PRESENTER: Presenter
Carren Ridge, Accounting & Treasury Manager
Bryan Ruiz, Neighborhood Services Manager
Matthew Simmont, Planning Manager
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SUBJECT: Title
Approval of a contract with Deckard Technologies, Inc. for a short-term rental compliance software platform and automated licensing and tax remittance system.
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DEPARTMENT: Finance
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COUNCIL DISTRICTS IMPACTED: All
BACKGROUND INFORMATION:
The City of New Braunfels has experienced rapid growth in the short-term rental market. Since 2019, the City has contracted with GovOS (formerly LODGINGRevs) for hotel occupancy tax collections and short-term rental compliance. Beginning in FY 2022, City staff collectively determined that it was time to reevaluate the marketplace for these services in an effort to find a more comprehensive software solution, specifically as it relates to management of the short term property identification, notification, permitting and ultimately tax remittance.
In June of 2023, a team of staff from Finance, Planning, Code Compliance, and IT departments reviewed proposals and demos from compliance software solutions and agreed that Deckard Technologies, RentalScape, is the best solution for the City’s short-term rental compliance needs.
RentalScape would support both the City and the rental property owners. RentalScape staff are property compliance experts that will support the City’s needs to develop permit/registration compliance and tax remittance solutions. Deckard designs a customized compliance solution around the City’s requirements that can be tailored to current and future requirements, ordinances, and permitting/license processing. RentalScape actively monitors permit status and STR listings daily, flagging violations as they occur. RentalScape also provides an online complaint form that will alert Code Compliance through the platform, as well as a 24/7 hotline that will dispatch complaint calls to responsible parties.
The City is seeking to enter an annual contract for a cost not-to-exceed $62,750 for the first year. The first year includes a required one-time implementation fee of $7,500 and $7,000 outreach campaign to help inform property owners of the new software solution and encourage them to become compliant. The contract shall be automatically renewed thereafter for additional periods of one year.
ISSUE:
Strategic Priorities: Maintain fiscal stability of City Operations, Ensure sustainable quality development.
FISCAL IMPACT:
Funding to support these services will come from the 35% City portion of the hotel occupancy taxes collected. There are sufficient funds available from that allocation to support the recurring cost of this contract.
Recommendation
STAFF ANALYSIS:
Staff recommends approval of a contract with Deckard Technologies for a short-term rental compliance and automated licensing and tax remittance system.