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HomeMy WebLinkAbout10-07-19 City Commission Packet Materials - C5. Services Agreement with Host Compliance LLC for Short-Term Rental Compliance Page 1 Commission Memorandum REPORT TO: Mayor and City Commission FROM: Chris Saunders, Community Development Manager Martin Matsen, Community Development Director SUBJECT: Short Term Rental Compliance Software License MEETING DATE: October 7, 2019 AGENDA ITEM TYPE: Consent RECOMMENDATION: Authorize City Manager to execute the agreement with Host Compliance LLC, for a software license for shorter-term rental compliance monitoring and associated services.. BACKGROUND: The City Commission held a public hearing on August 14, 2017 and provisionally adopted Ordinance 1974, regulations for short term rentals (STRs). Final adoption of Ordinance 1974 occurred at a hearing on September 11, 2017 and a fee resolution was adopted at the same meeting. The City contracted with a software provider to support implementation of the newly adopted ordinance. The initial two-year term of that contract has expired. This item will renew the software license. The software provides much of the tracking and some of the basic enforcement work for the City. The software monitors websites where STRs are commonly listed on a nightly basis, and incorporates the information collected with data from the County Assessor’s property database to identify and verify property owner information. The software will: • List new vacation rental properties and those that do not currently hold an STR registration. • Provide a portal on the City’s website allowing applicants to register and renew the registration for their STRs online. • Provide a portal on the City’s website for submitting complaints. In addition, the software will generate compliance letters on City letterhead that inform STR owners they are not in compliance and ask them to register, as well as notices of violation of the 76 Page 2 Ordinance should such owners continue to not be in compliance. The software will also generate reminder letters of upcoming registration renewal dates. The software supports staff work on determining compliance. It does not replace the entire need for staff work in implementation of this program and standards. UNRESOLVED ISSUES: None known at this time. ALTERNATIVES: As suggested by the Commission. FISCAL EFFECTS: The annual license fees are $19,800. Attachment: Software license agreement 77 HOST COMPLIANCE, LLC Short-term Rental Compliance Monitoring and Associated Services last revised 01.25.19 www.hostcompliance.com 1 1037 NE 65th Street #81158 Tel: (754) 888-HOST (4678) Seattle, WA 98115 Host Compliance Services Agreement THIS SERVICES AGREEMENT (the “Agreement”) is entered into as of September 25, 2019 (the “Effective Date”), between Host Compliance LLC, (“Host Compliance”) and the City of Bozeman, Montana, with an address at 121 N. Rouse Avenue, Bozeman, MT 59715 (the “Customer”). This Agreement supersedes and replaces that certain STR Helper Software License and Professional Services Agreement by and between the Customer and Bear Cloud Software LLC dated September 25, 2017 (the “BCS Agreement”), and sets forth the terms and conditions under which Host Compliance agrees to license to Customer certain hosted software and provide all other services necessary for Customer’s productive use of such software (the “Services“) as further described in the attached Schedule 1. 1.0 Services. 1.1 Subscriptions. Subject to and conditioned on Customer’s payments pursuant to Section 4.0 of this Agreement, Host Compliance hereby grants Customer a non-exclusive, non-transferable right to access and use the Services during the term of this Agreement, in accordance with the terms and conditions of this Agreement. Unless otherwise provided in the attached Schedule 1, (a) Services are purchased as subscriptions, (b) additional service subscriptions may be added during a subscription term, with the pricing for such additional services, prorated for the portion of that subscription term remaining at the time the subscriptions are added, and (c) any added subscriptions will terminate on the same date as the underlying subscription. 1.2 Provision of Services. Customer and Customer’s end-users (“End Users”) may access and use the Services and any other Services that may be ordered by the Customer from time to time pursuant to a valid subscription in accordance with the terms of this Agreement. 