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Item H03
M C ounty of f Monroe ELj » °o � BOARD OF COUNTY COMMISSIONERS /� r i � �� Mayor George Neugent, District 2 The Florida. Ke Se y I Mayor Pro Tern David Rice, District 4 Danny L. Kolhage, District I Heather Carruthers, District 3 Sylvia J. Murphy, District 5 County Commission Meeting May 17, 2017 Agenda Item Number: H.3 Agenda Item Summary #2590 BULK ITEM: No DEPARTMENT: Code Compliance TIME APPROXIMATE: STAFF CONTACT: Cynthia McPherson (305) 289 -2508 N/A AGENDA ITEM WORDING: Approval of two fulltime Vacation Rental Coordinators (FTEs) to increase illegal vacation rentals enforcement using Host Compliance Software at an estimated cost of $140,000 annually, loaded ITEM BACKGROUND: Illegal Vacation Rental activity in unincorporated Monroe County has continued to increase. The County currently has one Code Compliance Officer solely dedicated to Vacation Rental Enforcement. The current process is labor intensive and requires vast hours and inspections to gain enough evidence to process a case through the Special Magistrate, process liens, and collections. In an effort to find a resource that can help find illegal vacation rental properties more easily, county staff has been evaluating software vendors that have created an investigative method to access website information related to short term rental of properties where the activity is illegal. Staff have evaluated BNB Shield, LLC and Harmari. We also visited the City of Key West to view the process they've developed to monitor short term rental activity on the web. Staff have found, Host Compliance provides the best, most up to date (weekly) product, which accesses over 15 short-term rental websites. At the time, Host Compliance developed the services agreement we are requesting to contract for, there were 2593 short-term rental listings in unincorporated Monroe County. Further, this product is able to take County GIS information and sort the rental advertisements into categories where they are prohibited or allowed upon receipt of a permit. We have had three sessions with Host Compliance to learn about how the software works and have developed a list of evidence needed for each case that can be derived from the software. The Address Identification Module identifies: • A picture of the house, verifiable by a site visit • Print outs of the actual advertisements, with rental rates (daily, weekly, etc) • Reviews of the rental of property by past renters • Minimum stay information to prove the owner is renting for less than 28 days /month The Rental Activity Monitoring Module identifies: • Recurring advertised sites A tool to send letters to those in land use districts that are allowed to rent less than 28 days with a permit (this will be used more by the Planning and Environmental Resource Department) For the past year (May 2016 — April 2017) staff (Vacation Rental Inspector and Collections staff person) have processed the following number of cases and collected the following monies monthly: Vacation Rental Cases Month # Cases Avg. # Cases Monies Collected Avg. Monies May, 2016 11 $28,420 June, 2016 6 $13,350 July, 2016 8 $20,745 Aug, 2016 2 $14,600 Sept, 2016 2 $2,417 Oct, 2016 11 $73,611 Nov, 2016 22 108,012 Dec, 2016 9 50,148 Jan 2017 3 $3,300 Feb, 2017 4 $20,998 March, 2017 9 $41,616 April, 2017 6 $10,136 May, 2017 In process TOTAL YTD 93 7.75 $387,357 $32,279 As you can see by the table above, one officer averages approximately 8 cases per month, with an average monthly fine amount of $32,279. It is estimated this software will double or possibly triple the number of cases our Code Compliance Officer can process. Conservatively, doubling the average number of monthly cases (8) to (16) and monies collected from $32,279 to $64,559, we estimate 186 cases ($774,714) annually. However, hiring and training will delay output until approximately September). So, conservatively we could end up collecting approximately $516,476 (8 months with collections averaging $64,559 /month). This will more than cover paying for the cost of the software cost, which is $97,238. We have vacancy savings and savings from the demolition fund above the $97,238 in FY17 budget. The contract requires payment upfront to install and system and make it operational. This purchase is for one year. If, after 1 year we no longer want to proceed with the software we are not obligated to renew the contract. We are asking for two additional Code Compliance Case Coordinators at a cost of approximately $140,000 per year to be able to assist in using the software to process cases to the Special Magistrate in the Code Compliance system. With three trained employees, we estimate we can probably process 300 cases in the first year, which could equate to approximately $1.5 Million in fines. This estimate would cover all of the added costs. Collecting fees is not our goal. However, compliance is our goal with an understanding of the havoc caused by this activity in our neighborhoods, along with the fact that illegal vacation rentals are not paying required taxes, do not have inspections for safety purposes, and are removing the supply of housing from the annual rental market; thereby driving up the cost of housing to our workforce. We also have interest from Commissioner Rice's aide (Tamara Lamarche) in assisting with this type of case coordination, which would also lend a resource needed to get through the estimated 2500+ listings found in the software. PREVIOUS RELEVANT BOCC ACTION: CONTRACT /AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Approval DOCUMENTATION: Code Compliance VR Coordinator FINES COLLECTED VR CASES (MinuteTraq) VR NOVNOH RESULTS FY 15 -16, FY16 -17 (Selection) FINANCIAL IMPACT: Effective Date: July 1, 2017, assuming recruitment is expedited with expected collections increasing by September, 2017 Expiration Date: N/A Total Dollar Value of Contract: Total Cost to County: $140,000 annually, plus increases in salary or benefits Current Year Portion: $35,000 Budgeted: Vacancy Savings should cover this amount in FY17, increased collections as the result of the software we are purchasing should cover added costs of staff for FYI Source of Funds: 148 and Code Compliance Fine Collection CPI: Indirect Costs: Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: If yes, amount: Grant: County Match: Insurance Required: Additional Details: REVIEWED BY: Cynthia McPherson Completed Assistant County Administrator Christine Hurley 05/02/2017 10:39 AM Steve Williams Completed Bob Shillinger Completed Budget and Finance Completed Maria Slavik Completed Kathy Peters Completed Board of County Commissioners Pending 05/02/2017 10:37 AM Completed 05/02/2017 10:45 AM 05/02/2017 2:28 PM 05/02/2017 2:32 PM 05/02/2017 2:36 PM 05/02/2017 5:49 PM 05/17/2017 9:00 AM MONROE COUNTY JOB DESCRIPTION Position Title: CODE COMPLIANCE VR COORDINATOR I Reports to: Senior Director Code Position Grade: 111 I FLSA Status: Non - Exempt I Class Code: 111 GENERAL DESCRIPTION Primary function is to receive, document and investigate violations of the Monroe County Code relating to Vacation Rentals. Coordinates activities and /or works with other local agencies. Attends education programs. Serves as a resource and provides information on County regulations to property owners, residents, businesses, the general public, and other County departments and divisions. KEY RESPONSIBILITIES 1. *Investigate referrals and complaints relating to short term /vacation rentals ( less than 28 days) both reactively and proactively. 2. *Create cases, investigate, research, validate, and cite violations of County ordinances. 3. *Review cases prior to issuing Notice of Violation/Notice of Hearing prior to a hearing before the Special Magistrate to validate information and due process. 4. *Monitor Vacation Rental cases from case creation through compliance and /or lien process. 5. *Maintain case files. 6. *Travels as required throughout area of responsibility. 7. Coordinate and provide guidance to staff and the public relating to compliance and enforcement of Vacation Rentals. 8. Establish and maintain an effective, dependable and courteous working relationship with officials, the public and staff. 9. Develop /update public information and educational literature. 10. Attend association and /or other public meetings as needed. * Indicates an "essential" job function. The information on this description has been designed to indicate the general nature and level of work performed by employees within this classification. It is not designed to contain or be interpreted as a comprehensive inventory of all duties, responsibilities and qualifications required of employees assigned to this job. 0 0 0 c� c� Position Title: CODE COMPLIANCE VR Class Code: 111 -1 Position Grade: 111 COORDINATOR APPROVALS Department Head: Name: Signature: Division Director: Name: Signature: County Administrator: Name: Signature: Date: Date: Date: On this date I have received a copy of my job description relating to my employment with Monroe County. Name: Signature: Date: 0 0 0 CJ c� KEY JOB REQUIREMENTS Education: Associate's Degree or two -year college equivalent required. Experience: 2 to 3 years minimum amount of prior related work experience. Leadership: Have guidelines for work assignments, but determine the approach for doing the work. Supervisor focuses on the outcomes of work. Complexity: Perform professional -level work dealing with data, people, and technology that relates to administrative, technical, scientific, engineering, accounting, legal, or managerial skills. Decision Making: Work in a responsive environment where co- workers or citizens bring problems for resolution. Responsible for determining the problem and research possible solution for the issue. Relationships: Coordinate and manage case load working regularly with staff to successfully meet the goals and objectives of the department. 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The increasing pressure from tourists coupled with the ease of internet booking and the ongoing presence of Air B & B facilitating rentals of single rooms in a residence or homes for a few days to a few weeks, is negatively impacting our neighborhoods and the quality of life for many residents. Last Stand supports the three agenda items that will directly broaden the reach of code compliance to curtail illegal vacation rentals. Non negotiable fines for violators will help absorb the added cost of enhanced enforcement methods and personnel. Last Stand urges approval of agenda items H- 2,H -3, HOF Thant�yo Deb Curlee Vice President Last Stand