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HomeMy WebLinkAboutSHORT-TERM RENTALS RFP I Y 0 Pfl1M 01 1 R I 73-5 l o FKru WAKIXG DKn r PALM DesEKT. CALIF0RNIA 92260-2579 TEL: 760 346-o6ri inks• citcofpalmdcscrt.or�; April 27, 2018 John Spencer, CEO Bear Cloud Software Post Office Box 302362 Austin, Texas 78703 Dear Mr. Spencer: Subject: Contract No. C36950 — 14-Month Professional Services Agreement for Short-Term Rentals (STR) Monitorinq, Compliance, and Enforcement Services At its regular meeting of April 26, 2018, the Palm Desert City Council, by Minute Motion: 1) Awarded subject 14-month Professional Services Agreement for Short-Term Rentals (STR) monitoring, compliance, and enforcement services to Bear Cloud Software/STR Helper, Austin, Texas, in the amount of$33.500. 2) Authorized City Manager to approve extra expenses not to exceed 20% of the total contract amount, or $6,700 for ancillary services throughout initial term of the Agreement. 3) Authorized the Mayor to execute said contract, subject to the final review and approval of the City Attorney. Enclosed are two original Agreements. Please sign where indicated, have notarized (California All-Purpose Acknowledgment), and return them to us at your earliest convenience. We will then forward to you a fully executed Agreement for your records. Additionally, we call your attention to the insurance requirements that are contained within the agreement. We ask that the information be returned as specified in the agreement to expedite processing of the document. CONTRACT NO. C36950 SHORT-TERM RENTAL COMPLIANCE SOFTWARE CITY OF PALM DESERT PROFESSIONAL CONSULTANT SERVICES AGREEMENT 1. PARTIES AND DATE. This Agreement is made and entered into this day of April 26, 2018, by and between the City of Palm Desert, a municipal corporation, organized under the laws of the State of California, with its principal place of business at 73-510 Fred Waring Drive, Palm Desert, California, 92260 ("City") and Bear Cloud Software, a Delaware Corporation with its principal place of business at 1510 W 341" St., Suite 201, Austin, TX 78703 ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties." 2. RECITALS. 2.1 Consultant. Consultant desires to perform and assume responsibility for the provision of certain professional short-term rental compliance consulting services required by the City on the terms and conditions set forth in this Agreement. Consultant represents that it is experienced in providing professional short-term rental compliance consulting services to public clients, is licensed in the State of California, and is familiar with the plans of City. 2.2 Project. City desires to engage Consultant to render such professional short-term rental compliance consulting services for the Palm Desert Short Term Rental Compliance Initiative project ("Project") as set forth in this Agreement. 3. TERMS. 3.1 Scope of Services and Term. 3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional short-term rental compliance consulting services necessary for the Project("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. 3.1.2 Term. The term of this Agreement shall be from May 1, 2018 to June 30, 2019, unless earlier terminated as provided herein. The City shall have the unilateral option, at its sole discretion, to renew this Agreement automatically for no more than two (2) additional one-year terms. Consultant shall complete the Services within the term of this 1 CONTRACT NO. C36950 Agreement, and shall meet any other established schedules and deadlines. 3.2 Responsibilities of Consultant. 3.2.1 Independent Contractor: Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee. Consultant retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant's exclusive direction and control. Neither City, nor any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. 3.2.2 Schedule of Services. Consultant shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit "B" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Consultant's conformance with the Schedule, City shall respond to Consultant's submittals in a timely manner. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services. 3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City. 3.2.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the City, or who are determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the Consultant at the request of the City. The key personnel for performance of this Agreement are as follows: Bob Peterson, Project Manager; John Spencer, CEO, Kenny Jacobson, CTO. 3.2.5 City's Representative. The City hereby designates Ryan Stendell, Director of Community Development, or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative"). Consultant shall not accept direction or orders from any person other than 2 CONTRACT NO. C36950 the City Manager, City's Representative or his/her designee. City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant, but not the authority to enlarge the Scope of Work or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which increase the Scope of Work or change the Consultant's total compensation, subject to the provisions contained in Section 3.3 of this Agreement. 3.2.6 Consultant's Representative. Consultant hereby designates John Spencer, or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement. 3.2.7 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants and other staff at all times. 3.2.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Finally, Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided for herein. Any employee of the Consultant or its sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project. 3.2.9 Laws and Regulations. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with Services. If Consultant performs any work knowing it to be contrary to such laws, rules and regulations, Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify and hold City, its officials, directors, officers, employees, agents, and volunteers free and harmless, pursuant to the 3 CONTRACT NO. C36950 indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations. 3.2.10 Insurance. Without limiting Consultant's indemnification of City, and prior to commencement of Work, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form that is satisfactory to City. General Liability Insurance. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO "insured contract" language will not be accepted. Automobile Liability Insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. Professional Liability (Errors & Omissions) Insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this agreement and Consultant agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this agreement. Workers' Compensation Insurance. Consultant shall maintain Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Insurance (with limits of at least $1,000,000). Consultant shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City of Palm Desert, its officers, agents, employees and volunteers. Umbrella or Excess Liability Insurance. Consultant may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Consultant may obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer's liability. Such policy or policies shall include the following terms and conditions: • A drop down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; • Pay on behalf of wording as opposed to reimbursement; • Concurrency of effective dates with primary policies; and 4 CONTRACT NO. C36950 • Policies shall "follow form"to the underlying primary policies. • Insureds under primary policies shall also be insureds under the umbrella or excess policies. OTHER PROVISIONS OR REQUIREMENTS Proof of Insurance. Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers' compensation. Insurance certificates and endorsements must be approved by City's Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this contract. City reserves the right to require complete, certified copies of all required insurance policies, at any time. Duration of Coverage. Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by Consultant, his/her agents, representatives, employees or sub consultants. Primary/Non-Contributing. Coverage provided by Consultant shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non- contributory basis for the benefit of City before the City's own insurance or self-insurance shall be called upon to protect it as a named insured. City's Rights of Enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant, or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City of Palm Desert, its elected or appointed officers, agents, officials, employees and volunteers, or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against the City of Palm Desert, its elected or appointed officers, agents, officials, employees and volunteers, and shall require similar written express waivers and insurance clauses from each of its sub-contractors. 5 CONTRACT NO. C36950 Enforcement of Contract Provisions (non estoppel). Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non- compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. Notice of Cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. Additional Insured Status. General liability and automobile liability policies shall provide or be endorsed to provide that the City of Palm Desert and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies. Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer's limits of liability. The policy(ies) shall not contain any cross-liability exclusions. Pass Through Clause. Consultant agrees to ensure that its sub-consultants, sub- contractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage and endorsements required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with consultants, sub-contractors, and others engaged in the project will be submitted to City for review. City's Right to Revise Specifications. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City and Consultant may renegotiate Consultant's compensation. 6 CONTRACT NO. C36950 Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City. Timely Notice of Claims. Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant's performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. Additional Insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work. Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. 3.3 Fees and Payments. 3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed thirty-three thousand five hundred dollars ($33,500) without authorization of the City Council or City Manager, as applicable, per the Palm Desert Municipal Code. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement. These services shall include services related to training, support and compliance letter mailing. Particularly with respect to mailings, Bear Cloud will manage the development and fulfillment of up to 2,000 non-compliance letters annually, including all related labor, printing, first class postage and level 1 support calls related to the those letters. Additional increments of 500 letters may be purchase for $1,000 per increment. The City agrees to take on all enforcement measures. 3.3.2 Payment of Compensation. Payment shall be remitted on a net 60 days basis upon completion of the upload of GIS data in support of the on-going validation process. Consultant shall submit to City a monthly invoice which indicates work completed and hours of Services rendered by Consultant. The invoice shall describe the amount of Services provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the invoice. City shall, within 30 days of receiving such invoice, review the invoice and pay all non-disputed and approved charges thereon. If the City disputes any of Consultant's fees, the City shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein. 7 CONTRACT NO. C36950 3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City, or included in Exhibit"C"of this Agreement. 3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform, nor be compensated for, Extra Work without authorization from the City Council or City Manager, as applicable, per the Palm Desert Municipal Code. 3.3.5 Rate Increases. In the event that this Agreement is renewed pursuant to Section 3.1.2, the rate set forth in Exhibit "C" may be adjusted each year at the time of renewal as set forth in Exhibit "C." 3.3.6 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant's principal place of business and at the project site. Consultant shall defend, indemnify and hold the City, its officials, officers, employees, agents, and volunteers free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. 3.4 Accounting Records. 3.4.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 3.5 General Provisions. 3.5.1 Termination of Agreement. 3.5.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been 8 CONTRACT NO. C36950 adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause. 3.5.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request. 3.5.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 3.5.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose: Consultant: Bear Cloud Software PO Box 302362 Austin, TX 78703 ATTN: John Spencer, CEO City: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 ATTN: Kevin Swartz Such notice shall be deemed made when personally delivered or when mailed, forty- eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 3.5.3 Ownership of Materials and Confidentiality. 3.5.3.1 Documents & Data, Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings and data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents & Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk. 9 CONTRACT NO. C36950 3.5.3.2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City. 3.5.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate, or convenient to attain the purposes of this Agreement. 3.5.5 Attorney's Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney's fees and all other costs of such action. 3.5.6 Indemnification. 3.5.6.1 Scope of Indemnity. To the fullest extent permitted by law, Consultant shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant's Services, the Project or this Agreement, including without limitation the payment of all consequential damages, expert witness fees and attorneys fees and other related costs and expenses. Notwithstanding the foregoing, to the extent Consultant's Services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. 3.5.6.2 Additional Indemnity Obligations. To the fullest extent permitted by law, Consultant shall defend, with counsel of City's choosing and at Consultant's own cost, expense and risk, any and all claims, suits, actions or other proceedings of every kind covered by Section 3.5.6.1 that may be brought or instituted against City or its directors, officials, officers, employees, volunteers and agents. Consultant shall pay and satisfy any judgment, award or decree that may be rendered against City or its directors, officials, officers, employees, volunteers and agents as part of any such claim, suit, action or other proceeding. Consultant shall also reimburse City for the cost of any settlement paid by City or its directors, officials, officers, employees, agents or volunteers as part of any such claim, suit, action or other proceeding. Such reimbursement shall include payment for City's attorney's fees and costs, including expert witness fees. Consultant shall reimburse City and 10 CONTRACT NO. C36950 its directors, officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its directors, officials officers, employees, agents, or volunteers. 3.5.7 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties. 3.5.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County. 3.5.9 Time of Essence. Time is of the essence for each and every provision of this Agreement. 3.5.10 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project. 3.5.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties. 3.5.12 Assignment or Transfer. Consultant shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer. 3.5.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement. 3.5.14 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. 3.5.15 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise. 11 CONTRACT NO. C36950 3.5.16 No Third-Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties. 3.5.17 Invalidity: Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.5.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. 3.5.19 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. 3.5.20 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation, or to undertake self- insurance in accordance with the provisions of that Code and agrees to comply with such provisions before commencing the performance of the Services. 3.5.21 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party. 3.5.22 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original. 12 CONTRACT NO. C36950 3.6 Subcontracting. 3.6.1 Prior Approval Required. Consultant shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. CITY OF PALM DESERT BEAR CLOUD SOFTWARE By: By: Sabby Jonathan, Mayor John Spencer, CEO ATTEST: By: Rachelle D. Klassen, City Clerk City of Palm Desert, California APPROVED AS TO FORM: By: Robert W. Hargreaves, City Attorney Best, Best, & Krieger, LLP 13 CONTRACT NO. C36950 EXHIBIT "A" SCOPE OF SERVICES Provide the City with a full range of professional support services in the implementation and ongoing administration of including, but not limited to, the following tasks. 1. Monitoring and analyzing Palm Desert's short-term rental market. 2. Create and maintain a database of STR units (both permitted and non-permitted). 3. Aggregation of non-duplicative short-term rental listings for STR properties operating in Palm Desert from short-term rental websites. 4. Quick and accurate identification of STR properties in the City including identification of the exact physical addresses, unit numbers, and parcel numbers. 5. Differentiation of monitoring and enforcement activities based on the different requirements dictated by the City's zoning and related municipal code regulations. 6. Pictures of full-resolution, full screen screenshots of all active STR listings in the City on a weekly basis. Provide a link to the website of the STR properties advertised in the City. 7. Provide an easy to use interface for STR market data, allowing City staff to search, correct, and append additional information to identified address matches. 8. Accurately and continuously, cross-reference STR database of active STRs with the City's database of registered STRs. 9. Identify Transient Occupancy Tax (TOT) under-reporting based on publicly available information. 10. Provide a 24/7, 365-day telephone hotline service for reporting of alleged violations of municipal codes related to STRs and work with the City's Code Compliance Division. Relay content of calls received to appropriate parties (STR owner, STR manager, Code Compliance Officer (or message phone), and police) within ten minutes of receipt of call. 11. Accept from complainants and share with City evidence of alleged STR ordinance violations (i.e. video, photo, and audio evidence). 12. Provide City personnel 24/7 access to the City's STR related data and services through a secure web interface. 14 CONTRACT NO. C36950 EXHIBIT "A-I" FEDERALLY REQUIRED PROVISIONS FOR SERVICES Product includes: • STR Helper, including 2 Salesforce Licenses • Complaint, Listings, Tax and Registration Portals • Integration to Superion Trakit Licensing system' • Reporting Modules covering Listings, Compliance, Tax and Nuisance Property Reporting • Calendaring Option for occupancy data • Discovery of all existing advertised short term rentals, creating a baseline of advertised inventory in Palm Desert • US-based, human validation of EVERY advertised rental, meaning we can map every advertised rental to a parcel id in the county assessor database, including local property management sites in addition to HomeAway, VRBO, Airbnb, TripAdvisor/Turnkey, et. al. • Filtering of advertised rentals that do not qualify as short term rentals (for example, bed and breakfasts, hotel rooms, etc.) • Elimination of duplicate listings between sites This bid also includes Platinum Level Support, which includes • Normalization of GIS data within the STR Helper schema— we will import the data from your GIS/County Assessor system and format it to our data structure. • On-going validation of newly discovered properties • Custom Reporting support • On-going property validation • 24 x 7 x 365 complaint hotline • Unlimited remote training • Named support contact • Manage all mailing on behalf of the city (includes all postage and materials) • Phone support for Palm Desert residents needing help with registration 15 CONTRACT NO. C36950 EXHIBIT "B" SCHEDULE OF SERVICES Implementation plan Below is an outline for implementation of SRT Helper. In Stage 1, we will define a detailed project timeline. Implementation timeline is affected by a number of details including GIS data availability, permitting system integration issues, local sites to be supported, etc. All of these issues are identified and in Stage 1 and a timeline is developed. Typically, implementations range from 4-6 weeks. Stage 1 — Project Kickoff— 1 day Municipality Deliverables: • Discussion about project objectives, quantifiable goals and requirements • A primary contact person to STR Helper • Identification of all local short term rental sites (local sites) that need to be included in monitoring • Details on third party integrations required STR Helper Deliverables: • STR Helper will create a project team which will include the following resources: project manager, development resources, testing recourses and validator technicians. The project manager is the primary contact person for the municipality. • Project plan including timelines, implementation priorities, etc. Stage 2 — Parcel Data Normalization —Variable but typically 1 week This is the baseline data that STR Helper will use to identify short-term rentals listings from the national hosting sites like HomeAway and Airbnb as well as the local sites that pertain to just Maui. Municipality Deliverables: • Parcel Data File The following parcel data is usually acquired from the County's Assessors office or from the city's planning department. In most cases the data is downloaded from the county's Geographic Information Systems (GIS). The data file needs to be delivered to STR Helper in a format that can be imported into Microsoft Excel. Required Fields Optional Fields A - Parcel Number L - Number of Bathrooms B - Owner Name 1 M - Number of Bedrooms C - Owner Name 2 N - Number of Garage Stalls D - Mailing Street Address O - Property Latitude E - Mailing City P - Property Longitude F - Mailing State Q - Property Lot Size Sq Ft G - Mailing Zip Code R - Property Nickname H - Property Street Address S - House Size Sq Ft I - Property City T - Year Constructed 16 CONTRACT NO. C36950 J - Property State U —Zone K - Property Zip Code STR Helper Deliverables: • Normalization of the parcel data file, uploaded to the STR Helper database. • Development and configuration of the nightly batch process. This process identifies internet listing from 20+ national hosting sites. • Mapping the municipality's boundary's including the latitude and longitude of each property. Stage 3— Deploy Project to Test — 1 day Municipality Deliverables: • No deliverable to STR Helper unless municipality is going to assist in validation of internet listings. If this is the case then training of municipality resources need to be scheduled. STR Helper Deliverables: • Code is deployed from the development environment to the test environment. • Quality Assurance signoff that the software is ready for production rollout. Stage 4— Deploy Project to Production — 1 day Municipality Deliverables: • No deliverable to STR Helper STR Helper Deliverables: • STR Helper is rolled to production. • Logins are created for municipality's users Stage 5—Listing Validation and Training —3-4 weeks, then on-going Municipality Deliverables: • No deliverable to STR Helper STR Helper Deliverables: • STR Helper will deploy validator technicians to start the validation process. Stage 6 — Registrations/ Mail Merge/Web Portals/Tax and Custom Reports—2 weeks, variable Municipality Deliverables: These are optional features within STR Helper. If any of these features are to be deployed, then the following artifacts are required: STR Registrations (Permits or Licenses) • Data file containing all STR registrations and property managers. Registration data file must include parcel ID number and address. 17 CONTRACT NO. C36950 Mail Merge • 6 letters can be uploaded into STR Helper. Microsoft Word file format is preferred. • Logo files. JPG format is preferred. Web Portals • No deliverable to STR Helper unless customization work is needed to the standard web layouts Tax and Custom Reports • Data and report requirements are needed for tax and custom reports. Calendaring and Reviews • No deliverable to STR Helper. STR Helper Deliverables: • For each of the features listed above, STR Helper will assign development, quality assurance, and training resource to deploy the agreed upon features and software customizations. Stage 7—Training & Support— 2 days Municipality Deliverable: • List of e-mail addresses for login Ids to STR Helper production environment. STR Helper Deliverable: • Webinar trainings for STR Helper features • Support e-mail address (support@strhelper.com) Best efforts to answer e-mail questions within 12 hours. • On Site training is available for a fee. 18 CONTRACT NO. C36950 EXHIBIT "C" COMPENSATION In the event that this Agreement is renewed pursuant to Section 3.1.2, the rates set forth above may be increased or reduced each year at the time of renewal, but any increase shall not exceed the Consumer Price Index, All Urban Consumers, Riverside, San Bernardino, and Ontario. Base Cost amount: $33,500 Extra Work Pricing Schedule Type Units Cost Additional letters 500 $1,000 Additional on-site training 1 person $750 per day Additional Salesforce 1 person $250 Services as directed 1 hour $150 Maximum Cost amount: $40,200 19 Sanchez, Gloria From: Sanchez, Gloria Sent: Monday, August 13, 2018 4:24 PM To: 'cecilieskriver@hotmail.com' Cc: Swartz, Kevin Subject: FW: PRAR - C.Jensen - C36950 Bear Cloud Software and All Other Proposals Rcvd - Short-term Rental (STR) Monitoring, Compliance, & Enforcement Svcs Attachments: C36950 - Executed Agreement.pdf, C36950 - Bear Cloud Software.pdf; C36950 - Host Compliance.pdf; C36950 - LTAS Technologies Inc..pdf PLEASE CONFIRM RECEIPT OF THIS E-MAIL PUBLIC RECORDS ACT REQUEST Good afternoon Ms. Jensen, Attached are a fully executed copy of Contract No. C36950 with Bear Cloud Software and the two other proposals received for short-term rental (STR) monitoring, compliance, and enforcement services. If you have any questions or require additional information, please do not hesitate to contact me. It is a pleasure to be of assistance and have a nice day. M. Gloria Sanchez Management Specialist II Ph: 760.346.0611 Direct: 760.776.6354 gsanchez@cityofpalmdesert.org (s ; z'. www.cityofpalmdesert.org " Install the Palm Desert In Touch app to stay in touch with your community Android Apple Mobile Web From: Sanchez, Gloria Sent: Thursday, July 26, 2018 6:24 PM To: 'cecilieskriver@hotmail.com' Subject: PRAR - C.Jensen - C36950 Bear Cloud Software and All Other Proposals Rcvd - Short-term Rental (STR) Dear Ms. Cecilie Jensen, The City of Palm Desert prides itself in providing above excellent service and always strives to minimize the turnaround time for records request. However, from time to time research is needed and as a result may require additional time. Therefore, I write to notify you additional time is needed to reproduce the records 1 responsive to your request. I anticipate having the documents to you no later than Monday, August 13, if not sooner. In the meantime, if you have any questions or require additional information, please do not hesitate to contact me. u M. Gloria Sanchez Management Specialist II ,. Ph: 760.346.0611 Direct: 760.776.6354 gsanchez@cityofpalmdesert.org 73-5 10 Fr6€t want (),eve, Paim desert, A 2*6 :F www.cityofpalmdesert.org Install the Palm Desert In Touch app to stay in touch with your community Android Apple Mobile Web 2 City of Palm Desert Request for Proposal Professional Consulting Services / Systems for Short-Term Rental Monitoring &Enforcement City of Palm Desert 73510 Fred Waring Drive Palm Desert, California 92260 Kevin Swartz, Associate Planner (760) 346-0611 February 1, 2018 City of Palm Desert RFP: STIR Professional Compliance Services Page 1 Statement of Purpose The City of Palm Desert invites proposals from qualified firms to provide professional services and systems in support of Short-Term Rental (STR) monitoring and enforcement with a focus on the following areas: identification of STRs including full name of owner and physical address of STR, estimated revenues generated by the STR property with supporting evidence, links to online advertisements or postings for the STR, and providing a 24/7 complaint hotline and monitoring service for noise and other operational requirements per Palm Desert Municipal Code Chapter 5.10 Short-Term Rentals. City Background ound The City of Palm Desert (City) is a thriving community of approximately 50,000 full-time and 32,000 seasonal residents. The City is located in the Coachella Valley in eastern Riverside County, part of the low desert region of Southern California. The City features big-city resources in a friendly, small-town setting, offering first class shopping and dining opportunities, safe and clean streets, educational opportunities, as well as plentiful community events. Palm Desert is considered the geographical, educational, and retail center of the Coachella Valley. Incorporated in 1973, the City operates under the Council-Manager form of government. Palm Desert contracts for many services. Public Safety services are provided through Riverside County, while park operations and recreational activities are contracted through the Desert Recreation District. Additional services are provided by an array of private and public contract partners. In 2012, the City Council added Chapter 5.10 Short-Term Rentals, and repealed requirements of STRs from Chapter 25 -Zoning that required a Conditional Use Permit (CUP). The creation of the STR Ordinance allowed homeowners to rent their home for fewer than 27 consecutive days with a three-day, two-night minimum stay, without going through a public hearing to obtain a CUP. STRs have grown rapidly throughout the nation and within the Coachella Valley, facilitated by online rental platforms such as Airbnb, HomeAway, Craigslist, FlipKey, and VRBO. While they do not need a CUP, property owners are legally required to obtain a special permit from the City to utilize their property as an STR. There are currently many required steps, including providing a 24-hour contact and acknowledging receipt of the "Good Neighbor Brochure" prior to renting a residence. There are approximately 1,228 permitted STR units currently operating in the City, and they are divided up into four residential zoning districts. Following is a chart showing the zoning districts, total number of residential units within each district, total number of known STRs, and percentages within each district. City of Palm Desert RFP: STR Professional Compliance Services Page 2 Zoning Total Residential Total STR Permits STRs as % of Designation Units Residential Units P.R. (Planned 24,010 840 3.5% Residential R-1 (Single-Family 3,977 212 5.3% Residential R-2 (Mixed 1,893 64 3.4% Residential R-3 (Residential 1,667 46 2.7% Multiple Family) Over the last two years, there has been a general uptick in permit issuance. STRs have become a popular way for owners and investors to convert single-family homes into significant revenue generators. While this could be a benefit for some, it is causing a disturbance for many homeowners within the R-1 and R-2 zones. Residents have become increasingly vocal in asserting that STRs are disrupting their quality of life and changing the character of their neighborhoods. Because of this and the recent STR regulatory activity in neighboring cities, on January 12, 2017, the City Council established a yearlong temporary moratorium on the issuance of STRs. The Council also directed staff to form a committee to further study the impacts of STRs within the City. After studying the impacts of STRs within the City, on December 14, 2017, the City Council approved amendments to the existing STR Ordinance. The amendments focused on enforcement, communication between owners and neighbors, operational standards, and zoning requirements. Below is a summary. Enforcement/Penalties The goal was to increase its enforcement efforts by proposing to increase the fines for any type of violation. The fines will extend to the operator, occupant, and owner. The existing ordinance had fines in the amounts of$250, $500, and $1,000. The new fines are as follows. • First citation is $1,000. • Second citation for the same offense within a 12-month period of the date of the first offense is $3,000. • Third citation within a 12-month period of the date of the first offense is $5,000 and an immediate revocation of the STR permit for a period of two years. The amendments also included a fine for violators who are operating an STR without a valid permit up to $5,000 for the first citation and each additional citation. The City has the right to refuse the issuance of any new or renewed STR permit for the cited property and/or to the cited owner and/or operator anywhere else within the City. City of Palm Desert RFP: STR Professional Compliance Services Page 3 Additionally, the City has a contract with a swing shift Code Compliance Officer who works Thursday through Sunday from 4:00 p.m. to 1:00 a.m. This officer can respond promptly and assess the reported violation. Operational and Communication Requirements Prior to occupancy of an STR unit, the operator must comply with the following: • Meet and greet the renter on-site and obtain his or her name, address, and a copy of a valid government-issued identification. • Provide the renter with a copy of the Good Neighbor Brochure. • Provide the renter with information about the STR regulations. • Require the renter to execute a formal acknowledgment in the form acceptable by the City that he or she is legally responsible for compliance of all occupants of the STR unit and their guests, with all applicable laws, rules and regulations pertaining to the use and occupancy of the STR unit. Provide the Responsible Person with the Operator's 24-hour availability information. • Provide the renter with a copy of the maximum number of overnight occupants and the maximum number of daytime occupants as permitted pursuant to Chapter 5.10. • Provide the Responsible Person with a copy of trash pick-up day and applicable rules and regulations pertaining to leaving or storing trash on the exterior of the property. • Include in the Good Neighbor Brochure that no music will be played outdoors after 10:00 P.M. Allowable Zoning Districts The new ordinance prohibits new STRs within the R-1 and R-2 zones.All existing permitted STRs within the R-1 and R-2 zones have until December 31, 2019, to operate. After such date, all STRs will be prohibited within those zones. The City of Palm Desert is currently developing a process to consider requests for extensions under Municipal Code Section 5.10.070, which provides for STR permit renewals past the December 31, 2019 termination date, if necessary, to avoid an unconstitutional tasking. When the guidelines become available, a copy will be provided. On January 16, 2018, the above amendments along with the rest of Ordinance No. 1332 went into effect. The STR Ordinance and additional information on the City can be found on the City's website at www.cityofpaImdesert.org. Scope of Required Services The selected consultant shall work in partnership with the City to provide a full range of professional support services in the implementation and ongoing administration of including, but not limited to, the following tasks. City of Palm Desert RFP: STR Professional Compliance Services Page 4 1. Monitoring and analyzing Palm Desert's short-term rental market. 2. Create and maintain a database of STR units (both permitted and non-permitted). 3. Aggregation of non-duplicative short-term rental listings for STR properties operating in Palm Desert from short-term rental websites. 4. Quick and accurate identification of STR properties in the City including identification of the exact physical addresses, unit numbers, and parcel numbers. 5. Differentiation of monitoring and enforcement activities based on the different requirements dictated by the City's zoning and related municipal code regulations. 6. Capture of full-resolution, full screen screenshots of all active STR listings in the City on a weekly basis. Provide a link to the website of the STR properties advertised in City. 7. Provide an easy to use interface for STR market data, allowing City staff to search, correct, and append additional information to identified address matches. 8. Accurately and continuously, cross-reference STR database of active STRs with the City's database of registered STRs. 9. Identify Transient Occupancy Tax (TOT) under-reporting based on publicly available information. 10. Provide a 24/7, 365-day telephone hotline service for reporting of alleged violations of municipal codes related to STRs and work with the City's Code Compliance Division. Relay content of calls received to appropriate parties (STR owner, STR manager, Code Compliance Officer (or message phone), and police) within ten minutes of receipt of call. 11. Accept from complainants and share with City evidence of alleged STR ordinance violations (i.e. video, photo, and audio evidence). 