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Agenda_2017_12_15_Meeting(423) (10)Finance and Citywide Projects Committee Meeting City Hall, Commission Chambers, 3rd Floor, 1700 Convention Center Drive December 15, 2017 - 2:30 PM Commissioner Ricky Arriola, Chair Commissioner Mark Samuelian, Vice-Chair Commissioner Micky Steinberg, Member Commissioner John Elizabeth Aleman, Alternate Visit us at www.miamibeachfl.gov for agendas and video streami ng of City Commi ssion Committee Meeti ngs. OLD B U SI NES S 1.UPDAT E O N ENERGOV PERM I T T ING SYST EM April 26, 2017 - C 7 M Information Tec hnology 2.DEBRI S REM OVAL CO NT RACT S - HURRI CANE I R M A P ublic Works 3.DISCUSSIO N R EGARDI NG A PR OPOSAL TO BUI LD A PUBLIC BAYWALK FROM 10-12 ST R EET S AND A PUBLI C M ARINA July 26, 2017 - C 4 N S ponsored by C ommissioner Arriola P lanning/E nvironment & Sustainability 4.DISCUSSIO N TO CONSIDER AM EN DING O UR C IT Y EM PLO YEE LEAVE ORDI NANCE FO R T IME DONAT IO NS FO R EM PLO YEES C ARING FO R ILL FAM ILY MEM BERS July 26, 2017 - C 4K S ponsored by Vice-Mayor Alemán Human R esources N EW B U SI NES S 5.DISCUSSIO N R EGARDI NG T H E USE OF T HE AU D ITORIUM AT T HE SO UT H SHO RE COMMUNI T Y CENT ER, LO CAT ED AT 833 6TH ST R EET, BY SO UT H FLO RIDA SENI ORS IN ACT I ON, I NC., FOR A PERIO D TO RUN COT ERM I N OUS WI T H I T S EXIST ING LEASE AGREEMENT, CO MMENCING FEBRUARY 1, 2018 AN D ENDING SEPT EM BER 30, 2019 S ponsored by Vice-Mayor Alemán Tourism, C ulture, and E conomic D evelopment 6.DISCUSSIO N R EGARDI NG T H E T R ACKI NG O F TOTAL SHO RT T ERM RENTAL VI OLAT IO NS IMPOSED AGAI N ST PROPERT Y OWNERS O ctober 31, 2017- C 4 A S ponsored by Vice-Mayor Alemán Finance/C ode C ompliance D EFE R R ED I TE MS Page 1 of 17 7.DISCUSSIO N R EGARDI NG SU STAINABLE FUNDI N G SOURCES FOR EDUCAT IO NAL ENHANCEM ENT S IN MI AM I BEAC H PUBLIC SCH OO LS March 1, 2017 - R 9 F S ponsored by Vice-Mayor Alemán O rganizational D evelopment P erformance Initiatives Status: Deferred to the February 23, 2018 FCWPC meeting, pending research on initiatives. 8.DISCUSSIO N R EGARDI NG T H E REQUEST BY T H E HISPANI C AFFAIRS COM M IT T EE FO R FUNDING TO BE PROPERLY ALLOCAT ED FOR T H E RECO M M ENDED PROG RAM M ING AS PART OF T HE BUDG ET PROCESS FOR FISCAL YEAR 2017-2018 S eptember 25, 2017 - C 4 Q S ponsored by C ommissioner R os en Gonzalez P arks and R ec reation Status: Deferred to the January 19, 2018 FCWPC meeting, per the sponsor's request. 9.DISCUSSIO N R EGARDI NG A WAT ERLESS CAR WASH RFP AT G ARAGES O ctober 18, 2017 - C 4 E P arking Status: Deferred to the May 18, 2018 FCWPC meeting to report on success of the pilot program. 10.DISCUSSIO N R EGARDI NG T H E FEES CHARG ED TO DEVELO PER S TO APPEAR BEFORE T HE CIT Y'S LAND U SE BO ARDS April 26, 2017 - C 4 F S ponsored by Vice-Mayor Alemán P lanning Status: Deferred to the January 19, 2018 FCWPC meeting, pending additional research. 11.DISCUSSIO N R EGARDI NG T H E NO RT H BEACH TO WN CENT ER R EDEVELOPM ENT PRO PO SAL, I N VOLVING CIT Y-O WN ED PARKI NG LO T S, MADE BY N ORT H BEACH TOWN CENT ER DEVELO PM ENT, LLC, AN AFFILIAT E O F PACIFIC START CAPITAL, LLC May 17, 2017 - C 4 C S ponsored by C ommissioner Arriola Tourism, C ulture, and E conomic D evelopment Status: Deferred to the January 19, 2018 FCWPC meeting, pending further discussions with the developer. 12.DISCUSSIO N R EGARDI NG CO N SI DERING T HE IM PLEM ENTAT I ON O F A ST UDENT LO AN REDUCT IO N PRO GRAM FOR CI T Y EMPLOYEES, TO HELP PAY O FF T HEIR ST UDENT D EBT FAST ER July 26, 2017 - C 4 I S ponsored by C ommissioner R os en Gonzalez Human R esources Status: Deferred to the January 19, 2018 FCWPC meeting, pending draft procedure for student loan forgiveness. 