Fremont City Council Meeting: 07/16/24 07:00 PM
3300 Capitol Avenue Div/Dept: Code Enforcement
Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5199) DOC ID: 5199
Updated: 7/11/2024 2:11 AM by Dina Lewis Page 1
SHORT TERM RENTAL – HOST COMPLIANCE MONITORING SERVICES - Authorize the City Manager or her designee to enter into a service agreement with Deckard Technologies, Inc. to provide short term rental host compliance monitoring services for a term ending June 30, 2029, in an amount not-to-exceed $138,700.
Contact Persons:
Name: David Wage David Persselin
Title: Code Enforcement Manager/Senior
Planner
Finance Director
Div/Dept: Code Enforcement Finance Department
Phone: 510-494-4447 510-494-4631
E-Mail: [email protected] [email protected]
Executive Summary: On December 12, 2023, the City Council introduced an ordinance to add Chapter 5.100 Short Term Rentals (STR Ordinance) to the Fremont Municipal Code. As part of implementation of the STR Ordinance, staff proposes to contract with a host compliance monitoring company who will assist with outreach to existing short term rental operators, STR permitting, and monitoring of STR activity to assist with enforcement. To accomplish this task, staff issued a Request for Proposals (RFP) seeking a qualified service provider. Staff recommends the City Council approve and authorize the City Manager or her designee to execute a five-year service agreement with Deckard Technologies to provide host compliance monitoring services in an amount not to exceed $138,700 over the term of the agreement.
BACKGROUND: The ability to implement and enforce regulations is a key consideration for any STR Ordinance. Tracking and identifying STRs can be challenging as can enforcement of reported violations. The City’s Code Enforcement Division will enforce the ordinance through the issuance of notices of violations and citations or other enforcement actions enabled by the STR Ordinance. It can be difficult or impossible for City staff to collect the evidence required to effectively enforce a STR ordinance without additional tools and assistance.
Many communities outsource portions of the STR regulation compliance monitoring and enforcement to host compliance companies, which specialize in the field and use technology to minimize the implementation and compliance resources required. Host compliance companies can efficiently monitor STR activity, identify non-compliant listings and provide City staff with documentation or evidence of non-compliance if enforcement is necessary.
DISCUSSION/ANALYSIS: In October 2023, the City released a Request for Proposals (RFP) for Host Compliance Monitoring services. Three firms submitted proposals. All firms were determined qualified, but Deckard Technologies was the top scorer and made the short list for additional inquiry. After a presentation from Deckard Technologies representatives that included a product demonstration and opportunity for questions and answers, staff found Deckard Technologies met security requirements, had a well-defined strategy for and extensive experience with STR outreach, permitting, monitoring, and a user-friendly Council Staff Report (ID # 5199) Meeting of July 16, 2024 Updated: 7/11/2024 2:11 AM by Dina Lewis Page 2
software system, and were the best qualified service provider. Staff checked Deckard Technologies’ references and received a uniformly positive response from other clients.
The following is a summary of services that would or could be provided as part of the contract with Deckard Technologies:
• Identify addresses of existing STR operators in the City; • Assist with public outreach to STR operators;
• Create a public portal for registering and renewing STR permits; • Create and maintain a private portal documenting STR activity for City staff to use ; • Provide staff with reports of documented STR Ordinance violations and evidence to support enforcement of non-compliant STR listings;
• 24/7 hotline for resident complaints (optional task); and • Transient Occupancy Tax (TOT) collection (optional task)
FISCAL IMPACT: Deckard Technologies’ service agreement would have a term ending June 30, 2029, and a not-to exceed amount of $138,700. The contract would be paid from the General Fund.
Staff is not proposing any new fees to obtain a STR permit at this time; however, staff intends to evaluate the program on an ongoing basis, including the costs associated with processing permits and administering the ordinance. Any future fees would require consideration and adoption by the City Council.
STRs are subject to the City’s TOT. The service contract includes an optional task of collecting TOT on the City’s behalf. Staff will evaluate if that function is best performed by Deckard Technologies or City Revenue Division staff.
ENVIRONMENTAL REVIEW: Environmental review is not required as the STR Ordinance and associated service agreement for host compliance monitoring services are not a project as described by California Environmental Quality Act (CEQA) Guideline Sections 15061(b)(3) and 15378(b). It can be seen with certainty that there is no possibility that authorization of this agreement will have a significant effect on the physical environment.
RECOMMENDATION: Authorize the City Manager or her designee to enter into a service agreement with Deckard Technologies, Inc. to provide host compliance monitoring services for a term ending June 30, 2029, in an amount not-to-exceed $138,700.