12. Provide City personnel 24/7 access to the City's STR related data and services through a secure web interface. Proposal Form and Content The proposals should not include material to be returned to the consultant and should be a concise statement. Each proposal must include the following information 1. Organization, Credentials, and Experience a) Provide a summary of the company's qualifications, credentials, and related past experience. b) Describe the size of the company; indicate the principal, company official, project manager, as well as other personnel who will be assigned to the project. c) Provide a list of ten (10) of the company's similar clients including the names, titles, addresses, and telephone numbers of the appropriate persons which the City can contact. City of Palm Desert RFP: STR Professional Compliance Services Page 5 2. Understanding of the Scope of Work/Project Provide a narrative of the company's understanding of the Scope of Required Services and proposal to complete the project. In addition, any recommendations for an enhanced program based on the firms experience in other jurisdictions. 3. Professional Services Agreement A written acknowledgement that the selected provider will use and comply with the terms and conditions of the City's standard Professional Services Agreement as provided in Attachment 1 of this RFP. 4. Compliance A written statement that the Consultant shall comply with applicable federal and state laws, including labor laws. 5. Litigation A list of past, current, or pending litigation resulting from professional services rendered over the past five (5) years. If a court or an arbitrator rendered a decision, state the results. 6. References Provide a minimum of ten (10) references for current or recent projects within the last two years of similar scope and content. 7. Fees a) Under Separate Cover, provide a rate proposal for the project based on the Scope of Required Services. The cost proposal shall be identified for each task. b) The proposed cost budget shall present the labor rates and proposed labor hours of proposed staff for each work task described in the consultant's proposal, as well as other direct costs. Clearly show the assumed duration of services. c) The labor costs of the prime consultant and cost of each sub consultant shall be presented in the proposed budget. The total proposed budget shall include consultant's assumptions regarding labor rate increases over the assumed duration of services. d) The proposal shall contain a breakdown of the anticipated costs by task. City of Palm Desert RFP: STR Professional Compliance Services Page 6 8. Timeline Provide a schedule identifying all tasks and subtasks to be performed. Indicate the total time required to implement the tasks and prepare for ongoing administration. Proposal Procedure Clarifications: The City will respond to requests for clarification to the Request for Proposal (RFP) in written RFP Addendum(s) as needed. Inquiries should be directed by email only to kswartz@cityofpalmdesert.org. No verbal requests will be accepted. All requests for clarification must be received by February 16,2018. Please submit six (6) sealed bids (please print, "Do not open with regular mail" on the envelope) printed and bound copies of your proposal to: Kevin Swartz, Associate Planner City of Palm Desert 73510 Fred Waring Drive Palm Desert, CA 92260 All proposals are due no later than 4:00 p.m. on Friday, March 2, 2018. Time Schedule • Solicit for Proposals 2/1/2018 • Last Day to Submit Questions 2/16/2018 • Last Day for City to Respond to Questions 2/23/2018 • Proposal Deadline 3/2/2018 • Notification of Shortlisted Firms (optional) Week of 3/12/2018 • Conduct Interviews with Shortlisted Firms (optional) Week of 3/19/2018 • Negotiate Agreement Following Ranking • Award of Contract To Be Announced The above dates are approximate and are subject to change at the City's discretion. Response Preparations: No reimbursement will be made by the City for costs incurred in the preparation of the response to this Request for Proposal. Submitted materials will not be returned and become the property of the City of Palm Desert. Right to Reject Proposals: Submission of a proposal indicates acceptance by the firm of the conditions contained in this Request for Proposal unless clearly and specifically noted in the proposal submitted and confirmed in the agreement between the City of Palm Desert and the firm selected. The City of Palm Desert reserves the right, without prejudice, to reject any or all proposals. City of Palm Desert RFP: STR Professional Compliance Services Page 7 Response to Palm Desert, CA - Request for Proposal Response (Pricing Excluded) — Professional Consulting Services/Systems for Short-Term Rental Monitoring & Enforcement Prepared by: Bear Cloud Software John Spencer February 15, 2018 (956) 748-9193 johnspencer@strhelper.com www.strhelper.com Table of Contents Introduction and Executive Summary.....................................................................2 The Problem, The Solution, The Inherent Limitations..........................................4 Organization, Credentials and Experience.............................................................9 References................................................................................................................14 Detailed Requirements Response.........................................................................17 ImplementationPlan..............................................................................................30 Statements of Compliance.....................................................................................33 Conclusion................................................................................................................34 Introduction and Executive Summary STIR Helper is the leading software platform for managing short term rental compliance. We have worked with over 50 cities and municipalities over the last two years to provide comprehensive services for identifying all short term rentals in a municipality, identifying property address, identifying ownership mailing address, identifying non-filers for applicable occupancy taxes and estimating underpayment. The foundation of our offering is STR Helper, the cloud-based, secure platform for a myriad of services related to short term rental compliance. The platform supports a series of services, all of which will be described in detail, including: • Property discovery and identification, including physical address identification, unit number, parcel id and owner contact information, with demonstrably unequaled accuracy • Communications including automated letter generation and emergency contact communication • Comprehensive reporting on over 600 str attributes, including but not limited to all str's, str's by zone, unpermitted str's, permitted str's, etc. • Occupancy, calendaring and revenue services enabling automated tax compliance reporting and decision support • A set of comprehensive API's for integration to the broader enterprise • Noise, trash and parking compliance services, including an on-line portal as well as a 24 x 7 x 365 hotline. Both the portal and the hot line complaints are fully integrated to the core reporting services in the platform and to the property history file. • The most robust license management, tax compliance and noise/trash/parking management available • A platform architected from the ground up for unmatched security, scalability and extensibility Other companies will attempt to reduce this set of complex services to a simple checkbox approach. No other product has the breadth and depth of services provided by STIR Helper. If you look beneath the sheets, so to speak, this will become obvious and our track record against every major competitor proves it. It is often said that there is more to the product than just the product. I emphasize throughout this document that this is not conventional software. We do not come in, install and configure the software and leave. This requires on-going communication and project management. We have done this many, many times and have learned this lesson over and over again. We have built both a culture and a service offering designed to ensure on-going communication and service. Don't ask us—ask our customers. They will tell you the same. We have never had a non-renewal and we have several customers that have come to us after having tried other systems. This is not bravado— it is a fact. 2 Supplementing our product and support is a group of founders and employees that we have drawn from enterprise software, municipal government and academia. We are not consultants —we are engineers and technologists who have worked in and around municipal government for years. We understand both the opportunities and the inherent limitations to what we are doing. We understand the operations of city governments and how they apply particularly to short term rentals. We have worked with dozens of cities to implement a wide array of solutions. Our product is a platform that can be fashioned to support the nuances of the local situation and can provide both latitude and headroom for future expansion. I believe this document will prove that out. The Problem, The Solution, the Inherent Limitations Many of the problems discussed in the rfp and in the pre-rfp meeting in Palm Desert are standard short term rental problems that STR Helper has solved many times and is uniquely architected to solve. Other problems mentioned however, have inherent limitations to the solutions available to us. It is important as we begin this document to outline the problem as we understand it, to describe why our solution is uniquely able to solve the problem and the inherent limitations that neither STR Helper nor anybody else can definitively solve. The Calendaring Option The attached price proposal includes support for the STR Helper Calendaring option. The calendaring option, as the name suggests, is able to disaggregate the calendar for a given property. Among other things, this allows us to enforce minimum stay requirements, which is part of the palm Desert ordinance. However, it does not provide comprehensive proof of taxable occupancy. Tax compliance To begin with, the rfp points to the desire to report on tax compliance. The discussion about tax compliance needs to be split into two categories: non-payment and under-payment. But before delving into that, we should understand the methods that enable the foundation for tax compliance. The fundamental discovery and identification of short term rentals is a well understood solution that we have solved in many places, with a variety of layouts. For example, consider South Padre Island, Vail, CO or Bay County, FL, all of which are dominated by high rise condominiums. Often times condominiums do not feature external shots in their advertisements. Rather they feature interior shots that do noting to indicate location We have been able through a variety of proprietary techniques, to discover and manage the discover and permit compliance of all short term rentals in these cities. By contrast, consider Indio, CA, Palm Desert's neighbor, a city dominated by single family homes, which presents other difficult identification challenges— gated communities and architectural similarity in many neighborhoods despite a proliferation 3 of single family homes. In both cases, as well as dozens and dozens of others, our accuracy rate approaches 100%. We have not misidentified a single property in the previous examples. No other system on the market can come close to making that claim. Our accuracy is rooted in comprehensive, US-based methods for identifying and validating those properties, and quality control processes designed to identify any mistakes. This includes the ability for the city to supplement validation, manually add properties or override any decision. Once properties are discovered, we then tie that listing to county GIS data, ensuring that we know not only the physical address of the property, but also that we know the mailing address of the owner. In other cities that have used other products the results of letters of non- compliance being delivered only to the address of the property being advertised are well documented. In our architecture, this never happens. Our GIS-integrated approach also allows us to detect changes in ownership. In a city like Palm Desert, there will be inevitable turnover of properties. STIR Helper detects and manages changes in ownership. This GIS synchronization can be done on an automated or scheduled basis. With a full roster of advertised properties tied to county GIS data, we now have a wealth of data on the property, including parcel number, physical address and contact information. The next step is to identify non-payers. In our experience, the biggest issue comes from non- payment not underpayment—in many cases this represents upwards of 80%of the problem. And in many cases, non-payment is a genuine lack of awareness that there is a tax liability incurred when people rent their house. There are several ways STIR Helper solves this problem. First, and the most benevolent approach, is outreach. The system supports a letter generation system that that automates the printing of a variety of letters. One of those letters could be a simple reminder to all advertisers that there is a tax obligation that accompanies home rental. STIR Helper tracks all communications in a history file. The file contains the date the letter was send as well as a copy of the letter. The second step is integration to your system that houses all tax remittance information. This integration will depend on the api's of your tax system. In the past we have integrated to systems that use SAP, HDI, MuniServices, Tyler Technologies and even paper based systems that we have had to manually import. STIR Helper leverages a huge set of API's and integrations to other third party systems by which we link to the property parcel id and tax payer identification number. With a full roster of short term rentals in place, indexed by property id/parcel id and a roster of tax returns indexed by the same, it is not difficult to see how a robust data warehousing and reporting system like Salesforce (STIR Helper is in part architected on the force.com platform) can then isolate all non-taxpayers. With this information in place, STIR Helper is now able to tie together three critical elements: the discovered short term rentals in the county,the county GIS data and the tax remittance information. In conjunction with a set of very powerful reporting API's in Salesforce, we can now run reports that identify all properties in the county that that have not filed a tax return. 4 The system can also generate letters of non-compliance, sent to the same place the county property tax bill is sent. The history file of each property, mentioned above, also includes a full history (including snapshots) of all advertisements as well as review data. A property owner's claim that they are not renting the property is quickly disproved. It is difficult to claim that the property was not being rented when you have a copy of the ad, review data from a third party and the full history of calendar data. In conjunction with the property discovery process, STR Helper is also able to collect calendar data and rate information. This is where the inherent limitations we face come into play. It sounds great to say that we can take the booked nights, multiple that by the rate table we discovered and then multiple that by a tax rate to determine tax compliance. However, the calendar is not a legal representation of the property usage. Homeowners commonly block out time for a variety of non-taxable events such as personal usage, property maintenance and or home sharing with friends. Claiming that calendar data is a reliable source for tax compliance is both disingenuous as well as highly misleading. Calendar data has a wide variety of interesting highly useful applications, which is why we collect it. But tax compliance is not one of them. Screenshots of calendar data are included below. These are often used by planning departments in cities to get a rough idea of occupancy rates in short term rentals, the economic impact of short term rentals, etc. But it is unequivocally insufficient to charge tax non- compliance. I do want to stress that calendaring data is appropriate for providing estimates for planning purposes. It can also be used as a part of a case against a tax dodger, but in and of itself it proves nothing. As the screenshots show, STIR Helper supports this type of reporting. This is done in many cases and can be very useful. This of course is distinct from using it as the basis for a charge of non-compliance. ....... ...,... .: ..... C D ..._ E F G N 1 3m w nu.,. AaawwsleleBeR M1w__ n.e,"n9•.wu yy!N.Y.++a.r...4�...u".ar."^......,w/..n^9!r,"Adl6 dx dB`°I"._... 1 3377MartlsBb Nbunbb Resott RnreatiamlN FrMrMN Superb laetipnl Condo httP:.//www homeewryspn/vautbn rtnul/p31 22vb 33$ 9,31IA0 13$ a,332A J U53-02-Ballroom Nome N.,.11,.Bear Hollow by AN$Nsan Resort LW I, abuse https.//www.homawry.romNautbn-renal/pfi553vb 31$ V,923.00 21-$ 12,923.0 a IJMW,IkWPCMw VMWOWTo Gr* Retea HM1Ub Condo htt www.homaewa.m aatbn-rents 1100svb 31$ 8,280M a 8,2M, B 11162 FAL15PSOK$M/n4MH Awesome$kl MoJHot Tubl PIr tOMTown Luala CMlet htt //www.homeawa.comharation-nntaU 11102vb 31$ 35,365A0 25$ 15,365.E 6 12226 FPK PerkCHy SM Properly:Top os Maln St:Townhouse Sleeps 8s TownMme hL ://ww.homeaway /vscatbnn VP1222hb 31$ Sa,== 16$ 14, 'I IM3 Geer Valk—,Tow.--"Se W Townlwme http:/Naww.homeewry.com/vacation-renal/p18503vb 31$ 2,6WM 10:$ 2,6501 3: 12M alPuse Neat to Torn IdJMain N Vest summer pr."0-ok with depPart House http://wwv.homeeway.ro 1.aotiorvro VP22S5 31$ 11,,m 13-$ 1I.500s 9 123082 BNutdul Nomes,SLFFP510 W 20,Vlew—Tq Bus3 W$ 0ism House hteps://www.Mmeawry.comharatbn-nntaVP22308vb 31$ 13JWM N-$ 13,180I M 22613 New Remodel&khcAenand G119 room-Upper bVwalkto Li nSih Lake ownAome hetpa://www.homeawry.com/vacrtbn nnuUP22613vb 31$ 15,135M 30$ 15,13E J1 29033 Trua SMI/Wt Studb on Me lbpesin Part C.11 Condo htep://www.homaawes.mmNacatbn-nnul/p29033vb 31 5 2.192M 8$ 2,19E 17. 3011a Gnat Rates.Best Vp3021avb M$ 19,100.00 25$ 19,10112 The good news here is that in our experience, the problem is largely solved through a variety of outreach and non-payment detection. Our robust calendaring function can provide you with loads of data on occupancy. In fact, we can provide more data—and more accurate data than anybody. However, no matter what, this is not conclusive evidence of taxable usage. It can serve as the basis for suspicion and can be a supporting element in an inquiry, but in and of itself, it is not evidence of non-compliance. We want to emphasize that. In summary, STIR Helper provides the most comprehensive short term tax reporting and tax compliance solution on the market. It can provide definitive identification of non-reporting properties and can also provide estimates of yield associates with any given property. We can 5 then identify properties we suspect of under-reporting. However, we take great pains to point out the inherent limitations of calendaring data in this process. Property Discovery STIR Helper monitors and collects attributes from over 40 national listing sites. At the margin, most of these properties hold few if any unique properties. The top 10 most trafficked sites contain 99% of all the unique inventory. That said, and very importantly, STIR Helper can also monitor leading local sites. We find that in many resort communities this may account for up to 40% of overall inventory. In many of these cases, local property managers will list some of their inventory on the national sites but reserve a majority of their inventory for commission- free distribution through their own site. Ignoring local sites will result in a huge hole in the overall inventory picture. STIR Helper's 100% US-based validation process, among other things, eliminates all duplicate listings for reporting purposes. However, the system records and screenshots all listings. As a result, reports will not list a property twice when it is listed on multiple sites, but it will record in the property history snapshots of all the listing sites the property has been advertised on. The core discovery process of short term rentals is for all practical purposes, a commodity service. What distinguishes STIR Helper is a demonstrably superior accuracy rate, a 100% US- based work force and support for both the leading national listing sites and the leading local sites. The following is a simple map screen shot that shows all discovered properties: e�.,7ma ",oyu.u5stsuneem _snn..n.c.r.«wuw � � _ au� Go gle u.o,v..e:r„c^•wc• .�+...,.. ,.w,.Tw Hn Permitting 6 STR Helper has been architected such that it can be used as a self-contained permitting system, which of course integrates to the compliance, reporting communication and other modules in the system. It can also be by-passed and a third party permitting system used as the exclusive system of record. Finally, we can create a hybrid approach whereby STR Helper integrates to the permitting system of record as an attribute of a secondary permit. In this way, the existing system can leverage the inherent str-centric value of the STR Helper permitting system while preserving the investment in time, integration and business process associated with the existing system. It is completely up to the city. Some of the pertinent features of the STR Helper permitting system include zoning support (what we call caps and zones), multi-permit type support, document management functions associated with the application process, expiration management and tracking, on-line permit application, renewal and payment, etc. In whatever architecture is chosen, the reporting system can then identify and report in real time and in a fully automated fashion on all the non-compliant str's. STR Helper is the only product on the market with this level of permit support, depth and flexibility. The following in an example screenshot of what a permit looks like within STR Helper (notice that in this case the permit requires Building Inspection, Proof of Insurance, Fire Inspection and a Paid Fee, but this can be configured to the individual ordinance requirements): MMNYr MMEnW >i5W9mxneWwEG OW+IenOr IY]IINM PYfM11�KNNE REOMc . N W Ponxy EIMr�rvcE M.o cmwan PMsq Moir '3KRMMu' p.yyuy y.pEMe. ! fn MUPrEiMM ! PmMIX M.wnu ! IrM ! © .EbryNMPIV CaNN10IJ ..)dffi�CPlJ PannYrx.eru Eroo PrePrry W.prPM 6Mw POm]N P.MVM MurPrrMMCq M+bIM ProPPnY NMMpuenEw UT Pmpwp•omYMrn Pare Ger N]tE Mgr9nN + N9611a-all] Pner H9spae+n $AA EP.NPey e.Mea+ o.y rxr luc/nYaso .�aanteu escraa eEc�ronr MG&WM IIaEN asaame wrmaeaww sa�aaat Nerwo»ao Npy 0 weEEr w Noise, Trash and Parking Support Nuisance properties are a common and difficult problem in most communities. Reporting and documenting noise, trash and parking violations, whether through the on-line portal or the 24 x 7 x 365 hotline, is at the center of STR Helper's capabilities. The system enables anonymous or named complaints to be filed, managed and routed. The on-line portal supports the ability to upload audio and/or video files that support the compliant. The call center supports assisted 7 upload of these files. Complaints can then be routed to the city, the emergency contact/property manager or both. It should also be pointed out that not only does STIR Helper allow complainants to file and document violations, the system provides a closed-loop feedback function that allows the city to report back the resolution of the problem to the original complainant. The complaint portal and hot line are both fully integrated to both STIR Helper's property history function and to the communication platform. Functionally, what this means is that any complaint (and the resolution) is filed as part of the property history. Not only does this allow the city to see at a glance what is happening with a given property (this history is easily printed and can be used as part of a municipal court hearing), but that it also becomes part of the larger reporting infrastructure that allows the city to report on macro complaint statistics. Moreover, complaints can be routed and resolutions reported back to the complainant, all of which can be tracked and reported on. 8 Organization, Credentials, and Experience STR Helper has been deployed in over 50 cities and counties across the country. In addition to full deployments, we have worked with more than 50 additional cities to provide discovery reporting. We have also done extensive work with partner companies related to data analysis. These companies include Smith Travel Research, Inntopia/Destimetrics and RBO Metrics. The system is used most widely for a core set of the requirements listed in this rfp including: 1. Identifying all STR properties operating in a specific region, including property address and owner information 2. Providing updated lists of STR owners in non-compliance 3. Filtering duplicate properties 4. Managing advertising histories, including links to all ads and screenshots of ads 5. Managing zoning regulations 6. Integration to permitting systems for real time reporting of compliance. We have less experience directly in the tax remittance and audit areas. The following section describes some accounts where we have performed this sort of work however. If we were able to do tax compliance with simple colendoring data, we would have for,for more. It is not that simple. Simply scraping a calendar, getting the nightly rate, getting an anticipated yield and multiplying that against a tax rate is not a solution. If it was, we would have hundreds of customers doing it. We can gather all that information, probably better than any other system on the market, but it is NOT a solution alone. We will explain why later in this document. The Tax Conundrum STR Helper has been used for tax management and detection in a variety of places and situations. In most cases, permitting is used as an intermediate step, which may or not be applicable in Palm Desert. The theory behind permitting is in part that permit compliance is a simple, cut and dry case to deal with. And homeowners who are unwilling to comply with permitting requirements are seldom inclined to comply with tax requirements. But whereas tax compliance is often opaque, permit compliance is binary and compliance is easily determined by STR Helper. The story to be told by several vendors in the marketplace is quite alluring. We can gather calendar data, we can get the nightly rental rate and through simple arithmetic, we can determine a yield on the property. We can then apply the tax rate and we will then know exactly what the tax liability is. The following screen shot, drawn from STR Helper but used generally for planning, not tax compliance reasons, demonstrates how we go about doing this. 9 4V BBCCL-3902 ® •em+w�w;tKnnm acre'S:e+sdiullov J: UMVV LMay data FyMr WaaM� X l+MMOaewe 9M Aw �, _.. ... Ac...nmotleua,IYI+ ReaYal Moore Li0ra1 Fyrglr fprMGeMh .;ne. ?5189"/ errf nUra FgelY 9f�-tt]j{ i.m+ro+h+> ?5189'. aaYl� ,� NW Ac.i+e imtm9 ,/ iwm npeeaa.mm VWMvIM ) Mt.eaeme feleeM WqfAM FMvr11eMY 4�� eM0`YH L4wme Im/AM •CM-ft A.MWA q #all= Parlod Dsya UmveMble Percent UmvaMWM Estimated Ineorm a lM KAMMM 6�sommoL x Jon 2018 26 $387% $24,725 41�e1�.lII Feb 2018 28 100.G0°-o $28,100 Mar 2018 17 54 84% S14,875 Apr 2018 0 0.00% so nwvd•6e May2018 0 000% SO Jun 2016 0 0.CID% so Jul 2018 22 70.97% 59,350 Aug 2018 13 41 94% S 5,525 ,W 2018 0 0.00% so tX12016 7 22.58% $2.075 Nov 2018 3 33% S 550 Teter 1i4 34 13°a $86`00 This report shows calendar data for a single property in Park City, UT. This is very useful to the town for planning purposes, but is not conclusive proof of taxable usage. Far more detailed reports are available. The only problem is, for tax compliance purposes, this method doesn't work. Two of the most common reasons are: • Owners use properties for personal use, which is non-taxable • Property maintenance often shows up as booked Tax Compliance—Examples and Lessons Learned Let's start with a case where we have encountered issues - North Topsail Beach, NC. It is important to point out accounts where we have been less than 100% successful because there are important lessons to be learned. We would not enter another agreement where we found a similar circumstance. In this case, the methods described above were used to determine non- filers. We have run into challenges in North Topsail Beach however as a result of very poor record keeping and a paper-based system. Part of the lesson learned in this case is that the quality of data on the tax remittance side is essential to the success of the project. The old adage about "garbage in, garbage out" comes to mind. If we have no means to unify the tax record with the discovery record, we will not be successful and we will simply skip these "opportunities." 10 We are currently working on an unannounced implementation with another large county in North Carolina that is similar. In this case, we are working with a third-party firm that manages tax collections on behalf of the county. In this case, their systems are robust and we can import the remittance data and report cleanly on the results. In Crested Butte, CO, Big Sky, MT and Garden City, UT we also work with third party tax reporting systems very effectively. In all of these cases, both permit compliance and tax filing compliance is well above 90%. Finally, we work very closely with HdL, a leading tax collections and tax services firm. They use STIR Helper as the basis for their short-term rental initiative. In their case, they have their own proprietary tax remittance system and they use STIR Helper as the discovery and reporting engine. A variety of communities from Half Moon Bay to San Mateo, CA are HdL clients who manage tax compliance in this way (more on HdL's capabilities and services later in this document). Inntopia is another large software company that has chosen STIR Helper as the basis for their resort occupancy business. We are happy to discuss how both use the system in detail. Company size and principal information Bear Cloud Software whose principal product is STIR Helper, currently employs 24 people and has projected revenues for 2018 of over$2.5 million. All but 3 of the full-time employees of the company work in either product development, product support or property validation. We have two full time sales people and a CEO (one of the two salespeople joined the company in January 2018, freeing the CEO to focus on managing the company's growth and to move away from day-to-day sales). The company has deep roots in municipal government and technology. The company was founded in Garden City, UT by the mayor (John Spuhler) and City Manager (Bob Peterson). Both had 20+ years of experience in software development and software project management. Garden City is a small town in northeast Utah that grows from a full time resident base of about 700 in the winter to over 25,000 in the peak of the summer season. It is difficult to overstate the obvious issues that short term rentals created in the city. Unable to find an adequate solution, the pair set out to create a platform that truly solved the issues they faced. After building and killing an initial reporting product, the team ultimately developed STIR Helper. The system was deployed in beta in three communities in 2016 and was brought to market fully in January of 2017. In that time, the system has been evaluated and deployed by cities across the country. We have a tiny salesforce and no marketing budget -the rate of product adoption is testimony to the power and effectiveness of the product (we expect to grow both the salesforce and the marketing budget in 2018). The company is managed by John Spencer as CEO. John began his career as a software engineer, developing both ERP and healthcare systems. He transitioned to product management and then to sales. Over the last five years, his focus has been on the short term rental market, first as the co-founder of OnceThere, and Austin, TX-based software that worked with short term rental platforms including HomeAway to manage real tie booking of in- 11 destination tours, activities and dining. John left in early 2017 and sold to SimpleView. He now is the CEO of OnceThere, but still reserves a portion of his time for direct, front-line customer interface, including front line sales and support. He has degrees from the University of Texas and Rice University. People who are likely to manage the implementation of STR Helper for Palm Desert include: Bob Peterson - Implementation Project Manager—A former city administrator in Garden City, UT, Bob has worked with over 50 STR Helper customers as a project manager to manage implementation and measure customer satisfaction. Bob's background as a city administrator is vital in understanding and implementing the system effectively. Moreover, his experience with a range of resort communities in the implementation of the project makes him a valuable relationship broker, able to point Maui city employees to similar community's who have faced similar problems. Bob has overall project responsibility and is accountable to your success. Resume Highlights • BS, Brigham Young University, MPA, Brigham Young University • 15 years of experience managing and implementing large scale banking systems • Spent last 4 years as City Manager of Garden City; now works full time for STR Helper. • Responsible for post-sale planning and implementation of new accounts. Develops a detailed project plan and works directly with customer to implement the system and integrate it within the larger enterprise. Brandi Hardcastle - Support Manager— Brandi has worked to manage validations and on-going support at STR Helper since its inception. Based in Utah, Heidi's team will work with you on an on-going basis to validate all properties in Maui. Once deployed, she will also manage weekly phone calls with your team to manage reporting requirements, support on-going questions about the system and its interfaces, help develop new compliance letters or whatever other post-deployment issues may arise. Resume Highlights • BBA,Accounting, Utah State University • 5 years public accounting experience • Support manager, STR Helper Zac Zacal—Technical Support/GIS Data Manager—Zac has over 15 years of enterprise database and application support experience. Based in our Los Angeles office, Zac supports all GIS data import and refresh, as well as technical issues that may arise with respect to API integrations. Resume Highlights 12 • BS, Computer Science, Cal State Fullerton • Full stack architect, Microsoft Enterprise architect, Force.com • 12 years deploying and supporting enterprise applications for a range of Fortune 500 clients Dr. Brumby McLeod, Ph.D. — Brumby is widely recognized as the leading academic researcher in the country on short term rentals and their effect on communities. He has consulted with a huge range of cities from tiny Folly Beach, SC to Vail, CO to Charleston. His research and consulting focuses on the impact of short term rentals on the overall housing base and best practices. He is involved in many of our highest profile implementations to review ordinances, work with us on best practice implementation and work with clients on post-deployment data analysis. Resume Highlights • BS, University of Georgia, MBA, University of Montana, PhD, Nevada-Las Vegas • Associate Professor, College of Charleston • Widely published researcher and acknowledged national expert on short term rental trends, best practices and data analysis. • Riley Center for Affordable Communities 13 References Indio, CA The statistics in Indio will not surprise Palm Desert, which likely experiences similar volatility with their listings. The focus in Indio at this point is simply on identifying short term rentals and then communicating with them about their obligations. As a result, our focus has been on property validation and letter generation. When we began this process, there were 591 listings in Indio. Today there are 1784, all of which have been validated over the last 3 months. Ivan Ivanov, CPA Accountant/City of Indio Phone: 760-391-4136 e-mail: iivanov@indio.org Minneapolis Minneapolis recently hosted the Super Bowl. As you would expect, in the weeks leading up the event, the number of short term rentals in the city spiked dramatically. Minneapolis licensed STR Helper in December of 2017, the system was up and running in less than two weeks and in 4 weeks, the operations team validated 3,995 short term rental listings. When we began, there were 1648 listings. The listings peeked one week before the Super Bowl with 3995 listings. IN the two days since the Super Bowl, 881 of those listings have been removed. But STR Helper has a record of all listings. With the Super Bowl over, the city is now looking at license integration as the next step in the process. Minneapolis Kira Hasbargen Business Analysis Manager City of Minneapolis, Regulatory Services phone: 612-673-2554 Kira.Hasbargen@minneapolismn.gov Grand County, CO Grand County launched the system in the Spring of 2017. The system is used to identify all short term rentals in unincorporated parts of the county, is used to manage on-license registration and the rest of the short term licensing issues and is used to manage complaints relating to noise, trash and parking. Kelly Oxley Grand County Manager's Office & Board of County Commissioners 14 308 Byers Avenue Hot Sulphur Springs, CO 80451 970-725-3100 Fax: 970-725-0565 Email: koxley@co.grand.co.us Gearhart Gearhart is smaller than Palm Desert but has used the product for a long time and has worked very closely with us to define product capabilities that have helped them to navigate a very contentious short term rental environment and a progressive ordinance. Chad Sweet City Manager- Gearhart, OR E-mail: citymgr@ci.gearhart.or.us Phone Number: 503-738-5501 Big Bear Lake, CA Big Bear Lake is the largest ski area in southern California and is also a robust summer economy. Big Bear has focused for the last year on licensing, permit compliance and discovery. They are now in the process of looking at complaint management and on-line registration. City of Big Bear Lake Philip K. Mosley,Jr. CBO Director of Community Services/ Deputy Director of Emergency Services (909) 752-2892 Direct Office Line pmosley@citybigbearlake.com Bozeman, MT Bozeman chose to undertake the entire system all at once. They have deployed all discovery, permitting, on-line registration and complaint management. Start to finish, the system was fully implemented in 60 days. Chris Saunders Community Development Manager City of Bozeman 20 East Olive St. Bozeman, MT 59771 Phone 406-582-2260 csaunders@BOZEMAN.NET Aurora, CO 15 Aurora sits just to the east of Denver and is a city of approximately 350,000 people. We have included Aurora because it has a similar mix of single family homes and multi-family homes, with a disproportionate number of rooms for rent (as opposed to the entire residence). In this respect, it is a different set of challenges that speaks to our validation accuracy and nimbleness. Trevor Vaughn, CPFO Manager, Tax and Licensing 303.739.7171 tvaughn@auroragov.org Gunnison County, CO Gunnison County is the largest geographic county in Colorado. Their focus is entirely on discovery and tax compliance. It is worth pointing out that both Crested Butte and Mt Crested Butte, which are in Gunnison County, are also customers. Matthew Birnie MBirnie@gunnisoncounty.org Gunnison County Manager (970) 641-0248 Rich County, UT Rich County Mitch Poulsen Executive Director Bear Lake Regional Commission (Rich County UT) E-mail: mpoulsen@cut.net Phone Number: 435-946-2198 Vail Johanna Richards Sales Tax Manager, City of Vail JRichards@vailgov.com 970.479.2125 16 Detailed Requirements Response Monitoring and analyzing Palm Desert's short-term rental market STR Helper provides a comprehensive reporting environment that has been used by leading consultancies, academic researchers and third party software companies to provide in-depth analysis of short term rentals in a number of communities. This is testimony to the fact that not only does STR Helper track more statistics (by far) than any other system, the platform also integrates to a number of visualization and analytics frameworks. For example, the city of Minneapolis recently chose STR Helper to manage short term rentals in anticipation of the Super Bowl. Part of their requirement was that the data gathered by part of their larger Tableau integration. STR Helper monitors over 600 elements ranging from physical property data, ownership information, calendaring and occupancy information, licensing data, advertising history, etc. All of these elements (and many more) are reportable through an intuitive, ad hoc reporting interface. These capabilities complement the core canned reporting capabilities of the platform. The city thus has a simple mechanism for reports that they rely on regularly (for example, All Non-Compliant Properties, All Short Term Rentals, Properties with Permits Expiring in the Next 60 Days, etc.), as well as an ad hoc capability for specialized on one-time reports. All of this is supported by a dedicated account manager who can help design and build these reports for you. With support from tools like Tableau (or a number of other similar visualization and analytics frameworks), all STR Helper data can be used to create high impact graphics and reports as well. Create and Maintain a database of STR units (both permitted and non-permitted) STR Helper monitors over 40 national listing sites as well as any pertinent local or regional sites. There are several points that should be made at this point. First, we know from our experience in neighboring Indio that the Coachella Music Festival creates an incredibly dynamic listing environment. In Indio for example, we initially discovered 591 listings in August. By January, that number had ballooned to well over 2,000. That number might sound daunting, but it turns out that for whatever reasons, the number of properties listing on multiple sites was well in excess of the national average. STR Helper filters those duplicate listings for one set of reports but maintains a record of all listings per property in another set of reports. Second, our accuracy rate in Indio has been 100%. In fact, Indio at one point told us they valued speed over accuracy. Rather than sacrifice accuracy, we chose to create a schedule that would deliver both. In our opinion, misidentifying a property, while it may happen on occasion, should be avoided at all costs. We have put in place double blind verifications as part of our quality assurance process, resulting in by far the highest accuracy rate in the industry. 