13.DISCUSSIO N R EGARDI NG T H E CO ST S RELAT ED TO HAVI NG MI AM I BEACH CO M M IT TO ENSURING T HAT ALL G OVERN M ENT BUI LDING S WI LL BE POWER ED BY 100% REN EWABLE ELECT RI CIT Y S ponsored by C ommissioner R os en Gonzalez E nvironment & S ustainability/P roperty Management Status: Deferred to the January 19, 2018 FCWPC meeting, pending direction from the Sustainability and Resiliency Committee. 14.DISCUSSIO N TO CONSIDER R EVI SING T HE “SPECI AL EVENT S R EQ U IREMENT S AND GUIDELI NES,” B Y AM ENDI NG T H E FOLLO WING SEC T IO NS: “M I N IM UM REQ UIREM ENT S,” “EXT ERNAL REVIEW PROCED U R E,” “BOO KING PO LICY,” “USE O F PUBLIC PROPERT Y,” “SPECI AL EVENT FEE SCHEDULE, AND “SPECI AL EVENT CLASS M AT RIX,” HEREBY PERM IT T I NG AN D REST RICT ING FURT HER USES ON PUBLI C PRO PERT Y AND REC ONCILING SPECI AL EVENT FEES TO MAT C H RECENT INCREASES ASSO CIAT ED WIT H OT HER PU BLIC Page 2 of 17 RENTAL USES O ctober 18, 2017 - C 4 F Tourism, C ulture, and E conomic D evelopment Status: Deferred to the January 19, 2018 FCWPC meeting, pending outreach and changes to the policy. 15.DISCUSSIO N R EGARDI NG AN EXT ENSIO N TO T H E CIT Y’S LEASE AGREEM ENT S FO R AFFORDABLE ELDERLY HO USI N G AT COUNCI L TO WERS SOUT H, LOCAT ED AT 533 C OLLINS AVENUE, AND CO UNCI L TO WERS N ORT H, LO CAT ED AT 1040 CO LLINS AVENUE, FOR A PERIO D OF FI FT Y (50) YEARS, CO M M ENCI N G JULY 9, 2026 AN D ENDING JULY 8, 2076 O ctober 18, 2017 - C 4 H S ponsored by C ommissioner Arriola Tourism, C ulture, and E conomic D evelopment Status: Deferred to the January 19, 2018 FCWPC meeting, pending negotiations. Page 3 of 17 O L D B U S IN E S S 1. COMMIT T EE MEMORANDUM T O: Finance and Citywide Projects Committee Members F R OM:Jimmy L. Morales, City Manager D AT E: December 15, 2017 SUB J ECT:UP DAT E ON E N ERG OV PE RMI T T I NG S Y STE M ANALY S I S: Discussion at Committee. Page 4 of 17 O L D B U S IN E S S 2. COMMIT T EE MEMORANDUM T O: Finance and Citywide Projects Committee Members F R OM:Jimmy L. Morales, City Manager D AT E: December 15, 2017 SUB J ECT:DE BRI S RE M OVAL CON T R ACT S - H U R R I C A N E I R MA ANALY S I S: Discussion at Committee. Page 5 of 17 O L D B U S IN E S S 3. COMMIT T EE MEMORANDUM T O: Finance and Citywide Projects Committee Members F R OM:Jimmy L. Morales, City Manager D AT E: December 15, 2017 SUB J ECT:DI S CUSSI O N RE GARDI NG A PROPOS A L TO BUI LD A P UBL I C B AY WALK FROM 10-12 S T R EE T S AND A P UBL I C M A R I N A ANALY S I S: Discussion at Committee. Page 6 of 17 O L D B U S IN E S S 4. COMMIT T EE MEMORANDUM T O: Finance and Citywide Projects Committee Members F R OM:Jimmy L. Morales, City Manager D AT E: December 15, 2017 SUB J ECT:DI S CUSSI O N TO C ONS I D ER AMENDI NG O U R CI TY E MPLOY E E L EAV E OR DI NANCE FO R TI ME DONAT I ONS F OR EMP L OY E ES CAR I N G F OR I L L FA MI LY ME M B ERS HI S TO RY: On August 31, 2017, this item was bought to the Finance and City Wide Projects Committee (“F C WPC”) as a discussion item to assist employees who, because of long term personal illness, have exhausted their benefits and would otherwise be subject to severe loss of income and benefits during a continuing absence from work. At the direction of the F C WPC members, this benefit would also be extended to the employee’s immediate family member. At the FCWP C meeting, it was recommended that the Human Resources staff draft a policy to administer a Sick Leave Bank for this extended benefit. As reported previously, this is a very common benefit among other cities, counties and governmental entities. We received existing Sick Leave Bank policies from multiple agencies which were useful in the drafting of a Sick Leave Bank Administrative Procedure for City of Miami Beach employees. T he Unclassified Leave Ordinance, Section 1613, Donation of Annual and Sick Leave, allows for donations “in those instances where a permanent full-time employee is affected by a non-job related illness which causes the total depletion of their annual leave and sick leave, other city employees may