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Home My WebLink AboutC32281 - Prof Svc Agmt - Vac Rntal Cmplnce � CITY OF PALM DESERT �'� �� FINANCE DEPARTMENT STAFF REPORT REQUEST: APPROVAL OF CONTRACT NO. C 32281 , A PROFESSIONAL SERVICES AGREEMENT WITH VACATION RENTAL COMPLIANCE IN THE AMOUNT NOT-TO-EXCEED $24,000 FOR CONTINUATION OF A CONTRACTED PROGRAM TO IDENTIFY AND BRING INTO COMPLIANCE PALM DESERT HOMEOWNERS NOT CURRENTLY COMPLYING WITH PALM DESERT MUNICIPAL CODE SECTION 3.28.020 —TRANSIENT OCCUPANCY TAX (TOT) AND SECTION 5.10 — SHORT TERM RENTALS SUBMITTED BY: Paul S. Gibson, Finance Director DATE: September 26, 2013 CONTENTS: Contact No. C32281 - Professional Services Agreement Recommendation By Minute motion, that the City Council approve Contract No. C32281 with Vacation Rental Compliance in an amount not to exceed $24,000 to identify and register non-compliant short-term rental properties in Palm Desert. Backqround On March 8, 2012, Council adopted Ordinance No. 1236 amending Palm Desert Municipal Code Chapter 3.28.020 and adding Chapter 5.10 relative to Transient Occupancy Tax and short-term rentals respectively. A professional services agreement received Council's approval to provide the City with services to identify and bring into compliance unlicensed short-term rentals. The consultant fulfilled the terms of the agreement by: • Investigating ongoing short-term rental activity on various websites to identify unregistered short-term rental properties; • Designing a monitoring and licensing program for City requirements that will be part of the new Short-term Rental Ordinance; • Contacting unregistered short-term rental property owners; and • Educating the community about the new Short-term Rental Ordinance. As of July 1, 2013, 1,101 short-term rental permits have been processed. 756 of these permits were issued to property management companies, while the remaining 345 were issued to Contract No. C32281 Staff Report Approval of Contract with Vacation Rental Compliance September 26, 2013 Page 2 of 2 homeowners. Staff continues to receive applications on a regular basis. Transient Occupancy Tax (TOT) in the amount of$528,991.00 was collected for Fiscal Year 2012/2013, an increase of 50.7% over the previous fiscal year. To this end, staff wishes to renew the contract with the specialty consultant in an effort to complete the project. Online reservation sites and property owners are likely to be most active in the coming months as Palm Desert experiences its "high season". Staff feels that this is the most opportune time to engage a consultant to research and locate those property owners who may only operate and advertise for a few months out of the year. Conducting this project in the busy season will provide the City with the greatest opportunity to bring remaining property owners into compliance. Fiscal Impact Previously, staff reported that there are hundreds of unregistered short-term rental property owners not paying Transient Occupancy Tax (TOT). A great deal of progress was made during the first year of this program, and its continuation, combined with the renewal of a professional services contract, will assist staff with bringing the remaining unregistered short-term rentals into compliance with Section 3.28 Transient Occupancy Tax, which will further augment that revenue stream. As we have witnessed with the initial results of the program, bringing in TOT and short- term rental licenses will provide a financial benefit to the City that will more than offset the cost of this professional services agreement contract. Submitted by: Approval: ( aul S. Gibson, Finance Director J M. Wohlmuth, City Manager CITY COUNCILACTION APPROVED ✓ DF,NITD RECEIVED OTHER � MTETI G DATE � AYES: NOES: ABSENT: ��'�- . � A�3STAIN: V�:RIFIED BY: Original on File with City Clerk' ffice G:\Finance\Niamh Ortega\Staff Reports\Short term rentals\STR Consultant contract renewal 092613.docx Vacation Rental Compliance Proposal Ciry of Palm Desert August 1 S,2013 Vacation Rental Compliance is offering the City Palm Desert the following proposal for contract services to continue the implementation ofthe current short-term vacation rental compliance program. The scope of work outlined below is far one additional year, beginning October IS`2013 through June 305`2013. Scope of Work 1. Continue to identify new properties on VRBO and additional sites. 2. Continue to contact identified owners for registration. 3. Continue to inform Code Compliance of owners who refuse to register. 4. Prepare a monthly report on the progress of the program, which will be included with monthly billing. 5. Contact rental agencies who have not complied with the ordinance. TOTAL(40 HRS PER MONTH AT$60 PER HR) $2,400 PER MONTH x l0 MONTHS TOTAL CONTRACT$ 24,000.00 • One required expense wi(1 be the addition of minutes to already purchased disposable phone,at approximately$30. Cindy Gosselin PresidentlCEO Vacation Rental Compliance 72-877 Dinah Shore Drive,Suite 103 Rancho Mirage,CA 92270 (760J 668-5963 cgosselin@dc.rr.com 40680-1-J - 1 J 6037V- CERTIFICATE OF AUTOMOBILE LIABILITY INSURANCE Agent 0583 AFO A18 This certificate is issued for informational purposes only. It does not change the provisions of the policy shown below. State Farm Mutual Automobile Insurance Company , of Bloomington, Illinois certifies that liability coverage is in effect for the Named Insured and vehicle(s)as shown below: Name and Address of Insured: VACATION RENTAL COMPLAINCE LLC 5 TRAFALGAR RANCHO MIRAGE CA 92270-1664 Policy Number: 049 1870-E26-75E Effective Date of Policy: JUN 24 2013 Vehicle(s) Insured: 2013 BMW WBAUL7C50DVU09338 LIABILITY COVERAGE Bodily Injury Limits$1000000 Each Person, $1000000 Each Accident Property Damage Limit$1000000 Each Accident M Name and Address of Certificate Holder Name and Address of Agent � � � CITY OF PALM DESERT CHRIS ARISTO � ATTN: STEPHEN ARYAN 2409 HONOLULU AVE STE 5 0 73510 FRED WARING DR MQNTROSE, CA 91020-1871 N � PALM DESERT CA 92260-2578 � 0 � � > � � CANCELLATION - If the policy shown above is cancelled or otherwise terminated, State Farm Mutual Automobile � Insurance Company will endeavor to mail or deliver 10 days prior written notice to the Certificate Holder. State Farm ' Mutual Automobile Insurance Company, its agents and representatives shall not be liable for any failure to mail or deliver such notice. 6037V