17 Finally, we synchronize with the county/city GIS system. This means that not only do we tie every listing to a GIS record which ensures that notifications are delivered to the property owner address (as opposed to the advertised property address) and that we gather a huge amount of incremental data on the property, but also we know when a property has been sold, new properties are built, etc. This process can be handled as a behind the scenes, on-going synchronization process or it can be handled as a scheduled city-controlled process—it is up to the city. Whether the city chooses to use the STIR Helper licensing process, an existing licensing system or some combination of both, STIR Helper is able to provide comprehensive, real time reporting on both all short term rentals in the city, all licensed str's in the city and all unlicensed str's in the city. These reports can be configured to include all the data elements that you require. Whereas other systems require manual reconciliation, STIR Helper automatically reconciles all listings with licenses and can report compliance in real time. An example from a simple non-compliance report: Heat«�ePe9a�, Non-Compliant Properties Repon Genranon Status: compwa Report OPtlone'. Time Frarn Stmnledze mformaeon by. sh- Uale rZ R-p NPewnies B Len«Sena Date -� t]Wn ......., Run Repon Hide DeUi4 Cutomna BMY .P�MYe4 Vi«. Eap.pYi;ts�amlM M Ry tNrxi-CM1pllant equa6 Tn1e Ciear Piop«ly.BC Piopeny Sveet O—Name 1 Owner AtaAlrg Street O«w M.ileg Owner Mallug Owmer Medlnp PD.UI Maa Aceve Nan- Enemation Zoos Lahr Sen Dab Liren.a Enpiatbn Name 0Iy SbN Cane LUNrg Compunt Rea.on Dais BCP-237186 344 W Ha VAWW Sunrise Resort - - ✓ ✓ - - 1/12l2018849 - Dr AM BCP.237156 634 S BeMentoR za Rd JAYCEE CARROLL 2017 STONEBRIDGE DR. NIBLE.Y uT 9432' ✓ ✓ - - 1/12:20188.49 AM BCP-237168 957 Bal.—N. JUSTIN HEIDER 19M 81-Sty Ln, Twm Faes ID 03:10` ✓ ✓ - - - 8CP-237132 913 N ML be,y IN Riabnra 8.1— - - ✓ ✓ - - 1/17/2018 8:91 AM BCP•237135 4t Spb­.PNnt Dena De4Prea - - - ✓ 1/11,20188:36 AM BCP-237155 737 Spruca or, Taben 234,Ala-vke Ave P_ UT 84606 ✓ ✓ - 1I1712018 6:54 AM BCP-237162 890 Bop , 'Reaearch D-1 N.— - - - - ✓ ✓ - - V1220188:49 - AM 8CP-236876 240 W Lyl Ln JENSEN.JERRY 8 3%7 W 2200 N PLAIN CITY UT B14C4 ✓ ✓ - - 215 018 11:40 - AM BCP 23M 2206SBeasf —, BOWLES.DEREKT 3156E 41WN LIBERTY UT 8431N ✓ ✓ - - 2/8:20t811:`IC - L. AM BCP-236890 267 E 17M South St OBRAY.DOROTHY S, %8 E 3000 N OGDEN In 8"14 ✓ ✓ - - 1152018 11:40 TRUSTEE 112 AM BCP-237131 685 Cedar Dr Alan AN, 1200 8u Rock Dr Lorg-1 Co 80604 ✓ ✓ - - 111172018 8.36 - AM BCP-237158 21T6 S Is—Lake BNd RACHEL MILLS 5695 S.COTTON RIDGE MURRAY uT 84107 ✓ ✓ - - 1112,20188:49 N333 CIRCLE AM Note on Licensing: We have made repeated attempts to contact and build an integration plan with Palm Desert's licensing vendor, Superion. We are confident they will have the API end- points we need to manage an integration. If not, we would then resort to a manual license importation process. In either case, we will be able to provide fully automated reconciliation to report on compliance. Superion has indicated that they will talk to us only in conjunction with the city. Our approach has been to wait until the contract is awarded and if we are chosen, to then manage the API discussion. 18 Aggregation of non-duplicative short-term rental listings for STR properties operating in Palm Desert from short term-rental websites As mentioned above, STR Helper provides a filtered list of all short term rental listings. This listing is maintained in perpetuity. As a result, if a listing is subsequently taken down, STR Helper will mark the fact that the listing is no longer active but continues to maintain the listing record as a part of the property archive. Additionally, STR Helper is able to report on all sites a given property has been and is currently listed on. For example, it a given property is listed on both Airbnb and HomeAway, the property report can either include or not (at your discretion) the fact that it is listed on both sites whereas the listings reports can show you that the property is listed on both. Quick and accurate identification of STR properties in the City including identification of the exact physical addresses, unit numbers and parcel numbers. Our initial property validation process generally takes 3-6 weeks, depending on a number of factors. And as noted, and not to belabor the point, our accuracy is unmatched. However, the initial validation is really just the tip of the iceberg, so to speak. As noted in Indio, Palm Springs will be a very volatile environment. Our validations team will be working on an on-going basis to validate new listings as they are continuously added in advance of the Music Festival, or other community events that drive huge seasonal demand. Our discovery process runs nightly and validations are done on newly discovered properties on an on-going basis. The validation process, among other things, produces the exact physical address of the property, unit number and parcel id. The following screenshot shows a typical listing report. It includes the physical address and the mailing address of the owner, as well as listing information. This can be configured to include any information you choose: 19 Active Listing Report Report C»narallon$tags'. ...,.,.,ros Raport OpSom: U.qcl,lITII fiME R4al9a PrManY$DM1 �. 'All'rctings B t�'Q C'1wlw Dala ® QRIOItt From Tp Run RapDrt HMatlaY6a CYabrnita Sava AP PrimeDNVNs EAporL DaOtla. atrwr aP as M: AC1M LMtlrp ap191e TnN Char ANO S1Nu squab CDMlrrnaa Cher 9roapaa y: WapaRy.Stra4t sores h ',PApRy:rrw' PrDpairy Pmpmry:O,, tM 1 Pr VPo'ry.Owa.Na,aN FlapanY'.O.rr _W'Y Ow,er P'row1y.0—usYrV sarm Un d 019m U—Il paRY SveN Wdrt9C i M_W 9me PeamCooe Propw6c Sl a4t XHO S S1wnleaeawa Or 0.rpmre; 41S8d2- LUCASBUCI(LAND 515 E.St1ERMAN AVE. SALT LAKE CITY UT Bal�S www.numaaway mm nitos'/P,vww Nonxawev mm/vacAlron-ronIWo4219939 006 Pa 0".9"OZ 104E M WO III V twmel 41-21-40- SWANER.RUSSELL B, 0459 FLEETWOOD DR SALT LAKE CITY OT WWI ww+..non—ymm NIo:1lw-xw Mmeawevmmtveraw.renLJa913g2n1M 140 TRUSTEE 6 P.Mig BRa4t VISSO—LabludfJmici l 41-21-40- A FRSON.JOANNE, PO BOX 192 GARDEN CITY UT M02a vww.airbnD ca*. m¢rlN::r:ero;om.— —a"!]R06f1B±? S am TRUSTEE 4141d ANDERSON,JOANNE, PO BOX 192 GARDEN CITY UT 61025 viww'aeDnD.mm ntt�lnvw«aironn mMroomuB100BI07 026 TRUSTEE - 1 41.21 d0. ANDERSON.JMNNE. PO BOX 192 GARDEN CRY UT 84026 www arunb.mm Mtoa'1Mww eaOnD mN'wmY1009:i9197 026 TRUSTEE a T ProP.W.Shaw 10%S B_Lab WW(1 R lItl) 41.28.00. RICNARDS,JONNDB 1090 EMBASSY WAY SALT LAKE CITY UT 6a ti8 102J? 106 bcetion=Gallen%20CM%2C%20UT%2C%20Un,lW1205lV Differentiation of monitoring and enforcement activities based on the different requirements dictated by the City's zoning and related municipal code requirements. STR Helper provides extensive permitting capabilities, whether the city chooses to use those capabilities natively and exclusively, or in conjunction with an existing permitting system. The first pertinent example of this would be the "Caps and Zones" feature. Rather than seeing the city as a monolithic entity, caps and zones allows the city to divide the city into zones, all with their own rules (in this case, there would be a P.R. zone, a R-1 zone, a R-2 zone and a R-3 zone. Each can have its own permitting rules and caps, meaning we can cap the number of str's allowed in a given zone (including zero). To continue the example, the permitting system can sunset the permit and based on a pre- determined date in a given zone. It also knows that if a given zone no longer allows incremental str's, that the permit will simply not be issued. Moreover, the system can manage the reporting and communications process associated with permit expiration. And if applicable, it allows permit holders to both apply and renew permits, including payment, on- line. In addition to permit issuance, renewal, and payment, the permitting system can handle document management capabilities associated with the permitting process. For example, in many cities, the city requires a parking plan, inspection reports, proof of insurance, signed affidavits of tax payments, etc. as part of the permitting process. STR Helper is able to track and store all of these documents and allows the city to manage the workflow associated with the license approval. All of this can be managed on a "per zone" basis. The city can then 20 manage reporting in the aggregate or per zone. In this example, note the large rectangular area in which STR's are prohibited. r» a Prohlbiteo,,zone `way i +K■YAM Af awl lag Whd a�a G,g, Capture of full-resolution,full screen screenshots of all active STR listings in the city on a weekly basis. Provide a link to the website of the STR properties advertised in the City. STR Helper maintains a rolling archive of all short term rental advertisements, including a full screenshot capture of all advertisements. If a property stops advertising all together, the system maintains that advertising history including the screenshots. If a property moves from one platform to another, the system will continue to maintain the archive from the legacy advertisement site. These screenshots are primarily used for cases where cities need to provide in court that in fact a property was being advertised, despite the fact that the advertisement has been removed. By managing the archive, it is impossible for someone to claim that in fact the property was not being advertised. 21 qW •TLIpyiLgt I7PUNa iAN HeL,.wpn oe zAa Cron,iEamK.alnmRwy.E<Lvnse La!aae!.ConrP1lM.Moves GON:<alef0 33.M32a000.1762500t5W taauf Wwin Ims ReMa:r,-L as d Gttb L"d f be kason Sfyb ( (;•+d)l01 SS•i:gmmwatf II U CanercY Raa.l�,try%.p:auUgxO!n0 IJMa!PC la Pov,1e for falaDM mnp E yxr!en:e!a RmrtanMs.C.Me15.Tenru FbYe1s aM 71�e Tiw!h!t v0&)i W`Mum up en0 fte6r 1 LR!e7 As M,e M Mrten[A5 104 6es1 f AiRs M ke'.re Sun CRy Shaeau kfAs r.Som 'O Nw EYarrmM. fie GNt C!un Ira N—a Fro?,mp 0l 0 Rvp FunaW 1­.C'.nyanp PM Sane TIap N.O.Msa As\Ye1t 4!P Lane Dt *kM1AWP11 1R 1,an 18 NOb FA1 72 Ch '0.1110 C., At Y ,As an t8 NOA!Fi,- Et—t:.CAW.se Glee*:Fees Me M,Sbme As Mal ou 1YdiM Fay As A ResdeM aM in.aAes P t3.R C'aA 3rron Fee•.Ma 0.1—0 F:u.h.0 YLN FNay m IM1 A`.e!nam ALo LOCa!ae Near m<Hlane Me-aO CaAlw,sas DW 1111ne iwo SSAIa-UL!IbAft W WLOUI CM!H5 I-(111—C,wemoy FOOL I-UU:EOJt I­1 Cub I_F_—CM 'n. Ja[U23,—.g AmMLes'+t YOur AW Fnlq'-w Y.a Fu Pn:8 MOO P. O Gteen A Na,Me$Romp a LDldry.a 0i 0 falvorr.Halyy Roan.WNM. Temes Calls E.—PNr h_A1epAa^pm'.!'.CWrt intlOm waAmq iravY Saunas.E+efu!se R.ses.Le:awrp Ir..SM x:O Noar;v[ve!"i-.pe OI HOMY C!uo 1-K—M You are'h2M CA?,—Y;a Famiw<El Pa .sIvW I;t'Um I!otle0 Dr-deb De&art:.Ma cemh!rq Spas m Palm v 91 ma MA F"g Reetawaw all NyniCAA)5 N L're D.—I Fa T1,—01 YOU Tnai ENO"l ;,I a e^..aI II-0 ane R!kin9. '(here Ala F'knt.o!7!ays ha w- s aM O!Cou!se.—Nd T!M Na00nai FmC ne bl inU Ngere Comes Vlrq,a F Wh E rPeu ,Kwu,tn!MluL N--[a—,ark&1a, Apiiv;<ac_Dtenfe umon !Tops.Da,e 7­M.I.Jvvme.TM L:na ROye em am TC FA s Lrrsy Ra.InCiWles a Smry CnaA wi-CMaman.Malc e.V Lo Seal anc Sofa v+rn a 1W NLYMgaa:BulaAUniaaNYAwan�MNlll RaY DVD Caye1. w.,ro nxn=et,oaxstr:. t�nme��r,'.aa.se.rmao;;rcicaaa. Sy— $ LM MtMymN i.:fLery hMs:.M^#anl+mexvgx.s.Mq.'Yu><2i0_r.1v'nt."b?i270M0 Mrwum n2 Laa,la Lwpty b,y:R< nYns' i,E.veA-t ae,dl0naw5[g1kOCdr[.('tUQa:. Fathtaomf 2 15t1NC.M.1 3 Ufit rMnYLLL WY4aefu B UAL R-1— G,e SOry 90 5ve<I Racy 0(q 41ry iMv HcOa O o�Mry U> AOOm rYW Ufer"aft Hare< Uffv I I,umDnan 011 Pnnwry Mw11 uat Nome UP!!n:.£a.te! Flixtery 1pf!INweonui URL HomeAway, IMb.C.A.IARA t»µa:! SN1o11 Relax with on site Golf,Tennis,Swimming,Exercise Facilities,Concerts, Movies Ovwrr:ew A.meMlies Ilevwwa Mau Phw.o Rate,6 AyadAbbly C STart ✓Lew�Me II y 8oM dJw�M.I1 FI,nvAway tUA6aA-)92� $112 AyGin1011! . u4ra92,tlYO{drWi 2a AW ownara Quenion AY Hepnn m,s lietnq 0 0 Z IN lid .._.... ., d Y. . , AbWt a,e 3 Bedroom/2 Bath with Sunset 1 Mountain Views. propf*2Y TNs Pe,of I,I­Wm m n,a Ga,d Ravott St91e CouMrr CIO rot the 55'Cnmmw,tty 22 Provide an easy to use interface for STR market data, allowing City staff to search, correct, and append additional information to identified address matches The "dashboard" interface of STR Helper is built on force.com, which is the underlying application platform used by salesforce.com, the largest customer relationship management platform in the world. The system has been designed to search, update and report on these types of data sets (which is in part why we chose to build the product on force.com). The platform allows a user to easily update, change, search or create reports on any field available to the system. This might include appending relevant documents, updating some aspect of the property or license record, etc. In short, there is not a more widely used platform for updating managing these kinds of records than Salesforce. It is in part what the platform was designed to do. We have simply adapted it to the short term rental issue. The following screenshot is an example of the screens that populate STR Helper, all of which can be made editable (or not), depending on your requirements. L1ating Edit Help for this page W BCL-31821 Listing Edit .a- Sara&N_ Candid Information BC Listing Name BCL31621 Accomnwdation Type Apartment Property BCR237138 ;:k External Id 978322 status Consumed Y External Id 2 97f1322 Source wwwnomeaw,_ Active Liadng p Dlsptayed L.—Numeer Tripping Details TAW 6 rooms at 1M Inn at tee Geolo-thm(Latitude) 41.94684600 ._..............__......____._._.__. nion(Longitude GaaatlPtlsn G—o t«'No Cleaning Fees.. ) 111.40501400 «'Comes with a 5100 Voudiar for BeaM1akeFUn with a 3 night slay•^ Dlncount lift tickets for Seem Mountain Sid 1 RMwt«. ._.__................._.......... ........... photo hhptJAffapaera-asl.hon Cunency Link To LIMIng Image symbol URL Title Amount URL Interstitial Bathrooms 6 URL Relative Bedrooms 6 street M..G...% 26 City Galdsn City Min stay 3 state UT Rating 0.00 .... Coumry US Bad. Revbwa Count 0 Room Type .. ....... User First N.— User Thumbnail Urt r.......... _............... /. Accurately and continuously, cross-reference STR database of active STRs with the City's database of registered STRs STR Helper meets this requirements in many several ways, depending on how the city wants to architect the solution. The first would be to interface via API to the existing permitting system, with a simple, binary call—either the property id being presented is licensed or not. STIR Helper 23 would then simply manage an attribute in this example we will call "License Status." That status will either be "valid" or "not valid." In this way, the system can compare any discovered property with the license attribute for that property and can then easily report on all properly permitted properties. It can also do the inverse— report on all non-compliant properties in the city. Alternatively, we could interface to the permitting system for the core permit, but enhance it in many ways. For example, if the city wanted, it could use STR Helper to manage expiration status, and then use the mail merge or email communication system to send alerts to permit holders that their permit would be expiring in 60 days (or whatever interval the City wanted to use). A more complex example might require the homeowner to submit proof of fire inspection, parking plans or proof of insurance as a supplement to the core license, which would come from the City's existing permitting system. The point here is that STR Helper is a platform. It extends to the enterprise through a series of fully supported, external APIs, it is built on an object model that can easily flex to the needs of the City, and it provides intuitive interfaces designed to allow end users to easily update information and repot on all of it. Identify Transient Occupancy Tax(TOT) under-reporting based on publicly available information Of all the areas we work in, tax compliance is the most complex and most difficult to understand. As mentioned above, it would be really easy to say that we can scrape the calendar data, multiple it by the nightly rate, multiple that product by the tax rate and determine a yield. It would be great—and it would be totally dishonest. The fact is that there are legitimate, non-taxable reasons why a property will show as occupied that we, nor anyone else, can determine from publicly available information. Following is an example from Park City, UT that shows calendar information for an individual property as gathered by STR Helper: 24 qW AN CL-3902 >anm�:sumaLwm._ rweeiu UOW Lasso neon !.em..ow::cr.-.:.srEr♦: McYlrtYeew�e aC t:Mro Mw:. BCL3W0 ...... nc.. -:vW Rft'n,u Wore No � � MgwxM1 tw 901a CuroEr6 f.MI.1M ?5199"/ Naww MoprM1 9CEV]21 L.v:r.:M> ?5189'. tNNM�Ip SONf N!w ♦<i+..,Min9 / samm neaM1re cdn Wweaa.M 1a1000Y.Lfle ® MlKen..CWRM UIMMM fYi.:Y MaNtl "•MMMKVAMM IMp1.9N llMla.ew4.. _—________.._ ® C.6—Ara1Hd41y Period Days Umve0et4e Percent Unava9vie Eetblsted beam ley .... .....__ .. _ .._ .Aawus.ha Jan 2018 28 83,87% S24,726 :;.5 mrs'ulasYiiJeY';u-L: Feb 2018 28 100.00% S 28,100 ® Mar 2018 17 54 84% S 14.875 Apr 2018 0 0.00% so May 2018 0 0.00% so Jun 2016 0 000% s0 Jul 2018 22 70.97% $9,350 Aug 2018 13 41 94% S 5 525 Sep 2018 0 0.00% so Ott 2018 7 22.58% $2 975 Nov 2018 1 3 33% $550 TOW 114 34 13% $86.100 This simple example could easily be expanded to include a huge array of data elements. In this case, the customer simply wanted to know the number of days unavailable and the estimated yield. The entire solution is predicated on a platform's ability to integrate to your tax remittance solution. The simple answer here is that we can integrate to a number of tax remittance systems. We are happy under a non-disclosure agreement to discuss this area in detail. In order to get our arms around the problem more fully, we need to break it into two separate sections: non-payment and under-payments. To begin with, we will cover non-payment. And as it turns out, non-payment is where the majority of the problem exists. With a list of all short term rentals in the city, we can then through API create a roster of tax remittance data. Non- remittance/non-reporting is a clear-cut issue. It someone has paid nothing—either because they reported nothing, or worse they simply did not file— it is generally easy to demonstrate through review data in particular that there was some amount greater than zero owed. STIR Helper gathers all this review data. Based on these elements, we can then create a report that shows all non-filers. An example of this type of report from a city in North Carolina is shown below. 25 1W wx.7M. zw,vEni,es.e„ IfrAIlfrYtlfFF►IYfa (zflwlpHrw�Jt ,. 1�/Np4w��Fr _ rrwrrrr�w ,Mpr4`+y11i�Nr[sY ,wMM [rr h[PgorafFyrlflr F[tY.r[rw�lr. [x�Er KP.xusv clMlrsu*MENNFIIwxu[rn eunxFrt lox YYR xc ze•64 iw�n.m.e 4v: - pU]eL (YPTSYMNMF[t WFelevx FxnNFn Im YYR xc Ee.be x[a.�"mee uN c�.� UU51 xxOYEIewFLerx FUVRit UI YYR Eawo [[u��.mea W. ecn Uxs>n M[s[[xeN[sce wvxc x:wo ao o[onc[rowx noert uU No Econn,m.a x.nr.o.v+�m.M.co.xun n.aM - ecv xf[sEv Mu[[uN[sca wew[ x[foo o[oc[ono[*awx noert uxf No mesi xcm d Nnw o.p.nm.nn co.nnK naaM ecv EfEsri Y[s[[rxMFscewux[ xxfooaoa[awFrown Hoerr x+xf No Eoui scmnmve menu,.MaM M IYwF 1® Ct{I[aNN ':1VAfUte [UF1T6 ]tle M1YOR F0 M ��� U>U 1[M.MI The more complex issue relates to underpayment. Because calendar data is imprecise and does not in and of itself represent auditable data, underpayment is a difficult area. In this respect, we are happy to provide you with the data and allow the City to determine how to proceed with that data. However, we unequivocally will not accuse someone of tax fraud based solely on this data. STIR Helper provides comprehensive calendaring data, occupancy (availability/non-availability) and nightly price data. With this in place, we can then calculate expected yield and expected taxable revenue. This can be then compared to an actual remittance and a "tolerance" established. A screenshot of a report that does just this is included below: 26 l,"T'-DUX Propel.,._ Street ._ Estimate Minimum Income Estimated Minimum Tax Amount Paid compliant? a0337000006JHb2AAG 118 SCOTCH BONNET CIR $ 6,888.00 $ 206.64 $ 1,461,92 a0337000OD6JHbhAAG 1236 NEW RIVER INLET RD $ 8,704.00 $ 261.12 $ 1,169,42 a03370000D6JHbiAAG 1238 NEW RIVER INLET RD $ 25,928.00 $ 777.84 $ 1,616.73 a0337000006JHbOAAW 120 N PERMUDA WYND $ 4,548.00 $ 136.44 $ 1,361.70 a033700DO06JHbwAAG 1265 PERMUDA WYND $ - $ - $ 2,00 '.a033700DO06JHbZAAW 122 TOPSAIL RD $ 38,759.00 $ 1,162.77 $ 1,772.09 a0337000006J1-10AAG 1275 NEW RIVER INLET RD $ 51,275.00 $ 1,538.25 $ 1,SS5.56 a0337000006JHc6AAG 128 OCEANVIEW LN $ 1,998.00 $ 59.94 $ 1,037.70 Ia0337000006JHc7AAG 128 TOPSAIL RD $ 41,981.00 $ 1,2S6.43 $ 2,525.49 a03370D0006JHcgAAG 134 OCEANVIEW LN $ 10,440.00 $ 313.20 $ 5,989.89 a0337000006JHcJAAW 1302 NEW RIVER INLET RD $ 34,510.00 $ 1,035.30 $ 724.50 Possible Underpay a033700DO06JHd4AAG 1415 PERMUDA WYND $ 1,282.00 $ 38.46 $ 2,394.00 a0 3 3 70000061HdOAAW 145 S PERMUDA WYND $ 9,261.00 $ 277,83 $ 2,394,00 'a033700DO06JHdXAAW 1504 NEW RIVER INLET RD $ 36,113.00 5 1,083.39 $ 2,281.10 a0337000006JHeCAAW 1661 NEW RIVER INLET RD $ 772.00 $ 23.16 $ 368.00 a0337000006JHeSAAW 171 SEA GULL LN $ 4,452.00 $ 133.56 $ 313.82 a0337000006]HewAAG 1774 2 NEW RIVER INLET RD $ - $ - $ 399.60 a0337000006JH15AAG 1784 1 NEW RIVER INLET RD $ - $ - $ 108.00 !.a0337000006JHIAAAW 1785 1 NEW RIVER INLET RD $ 7,224.00 $ 216,72 $ 524.25 a033700DO06JHfBAAW 1785 2 NEW RIVER INLET RD $ 15,288.00 $ 458.64 $ 739.42 Ia0337000006JHgdAAG 1840 NEW RIVER INLET RD UNIT 2308 $ 1,792.00 $ 53.76 $ 341.88 a03370000061HhGAAW 1866 NEW RIVER INLET RD UNIT 3207 $ - $ - $ 22332 a03370DOOD6JHhhAAG 1866 NEW RIVER INLET RD UNIT 3404 $ 6,888.00 $ 206.64 $ 495.36 a0337000006JHhiAAG 1866 NEW RIVER INLET RD UNIT 3405 $ 26,957.00 $ 808.71 $ 402.20 Possible UnderPay a03370000061HhnAAG 1866 NEW RIVER INLET RD UNIT 3410 $ 6,776.00 $ 203.28 $ 561.90 a0337000006JHhUAAW 1866 NEW RIVER INLET RD UNIT 3306 $ 8,393.00 $ 251.79 $ 546.00 !a03370000061HibAAG 1896 NEW RIVER INLET RD UNIT 1218 $ - $ - $ 189.75 '.. a0337000006JHiYAAW 1896 NEW RIVER INLET RD UNIT 1215 $ 19,638.00 $ 589.14 $ 490,20 Possible UnderPay a0337000006JHjEAAW 1896 NEW RIVER INLET RD UNIT 201 $ 344.00 $ 10.32 $ 654.38 a03370000D61HkEAAW 2 BOTTLENOSE BLVD $ 2,832.00 $ 94.96 $ 1,626.49 a 03370000061HmcAAG 2000 NEW RIVER INLET RD UNIT2513 $ 1,700.00 $ 51.00 $ 433.90 a0337ODD006JHnBAAW 2000 NEW RIVER INLET RD UNIT 3206 $ - $ - $ 411,00 a0337000006JHojAAG 2068 NEW RIVER INLET RD $ 95,616.00 $ 2,868.48 $ 5,787.51 a0337000006JHoMAAW 204 SANDPIPER OR $ . $ - $ 2,429.70 a0337000006JHoXAAW 205 B SEA SHORE DR $ 41,097.00 $ 1,232.91 $ 106,08 Possible UnderPay a03370000061HplAAG 212 OYSTER LN $ - $ . $ 107.25 a03370000D6JHs1AAG 220 SEA SHORE DR $ 48,300.00 $ 1,449.00 $ 2,024.17 a0337000006JHs4AAG 221 PINELLAS SAY OR $ 13,492.00 $ 404.76 $ 1,082.38 a0337000006JHsVAAW 2210 NEW RIVER INLET RD#353 5 7,560.00 $ 226.80 $ 200.27 Possible UnderPay a033700DO06JHsXAAW 2210 NEW RIVER INLET RD#355 $ 3,864.00 $ 115.92 $ 285.00 a0337000006JHvKAAW 2280 2 NEW RIVER INLET RD $ 5,148.00 $ 154.44 $ 92.70 Possible UnderPay a0337000006JHvpAAG 2311 NEW RIVER INLET RD $ 3,612,00 $ 108.36 $ 853.95 Provide a 2417, 365-day telephone hotline service for reporting of alleged violations of municipal codes related to STRs and work with the City's Code Compliance Division. Relay content of calls received to appropriate parties (STR owner, STR manager, Code Compliance Officer(or message phone), and police) within ten minutes of receipt of call STR Helper supports a 24 x 7x 365 call center for STR-related issues. We guarantee that issues will be forwarded within 10 minutes. Additionally, the system can be configured to route the issue on a carbon copy basis. For example, the City can determine that calls are to be forwarded to the emergency contact but a carbon copy email should also be forwarded to the ordinance officer,just so they know. Beyond the simple mechanics of fielding a call and forwarding the issue to the appropriate party, all calls are forwarded into the system and become part of the permanent property history. In this way, the City can track chronic problem properties (through the Watch List) and can report on all properties with issues (through the reporting console). Authorized personnel can also drill into an individual property to see the full history on the property. If it becomes necessary to take the owner to court, the permanent property history centralizes the full case history on the property (complaints, all communications from the City, advertising history, 27 compliance history, tax history, etc). Finally, STR Helper also supports a closed looped resolution system which can communicate back to the original complainant with the way the issue was resolved. Accept from complainants and share with City evidence of alleged STR ordinance violations (i.e. video, photo, and audio evidence) STR Helper supports an on-line complaint portal that allows citizens to upload audio, video and/or photographic evidence of STR violations. Like the hotline interface, all complaints are routed into the system and can then be forwarded in real time to the responsible party (emergency contact, owner, ordinance officer, police). Also like the hotline system, the portal archives all complaints as part of the permanent property history. And like the hotline system, the portal allows the City to create a closed loop resolution communication loop that explains to the original complainant how the issue was resolved. The following is an example of the interface that is used for uploading of complaint information (note at bottom it allows upload of three files): M n<ro arden City,, r-r Short-Term Rental Complaint/Comment Property: 200 W Lychee Ln Garden City,UT 84C28 Compsern Into Complaint 7ypa' 'Required Fields --None-- Description` Your Name(Optional:leave blank if you wish to remain anonymous) Your Phone(Optional:leave blank if you do not want to be contacted) Your Email(Optional:leave blank 0 you do not want to be contacted) Upload Photo 1(Optional:maximum 10 MB) Upload Photo 2(Optional:maximum 10 MB) Upload Photo 3(Optional:maximum 10 MB) moose r,., No file chosen No file chosen chao..qy No file chosen Provide City personnel 2417 access to the City's STR related data and services through a secure web interface STR Helper is entirely cloud-based, hosted in a fully redundant, mirrored AWS-hosted environment with secure, browser-based interfaces. User log-ins are secure, communication 28 exists over secure socket layers and user information is encrypted on multiple layers. One of the many reasons for using Salesforce at the platform level is the security features we get that have been trusted and tested by all levels of government, business and academia. 29 Implementation plan Below is an outline for implementation of SRT Helper. In Stage 1, we will define a detailed project timeline. Implementation timeline is affected by a number of details including GIS data availability, permitting system integration issues, local sites to be supported, etc. All of these issues are identified and in Stage 1 and a timeline is developed. Typically, implementations range from 4-6 weeks. Stage 1—Project Kickoff Municipality Deliverables: • Discussion about project objectives, quantifiable goals and requirements • A primary contact person to STIR Helper • Identification of all local short term rental sites (local sites) that need to be included in monitoring • Details on third party integrations required STIR Helper Deliverables: • STIR Helper will create a project team which will include the following resources: project manager, development resources, testing recourses and validator technicians. The project manager is the primary contact person for the municipality. • Project plan including timelines, implementation priorities, etc. Stage 2— Parcel Data Normalization This is the baseline data that STIR Helper will use to identify short-term rentals listings from the national hosting sites like HomeAway and Airbnb as well as the local sites that pertain to just Maui. Municipality Deliverables: • Parcel Data File The following parcel data is usually acquired from the County's Assessors office or from the city's planning department. In most cases the data is downloaded from the county's Geographic Information Systems (GIS). The data file needs to be delivered to STIR Helper in a format that can be imported into Microsoft Excel. Required Fields Optional Fields A- Parcel Number L- Number of Bathrooms B-Owner Name 1 M - Number of Bedrooms C- Owner Name 2 N - Number of Garage Stalls D- Mailing Street Address 0- Property Latitude E- Mailing City P- Property Longitude F- Mailing State Q- Property Lot Size Sq Ft G - Mailing Zip Code R- Property Nickname H - Property Street Address S- House Size Sq Ft I - Property City T-Year Constructed 30 J - Property State U —Zone K- Property Zip Code STR Helper Deliverables: • Normalization of the parcel data file, uploaded to the STR Helper database. • Development and configuration of the nightly batch process. This process identifies internet listing from 20+ national hosting sites. • Mapping the municipality's boundary's including the latitude and longitude of each property. Stage 3—Deploy Project to Test Municipality Deliverables: • No deliverable to STR Helper unless municipality is going to assist in validation of internet listings. If this is the case then training of municipality resources need to be scheduled. STR Helper Deliverables: • Code is deployed from the development environment to the test environment. • Quality Assurance signoff that the software is ready for production rollout. Stage 4— Deploy Project to Production Municipality Deliverables: • No deliverable to STR Helper STR Helper Deliverables: • STR Helper is rolled to production. • Logins are created for municipality's users Stage 5—Listing Validation and Training Municipality Deliverables: • No deliverable to STR Helper STR Helper Deliverables: • STR Helper will deploy validator technicians to start the validation process. Stage 6— Registrations/ Mail Merge/Web Portals/Tax and Custom Reports Municipality Deliverables: These are optional features within STR Helper. If any of these features are to be deployed, then the following artifacts are required: STR Registrations (Permits or Licenses) • Data file containing all STR registrations and property managers. Registration data file must include parcel ID number and address. 31 9 Mail Merge • 6 letters can be uploaded into STIR Helper. Microsoft Word file format is preferred. • Logo files. JPG format is preferred. Web Portals • No deliverable to STR Helper unless customization work is needed to the standard web layouts Tax and Custom Reports • Data and report requirements are needed for tax and custom reports. Calendaring and Reviews • No deliverable to STR Helper. STR Helper Deliverables: • For each of the features listed above, STR Helper will assign development, quality assurance, and training resource to deploy the agreed upon features and software customizations. Stage 7—Training& Support Municipality Deliverable: • List of e-mail addresses for login Ids to STR Helper production environment. STR Helper Deliverable: • Webinar trainings for STR Helper features • Support e-mail address (support@strhelper.com) Best efforts to answer e-mail questions within 12 hours. • On Site training is available for a fee. 32 Statements of Compliance Professional Services Bear Cloud Software understands and agrees to fully comply with all terms and Conditions of the of the City of Palm Desert's standard Professional Services Agreement as provided in the associated rfp. Compliance Bear Cloud Software agrees to comply with all applicable federal and state laws, including labor laws. Litigation Bear Cloud Software has not been involved with litigation nor is currently involved with any litigation. 33 Conclusion We have built a product focused on the myriad complications associated with regulating short term rentals in a rapidly evolving marketplace. We are candid about what we do, what we will not do and what we are in the process of implementing. We partner very closely with our customers at all phases of the sales, implementation and support process —we are confident that our references will testify to that. The process of building and implementing short term regulation software is fraught with problems. We come from the world of municipal government and understand those issues. We have also hired engineers and product managers with decades of enterprise software experience. The combination of first-hand operational knowledge of short term rental regulation and enterprise software experience makes us unique among our competitors. We have taken the approach of building depth into our product to ensure that when we say someone is non-compliant, we are very certain they are non-compliant. We take great pains to communicate to our customers the limitations of our model, which we continue to address daily. However, today, the limitations are the limitations. For example, our process for verification of listings is both unique and as close to fool proof as exists. We go through an exhaustive technical and manual process to link any advertised property to a known GIS parcel id. There is no question that the ad we have identified is in fact the record in the tax rolls. Sending a notification to someone who honestly is not renting their house is something we take great pains to avoid. In other cases, for instance tax under-reporting, we work closely with our customers to communicate the limitations of the system. We continue to explore statistical measures that will allow us to better identify under-reporting but today we are limited to elements we track within the advertisement universe. However, today the approach has its limitations. Our product and affiliated services continue to evolve. We are constantly working with both customers and prospects to implement new features. Our Agile-based development methodology allows us to identify and implement new features continuously. However, we will not intentionally misrepresent any feature set or sell "vaporware." As we grow, we also continue to add resource. We are well financed and growing revenues quickly, which allow us to add development resource. That said, as in any software enterprise, the more code that is developed, the more maintenance and support is required, so this is not necessarily a linear cycle. For example, our implementation of zones today is simplistic and limited. We are in the process of developing a far more sophisticated approach to this problem as multiple jurisdictions have requested the same feature. We believe that in the next 6-8 weeks we will deliver the most sophisticated solution to this problem available. 