donate annual and/or sick time on a pro-rata basis to that particular employee’s leave balance.” Currently, the Human Resources department manages the request for leave donations. However, establishing a Sick Leave Bank Administrative Procedure that includes a Sick Leave Bank Committee will ensure that each request is handled based on established criteria in the procedure. T he Sick Leave Bank Administrative Procedure will include the following: City employees can voluntarily elect to be a part of the Sick Leave Bank by donating sick leave hours and receiving sick leave hours from the Sick Leave Bank. Leave contributed to the bank will not be returned unless the program is discontinued at which time the return would be predicated on a prorated basis. Sick leave hours are available for documented Family Medical Leave (“FML”) eligible illnesses or injuries of the employee or an Immediate Family Member, as certified by UNUM (the City’s FML and disability administrator). Page 7 of 17 T he Sick Leave Bank will be administered by the Human Resources Department Sick Leave Bank Committee. T he Sick Leave Bank is not intended to compensate any members for workers’ compensation injuries or illnesses. T he Sick Leave Bank is not intended to compensate nor shall it be used for maternity leave, elective surgery or drug/alcohol rehabilitation. A member of the Sick Leave Bank shall not be allowed to engage in any gainful occupation or other physical activities that may be detrimental to his/her recuperation. Each member of the Sick Leave Bank shall be entitled to receive a maximum of 240 hours for any one illness or injury, per fiscal year. T he hours received can be used consecutively, intermittently or in increments of a quarter hour (.25), as needed. Members of the Sick Leave Bank will be required to sign form acknowledging receipt and acceptance of the rules as set forth in this Administrative Procedure. T he draft Sick Leave Bank Administrative Procedure is attached for your review. CO N C L U SI ON: T his administration is recommending that the Sick Leave Bank Administrative Procedure be approved by the FCWP C for Unclassified and Others staff. As to employees in classifications governed by union contracts, implementation of this Administrative Procedure is contingent upon collective bargaining and approval by the unions; to the extent such approval is necessary AT TA C H MENTS: De scription Ty pe SICK LEAVE BANK ADMINISTRATIVE PROCEDURE Other Page 8 of 17 1 SICK LEAVE BANK ADMINISTRATIVE PROCEDURE PURPOSE It is the intent of the City of Miami Beach to establish a Sick Leave Bank for employees in the Unclassified and Others salary groups that wish to participate in the donation and distribution of leave following a serious personal or family illness or injury, once they have exhausted all appropriate leave available. Admission into the Sick Leave Bank will be during the annual benefit open enrollment period. The program will be administered by the Human Resources Department. DEFINITIONS Eligible Employee: City of Miami Beach full-time or part-time employees who meet the following conditions: 1) He/she has regular status with accrued leave greater than 96 hours for full-time and 50 hours for part-time. 2) He/she is eligible to accrue leave. 3) He/she has accrued more than one year’s sick leave that is available for the employee’s use on the day that the contribution to the Bank is to be made. 4) An employee who enters the Drop Retirement Plan shall no longer be a member of the Sick Leave Bank. Family and Medical Leave Act or “FML”: The Family and Medical Leave Act of 1993, 29 U.S.C. §2611 et. seq. FMLA is a labor law that entitles eligible employees to take unpaid, job-protected leave for specified family and medical reasons. Immediate Family Member: FMLA designates an immediate family member as a spouse, son, daughter, parent or next of kin relative, or