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HomeMy WebLinkAboutC35370 - Collect-Remit TOT on Behalf of UsersCONTRACT NO. C35370 CITY OF PALM DESERT STAFF REPORT REQUEST: APPROVE VOLUNTARY COLLECTION AGREEMENT WITH AIRBNB, INC. TO COLLECT AND REMIT TRANSIENT OCCUPANCY TAXES ON BEHALF OF USERS IN THE CITY OF PALM DESERT SUBMITTED BY: Janet Moore, Director of Finance DATE: June 9, 2016 CONTENTS: Proposed Agreement Recommendation That the City Council by Minute Motion: 1. Approve Voluntary Collection Agreement ("Agreement') with Airbnb to collect and remit Transient Occupancy Taxes on behalf of users in the City of Palm Desert; and 2. Authorize the Director of Finance to execute the Agreement. Executive Summary Over the past several years, the City has seen a marked increase in the amount of properties being utilized as short-term rentals. This use can create problems for the City in terms of noise complaints, parking problems, and the degradation of the character of neighborhoods. Beyond this, pursuant to Chapter 3.28 of the Palm Desert Municipal Code, any individual renting out their home is operating a hotel, and thus is subject to the City's Transient Occupancy Tax. Despite this obligation, the City believes that many individuals have failed to apply for short term rental permits, as required by Chapter 5.10 of the Palm Desert Municipal Code, and thus may not be paying the required Transient Occupancy Tax. The City has thus entered negotiations with Airbnb, one of the most prominent short-term rental platforms, to begin collecting and remitting Transient Occupancy Taxes on behalf of all properties using the platform in the City, whether or not they are properly registered. Strategic Plan Obiective Not applicable. Discussion Airbnb has agreed to collect and remit all Transient Occupancy Taxes owed by its users under Chapter 3.28. Though Airbnb represents that it is not an `operator" of any "hotel" in the City, for purposes of the agreement it is willing to act as an operator for tax collection purposes. Under the agreement, both Airbnb and the City retain all legal rights to later contest whether Chapter 3.28 rightfully applies to Airbnb, and either parry can terminate the agreement with 30 days' Staff Report Approve Voluntary Collection Agreement with Airbnb to collect and remit Transient Occupancy Taxes on behalf of Users in the City of Palm Desert June 11, 2016 Page 2 of 2 notice. This means that, should a more favorable legal regime arise for the City, the agreement could be terminated within 30 days. The City retains all rights to pursue any code enforcement violations in the City, and to audit Airbnb at any time to determine the extent of the collection and remittance. However, audits would take place on an anonymous basis to protect the privacy of Airbnb's users. If this agreement is approved, Airbnb will begin collecting and remitting all Transient Occupancy Taxes due by its users in the City as of July 1, 2016, and will continue to do so unless the agreement is later terminated. The Agreement is not subject to environmental review under the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activities will not result in a direct or reasonably foreseeable indirect physical change in the environment), 1 5060(c)(3) (the activities are not "projects" as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because they have no potential for resulting in physical change to the environment, directly or indirectly and 15061(b)(3) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it can be seen with certainty that it will not have a significant effect or physical change to the environment. Should the City approve the agreement, collection and remittance of Transient Occupancy Taxes on behalf of all Airbnb users in the City will begin on July 1, 2016. The City should expect to realize greater revenue through Transient Occupancy Taxes under this agreement, as unregistered renters and others who have failed to pay all taxes they owe will begin remitting fully through the platform on that date. Fiscal Impact The City will begin to receive Transient Occupancy Taxes from all citizens who use Airbnb to engage in short term rental. repared y: Apprbved by: Submitted by: Attorney Janet . Moore, Director of Finance J t McCarthy, Interim C anag er GlFinanceWiamh OrtegaITOT1SR Adoption Of Airbnb TOT Agreement 6-9-16.Docx CONTRACT NO. C35370 VOLUNTARY COLLECTION AGREEMENT FOR PALM DESERT TRANSIENT OCCUPANCY TAX THIS VOLUNTARY COLLECTION AGREEMENT (the "Agreement") is dated , 2016 and is between AIRBNB, INC., a Delaware corporation ("Airbnb") and the CITY OF PALM DESERT (the "City"). Each party may be referred to individually as a "Party" and collectively as the "Parties." RECITALS: WHEREAS, Airbnb represents that it provides an Internet -based platform through which a third party desiring to offer an accommodation (a "Host") and a third party