34 W Finally, there are some features that we will continue to work with customers and prospects to prioritize. If it is deemed to be critical for either legal or operational reasons, we will commit to the feature and communicate an expected delivery date. Software, more so than most conventional products, is constantly evolving. As a result, our relationship with our customers is critical. Our ability to understand the needs of the marketplace, implement those features that meet those needs and communicate closely with customers to set expectations will determine our success. We are committed to an open, honest relationship with our customers. We hope to work with Palm Desert to build a better, more vibrant community. 35 Response to Palm Desert, CA - Pricing Proposal — Professional Consulting Services/Systems for Short Term Rental Monitoring & Enforcement Prepared by: Bear Cloud Software John Spencer February 15, 2018 (956) 748-9193 Loh ns encer strhel er, . www.strhelper.com STR Helper Workgroup Edition for up to 2,500 short term rental listings- $28,500 annually • 1 year term, renewable under same terms • This is a fixed cost bid with no hidden or variable costs, unless explicitly noted below • Implementation tasks are included as part of the tfp response, but typical implementation is 4-6 weeks. The system will "go live" upon receipt of GIS data from the City. However, the system will not likely be fully functional for 4 weeks. Product includes: • STR Helper, including 2 Salesforce Licenses • Complaint, Listings, Tax and Registration Portals • Integration to Superion Traklt Licensing system* • Reporting Modules covering Listings, Compliance, Tax and Nuisance Property Reporting • Calendaring Option for occupancy data • Discovery of all existing advertised short term rentals, creating a baseline of advertised inventory in Palm Desert • US-based, human validation of EVERY advertised rental, meaning we can map every advertised rental to a parcel id in the county assessor database, including local property management sites in addition to HomeAway, VRBO, Airbnb, TripAdvisor/Turnkey, et. al. • Filtering of advertised rentals that do not qualify as short term rentals (for example, bed and breakfasts, hotel rooms, etc.) • Elimination of duplicate listings between sites *We have made repeated attempts to discuss the API endpoints we need in order to provide an automated integration. We have decided to wait to see if STR Helper is the right fit for Palm Desert before pursuing further. The rfp details a workaround if for some reason direct API integration is not possible. This bid also includes Platinum Level Support, which includes • Normalization of GIS data within the STR Helper schema—we will import the data from your GIS/County Assessor system and format it to our data structure. • On-going validation of newly discovered properties • Custom Reporting support • On-going property validation • 24 x 7 x 365 complaint hotline • Unlimited remote training • Named support contact Add-on/Variable cost items include: • Additional Salesforce licenses - $250/each • On-site training- $750/day, plus travel Timeline Implementation plan Below is an outline for implementation of SRT Helper. In Stage 1, we will define a detailed project timeline. Implementation timeline is affected by a number of details including GIS data availability, permitting system integration issues, local sites to be supported, etc. All of these issues are identified and in Stage 1 and a timeline is developed. Typically, implementations range from 4-6 weeks. Stage 1— Project Kickoff— 1 day Municipality Deliverables: • Discussion about project objectives, quantifiable goals and requirements • A primary contact person to STIR Helper • Identification of all local short term rental sites (local sites) that need to be included in monitoring • Details on third party integrations required STIR Helper Deliverables: • STIR Helper will create a project team which will include the following resources: project manager, development resources, testing recourses and validator technicians. The project manager is the primary contact person for the municipality. • Project plan including timelines, implementation priorities, etc. Stage 2— Parcel Data Normalization—Variable but typically 1 week This is the baseline data that STIR Helper will use to identify short-term rentals listings from the national hosting sites like HomeAway and Airbnb as well as the local sites that pertain to just Maui. Municipality Deliverables: • Parcel Data File The following parcel data is usually acquired from the County's Assessors office or from the city's planning department. In most cases the data is downloaded from the county's Geographic Information Systems (GIS). The data file needs to be delivered to STIR Helper in a format that can be imported into Microsoft Excel. Required Fields Optional Fields A- Parcel Number L- Number of Bathrooms B-Owner Name 1 M - Number of Bedrooms C-Owner Name 2 N - Number of Garage Stalls D- Mailing Street Address O- Property Latitude E- Mailing City P- Property Longitude F- Mailing State Q- Property Lot Size Sq Ft G - Mailing Zip Code R- Property Nickname H - Property Street Address S- House Size Sq Ft I - Property City T-Year Constructed J - Property State U—Zone K- Property Zip Code STR Helper Deliverables: • Normalization of the parcel data file, uploaded to the STR Helper database. • Development and configuration of the nightly batch process. This process identifies internet listing from 20+ national hosting sites. • Mapping the municipality's boundary's including the latitude and longitude of each property. Stage 3—Deploy Project to Test— 1 day Municipality Deliverables: • No deliverable to STR Helper unless municipality is going to assist in validation of internet listings. If this is the case then training of municipality resources need to be scheduled. STR Helper Deliverables: • Code is deployed from the development environment to the test environment. • Quality Assurance signoff that the software is ready for production rollout. Stage 4— Deploy Project to Production— 1 day Municipality Deliverables: • No deliverable to STR Helper STR Helper Deliverables: • STR Helper is rolled to production. • Logins are created for municipality's users Stage S—Listing Validation and Training—3-4 weeks,then on-going Municipality Deliverables: • No deliverable to STR Helper STR Helper Deliverables: • STR Helper will deploy validator technicians to start the validation process. Stage 6— Registrations/ Mail Merge/Web Portals/Tax and Custom Reports—2 weeks, variable Municipality Deliverables: These are optional features within STR Helper. If any of these features are to be deployed, then the following artifacts are required: STR Registrations (Permits or Licenses) • Data file containing all STR registrations and property managers. Registration data file must include parcel ID number and address. Mail Merge • 6 letters can be uploaded into STR Helper. Microsoft Word file format is preferred. • Logo files. JPG format is preferred. Web Portals • No deliverable to STR Helper unless customization work is needed to the standard web layouts Tax and Custom Reports • Data and report requirements are needed for tax and custom reports. Calendaring and Reviews • No deliverable to STR Helper. STR Helper Deliverables: • For each of the features listed above, STR Helper will assign development, quality assurance, and training resource to deploy the agreed upon features and software customizations. Stage 7—Training& Support—2 days Municipality Deliverable: • List of e-mail addresses for login Ids to STR Helper production environment. STR Helper Deliverable: • Webinar trainings for STR Helper features • Support e-mail address (support@strhelper.com) Best efforts to answer e-mail questions within 12 hours. • On Site training is available for a fee. HOST COMPLIANCE Regarding: RFP— Professional Consulting Services/ Systems for Short-term Rental Monitoring& Enforcement San Francisco, March 1st, 2018 To Whom It May Concern, Thanks for allowing us the opportunity to present this proposal. Based on the background information provided in the bid materials, and our extensive experience delivering these exact types of services and software to more than 110 cities and counties across North America, we believe we are in a unique position to help address City of Palm Desert's short-term residential rental compliance monitoring and enforcement challenges. In addition to being the clear market leader in terms of the number, size and sophistication of our local government clients, Host Compliance's superior scale and experience gives us a unique know-how advantage in serving resort and desert communities like the City of Palm Desert. Specifically, Host Compliance already serves 43 other California cities and counties and 47 other non-California resort and destination communities, and we are therefore very familiar with the unique short-term rental related challenges facing these unique areas. Finally, Host Compliance has extensive experience working in areas with restrictive STR regulations (i.e. the cities of Napa, Healdsburg and Hermosa Beach, CA) and many gated communities (i.e. the towns of Fountain Hills and Paradise Valley, AZ). We are therefore acutely aware of the challenges associated with identifying A.) "sneaky" short-term rental operators that try to stay below the radar, and B.) short-term rentals in gated communities and areas with many multi-family properties.To overcome these obstacles, Host Compliance has developed many unique and proprietary artificial intelligence technologies and methodologies to maximize our identification rates despite of the obvious data challenges. No other vendor has the same level of experience identifying "sneaky hosts" and rental units in multi-family housing units and gated communities. Given all the above, we believe Host Compliance would be the ideal partner to the City and can commit to quickly taking its short-term residential rental compliance and enforcement program to the next level. In fact, we would be able to start the work within a few days of being awarded the contract. Once again thanks for the opportunity to present this proposal. Feel free to contact me at (857) 928- 0955 or send me an email on binzer@hostcompliance.com if you have any concerns or questions. By signing this letter and proposal, I hereby acknowledge having received, reviewed and agree to be bound by the terms and conditions outlined in the supplied RFP materials. Best Regards, Ulrik Binzer, President & CEO www.hostcompliance.com 735 Market Street Floor 4 San Francisco, CA 94103 '�J V HOST COMPLIANCE City of Palm Desert RFP - Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement TECHNICAL PROPOSAL Submitted by Host Compliance LLC Ulrik Binzer, CEO, - 857-928-0955 - binzer(cDhostcompliance.com 735 Market St, Floor 4, San Francisco, CA 94103 Submission Authorized by: Ak. &V-� Ulrik Binzer, President & CEO City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Contents CONTENTS.........................................................................................................................................1 EXECUTIVESUMMARY.......................................................................................................................3 1. ORGANIZATION, CREDENTIALS AND EXPERIENCE..........................................................................11 I.A. Summary of Company Qualifications, Credentials and Experience............................................11 1.B. Company and Team Overview..........................................................................................................11 1.C. References..........................................................................................................................................13 2. UNDERSTANDING OF THE SCOPE OF WORK/PROJECT................................................................... 17 Task 1. Monitoring and analyzing Palm Desert's STIR Market...............................................................18 Task 2. Creating and maintaining a database of both permitted and non-permitted STIR units.............19 Task 3. Aggregating and de-duplicating STIR listings from various STIR websites.................................20 Task 4. Quickly and accurately identifying the exact physical address of the City's STRs....................20 Task 5. Allowing for the differentiation of monitoring and enforcement activities...................................21 Task 6. Capturing full-resolution screenshots of all active STIR Listings................................................21 Task 7. Providing an easy to use interface for STIR data .......................................................................22 Task 8. Accurately and continuously cross-referencing STIR database with the City's Permit Database ................................................................................................................................................................24 Task 9. Identifying TOT under-reporting.................................................................................................25 Task 10. and Task 11. Providing 24/7/365 STIR telephone hotline services and accepting and forwarding evidence of alleged STIR ordinance violations to the appropriate authorities.......................26 Task 12. Providing city personnel 34/7/365 online access to the City's STIR related data services ......28 Implementation, Training and Support....................................................................................................28 3.ACCEPTANCE OF PROFESSIONAL SERVICES AGREEMENT...............................................................29 4. COMPLIANCE...............................................................................................................................29 5. LITIGATION..................................................................................................................................29 6. REFERENCES................................................................................................................................30 7. FEES ............................................................................................................................................30 8. PROPOSED TIMELINE...................................................................................................................30 © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE APPENDIX 1 -OPTIONAL ADDITIONAL FEATURES OUTSIDE OF THE PROPOSED SCOPE OF WORK........31 Optional Service A- Online/ Mobile Enabled Permitting .......................................................................31 Optional Service B -Automated permit and TOT compliance related notification/mailing services.......31 Optional Service C -TOT Collection Forms............................................................................................33 Optional Service D -TOT Audit Support Services..................................................................................33 APPENDIX 2-HOST COMPLIANCE SECURITY OVERVIEW...................................................................34 Ourdata centers........................................................................................................................................34 Physicalsecurity.......................................................................................................................................34 Environmental security.............................................................................................................................35 Business continuity management...........................................................................................................35 Secure transmission and sessions.........................................................................................................35 Accesscontrols.........................................................................................................................................35 Backups......................................................................................................................................................36 Code testing and assessments................................................................................................................36 PaymentSecurity ......................................................................................................................................36 Securitymonitoring...................................................................................................................................37 APPENDIX 3—LIST OF FIGURES........................................................................................................38 © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Executive Summary Serving more than 110 local governments (including 43 California cities and counties) with the exact same types of software tools and services described in this RFP, Host Compliance has developed a unique understanding of what works and what doesn't when it comes to enforcing vacation rental regulations and collaborating with staff to improve their productivity and effectiveness. In addition to the vast expertise and local experience we have gained from working in the 43 California communities with whom we are contracted, Host Compliance's has also developed deep expertise in serving resort communities similar to Palm Desert. This deep expertise and experience stems from our work in 47 other non-Californian resort and destination communities such as Las Vegas, Nashville, and Town of Yucca Valley which are faced with the same types of short-term rental related challenges as Palm Desert. Below is a list of Host Compliance's 43 California local government clients. Town of Yucca Valley City of Carmel-by-the-Sea City of Pismo Beach City of Imperial Beach City of Monterey Madera County City of Newport Beach City of San Luis Obispo Placer County City of Oceanside City of West Hollywood Mariposa County City of Carlsbad City of Pasadena City of Berkeley City of Dana Point City of Malibu Mendocino County City of Hermosa Beach Town of Mammoth Lakes City of Atascadero City of Buena Park City of Claremont City of Orinda City of San Rafael Monterey County Marin County Town of Truckee Shasta County Mono County City of Napa Del Norte County City of South Lake Tahoe San Luis Obispo County City of Seaside Santa Cruz County City of Healdsburg City of Petaluma City of Avalon City of Mill Valley City of Benicia Marin County City of Alhambra In addition, Host Compliance has extensive experience working in areas with restrictive STR regulations (i.e. the cities of Napa, Healdsburg and Hermosa Beach, CA) and many gated communities (i.e. the towns of Fountain Hills and Paradise Valley, AZ). We are therefore acutely aware of the challenges associated with identifying A.) "sneaky" short-term rental operators that try to stay below the radar, and B.) short-term rentals in gated communities and areas with many multi-family properties. © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE To overcome these obstacles, Host Compliance has developed many unique and proprietary artificial intelligence technologies and methodologies to maximize our identification rates despite of the obvious data challenges. In addition, we have also recently launched a new set of functionalities that allow us to easily send letters to the owners and managers of multi-unit complexes and gated communities to enlist their help with identifying otherwise unidentifiable apartment, condo and gated community rentals. Our initial results indicate that this new approach dramatically improves our already high identification rates. As an example, we have received more than 450 tips since we rolled out this new set of features in Nashville, TN. To our knowledge no other vendor has the same level of proven experience identifying "sneaky hosts" and rental units in multi-family housing units and gated communities! This deep expertise and experience, coupled with our California presence (our San Francisco headquarters is only 1 hour away by plane) would allow Host Compliance to partner with the City of Palm Desert to quickly take the City's STR enforcement and compliance monitoring program to the next level. To provide as much choice for Palm Desert as possible, Host Compliance will present two different versions of the software and services offerings with the hope that this will enable the city to find an optimal solution to fit its needs and budget constraints: 1. The Standard Host Compliance Solution is optimized for cost and includes all the features available from other vendors of short-term rental compliance monitoring and enforcement services. That said, the Standard Host Compliance Solution is offered in the form of an integrated cloud-based software-as-a-services solution. This stands in contrast to the competition's offerings which we have heard described as a patchwork of unproven and error-prone manual processes performed by sub-contractors. 2. The Advanced Host Compliance Solution is even more sophisticated and is designed to surpass all alternative solutions in the marketplace in terms of features and performance. While slightly costlier, this solution provides additional value in terms of revenue enhancement capabilities and administrative cost savings over and above the benefits achieved by deploying any other short-term rental compliance monitoring solution available in the marketplace. On the following pages you will find a side-by-side comparison of the two versions of Host Compliance's proposed solutions. © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE STANDARD HOST COMPLIANCE ADVANCED HOST COMPLIANCE SOLUTION SOLUTION (COMPARABLE TO OTHER (RECOMMENDED) SOLUTIONS IN THE MARKET PLACE) Task 1. • Weekly monitoring of 24 short- • Weekly monitoring of 50+short-term Monitoring and analyzing term rental websites rental websites Palm Desert's STR Market ' Weekly list of Palm Desert's active • Weekly list of Palm Desert's active and inactive STR listings and inactive STR listings Task 2. • Complete always up-to-date database of the City's active and inactive short- Creating and maintaining a term rental listings and rental units database of both permitted • Database of both permitted and non-permitted short-term rental units and non-permitted STR units Task 3. • Automatic aggregation, • Automatic aggregation, Aggregate and de-duplicate consolidation and de-duplication consolidation and de-duplication STR listings from various of listings from across 24 of listings from across 50 different different short-term rental short-term rental websites STR websites websites Task 4. • Quick and accurate identification of STR properties in Palm Desert's Quickly and accurately jurisdiction including full address, parcel info and owner contact identify the exact physical information for all identifiable STRs in the city address of the City's STRs • All available listing and contact information for non-identifiable STRs Task 5. • Ability to segment data and target different types of STR operators based Allow for the differentiation on zoning designation, listing status, listing activity level, rental revenues, of monitoring and estimated occupancy rate, utilization rate and many other parameters enforcement activities • Ability to design standard reports for streamline workflows and reporting Task 6. • WEEKLY high-resolution • SEMI-WEEKLY(2X PER WEEK) Capture full-resolution screenshots of all active short- high-resolution screenshots of all screenshots of all active term rental listings active short-term rental listings • Full screen screenshots that • Full screen screenshots that STR Listings capture all information shown capture all information shown online online • Date and time-stamps on all • Date and time-stamps on all screenshots screenshots • Screenshots captured at random • Screenshots captured at random days/times to eliminate gaming days/times to eliminate gaming behavior of non-compliant STR behavior of non-compliant STR operators operators Task 7. • Real-time interactive and fully • THE NEWEST LIGTHNING FAST Provide an easy to use integrated cloud-based STR VERSION of Host Compliance's interface for STR data data management platform real-time interactive and fully • WEEKLY reporting on zoning, integrated cloud-based STR data permit and other compliance management platform status indicators • Reporting by address and by owner © Host Compliance LLC 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / • Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE STANDARD HOST COMPLIANCE ADVANCED HOST COMPLIANCE SOLUTION SOLUTION (COMPARABLE TO OTHER (RECOMMENDED) SOLUTIONS IN THE MARKET PLACE) • Quick search, filtering and • REAL-TIME reporting on zoning, sorting capabilities permit and other compliance status indicators • Reporting by address and by owner • Quick search, filtering and sorting capabilities Task 8. • WEEKLY matching of identified • REAL-TIME matching of identified Accurately and continuously STR properties with City of Palm STR properties with City of Palm Desert's registered STR Desert's registered STR cross-reference STR properties and/or TOT account properties and/or TOT account database with the City's holders • Always up-to-date list of short- holders Permit Database • Always up-to-date list of short-term term residential rentals operating Y P- illegally or not in compliance with residential rentals operating zoning, permit, nuisance issues, illegally or not in compliance with and records of all past attempts zoning, permit, nuisance issues, to bring the short-term and records of all past attempts to residential rental into compliance bring the short-term residential • Monthly staff report on City of rental into compliance Palm Desert's zoning and permit • Monthly staff report on City of compliance Palm Desert's zoning and permit • Full case history on all non- compliance compliant listings including the • Full case history on all non- dates the listings were activated, compliant listings including the dates the listings were activated, removed, re-activated etc. removed, re-activated etc. • WEEKLY PRO-ACTIVE PERMIT COMPLIANCE MONITORING i.e. ongoing monitoring of compliance with the city's requirement to list a valid permit number on all advertisements. Task 9. • Proactive tax compliance Proactive tax compliance Identify TOT under- monitoring: monitoring: o WEEKLY monitoring of 24 o WEEKLY monitoring of 50 reporting short-term rental websites for short-term rental websites for signs of rental activity signs of rental activity o Detailed monthly information o Detailed monthly information on reviews and pricing for on reviews and pricing for each listing each listing o Consolidated utilization and o Consolidated utilization and revenue estimates across revenue estimates across listing platforms using listing platforms using INDUSTRY STANDARD ADVANCED REVENUE, REVENUE AND UTILIZATION AND TAX © Host Compliance LLC 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com • City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement "-,/ 4 - HOST COMPLIANCE STANDARD HOST COMPLIANCE ADVANCED HOST COMPLIANCE SOLUTION SOLUTION (COMPARABLE TO OTHER (RECOMMENDED) SOLUTIONS IN THE MARKET PLACE) UTILIZATION ESTIMATION FRAUD DETECTION MODELS ALGORITHMS o Continuously updated list of o Continuously updated list of short-term rental owners short-term rental owners suspected of failing to report suspected of failing to report of under-reporting taxes of under-reporting taxes • Custom reports and analytics to • Custom reports and analytics to support tax audits and other support tax audits and other TOT TOT related investigations related investigations Task 10. and 11. . 24/7 staffed telephone hotline • 24/7 staffed telephone and hotline Provide 24/7/365 STR and mobile-enabled web forms and mobile-enabled web forms for for neighbors to report non- neighbors to report non- telephone hotline services emergency problems related to emergency problems related to and accept and forward STR properties STR properties evidence of alleged STR . Full documentation of all • Full documentation of all reported ordinance violations to the reported incidents incidents appropriate authorities • Digital recordings and written • Digital recordings and written summary reports of all calls summary reports of all calls • Ability for neighbors to include • Ability for neighbors to include photos, video footage and sound photos, video footage and sound recordings to document recordings to document complaints complaints • Real-time outreach to • Real-time outreach to owners/managers of problem owners/managers of problem properties (whenever owner's properties (whenever owner's contact info is known) contact info is known) • Full documentation of • Full documentation of owner/manager outreach owner/manager outreach activities activities . Detailed reporting on incidents • Detailed reporting on incidents • Automatic escalation of issues to • Automatic escalation of issues to emergency responders where emergency responders where required required • LOCAL PALM DESERT PHONE • National phone number i.e 435- NUMBER STR-HELP aka 435-787-4357 Task 12. . Real-time fully interactive web application and dashboards that gives Provide city personnel authorized City personel the ability to continuously monitori all short-term 34/7/365 online access to residential rental activity by: o Location the City's STR related data o Type of rental units being rented services o Advertisement status o Permit status o General compliance status o The number and type of issues, problems and violations resolved and unresolved associated with short-term residential rental activity © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com -� City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE STANDARD HOST COMPLIANCE ADVANCED HOST COMPLIANCE SOLUTION SOLUTION (COMPARABLE TO OTHER (RECOMMENDED) SOLUTIONS IN THE MARKET PLACE) o Etc. Implementation, Training Turnkey on-site and video conference implementation and project and Support management support: o In-person kick-off meeting with management and staff to discuss project approach, regulatory context, data availability, goals and objectives and to clarify roles and responsibilities o Monthly video conference project steering committee meetings with management and staff to report on, and refine, project progress, approach, goals and objectives and to clarify roles and responsibilities o Ad-hoc staff level video conference implementation meetings as needed • Unlimited free account management, training and support provided via video conference or phone. • Unlimited free email and phone support • Full access to Host Compliance's comprehensive library of technical documentation and online training and support materials • Free software upgrades and feature enhancements during the term of the contract Complimentary advice on 5 HOURS of complimentary 10 HOURS of complimentary STR Trends, Best short-term residential rental short-term residential rental Practices, and STR regulation and enforcement best regulation and enforcement best practices consulting services practices consulting services from Legislation Activity in from Host Compliance's team of Host Compliance's team of California and around the nationally recognized experts nationally recognized experts Country including Ulrik Binzer and including Ulrik Binzer and Jeffrey Jeffrey Goodman Goodman In addition to these solutions, Host Compliance also provides other advanced short-term residential rental related compliance and enforcement services that may be relevant to the City now or in the future. While we understand that these services are not currently part of the scope of work, we believe that it is worth describing them here in case the City is interested in making sure that the chosen vendor for this RFP can provide an integrated solution that is as comprehensive and as "future proof' as possible. These optional additional services are described in more detail below and in Appendix 1. © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE OPTIONAL ADDITIONAL SERVICES AVAILABLE IFMHEN NEEDED. STANDARD HOST COMPLIANCE ADVANCED HOST COMPLIANCE SOLUTION SOLUTION (COMPARABLE TO OTHER SOLUTIONS (RECOMMENDED) IN THE MARKETPLACE) Optional Service A. Fully customizable online permit application forms: Online/Mobile o 24/7/365 availability Enabled Permitting ° Apply online using any internet browser or mobile device o Automatically collect and verify required documentation such as proofs of permanent residency, landlord permissions, HOA approvals, insurance policies etc. o Enable applicants to review and electronically sign applications and affidavits under penalty of perjury o Instantly determine and verify permit eligibility by cross-referencing application info with other data sources such as electronic zoning maps, property ownership records, subsidized housing databases, lists of Ellis Act evictions • Seamlessly collect debit card, credit card and electronic check(ACH) payments without having to worry about PCI compliance and complex implementation processes • Reduce back office complexity and unnecessary paperwork to allow existing personnel to focus on higher value activities • Put renewals on autopilot by automatically notifying permit/license holders of renewal deadlines Optional Service B. • Weekly pro-active and systematic outreach to unregistered and/or illegal STIR Automated permit operators (using Palm Desert's advanced multi-page form letters) and TOT compliance ' Advanced ability to precisely segment and target different types of letter recipients using an unlimited number of different form letter templates related • Cloud-based self-service letter template management system to streamline the notification/mailing management of letter templates and mailing criteria services . Ability to send FIRST CLASS, CERTIFIED and/or REGISTERED letters. • Proof of contact provided in the form of FIRST CLASS, CERTIFIED, and/or REGISTERED letter tracking info (where such data is provided by LISPS)and PDF copies of all letters Optional Service C. . Fully customizable mobile optimized webforms to streamline and automate the TOT Collection calculation and collection of transient occupancy taxes Forms • Ability to differentiate collection mechanisms based on whether rental activity takes place on Airbnb vs other platforms not covered by voluntary tax collection agreements • 24/7/365 availability • Accessible online using any internet browser or mobile device • Automatically collect and verify any required backup documentation • Enable payees to review and electronically sign tax returns under penalty of perjury • Seamlessly collect debit card, credit card and electronic check (ACH) payments without having to worry about PCI compliance and complex implementation processes • Reduce back office complexity and unnecessary paperwork to allow existing personnel to focus on higher value activities © Host Compliance LLC 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE STANDARD HOST COMPLIANCE ADVANCED HOST COMPLIANCE SOLUTION SOLUTION (COMPARABLE TO OTHER SOLUTIONS (RECOMMENDED) IN THE MARKET PLACE) • Easily reconcile tax payments with the city's bank account Optional Service D. . Pro-active, systematic and data-informed outreach to short-term residential rental TOT Audit Support operators suspected of under-reporting TOT(using the City's form letters) Services • Integrated mobile-enabled web forms to streamline TOT audits and the collection of rental activity documentation from hosts suspected on TOT under-reporting © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE 1 . Organization, Credentials and Experience LA. Summary of Company Qualifications, Credentials and Experience As a software, data and service provider exclusively focused on helping local governments overcome the compliance challenges associated with vacation home vacation rentals, Host Compliance is in possession of the proprietary software tools, experience and know-how to advise Palm Desert on the best practices for effectively regulating and enforcing short-term rentals and quickly identify, track and bring Palm Desert's currently non-compliant short-term rentals into compliance. Host Compliance is currently contracted with more than 110 cities and counties similar to the proposed project. 