AMENDMENT TO THE AGREEMENT WITH
THE CITY OF MURRIETA AND CONSULTANT
Amendment No.: Third Amendment
Original Agreement Title (“Agreement”): AGREEMENT BETWEEN THE CITY OF MURRIETA AND HOST COMPLIANCE LLC Agreement Effective Date: October 20, 2020
Agreement Termination Date: November 3, 2028
Consultant Name: Granicus LLC (successor to HOST COMPLIANCE LLC) Brief Description of Scope of Services (“Services”):
Granicus LLC shall work in partnership with the City to provide professional support services in the implementation and ongoing administration of short-term vacation rental data collection, inventory, permitting, and enforcement, including but not limited to, the following tasks, which are described as follows:
a. Create and maintain a database of short-term vacation rental units, b. Register short-term vacation rental units,
c. Perform outreach,
d. Manage the payment of all taxes and fees,
e. Assist the City with all enforcement activities,
f. Coordinate with City staff.
Task Details/Deliverables:
a. Create and maintain a database of short-term vacation rental units:
1) Identify the addresses of the properties in the City listed for short-term rentals from all applicable short-term rental websites; 2) Create and maintain a comprehensive inventory of all STVRs and their hosts in the City from all applicable short-term vacation rental websites and other applicable sources. The inventory shall include, but is not limited to, the listing URL, location, host name, property type, room type, maximum occupancy, number of bedrooms, rental frequency, rental rate, minimum/maximum stay, Transient Occupancy Tax (TOT) payments, operator business license status/payment, STVR application status/payment, and identification when the 300 unit citywide cap is reached; 3) Be able to account for buffer limitations with processing/issuance of a permit; 4) Regularly monitor STVR listings and update data accordingly; 5) Create a database with the data that can be exported and analyzed in GIS, CSV, Excel or other program formats or platforms, as specified by the City; 6) Database should be sufficient for the City to use for outreach, monitoring and compliance purposes for STVRs; 7) De-duplicate listings of STVRs across multiple sites;
b. Register short-term vacation rental units:
1) Process applications for short-term vacation rentals units via City website through first-come first-serve basis, or any other process approved by the City; 2) Review applications and verify compliance with all applicable codes, requirements and statutes; 3) Maintain database of all registered STVR units operating in the City; 4) Provide billing, remit information to all hosts, and coordinate with City’s Finance Department for related financial information on rental units;
c. Perform Outreach:
1) Notify all hosts operating in the City of Murrieta to register and obtain all required authorizations and permits, pay all required taxes and fees; 2) Perform community outreach regarding the STVR program, program requirements, and hot to register complaints; 3) Develop outreach materials in advance and submit to the City for approval before sharing with the community;
d. Manage the payment of all taxes and fees:
1) Collect, process and submit electronically to the City of Murrieta all taxes and fees; 2) Pursue delinquent payments from hosts;
3) Assist with audits as needed;
4) Provide reports to City’s Finance Department for account reconciliation purposes; 5) Provide monthly statistical reports on the volume, amounts, quantities and payment data for STVR units to the City; 6) Other payment management services, as needed;
e. Assist the City with all code enforcement activities:
1) Monitor STVRs for compliance with City codes, requirements and statutes. Prepare and submit weekly to the City a master list of short-term vacation rental units known or suspected to be operating in violation of City codes, requirements, or statutes. Track those STVRs that have been suspended or revoked to ensure they are not re-advertised or used during the prohibition period until permitted or reinstated; 2) Receive, document, and immediately report to the City in relation to STVR units (Code Enforcement and /or Police Department) and provide a weekly summary of all active complaints; 3) Provide staffing for a 24-hour phone number/hotline to register complaints and for relaying/documenting that information to the City’s Code Enforcement and/or Police Department; 4) Provide the ability to allow complainants to easily share evidence of alleged STVR ordinance violations or other violations (i.e. video, photo and audio evidence) through technology methods; 5) Notify and track non-registered, unpermitted and/or non-compliant STVR property owners; 6) Assist with other enforcement activities, as needed;
f. Coordinate with City staff:
1) Provide additional reports, metrics, analysis, documentation, and access to online data related to STVRs as required by the City; 2) Participate in meetings (virtual as well) or conference calls with City staff on a periodic basis.
Many of these tasks/deliverables will be accomplished through their various platforms/modules:
Address Identification solution forms the basis of the Granicus platform. It scans over 60 STVR platforms for listings, de-duplicates them, and leverages machine learning and a team of over 200 analysts to identify the addresses of listings.