desiring to book an accommodation (a "Guest") have the opportunity to communicate, negotiate and consummate a booking transaction for accommodations ("Booking Transaction") pursuant to a direct agreement between Host and Guest to which Airbnb is not a party (the "Platform"); WHEREAS, Airbnb represents that any agreement regarding a Booking Transaction through use of the Platform is between the Host and Guest only, that Airbnb is not a party to such agreements, that a Host exclusively determines the price to be charged, the dates to book such accommodations, the parties with whom to transact and all other material terms of such agreements, that only the Host and not Airbnb has the right and ability to accept and book an accommodation, and that Airbnb does not own any property and does not have any possessory interest in any real property or accommodations offered by Hosts (including, but not limited to, as an owner, lessee, sublessee, mortgagee in possession, licensee, agent or in any other capacity), and therefore cannot and does not transfer any possessory interest in any property or accommodations to any person; WHEREAS, Airbnb represents that it provides, through third -party payment processors, a secure payment processing service to permit Hosts to receive payments electronically. When the Host accepts and confirms a Guest's reservation request, Airbnb, acting through third -party payment processors, electronically processes the Guest's payment, which is typically held and released approximately 24 hours after the Guest checks into the Host's property. Airbnb represents that Guests booking CONTRACT NO. C35370 accommodations through the Platform pay the Host for such accommodations electronically using the Platform, and such payments are briefly held by Airbnb typically until twenty-four hours after check -in and then released directly to Hosts (less the applicable service fee); WHEREAS, Airbnb represents that it is not an owner, proprietor or otherwise "operator" of any "hotel' or accommodation of any kind, under applicable City of Palm Desert (the "City") laws, and the City and Airbnb are entering into this Agreement voluntarily. Airbnb represents it does not collect or charge "rent" within the meaning of applicable City laws. Airbnb represents that it does not rent or have the right to rent rooms, does not book accommodations, does not mark up the prices for accommodations set by Hosts, does not sell or resell accommodations, does not reserve, arrange for, convey or furnish or transfer occupancy of accommodations, does not operate any accommodations, and has not, pursuant to any assignment, contract, agency or otherwise been assigned in whole or part the right to exercise, or exercised any right pursuant to any assignment, contract, agency or otherwise, to operate accommodations, and only provides communications, payment processing and other services through the Platform, receiving only fixed service fees which are a percentage of the price set by Hosts, such service fees collected from the Guest and from the Host, respectively; WHEREAS, the legal rights, remedies and obligations of Airbnb, Hosts and Guests using the Platform are specified in a document titled "Terms of Service" (the "TOS") and other policies and procedures available at www.airbnb.com, including, but not limited to, certain TOS provisions to which Hosts and Guests have agreed that when or if Airbnb determines to assist with collection and remittance of occupancy taxes in a given jurisdiction, users grant Airbnb authority to register, report, collect and remit the applicable occupancy taxes pursuant to this Agreement and the TOS; WHEREAS, the City and Airbnb have determined to enter into this Agreement in order to facilitate the reporting, collection and remittance of applicable occupancy taxes from Hosts and Guests, resulting from Booking Transactions completed by Hosts and Guests on the Platform for occupancy of accommodations located in the City, in accordance with this Agreement. G:IFinanceWiamh Ortega lTOTlAgreement - Airbnb TOT Collection.Doc Page 2 of 12 CONTRACT NO. C35370 NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS, PROMISES AND AGREEMENTS CONTAINED HEREIN, THE PARTIES AGREE AS FOLLOWS: (A) With respect to Booking Transactions between Hosts and Guests completed on the Platform for accommodations for which Palm Desert Transient Occupancy Tax ("TOT'), imposed by Chapter 3.28 of Title 3 ("Chapter 3.28") of the City of Palm Desert Municipal Code (the "Code"), is applicable, and during the period in which this Agreement is effective (as defined below), and solely pursuant to the terms and conditions of this Agreement, Airbnb agrees to assume the duties of a TOT "operator" as described in Chapter 3.28. (B) Airbnb neither agrees to undertake, nor undertakes any obligation to assume the duties of an operator and does not agree to undertake any obligation