43 of these cities and counties are located in California and as mentioned earlier, another 47 of our clients are non-California based resort and destination communities with challenges similar to Palm Desert's. LB. Company and Team Overview Host Compliance LLC is a privately held company with its office located at 735 Market St, Floor 4, San Francisco, CA 94103. Founded in 2015, the company has quickly become the leading provider of short-term rental compliance monitoring and enforcement solutions to local governments. Ulrik Binzer got the idea to found Host Compliance when he was serving on a committee appointed by his local town council (in Tiburon, CA) to study possible ways to regulate short- term rentals in the local community. To prepare for the committee work Ulrik took it upon himself to study how other local governments had approached the regulation of vacation rentals. Through this research it became evident that without detailed vacation rental activity data and the support of sophisticated technology it was virtually impossible to 1.) Create effective and fair rules and 2.) Enforce those regulations in an equitable and consistent way. As a result, Ulrik set out to build the tools and services with the intent to make them available to municipalities of all sizes at a fraction of the cost of what it would cost them to build and run such technology internally. While Host Compliance's proposed solution is primarily delivered in the form of a software-as- a-service offering, the on-going project management, relationship management and advisory and consulting work will be led by four of North America's leading authorities on the topic of short-term rental regulation, compliance monitoring and enforcement: Ulrik Binzer— Overall Project Management and Leadership Ulrik is the Founder and CEO of Host Compliance, the industry leader in short-term rental monitoring and compliance solutions for local governments. A pioneer in the short-term rental © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE enforcement solution space, Ulrik developed the first short-term rental compliance monitoring tools and now uses his expertise and insights to help local governments across North America implement, monitor and enforce short-term rental regulation. Ulrik frequently speaks on the topic of short-term rentals and has been featured at a number of conferences including the American Planning Association's National Planning Conference, The University of Minnesota's Symposium on the Sharing Economy and at numerous events organized by the American Planning Association and the California Association of Code Enforcement Officers. Prior to founding Host Compliance, Ulrik served as Chief Operating Officer of Work4 Labs — an 80- person Venture Capital backed technology company with offices in Silicon Valley and Europe, and Soligent Distribution LLC -the largest distributor of solar equipment to local governments and businesses in the Americas. Before assuming executive management roles in technology companies, Ulrik served as Vice President of the private equity firm Golden Gate Capital, as a strategy consultant at McKinsey & Company and as an Officer in the Danish Army where he commanded a 42-person Platoon and graduated first in his class from the Danish Army's Lieutenant School. Ulrik received his M.B.A. from Harvard Business School where he was as a Baker Scholar (top 5% of his class) and earned his Bachelor of Science degree in International Business from Copenhagen Business School and New York University. David Marcus — Data management and analytics David is Host Compliance's technical Co-founder and a Caltech Applied and Computational Math graduate specialized in geospatial data science and information management. He has 9 years of experience building well-architected, scalable software. Prior to Host Compliance, David founded Routefriend.com, a web-based application for planning trips on buses and trains, serving 1.5 million monthly users. David's most recent experience was at DwellAware where he served as the Lead Data Scientist, developing models of risks and costs in the residential real estate sector. Prior to DwellAware, David served in various technical roles at a number of software companies including aboutLife, Urban Mapping, American Towns, Nielsen Analytic Consulting and Hewitt Associates. David earned his Bachelor's Degree in Applied & Computational Mathematics at the California Institute of Technology and his Master's Degree in Anthropology from the University of Kent. Jeffrey B. Goodman — Policy analysis and development Jeffrey is an urban planner and considered one of the nation's leading authorities on short-term rentals and how they impact communities. He has worked with Host Compliance since early 2016. Jeff has previously contracted with the Cities of Vancouver, BC; Pasadena, CA; West © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Hollywood, CA; New Orleans, Los Angeles, CA and Airbnb, and advised researchers on short- term rentals in range of other cities including San Francisco, Portland, and New York. Jeff has spoken about short-term rentals across North America, including at the APA's National Planning Conference. He graduated from Yale College and earned his Masters of Urban Planning from Harvard University. He is the author of a recent featured article in Planning Magazine on the topic of vacation rental regulation. In combination, Host Compliance's management team provides a unique and differentiated skill- set and set of experiences that can greatly improve Palm Desert's ability to execute a successful short-term rental compliance monitoring and enforcement program. Stacy Pobatschnig — Software implementation and Customer Success Stacy leads Host Compliance's customer success team and is passionate about communication strategy, project management, and making positive impact for the thousands of permanent residents who are finding themselves priced out of the communities they work in and love. In fact, Stacy first learned about Host Compliance as she was looking for long term rental housing in the Lake Tahoe region and quickly realized that there was none available, partly due to the conversion of long-term rental housing into full-time vacation rentals. Prior to joining Host Compliance, Stacy ran her own consulting firm and served in various leadership roles at Recreational Equipment, Inc. (REI) and Orvis where she managed various marketing analytics and software implementation teams. Stacy earned her Master's in Business Administration from the University of New Hampshire and her undergraduate degree from Simmons College in Boston, MA. 1.C. References In a short time, Host Compliance has become the global leader in short-term rental regulation, compliance monitoring and enforcement and currently contracts with more than 85 cities and counties for such services. In addition, the company is adding several customers each month and building a large body of compliance monitoring and enforcement best practice as we go. Host Compliance is currently contracted with 43 California cities and counties to do similar work to the project described in the RFP. While we would be happy to introduce you to any of these (or any other) clients, here is the contact information for 10 of the most relevant local governments with similar needs to the needs of Palm Desert. City of Newport Beach, CA— Short-term rental Compliance Monitoring and Enforcement City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert — Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Host Compliance has been contracted with the City of Newport Beach for the last 16 months to identify vacation rentals and bring them into compliance with the City's ordinances. Project start date: March 2017 Project end date: ongoing Monique Navarrete City of Newport Beach License Supervisor P: 949-644-3148 E: M Nava rrete(aD-newportbeachca.gov Matt Cosylion Code Enforcement Division Supervisor, Community Development Department P: (949) 644-3217 E: MCosylion(anewportbeachca.gov City of West Hollywood, CA — Short-term rental Compliance Monitoring and Enforcement City of West Hollywood 8300 Santa Monica Blvd West Hollywood, CA 90069 Host Compliance has been contracting with the City of West Hollywood for the last 12 months to provide custom short-term rental related data, consulting and enforcement services. Project start date: January 2017 Project end date: ongoing Daniel Mick Code Compliance Supervisor City of West Hollywood P: 323-848-6882 E: Dmick(c�weho.org Town of Yucca Valley, CA — Short-term rental Compliance Monitoring and Enforcement Town of Yucca Valley. CA 57090 Twentynine Palms Highway Yucca Valley, CA 92284 Host Compliance has been contracted with the Town of Yucca Valley, CA since 1/1/2018 to identify vacation rentals and bring them into compliance with the Town's ordinances. Project start date: January 2018 Project end date: ongoing Sharon Cisneros Finance Manager © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE P: (760) 369-7207 E: scisnerosQyucca-valley.orq County of San Luis Obispo, CA— Short-term rental Compliance Monitoring and Enforcement County Government Center 1055 Monterey Street San Luis Obispo, CA 93408 Host Compliance has been contracted with the County of San Luis Obispo, CA for the last 16 months to identify vacation rentals and bring them into compliance with the County ordinances. Project start date: September 2017 Project end date: ongoing Justin Cooley Principal Financial Analyst -Auditor-Controller-Treasurer-Tax Collector P: (805) 781-5852 E: icooleyCa co.slo.ca.us City of Mill Valley, CA - Short-term rental Compliance Monitoring and Enforcement Mill Valley City Hall 26 Corte Madera Ave. Mill Valley, CA 94941 Host Compliance has been contracted with the City of Mill Valley for the last 15 months to identify vacation rentals and bring them into compliance with the City's ordinances. Project start date: October 2017 Project end date: ongoing Lisa Newman Senior Planner P: 415.388.4033 E: InewmanCcDcityofmillvalley.org City of Carlsbad, CA — Short-term rental Compliance Monitoring and Enforcement City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008-1949 Host Compliance has been contracted with the City of Newport Beach for the last 16 months to identify vacation rentals and bring them into compliance with the City's ordinances. Project start date: August 2017 Project end date: ongoing Kerry Jezisek © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Housing & Neighborhood Services - Code Enforcement Division P: 760-434-2883 E: kerry.iezisek(aD_carlsbadca.gov City of Napa, CA — Short-term rental Compliance Monitoring and Enforcement City of Napa Community Development Department, City of Napa 1600 First Street, Napa, CA 94559 Host Compliance has been contracted with the City of Hermosa Beach for the last 21 months to identify illegal vacation rentals and bring them into compliance with the City's ordinances. Project start date: May 2016 Project end date: ongoing Marie Gallo Code Enforcement Officer P: (707) 257-9361 E: mgallo(cDcityofnapa.org City of Hermosa Beach, CA— Short-term rental Compliance Monitoring and Enforcement City of Hermosa Beach 1315 Valley Drive Hermosa Beach. CA 90254 Host Compliance has been contracted with the City of Hermosa Beach for the last 16 months to identify vacation rentals and bring them into compliance with the Town's ordinances. The contract was recently renewed. Project start date: February 2017 Project end date: ongoing Oscar Verduzco Code Enforcement Officer P: (310) 318-0235 E: overduzcoCcDhermosabch.org Town of Truckee, CA — Short-term rental Compliance Monitoring and Enforcement Town of Truckee 10183 Truckee Airport Rd Truckee, CA 96161 Host Compliance has been contracted with the Town of Truckee for the last 17 months to identify vacation rentals and bring them into compliance with the Town's ordinances. The contract was recently renewed with an expanded SOW that in incudes online registration and collection of TOT . ©Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Project start date: February 2017 Project end date: ongoing Kim Szczurek Planning Director P: 530-363-0076. E: KSzczurek(d,)townoftruckee.com Placer County, CA — Short-term rental Compliance Monitoring and Enforcement County of Placer 2986 Richardson Dr Auburn, CA 95603 Host Compliance has been contracted with Placer County for the last 12 months to identify vacation rentals and bring them into compliance with the County's ordinances. Most of the work has been focused on TOT compliance monitoring, TOT auditing, registration and the collection of TOT using customized online forms. Project start date: December 2016 Project end date: ongoing Jerry Gamez Director-Administrative Services Department P: (530) 889-4278 E: igamez(cDplacer.ca.gov 2. Understanding of the Scope of Work/Project Host Compliance has worked with dozens and dozens of other local governments on projects identical or very similar to the one described in this RFP, and as such we fully understand the tasks and requirements described in Section 2.1 of the supplied RFP materials. Specifically, we are very skilled and experienced in all the tasks listed in the RFP, including: 1. Monitoring and analyzing Palm Desert's STR Market 2. Creating and maintaining a database of both permitted and non-permitted STR units 3. Aggregating and de-duplicating STR listings from various STR websites 4. Quickly and accurately identifying the exact physical address of the City's STRs 5. Allowing for the differentiation of monitoring and enforcement activities 6. Capturing full-resolution screenshots of all active STR Listings 7. Providing an easy to use interface for STR data 8. Accurately and continuously cross-referencing STR database with the City's Permit Database 9. Identifying TOT under-reporting © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE 10. Providing 24/7/365 STR telephone hotline services 11. Accepting and forwarding evidence of alleged STR ordinance violations to the appropriate authorities 12. Providing city personnel 34/7/365 online access to the City's STR related data services As provider of scalable yet customizable software-as-a-service and consulting service offerings, the way we plan to meet the requirements outlined in the RFP is through deployment of either our Standard or Advanced integrated cloud-based software-as-a-services solutions. Said differently, our solutions should be seen as a set of integrated and automated data sources and tools to supplement and improve the capabilities, efficiency and effectiveness of the city's experienced and qualified planning, permitting, code enforcement and finance department employees. Having these tools and data sources, will allow city staff to reallocate thousands of hours of lower value added "desk detective" and administrative work to activities that more rewarding and deliver much higher value to the city's residents. It has been our experience that this software-as-a-service centric service delivery approach is very effective and leads to the optimal results, citizen service levels and the optimal division of labor between Host Compliance and its clients. Host Compliance's solutions are build in-house and all data pertinent to our services are delivered through an integrated web interface. That said, we have partnered with leading call center and data center vendors to assure a high level of quality. For call center services we are working with AnswerConnect Teleservices, Inc out of Portland, OR. For data center and related services, we are using Amazon Web Services which is the industry's leading provider of such services. In the following section we will further describe how we plan to approach each of the tasks outlined Task 1. Monitoring and analyzing Palm Desert's STR Market Host Compliance has developed a set of proprietary technologies, methodologies and processes to quickly and cost-effectively monitor specific geographies for vacation rental listings. These sophisticated software tools and algorithms are deployed continuously across all the largest vacation rental websites, ensuring that our database of rental properties is always comprehensive and fully up-to-date. As of the time of writing, Host Compliance's Standard Solution includes the monitoring of 24 short-term rental websites on a weekly basis. In addition, Host Compliance is in the final stages of development of additional monitoring algorithms which will expand the list of websites monitored as part of the Advanced Host Compliance Solution to 50+. These new monitoring capabilities will be launched in the coming months. In combination, we believe the listings on these websites represent -r99% of the total universe of vacation rentals in Palm Desert. © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Figure 1 on page 38 is a map of the 3,147 currently active short-term rental listings in the City of Palm Desert. While Palm Desert currently has 3,147 active short-term rental listings, it is worth noting that the short-term rental market is incredibly dynamic and growing. To be specific, when we first analyzed Palm Desert's STR market in February 2017, we found only 2,845 listings. Now we find 302 more which might naively imply 11% growth. However, that net growth rate doesn't consider that 1,959 listings have been deactivated in the past 13 months. Factoring in those now inactive listings, it turns out that over the last 13 months, 1,950 new STR listings have been created in Palm Desert while an additional 311 previously inactive listings have been reactivated. In combination, this implies that the City would have had to identify 5,106 listings over the last 13 months in order to be fully up-to-speed on the current market. It also means that 72% of the currently active listings are new since February 2017. This is incredibly important to keep in mind as it 1.) Gives a much clearer picture of the number of listings that needs to be identified on an annual basis, and 2.) Highlights the importance of frequently monitoring the Palm Desert STR market place for new listings. Figure 2 on page 38 shows a more detailed version of this analysis. Task 2. Creating and maintaining a database of both permitted and non-permitted STR units Once Host Compliance has identified all active short-term rental listings within Palm Desert's jurisdiction, the next step is to add them to our constantly updated database. To ensure continuity, innovation and abundant access to engineering talent, Host Compliance's software is built on top of open source database technologies hosted on industry-standard platform technologies. Specifically, for our database we use PostgresSQL which is a powerful, open source object-relational database system. It has more than 15 years of active development and a proven architecture that has earned it a strong reputation for reliability, data integrity, and correctness. It is fully ACID compliant, has full support for foreign keys, joins, views, triggers, and stored procedures and has exceptional documentation. An enterprise class database, PostgreSQL boasts sophisticated features such as Multi-Version Concurrency Control (MVCC), point in time recovery, tablespaces, asynchronous replication, nested transactions (savepoints), online/hot backups, a sophisticated query planner/optimizer, and write ahead logging for fault tolerance. It is highly scalable both in the sheer quantity of data it can manage and in the number of concurrent users it can accommodate. PostgreSQL has won praise from its users and industry recognition, including the Linux New Media Award for Best Database System and five-time winner of the The Linux Journal Editors' Choice Award for best DBMS. © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Task 3. Aggregating and de-duplicating STR listings from various STIR websites Deduplicating short-term rental listings is critically important in order to get an accurate picture of the true scale and scope of the short-term rental market in any city. We have therefore invested significant data science and engineering resources into solving this problem. In addition, due to our very large scale relative to our competitors, we are in possession of the industry's largest dataset of short term rental listing data (more than 2.2 billion records to be exact) which has allowed us to deploy artificial intelligence at a massive scale. While it is beyond the scope of this document to describe the actual algorithms, the output of our de- duplication model is easy to understand. Specifically, we currently estimate that the City's 3,147 currently active listings represent 2,286 unique short-term rental units. This stand in contrast to the 1,228 currently issued permits and indicates that the current permit compliance rate is 53.7%. Task 4. Quickly and accurately identifying the exact physical address of the City's STRs Once the listing data has been aggregated, de-duplicated and consolidated the next step is to identify each identifiable listings' exact: • Location: o Parcel number o Situs address o Unit number (where possible and applicable) o Coordinates (latitude and longitude) o Zoning area o Code enforcement area (if applicable) • Host name • Property owner name • Property owner mailing address • Property type • Room type • Maximum advertised occupancy • # of bedrooms • # of bathrooms • Listing descriptions • Reviews • Estimated rental frequency • Rental rate • Minimum and maximum stay (where available) • ..and other pertinent information © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 www.hostcompliance.com City of Palm Desert — Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE The address, parcel number and owner identification is done by utilizing a combination of proprietary data sources, geospatial algorithms and our more than 165 highly trained address identification analysts. Given the large size of our analyst team we are able to identify thousands of new listings every day. This stands in stark contrast to our smaller competitors who rely on just a handful of analysts. The output of the address identification effort will be accessible to the relevant City of Palm Desert personnel through a secure password protected web application which is described in more detail later. Please note that this online data portal will continue to be updated on a weekly basis over the contact term. In addition to providing the addresses of all identifiable properties in the City, Host Compliance will also provide the City with the rationale for why any given listing is matched to the identified address. Having the rationale for the address match is critical if there is ever a dispute with a homeowner over whether his/her property was listed for vacation home rent at a given time. Task 5. Allowing for the differentiation of monitoring and enforcement activities In addition to providing rental unit addresses and listings specific data, Host Compliance can also provide sophisticated analytics on a city-level as well as the city's zoning district. Having this level of granularity enables the city to set and/or enforce different regulatory requirements for different parts of the city. In addition, Host Compliance provides the ability to segment data and target different types of STR operators based on listing status, listing activity level, rental revenues, estimated occupancy rate, utilization rate and many other parameters. To streamline the City's workflows and reporting process, Host Compliance has many standard reports that can dramatically speed up data retrieval. In case additional custom reports are needed, we can create those at no additional cost. Task 6. Capturing full-resolution screenshots of all active STIR Listings Given the importance of hard irrefutable evidence, we automatically capture full-screen high- definition screenshots of all active listings on a weekly (or semi-weekly) basis and attach these screenshots to each property's record in our database. The screenshots capture all information available online including each listings' review history and calendars. The screenshots are captured on a random time and day during the week to eliminate the risk of non-compliant short- term rental operators "gaming the system" by making their listings temporarily inactive during regular business hours. Please see Figure 3 on page 39 for examples of these full page, high- resolution screenshots. © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Task 7. Providing an easy to use interface for STR data User Interface and data management features included with both the Standard Host Compliance Solution and the Advanced Host Compliance Solution In addition to always providing the City with a complete and up-to-date database of all active short-term rental listings in City of Palm Desert's jurisdiction, Host Compliance has several other important data management capabilities that are included in both of our proposed solutions: • Host Compliance analyzes and segment short-term rental listings by all relevant dimensions including neighborhood (as defined by SHAPE files), usage type and property type. • Host Compliance matches all identified STR properties with Permitted STR properties • Host Compliance matches all identified STR properties' listing details with registration details such as maximum allowed occupancy etc. • Host Compliance provides an easy way for users to export the data into CSV or Excel formats for use in GIS and other systems • Host Compliance's data can be searched, filtered, segmented and analyzed by many parameters including: ■ Listing website ■ Listing URL ■ Coordinates ■ Address ■ Location (as defined by a boundary box or polygon i.e. neighborhood) ■ Zoning classification ■ Type of property (single family home, condo, apartment etc.) ■ Rental type (whole home, room rental, shared space etc.) • # of Bedrooms and Bathrooms ■ Maximum Occupancy (e.g. Sleeps 6) ■ Minimum # of nights available for rent ■ Host Name/ID ■ Listings of Other Rentals Offered by the Host ■ # of Reviews ■ First Review dates ■ Last review date • Date the property was first active ■ The estimated Rental Frequency based on publicly available data such as the# or reviews ■ The estimated number of days rented during the report period based on publicly available data such as the# or reviews and calendar activity ■ Nightly rental rate © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE ■ Weekly rental rate ■ The estimated minimum amount of taxes owed based on the estimated number of days rented during the report period ■ ...and many other parameters The user interface and features of the online data portal depends on whether City of Palm Desert decides to subscribe to the Standard Host Compliance Solution or our Advanced Host Compliance Solution. User Interface and data management features included with the Standard Host Compliance Solution The online data portal included with the Standard Host Compliance Solution is based on last year's version of Host Compliance's market-leading software and provides an easy to use way to review, manipulate and export data. It is updated in real time and accessible on a password protected website 24/7/365. As such it meets all the requirements listed in the RFP. Figures 4 and 5 on pages 40 and 41 shows some examples of the dashboards and reports that would be included with the Standard Host Compliance Solution. Please note that we for privacy reasons have redacted all identifiable information from the screenshots. User Interface and data management features included with the Advanced Host Compliance Solution The online data portal included with the Advanced Host Compliance Solution provides the newest version of Host Compliance's fully functional real-time interactive and fully integrated cloud-based STR data management platform. The user interface is fully interactive and lightning fast and will allow City of Palm Desert's personnel to update and edit records in the database directly in real time. As an example, the Advanced Host Compliance Solution user interface will allow City of Palm Desert's personnel to: • Maintain City of Palm Desert's registration database in Host Compliance's system for seamless cross referencing of information • Enter information on new short-term rentals that have been reported by concerned neighbors • Upload additional pictures and other evidence that needs to be associated with identified and new short-term rental properties • Add additional notes related to identified short-term rental properties • Add or change addresses, owner information, unit numbers, parcel numbers and other important information stored on the records in the database © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Figures 6 through 11 on pages 42 to 45 shows some examples of the interactive dashboards and reports that would be included with the Advanced Host Compliance Solution. Please note that we for privacy reasons have redacted all identifiable information from these screenshots. Task 8. Accurately and continuously cross-referencing STR database with the City's Permit Database Address, Parcel and Owner Name Matching Capabilities included with both the Standard and Advanced Host Compliance Solutions As soon as the addresses of new short-term residential rental properties have been identified (which will happen both at the onset of the project and continuously as new short-term residential rentals are listed on the various websites and identified by our software and personnel) we will cross-reference these addresses with the City's permit database to verify compliance and/or identify non-compliant rental units. To do this we use a combination of simple parcel number matching algorithms combined with more advanced matching techniques such as: • "Levenshtein edit distance matching": Match records based on the Levenshtein measure of dissimilarity between two text strings. The Levenshtein edit distance is the number of operations (deletions, insertions, or replacement) of a single characters that are required to transform string-1 into string-2, • "Soundex matching": Match records using a phonetic algorithm for indexing names and addresses by sound, as pronounced in English and Spanish. The goal is for homophones to be encoded to the same representation so that they can be matched despite minor differences in spelling. • "GIS Informed matching": Inform records matching by overlaying GIS data i.e. distances between address points etc. In combination these advanced matching techniques produce higher match rates and more accurate matching than what can be achieved using less sophisticated methods. Pro-active Permit Compliance Monitoring Capabilities included with the Advanced Host Compliance solution In addition to the sophisticated matching features included with both of our solutions, the Advanced Host Compliance Solution also includes our sophisticated Pro-active Permit Compliance Monitoring module that provides ongoing monitoring of compliance with the City's requirements to list an active registration number on all advertisements. This feature saves hundreds of hours of manual labor and allows City of Palm Desert's personnel to always have an up-to-date list of STRs operating without displaying the proper registration number on their online advertisements. © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE If desired this module can also be deployed to identify rentals that advertise a higher occupancy limit than what it is permitted for. Task 9. Identifying TOT under-reporting Both the Standard and Advanced Host Compliance Solutions provide the ability to provide ongoing monitoring of Palm Desert's short-term rental properties for signs of rental activity. These proprietary Rental Activity Monitoring and Tax Collection Support Assistance algorithms and services can be a big help in identifying and pro-actively reaching out to hosts that fail to report (or under-report) TOT. At the most basic level the service works as follows- 1. Host Compliance generates an occupancy and rental revenue estimate for each of City of Palm Desert's short-term rental properties 2. The estimated rental revenue is converted into an estimate of the property's tax liability (factoring in that certain hosting platforms such as Airbnb have already have collected the appropriate taxes on behalf of City of Palm Desert) 3. The estimated tax liability is compared to the self-reported and remitted taxes for each property in order to identify tax under-reporting/fraud To facilitate this process and provide comprehensive and accurate data to City of Palm Desert's tax collection staff, Host Compliance provides: • Weekly monitoring of Palm Desert's short-term rental properties for signs of rental activity: o Automatic monitoring of calendar and review activity across 24/50+ STR websites o Weekly screenshots of reviews and calendars for each active listing • An always up-to-date list of short-term rental operators suspected of under-reporting taxes • Documentation of the information that serves as the foundation for the suspicion of tax under- reporting • Quarterly staff reports on the City's STR tax compliance • Custom reports and analysis to support tax audits and other STR related investigations Tax Collection Assistance features included with the Advanced Host Compliance Solution In the event, City of Palm Desert decides to subscribe to the Advanced Host Compliance Solution, this solution includes even more advanced features: Advanced Tax Fraud Detection Algorithms The Advanced Host Compliance Solution includes Host Compliance's newest and most advanced rental activity and revenue estimation algorithms. These algorithms have a far better ability to identify tax under-reporting than more basic models that simply estimate rental activity based on review counts and other "obvious" variables. While beyond the scope of this © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE document, Host Compliance's Advanced Tax Fraud Detection algorithms were developed by deploying advanced statistical models and self-learning artificial intelligence (AI) algorithms across our vast historical dataset and have been rigorously back-tested. In total, these models improve the probability of detecting tax fraud by more than 300% over traditional methods, while keeping type-1 errors ("false positives") at approximately the same levels as the ones achieved using less sophisticated models. As a result, the expected returns on City of Palm Desert's tax compliance efforts will be significantly higher if these algorithms are deployed. Task 10. and Task 11. Providing 24/7/365 STR telephone hotline services and accepting and forwarding evidence of alleged STR ordinance violations to the appropriate authorities Host Compliance has extensive experience providing short-term residential rental hotline and complaint management solutions to many other cities and counties. As a result, Host Compliance would allow Palm Desert to quickly upgrade its existing call center solution to a proven and cost-effective code enforcement hotline and online reporting solution. Specifically, Host Compliance's automatic web reporting portal and semi-automated short-term residential rental telephone hotline technology would allow the City to provide 24/7/365 service while minimizing the need for additional on-the-ground code enforcement resources. The core of Host Compliance's hotline solution is a sophisticated online reporting and call center platform that allows neighbors to easily report noise, parking, trash and other short-term residential rental related issues 24/7/365 and provide backup evidence to help the City hold the reponsible party accountable. In addition to collecting this evidence, Host Compliance also relay the appropriate content of the calls or follow-up actions to the appropriate parties (i.e. the STR owner, STR manager, Code Compliance Officer, message phone, and or the Police) within ten minutes of receipt of the call. As shown on the call flow diagram shown on Figure 12 on page 46, our solution contains several innovative features worth describing in more detail: 1. Automatic Evidence Collection: Host Compliance's systems provides allows the City of Palm Desert to automatically request evidence of the alleged code violation directly from the complainant via text message or email. This evidence can take the form of images, videos, audio recordings or any other electronic evidence than can help substantiate the complaint. The evidence is requested either via text message or email, and the provided evidence is uploaded straight into our online system in real time. Requesting this evidence directly from the complainant immediately after they submit their complaint has many benefits: a. It greatly improves City of Palm Desert's ability to prove ordinance violations b. It makes is easier to differentiate between real and frivolous complaints c. It can eliminate the need to dispatch code enforcement officers and thereby dramatically reduce the cost of obtaining the evidence © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE 2. Automatic Outbound Calls to the Owners/Managers of Problem Properties: Host Compliance's system automatically cross references complaints with City of Palm Desert's database of registered short-term rentals to: • Automatically call the owner or designated contact person for the short-term rental property that is causing problems within minutes of receiving the complaint • Easily identify serial offenders of Palm Desert's noise/parking/traffic and other ordinances and use this data to initiate further actions against these "bad actors" 3. Automatic Collection of Data on Complaint Outcomes: Host Compliance's system incorporated the ability to automatically call back complainants after a designated amount of time to: a. Collect data on the outcome of the complaint and the property's owner's responsiveness b. Allow the complainant to easily escalate the complaint to code enforcement or the police department in the event the issue has not been resolved within the designated time-frame Requesting this data automatically and directly from the complainant within a certain time frame of him or her submitting the initial complaint has many benefits: a. It greatly improves City of Palm Desert's ability to be prioritize complaints and only devote costly on-the-ground personnel where appropriate and necessary b. It makes is easier to document serious code violations and differentiate these from less severe problems c. It makes it easy to identify responsive and non-responsive property owners and managers and initiate further actions against those that do not respond to complaints and issues in a timely manner d. It can eliminate the need to dispatch code enforcement officers and thereby dramatically reduce the cost of obtaining the evidence 4. Automatic Call Recordings: Host Compliance's system records all calls and saves the recordings in the cloud for instant playback and future retrieval. Having real-time access to all call recordings makes it easy for code enforcement staff to quickly get up to speed on the situation and if necessary initiate immediate on-the ground follow-up actions 5. 