DATE: October 21, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: AMENDMENT 4 TO AGREEMENT WITH NEUMO GROUP LLC 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 4 to the Professional Services Agreement (PSA) with Neumo Group LLC (Neumo), in an amount of $17,335, for a revised contract amount of $293,595, extending the term of the Agreement for six months 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
Neumo hosts the MUNIRevs application which provides a full array of services in STR and TOT compliance. Services offered include STR detection and compliance verification, twenty-four-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. The proposed Agreement is a short-term extension of the current contract to ensure continuity of these services until a new vendor assumes responsibility. A replacement vendor for these services was selected in accordance with the City’s procurement policies, and the new Agreement with the selected vendor is also included on this agenda for consideration.
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 was 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.
On November 4, 2024, the City Council approved Amendment 3 extending the Agreement for two years from November 5, 2024 to November 6, 2026 and adjusted the compensation for services provided.
In August 2025, GovOS, Inc. was the subject of an acquisition and merger, therefore the Agreement was assumed by the surviving entity, Neumo Group LLC.
As previously described, in March 2026, staff issued a Request for Proposal in accordance with the City’s procurement policies for these services and received five responses. The responses were evaluated by finance, code enforcement and development services staff on service options, cost proposals, experience and software demonstrations. The selected new program will not be fully implemented by the agreement end date of November 6, 2026; therefore, staff is proposing a six-month extension to the Neumo agreement to allow sufficient time for transition to a new vendor platform.
Proposed Amendment 4 would extend the Agreement for six months from November 6, 2026 to May 5, 2027 and adjust the compensation for services provided.
FISCAL IMPACT
The cost of Amendment 4 is $17,335 and will be charged to Revenue Management account 211010101.5355.0009 which has an available balance of $44,677; therefore, sufficient funds are available.
|
Description |
Account |
Amount |
FY 2026-27 Available Budget |
|
Amendment 4 |
Revenue Management 211010101.5355.0009 |
$17,335 |
$44,677 |
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. Amendment 4
2. Neumo Quote