Looking to regulate special-use permits for short-term rentals, Lakeway City Council signed off on a set of amendments to the city’s short-term rental ordinance at its monthly meeting Monday night.

The amendments made changes to several term definitions as well as the process of the issuance, renewal and revocation of permits.

As amended, short-term rentals, which used to refer to stays between two and 27 days, now include one-day stays as well.

Additionally, the ordinance changed the language “valid complaint” to “substantiated complaint.” To be acknowledged as a substantiated complaint, the complaint must be submitted in a written form to the building and development services department or code enforcement, which must notify the permit owner of such complaint. The complained act must also be validated as a violation of city ordinance or state law.

The amendments also simplified the renewal process for permit owners. City code officials can now directly approve the renewal for permit owners with no more than two substantiated complaints since the last time their permit was issued, saving them the trouble of going through the city’s Zoning and Planning Commission and the City Council.

Those with more than two substantiated complaints, however, must go through the whole process, including submitting their application for renewal to the ZAPCO for review, participating in a public hearing and eventually receiving a recommendation from the council.

The city also strengthened the regulations over the issuance of new special-use permits. In addition to the general criteria for a special-use permit application, applicants must provide:

  • the complete legal description and location of the property;

  • proof of ownership, identification and contact information of the person responsible;

  • a site plan, including the property size, number of rooms and parking spaces;

  • proof of a valid and current registration, license or approval under the hotel occupancy tax program and the

  • proof of payment of hotel occupancy taxes as due;

  • proof of property insurance, and

  • any additional information the city manager determines necessary.


Additionally, the city also applied more specific rules regarding the revocation of special-use permits.

With written notice to the permit owner prior to revocation, the city manager and assistant city manager hold the power to revoke any special-use permit in the following circumstances:

  • The permit owner has received more than two notices of violation or substantiated complaints within two calendar years for violation of special-use or city ordinances;

  • Maintenance or operation of the property poses detrimental impacts to public health or safety;

  • Submission of false, misleading or expired information to the city;

  • Required insurance policy is canceled or not renewed;

  • Permit owner does not pay taxes as due, or

  • The short-term rental is sold or transferred.


Mayor Pro Tem Ron Massa agreed with the limit on substantial complaints a permit owner can receive before facing the possibility of getting the permit revoked.

“Three strikes, you are out,” Massa said.

City Council declares vacancy due to former council member’s resignation

Apart from approving the short-term rentals ordinance, Lakeway City Council also officially declared a vacancy on the council and accepted the resignation of former Council Member Jean Hennagin, who made the announcement to step down June 27.

Successor to Deer Management Committee triggered debate over deer population control

The council passed several ordinances Monday, including scheduling a special election for Nov. 6 for two City Council seats, and replacing the original Deer Management Committee with the new Wildlife Advisory Committee while adding two alternate members.

Although not related to the establishment of the Lakeway Wildlife Advisory Committee itself, a debate between citizens was triggered over the city’s current deer population control method, the Trap, Transport and Process Program. The program donates deer meat to nonprofit charities, city spokesperson Devin Monk said.

Rita Cross, president of a local nonprofit organization named Citizen Advocates for Animals, came before the council and asked the city to suspend the program for a year to wait on further surveys on alternative methods.

Local resident George Blume, however, spoke against Cross and argued that putting the program on pause would bring about a spike in the city’s deer population.

Contracts awarded to improve the Lakeway Swim Center lap pool

The City Council awarded contracts to firms to respectively replaster the Lakeway Swim Center lap pool and resurface the concrete pool deck. The projects are funded through the city’s Capital Reserve Funds.

The estimated cost to re-plaster the top and bottom layers of the entire pool is $51,166.10, according to city staff. The plaster is estimated to last five years, city staff said, which is typical in the industry.

The concrete pool deck could last as long as three years, city staff said. The pool is expected to close for improvements starting Aug. 15 and reopen before late September, according to city staff.