24/7 Real-time Dashboard: All calls to the hotline are automatically logged in our online dashboard which is available 24/7/365 from both desktop and mobile devices. The dashboard includes all pertinent information including: a. Time and date of the call b. Complaint type c. Address of the property that the complaint pertains to d. Whether the particular address is associated with a registered short-term rental property © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE e. Complainant's contact information (if given) f. Any evidence submitted by the complainant g. A link to a recording of the call 6. Real-time Email and Text Message Notifications: If desired, our system can provide immediate email or text message notifications to the designated personnel whenever a new complaint is received. Figure 13 on page 47 shows an example. In addition to the many features outlined above, the Host Compliance solution also provides the ability to easily run custom reports to shed light complaint patters, geographical hotspots and other relevant data points that can help optimize City of Palm Desert's enforcement efforts and staffing decisions. The data will be updated in close to real-time and the information can be easily downloaded into csv/excel format Task 12. Providing city personnel 34/7/365 online access to the City's STIR related data services As described in the section titled "Task 7. Providing an easy to use interface for STR data" on page 21, both of our proposed solutions come with complementary online dashboards, reporting and data management capabilities. All of these dashboards, reports and data management features are available in real time and accessible via a password protected website 24/7/365. Implementation, Training and Support Included with both of Host Compliance's proposed solutions comes an unlimited amount of free account management, training and implementation support provided via in -person meetings, video conferences or phone. In addition, both of our solutions come with unlimited free email and phone support. The nature of the support spans everything from "how do I do x" to "can you help me provide reports, analysis etc. to showy". Specialized Regulatory and Enforcement Related Consulting Services In addition to these free implementation and support related services, Host Compliance is also more than happy to share its unique and comprehensive perspective on the best practices for regulating and enforcing short-term residential rental regulations whenever needed. In fact, we believe that continuous improvement and evaluation is so important to the long-term success of Palm Desert's short-term rental enforcement program that we as part of our proposed solution include a number of complimentary consulting hours for the City to use at its discretion. Specifically, as part of our Standard Host Compliance Solution we have included 5 hours of free consulting hours per year, whereas the Advanced Host Compliance Solution includes 10 hours of complimentary consulting per year. © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE The consulting services will be provided by Host Compliance's team of nationally recognized experts including Ulrik Binzer and Jeffrey Goodman (profiled previously in this proposal). While it is up to the City to decide how those complementary consulting hours could/should be used, below are some examples of possible deliverables that the city could request from us on an annual basis as part of a potential partnership: • Quantitative report on the scale and scope of the short-term residential rental activity in Palm Desert's jurisdiction • Background memo to the key decision makers on the context and regulatory best practices for addressing various short-term residential rental related pain points and issues • Participate in on-site meetings • Participation in (or facilitation of) public hearing(s) to continue to evaluate Palm Desert key issues and regulatory objectives as it relates to short-term residential rentals • Survey of key stake-holders to prioritize future regulatory objectives • Enforcement focused planning work-session with Palm Desert key stakeholders and staff • Draft compliance monitoring and enforcement plan for staff and legal counsel to refine and adopt The exact timeline for consulting deliverables will depend on the specific scope of work and requested deliverables. That said, qualitative reports can generally be turned around in 2-3 weeks, whereas qualitative reports may require slightly more lead time as they may require requesting data from other municipalities via Freedom of Information requests or similar avenues. 3. Acceptance of Professional Services Agreement Host Compliance hereby confirms that we accept the terms of the City's standard Professional Services Agreement as provided as an attachment to this RFP. 4. Compliance Host Compliance hereby attests that it is compliance with, and shall comply with all applicable federal and state laws, including labor laws. 5. Litigation © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Host Compliance hereby attests that it is has not been subject to either past, current or pending litigation. 6. References Please see Section 1.C. which includes 10 references. 7. Fees Please see the proposed rate scheduled provided separately. 8. Proposed Timeline Subject to the City's input and approval, our proposed project schedule and implementation timeline would be as follows. Given that we have done this more than 100 times before, we have a high level of confidence in our ability to meet these proposed deadlines. • Within 1 week of being awarded the contract we would schedule a project kick-off meeting with City of Palm Desert's relevant staff to determine the quickest and most efficient way to get access to the County's property assessment roll and the city's permit database. In this meeting we would also discuss the next steps related to the hotline including the go live date for the hotline and online complaint reporting forms • Within 2 weeks of being awarded the contract we would activate the hotline service number and online compliant forms provide the appropriate staff with access to and training on the associated online dashboards • Within 3 weeks of receipt of City of Palm Desert's property and registration databases, Host Compliance would deliver the first batch of identified addresses to the City. We would expect this would include the addresses of no less than 50% of the identifiable short-term rentals operating in City of Palm Desert's jurisdiction • Within 5 weeks of receipt of City of Palm Desert's property and registration databases we would deliver the remaining portion of the addresses i.e. 100% of the identifiable short-term rentals operating in the City's jurisdiction © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE APPENDIX 1 - OPTIONAL ADDITIONAL FEATURES OUTSIDE OF THE PROPOSED SCOPE OF WORK As mentioned in the executive summary, Host Compliance provides additional short-term residential rental related compliance and enforcement services that may be relevant to the City now or in the future. While we understand that these services are not currently part of the scope of work, we believe that it is worth describing them here in case the City is interested in making sure that the chosen vendor for this RFPP can provide an integrated solution that is as comprehensive and as "future proof' as possible. Optional Service A - Online / Mobile Enabled Permitting The first step in any compliance program related to short-term vacation rentals involves getting the property owners and managers to register their properties. Given the tech-savvy nature of short-term rental hosts, and the large volume of registrations, the best practice is to allow citizens to apply, pay, and track the status of their applications online. Equally important, the online forms need to be mobile friendly, as —50% of short-term rental hosts prefer to handle their business from their mobile devices. Host Compliance's online short-term rental registration forms are fully customizable and would be configured to meet Palm Desert's specific registration, documentation and application requirements. All submitted information and documents would be made available instantly in our online application interface for easy verification and approval. The exact workflow would depend on the registration requirements and the review could potentially be partially automated by cross-referencing application data with other databases. Depending on the degree of automation and the nature of the requirements that would need to be verified, the application reviews could be done by City personnel or by Host Compliance's remote analyst team. In addition, to collecting the appropriate information and documents, Host Compliance's mobile- enabled online forms would let applicants pay their registration fees online via debit, credit card or a-check (ACH) while depositing all funds directly into the City's bank account via daily direct deposits. Figures 14 and 15 on page 48 shows examples of the user interfaces users and city personnel will see. Optional Service B - Automated permit and TOT compliance related notification/mailing services In addition to simply cross-referencing our always up-to-date short-term rental database with City of Palm Desert's permit and TOT database and leaving it to the City to take appropriate action, Host Compliance can help automate these administrative tasks using our Compliance Monitoring module. Specifically, if desired, Host Compliance's Compliance Monitoring module © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE can put all of the City's compliance outreach activities on auto-pilot. The exact specifics of the mailing/notification criteria can be adopted to accommodate City of Palm Desert's exact needs and communication preferences, but as a rule, such a plan will include the following types and sequence of highly targeted activities: • When new non-permitted short-term rental properties are first identified, we will first mail the owner an "initial warning" letter to remind them of the city's registration requirements; tax payment requirements and provide instruction on how to get into compliance. • In the event, the owner does not comply with the rules within 30 days of receiving the "initial warning" letter, we will follow-up with a more sternly worded "Notice of Violation" letter. • If an owner does not comply with the rules after receiving the 2nd letter we will refer the case to the City of Palm Desert's Code Enforcement team for follow-up. City of Palm Desert's follow-up will be greatly aided by our data, screenshots etc. which is available to City of Palm Desert's personnel through the previously described online data portal. All information is available 24/7 online on desktop and mobile devices and can be download in jpg, png, pdf, excel or other standard file formats if desired. Another use case for our Compliance Monitoring module is to notify owners/operators of properties that fail to report and remit TOT. As with our other notification services, these can be fully automated. Finally, our Compliance Monitoring module can be used to notifying owners/operators of properties that are in violation of other ordinances if such violations are recorded in our system. Please note that all form letters used by Host Compliance will be developed in close cooperation with City of Palm Desert and that the final versions will be subject to the City of Palm Desert's final approval. Letters can be fully customized to include high-resolution color screenshots, "good neighbor information", registration forms, tax collection forms and other advanced features including the ability to send First Class, Certified and/or Registered letters (Certified and Registered letters will be charged an extra fee to cover the incremental cost charged by the Unites States Postal Service). Figures 17 —22 on page 50 and 51 shows examples of such Compliance Notification Letters. As with everything else we do, Host Compliance is committed to full transparency and accountability and save each letter we send on our client's behalf in our database. As a result, all letters we send can be accessed in pdf format in full resolution and each letter is timestamped to show when it was sent and delivered. Given Host Compliance's expertise, we will be able to initiate the above outreach programs within a few weeks of contract execution. That said, this timeline is contingent of Host © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Compliance receiving timely feedback, cooperation and approval from City Staff as to the wording of the letters. Optional Service C - TOT Collection Forms Making it easy to report and remit TOT is one of the easiest and most effective ways to maximize tax compliance among short-term rental property owners and managers. By reducing the friction in the tax reporting and remittance process, the City vastly improves the probability of being paid on time, while reducing the need for time-intensive and costly paperwork and cross-system data and payment reconciliation. The Standard and Advanced Host Compliance Solutions can both support optional integrated mobile-enabled online forms that include credit/debit card and electronic check payment functionality as well as the ability to dynamically calculate fees, taxes, back-taxes, interest and late-payment penalties in real-time. In addition, our forms allow the City to easily collect electronic signatures and backup documents. All reports and payments are instantly captured in our online system for easy access by City personnel. Figures 23 and 24 show examples of what the user interfaces would look like to the hosts and city personnel using this part of the Host Compliance solution. All payments are processed through a 3rd party payment processor called Stripe and Host Compliance never touches or store any sensitive card information. Stripe has been audited by a PCI-certified auditor and is certified to PCI Service Provider Level 1. This is the most stringent level of certification available in the payments industry. All card numbers captured by Stripe are encrypted on disk with AES-256. Decryption keys are stored on separate machines. None of Stripe's internal servers and daemons can obtain plaintext card numbers; instead, they can just request that cards be sent to a service provider on a static whitelist. Stripe's infrastructure for storing, decrypting, and transmitting card numbers runs in separate hosting infrastructure, and doesn't share any credentials with Stripe's primary services (API, website, etc.). Optional Service D - TOT Audit Support Services If of interest, Host Compliance has an optional integrated tax audit module that makes it easy for short-term rental hosts suspected of under-reporting TOT to provide backup for their self- reported rental revenues. By reducing the friction in the tax audit process, City of Palm Desert vastly improves its ability to verify that the self-reported TOT and fees are a true reflection of the actual rental revenues generated by each STR property owner, while reducing the need for time-intensive back-office work. Figure 25 on page 52 shows an example of what such a tax audit form could look like. © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement v HOST COMPLIANCE APPENDIX 2 - HOST COMPLIANCE SECURITY OVERVIEW Protecting your data and our services is our top priority. The availability, confidentiality, and integrity of your data is of utmost importance and we use multiple safeguards to protect this information. Our data centers Host Compliance hosts our applications and your data with Amazon Web Services (AWS) which provides a highly reliable, scalable, low-cost infrastructure platform in the cloud that powers hundreds of thousands of organizations in 190 countries including government institutions such as the U.S. Department of State, the U.S. Department of Energy, the Center for Disease Control, the State of Washington and Multnomah County, OR. AWS is a secure, durable technology platform with industry-recognized certifications and audits: PCI DSS Level 1, ISO 27001, FISMA Moderate, FedRAMP, HIPAA, and SOC 1 (formerly referred to as SAS 70 and/or SSAE 16) and SOC 2 audit reports. All the datacenters we use are have multiple layers of operational and physical security to ensure the integrity and safety of our data. Here are some resources from AWS with additional context: o Overview of AWS Cloud Security o AWS Security Processes o AWS Security Bloq o AWS Compliance Physical security AWS has state of the art data centers where physical access is strictly controlled by professional security staff using a combination of video surveillance, intrusion detection systems, multiple sets of two-factor authentication and other electronic means. Only authorized personnel with legitimate business needs are granted access to the data centers. All physical access to data centers by AWS employees is logged and audited routinely and all visitors require ID and are escorted by authorized staff. AWS maintains and continues to enhance their SOC reports, certifications, including SOC, PC[, ISO and many more. Additional details are maintained on the AWS Compliance section of their website. © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Environmental security AWS' data centers have automatic fire detection and suppression equipment. They have fully redundant electrical power systems that are maintainable without impact to operations 24x7 and have UPS and back-up generators in case of electrical failure for critical and essential loads. Climate and temperature are precisely controlled by personnel and systems to ensure optimal performance of servers and other hardware. All systems and equipment are monitored and receive preventative maintenance to maintain continued operability of equipment. Business continuity management AWS' infrastructure has a high level of availability and provides customers the features to deploy a resilient IT architecture. AWS has designed its systems to tolerate system or hardware failures with minimal customer impact. Data center Business Continuity Management at AWS is under the direction of the Amazon Infrastructure Group. Core applications are deployed in an N+1 configuration, so that in the event of a data center failure, there is sufficient capacity to enable traffic to be load balanced to the remaining sites. Host Compliance deploys into multiple Availability Zones to ensure that Host Compliance can continue to function in the loss of an Amazon data center. Secure transmission and sessions Connection to the Host Compliance products and services environment is through secure socket layer/transport layer security (SSL/TLS), using strong encryption and authentication (TLS 1.2 with SHA256 certificate), to ensure that your users have a secure connection from their browsers to our services. Sessions are terminated after 30 minutes of inactivity, or implicitly by a user sign out event. Access controls User IDs and passwords are both set by the user. One-time passwords are never used. Password strength and a limitation on login attempts are configurable. Passwords are encrypted. Within the application, both group and role-based access rights can be assigned, allowing full control over what a user can see and use. Our applications also maintain detailed event logs, capturing items such as authentication, failed login attempts, asset creation, deletion, and modification. © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Servers do not use passwords and require 2048-bit RSA keys to provide direct access to the box. All keys are unique to individual administrators or service accounts and are not shared. Network level firewalls prevent unauthorized traffic from reaching servers in the data center. Backups All data is backed up using daily and weekly images. Master/slave replication additionally ensures that database backups are hot-swappable. Backups and replications are not transported off site but are stored in different Amazon data centers from the Host Compliance application to ensure that they can be recovered in case of loss of the primary data center. Code testing and assessments Host Compliance tests all code for security vulnerabilities before release, and regularly scans our network and systems for vulnerabilities. Third-party vulnerability testing has also been performed by Aspect Security. o Application vulnerability threat assessments o Network vulnerability threat assessments o Selected penetration testing and code review o Security control framework review and testing Payment Security All payments received by Host Compliance are processed through a 3rd party payment processor named Stripe and Host Compliance NEVER touches or store any sensitive card information. Stripe currently processes payments for more than 100,000 other companies and organizations including Amazon, Target and UNICEF. Stripe currently employs 900 people and is headquartered in San Francisco. The company has received around $450 million in funding to date and its investors include Sequoia Capital, Visa, American Express, Peter Thiel, and Elon Musk. Stripe has been audited by a PCI-certified auditor and is certified to PCI Service Provider Level 1. This is the most stringent level of certification available in the payments industry. All card numbers captured by Stripe are encrypted on disk with AES-256. Decryption keys are stored on separate machines. None of Stripe's internal servers and daemons can obtain plaintext card numbers; instead, they can just request that cards be sent to a service provider on a static whitelist. Stripe's infrastructure for storing, decrypting, and transmitting card numbers runs in separate hosting infrastructure, and doesn't share any credentials with Stripe's primary services (API, website, etc.). © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Security monitoring To identify and manage threats, Host Compliance's and Stripes' teams constantly monitors notifications from various sources and alerts from internal systems. © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE APPENDIX 3 - LIST OF FIGURES Figure 1: Map of Palm Desert's short-term rental listings as of February 28, 2018 ...................39 Figure 2: Palm Desert Short-term Rental Market Turnover Analysis.........................................39 Figure 3: Full Size Screenshot Examples (example to the right enlarged to show details)........40 Figure 4: Standard Host Compliance Address Identification Dashboard Example ....................41 Figure 5: Standard Host Compliance Address Identification Report Example...........................42 Figure 6: Advanced Address Identification Dashboard Example...............................................43 Figure 7: Advanced Host Compliance Address Report Example ..............................................44 Figure 8: Advanced Host Compliance Address Verification Page Example ..............................45 Figure 9: Advanced Host Compliance Guided Edit User Interface Example .............................46 Figure 10: Advanced Host Compliance Solution Screenshots Example....................................46 Figure 11: Advanced Host Compliance Edit Record Example ..................................................46 Figure 12: STR Hotline Call Flow Diagram ...............................................................................47 Figure 13: New STR Hotline Call Email Notification Example ...................................................48 Figure 14: Mobile-enabled online registration form example.....................................................49 Figure 15: Registration data - City staff user interface example................................................49 Figure 17: Example of the Letter Management Dashboard.......................................................50 Figure 17: Compliance Monitoring letter example (page 1 of 3). ...............................................51 Figure 18: Compliance Monitoring letter example — (page 2 of 3). ............................................51 Figure 19: Compliance Monitoring letter example (page 3 of 3). ...............................................51 Figure 20: Tax Collection Letter Example (page 1 of 3) ............................................................52 Figure 21: Tax Collection Letter Example (page 2 of 3) ............................................................52 Figure 22: Tax Collection Letter Example (page 3 of 3) ............................................................52 Figure 23: TOT Calculation and remittance user interface for STR Hosts.................................52 Figure 24: TOT and fee payment user interface - City personnel..............................................53 Figure 25: Host Compliance Online Tax Audit Form Example ..................................................53 © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com • City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Figure 1: Map of Palm Desert's short-term rental listings as of February 28, 2018 M• S.!.'re •Snow Vdran SMw Pdyeow.ISam .......,m .s..-[•.t - • Tripedvlsor-owned • Pncehne-owned • Other atz Cr•N • Expedla-owned OMissia+Hnls • Alrbnb Country Club a t Club Disovery Muse • Mountain Vista .. V Q • • If. of Sin coy P.J.n D D sert e Cathedral City - M Rrrwtt sip i id9e Ixswtwaw. The Club at MormngsWe � G��� • mtdj T jr •� ` •• f • She rR � • '.�••• • lb• Soutl u •�• �' �� •, ,N j_ Raun • .t . tiCouqly,Cl i • ry ;.;a • • • • • • Bermuda Ranch. • r• •: • j ! Dunes M'aaF �• � Rc•a•e Cou. -• Heritage Palms GO Club Q •{ C • es at • rs • ,/ "to R•ncho La Q •`� • D a Gdl CIW I.7n+eood Cytu!t • • La Ou nta Resets.:a,Q La Dulnta Resort O Mountain Course Rh C^'G,�t:b • The Citrus Club al v Le Guml•Rests a wt Tmdaran Gdt Club Q S,:v Rock —m Go gle .T .. Figure 2: Palm Desert Short-term Rental Market Turnover Analysis Total Listings as of February 1, 2017 2,845 Plus: New listings added since February 1, 2017 1,950 Plus: Listings reposted since February 1, 2017 311 Less: Listings that became inactive between February 1, 2017 and February 28, 2018 (1,959) Total Listings as of February 28, 2018 3,147 Total #of Listings Active between February 1, 2017 and February 28, 2018 5,106 % of currently active listings that are new or reposted since February 1, 2017 71.8% © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Figure 3: Full Size Screenshot Examples (example to the right enlarged to show details) I FLIPKEY by®trjPadvisor p- -grin- wrew a.P.m Q I MBy 30.2017 8.21am PT - Chalet-Style 3BR PaPa&#8217:s Place:Close to Donner Lake! a—..— ONever pay for you,vacation rental by wire transfer Learn nore about paying safely dill oyerylew Map Mailability Amen— Resnais Ready to book? ■ - - $108— _ ErYr e..b a.e Yei.pare C <x� Ke ' g No pea Need more information? Rrs:a���name En,al grit. 1\M le INone r�umpe� arcoavta yol,nen b brie manage. Description from the manager Babaana 3 BNbream.2 bleep. fle—i, Netwal Ieau�l aM a central beacon cmm Tge'in ow 3BR i•bill 213A Trw rrone A ® bvin9t,eametl P.P.s Pl.�'0nve t[mmeles to evplore a—Trw}ee a eagmele k. w+-.r cues,u0oul ry "v�a.lrr.d w. Domes Lake arq E mee5lo great eking aria wl000�agiMee Ewy a—io are weal Erb Beach Pan a'.Uonrer Leese wive you W Wy a gene M ie— II a—kA rent a kiyaA o.bursmtoT., lake s SaM,aeacne.Want b/!b ekaW W'am moweax�Me at WooewM'ianw�Ws..�1(iminae anre away wens b M Pe M�.lopes>SaAa Bpraga ene B�'Bow ae,use M1 mxec awes;I--—nl oieEm M aw-el NP.s Play oe nape G Real more About the manager Tumwy gate—Ramesh Response.ae TK 43e151 More popeNes _ Map CbaM-Btyle 3811 PaPaa11BT17:.Platy Clnaa W Damer t.aMel nor a RestaureM dr (♦ MUe— � w •: 0 • ter. . BtaP 0.0."ve—al reePery'leetlien. --. Da (.ontaC ee n�a�wga'Iw BeWh PON pf RnSA .tRI • E 0 + Go,gk Oita— Host Compliance LLC 735 Market St, Floor 4, San Francisco, CA 94103 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement `. HOST COMPLIANCE Figure 4: Standard Host Compliance Address Identification Dashboard Example 4 My wsl+bo.rd. 604 •�. . _..�.�. .compia T w wo um M900" STR Rental Units in or near .NONCOMRIww wbue.rpuwww Jurisdiction • uwWAO"001•LIAMMSTATUS . NOT YET oE►+TiFFM 12 STR Rental Units in or near Jurisdiction Added Last Month 98.7% STR Rental Units in or near Jurisdiction Successfully Identified Listings Funnel �• Listing types Listings/Week •ra...re+w r a w aee.ct.•n;.z.e .•e ea.,u.we..wresn•o• •m three u.n�>•..wwscoe•teas �- Land Use Compliance 0 ,p,, I.., Status • .�,;:1 •t...�.,..,' •t.e•toe•tw: •.•.•a.-tzrl •:u•vre tn;t+: •Net,et e•v.w...e Sze,1! Net Nt e.1w.•at♦0.•.;°. •"°"" """`° Minimum Nights Stay Identified STR Rental Units pro_ in Jurisdiction/Week Bedrooms/Bathrooms 00 w w w w a t � I l © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Figure 5: Standard Host Compliance Address Identification Report Example 0 - © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Figure 6: Advanced Address Identification Dashboard Example o_. O 1406 N� . •w•w...,,� _ STR Rental Units in or near • NON-COMPLIANT lend use trequkdws Jurisdiction • yr • UNKNOWN COMPLIANCE STATUS • L M . NOT VET IDENTIFIED 48 •• • % STR Rental Units in or near �• V • •• ~• Jurisdiction Added Last Month � • 10 • 'i 1• • • t• • • •• • F STR Rental Units in or near + Jurisdiction Successfully - % :% Identified 0 i t'•' • • 1_ • • • • • S ' • I'•f • +�, ��••• • } ♦ ''�• ram•• • ••°• �R •fir t ;�•! • + 1� �I •� +s ~ i • Listings Funnel .� .•+ i �s+ . t i�•t di ~ Co ale •• , �'!i ,,. Listing types Listings/Week _STR L•t'v'n'V••I[[IK •TOUR�rtmps�n o,nw'unF6K9on U.6.37 -TM.ustmps In M•b[Lron 5TR UFtmpi m w nMr A•••Ktgn(2 633) -STR R•nt►(Nits m)unsd n •STR Re v Units m a—1 JL1.d,,tmn[1.W: •i6entOW STR R•nbi UnKs In 3unsb (i.2'.". Land Use Compliance P •5,n"F•nwy(Tt110; •Pyt•NRnM(3%; Status •MYR F—y li2 ; Ent, NO r(•2T; •Unknown(M] •Ur•n•wn[6.6; 0 •ComplMtR STR(1.f16T` •Co ww t LTR(6) •Not y t 6etwmr STP(:65 Not yt dirt— LTV Non-c wmnt STR O1 • �"`°°•" LTRW, Minimum Nights Stay Identified STR Rental Units "rt^ps in Jurisdiction/Week •i6.nnneR.emi�ur+et Bedrooms/Bathrooms 0 © Host Compliance LLC 735 Market St, Floor 4, San Francisco, CA 94103 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement V `; HOST COMPLIANCE Figure 7: Advanced Host Compliance Address Report Example > w = C ru nrr M..w«..ew.e •I .. w".-STR D.liin.. .. u•i.e i..i .r 1 AKn . © Host Compliance LLC 735 Market St, Floor 4, San Francisco, CA 94103 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Figure 8: Advanced Host Compliance Address Verification Page Example Oceanside,CA.United States rrr• , © Host Compliance LLC 735 Market St, Floor 4, San Francisco, CA 94103 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Figure 9: Advanced Host Compliance Guided Edit User Interface Example Please select/verify the correct coordinates for this address. r rk © E.w Figure 10: Advanced Host Compliance Solution Screenshots Example r Figure 11: Advanced Host Compliance Edit Record Example Please correct/verify the tax record. Newark CA 94560 Us © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert — Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Figure 12: STR Hotline Call Flow Diagram Short-term Rental Hotline Call Flow I`you are reporting an issue Cat specific short-term rental ive agent records comes property please press 1.if you Request phone address name and are calling v:ith a general number en issue details question on short-term rentals. please press 2 To report an issue related to a specific property you will need to know its full address.If you do not know the address of the property you are calling about Thank you Would you also be please hang up nor:and call ti.�lling to share photo video or back when you have the Request phone address.Code enforcement t number audio recordings to support may t ant to follow up with you. your report. Press 1 for yes or Please press 1 if you are OK 2 far no i' :;ith sharing your name and phone number with them Please press 2 to remain anonymous Great.we will send you a link to upload evidence after this call. Press 1 to receive this link by text or two to receive this To report an unlicensed short- link by email Caddress rds term rental.press 1 To report a and 4i nuisance such as noise. / parking or trash issues. press 2. Confirmtrequest phone number note that Inre agent needs to collect email What best describes the issue you are reporting?Press 1 to report a loud party Press 2 to file a general noise complaint. /F.�_, �__ „`_'• Press 3 to report a disturbance or trespassing situation Press 4 to report a parking related issue.Press 5 - to report a trash related issue Press 6 to report any other type of nuisance To hear this list again. Dress 9. ` OK.'Mould you like us to try to contact the person responsible for this property right away to resolve this issue?Press 1 for yes and 2 for no Would you like us to give you a call back at{callback phone in we agent records 30 minutes to see if this issue address name and has been resolved?Press 1 for issue details yes and 2 for no. © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 www.hostcompliance.com • City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Figure 13: New STIR Hotline Call Email Notification Example New Short-term Rental hotline call received regarding , Estes park,Co % Sent February 13,2017 12:46 PM v 4 t HOST COMPI-MCE You got a new Short-term Rental Hotline call! We wanted to let you know that we;ust received a new call on the Short-term Rental Hotline You'll find the details below recordingListen to call Call Details Reported Issue Details Call ID 77575 Reported Address Call Time 2017-02-13 13 41 19 Reported Issue Details Caller wants Caller Name to know more about the property she Caller's Callback received information about in the mail Property's Contact Person Called callback False Permit/Registration#None Property's Contact Person's#None ©Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Figure 14: Mobile-enabled online registration form example ,i-j Host Compilarm Permit Registration Form What is the property's parcel number? 123-478765788 You can look up your parcel number on the ta:assesso,website. Figure 15: Registration data - City staff user interface example A 0 = o - .. o © Host Compliance LLC 735 Market St, Floor 4, San Francisco, CA 94103 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE c O a Available Columns Selected Columns CANCEL SAVECHANGES Figure 16: Example of the Letter Management Dashboard • - ©Host Compliance LLC 735 Market St, Floor 4, San Francisco, CA 94103 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement � 4 ..' HOST COMPLIANCE Figure 17: Compliance Monitoring letter Figure 18: Compliance Monitoring letter example (page 1 of 3). example—(page 2 of 3). Ct�E er•gYww awr rw oim.'r w riYy nary P se ti atlre YNYIr MY� mo,pr rea wevYl��sv+b•n4wym Ynrwb — M n.n iNosp n ra awcanlw or��pour Ye . wry�.��v.�w�rrrw.m+ra u.n:...T:�u�pe�rv.r.Y a•eror. Tanoe FuE. wpYh b.h rnsrn.sro en+v w.agwr Ibis 0 tens nnrry r;v.m r o+��r NnP.rr o':IDn.w\rn u� .r Ysr.r•rnc'��.s4rw+rv9•�•b•\rI w wur rry Ye w sn ti�eves nvrp�.Mary b rw eaiMYs CwY•ae w Yen br.ru wrsr r.rrre.r•arrest s\r rNw.rr� . h arrn�a•p sYw P F e�ti•r a aN r\N.io r vb.�w dyer era w ae�m Yra�y.M�.rar.iar Vnmb�w asr YTusr inYYub.Y Ye.' r• 6mrN hrr bY9 a.•wra wq.r.v".m'�.1Oer. �'"W'r'\" •nC l�.ri M�a.n��`1N�,UNN•.9N MiN SYo\ fn�.r Sn SSDSffi � w' oohs�M/rnw rw oalws+`+rp��•i• d Figure 19: Compliance Monitoring letter example (page 3 of 3). I Aryan kut ela.l�IbllYly�Ir1M -- 1 vl\�IM\I I t\\\1!\I IYl"1•\Hl 1\\ w4•wn�G 1.�...•1 rui u n 1 I © Host Compliance LLC 735 Market St, Floor 4, San Francisco, CA 94103 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Figure 20: Tax Collection Figure 21: Tax Collection Figure 22: Tax Collection Letter Example (page 1 of 3) Letter Example (page 2 of 3) Letter Example (page 3 of 3) e e Figure 23: TOT Calculation and remittance user interface for STIR Hosts •�,24aur�C�iecoF Short-term Rental Registration and Assessment Payment Form For the following quarters,please report the gross revenue,i.e. payments received for stays for fewer than 30 consecutive nights. If you have had $0 gross revenue for a given quarter, please enter$0. Wos ue INCLUDES.Dut is not 1-1.lo,n,gdtly rents.weeky re andard cb g I—pet lees.Internet cM1ergrk,lab cM1eck-Out fees s s person lees.and resort I—Gross revenue EXCLUDES relun I.—dePosrts end any eddluonel ne included in a sp.cla' pe<kage rab,suCM1 es sk,In—Or~rft-01618—W or addltwnal W—Ce sut,'t Ic CO sales tas Calendar Quarter 3 2017 $4,000 © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 www.hostcompliance.com City of Palm Desert— Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement HOST COMPLIANCE Figure 24: TOT and fee payment user interface -City personnel 0 T - O Figure 25: Host Compliance Online Tax Audit Form Example Short-term Rental Revenue Validation Form Please report each listing advertising your short-term rental. Listing Website •n•wawA, vae Listing Webpege -t Listing Website T'yeasa:aivRev- Listing Webpage. tM © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 www.hostcompliance.com V V HOST COMPLIANCE City of Palm Desert RFP - Professional Consulting Services / Systems for Short-term Rental Monitoring & Enforcement RATE PROPOSAL Submitted by Host Compliance LLC Ulrik Binzer, CEO, - 857-928-0955 - binzer(u-),hostcompliance.com 735 Market St, Floor 4, San Francisco, CA 94103 Submission Authorized by: wi� &V-� Ulrik Binzer, President & CEO City of La Quinta — Short Term Vacation Rental Compliance Solutions HOST COMPLIANCE Fees for the Proposed Solutions and Services Since our services are delivered in the form of software-as-a-service offerings, we do charge separately for labor hours nor do we have hourly billing rates for our software algorithms. Instead Host Compliance's proposed short-term rental software and services are offered as an annual subscription service at a flat fixed rate. For the avoidance of doubt the proposed annual prices also includes the cost of implementing the software and service as well as all training, support, maintenance, telephone and software licensing fees. Please see the next page for a detailed pricing schedule by task. © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 1 www.hostcompliance.com City of La Quinta — Short Term Vacation Rental Compliance Solutions .—. 