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City council members directed staff to extend a garage conversion amnesty program by six months after complaints about inaccurate data that incorrectly flagged homes as having unpermitted conversions.
Council members gave the direction during a Jan. 20 study session that covered multiple city issues.
The program, launched in July 2024 and set to expire Jan. 31, allows homeowners with unpermitted garage conversions to bring structures into compliance through a simplified inspection process costing $100.
Community Services Director Sam Chavez reported staff has validated 698 of 1,393 properties initially identified through visual surveys as potentially having converted garages, about 50% of the original list.
Several council members said the property lists distributed to their districts included errors. Council member Lupe Gonzalez said her mother's home appeared on the list despite having proper permits on file.
"I immediately called a ton of my friends that were on this list, and they had similar stories," Gonzalez said. "So I was already very frustrated that I thought everything had been looked at, everything was pulled."
Council Member Tina Bennett-Burton said she fielded calls from concerned residents who had purchased homes with existing conversions and were unaware of compliance issues.
Deputy Director of Community Services Scott Webster clarified that inspections focus solely on life safety issues in the converted space: exposed wiring, structural concerns, smoke detectors and emergency exits. Inspectors do not examine the entire home.
"I tell every citizen when I walk in the home, I don't want to see the rest of your home," Webster said. "Take me to the garage and let me observe it."
Council directed staff to develop clearer communication materials in English and Spanish and bring back an ordinance amendment for formal approval. Staff will also return with enforcement recommendations after the extended deadline.
In other business, council members supported creating an all-day fall festival centered around a 5K race tentatively planned for Oct. 10 at Historical Park.
Parks and Recreation Director Robert Diaz said the event would consolidate several October activities, including haunted houses and Halloween in the Park.
"We don't have an all-day festival anymore with bluegrass not being around," Diaz said. "This would give us activities going on from the run all the way to the end of the day."
The race would cost an estimated $67,000 with potential revenue of $22,500 from approximately 500 participants. Council members pressed for sponsorships to offset the $44,500 projected shortfall.
Bennett-Burton advocated for including Bee Street in the race route to showcase local businesses. "If we're going to bring people in and this is a destination moment, why are we not putting them in a destination moment to see what we have?" she said.
Finance Director Jay Patel reported the city's credit card processing fees have increased from $450,000 in fiscal year 2023 to about $1.2 million in fiscal year 2025, with costs projected to continue rising in 2026.
The city implemented a 2.5% convenience fee on utility bill credit card payments in January 2025, expecting to generate $200,000 annually. However, the system cannot apply fees to autopay customers, about 30% of credit card transactions, resulting in only $91,000 collected.
Patel proposed moving fee collection to the payment processor, which would charge 3.5% across all transactions. Staff would manually apply a 1% rebate to maintain the council's original 2.5% intent.
Council Member David Reid questioned whether the increase was warranted, while Council Member Elizabeth Villafranca expressed concern about additional costs following recent water and sewer rate increases.
"I don't think $40,000 is really, in the scope of things, a lot of money," Villafranca said.
Council directed staff to launch an education campaign about alternative payment methods, such as e-checks, which carry no fees, before implementing any rate increase.
Public Works Director Ray Silva Reyes presented a 20-year water and wastewater infrastructure replacement plan prioritizing aging cast iron, clay and asbestos pipes throughout the city.
"We have some aging infrastructure that is 60-plus years old," Silva Reyes said. "Their useful lives has ended, and we need to start replacing them."
The first year includes three phases totaling approximately $12.8 million in water and wastewater line replacements. New PVC pipes have a 100-year life expectancy.
Tourism contractors Meredith Dowdy and Ann Stokes reported the city's 12 hotels generated $3.49 million in hotel occupancy tax revenue from more than 300,000 visitors in fiscal year 2024-25.
Major events included the UPA Pickleball World Championship, which generated nearly $16 million in economic impact, and the Korean Olympics, which brought 8,000 people to city facilities.
The next Farmers Branch City Council meeting is scheduled for Tuesday, Feb. 3.
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