1.3 Facilities and Data Processing. Host Compliance will use, at a minimum, industry standard technical and organizational security measures to store data provided by Customer, or obtained by Customer through the use of the Services (“Customer Data”). These measures are designed to protect the integrity of Customer Data and guard against unauthorized or unlawful access. 1.4 Modifications to the Services. Host Compliance may update the Services from time to time. If Host Compliance updates the Services in a manner that materially improves functionality, Host Compliance will inform the Customer. 2.0 Customer Obligations. 2.1 Customer Administration of the Services. Host Compliance’ responsibilities do not extend to internal management or administration of the Services. Customer is responsible for: (i) maintaining the confidentiality of Customer passwords and accounts; (ii) managing Customer access to Host Compliance system administrator accounts; and (iii) ensuring that such administrators’ use of the Services complies with this Agreement. 78 HOST COMPLIANCE, LLC Short-term Rental Compliance Monitoring and Associated Services last revised 01.25.19 www.hostcompliance.com 2 1037 NE 65th Street #81158 Tel: (754) 888-HOST (4678) Seattle, WA 98115 2.2 Compliance. Customer is responsible for use of the Services, including use of the Services by End Users and will comply with laws, regulations, and such provisions of this Agreement that are applicable to Customer’s use of the Services. 2.3 Unauthorized Use & Access. Customer will take reasonable steps to prevent unauthorized use of the Services and terminate any unauthorized use of or access to the Services. Customer will promptly notify Host Compliance of any unauthorized use of or access to the Services. 2.4 Restricted Uses. Customer will not and will ensure that its End Users do not: (i) sell, resell, or lease the Services; (ii) reverse engineer or attempt to reverse engineer the Services, nor assist anyone else to do so; or (iii) use the Services in any way that infringes, misappropriates or otherwise violates any intellectual property right or other right of any person, or that violates any applicable law. 2.5 Third Party Requests. 2.5.1 “Third Party Request” means a request from a third party for records relating to Customer’s or an End User’s use of the Services including information regarding an End User. Third Party Requests may include valid search warrants, court orders, or subpoenas, or any other request for which there is written consent from End Users permitting a disclosure. 2.5.2 Customer is responsible for responding to Third Party Requests via its own access to information policies. Customer will seek to obtain information required to respond to Third Party Requests and will contact Host Compliance only if it cannot obtain such information despite diligent efforts. 2.5.3 If Host Compliance receives a Third Party Request, Host Compliance will make reasonable efforts, to the extent allowed by law and by the terms of the Third Party Request, to: (A) promptly notify Customer of Host Compliance’s receipt of a Third Party Request; (B) comply with Customer’s reasonable requests regarding efforts to oppose a Third Party Request; and (C) provide Customer with information or tools required for Customer to respond to the Third Party Request (if Customer is otherwise unable to obtain the information). If Customer fails to promptly respond to any Third Party Request, then Host Compliance may, but will not be obligated to do so. 2.5.4 If Customer receives a Third Party Request for access to the Services, or descriptions, drawings, images or videos of the Services’ user interface, Customer will make reasonable efforts, to the extent allowed by law and by the terms of the Third Party Request, to: (A) promptly notify Host Compliance of Customer’s receipt of such Third Party Request; (B) comply with Host Compliance’s reasonable requests regarding efforts to oppose a Third Party Request; and (C) provide Host Compliance with information required for Host Compliance to respond to the Third Party Request. If Host Compliance fails to promptly respond to any Third Party Request, then Customer may, but will not be obligated to do so. 3.0 Intellectual Property Rights; Confidentiality 3.1 Reservation of Rights. Except as expressly set forth herein, this Agreement does not grant (i) Host Compliance any intellectual Property Rights (as defined below) in the Customer Data or (ii) Customer 79 HOST COMPLIANCE, LLC Short-term Rental Compliance Monitoring and Associated Services last revised 01.25.19 www.hostcompliance.com 3 1037 NE 65th Street #81158 Tel: (754) 888-HOST (4678) Seattle, WA 98115 any Intellectual Property Rights in the Services, any other products or offerings of Host Compliance, Host Compliance trademarks and brand features, or any improvements, modifications or derivative works of any of the foregoing. Notwithstanding the foregoing, while Customer Data and Services may include some Publicly Available Data (as defined as below), neither Customer nor Host Compliance make any proprietary claim to Publicly Available Data. “Intellectual Property Rights” means current and future worldwide rights under patents, copyright, trade secret, trademark, moral rights and other similar rights. “Publicly Available Data” means data, material, and information collected from publicly available sources in the performance of this Agreement, but specifically excluding Services. 3.2 Suggestions. Host Compliance may, at its discretion and for any purpose, use, modify, and incorporate into its products and services, and license and sub-license, any feedback, comments, or suggestions Customer or End Users send Host Compliance or post in Host Compliance’s online forums without any obligation to Customer. 3.3 Confidential Information. Customer understands and agrees that it will not reveal, publish or otherwise disclose to any person, firm or corporation, without written authorization of Host Compliance, or except as required by law (including Montana’s public records laws), any Confidential Information of Host Compliance, including without limitation any trade secrets, confidential knowledge, data or other proprietary information relating to the Services. “Confidential Information” means all information, written or oral, relating to the business, operations, services, facilities, processes, methodology, technologies, intellectual property, research and development, customers, strategy or other confidential or proprietary materials of Host Compliance. 3.4 Consent to use Customer Data and Marks. Customer hereby irrevocably grants all such rights and permissions in or relating to Customer Data to Host Compliance: (i) to perform the Services; (ii) to enforce this Agreement and exercise Host Compliance rights hereunder; and (iii) to use for any lawful purpose. Customer hereby grants to Host Compliance a license to use, reproduce and display Customer's name and logos in connection with: (i) Host Compliance performance of its obligations hereunder; (ii) include Customer's name and logos in its lists of Host Compliance current or former customers, and (ii) with Customer’s prior consent, for promotional and marketing purposes such as developing promotional press releases, case studies, and reports. 3.5 Validated Data. In the course of providing the Services, Host Compliance performs significant work validating and confirming various data sets including, without limitation, postal addresses, property owner information, and listing de-duplication (“Validated Data”). Validated Data may include data otherwise classified as Customer Data, Services, or Publicly Available Data. Notwithstanding any provision to the contrary in this Agreement, Customer is prohibited from disclosing Validated Data to a competitor of Host Compliance during the term of this Agreement and for a period of one (1) year thereafter. 4.0 Fees & Payment. 4.1 Fees. 80 HOST COMPLIANCE, LLC Short-term Rental Compliance Monitoring and Associated Services last revised 01.25.19 www.hostcompliance.com 4 1037 NE 65th Street #81158 Tel: (754) 888-HOST (4678) Seattle, WA 98115 4.1.1 Customer will pay Host Compliance for all applicable fees upfront annually, as set forth in Schedule A. 4.1.2 Customer will pay any amounts related to the Services as per payment terms detailed on the applicable invoice. Unless otherwise indicated, all dollar amounts referred to in the Agreement are in U.S. funds. 4.2 Taxes. Customer is responsible for all taxes. Host Compliance will charge tax when required to do so. If Customer is required by law to withhold any taxes, Customer must provide Host Compliance with an official tax receipt or other appropriate documentation. 