4 1�:, HOST COMPLIANCE STANDARD HOST ADVANCED HOST COMPLIANCE SOLUTION COMPLIANCE SOLUTION Task 1. Monitoring and analyzing Palm Desert's STR $56,646/yr $70,807/yr Market Task 2. Included for free with the Included for free with the Creating and maintaining a database of both services listed under Task 1. services listed under Task 1. permitted and non-permitted STR units Task 3. Included for free with the Included for free with the Aggregating and de-duplicating STR listings from services listed under Task 1. services listed under Task 1. various STR websites Task 4. Included for free with the Included for free with the Quickly and accurately identifying the exact services listed under Task 1. services listed under Task 1. physical address of the City's STRs Task S. Included for free with the Included for free with the Allowing for the differentiation of monitoring and services listed under Task 1. services listed under Task 1. enforcement activities Task 6. Included for free with the Included for free with the Capturing full-resolution screenshots of all active services listed under Task 1. services listed under Task 1. STR Listings Task 7. Included for free with the Included for free with the Providing an easy to use interface for STR data services listed under Task 1. services listed under Task 1. Task B. Included for free with the Included for free with the Accurately and continuously cross-referencing services listed under Task 1. services listed under Task 1. STR database with the City's Permit Database Task 9. Identifying TOT under-reporting $18,288/yr $22,860/yr Task 10.and Task 11. Providing 24/7/365 STR telephone hotline services and accepting and forwarding evidence of alleged $16,459/yr $20,574/yr STR ordinance violations to the appropriate authorities Task 12. Included for free with the Included for free with the Providing city personnel 34/7/365 online access to services listed under Task services listed under Task the City's STR related data services 10. and 11. 10. and 11. Implementation, Training and Support Included for free with the Included for free with the services above services above © Host Compliance LLC 1 735 Market St, Floor 4, San Francisco, CA 94103 www.hostcompliance.com LTAS Technologies Inc. EXECUTIVE SUMMARY February 27, 2018 Kevin Swartz, Associate Planner Attn: Professional Consulting Services / Systems for Short-Term Rental Monitoring & Enforcement City of Palm Desert 73510 Fred Waring Drive Palm Desert, California 92260 Dear Mr. Swartz, LTAS Technologies Inc. is pleased to respond to Professional Consulting Services/Systems for Short- Term Rental Monitoring & Enforcement tendered by the City of Palm Desert. I am the CEO of LTAS Technologies Inc. and founded the company in 2011. The Harmari Taxcrawler Short Term Rental (STR) Compliance service, combined with the enterprise power of the Oracle Service Cloud. Working with municipalities on STRs is familiar to LTAS. LTAS is under a 3-year contract to provide the Harmari STR identification, hotline, monitoring and phone/mail outreach services for the City of La Quinta, which currently has about 3400 active short term rental listings (currently about 1450 permitted properties). Harmari is also under contract for the Town of Breckenridge, Colorado to identify unlicensed STRs which already has 3688 permitted STRs. Similarly, LTAS has worked the past 2 years on Short Term Rental (STR) identification for Pennsylvania Department of Revenue, and South Dakota Department of Revenue, and Allegheny County, Pennsylvania. Altogether, LTAS has successfully found thousands of unregistered STRs, each of which is described in the References. Harmari also provides an integrated solution with the Oracle Service Cloud (OSvC). OSvC is a modern, robust, communications architecture that provides the central hub for interactions with customers across all channels (voice, web, email, mobile, smart devices, social, chat, etc.). This product has been used by companies in every market segment to deliver exceptional citizen experiences and has received top honors from independent observers including Gartner, Jupiter Research, Nucleus, and numerous other leading publications. We look forward to discussing the project in further detail with you. Sincerely, Allen Atamer CEO and Principal Engineer Powered e HK LTAS Technologies Inc. - Page 2 • Harmari by LTAS LTAS Technologies Inc. Contents Organization,Credentials and Experience........................................................................................................................................3 CompanyProfile...........................................................................................................................................................................3 PrimaryContacts and Credentials.................................................................................................................................................3 Experience....................................................................................................................................................................................5 UNDERSTANDING OF SCOPE OF WORK/PROJECT.............................................................................................................................6 Identify All STR Properties(Scope#1,#2).....................................................................................................................................6 STRsand Zoning(Scope#5)..........................................................................................................................................................6 De-duplication(Scope#3).............................................................................................................................................................7 Identify Owner Contact and Detailed Lists(Scope#4)..................................................................................................................8 STR NON-COMPLIANCE(Scope#2,#5,#8,#9).............................................................................................................................9 RevenueEstimation(Scope#9)..................................................................................................................................................10 Web Interface and Archive(Scope#6,#7,#12)..........................................................................................................................11 Reporting and Analytics for TOT Audit and Enforcement(Scope#7,#9)...................................................................................12 Code Compliance,and Violation Enforcement Assistance(Scope#5)........................................................................................13 HarmariReport(Scope#2,#4,#7,#8,#9)..................................................................................................................................14 Warranty of Data Accuracy and Quality(Scope#4)....................................................................................................................18 24/7/365 Tipline(Scope#10,#11)..............................................................................................................................................18 Featuresnot Requested in Project Scope.......................................................................................................................................22 Performoutreach.......................................................................................................................................................................22 Multi-Channel Support&Self-Service........................................................................................................................................23 CommunityOutreach and Feedback:.........................................................................................................................................25 Oracle RightNow Outreach Cloud Service enables you to provide powerful, proactive communications to improve citizen experiences, by leveraging a single customer database to provide the following key capabilities:.................25 ProfessionalServices Agreement....................................................................................................................................................28 Compliance.....................................................................................................................................................................................29 Litigation.........................................................................................................................................................................................30 References......................................................................................................................................................................................31 Timeline..........................................................................................................................................................................................33 Appendix A:Sample Harmari Taxcrawler Report............................................................................................................................34 Pavered LTAS Technologies Inc. - Page 1 ILGRI lYmrrl by LTAS LTAS Technologies Inc. ORGANIZATION, CREDENTIALS AND EXPERIENCE Company Profile LTAS Technologies was incorporated in 2011. Its flagship product was Harmari Search, which initially helped DMV enforcement agencies combat illegal car dealers on Craigslist, and also helped Police investigate stolen property being fenced online. Harmari Search is now used by 80 different law enforcement and government agencies from 8 different countries, 30 different insurance companies, and dozens of private investigators, attorneys, cybercrime and other investigative agencies. The underlying data mining engine for Harmari Search was spun off into a separate product targeting the needs of tax and revenue agencies. Harmari TaxCrawler, as its name suggests, crawls websites targeting specific business categories, specific websites, or tax types to identify high value leads to develop and discover non-registered or under-reporting taxpaying individuals and entities. Harmari TaxCrawler has been used by 6 different state and municipal revenue agencies over the past 6 years. In fact, it has a proven return on investment of 1700% for Minnesota Department of Revenue. Harmari TaxCrawler has evolved into a full product suite for Short Term Rental Compliance, including 24/7 hotline, citizen outreach features, interactive web portal and dashboard and more. LTAS employs 9 people full time and is headquartered in Toronto, Canada. Primary Contacts and Credentials The following individuals are assigned to the project from LTAS Technologies: Allen Atamer, Founder, CEO and Principal Engineer Allen did his Bachelor of Science in Aerospace Engineering at the University of Toronto and graduated from MIT with a Masters Degree in Aeronautics/Astronautics. Having spent the past 17 years working on software engineering, artificial intelligence, and text mining, he is able to apply his experience in building LTAS Technologies. He has 2 patents involving artificial intelligence and guided aircraft diagnostics. Allen founded LTAS Technologies in 2011 to make an impact on how the Internet is regulated and kept safe for everyone. The Harmari Tools that are developed by LTAS are used by hundreds of customers in state and municipal government, insurance, retail loss prevention, and law enforcement. Evidence procured by investigators from Harmari Search has proven case law in Ohio and Virginia. Allen has testified in Court as a subject matter expert for clients multiple times in the US and Canada, with each time the Court admitting into evidence investigative work performed by LTAS. Allen has made presentations at the APA National Planning Conference, California Municipal Revenue Tax Administrators, Federation of Tax Administrators, and dozens of other conferences and insurance, government and law enforcement training events over the past 7 years. Allen will act as the Industry Subject Matter Expert for this project. Johan Nusaputra, Business Operations Manager Johan graduated from St. Francis Xavier University with a Bachelors of Business Administration. Over the last 15 years he has worked in several different sectors including Government, Consumer Goods, Information Technology, and Retail. He is Lean Six Sigma Black Belt certified and is the Business Operation Manager at LTAS. He has gained significant experience working with vendor management, procurement, budgeting, and cost controls, which greatly assists the company with bid response, Powered Fm LTAS Technologies Inc. - Page 3 Harmari by LTAS LTAS Technologies Inc. customer relationships, project management and consultancy. Johan is the primary Project Manager for the rollout. Tom Lee, Software Developer Tom completed a PhD in Computer Science from the University of Toronto in 2016, specializing in computer vision and machine learning, preceded by a Bachelors of Mathematics degree with Honors from the University of Waterloo in 2009. Tom joined LTAS in July, 2015 to research and develop the Harmari Skycrawler that detects exotic and recreational vehicles where sales tax was evaded using satellite view technology. He now works on our Harmari Search engine, the archive of 1.3 billion classified ads from Craigslist, Backpage, AutoTrader, Offerup and LetGo. He will be the Internal Technical Director for our team on this project. Ron Chan, Account Manager Ron graduated from Simon Fraser University with a Bachelors of Arts. He also has an Associate of Arts Degree from Douglas College. Over the last 15 years he was worked in several different sectors including E-Commerce, Fraud Investigations, Insurance, and Retail. Ron previously worked at eBay as a Fraud Community Support Representative and at Toys R Us as a Product Safety Coordinator. Ron has gained significant experience with vendor management, procurement, budgeting, and cost controls, which greatly assists the company with bid response, customer relationships, project management, and consultancy. Ron will be the Customer Service Director for our team on this project. Powered By _ LTAS Technologies Inc. - Page 4 • ' Harman by LTAS LTAS Technologies Inc. Experience LTAS has delivered STR identification, monitoring and compliance solutions since 2015. Its first project was with Pennsylvania Department of Revenue to identify 5000+ short term rentals within Pennsylvania, which includes determining tax obligation at state, county and municipal levels. In California specifically, LTAS is working with City of La Quinta, Ventura, and County of Sonoma. Oracle Service Cloud is being utilized by multiple state and federal revenue and tax collection departments to improve citizen service and citizen interaction for millions, while also creating efficiencies and cost savings for thousands of internal staff members. Some of the results that have been realized from using Oracle Service Cloud: • Decreased customer hold times via improved self-service and decreased call- processing-cycle times. • Ensured that the answers to citizen's questions are consistent, regardless of whether a taxpayer speaks to a staff member on the phone or gets the information from the web. • Produced reports flagging aspects of the tax code that are giving the general public trouble, enabling municipalities to take corrective action, such as clarifying language in its documentation—ultimately promoting taxpayer compliance, decreasing taxpayer frustration, and saving municipalities time and money as it does not have to address as many errors and corrections. Oracle's presence in thousands of Public Sector agencies around the globe, serving hundreds of millions of citizens, provides the expertise to offer solutions purpose-built for government, spanning the complete lifecycle of assistance. Oracle Service Cloud empowers government agencies in transforming their business —from outreach, screening and self-service, through intake and eligibility, case management, and assessment and planning. Oracle has the breadth of experience, security, and global presence to be a trusted partner in your digital transformation journey. Oracle works with 38 of 50 U.S. states, 35 of the 50 largest cities in the country, 11 of the 15 largest U.S. counties, 100+ Federal Government organizations and 15 of 15 Federal Cabinet level Agencies. Oracle has established customer partnerships with over 800 customers throughout the US including City of Sacramento, San Jose, and San Francisco within California. PoweredBy FM LTAS Technologies Inc. - Page 5 • X_ NK HarmaH by LTAS LTAS Technologies Inc. UNDERSTANDING OF SCOPE OF WORK/PROJECT Identify All STR Properties (Scope#1, #2) Using a shapefile of Palm Desert's boundaries, Harmari generated an inventory of unique, organic, non-aggregator, non-affiliate STRs in the table, and heatmap in Figure 2. Most STR websites are either aggregators which recycle the same inventory, drop-hosts which copy and markup existing listings, or do not have significant inventory to be worth investigating. Examples of these affiliates and aggregators are: HolidayLettings.com, HouseTrip.com, Niumba.com, VRBO.com, Vacation Renta Is.com, Travelmob.com, OwnerDirect.co.uk, Abritel.fr, HomeAway.de, Homelidays.com. Organic inventory does exist on Craigslist, and it's a Website Listings preferred online marketing for more senior STR HomeAway 1841 operators. Although Craigslist does have the reputation for apartment-scams, the actual AirBnB 882 percentage of fraudulent listings is relatively low. FliplKey 826 Our data going back the past 2 years contain 336 unique phone numbers, street addresses, or Craigslist 336 secondary websites not found on the other STR PerfectPlaces 38 websites. Rentalo 26 TOTAL 3949 STRs and Zoning (Scope #5) The future banned regions R1, R2 for Palm Desert are outlined below in the shapefile. According to the latitude and longitude information obtained from STR websites, at this time an estimated 487 STR listings are in the R1 and R2 regions which are going to be banned on January 1, 2020. Below are your permit records and our findings regarding STR listings and where they may reside in the 4 regions specified. Zoning Total Total STR STRs as % of Total STR STR Listings as Designation Residential Permits Residential Listings % of Residential Units Units P.R. (Planned 24,010 840 3.5% 2469 10.3% Residential R-1 (Single- 3,977 212 5.3% 398 10.0% Family Residential R-2 (Mixed 1,893 64 3.4% 89 4.7% Residential R-3 (Residential 1,667 46 2.7% 48 2.9% Multiple Family) Non-Residential ? ? ? 545 N/A Powered B LTAS Technologies Inc. - Page 6 • Harman by LTAS LTAS Technologies Inc. sri 'c'- r,' 11 �. ;��• Ax Vi Jti 1 IF F\ { c t `I Figure 1:R1 and R2 zones within Palm Desert Property Heatmap-PalmDesert-2018/02/16 v P ino 1 I de �Z' r/� • flermuda � �i1 Nancho Ounvv ep Wage • y�•�.. \ e' +�( Indian Palms Country 0 Club&Resort Juratlican bovidariss Yr SnW canoentraan d Gras — A . �Hph CorKentraGon of paperas G� 7 La r Inta g e..-. 7 �''h 1� � Figure 2:Heat map for City of Palm Desert De-duplication (Scope#3) Harmari shall employ its proprietary matching technology to identify duplicate listings in Palm Desert. Many duplicates are identified via repeating of Business License number, STIR permit numbers, or Photos. A sample of that de-duplication effort is shown in Figure 3. Powered By LTAS Technologies Inc. - Page 7 • Harman by LTAS LTAS Technologies Inc. Imagc Gallen for N acation Rental. 11 Ir Figure 3: Duplicate STR Listing Review screen The reports now need verification by our trained staff who categorize them the following way: 1. Rent out the exact same house/condo 2. Rent out different bedrooms in the same house/condo 3. Rent out different condo/houses In practice, only about 10% of properties are true duplicates (scenario 1 above). The same house or condo can be subdivided as 1-bedroom units, or priced differently at 1-night/3-night minimums, or priced for 1-guest/2-guest minimums (scenario 2). This could be considered duplicate because it is the same permit per City ordinance. The odd case of false positive (scenario 3) is also detected by software but again it is all filtered out before presenting to the customer. Therefore, de-duplication of listings is important to verify that the same permit is being used for multiple units for rent, and also to accurately assess estimated sales and taxes owing by summing reviews on each STR website. The Duplicate record will be marked with Status = 10, and the grouping of Original/Duplicate(s)are found in the separate column. Identify Owner Contact and Detailed Lists (Scope#4) Harmari Taxcrawler executes STR listing data collection 4 times per week, once in each of the four time intervals: Weekday, Weeknight, Weekend-day, and Weekend-night. This strategy prevents any"fly-by- night" STR listing which only appears outside of weekday work hours. Harmari Taxcrawler shall deliver reports once per week during the course of the project. The STR listing may randomly scatter the latitude/longitude map coordinates by up to 0.3 miles from its actual location "to protect the privacy of the host." The address must be exact to avoid a Return-To-Sender, or a misunderstanding in mailing a tax assessment to the wrong taxpayer. Harmari Taxcrawler will utilize as many technologies and resources as it can to establish the identity of the host. The proprietary toolbox includes • Matching up host information on social media • Using public records to search phone number, business name, person name, property address • Use mapping and County Property data to identify the property put for rent and homeowner For example, Figure 4 shows a house listed on AirBnB that was matched on Google Street View picture. But Harmari Taxcrawler doesn't stop with just this evidence collection. It also goes into the County parcel records to verify that parcel and owner line up with the Street View listing. Until we have validated 2 data points that"triangulate"to each other, we do not report a hit. Powered By HK LTAS Technologies Inc. - Page 8 KII Harman by LTAS LTAS Technologies Inc. art filled mansion in east bay so�.. o.... 'O ....r.u,. K . ii■ii\iriii - Furthermore, we have developed proprietary Image Recognition algorithms originally intended for fraud and criminal activity investigations adapted to the STR program. The software efficiently matches images on social media websites reducing the manual effort to simplify verification of the algorithm's findings. All data collected and presented in Harmari Taxcrawler is public record and methods of collection are 100% court defensible. However, in some circumstances identification of the host is not possible. Please refer to the Warranty section for Identifiability and Accuracy guarantees in the Harmari service level agreement. In addition to Harmari's data collection capabilities, Oracle Service Cloud provides real-time operational reporting for advanced trend analysis and deep managerial insight. STR NON-COMPLIANCE (Scope #2, #5, #8, #9) The Harmari Taxcrawler sample report of all STRs as shown in Appendix A, can be filtered in Excel to show only non-compliant STR operators. Listings with status 8 are owner/operators, and status 6 and 7 are property management companies. The non-compliance effort generally focusses on owner/operators due to owner/operators not being aware of all the rules and regulations around operating a STR legally and the rigor to follow them. Since only 1228 STR operators are filing TOT in the City, then most of those identified will be non-registered as opposed to having an expired permit and/or non-filers. Some clients have asked that Harmari also indicate the zoning of the address within the Taxcrawler report to assist City planners and code compliance staff to ensure proper zoning and permitting. This is all possible once the City completes the regulatory framework. By using the Owners worksheet of the Taxcrawler report, City staff can easily generate outreach letters for owner/operators. By using the Properties worksheet of the Taxcrawler report, City staff can easily generate outreach letters for Property Management companies. Figure 5 is a Tax Collection Workflow, which includes a cross-check of all the STR data sources, against the business license and TOT filers/permit database and produces a report. The cross-check output has 5 possible results: PASS, FAIL, MISMATCH, EXPIRED and UNIDENTIFIED. • FAIL is reported when the property address or the owner/operator name, address or phone number is not found anywhere in the business license or TOT filers/permit database. • MISMATCH is reported when the STR property address matches but something else doesn't match, either: Powered NK LTAS Technologies Inc. - Page 9 KWi VWV141111 1K Ha .ri by LTAS LTAS Technologies Inc. o the owner/operator's name, address or phone number does not match the record in either the business license or the TOT filers/permit database. o the TOT filers/Permit is found, but the business license is not found (or vice versa) • PASS is reported when the property address, owner/operator name, address and phone number correspond to an active TOT filer/Permit and business license and they are consistent with in the Permit. • EXPIRED means a Permit for the property was found, but it has expired and needs to be renewed. For La Quinta, we can customize the label EXPIRED to also include properties un-permitted that do have a lodging tax account and are remitting. • Finally, UNIDENTIFIED status corresponds to properties that have yet insufficient information to be consolidated. The results are reported in priority order sorted 1. By status with FAIL at the top, then MISMATCH, EXPIRED, PASS and UNIDENTIFIED at the bottom 2. Within each status level, sorted by estimated sales by descending value Tax Workflow �5Harmarl STR Sources Our Partlier AirBnB ♦' i• Cross . Engine Checking r* IR, ,,,je.V Assessment . . Figure S:Tax Collection Workflow Revenue Estimation (Scope#9) Once STIR properties are detected and identified, revenue estimation is needed to properly assess taxes owing. LTAS offers 2 different revenue estimation models: review-based, and booking-based. A review-based revenue estimate is a reasonable lower-bound on gross receipt that can be derived directly from guest reviews of the property. The formula for calculating Powered By LTAS Technologies Inc. - Page 10 • Harm .by LTAS LTAS Technologies Inc. taxable sales is Sales = number of reviews x (price per night x minimum night stay + taxable fees) Where taxable fees are any required fees as part of the stay (e.g. cleaning fee, booking fee, administrative fee). This value understates actual sales because not all stays at an Airbnb property result in a review. Informal estimates have put that review/stay ratio at roughly 75%1 , but things could be different within Palm Desert. Booking-based revenue estimate is derived from forward-looking calendar bookings, which in a sense is a predictive analysis of future tax collection. Harmari monitors the STR listing's calendar up to 180 days ahead to count booked days which leads to the following sales estimate Sales = Calendar booked days x price per night This overstates actual sales due to cancelations and/or blocked out personal use by the owner. Harmari also looks for specific keywords or phrases that correspond to a stay longer than the minimum nights. For example, if a review states "we had a great long weekend at Bob's place", and Bob listed the minimum nights as 1, then Harmari counts 3 nights instead of 1 night. Booked dates are collected each week from the listing which can then be used to derive more accurate revenue estimates each quarter beyond just the reviews. For example, booking data from January, February and March of 2018 will assist in a TOT estimate for Q1 of 2018 once April 2018 comes around and the data is recorded. Calendars are consolidated for all fully identified listings where the STR operator is known (status 6,7,8). Web Interface and Archive (Scope#6,#7,#12) Harmari TaxCrawler Reports are delivered via web-based user portal (see Figure 6). The first report results will be delivered to Palm Desert within 14 days of execution of Agreement. New data is delivered according to the following weekly schedule • Dashboard Report PDF • New STR Report (EXCEL) • HTML/JPG/JSON Archive, images are high resolution screenshots • Identifications Report (EXCEL) • Downloadable Case History of each STR listing (PDF) • Interactive, editable Peg map (see Figure 7) • Dynamic heatmap of listings Blog on airhostsforum.com circa 2015,http://airhostsforum.com/t/how-many-of-your-quests-leave-reviews/2504 Powered By HK LTAS Technologies Inc. - Pagel 1 • Harmari by LTAS LTAS Technologies Inc. Welcome City of Ventura Rdresh <<vr vonhxWArchlvNe 13%/a 13044414/ - vr ventura Select 4II ZIPBDov load Search ArcMve NameSizeDab Dashboard Help 20171024 11/2111708:10 Reports 20171025 11/2111708:10 Screenshots 20171106 11/21/17 08:10 20171127 01IM18 03:25 20171216 12/1&17 10:38 20171223 12/23/17 10:28 20171230 12/30/17 10:35 20171231 01/09/18 03:25 20180103 01109/18 03:25 20180105 01/09/18 03:25 20190113 01/13/18 10:55 pictures 12/18/17 10:38 Noma flea Dab a_13044414-changeiog.xlsx 4.41 Kb 0111311810:55 12 dkectory(s)and 1 filets) Figure 6:Web Portal Screenshot Example ���merge nawtsmxr orMW�1�TM o • V � :� Figure 7:Peg map View within Web Portal with interactive selection' rM Reporting and Analytics for TOT Audit and Enforcement (Scope#7, #9) The Harmari Dashboard Report contains charts and graphs which will assist the City with audit and enforcement. A summary of the charts and graphs in our web portal is in the table below, with relevant charts highlighted in red. An assessment may be triggered from input from the City, by non-responsiveness of the taxpayer, or by the size of the TOT obligation. Chart Useful For PIE CHART of Year Ad CreatedNear Joined Estimating annual STR turnover—Tax Collection PIE CHART of Property Type Crafting proper ordinance applicable to each property type PIE CHART of Room Type Crafting roper ordinance applicable to each property type HEATMAP of Properties in La Quinta Identifying Hots pots in the Jurisdiction—Code Compliance BAR GRAPH(Histogram)of Nightly Rate Tax Collection PIE CHART of Number of Bedrooms Crafting proper ordinance applicable to each property type PIE CHART of Status Tracking contractor STIR identification progress AND Powered By LTAS Technologies Inc. - Page 12 M in LTAS Technologies Inc. tracking overall STIR compliance progress BAR GRAPH (Histogram)of Number of Prioritizing high-volume STIR operators and/or Property Properties b)t_Owner Management Companies Tax Collection BAR GRAPH of Occupancy Ratio Better assess revenues and refute operator disputes-Tax Collection BAR GRAPH of Data Source Better awareness of STIR platform sites and their role NEW SHORT TERM RENTAL REPORT Weekly report of new short term rentals that have appeared, including breakdown by data source PERMITTING AND TAXING BY PROPERTY Ensure permit number(s)are properly displayed on STIR listings, and-make future compliance effort easier ESTIMATED TAX COLLECTION AND Using Estimated Minimum Sales, determine what may be LEAKAGE uncollected,taxable gross receipts from non-AirBnB listings c N ° S Code Compliance, and Violation Enforcement Assistance e Floor a0. E t (Scope#5) _ _ H _ _ °' Harmari reports contain features that will help identify Z (9 ! , 2(2 16(12 2 violations on the maximum number of occupants (2 Allowed) allowed) occupants per bedroom), minimum nights (2 nights) or off- street parking spots. In preliminary analysis 1. 2 4(2 17(18 3 AAowed) allowed) 1675 listings are in violation of the maximum 2 1 (1 14 (16 3 occupants' ordinance 5.10.090(G) Allowed) allowed) Only 268 unique permit numbers were found in listings advertised, which means over 900 permit holders Allowed) Mowed) 1 2 t6(10 2 are in violation of ordinance 5.10.090(B) • 704 listings describe "off street parking", which is in 1 3(2 t6(14 2 violation of ordinance 5.10.090(J) Allowed) Mowed) Furthermore, by choosing to upgrade to the time-stamped PDF (Level 2) or the track-changes spreadsheet (Level 3) advanced archiving modules, code enforcement will have documented proof of the instance when the violation was detected, and the sequence of events for first violation, second violation, and third violation. The Case History also complements the track changes feature, but each timestamped PDF can be submitted for evidence in Court. Powered LTAS Technologies Inc. - Page 13 • EL Harman by LTAS LTAS Technologies Inc. Harmari Report (Scope#2, #4, #7,#8, #9) The Harmari Taxcrawler report contains the data requested in the RFP and additional valuable information that shall be useful to the City in different situations of taxpayer dispute. For example, the "Shortest stay interval" column is useful when an STIR advertises a minimum 31-night stay which falls outside the purview of TOT tax collection. If the shortest stay interval on the calendar indicates less than 27 days, that is possible evidence of the obligation to collect TOT. A more detailed consultation with LTAS could allow the City to understand and appreciate the value of the information delivered in the format below. Nevertheless, any columns below that directly address the requirements of the RFP are highlighted in red. Please refer to Appendix A for a sample Harmari Taxcrawler Report with 3 identifications within the City. Figure 9 is an example screenshot of the Properties worksheet for the Harmari Taxcrawler report. It contains the following data points: • Property ID— natural ID of the property in the STIR website preceded by the first letter, e.g. v_123 is VRBO property#123, f_456 is FlipKey property#456 • Owner ID -cross-referenced to the Owners worksheet, this ID is generated internally by Harmari for easy cross-checking. For example, vu_123 is the owner of VRBO property#123. Note that VRBO does not have a natural owner ID so the same person may have multiple Owner IDs in the Owner worksheet • Property Name (title of the property listed on the STIR website) • Coordinates (approximate latitude/longitude of the STIR listing) • In Jurisdiction (either YES-SA for within the City, or NO for outside the City) • Property Address (exact street address of property per County Clerk records) • County Parcel Number(parcel number or unique identifier of the property) • City (city for the property as computed by geotagging software) • State (state for the property as computed by geotagging software) • Zip (zip code for the property as computed by geotagging software) • Review Name(s)—names that were detected while scanning the guest reviews, with frequency of occurrence in brackets. Note that there will be false positives • Signatory Name(s)—names that were detected as signatures of the hosts in reply to reviews placed by guests. Note that there will be false positives • Status— Property identification status: o 1 = unidentified o 2 = not in jurisdiction o 3 = owner/operator identified o 4 = property manager identified o 5 = rental property address identified o 6 = owner/operator identified, rental address may be approximate o 7 = operator and rental property address verified o 8 = owner/operator and property address identified o 10 = duplicate of another property 0 11 = inactive 0 12 = prohibited use 0 13 = dormant zombie listing • Name Source—data source(s)where the Operator Name was found. Accompanying screenshots may be made available upon request • Operator First Name—first name of STIR operator as detected in public records search • Operator Last Name - last name of STIR operator as detected in public records search Powered B LTAS Technologies Inc. - Page 14 • Harman by LTAS LTAS Technologies Inc. A B C D E F G M I J K L M N O 1 Reports generated by:LTAS 2.Vacation Rentals Report Technologies Harman Report O 2017 LTAS Technologas Inc At"s 3 call:877-352a2T7 Reserved 4 Property Coordl Property Parcel Review Signatory B Name Operator operator ID Owner ID Property Norms nabs Address Number City State Zip Name is) Name is) source First me Last Name 5 a 9776337 w_50400360 Musc City Marn on-10 Bed 8 Bath 36 14270 - An Ave S 10404021000 Nastmlle TN 7212 Lems(M13). Lives 8•Google+Clear Levns -Houses for Rom n NasWk 93452776 Wayne(1/13). +County 6 16.- Caldonva(1/13) Records I a 9906442 au_24619458 2BR East Nashville Writers 36 17969 .cklard Dr 8310 696900 Nasht4le TN 37206 Laweryl9/59). Allas360 8 Googla+Ckr Lauren - 9 Bungalow�Houses for Rent ot 97563693 K"n(4/59). +County 7 NastmBe 44,- Leah(2/59). Records v_587827 w 587827 Nastmlle Tn Vandy Area Histonc 36 13966 TdIa Place 10505005300 Nasholle TN V212 Sydney Sydney 8 VRBO+Google Sydney Estate a True 5 Star Resort 8 4.. (24/50). Pemca. +County 8 Gated 8679221 DameBe(1/50).Sydney Records a 939940 au 1195300 East Nash k Suite On the River- 36 22926 hush Hill Rd Nastmle TN 37216 Jall(229/238), i.Jet 8 Google+Gear Jet t Houses for Rent m Nashate 17317665 Chester(14/2381 +County I 9 3.- ). TonA21238).: Records v 771705 vu 771705 Desgnr Home m the Middle of 36.14420 "e 4th Ave N 104010 66200 Nashr,lle TN 7209 Angela(9/25). Angela Han 8 VRBO+Google Angela Music CRY I, NashMa +County I 10 86 82746 (2/25).Jack Records v_329224 w_329224 Ashwood Guest House-Your Home 361295 vshwood Ave 10416009700 Nashtt8e TN 17212 Nashelle CJ 8 PIPL+VRBO+CYNTHIA J m Nashville 448. (3/73) Google+Clear 11 86 79600 Frankbnn(2/73). +County a_9386566 au_48693413 LOCATION.LOCATION 36 17688 - ar St 08212027200 Nattmlle TN 37206 BrrMar(19/34)Brarndon 8 Akbnb+Goo91e KATHRYN •AP LOCATIONeen-Houses fm Rem in 76684160 +Clow+ 12 Nashvrte 5. County Records v_621798 vu_621798 3BR.2BA Chrmr m the Heart of 36 12327. AorRrose 11801013200 NashANe TN 7204 Lauren(13/I3).Colrain 8 VRBO+Google Lauren Figure 9:Screenshot of Properties tab,first half o�r�.,r P 0 R s T U v V X Y 2 M As AL_ M Air M AO_ M N AJ M M /AI M A0 M AO M r 2 0 t TS Oaenter OpeM plan EAtenrM Properi Raorn Rooin k Coles, Pea eeMMt Dataround Oes Lett Lon Plwrro aalnee wewna g Wt Wt < aL Arlreee rCiry - - Ylsbtife YType Typa Sill F a _ Foanit Fnaind Seen IF i tl C a 1pM !- d- - Mpam-- Modln-• !