contractually or otherwise to collect or remit TOT relating to any user's transaction completed, made or facilitated through any means, or method or other platform, other than the Host or Guest's use of the Platform. Any obligation assumed by Airbnb pursuant to this Agreement (during any period in which it is effective) shall be limited to users completing Booking Transactions directly between them through their use of the Platform. PROSPECTIVE COLLECTION OF TOT (C) Starting on July 1, 2016 (the "Effective Date"), Airbnb agrees to commence collecting and remitting TOT, pursuant to the terms of this Agreement, at the applicable rate, on completed Booking Transactions for occupancy of accommodations located in the City between a Guest and Host who use the Platform. For the avoidance of doubt, Airbnb's agreement herein to collect and remit TOT shall not extend to any period or transaction prior to the Effective Date or after the termination of this Agreement or to any user's transaction completed, through any means, method or platform, other than the Platform, except, the Parties agree that any termination of this Agreement pursuant to its terms shall not affect the duty of Airbnb to remit to the City any TOT collected from Guests up through and including the effective date of termination of this Agreement, even if not remitted by Airbnb to the City as of the date of termination. REMITTANCE OF TOT G:IFinanceWiamh OrtegaITOTIAgreement - Airbnb TOT Collection.Doc Page 3 of 12 CONTRACT NO. C35370 (D) Airbnb shall report information on the tax return form prescribed by the City, including all TOT that is subject to the provisions of this Agreement, and it shall remit all TOT collected from Guests in accordance with any applicable law and/or this Agreement and the TOS and evidenced on such returns in the time and manner described in the Code or as agreed between the Parties in writing. Airbnb agrees reasonably to attempt to provide written notice to the City when the TOS is amended, however, the failure to provide such notice shall not be a breach of this Agreement. The Parties agree that the City may create an account on the platform for the sole purpose of receiving the same notice(s) regarding amendment of TOS provisions as other users of the platform, and that Airbnb agrees not to terminate such account, provided that the City is not otherwise in breach of the terms and conditions of the TOS. AIRBNB LIABILITY (E) On a prospective basis upon the Effective Date of this Agreement, and during any period in which this Agreement is in effect, in accordance with the terms of this Agreement, Airbnb agrees contractually to assume liability for any failure to report, collect and/or remit the correct amount of TOT, including, but not limited to, penalties and interest, lawfully and properly imposed in compliance with law. Nothing contained herein nor any action taken pursuant to this Agreement, including but not limited to the collection or remittance of TOT, shall impair, restrict or prevent Airbnb from asserting that any TOT and/or penalties, interest, fines or other amounts assessed against it were not due, are the subject of a claim for refund under applicable law or enforcing any and all rights accorded to it pursuant to law. (F) During any period in which this Agreement is in effect, and Airbnb is not in breach of its obligations under this Agreement, then with respect to Booking Transactions covered by this Agreement, the City shall audit Airbnb on the basis of TOT returns and supporting documentation filed by Airbnb with the City and shall not directly or indirectly audit any individual Guest or Host relating to such Booking Transactions unless and until an audit of Airbnb by the City has been exhausted with the matter unresolved. (G) With respect to any audit of completed Booking Transactions that are subject to this Agreement during any period in which it is effective, the City shall audit Airbnb on GlFinanceWiamh OrtegaITOTIAgreement - Airbnb TOT Collection.Doc Page 4 of 12 CONTRACT NO. C35370 an anonymous numbered account basis. The City reserves the right to audit any individual Airbnb Hosts for activity that has been brought to the attention of the City in the form of a complaint or other means independent of this Agreement or independent of data or information provided pursuant to this Agreement. The Parties agree that Airbnb shall not be required to produce any personally identifiable information relating to any Host or Guest and/or relating to any Booking Transaction in connection with an audit or otherwise without binding legal process served only after completion of such audit by the City of Airbnb with respect to such Host or Guest. (H) The City agrees that pursuant to this Agreement and during the period in which it is effective, Airbnb will register as an "operator" for the reporting, collection and remittance of TOT, in