a covered military service personnel who is recovering from a serious illness or injury sustained in the line of duty while on active duty. Sick Leave Bank Committee: The Sick Leave Bank Committee shall be made up of five (5) employees designated by the Human Resources Director to manage the Sick Leave Bank. The committee members shall have the authority to make rule changes when necessary to retain the solvency of the fund. They shall ascertain that the time is used by members solely for medically documented cases. They shall see that these rules are applied fairly and without discrimination. This Committee shall also review and make determinations regarding Hardship Leave Bank requests. Unum: Unum Life Insurance Company is responsible for managing the FML requests of all City employees. POLICY City employees can voluntarily elect to be a part of the Sick Leave Bank by donating sick leave hours and receiving sick leave hours from the Sick Leave Bank. Leave contributed to the bank will not be returned unless the program is discontinued at which time the return would be predicated on a prorated basis. Page 9 of 17 2 Sick leave hours are available for documented FML eligible illnesses or injuries of the employee or an Immediate Family Member, as certified by UNUM. The Sick Leave Bank will be administered by the Human Resources Department Sick Leave Bank Committee. The Sick Leave Bank is not intended to compensate any members for workers’ compensation injuries or illnesses. The Sick Leave Bank is not intended to compensate nor shall it be used for maternity leave, elective surgery or drug/alcohol rehabilitation. A member of the Sick Leave Bank shall not be allowed to engage in any gainful occupation or other physical activities that may be detrimental to his/her recuperation. Each member of the Sick Leave Bank shall be entitled to receive a maximum of 240 hours for any one illness or injury, per fiscal year. The hours received can be used consecutively, intermittently or in increments of a quarter hour (.25), as needed. Members of the Sick Leave Bank will be required to sign form acknowledging receipt and acceptance of the rules as set forth in this Administrative Procedure. PROCEDURE Establishment of Sick Leave Bank Bank 1. An initial contribution of eight (8) hours for full-time or four (4) hours of part-time leave to the Sick Leave Bank is required of all members. An employee may contribute a maximum of forty (40) hours of accumulated sick or vacation leave during a fiscal year. 2. When the Sick Leave Bank is reduced to the minimum balance established by the Committee, each member will be required to donate additional hours as may be necessary. Failure to donate additional hours when requested will result in membership termination. Members that are terminated may not re-enter the Sick Leave Bank until the next open enrollment period which will be August of each year with an October 1st effective date. Sick Leave Bank Benefits 1. A member may apply for leave after completing five (5) pay periods as a member of the Sick Leave Bank. 2. An application for benefits shall not be submitted for any illnesses or disability which existed prior to membership. 3. Requests shall not be submitted nor considered for short term benefits resulting from common ailments; e.g. flu, cold, doctor or dentist appointments, maternity leave or elective surgery. 4. Applicants must deplete all accrued leave benefits prior to requesting Sick Leave Bank benefits. 5. Applicants must have made application for any available Short and/or Long Term Disability benefits for which they may be eligible. Page 10 of 17 3 6. Sick Leave Bank benefits may be used to provide assistance to a member during the required elimination period prior to the start of Long Term Disability benefits. 7. Benefits may be extended upon the recommendation of the Sick Leave Bank Committee. 