- - - - r rElllFn TN Mors -»- wa. Ern. OntRi96 14 *t-~ ties - menorar mmone anpert nm ww •.IelJrllV 9dNLL lionenM BA t E OYW,6 tEV NY Bt% >d1f4 Wu. Enw 2BR2 tm0 tW aMA1W mnawt V N,tm ]ciao IE YOIK noee+w BA 7 5 nYA NWriier 1N aWYt Dam taR+12 lilac melONn 20rROLe mnI0t110 V W!e iueo t nn Bares N.rMae IN oTle Italart rOYt trout+ Peres rW' t toll Soneteer xroxnna mrrreva V a"" '0,00 •Y Ve"I m BA lllaqt sT Ft O ttt01 3a1s r0ae to..+ iss0 rto tm !tor pY2o mnAnrtl mererzt mAAYro mogLro Y rots woo .r11H FAus BA w to ltt3 1'+A,n.00a Nunua.rH sb>•)At aNu weAo. 18R is 2 tz+z Bn s10 zmtrovrz mpMns manor mnrovn iorlrova Y tsuez znnro M n A.es w..er.rH zTzr smrae t1w.. Enn+ + z sFOo tm mrwLr 2(nA1W i0nrove r alNa onw �e.ro ntn p Figure 10:Screenshot of Properties tab,second half - __ •. •_ __ _.__ _ - _ .. Continued on Figure 10, more columns in the Properties tab: • Operator Address—street address of STR operator as detected in public records search • Operator City—city of STR operator as detected in public records search • Operator State—state of STR operator as detected in public records search • Operator Zip—zip code of STR operator as detected in public records search • Rental License—permit found in STR listing • Phone—contact phone number for owner listed on VRBO • Other Listings—a URL that points to other properties listed by the host within STR • Web site—hyperlink to the property listing on STR • External Web site—hyperlink to the property listed outside of VRBO on a privately-operated webpage (if applicable) • Property Type—description of the property(condo, house, farm, cabin, etc) • Room Type—entire room, or room share (default—entire room) • Room Size—bedrooms and bathrooms of the property from STR • Floor—floor number of the unit as detected in the listing verbiage • Number of Guests— number of people that can sleep on the property from STR • Minimum Nights—minimum number of nights someone must stay at the property from STR • Rate—average nightly rate as listed on the property (varies in peak and off-peak seasons)from STR Powered B HK LTAS Technologies Inc. - Page 15 • Harmari by LTAS LTAS Technologies Inc. • Tax Rate (%)—the Percent tax imposed by the Operator on a transaction as on listing, or blank if not found • Taxable Fees—the mandatory fees associated with a transaction e.g. cleaning fee, booking fee, admin / registration fees, parking, garage, security fees, or blank if not found • Non-taxable Fees—Other non-mandatory fees were listed like pet fee, damage waiver, amenities, linen fee, etc., or blank if not found • Calendar Last Modified -date the property's availability calendar was last modified on STR in yyyy/mm/dd format • Page Last Modified -date the property's listing description was last modified on STR in yyyy/mm/dd format • Date First Found—the date the first review of a stay from a guest appeared on the property's listing within STR • Date Last Seen -date the property's listing was last seen on STR in yyyy/mm/dd format • Number of Reviews- number of reviews by guests who have stayed on the property from the "Date first found"to the date of the generated report from STR • Review Stay Days— minimum number of days factoring in specific reviews that mention longer durations than the minimum nights stay (e.g. long weekend, 1 week, etc) • Year Ad Created —the year the owner-operator first signed up with STR • Year Purchased —the year the property was purchased by the owner/operator, or blank if not found • Owner Operator—Y if the property is listed as Owner/Operated on STR, N if the property is listed having a property management company • Minimum Sales—estimated minimum sales as described below • Six month occupancy— ratio of dates listed as booked on STR divided by total dates in the upcoming 6 months Figure 11 is the list of STR owners that correspond to the properties listed above, some of which are multi-property operators. By using the Owner worksheet, the client can easily generate customer outreach letters via importing to a mail merge. Status 8s will go to owner/operators, Status 6s and 7s go to property management agencies and the language of the letter can be adjusted for each. The Owners report is laid out as shown below, with the following columns • Property ID—natural ID of the property in the STR website preceded by the first letter, e.g. v_123 is VRBO property#123, f_456 is FlipKey property#456 • Owner ID -cross-referenced to the Owners worksheet, this ID is generated internally by Harmari for easy cross-checking. For example, vu_123 is the owner of VRBO property#123. Note that VRBO does not have a natural owner ID so the same person may have multiple Owner IDs in the Owner worksheet • First Name—first name of the property owner. If multiple owners are referenced in the property tax roll, then this is the first owner listed. • Last Name—last name of the property owner • Owner Street—vacation rental owner's street address as listed on a phone number lookup in CLEAR2, company website, or property tax roll • Owner Apt#-vacation rental owner's apartment/suite number(if applicable) on a phone number lookup in CLEAR, Company website, or property tax roll • Owner City—vacation rental owner's city on a property • Owner State—vacation rental owner's state on a property • Owner Zip—vacation rental owner's zip code on a property • Business name—the vacation rental owner's business name as found on a property • Minimum Sales—estimated minimum sales of the property as described in formula below • Status— Property identification status: 7 = operator and property address verified, 8 = owner/operator and property address, 10 = duplicate of property 1 CLEAR is a Thomson-Reuters product that provides public record information Powered By HK LTAS Technologies Inc. - Page 16 • N.—H by LTAS LTAS Technologies Inc. • Data Source—data source used to detect the owner information A B C D E F G H 1 J K L M 4 Property Owner Owner Minimum Data 10 Owner ID First Name Last Name Owner Street Apt# Owner City State Owner IJp Business Name Sal" Status Source 5 a_6291388 au_25783346 OOOMONT STE NASHVILLE TN 37205 +seam• 31NG 140.625 0 County 6 -4-1 91M411,410- " Records e 9776337 au 50400360 LEWIS B 8 HENDERSON TN 37075 71 305 8 Clew 7 COMIIEM .�ENTOWN VILE .9906442 au_24619458 yVENDE OF NEW YORK Ny 10036-2714 • m DRIVE LLC 64.900 8 Clear 8 M,IMERICAS y 587827 w 587827 Sydney dla PI NntW* TN 7212 60.450 8 County 9 _ _ Rec a 939940 au_1195300 Je8 - . +<'+�Mush Hill Rd N-PrA. TN 37216 51.884 8 Clear 10 v_771705 w_771705 '+3*4A(E ST TWIN FALLS ID 83301 >� ��TV.INC 45.625 8 County 11 vr i Records y 329224 ,4 329224 ROLFF -• Shwood AM NaaMIM TN 7212 41.902 8 Clear 12 - - Figure 11:Screenshot of Owner tab Powered B LTAS Technologies Inc. - Page 17 Harman by LTAS LTAS Technologies Inc. Warranty of Data Accuracy and Quality (Scope#4) The Harmari identification process maintains a high level of reliability and accuracy. Our procedure requires at least 2 pieces of overlapping information to corroborate the information in the STIR listing. LTAS goes the extra mile to make sure the information identified objectively overlaps with corroborating information. LTAS guarantees accuracy in its Service Level Agreement with penalties applied if Harmari goes below certain accuracy thresholds. For Identifiability, Harmari guarantees that it will provide the full name and exact address of the STIR operator a minimum percentage of total STIR inv ntory for Year 1 of the contract. Listing Building Type Target Penalty House, Villa, or Single family dwelling 95% 1% of contract per 1% below target to a maximum Apartment, Condo, or unit of Multi-family dwelling 75% of 25% of contract Year 1 Tent, Tree-house, RV, or other dwelling N/A N/A For Accuracy, Harmari guarantees that for all listings which it provides the full name and exact address of the STIR operator, the following minimum percentage of the time that identification is correct Listing Building Type Target Penalty House, Villa, or Single family dwelling 99% 1% of contract per 1% below target to a maximum of 25% Apartment, Condo, or unit of Multi-family dwelling 95% of contract Year 1 Tent, Tree-house, RV, or other dwelling N/A N/A *Penalties for Accuracy and Identifiability in the SLA cannot exceed 25% of contract Year 1. Licensee must provide valid written proof of address via mail marked Return-to-sender, written statements from customer indicating an incorrect address or Affidavit denying operation of an STIR, or other equivalent documentation 24/7/365 Tipline (Scope #10,#11) The 24/7/365 Tipline offered by Harmari is second to none. During the greeting, the caller is asked to hang up and dial 911 if there is an actual emergency. The hotline operator will accurately take down the type of complaint (noise, garbage, parked vehicles, violence, drugs), the address of the incident, provide the caller with an incident number with PIN for tracking and follow up and allow investigators to easily respond to the complainant through a case management system as shown in Figure 12. A web form allows the Tipline operator/ recorder to submit all information, including attachments which handles any images or audio below 10 MB. For larger audio or video multimedia files, a Dropbox folder is exposed to the complainant to securely share the information with the Tipline. That Dropbox folder is automatically emptied by our system every 24 hours to our servers, and then is shared with City's Code Compliance division for investigation and follow up. Powered By IK LTAS Technologies Inc. - Page 18 Har i by LTAS LTAS Technologies Inc. Incident Reports status All Search for - - hate Reported Go Reset All Filters Advanced Met 2, j I A K V (p N 1 at I Paoes N 2 Rims I25 P q- Division Location case Date Source Incident Nature Reporter Dialog Interned External Risk prioritlt stapes Subroltte0 Follow Number Reported TWO Of Known to Available Investigators Investigators Level By Up Report with Reporter 170 ❑ NM Santa Fe 627 Gan—St, f 1- 2/1-1201% web Compliance Loud Lighthouse, ugh H,V; ;pen ,i h[hous- Santa Fe,NM, &EthKs Parties Company 87505 Figure 12: CMS for STR Hotline Incident Reporting The 24/7 complaint support hotline is a fixed cost. However, non-STR-related complaint calls (e.g. dog bite, derelict house, pot hole) are not included in the scope of the fixed cost and are described in the add-on costs table. Calls will be put on hold for no more than 30 seconds before they are answered by an operator and the complaint taken. Audio recording of the phone call provided only if the complainant agrees to not be anonymous. All information may be accessed from the CMS provided web-application by an account created for the City by the call center. Video, images or audio may be attached to the complaint if it fits under 10 MB. If not, then a Dropbox folder is shared with the complainant to upload their videos. Call center information is stored for the length of the subscription. Powered B LTAS Technologies Inc. - Page 19 • M—ari by LTAS LTAS Technologies Inc. Figure 13 is a flowchart of an actual customized workflow for the 24/7/365 tipline that Harmari has delivered to City of La Quinta, which is in full compliance with the City ordinance. 1. Guests inside an STIR begin partying late at night 2. The excessive noise disrupts a resident from their sleep, forcing him to call the 24/7 STIR hotline 3. The Call Center Agent records the incident reported by the resident, after which she provides the resident with a PIN and a case number to allow the resident to follow up. 4. The Harmari cross-checking engine receives a real-time notification from the Hotline's Case Management System (CMS). It then determines the source of the noise based on its database of known STRs 5. If Harmari pinpoints the source of the noise as being a licensed STIR, the operator of that STIR will receive a. an email notification to Code Compliance similar to Figure 14 b. an SMS text notification to the 24-hour local contact number with City-provided template similar to Figure 14 c. a human-operated outbound notification to the 24-hour number to the STIR licensee indicating that an incident has occurred at the STIR address, and leave a voice mail if no response. 6. The 24-hour local contact must respond affirmatively acknowledging receipt and will initiate corrective action within 45 minutes. a. If she responds in that timeframe, the tipline operator shall close the case and enter notes into the City's enforcement tool (i.e. Trakit) or the CMS provided by LTAS if the City has no system. b. If she does not respond in that timeframe, the tipline operator shall make an outbound call to Code Compliance if the incident was reported between 8:00 AM and 5:00 PM Monday to Friday. Outside of those hours, the tipline operator shall phone the police department dispatch unit with the incident details for follow up. 7. City Business Licensing may choose to revoke the license of the STIR operator if noise or violations are reported multiple times and can be verified by investigators. 8. If Harmari cannot pinpoint the source of the noise to a licensed STIR, then it will generate a list of the 5 closest STRs to the incident and either report to code compliance, or escalate to the police department dispatch unit (see Figure 14) 9. The incident is investigated by law enforcement or code compliance possibly attending the STIR property itself to disband the party house 10. Fines or citations are levied on the STIR operator if a violation is confirmed to have occurred 11. STIR operator pays the fines, obtains a permit with the City, ceases operating an STIR or continues operating an unlicensed STIR Powered By LTAS Technologies Inc. - Page 20 • Harman by LTAS LTAS Technologies Inc. Men Pam House Noise Complaint 24 7 Hotline Compliance WorkflowCross 1Checking Real Time Engine KED Disci line Notification Identifiratioti Pavmeiit Fines Enforcement citstions T�Ate. X There has been an incident report submitted to City of Santa Fe A regarding the short term rental at 627 Garcia St.Please investigate the matter to ensure proper ordinance and zoning laws according to your permit. Type message ❑..— rnr —u—'AI ..xIII T..aIMA.An.rrrw can rM.w e..n w STIR nnena..RN w4N�N�.C.y a S.w.F.IM conyl�..e rw.xN�.N•w Irw 633 Gwcx 4 x.nw nn 4a,.M b.ea.q Ixaq Yw.y 4.,n.Igom as bB.wup LICENSED pSTAMGF Iq LlCfxsE uRL mLE RDDBE SIII LlsTnx:ADp1E55 LISTING COBTACT LISrx1G RlnxElsl eN&�e G.i..axN �3 eBA na r.a-xa,...4 RMnsM.F. 3NL38. s3T Gw.uv ti/%BS] ELI0SEY .n lBR 3B4nhu.uc ENtSW JBR/f BA B_ cyg frwxN llww 11S59WBt. 0 t6t%.53 (Ip15E_T Gw..w.»Gaca waE/o M¢..rla run Dop aK IBA/2 M 1qn 3DR30A 63 F,a, BISS96J.tB UNLICENSED,EXPIRED,UNIDENTIFIABLE gSTABCE Iq sTATUS uRl nitE Ess LISTING —COxTACT LISTR� IS) 333 gm1AN yg8q I.MwN ROOY�E 1-1—�ODR YBflfl Eby Nrry 4m Lana W 3 H13 a Sw.F.w.c.an RM W W.My N..R 505.9&.Z310 5 ENI.tl.Awl Boa ry Cwrym Rd ynpnmM.4 RM n SM.f. i E.2 t BA Bt]g ��L D I(y�.•N BJ. . MireSwu F.aN.Ny tr v..�a FM. b�nM.4 RM n Sw.F. Bt2 ni..la st ux c i.56 awxnNa...m.cn Chw Caiym Ro.a Cw..aeuu.tr RM n SM.F. I BR t aA 5 A Walal 1t4p Powered By— _ LTAS Technologies Inc. - Page 21 • Harman by LTAS LTAS Technologies Inc. FEATURES NOT REQUESTED IN PROJECT SCOPE Perform outreach Once the list of non-registered or under-reported taxpayers is verified, then a direct-mail outreach campaign begins. LTAS' collective experience regarding taxpayer outreach is that tax discovery is best served on plan black/white letter, with personalization directed on the letterhead within a #10 envelope, and only the STIR address is listed in the inquiry. Once the taxpayer engages in a dialogue with the agency disputing the letter, then that is the point where supporting evidence can be cited. All can be found readily available on the web portal. Harmari is responsible for mailouts and taxpayer outreach regarding unregistered STRs. The taxpayer will likely respond in the following manner: 1. Denial of operating an STIR or alternatively"I am just the cleaning lady, I'm not the boss" 2. Having personal guests over that didn't pay to stay at the STIR 3. Was not aware they were doing anything wrong In all 3 of these situations, City customer service staff have the Harmari reports with everything at their fingertips. In situation (1), the name was obtained from reliable sources mentioned earlier through data triangulation between public record, the STIR listing itself, and social media. In situation (2), the indication of reviews left by different travelers (of different countries and ethnicities)will prove that the guests are not friends or family but in fact stayed and paid for it through the STR platform. In situation (3) it is very easy to refer to existing City ordinances and laws related to STRs. Oracle Service Cloud helps organizations create proactive, relevant communications based on complete knowledge of their STIR Operators. Communication activity is automatically added to records to give the City a complete and accurate view of outbound digital and hard-copy STIR Operator interactions. Oracle Service Cloud ensures that the City's staff can track and learn from every interaction. As a result, the City will have access to rich data needed to create personal and proactive communications. Oracle Service Cloud's survey management tools enables STIR Operators to create relevant and targeted surveys. In addition, Oracle Service Cloud's advanced multidimensional audience segmentation tools enables you with the capability to identify target audiences, include or exclude other lists (for sophisticated segmentation), and employ pre-existing lists for faster survey and email creation. Oracle Service Cloud enables to captures real-time citizen feedback from multiple channels, including Web, e-mail, phone, proxy, integrated voice response, SMS and chat. This allows the City to gain a consolidated view of all feedback- regardless of the channel through which it is sent. Harmari Taxcrawler will accept monthly uploads of STIR operators that are filing TOT and/or permit and/or business license data to measure which STIR operators are now in compliance and who has not. Progress is healthy as long as the graphs go down from left to right as shown in Figure 15. Powered B HK LTAS Technologies Inc. - Page 22 11MMI Harman by LTAS LTAS Technologies Inc. STR Compliance Status 140 120 100 80 60 40 20 0 New Non- First Notice Second Notice Converted to Referred to Code Registered Licensees Compliance ■Feb-17 ■Mar-17 Figure 15:Example of STR compliance outcomes Multi-Channel Support & Self-Service The Oracle Service Cloud provides a complete multi-channel user experience for the case management processing of your discovery leads. Features and functions of the Oracle Service Cloud relevant to our tax discovery service include: • Multi-channel support—to correspond with permitted and non-permitted STR Operators across multiple service channels. • Advanced workflow processing—to stage cases from the beginning to end of your permit issuance and community complaint process. • Complete audit trail of information —to track correspondence history and store documents, video, photo and audio evidence associated with an STR • Community Outreach and Feedback: proactively engage with STR Operators for permit renewal reminders and citizen service feedback. Multi-channel Support The Oracle Service Cloud(OSvC) provides a unified view of an STR Operators interactions across multiple channels. Feature and functions of the Oracle Service Cloud include: One of the key benefits of the Oracle Service Cloud is its intuitive graphical user interface (GUI). The service can be accessed by most of the current browsers and on all mainstream platforms, including PCs and Macintoshes (end user only). Oracle Service Cloud improves your online self-service into a highly interactive citizen experience. Oracle Service Cloud Web Customer Service pushes relevant knowledge to where your citizens need it, harnessing the external Web 2.0 knowledge assets they require to report a complaint with attachments or search for answers about STR Operators online. Oracle Web Citizen Service automatically predicts questions and presents answers. Citizens can access its knowledgebase through keyword search, browsing, and decision tree search. Best of all, as citizens use the knowledgebase and submit questions, new and unique issues are identified. These are then added to the knowledgebase for the benefit of PoweredHK B LTAS Technologies Inc. - Page 23 • Marmar,by LTAS LTAS Technologies Inc. agents and other citizens. When visual communication makes the difference,the City's staff can leverage co-browsing to proactively address queries in the most efficient and helpful way possible. Email Response Management provides quality communications and timely resolution too with personalized responses that leverage centralized knowledge, routing, workflow and cross-channel communications. For more information about Oracle Service Cloud, Web Customer Service, please reference the following datasheet: https://cloud.oracle.com/_downloads/DataSheet_Service_WebCustServ/oracle-service-cloud-web- customer-service-ds.pdf Knowledge Management Contact Center ® Web Customer Service Ctoss Channel Knowledge APIs nt __ Agent istant -.Unified Agent Polity Automation Dynamic Interviews,Compliance Management,Rule Modeling Policy Ldecycle,Policy Analytics,Policy Services Experience Management,Extensibility& Integration,Hosting&0per a t ions Advanced workflow processing OSvC provides customizable workflow functionality to automate the tax discovery process and drive an increased team or work productivity internally or externally with STR Operators. Workflow capabilities include the ability to manage workspaces for contacts and accounts across service interactions. Further, intelligent queuing and routing provides the ability to automate updates, responses, escalations, and assignments; balance workloads using standard assignment and round-robin queuing. Powered By HK LTAS Technologies Inc. - Page 24 MW Harman by LTAS LTAS Technologies Inc. 1 H W ' n ». «e c«a.n o as aYr wamr• .roa-Ann.Aa+�a aaw sn rw N. .ai cq• u.r ra.,o.r sow c•ar.. woaa.r tr ce.»rr. C_ c r aaa i.e.a.. crraa ..t. cn.w.• Q aw.• wi ,. M ww.r•Caa.rrs n•rt r rM N.ar srr W Ern Lr+.1wt br+..rru..Yti.r.u.a.• a+..ar. Wr Yarra�.y�w.rra.�..w.e.r. r♦IYaYa r IWaYYra .N.J.4r..ti..N yr 41rwOrlq aMn4 Yr'w,ti1 •, • .Ma<..r.N:e. MYIOrrY .NW.vKt •NSMn. , Complete audit trail of information When looking at a record in OSvC, the audit log lists a series of actions that had affected that record, including when the record was created, events that occurred related to the record (such as editing or changing the status of an incident), and by whom. Community Outreach and Feedback: Oracle RightNow Outreach Cloud Service enables you to provide powerful, proactive communications to improve citizen experiences, by leveraging a single customer database to provide the following key capabilities: o Multichannel Program Management o Facilitate design efficiency through the easy-to-use drag-and-drop graphical campaign designer interface o Proactively contact recipients with relevant, personalized time-critical messages based on rules and events o Ensure the quality of program outreach communications through automated segment deduplication o Monitor, track, and analyze end-to-end program outreach performance For more information about Oracle Service Cloud Outreach capabilities, please refer our datasheet: https://cloud.oracle.com/ downloads/DataSheet Service Outreach+/oracle-service-cloud-outreach- ds.pdf Oracle Service Cloud Feedback is a fully integrated, multichannel enterprise feedback solution that enables you to capture, measure, and act on critical customer insight so that you can continuously improve the customer experience. The survey management tool enables you to cost-effectively conduct relevant and targeted surveys, and with advanced multidimensional audience segmentation tools, you can identify target audiences on the fly, include or exclude other lists (for sophisticated segmentation), and employ pre-existing lists for faster survey creation. Oracle Service Cloud Feedback intelligently synthesizes customer feedback into graphical, understandable trends for immediate follow-up. Feedback responses are combined with profile information and other corporate knowledge, providing a single, consolidated view of the customer. For more information about Oracle Service Cloud's Feedback offering, please refer to our datasheet: https://cloud.oracle.com/ down loads/DataSheet Service Feed back+/oracle-service-cloud-feedback- Powered B HK LTAS Technologies Inc. - Page 25 • Harman by LTAS LTAS Technologies Inc. ds.pdf Complete, Modern Citizen Experience for Government Oracle offers a Cloud based Customer Service and Enpgement Platform that makes it easier for your citizens to engage,empowers your service delivery workers,and helps you adapt to rapidly changing stakeholder demands and business conditions 1/N • n 6t I .r V j 50CWA ottKt CAHMi0111129 CO~ mosu c rXM [ett0 was uwtcr at +w twat Al A 1t•vKt A/P{J(ATtD� ® 8 13 RI ID S[RVK[ VKYf VW Uu I ct01UPOPMr11011VAUN tcts - Figure 16:Full Capabilities Chart of Oracle Service Cloud Harmari's web portal also has add-on offerings to enhance the compliance effort. • Calendar booking analytics which track when bookings are made on the STIR operator's booking calendar. By comparing the booked days of the particular unit against comparable units in the City, revenues can be estimated more reliably than simply the minimum based upon reviews. This capability is enabled once there are at least 6 months of calendar data on the record for the project. • Timestamp PDFs which are web-browser rendered (WYSIWIG)format snapshots of what the STIR listings looked like (Figure 17). This is very useful for fly-by-night listings that only pop up for short periods of time, accept a booking and then shut down. For example, for a particular sporting event, music concert, festival, or even around holidays. • Track Changes records, which enumerates how all information changes, when it changes (date/time, field, old value, new value). This is useful for code compliance cases when the number of rooms listed exceeds the maximum. Code enforcement can prove that the STIR operator exceeded the maximum on more than one occasion. --------------------- ...�, - C x *�-- a s a "° Ho toot Hrci«,"wain..., Q Sig.I. Jwwwaww.wr r Y Goromin H1 Euhide 2 ..... Sedr Powered B LTAS Technologies Inc. - Page 26 111154W H-mad by ETAS LTAS Technologies Inc. Powers a By FM LTAS Technologies Inc. - Page 27 • Harman by LTAS LTAS Technologies Inc. PROFESSIONAL SERVICES AGREEMENT LTAS accepts all terms of the City's PSA as presented in the RFP. Powered By LTAS Technologies Inc. - Page 28 Harman by LTAS LTAS Technologies Inc. COMPLIANCE LTAS shall comply with applicable federal and state laws, including labor laws. iE LTAS Technologies Inc. - Page 29 Fvvi Harmari by LTAS LTAS Technologies Inc. LITIGATION LTAS is not aware of any current or past litigation against it. Power]rw By LTAS Technologies Inc. - Page 30 Marmart by LTAS LTAS Technologies Inc. REFERENCES Below are specific references related to the effectiveness and quality of Harmari for short- term-rental compliance Current Customer Quote/ Story City of La Quinta, CA . Under contract to provide STR monitoring, Missy Mendoza identification, 24/7 hotline, and outreach services to Vacation Rental Licensing Assistant La Quinta which has 3620 listings and 1358 Tel: 760.777.7060 permitted properties as of October 2017 Email: mmendoza(a)la-guinta.orq . Discovered 305 unlicensed STR operators and sent letters to them in January 2018. • Handled 7 STR hotline disputes inbound including outreach to STR operator, City staff and to informant, and input into internal tracking system • Handled 15 information requests from City staff to assist with dispute resolution City of Ventura, CA . Contracted since October 2017 for monitoring, Noelle Sorensen identification, outreach, and 24/7 complaints hotline Treasury Supervisor& Senior (ongoing) Accountant . Found 50 unlicensed STRs out of 337 detected so Tel: (805) 658-4773 far. Initial outreach letters sent out Email: NSorensen Cit ofVentura.ca. oy Town of Breckenridge, CO . Contracted since August 2017 to identify only illegal Heather Pezzella STRs for the town Revenue Services Administrator . 129 Unregistered STRs (67 of which were condos) Tel: (970) 547-3195 compared to only 20 found by competitor Email: h pezzella townofbreckenridge.corn South Dakota Department of . LTAS contracted to provide data for 1400 STRs for Revenue South Dakota from July-August 2017, (includes 121 Doug Schinkel condos/apartments) Director of Business Tax . 25% Unregistered Owners/Operators from July Tel: 605-773-3414 deliverable were found Email: Douglas.Sch inkel state.sd.us Allegheny County (PA) Treasurer's . LTAS contracted to provide data for STRs including Office 24/7 hotline for 5 year term as of January 2017 Bill Boyle (ongoing) Human Resources Manager . 1200 Unregistered STRs (including 411 Direct: (412) 350-7359 condos/apartments) Email: William.Bo le Alle hen Count .US Powered NK LTAS Technologies Inc. - Page 31 WRI Marmari by LTAS LTAS Technologies Inc. City of Santa Fe, NM . LTAS to provide compliance data for Vacation Home Randy Randall Rental for 5 year term as of October 2016 (ongoing) Executive Director, Tourism . Successfully identified 1102 listings (276 were Tel: (505) 955-6209 condos/apartments) Email: rrandaliCc�santafenm.gov . 185 Unregistered STR Operators detected (16%) in initial deliverable Dec. 2016, and only 2 came back return-to-sender. Pennsylvania Department of • Subcontracted to PA Revenue Sales, Use, and Hotel Revenue Tax project since March 2016 Kevin Frisoli • Vacation Rentals project encompassing VRBO/HomeAway, Director of Compliance FlipKey, Craigslist, etc. Discovered 20% non-registered Revenue Solutions Inc. short-term-rental operators not remitting lodging tax Tel: (888) 826-1324 ext. 363 Tel: (617) 233-8148 — cell Email: KFrisoli RSlmail.com City of Greenville, SC • LTAS contracted to provide data for Short Term Jodie Dudash Rentals for 3 year term as of December 2017 Revenue Administrator . Initial report delivered with 185 unlicensed STR OMB Revenue Division listings identified Email: idudash greenvillesc.gov PHONE: 864-467-4522 Sonoma County • LTAS contracted to provide data for Short Term Rentals Jane Riley, AICP for 2 year term as of February 2018 Supervising Planner e Estimated 3000 STR listings with 800 permitted and 1200 Comprehensive Planning Division remitting TOT Direct: 707-565-7388 e Identifiability of Owner/Operators on sample currently Email: Jane.RileyCa-)sonoma- 100% county.org e Awaiting zoning and TOT permit data for further follow up Cook County (IL) Department of • Purchased Harmari Search Craigslist module in June Revenue 2016 Anish Patel . 3 tax programs identified : Parking Tax, Hotel Tax, Field Auditor III and Amusement Tax Direct: (312) 718-5010 Email: Anish.Patel(wcookcount il. ov Powered By LTAS Technologies Inc. - Page 32 WRI H.—H by LTAS LTAS Technologies Inc. TIMELINE Please find below the schedule of deliverables and milestones, including Date Milestone Deliverables April 1, 2018 Contract Signed 0 City provides LTAS with TOT permit data • Harmari begins weekly monitoring, dashboard reports • Harmari provides 24/7 hotline number to City April 15 75% of listings Harmari report, archive, screenshots downloadable from identified portal • City sends Round 1 letter to unregistered owner/operators status 8 May 15 100% of listings 0 Harmari delivers remaining listing identifications attempted to be 0 City sends Round 1 letter sent to property managers identified regarding discrepant STRs (status 6,7) • City corresponds with owner/operators, efforts documented regarding Disputes, Non-responders June 1 Maintenance 0 Updated Harmari report with identifications • City sends Round 2 letters to unregistered owner/operators and property managers July 1 Audit of Q1 TOT 0 Using Revenue Estimation model, compare actual TOT to estimated and select audit candidates • LTAS recommends audit/assessment candidates to City • Updated Harmari report with identifications • Report on non-responsive STR operators provided to Code Compliance August 1 Maintenance 0 Updated Harmari report with identifications September 1 Maintenance 0 Updated Harmari report with identifications October 1 Audit of Q2 TOT 0 Using Revenue Estimation model, compare actual TOT to estimated and select audit candidates • LTAS recommends audit/assessment candidates to City • Updated Harmari report with identifications • Report on non-responsive STR operators provided to Code Compliance January 2019 Outreach to 0 Harmari prepares report for listings zoned R1, R2 Banned zones 0 City sends outreach letters to STR operators in Banned Zones November 1, Banned region 0 Harmari provides mailing list to Code for reminders to take 2019 compliance + down the ads for STRs in the banned regions Maintenance January 2020 Banned region Harmari prepares report for Code Compliance of listings compliance + within banned R1, R2 regions Maintenance City performs enforcement actions on STRs in banned zones Flowered HK LTAS Technologies Inc. - Page 33 �q Harmari by LTAS LTAS Technologies Inc. APPENDIX A: SAMPLE HARMARI TAXCRAWLER REPORT Powered By IN LTAS Technologies Inc. - Page 34 •jrZI—y Harman by LTAS Reports generated by: LTAS Vacation Rentals Report Technologies Harmari Report©2018 LTAS Technologies call: 877-352-3277 Property ID Owner ID Duplicates property Name In Property Address City State Zip Review Jurisdiction Name (s) a_13207409 au_136639 #JEM Luxury 6 Bedroom 3 YES-IN (Palm 73748 De Anza Way Palm Desert CA 92260 Angie(5/17), Bath in the Desert Desert) Josh(5/17), Jem(1/17) a_5692965 au_25481025 ESTATE HOME NOT IN A YES-IN (Palm 77645 Mountain View Palm Desert CA 92211 Alicia(8/15), GATED COMMUNITY, Desert) Ave Barbara(2/15), SLEEPS 16!! Jose(2/15), a_7771662 au_25965614 5/4, 8 BEDS, POOL FENCE YES-IN (PRh) 74614 Strawflower Cir Palm Desert CA 92260 Steve(70/62), AVAILABLE! Margarita(2/62) , Thomas(1/62), v_3778471ha vu_3778471ha Newly Remodeled Home YES-IN (PRm) 75686 Easy St Palm Desert CA 92211 Dean (6/25), Private Saltwater Pool, Mike (6/25), Jacuzzi, Luxury Vacation Joshua 4/25 , v_458909 vu_458909 Remodeled Private Home YES-IN (PRI) 40561 Terraza Dr Palm Desert CA 92260 Located near Everything, elegant and quiet v_633007 vu_633007 South Palm Desert 2 BD, 2 YES-IN (PRa) 48882 Desert Flower Palm Desert CA 92260 Cliff(1/12), Grill Story Condo- Swimming, Dr (1112), Tennis, Quiet Neighborhood Clementine �I �J i � Inc. All Rights Reserved Signatory Name Operator Operator Operator Operator Cn N Matched Name (s) Status Source First Name Last Name Address City `o o Rental Phone License L L Q Q O O Josh 8 Airbnb + Google JOSHUA STOMEL 1684 WESTLAKE CA 91362 + Parcelquest BELLSHIRE VILLAGE CT Lisa 8 Airbnb + Zillow+ Alicia Gonzalez 77645 Palm Desert CA 92211 Whooster Mountain View Ave Steve 8 Airbnb + Zillow+ STEPHEN M AUSTIN 74614 Palm Desert CA 92260 Parcelquest Strawflower Cir Mike and 1 VRBO + Zillow+ MICHAEL HACKETT 5001 VIEW PARK CA 90043 323-292-9919 Karine, Michael Google + Clear ANGELES 1/25 , Patty VISTA BLVD Terry 1 VRBO + Google Terry VANBIBBER 2537 ROLLING ALAMO CA 94507 + Clear HILLS CT Andi Brockwell 1 VRBO + Zillow+ ANDREA Brockwell 2701 CARLSBAD CA 92008 Clear MORNING GLORY LN 0 t d Y 0 O O Other z m m Web External Property Room Room o LL listings Floor o E y +, URL site Website Type Type Size E o o L .Q .E m cc z can M o 4- IL 136639 website house Entire 6 BR 3BA 12 1 1 2018-03-09 to $ 1,132 home/apt 2018-03-09 25481025 website House Entire 5 BR 3 BA 16 3 2 2017-10-06 to $ 3,875 $ 554 home/apt 2017-10-07 25965614 website House Entire 5 BR 4 BA 14 2 1 2017-10-14 to $ 150 $416 home/apt 2017-10-14 92465030- website House 4 BR 3BA 8 3 2 2017-10-27 to $ 399 $ 175 d321-4048- 2017-10-28 af6a- cf4b92bc- website House 3 BR 2BA 6 6 5 2017-04-01 to $ 395 $ 250 9bc0-43f1- 2017-04-05 a35f- c09a5c74- website external- Condo 2 BR 1 BA 4 30 129 2018-03-02 to $45 $ 150 65aa-4e53- website 2018-03-30 9c25- a fA >+ LL 4O N r Calendar Website a 'En o Page Last Date First Date Last Date First Date Last Last Last o y c� Q- E Modified Review Review Found Found m Modified Response m 3 3 ' x C r .0 a) W a a a) E " = O a�i .a�i d ai 3 = m Z Z W It } O M. Z O 2016/10/30 2018/01/02 2018/02/14 2018/02/15 1 on 2018-02 17 22 N $ 24,904 29/180 15 2017/10/03 2016/05/01 2017/07/30 2017/05/30 2018/02/15 1 on 2018-02 15 107 Y $ 17/180 15 424,043 2017/10/03 2015/12/01 2017/10/01 2017/05/30 2018/02/16 1 on 2018-02 62 124 Y $ 51,178 17/180 16 $ 111 2017/01/27 2014/07/03 2017/04/14 2017/01/30 2018/02/13 1 on 2018-02 25 117 2012 Y $ 53,508 75/180 13 $618 2017/01/11 2017/01/20 2013/03/25 2016/04/13 2017/01/30 2018/02/13 1 on 2018-02 7 42 2013 Y $ 18,340 52/180 13 $ 500 2017/01/27 2017/01/27 2014/10/15 2017/02/09 2017/01/30 2018/01/09 1 on 2018-01 12 600 2014 2014 Y $ 30,000 66/180 09 LTAS Technologies Inc. FEES Please provide your rates for each component of the services described in this RFP. All services described in this RFP and your proposal shall be included in the Annual Costs listed below. SERVICES YEAR 1 YEAR 2 YEAR 3 COST COST COST Package Includes: $112,500 $59,500 $59,500 • 30+ websites • Identification per Warranty terms • Weekly STR Monitoring, Deduplication • 24/7/365 Web Portal • 24/7/365 Live STR Tipline • High resolution HTML/JPG images • Phone/Email/ Remote Desktop customer support • Estimated revenue analysis PRICE SCHEDULE FOR ADD-ONS SERVICES Provider COST Onsite meetings/training/support LTAS $1,200/day+ reasonable travel cost Customer Outreach —Direct mail (2 rounds) LTAS $8,000/year Customer Outreach—Phone call (2 rounds) LTAS $8,000/year Harmari Archive Level 2—Timestamped PDF LTAS $10,000/year Harmari Archive Level 3—Track changes LTAS $10,000/year Additional Software Services/Customization LTAS $125/hour Court Testimony(not including travel) LTAS $275/hour Oracle Service Cloud Oracle Option A(Oracle Service Cloud Base) $26890/year Option B (Oracle Service Cloud &Oracle Policy Automation— Business Licensing & Permitting Solution Oracle Service Cloud Integration LTAS $16,000 one time Oracle Service Cloud Customer Support LTAS $9,000/year LTAS Technologies Inc. - Page 1 Powered By Nar —by LTAS