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Resolution 2019-30811 RESOLUTION NO. 2019-30811 • A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATIONS OF THE FINANCE AND CITYWIDE PROJECTS COMMITTEE AND AUTHORIZING. A) THE ALLOCATION OF $500,000 OF SHORT-TERM RENTAL FINE COLLECTIONS IN TWO EQUAL ANNUAL AMOUNTS OF $250,000 FOR DOMESTIC VIOLENCE AND HOMELESS SERVICES IN THE CITY, AND B) THE ALLOCATION OF_A PORTION OF THE CITY'S INCREASED RESORT TAX-COLLECTIONS, STARTING IN FISCAL YEAR 2021/22, UP TO THE CITY'S PER CAPITA SHARE OF $1,976,215, AS AMENDED FOR POPULATION CHANGES AND CHANGES IN COLLECTIONS OF THE FOOD AND BEVERAGE TAX BY THE MIAMI-DADE COUNTY HOMELESS TRUST, TO FURTHER SUPPORT DOMESTIC VIOLENCE AND HOMELESS SERVICES IN OUR CITY, WITH FUNDS TO BE APPROPRIATED THROUGH THE ANNUAL BUDGET DEVELOPMENT PROCESS EACH YEAR. WHEREAS, the Mayor and Commission referred to the April 19, 2019 meeting of the Finance and Citywide Projects Committee (FCWPC) a discussion on a variety of items associated with homeless and domestic violence services including: 1. The need to monitor the State Legislative session for,possible preemption issues; 2. Approving a resolution urging the State to include additional funds in the State budget to address homelessness; and 3. Looking for other funding sources to support homeless and domestic violence efforts such as the one-time short-term rental fines collected by the City; and WHEREAS, as reported at the FCWPC meeting on April 19, 2019, the Administration has directed staff and the City's lobbying team to monitor the State Legislative session for possible preemption issues as well as the exploration of additional funds for homeless. and domestic violence issues within the State budget process; and WHEREAS, the Miami-Dade Homeless Trust (Homeless Trust) receives approximately $57,762,000 from Miami-Dade County Food and Beverage Tax collections that support domestic violence and homeless services countywide; and WHEREAS, based on a countywide population of 2,743,095 (Source: 2017 MDC CAFR), Homeless Trust collections amount to approximately $2.1.50 per capita; and WHEREAS, while the bulk of funds collected by the Homeless Trust are expended to support efforts to address homelessness, a portionof funds are committed to supporting the efforts of the Domestic Violence Oversight Board. Fifteen percent (15%) of the current Food and Beverage Tax collections are earmarked for domestic violence services;:and WHEREAS, the City and Trust agree that homelessness and domestic violence are not compatible with the community we wish to have; and WHEREAS, based on current Homeless Trust per capita collections, the City's equitable share would be based on itspopulation of 91,917 residents multiplied by the $21.50 per capita cost; this amounts to a contribution of $1,976,215 to support homeless and domestic violence services and dedicating 15% of this amount to domestic violence yields a value of $3.23 per capita or an equivalent amount of $296,432; and. WHEREAS, the City of Miami Beach FY 2018/19 budget reflects expenditures of $3,351,940 for Homeless and Domestic Violence Services; and WHEREAS, despite the fact that these amounts are in excess of an equivalent funding percapita by the rest of Miami-Dade County, the Administration recommends providing additional funding for the Homeless Trust and, in particular, for domestic violence services; and WHEREAS, Resolution No. 201.6-29684, which was passed and adopted by the City Commission on December 14, 2016, accepted a recommendation of the FCWPC to direct the :Administration to create one or more funds for homeless services and afrordableiworkforce housing initiatives to be funded from collected short-term rental vio!ation fines; and WHEREAS, the.Administration thereafter implemented a formula wherebythe initial $200,000 in collected.short-term rental fines was to be used to fund homeless services and all funds collected thereafter would be distributed with .twenty percent (20%) set.. .aside for homeless services and eighty percent (80%) to address affordable/workforce housing needs; and WHEREAS, the City has, thus far, collected $512,750 in Short Term Rental Fines since FY 16/17; and WHEREAS, the FCWPC is supportive of dedicating funds to supporting these needed services; and WHEREAS,' at its meeting on. April 19, 2019, the FCWPC discussed that the balance, ofneededper capita funds can be achieved through continued growth in existing Resort Tax funds (especially when both the Convention Center and Convention Center Hotel are fully operational); and _ , . WHEREAS, the FCWPC also recommended utilizing $500,000 from the existing short-term rental=fine collections' to make two annual commitments of $250,000 to support enhanced domestic violence and homeless services in our City; and WHEREAS; the FCWPC further recommended that the City dedicate a portion of its increased Resort Tax collections, up to the City'sper capita share of $1,976,215, as amended for. population changes and changes in collections of Tourist Development Tax by the. Homeless Trust, to further support domestic violence and homeless services in our City; and WHEREAS, the FCWPC requested that funding for homeless services and domestic violence be discussed as part of the Commission budget retreat. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby accept the recommendations of the Finance and Citywide Projects Committee and authorize a) the allocation of $500,000 of short-term rental fine collections in two equal annual amounts of $250,000 for domestic violence and homeless services in the City's FY 2019/2020 and 2020/2021 budgets, and b) the allocation of a portion of the City's increased Resort Tax collections,, starting in Fiscal Year. 2021/2022, up to the. City's per capita share of $1,976,215, as amended for population changes and changes in collections of the Food and Beverage Tax by the Miami-Dade County Homeless Trust to further support domestic violence and homeless servicesin our City, with funds to be appropriated through the annual Budget development process each year. PASSED AND ADOPTED this 8th day of May, 2019. ATTEST: : - ______ZI_,,Tigs ill /, .. Dan Gelber, Mayor. Rafael E. Cfranado, City Clerk ....w,,s� APPROVED AS TO �s � i0.0 FORM & LANGUAGE jp .� *1 �i4 & FOR XECUTION ir_ .:•'.. \ ..'-.LAI ✓ "' y*: ^ I s City Attorney Date W•••.. INCORP ORATED: 0 1/ • �� #.* 7,0"....77 g Resolutions -C7 D MIAMI BEAH COMMISSION MEMORANDUM • TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: May 8, 2019 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE. FINANCE AND CITYWIDE PROJECTS COMMITTEE THAT $500,000 OF SHORT-TERM RENTAL FINES COLLECTIONS FUNDS BE ALLOCATED IN TWO ANNUAL AMOUNTS OF $250,000 FOR DOMESTIC VIOLENCE; AND DEDICATING A PORTION OF THE CITY'S INCREASED RESORT TAX COLLECTIONS, STARTING IN FISCAL YEAR 2021/22, UP TO THE CITY'S PER CAPITA SHARE OF $1,976,215, AS AMENDED FOR POPULATION CHANGES AND CHANGES IN COLLECTIONS OF THE FOOD AND BEVERAGE TAX BY THE MIAMI-DADE COUNTY HOMELESS TRUST, TO FURTHER SUPPORT DOMESTIC VIOLENCE AND HOMELESS SERVICES IN OUR CITY, WITH FUNDS TO BE APPROPRIATED THROUGH THE ANNUAL BUDGET DEVELOPMENT PROCESS EACH YEAR. RECOMMENDATION Adopt the Resolution. ANALYSIS At its March 13, 2019 meeting, the Mayor and Commission had a discussion on and considered a resolution urging the Florida Legislature to amend Section 212.0306 of the Florida Statutes, to allow the collection of a one percent homeless and domestic violence tax within the City of Miami Beach to assist homeless persons, and those at risk of homelessness, and victims of domestic violence. During the discussion, members of the Commission as well as the community expressed concerns between the difference in sales / food and beverage taxes paid in Miami Beach restaurants (which would increase to 10%)versus the 7% paid in the rest of the County. In the resulting discussions, the Mayor and Commission referred to the April 19, 2019 Finance and Citywide Projects Committee (FCWPC) a discussion on a variety of items associated with homeless and domestic violence services including: 1. The need to monitor the State Legislative session for possible preemption issues; 2. Approving a resolution urging the State to include additional funds in the State budget to Page 301 of 1102 address homelessness; and 3. Looking for other funding sources to support homeless and domestic violence efforts such as the one-time short-term rental fines collected by the City. As reported at the FCWPC meeting on April 19, 2019, the Administration has directed staff and the City's lobbying team to monitor the State Legislative session for possible preemption issues as well as the exploration of additional funds for homeless and domestic violence issues within the State budget process. The Mayor and Commission also referred discussion of a referendum on the question of whether or not to urge the legislature to authorize a 1% Homeless and Domestic Violence Tax in Miami Beach, which was the subject of a separate FCWPC agenda item. BACKGROUND The City conducts a Daily Morning Count that mirrors the concentration locations identified in the bi-annual Point-in-Time Census as well as the areas surrounding the homeless congregation points. The countywide Point-in-Time Census is conducted bi-annually by the Homeless Trust. The Daily Morning Count provides a solid trend indicator of the number of homeless in the City at any given point in time throughout the year and is provided weekly to the City's Administrative Team (including the City Manager, Police Chief, Homeless Resource Officers, and the Homeless Outreach Team) as well as citizens who have requested to receive this information weekly. This data has been collected since 2015. While the City collects Daily Morning Count data in addition to the bi-annual Point-in-Time Census data, neither of these is an accurate representation of actual homelessness in our City. Homelessness is present in our City 365 days a year and is far a greater number than the census count when factoring the total number of homeless visiting the City throughout the year. The City relies on self-certifying data that validates a person's homelessness to quantify its homeless population. In fact, the City collects the identity of each self-identifying homeless person encountered in the following ways: • Street