connection with its obligations assumed under Chapter 3.28 of the Code as set forth in this Agreement. Registration with the City and the issuance of any certificate of authority will be in the name of Airbnb, Inc. at 888 Brannan Street, 4th Floor, San Francisco, CA 94103. Airbnb, Inc. will be the registered taxpayer on behalf of any subsidiary or affiliate of Airbnb, Inc. collecting TOT from Guests. GUEST AND HOST LIABILITY (1) During any period in which this Agreement is effective, and solely with respect to a Host's activity on the Platform, said Host may but shall not be required to individually register with the City to collect, remit and report TOT, under the Code, on the condition that Airbnb is in compliance with its obligations under this Agreement and the Code. Nothing in this Agreement shall relieve Guests or Hosts from any responsibilities with respect to TOT, including any obligation to register with the City to collect, remit and report TOT for a user's transactions completed through any means, method, device or platform other than the Platform, or restrict the City from investigating or enforcing any provision of applicable law against such users for any occupancy arranged directly or through a means other than the Platform. Nothing in this Agreement shall relieve any Host from any other obligation or requirements under applicable law, including, without limitation, City's zoning regulations and Chapter 5.10 of the Palm Desert Municipal Code. Provided that Airbnb is, with respect to a Host and/or Guest that exclusively uses the Platform, in compliance with Airbnb's obligations under this Agreement and the Code, then that Host and/or Guest shall be deemed to be in G:IFinanceWiamh Ortega lTOTIAgreement - Airbnb TOT Collection. Doc Page 5 of 12 CONTRACT NO. C35370 compliance with responsibilities with respect to TOT, including the obligation to register with the City to collect, remit, and report TOT for a user's transactions completed through the Platform. If Airbnb is not in compliance with this Agreement, then with respect to a Host and/or Guest that uses the Platform, then nothing in this Agreement does or shall be construed to restrict the City from investigating or enforcing any provision of applicable law against such Hosts and/or Guests for any occupancy arranged through the Platform. (J) Nothing herein shall relieve any Guest or Host of liability for TOT imposed by the Code, except as noted in paragraphs (E) (F), (G), (H) and (1) above, nor limit the City's authority to hold such Guest or Host responsible for any applicable TOT, penalties and interest for which they may be liable, including, but not limited to, civil and criminal penalties arising from inaccurate, false or misleading representations made to Airbnb or the City by such Guest or Host, whether or not such representations were, in fact, relied upon by Airbnb or the City in complying with its responsibilities under this Agreement. NOTIFICATION TO GUESTS AND HOSTS (K) Airbnb agrees, for the purposes of facilitating this Agreement, and as required by any applicable law and its TOS, that it will notify (i) Hosts that TOT will be collected and remitted to the City as of the Effective Date pursuant to the terms of this Agreement; and (ii) Guests and Hosts of the amount of TOT collected and remitted on each Booking Transaction. Additionally, the Parties agree that Airbnb may, at its discretion, notify Hosts of the specific provisions of paragraphs (1) and (J) of this Agreement. PROSPECTIVE TAX TREATMENT (L) Collection, reporting and remittance of TOT by Airbnb to the City under this Agreement shall begin on the Effective Date and shall continue until termination of this Agreement as provided herein. LIMITATION OF APPLICATION (M) This Agreement is solely for the purpose of facilitating the administration and collection of the TOT with respect to Booking Transactions and, except with respect to the rights and liabilities set forth herein, the execution and implementation of this WFinanceWlamh OrtegalTOT'Agreement - Airbnb TOT Collection.Doc Page 6 of 12 CONTRACT NO. C35370 Agreement by the Parties, including but not limited to, the collection and/or remittance of TOT, shall not be considered an admission or evidence of any issue of law or fact arising under the Code or any other provisions of the laws of the United States of America, State of California, or the City of Palm Desert. By entering into or acting pursuant to the terms of this Agreement, including but not limited to collecting and/or remitting TOT, neither the City nor Airbnb waives, and each Party expressly preserves, any and all arguments, contentions, claims, causes of action, defenses or assertions to, without limitation, (i) the validity of any construction of the Code; (ii) whether Airbnb is an "operator" as defined in Chapter 3.28 the Code; (iii) whether Airbnb is an operator or vendor for any other