8. The recipient employee shall notify their Department Director or designee when the status of the qualifying illness or disability has improved and the employee is able to perform in at least a limited duty capacity. 9. Sick Leave Bank benefits will not be granted nor continued to a member in the event of one of the following: a. An employee is assigned to administrative leave or leave without pay. b. When light (limited) duty is offered to and refused by the member and physical ability is not a contentious point. c. An employee initiates litigation against the City relative to injury or illness, excluding petition for workers’ compensation benefits. d. When an employee is injured on duty and is subsequently denied disability leave benefits. Request for Sick Leave Bank Hours Applications for Sick Leave Bank hours shall be forwarded to the Sick Leave Bank Committee representative, with all of the required signatures and include the following: • Applicant’s name, department, division, and employee identification number • Commencement date of illness or injury, and • Confirmation email from Unum on certification of illness or injury. The Sick Leave Bank Committee will process the request as following: • Ensure all requirements are met and either approve or disapprove based on established criteria, and • Advise requesting employee when a request is not approved and provide explanation why the request was denied, and • Advise requesting employee when a request is approved. Decisions of the Sick Leave Bank Committee are final and not cannot be grieved or appealed . Approval or denial of Sick Leave Bank requests may be based upon :, but shall not be limited by the following factors: 1. The employee’s attendance record; 2. Length of service; 3. Depletion of all sick leave, vacation and other hours; 4. Medically diagnosed with an unexpected, critical illness, in which a poor prognosis or long-term recovery is determined; and 5. Whether the employee will be able to return to full-duty status. Once approved, allocations will be processed on an as-need basis throughout the course of the employee’s leave. Page 11 of 17 4 Since employees receiving Sick Leave Bank benefits are in pay status, they accrue annual and sick leave. These accruals should be charged to the employee as accrued, thus decreasing the amount of benefits paid from the Sick Leave Bank. An employee who separates from employment with the City with unused hours from the Sick Leave Bank is not paid for the unused hours. Unused hours shall be credited back to the Sick Leave Bank. If said employee is rehired, he/she will be considered a new employee and must accrue 96 hours for full- time or 50 hours for part-time before becoming eligible to join the Sick Leave Bank again. The Human Resources Director will investigate alleged abuse of the Sick Leave Bank program and if abuse is found, the participating employee(s) are not allowed to donate or receive hours and the employee(s) may be subject to disciplinary action. Individual Hardship Request: A Hardship Leave Bank may be established for an employee who is not a member of the Sick Leave Bank, for the employee’s own illness or injury or that of an Immediate Family Member. These requests will be considered Hardship Requests through a recommendation by the employee’s Department Director. All requests will be reviewed by the Sick Leave Bank Committee and subject to the same factors for approval as the Sick Leave Bank. In order to be eligible to receive a Hardship Leave donation, an employee must meet the criteria of an “Eligible Employee”, as described in the definition section of this administrative procedure. Once the Sick Leave Bank Committee approves the creation of a Hardship Leave bank, employees may donate accrued leave time to the designated employee with the hardship. Donations of Excess Hours to the Sick Leave Bank: Employees who have