4.3 Purchase Orders. If Customer requires the use of a purchase order or purchase order number, Customer (i) must provide the purchase number at the time of purchase and (ii) agrees that any terms and conditions on a Customer purchase order will not apply to this Agreement or the Services provided hereunder and are null and void. 5.0 Term & Termination. 5.1 Term. The initial term of this Agreement shall be one year commencing on the Effective Date, which shall automatically renew for a further period of one year upon each expiry of the then current term, unless either party provides written notice to the other party of its intention not to renew at least 45 days prior to the end of the then current term. That said, the time period until the earlier of (a) the 6- month anniversary of the Effective Date, or (b) the start date of Customer’s systematic or mass outreach activities utilizing the data obtained through the Services (traditional mail, electronic mail, and/or telephone campaigns), or (c) termination by Host Compliance in our sole discretion, shall be considered a trial period (“Trial Period”). 5.2 Termination for Convenience. If, for any reason during the Trial Period, Customer is dissatisfied with the Services, Customer may terminate the Subscription and all funds paid under this Agreement will be refunded and future commitments waived. 5.3 Effects of Termination for Convenience. If this Agreement is terminated by Customer in accordance with Section 5.2 (Termination for Convenience): (i) the rights granted by Host Compliance to Customer will cease immediately and Customer will no longer have the right to utilize the data obtained through the use of the Services for outreach (including traditional mail, electronic mail, and/or telephone); and (ii) after a reasonable period of time, Host Compliance may delete any Customer Data relating to Customer’s account. The following sections will survive expiration or termination of this Agreement: 2.5 (Third Party Requests), 3.0 (Intellectual Property Rights; Confidentiality), 4.0 (Fees & Payments), 5.2 (Termination for Convenience), 5.3 (Effects of Termination for Convenience), 6.0 (Indemnification), 7.0 (Exclusion of Warranties; Limitation of Liability), and 8.0 (Miscellaneous). 5.4 Termination for Breach: Following the Trial Period, a party may terminate this Agreement for cause upon 45 days written notice to the other party of a material breach if such breach remains uncured at the expiration of such period. In addition, Host Compliance may terminate this Agreement, effective on written notice to Customer, if Customer fails to pay any amount when due hereunder, and such failure continues more than 10 days after Host Compliance’s delivery of written notice hereof. 81 HOST COMPLIANCE, LLC Short-term Rental Compliance Monitoring and Associated Services last revised 01.25.19 www.hostcompliance.com 5 1037 NE 65th Street #81158 Tel: (754) 888-HOST (4678) Seattle, WA 98115 5.5 Refund or Payment upon Termination for Breach. If this Agreement is terminated by Customer in accordance with Section 5.4 (Termination for Breach), Host Compliance will refund Customer any prepaid fees covering the remainder of the term of all Subscriptions after the effective date of termination. If this Agreement is terminated by Host Compliance in accordance with Section 5.4 (Termination for Breach), Customer will pay any unpaid fees covering the remainder of the term of the Agreement. In no event will Customer’s termination after the first 6 months relieve Customer of its obligation to pay any fees payable to Host Compliance for the period prior to the effective date of termination. 5.6 Effects of Termination for Breach. If this Agreement is terminated in accordance with Section 5.4 (Termination for Breach): (i) the rights granted by Host Compliance to Customer will cease immediately (except as set forth in this section); (ii) Host Compliance may provide Customer access to its account at then-current fees so the Customer may export its Customer Data; and (iii) after a reasonable period of time, Host Compliance may delete any Customer Data relating to Customer’s account. The following sections will survive expiration or termination of this Agreement: 2.5 (Third Party Requests), 3.0 (Intellectual Property Rights; Confidentiality), 4.0 (Fees & Payments), 5.5 (Refund or Payment upon Termination for Breach), 5.6 (Effects of Termination for Breach), 6.0 (Indemnification), 7.0 (Exclusion of Warranties; Limitation of Liability), and 8.0 (Miscellaneous). 