purpose under any other provision of state, local and/or federal law; (iv) whether Airbnb "charges" or "collects" "rent" or receives or otherwise comes into possession of taxable "rent" as those terms are used in Chapter 3.28 of the Code; or (v) whether any third party occupies a taxable "hotel" or "time-share occupancy" as used in Chapter 3.28 of the Code. The Parties to this Agreement represent, warrant and agree that by entering into and acting pursuant to this Agreement, neither Party waives, and each Party expressly preserves, any and all factual, legal or equitable arguments, contentions, claims, causes of action, defenses or assertions to, without limitation, construction or interpretation of the Palm Desert Municipal or any municipal, state or federal law or interpretation thereof as it relates to the responsibility or liability for collection and remittance of Transient Occupancy Taxes. Characterization, agreements, covenants and understandings set forth in this Agreement or in the Parties' actions pursuant to this Agreement exist only for purposes of this Agreement and only for the duration of this Agreement. MODIFICATIONS (N) No modification, amendment, or waiver of any provision of this Agreement shall be effective unless in writing and signed by the party against whom the modification, amendment or waiver is to be asserted. DURATION/TERMINATION (0) This Agreement shall apply to Booking Transactions made on or after the Effective Date and shall remain in effect unless terminated in accordance with paragraph (P) below. G:IFinanceWiamh OrtegalTOTlAgreement - Airbnb TOT Collection.Doc Page 7 of 12 CONTRACT NO. C35370 (P) This Agreement may be terminated by Airbnb or the City for convenience, provided that proper notice is given. Proper notice for the purposes of this paragraph means at least 30 days' written notification to the other party by certified or registered mail and, where either party seeks to terminate this Agreement, Airbnb shall use commercially reasonable efforts to, at least 30 days prior to the anticipated termination date, deliver e-mail notification to each Host then offering accommodations in the City through Airbnb's Platform that Airbnb will no longer be collecting and remitting TOT for Booking Transactions subject to this Agreement. Any termination under this paragraph shall not affect the duty of Airbnb to remit to the City any TOT collected from Guests up through and including the effective date of termination of this Agreement, even if not remitted by Airbnb to the City as of the date of termination. MISCELLANEOUS (0) CHOICE OF LAW; VENUE; ATTORNEY'S FEES. This Agreement, its construction and any and all disputes arising out of or relating to it, shall be interpreted in accordance with the substantive laws of the State of California without regard to its conflict of law principles. Such legal actions shall be instituted in the Superior Court of the County of Riverside, or in the U.S. District Court for the Central District of California. (R) MERGER AND INTEGRATION. This Agreement contains the entire agreement of the Parties with respect to the subject matter of this Agreement, and supersedes all prior negotiations, agreements and understandings with respect thereto. (S) COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and all of which, when taken together, shall constitute one and the same instrument. The Agreement shall become effective when a counterpart has been signed by each Party and delivered to the other Party, in its original form or by electronic mail, facsimile or other electronic means. The Parties hereby consent to the use of electronic signatures in connection with the execution of this agreement, and further agree that electronic signatures to this agreement shall be legally binding with the same force and effect as manually executed signatures. (T) CONFIDENTIALITY. Proprietary information will be kept confidential to the maximum extent allowed by law, except as otherwise required by law or pursuant to a G:IFinanceWiamh OrtegaITOTIAgreement - Airbnb TOT Collection.Doc Page 8 of 12 CONTRACT NO. C35370 valid judicial or administrative order. Nothing in this provision shall be read to abrogate the requirements of the City to comply with the Public Records Act or other mandatory or permissive disclosure provisions in local or California law. (U) RELATIONSHIP OF THE PARTIES; NO THIRD PARTY BENEFICIARIES. The Parties are independent contractors. This Agreement does not create nor is it intended to create a partnership, franchise, joint venture, agency, fiduciary, or employment relationship between the Parties. As set forth in paragraph (1) above, there are no third -party beneficiaries to this Agreement. (V) WAIVER AND CUMULATIVE REMEDIES. No failure or delay by either Party in exercising any right under this Agreement shall constitute a waiver of that right or any other right. Other than