reached the annual maximum accrual of vacation leave may donate the leave to the Sick Leave Bank. Employees who are separating their service with the City may donate excess hours to the Sick Leave Bank. Any excess donated hours are non-refundable and will revert to the Sick Leave Bank. The donating employee understands and agrees that all donated hours shall reduce his/her final leave settlement. Collective Bargaining Contingency: As to employees in classifications governed by union contracts, implementation of this Administrative Procedure is contingent upon collective bargaining and approval by the unions,unions; to the extent such approval is necessary. Page 12 of 17 N E W B U S IN E S S 5. COMMIT T EE MEMORANDUM T O: Finance and Citywide Projects Committee Members F R OM:Jimmy L. Morales, City Manager D AT E: December 15, 2017 SUB J ECT:DI S CUSSI O N RE GARDI NG THE USE O F THE A U D I TORI UM AT T H E SO U T H S H ORE COMMUNI TY CE N T ER, LOCATE D AT 833 6T H STREET, B Y SO U T H FLORI DA S ENI O R S I N A C T I ON, I NC., FO R A PE R I OD TO RUN CO T ERMI NOU S WI TH I T S E XI S T I N G L EAS E AGREEME N T, C OMME N CI NG F E B R U A RY 1, 2018 AND ENDI N G SE PTE MB ER 30, 2019 HI S TO RY: T he City of M iami B each (“L andlord”) and S outh F lorida S eniors in Action, I nc, a F lorida not-for-profit corporation (“Tenant” or “S F S I A”), are parties to a lease agreement dated O ctober 4, 2016 (“L ease”) for the use of approximately 142 square feet of office space (“P remises”) on the 1st floor of the S outh S hore C ommunity C enter, located at 833 6th Street (“C enter”). T he L ease was for a period of approximately three (3) years, commencing S eptember 12, 2016 and ending S eptember 30, 2019. T he C enter provides space to various not-for-profit, community service organizations that provide assistance to the M iami B each community including Jewish C ommunity S ervices, M iami-Dade C ommunity Action Agency, L ittle H avana Activities and Nutrition C enters of D ade C ounty, S outh F lorida Workforce I nvestment B oard and L ighthouse C hurch of M iami B each. ANALY S I S: S F S I A uses it current office to provide various services to the elderly community in M iami B each (i.e., food distribution, healthcare eligibility, etc.). On November 20, 2017, the Administration met with S F S I A to discuss their request to also utilize the auditorium at the C enter. T he auditorium consists of approximately 2,792 square feet and is currently utilized by Jewish C ommunity S ervices for its senior meals program on M onday through F riday between 8:00AM to 2:00P M . T he auditorium is also utilized by Lighthouse C hurch of M iami Beach for church services on S undays between 9:00AM and 1:00P M . S F S I A has requested to utilize the auditorium to provide additional services to the elderly community in Miami B each for art classes (including singing practice by the M iami B each S enior C horus, which is managed by F lorida Opera P rima, and F lamenco activities) and E nglish classes (including computer literacy from time to time) on Monday through F riday between 2:00P M and 6:00P M . S F S I A would also like to provide immigration clinics, possibly in conjunction with M iami-Dade C ounty, on a quarterly basis between 10:00AM and 3:00P M . All of the classes and services would be provided at no cost. CO N C L U SI ON: T he Administration recommends in favor of allowing S F S I A to utilize the auditorium to provide classes and services to the elderly community in M iami B each. T he Administration seeks direction from the Finance and Page 13 of 17 C itywide P rojects C ommittee. Page 14 of 17 N E W B U S IN E S S 6. COMMIT T EE MEMORANDUM T O: Finance and Citywide Projects Committee Members F R OM:Jimmy L. Morales, City Manager D AT E: December 15, 2017 SUB J ECT:DI S CUSSI O N RE GARDI NG THE TRA C K I N G OF TOTA L SHORT T ERM R ENTAL