outreach • Homeless walk-in center • Police encounters Individuals encountered more than once by any of these methods is only entered once into the system to provide a database of non-duplicated individuals encountered in the City. The following chart displays side-by-side data of the City's various homeless counts over the past three fiscal years excluding FY 18/19 which has not closed: Homeless Encountered in City1 1,998 1,571 1,377 Average Daily Morning Count2 115.51 90.82 95.15 Official City Census3 156 133 124 Served by HOT4 1,370 1,456 1,202 Page 302 of 1102 HOT Shelter Placements5 676 570 547 Relocations6 88 118 122 -The number of unduplicated,self-identified homeless contacted by Hot and PD as tracked by CIMS 2—The morning count factors the population concentrated areas identified for the annual Point-in-Time Census 3—The Point-in-Time Survey,January 2016 and 2017,respectively 4—People contacted in the walk-in center and field offered services by the Homeless Outreach Team(HOT) 5—Police were provided placement privileges in February 2017 6—Relocations are provided once in a lifetime per client with verification of destination As noted above, the City data indicates that the City has experienced a true net reduction of homeless individuals encountered year after year since FY 15/16. More so, the net reduction in homeless individuals encountered annually in Miami Beach from FY 15/16 to FY 17/18 was 31 percent. Please note that the City's homeless population, much like the County's homeless population, is known to rise and fall and has done so consistently since the beginning of the Point-in-Time street counts in 1997. Origins of Our Homeless Population The City has worked tirelessly through its Service Collaborative (Success University) and community networking to ensure that residents have a "no wrong door" experience when seeking vital services such as emergency rent, food and utility assistance. The City leverages funds from several sources (Community Development Block Grant, Emergency Food and Shelter Program, The Children's Trust and the General Fund) to provide cash assistance for residents facing eviction and homelessness. When possible, the City seeks to divert households facing homelessness through its rent assistance program to enable these households to rapidly rehouse themselves in private housing that can be sustained independently. However, despite these efforts, some households still experience homelessness. For these, the City is prepared to provide emergency shelter (whether through shelter or hotel placement). More so, if shelter beds are occupied and the household includes children, the City will approve overflow beds or place the family in a local hotel providing case management services immediately. The Homeless Trust eliminated funding for hotel placements by the City in 2018. For the vast majority of clients seeking shelter services, their homeless experience began in a city other than our own. The City collects information from clients regarding their length, frequency and origin of homelessness. We also complete a national background check that verifies several data points including: • Date of birth • Social Security number and place/date of issuance • Previous known addresses (including last known address) • Arrest history and open warrants As our data collection efforts improved, City staff began seeing an escalating rate of homeless clients reporting that their homelessness began in another City. While the City collected this data from 2017 forward (and generated the FY 17/18 number of 95 percent non-native homeless), the City reviewed all of its homeless client files from 2003 through 2016 to Page 303 of 1102 better understand if this prevalence of non-native homelessness was in fact reflective of a short- term trend or representative of the City's overall population. Once all client files were reviewed, representing 5,745 unique individuals, the City noted that 20.1 percent of all clients (1,201 individual, non-duplicated people) served through the City's Homeless Program actually resided in our City immediately prior to their homelessness. (Please note that when prior residence could not be ascertained, the client was presumed to be a resident.) This means that at least 79.9 percent of all clients served before 2017 did in fact become homeless elsewhere and then migrated to our City. This data set validated the City's understanding of its "migratory" homeless population as reflected in its most current data analyses. Consistent with the overall population encountered in Miami Beach, less than 12 percent of all homeless persons placed in City-purchased shelter beds had been residents of the City prior to their placement. Please note that the City made a total of 397 placement authorizations into City-purchased beds in FY 17/18. However, the data below represents unduplicated persons as some clients were placed in shelter multiple times during the fiscal year: Homeless Persons Placed in City-Purchased Beds �.7 r.Miami Beach Residents AU Others • The origin of a person's homelessness — especially those who became homeless elsewhere and then migrated to our City-- impacts outcome for a variety