6.0 Indemnification and Insurance. 6.1 By Host Compliance. Host Compliance will indemnify, defend and hold harmless Customer from and against all liabilities, damages, and costs (including settlement costs and reasonable attorney’s fees) arising out of any claim by a third party against Customer to the extent based on (i) allegations that Host Compliance’ technology used to provide the Services to the Customer infringes or misappropriates any copyright, trade secret, patent or trademark right of the third party; or (ii) disclosure of personally identifiable information or other confidential Customer Data caused by the act or omission of Host Compliance or any of its agents, subcontractors, or employees, provided that to the extent the Customer has any role in such disclosure, the apportionment of liability shall be shared between the parties based upon the comparative degree of each party’s negligence . Host Compliance’s indemnity obligations under this section shall be without regard to and without any right to contribution from any insurance maintained by the City. 6.2 In no event will Host Compliance have any obligations or liability under this section arising from: (i) use of any Services in a modified form or in combination with materials not furnished by Host Compliance and (ii) any content, information, or data provided by Customers, End Users, or other third parties. 6.3 Possible Infringement. If Host Compliance believes the Services infringe or may be alleged to infringe a third party’s Intellectual Property Rights, then Host Compliance may (i) obtain the right for Customer, at Host Compliance’ expense, to continue using the Services; (ii) provide a non-infringing functionally equivalent replacement for the Services; or (iii) modify the Services so that they no longer infringe. If Host Compliance does not believe the options described in this section are reasonable then Host Compliance may suspend or terminate this Agreement and/or Customer’s use of the affected Services 82 HOST COMPLIANCE, LLC Short-term Rental Compliance Monitoring and Associated Services last revised 01.25.19 www.hostcompliance.com 6 1037 NE 65th Street #81158 Tel: (754) 888-HOST (4678) Seattle, WA 98115 with no further liability or obligation to the Customer other than the obligation to provide the Customer with a pro-rata refund of pre-paid fees for the affected portion of the Services. 6.4 General. The party seeking indemnification will promptly notify the other party of the claim and cooperate with the other party in defending the claim. The indemnifying party will have full control and authority over the defense, except that: (i) any settlement requiring the party seeking indemnification to admit liability requires prior written consent, not to be unreasonably withheld or delayed and (ii) the other party may join in the defense with its own counsel at its own expense. The indemnities above are Host Compliance’ and Customer’s only remedy under this Agreement for violation by the other party of a third party’s Intellectual Property Rights. 6.5 Insurance. Host Compliance shall at Host Compliance’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by Host Compliance in this section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by Host Compliance in this section. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City and Host Compliance shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows: • Workers’ Compensation – statutory; • Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; and • Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate. The above amounts shall be exclusive of defense costs. The City of Bozeman, its officers, agents, and employees, shall be endorsed as an additional or named insured on a primary non-contributory basis on the Commercial General Liability policy. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non-renewal. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. Contractor shall notify City within five (5) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. 7.0 EXCLUSION OF WARRANTIES; LIMITATION OF LIABILITY. 