V I OL AT I ON S I M PO SE D A GAI NST PRO PE R T Y OWNE RS AT TA C H MENTS: De scription Ty pe Memo Memo Page 15 of 17 City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMITTEE MEMORANDUM TO: Members of the Finance & City Wide Projects Committee FROM: Jimmy L. Morales, City Manager DATE: December 15, 2017 SUBJECT: TRACKING OF TOTAL SHORT TERM RENTAL FINES IMPOSED AGAINST PROPERTY OWNERS Background At the October 31, 2017 City of Miami Beach Commission meeting, a discussion item regarding the tracking of total short term rental violations and associated fines imposed against property owners was referred to the Finance and Citywide Projects Committee for discussion. Thereafter, the Commission, at its March 9, 2016 meeting, adopted Ordinance 2016-4001 and Ordinance 2016-4002 which amended Chapter 142-905(b)(5) and 142-1111(e) of the City Code respectively. These two Ordinances established the following fine structure for illegal short term violators: A. If the violation is the first violation: $20,000 B. If the violation is the second violation within the preceding 18 months: $40,000 C. If the violation is the third violation within the preceding 18 months: $60,000 D. If the violation is the fourth violation within the preceding 18 months: $80,000 E. If the violation is the fifth or greater violation within the preceding 18 months: $100,000 Additionally, at its March 9, 2016 meeting, the Commission established a procedure requiring the Director of the Code Compliance Department to remit a letter to the Miami-Dade Property Appraiser and the Miami-Dade Tax Collector, together with a copy of the Special Master Order adjudicating the violation, notifying these governmental agencies that a single-family residential property was used for transient rental or occupancy. This action may result in a homesteaded property owner losing their tax exemption status. Page 16 of 17 TRACKING OF TOTAL SHORT TERM RENTAL FINES IMPOSED AGAINST PROPERTY OWNERS Page 2 Analysis Since the inception of the City’s new fine structure for violators of the Short Term Rental Ordinance, the City’s Code Compliance Department has issued a total of 287 violations which equates to a total of $8.1 million in initial fines assessed. The violations are summarized below: The City Attorney’s Office resolved 19 of the 287 violations via Agreed Orders. These 19 violations had fines initially totaling $400,000 and were settled for $72,000. Additionally, 60 violations have been administratively closed out for the following reasons: • 54 – Nolle Prosequi • 3 – Closed by Action Memorandums • 3 – Issued in Error The remaining 208 violations equate to approximately $5.7 million dollars, which is summarized below: As of September 30, 2016, the City has collected $131,500 of the $5,693,500 in fines assessed. It is estimated that approximately $3.8 million in fines issued to Property Owners are likely to be recovered over time as a result of City liens issued and recorded against the subject properties engaged in short term rentals. These fines appear on lien statements (estoppel letters) as an amount owed to the City and are recovered at the time of sale or refinancing. Approximately $1.9 million of fines issued to non-property owners such as agents, third parties, tenants, or other are not likely to be recovered since there is no collateral to lien. JLM/JW Short Term Rental Violations Issued To:Violations Appealed Closed Fines Owed Fines Paid Notice Phase Property Owners 206 66 59 43 13 25 Agent/Third Party/Other 76 9 14 32 3 18 Tenant 5 1 0 2 0 2 Total 287 76 73 77 16 45 Short Term Rental Fines Fines Issued To: Amount Paid Appealed Fine Owed Notice Phase Property Owners 3,809,500 119,000 1,900,000 1,040,500 750,000 Agent/Third Party/Other 1,784,000 12,500 240,000 1,145,000 386,500 Tenants 100,000 - 20,000 40,000 40,000 Total 5,693,500 131,500 2,160,000 2,225,500 1,176,500 Page 17 of 17