DATE: November 6, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: AMENDMENT 3 TO AGREEMENT WITH GOVOS, INC. FOR SHORT-TERM RENTAL AND TRANSIENT OCCUPANCY TAX COMPLIANCE AND REMITTANCE SERVICES
RECOMMENDATION
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Staff recommends that the City Council approve Amendment 3 to the Professional Services Agreement (PSA) with GovOS, Inc., in an amount not to exceed $64,260, for a revised contract amount of $276,260, extending the term of the Agreement for two years for Short-term Rental (STR) and Transient Occupancy Tax (TOT) compliance and remittance services; and authorize the City Manager to execute the amendment.
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BACKGROUND AND ANALYSIS
On November 6, 2019, the City Council approved a three-year PSA with MUNIRevs, Inc. (d/b/a LODGINGRevs) for STR and TOT compliance and remittance services.
In August 2021, MUNIRevs, Inc. was the subject of an acquisition and merger, therefore the Agreement has been assumed by the surviving entity, GovOS, Inc.
On September 14, 2022, the City Council approved Amendment 1 extending the Agreement for an additional one year from November 5, 2022 to November 5, 2023.
On September 27, 2023 the City Council approved Amendment 2 extending the Agreement for one year from November 5, 2023 to November 5, 2024.
Amendment 3 would extend the Agreement for two years from November 5, 2024 to November 6, 2026 and adjust the compensation for services provided.
GovOS provides a full array of services in STR and TOT compliance. Services offered include STR detection and compliance verification, 24-hour live operator complaint hotline service, on-line complaint reporting to the City, on-line registration and payment processing, automated approval work flows, automated outreach and renewal processing, auditing work flows, and an interactive web portal and dashboard. Staff has worked very closely with GovOS throughout the last year to implement the recent STR Permit ordinance updates into the portal and to reduce response timeframes to improve the customer experience. Staff will continue to work with GovOS to promptly address issues as they arise with the goal of providing enhanced and efficient STR and TOT services.
FISCAL IMPACT
The estimated cost of Amendment 3 for two years is $64,260. Total cost for FY 2024-25 is $20,400 and is included in the FY 2024-25 budget. Total cost of $32,640 for FY 2025-26 and $11,220 for FY 2026-27 will be included in the regular budget cycle.
|
Description |
Account |
FY 2024-25 Amendment 3 Cost |
FY 2024-25 Available Budget |
|
Code Enforcement Professional Services |
425900101.5305 |
$2,400 |
$2,849 |
|
Revenue Management Professional Services |
211010101.5305 |
18,000 |
56,536 |
|
|
Total |
$20,400 |
$59,385 |
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
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Prepared by: Jennifer Rhoades, Management Analyst
Reviewed by: Jill Moya, Financial Services Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Amendment 3
3. Quote