7.1 EXCLUSION OF WARRANTIES. EXCEPT AS EXPLICITLY SET FORTH IN THIS AGREEMENT, HOST COMPLIANCE MAKES NO OTHER REPRESENTATION, WARRANTY OR CONDITION, EXPRESS OR IMPLIED, AND EXPRESSLY EXCLUDES ALL IMPLIED OR STATUTORY WARRANTIES OR CONDITIONS OF MERCHANTABILITY, MERCHANTABLE QUALITY, DURABILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND THOSE ARISING BY STATUTE OR OTHERWISE IN LAW OR FROM A COURSE OF DEALING OR USAGE OF TRADE WITH RESPECT TO THE SERVICES. HOST COMPLIANCE DOES NOT MAKE ANY 83 HOST COMPLIANCE, LLC Short-term Rental Compliance Monitoring and Associated Services last revised 01.25.19 www.hostcompliance.com 7 1037 NE 65th Street #81158 Tel: (754) 888-HOST (4678) Seattle, WA 98115 REPRESENTATIONS OR WARRANTIES OF ANY KIND TO CLIENT WITH RESPECT TO ANY THIRD PARTY SOFTWARE FORMING PART OF THE SERVICES 7.2 LIMITATION ON INDIRECT LIABILITY. TO THE FULLEST EXTENT PERMITTED BY LAW, EXCEPT FOR HOST COMPLIANCE’S INDEMNIFICATION OBLIGATIONS HEREUNDER, NEITHER CUSTOMER NOR HOST COMPLIANCE AND ITS AFFILIATES, SUPPLIERS, AND DISTRIBUTORS WILL BE LIABLE UNDER THIS AGREEMENT FOR (I) INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES, OR (II) LOSS OF USE, BUSINESS, REVENUE, OR PROFITS (IN EACH CASE WHETHER DIRECT OR INDIRECT), EVEN IF THE PARTY KNEW OR SHOULD HAVE KNOWN THAT SUCH DAMAGES WERE POSSIBLE AND EVEN IF A REMEDY FAILS OF ITS ESSENTIAL PURPOSE. 7.3 LIMITATION ON AMOUNT OF LIABILITY. FOR OTHER THAN HOST COMPLIANCE’S INDEMNIFICATION OBLIGATIONS UNDER THIS AGREEMENT, TO THE FULLEST EXTENT PERMITTED BY LAW, HOST COMPLIANCE’S AGGREGATE LIABILITY UNDER THIS AGREEMENT WILL NOT EXCEED THE AMOUNT PAID BY CUSTOMER TO HOST COMPLIANCE HEREUNDER DURING THE TWELVE MONTHS PRIOR TO THE EVENT GIVING RISE TO LIABILITY. 8.0 Miscellaneous. 8.1 Terms Modification. Host Compliance may wish to revise this Agreement from time to time. If a revision, in Host Compliance’ sole discretion, is material, Host Compliance will notify Customer and possibly request that an Amendment to this Agreement be agreed upon and signed. If Customer does not agree to the revised Agreement terms, Customer may terminate the Services within 30 days of receiving notice of the change. 8.2 Entire Agreement. The Agreement including the invoice and order form provided by Host Compliance, constitutes the entire agreement between Customer and Host Compliance with respect to the subject matter of this Agreement and supersedes and replaces any prior or contemporaneous understandings and agreements, whether written or oral, with respect to the subject matter of this Agreement. If there is a conflict between the documents that make up this Agreement, the documents will control in the following order: this Agreement, then the invoice, then the order form. 8.3 Governing Law. This Agreement will in all respects be governed exclusively by and construed in accordance with the laws of the State of Montana. 8.4 Severability. Unenforceable provisions will be modified to reflect the parties’ intention and only to the extent necessary to make them enforceable, and the remaining provisions of the Agreement will remain in full effect. 8.5 Waiver or Delay. Any express waiver or failure to exercise promptly any right under the Agreement will not create a continuing waiver or any expectation of non-enforcement. 8.6 Force Majeure. Except for payment obligations, neither Host Compliance nor Customer will be liable for inadequate performance to the extent caused by a condition that was beyond the party’s reasonable control (for example, natural disaster, act of war or terrorism, riot, labor condition, governmental action and Internet disturbance). 84 HOST COMPLIANCE, LLC Short-term Rental Compliance Monitoring and Associated Services last revised 01.25.19 www.hostcompliance.com 8 1037 NE 65th Street #81158 Tel: (754) 888-HOST (4678) Seattle, WA 98115 8.7 Procurement Piggybacking. Host Compliance agrees to reasonably participate in any “piggybacking” programs pertinent to local government, and Customer agrees to reasonably allow any local government to “piggyback” off of Customer’s efforts leading to this Agreement. 8.8 Independent Contractor. It is specifically understood and agreed that in the making and performance of this Agreement, Host Compliance is an independent contractor and is not and shall not be construed to be an employee of Customer. 8.9 Nondiscrimination. Host Compliance agrees that all hiring by Host Compliance of persons performing this Agreement shall be on the basis of merit and qualifications. Host Compliance will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti- discrimination laws, regulations, and contracts. Host Compliance will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. Host Compliance shall require these nondiscrimination terms of its subcontractors providing services under this Agreement. 