of reasons: • Lack of natural supports • Lack of familiarity with area norms, values and assets • Lack of investment, cohesion and allegiance to area and the community More so, the data shows that clients who successfully transition to housing benefit from slightly longer stays in shelter in order to secure their own housing: Shelter Average Length of Average Length of Stay Stay for Housing Transition Camillus House 52 days 69 days Miami Rescue Mission 50 days 137 days The Salvation Army 67 days 103 days The City's in-house employment program, fully funded by the General Fund, provides homeless Page 304 of 1102 clients who have accepted shelter with transitional employment. This short-term employment provides clients with employment experience (many times after years of unemployment), work and interview clothes, recommendation letters and peer supports to encourage clients in their quest for permanent employment. The program provides 32 hours of paid, supervised work conducting outreach to the homeless in our City. The City gains their experience and knowledge of helping those who live in the streets and clients get a chance to ease into the workforce. In FY 17/18, 22 of the 44 clients served obtained permanent employment either before or upon completion of the program. Domestic Violence Services The City employs six victim advocates (one funded by the General Fund and five fully funded by the Victims of Crime Act grant funds) in its Police Department. Victim advocates provide navigation, support and intervention services for victims of domestic violence as well as other crimes including sexual assault and stalking, among others. Advocates are available at Police Headquarters Monday through Saturday from 7:30am to 9:00pm and Sunday from 10:00am to 6:00pm. However, advocates are on call 24 hours per day. Advocates provide services for victims and survivors (including children) of all violent crimes handled by our Department. Domestic violence cases are assigned to our advocates for follow up and all other cases are assigned to our advocates on a need basis. Services include: • Crisis intervention, in-person and by phone. • Assistance to officers maintaining crime scene integrity. • Liaison between detectives investigating cases and victims. • Follow up contacts by phone and by certified mail. • Information on services available in the community. • Referrals to community resources, in-person, by phone and mail. • Assistance with filing and following through with Victim Compensation Claims. • Emergency financial assistance (when funds are available). • Court procedures support and advocacy. • Assistance with completion of U Visa Certification of Cooperation Form. • Safety planning for victims. • Information on victims' rights and community resources. The following chart provides an overview of clients served by the City's Victim Advocates as reported to the Florida Office of the Attorney General: — — — 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter (January—March (April—June 2018) (July—September (October— 2018) 2018) December 2018) # Receiving Services 377 397 407 439 Domestic Violence 102 191 149 165 Victims1 1—Individuals who received seneces by types of victimization. Analysis The City and Trust agree that homelessness and domestic violence are not compatible with the community we wish to have. We also agree that collaboration is essential among all stakeholders — including municipalities, faith groups, businesses, residents and those we seek to help. Our mutual efforts have made a difference and will continue to do so as long as we remain focused on the mutual goal: serve all of our residents and help them achieve the home Page 305 of 1102 and lives they choose for themselves. We know that more needs to be done — especially with regards to domestic violence services. The City currently does not adequately fund its fair share of these lifesaving services. Funds for Homeless and Domestic Violence Services The Miami-Dade County Homeless Trust receives its funds from a variety of sources including: Food and Beverage Tax, and State and Federal funds: FY 2018-19 Adopted Budget Expenditures by Activity Revenues by Source (dams in thousands) {dollars in thousands), a....a: 14ry +'.ak2Ch. m. <. .aai``"° -W�ri4AI r .-Afta+, 1rmalc� 641,0 While the bulk of funds collected by the Homeless Trust are expended to support efforts to address homelessness, a portion of funds are committed to supporting the efforts of the Domestic Violence Oversight Board. Fifteen (15) percent of the current Food and Beverage Tax collections are earmarked for domestic violence services. The Homeless Trust receives about $57,762,000 from Miami-Dade County collections. Based on a countywide population of 2,743,095 (Source: 2017 MDC CAFR), Homeless Trust collections amount to about$21.50 per capita. Based on current Homeless Trust per capita collections, the City's equitable share would be based on its population of 91,917 residents multiplied by the $21.50 per capita cost. This amounts to a contribution of $1,976,215 to support homeless and domestic violence services. Dedicating 15% of this amount to domestic violence yields a value of $3.23 per