Mobile Permitting and Tax Collection module provides non-compliant STVR hosts to become compliant with applicable taxes and fees. All hosts in the City of Murrieta can use this platform to remit their Transient Occupancy Tax.
Compliance Monitoring functionality enables monitoring for zoning and permitting compliance, captures detailed information for more advanced compliance monitoring by any number of parameters requested by the City. It also streamlines the mailing and recording of outreach letters to non-compliant STVRs.
Rental Activity Monitoring module leverages industry-leading algorithms and artificial intelligence to help with identifying and reaching out to hosts who fail to report or underreport taxes.
24/7 Hotline provides support for STVR-compliant management for the collection of evidence.
This Amendment to the Agreement, made effective on the date executed by the City by and between the City of Murrieta, a Municipal Corporation, duly organized and existing under and by virtue of the laws of the State of California ("City"), and the above referenced Consultant with reference to the following facts which are acknowledged by each party as true and correct:
RECITALS
Whereas, City is a general law city, formed and existing pursuant to the provisions of the California Government Code.
Whereas, City and Consultant entered into an Agreement on the Effective Date set forth above for the Services.
Whereas, City and Consultant wish to amend the Agreement as further set forth herein.
Whereas, the Agreement was previously modified by the following prior amendments:
On October 14, 2021, CITY and Host Compliance LLC, entered into a First Amendment to the Agreement, whereby the term was extended through November 3, 2022, and a decrease in the Scope of Work effectively decreased the annual not-to-exceed compensation to $16,623.48, thereby increasing the total not-to-exceed Contract Sum to $35,255.98. On October 18, 2022, CITY and GRANICUS LLC (as the successor to Host Compliance LLC) entered into a Second Amendment to the Agreement for an additional three-year term, whereby the term was extended through November 3, 2025, and the annual not-to-exceed compensation was decreased to $11,709.32, thereby increasing the total not-to-exceed Contract Sum to $70,383.94.
AMENDMENT
NOW, THEREFORE, it is agreed by and between the parties as follows:
1. The above recitals are true and correct.
2. The following terms of the Agreement are hereby amended to read as follows:
Section 3.1 of the Agreement is hereby amended to read in its entirety as follows:
“The services called for under this Agreement shall be provided by CONSULTANT during the period commencing upon execution of this Agreement and shall continue through November 3, 2028.”
3. Compensation for the period of this Amendment shall be in accordance with the updated Granicus Proposal attached hereto and incorporated herein as Exhibit “A”. Accordingly, compensation for the period November 4, 2025, until November 3, 2026, shall be in an annual amount not-to-exceed $12,880.11. Compensation for the period November 4, 2026, until November 3, 2027, shall be in an annual amount not-to-exceed $14,168.13. Compensation for the period November 4, 2027, until November 3, 2028, shall be in an annual amount not-to-exceed $15,584.93.
4. The total not-to-exceed Contract Sum for the Agreement and all amendments shall be $113,017.11, as set forth in the table below.
Annual Not-to-Exceed Compensation
Original Agreement (October 20, 2020 – November 3, 2021) $18,632.50
First Amendment (November 4, 2021 – November 3, 2022)
$16,623.48
Second Amendment (November 4, 2022 – November 3, 2023)
$11,709.32
Second Amendment (November 4, 2023 – November 3, 2024)
$11,709.32
Second Amendment (November 4, 2024 – November 3, 2025)
$11,709.32
Third Amendment (November 4, 2025 – November 3, 2026)
$12,880.11
Third Amendment (November 4, 2026 – November 3, 2027)
$14,168.13
Third Amendment (November 4, 2027 – November 3, 2028)
$15,584.93
TOTAL NOT-TO-EXCEED CONTRACT SUM
$113,017.11
5. All other conditions of the Agreement shall continue in full force and effect.
IN WITNESS WHEREOF, the Parties hereto have executed this Amendment on the date and year first-above written.
CITY:
CITY OF MURRIETA, a California municipal corporation
By:
Justin Clifton, City Manager
ATTEST: Date:
Cristal McDonald, City Clerk
Date:
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
Tiffany Israel, City Attorney
Date:
CONSULTANT: GRANICUS LLC
Two corporate officer signatures required when Contractor is a corporation, with one signature required from each of the following groups: 1) Chairperson of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. (Cal. Corp. Code § 313.) Appropriate attestations shall be included as may be required by the bylaws, articles of incorporation or other rules or regulations applicable to Contractor’s business City.
By:
Name:
Title:
Date:
By:
Name:
Title:
Date:
EXHIBIT “A”
01375.0005 2022041.1 -14-