as expressly stated herein, the remedies provided herein are in addition to, and not exclusive of, any other remedies of a Party at law or in equity. (W) FORCE MAJEURE. Neither Party shall be liable for any failure or delay in performance under this Agreement (other than for delay in the payment of money due and payable hereunder) for causes beyond that Party's reasonable control and occurring without that Party's fault or negligence, including, but not limited to, acts of God, acts of government (except acts of the City pursuant to its enforcement authority under this Agreement and under law), flood, fire, civil unrest, acts of terror, strikes or other labor problems (other than those involving Airbnb employees), computer attacks or malicious acts, such as attacks on or through the Internet, any Internet service provider, telecommunications or hosting facility. Dates by which performance obligations are scheduled to be met will be extended for a period of time equal to the time lost due to any delay so caused. (X) ASSIGNMENT. Neither Party may assign any of its rights or obligations hereunder, whether by operation of law or otherwise, without the prior written consent of the other Party (which consent shall not be unreasonably withheld). Notwithstanding the foregoing, Airbnb may assign this Agreement in its entirety without consent of the other Party in connection with a merger, acquisition, corporate reorganization, or sale of all or substantially all of its assets provided the assignee has agreed to be bound by all of the terms of this Agreement and all past due remittances are or have been paid in full, and Airbnb provides notice to the City of any assignment or merger no later than G:IFinanceWiamh OrtegaITOTlAgreement - Airbnb TOT Collection.Doc Page 9 of 12 CONTRACT NO. C35370 twenty-one (21) days after the effective date of that assignment and assumption or other Agreement to the City, which shall have the name and contact information of the assignee. Any attempt by a Party to assign its rights or obligations under this Agreement in breach of this section shall be void and of no effect. Subject to the foregoing, this Agreement shall bind and inure to the benefit of the Parties, their respective successors and permitted assigns. (Y) SEVERABILITY. If any provision of this Agreement is held by a court of competent jurisdiction to be contrary to law, the provision shall be modified by the court and interpreted so as best to accomplish the objectives of the original provision to the fullest extent permitted by law, and the remaining provisions of this Agreement shall remain in effect. NOTICES (Z) All notices under this Agreement shall be in writing and shall be deemed to have been given upon: (i) personal delivery; (ii) the third business day after first class mailing postage prepaid; or (iii) the second business day after sending by overnight mail or by facsimile with telephonic confirmation of receipt. Notices shall be addressed to the attention of the following persons, provided each Party may modify the authorized recipients by providing written notice to the other Party: To Airbnb: Airbnb, Inc. Attn: Deputy General Counsel 888 Brannan Street, 4th Floor San Francisco, CA 94103 Email: legal @airbnb.com With a copy to: Airbnb.com Attn: Global Head of Tax Tax Department 888 Brannan Street, 4th Floor San Francisco, CA 94103 Email: tax@airbnb.com To the City: The City of Palm Desert Finance Department G:IFinanceftamh Ortega l TOTL4greement - Airbnb TOT Collection.Doc Page 10 of 12 CONTRACT NO. C35370 Attn: Director of Finance 73-510 Fred Waring Drive Palm Desert, CA 92260 Fax: (760) 340-0574 Email: jmoore@cityofpalmdesert.org NON -LIABILITY OF CITY OFFICERS AND EMPLOYEES (AA) No officer, official, employee, agent, representative, or volunteer of the City shall be personally liable to Airbnb, or any successor in interest, in the event of any default or breach by the City for any amount which may become due to Airbnb or to its successor, or for breach of any obligation of the terms of this Agreement. AUTHORITY TO EXECUTE AGREEMENT (BB) The persons executing this Agreement on behalf of each of the Parties hereto represent and warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other agreement to which said Party is bound. (Signatures follow on next page) GlFinancelNiamh OrtegaITOTIAgreement - Airbnb TOT Collection.Doc Page 11 of 12 CONTRACT NO. C35370 IN WITNESS WHEREOF, Airbnb and the City have executed this Agreement effective on the date set forth in the introductory clause. M 0 AIRBNB, INC., a Delaware corporation Signature Print Name and Title CITY OF PALM DESERT JUSTIN MCCARTHY INTERIM CITY MANAGER REVIEWED AS TO FORM: ROBERT W. HARGREAVES, CITY ATTORNEY BEST, BEST & KRIEGER, LLP ATTEST: RACHELLE KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA GlFinancelNiamh OrtegaITOTIAgreement - Airbnb TOT Collection.Doc Page 12 of 12