capita or an equivalent amount of$296,432. City of Miami Beach Expenditures The City of Miami Beach FY 2018/29 budget reflects the following amounts for Homeless and Domestic Violence Services (excluding any grants received: Housing and Community Services Homeless Services $1,900,000 Police Department Homeless Outreach Team $1,300,000 Domestic ViolenceNictims'Advocates Service $ 151,940 Total $3,351,940 Despite the fact that these amounts are in excess of an equivalent funding per capita by the rest of Miami-Dade County, the Administration recommends providing funding for the Homeless Trust, and in particular for domestic violence services. Potential Funding Approach The Commission discussed the need to explore alternate funding sources to support homeless Page 306 of 1102 efforts. One potential funding source mentioned at the March 13th Commission meeting was the monies collected through Short Term Rental Violations. While the Short-Term Rental Fines provide a limited amount of funds, these monies can be earmarked to fund homeless and domestic violence services by amending Resolution 2016-29684 to allow for their use in this way. The following depicts the Short-Term Rental Fines funds collected through February 2019: Fiscal Year 2015-2106 $ 20,000 Fiscal Year 2016-2017 $117,350 Fiscal Year 2017-2018 $290,150 Fiscal Year 2018-2019 $ 85.250 Total $512,750 Resolution 2016-29684, approved December 14, 2016, states that the initial $200,000 in collected short-term rental fines was to be used to fund homeless services and all funds collected thereafter would be distributed with 20% set aside for homeless services and 80% to address affordable/workforce housing needs. The following depicts the fund distribution as currently stipulated by Resolution 2016-29684: Homeless Workforce Housing Total Initial Amount $200,000 - $200,000 20/80 Split $62,550 $250,200 $312,750 Total Revenues $262,550 $250,200 $512,750 The Administration is supportive of dedicating funds to supporting these needed services. Further, the Administration feels that the balance of needed per capita funds can be achieved through continued growth in existing Resort Tax funds (especially when both the Convention Center and Convention Center Hotel are fully operational). In other words, we can make an immediate contribution to support these services by earmarking collections of Short Term Rental fines and dedicate a portion of future growth in Resort Tax collections up to the City's per capita share of $1,976,215, as amended for population changes and changes in collections of Tourist Development Tax by the Homeless Trust. This would allow for the funding of these needed services without the need of raising the Food and Beverage Tax, which is already the highest in the County. At the FCWP Committee meeting, Commissioners Mark Samuelian and Michael Gongora moved and seconded the recommendation that the City allocate existing Short-Term Rental fines collections to address domestic violence services with the understanding that the City would eventually commit the City's per capita share for such services through funds raised by Resort Tax collections from the newly-renovated Convention Center and the convention center hotel being built. During the Committee discussion, Commissioner Joy Malakoff advised that she will be presenting an item at a future Commission meeting to recommend following the State of California in taxing sugary drinks as a means of raising funds for homeless services, domestic violence services, and youth health services. Page 307 of 1102 As part of a separate agenda item discussion, the FCWPC requested that funding for homeless services and domestic violence be discussed as part of the Commission budget retreat. CONCLUSION The Administration recommends utilizing $500,000 from the existing short term rental fine collections to make two annual commitments of $250,000 to support enhanced domestic violence and homeless services in our City. Further, the Administration recommends that the City dedicate a portion of its increased Resort Tax collections up to the City's per capita share of $1,976,215, as amended for population changes and changes in collections of Tourist Development Tax by the Homeless Trust, to further support domestic violence and homeless services in our City. KEY INTENDED OUTCOMES SUPPORTED Ensure Expenditure Trends Are Sustainable Over The Long Term FINANCIAL INFORMATION The proposed actions would commit $500,000 in existing Short Term Rental fines collections for two annual allocations of $250,000 for enhanced domestic violence and homeless services in the City for fiscal years 19/20 and 20/21. These funds have been collected and are uncommitted. By FY 21/22, it is expected that Resort Tax Collections will yield an increase due to the full operation of the Convention Center and the opening of the new convention center hotel. It is proposed that this increase in collections be earmarked, up to the City's per capita share, to about $1,976,215 (or as amended by population changes or changes in Food and Beverage Tax collections by the Miami-Dade County Homeless Trust. Legislative Tracking Housing and Community Services Page 308 of 1102