022
Page 1 of 2
i
i7 Y
SUBJECT: UPDATE ON SHORT-TERM RENTALS
r6 IV JAL
Yg7'3
In an Informal Report dated March 1, 2022, staff provided general information on the Hotel
Occupancy Tax (HOT) collection process for STRs and outlined a phased approach to identify
STRs in Fort Worth and their operating characteristics and to develop recommendations and
options for STR regulation. This report provides an update on those efforts.
DATA COLLECTION
In the first step of the phased approach, an inter-departmental team led by Financial
Management Services developed a scope of work and issued a Request for Qualifications (RFQ)
for STR identification and data mining services on March 15, 2022. The team received six
proposals in April and interviewed three firms in May. The team selected Deckard Technologies
Inc. to complete the initial STR identification work and is finalizing the contract with Law. Deckard
will likely have 30 days from the contract execution date to submit preliminary findings and 60
days to submit a final report to the City.
POLICY GOALS
In parallel, the team has continued to work on potential goals and regulation options for City
Council discussion after receiving the data mining report. The following draft goals have
been developed based on benchmarking with similar cities in Texas and the U.S. and on the
National League of Cities STR guide:
1 . Preserve residential quality of neighborhoods and protect from commercial
encroachment
2. Ensure health and safety of guests and residents
3. Support tourism in a balanced way
4. Preserve residential housing supply
5. Collect Hotel Occupancy Tax (HOT) from legal STRs
6. Minimize impact on staff and recover costs for code enforcement
REGISTRATION
The next phase of this project will involve the issuance of a Request for Proposals (RFP) later in
June for a third-party service to support the registration and administration of legal STRs. The
scope of services will include but not be limited to ongoing identification, registration, compliance
monitoring, HOT collection, customer service, and possibly auditing of STRs. In order to
maximize efficiency and economies of scale, the third-party service may be scaled up to
incorporate the City's 200+ traditional hotels and potentially other significant self-reported
revenue sources. The team anticipates that the registration component would become effective in
early FY23, with fees sufficient to cover the cost of the registration platform and code
enforcement.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-083
To the Mayor and Members of the City Council June 7, 2022
Page 2 of 2
i
i7 Y
SUBJECT: UPDATE ON SHORT-TERM RENTALS
r6 rn
Yg7'3
OPERATING STANDARDS AND ZONING OPTIONS
After receiving and analyzing the STIR data, staff intends to brief the City Council in August
on proposed operating standards for legal STRs and on potential zoning options for STRs
illegally operating in residential zoning districts.
If you have any questions, please contact Daniel Leal, Assistant Director, Development
Services Department 817-392-6214, or Kiphani Allen, Financial Services Manager, Financial
Services Management 817-392-8980.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS