Title
a. Approve and authorize the Treasurer-Tax Collector to sign and execute a standard Agreement with Host Compliance, Inc. for the provision of short-term rental compliance monitoring and associated services in the amount of $51,534 for Fiscal Year (FY) 2020-21, for a maximum County obligation of $51,534, retroactive to July 1, 2020 for the term July 1, 2020 through June 30, 2021; and
b. Approve the Treasurer-Tax Collector’s recommendation to non-standard limitation on liability provisions within the agreement; and
c. Approve and authorize the Treasurer-Tax Collector, through June 30, 2023, to sign and execute future agreements with Host Compliance, Inc. containing substantially identical terms, including non-standard limitations on liability provisions, (i) when the cumulative value does not exceed 10% of the original amount of the agreement; and (ii) subject to review and approval by County Counsel.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve and authorize the Treasurer-Tax Collector to sign and execute a standard Agreement with Host Compliance, Inc. for the provision of short-term rental compliance monitoring and associated services in the amount of $51,534 for Fiscal Year (FY) 2020-21, for a maximum County obligation of $51,534, retroactive to July 1, 2020 for the term July 1, 2020 through June 30, 2021; and
b. Approve the Treasurer-Tax Collector’s recommendation to non-standard limitation on liability provisions within the agreement; and
c. Approve and authorize the Treasurer-Tax Collector, through June 30, 2023, to sign and execute future agreements with Host Compliance, Inc. containing substantially identical terms, including non-standard limitations on liability provisions, (i) when the cumulative value does not exceed 10% of the original amount of the agreement; and (ii) subject to review and approval by County Counsel.
DISCUSSION:
The Treasurer-Tax Collector utilizes Host Compliance, Inc. for short-term rental compliance monitoring and associated services. The Treasurer-Tax Collector has successfully utilized this service via annual agreements since Fiscal Year 2016-17. The service provides an important tool for the identification, registration and monitoring of short-term rentals and assists in ensuring the timely collection of Transient Occupancy Tax. The Agreement is for a base one-year period; the authorization to allow the Treasurer-Tax Collector the option to enter into two additional similar contract periods under similar terms would allow seamless performance and avoid the potential interruption in service for the near future.
OTHER AGENCY INVOLVEMENT:
This service is utilized by the Monterey County Treasurer-Tax Collector Office as a component of identification, registering, and monitoring of short-term rentals as well as pursuing the collection of Transient Occupancy Tax. County Counsel has reviewed this report and recommended that the department seek Board approval for the non-standard limitation of liability provisions.
FINANCING:
Costs for services through the Host Compliance Services Agreement have averaged $56,700 per year since FY 2016-2017. Related FY 2020-21 charges are included in the submitted budget and there is no additional impact on the General Fund.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The Host Compliance, Inc. web application assists Tax personnel to more fully research and identify providers of short-term rental services and helps ensure a more effective and efficient process for managing the process.
Mark a check to the related Board of Supervisors Strategic Initiatives
__Economic Development
X Administration
__Health & Human Services
__Infrastructure
__Public Safety
Prepared by: Joy Willett, Administrative Services Officer, ext. 6072
Approved by: Mary A. Zeeb, Treasurer-Tax Collector, ext. 5015
Attachments:
Board Report
Host Compliance Standard Agreement
Host Compliance Scope, Payment Provisions
Host Compliance Liability Statement