85 HOST COMPLIANCE, LLC Short-term Rental Compliance Monitoring and Associated Services last revised 01.25.19 www.hostcompliance.com 9 1037 NE 65th Street #81158 Tel: (754) 888-HOST (4678) Seattle, WA 98115 IN WITNESS WHEREOF Host Compliance and the Customer have executed this Agreement as of the Effective Date. City of Bozeman by its authorized signatory: Name: Title: Date: Billing Contact: Billing Email: Billing Direct Phone: Host Compliance LLC by its authorized signatory: Name: Ulrik Binzer Title: Chief Executive Officer Date: 9/20/2019 Account Executive: Johannah Richards Email: johannah.richards@hostcompliance.com Phone: 415-423-1373 86 HOST COMPLIANCE, LLC Short-term Rental Compliance Monitoring and Associated Services last revised 01.25.19 www.hostcompliance.com 10 1037 NE 65th Street #81158 Tel: (754) 888-HOST (4678) Seattle, WA 98115 Schedule 1 Scope of Services: Mobile Enabled Web Based Registration The development and hosting of an electronic web-based short-term rental registration forms1. The capabilities of the forms include: • 24/7 availability • Mobile adaptive design • The ability to validate inputs whenever possible as to minimize data-entry errors • Electronic signature capabilities • Electronic credit and debit card payment capabilities through our payment processing partner Stripe, Inc. • Ability to collect supporting documents (if required) • SSL encryption • Data available through app.hostcompliance.com • Data downloadable into csv format via app.hostcompliance.com Annual Subscription Service Price $5465 / yr Address Identification Monthly email-delivered report and live web-delivered dashboard with complete address information and screenshots of all identifiable STRs in Bozeman’s jurisdiction. For the sake of clarity, please note that this is an upgrade from the 500 listing limitation under the BCS Agreement. • Up-to-date list of jurisdiction's active STR listings • High resolution screenshots of all active listings (captured weekly) • Full address and contact information for all identifiable STRs in jurisdiction • All available listing and contact information for non-identifiable STRs in jurisdiction Annual Subscription Service Price $8307 / yr 1 When a payment is collected, the variable customary card and ACH processing fees charged by Stripe, Inc. are passed onto paying constituents as a convenience fee in our standard configuration, nor does the system process payments of < $0.50. Please note that when ACH transactions fail, the constituent will be charged a $4 fee, and when refunding a payment, the associated fees are not returned. 87 HOST COMPLIANCE, LLC Short-term Rental Compliance Monitoring and Associated Services last revised 01.25.19 www.hostcompliance.com 11 1037 NE 65th Street #81158 Tel: (754) 888-HOST (4678) Seattle, WA 98115 Compliance Monitoring Ongoing monitoring of the short-term rentals operating in Bozeman’s jurisdiction for zoning and permit compliance coupled with letters for outreach to non-compliant short-term rental property owners (using Bozeman’s form letters) ● Ongoing monitoring of STRs for zoning and permit compliance ● Letters for outreach to unpermitted and/or illegal short-term rental operators (using jurisdiction's form letters) ● Monthly staff report on jurisdiction's zoning and permit compliance: ● Up-to-date list of STRs operating illegally or without the proper permits ● Full case history for non-compliant listings Annual Subscription Service Price with added mailing functionality $3349 / yr 24/7 Short-term Rental Hotline 24/7 staffed telephone and online hotline for neighbors to report non-emergency problems related to STR properties: ● Incidents can be reported by phone or online ● Full documentation of all reported incidents ● Digital recordings and written transcripts of all calls ● Ability for neighbors to include photos, video footage and sound recordings to document complaints ● Real-time outreach to owners of problem properties (whenever owner’s contact info is known) ● Weekly staff reports containing: ○ The # and types of reported incidents ○ List of properties for which incidents have been reported ● Custom reports and analysis of hotline related activities Annual Subscription Service Price $2679 / yr Total Annual Subscription Service Price $19,800 / yr 88