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HomeMy WebLinkAboutContract 57641-A1FORTWORTH Routing and Transmittal Slip FMS Department DOCUMENT TITLE: Deckard Technologies Inc Amendment - Short Term Rental Identification Services M&C DATE: TO: 1. Nicholas Del Paw 2. John Samford 3. Christopher Austria 4. Reggie Zeno 5. CM David Cooke im CPN CSO # INITIALS DOC# DATE OUT 07/10/2023 07/11 /2023 07/11 /2023 07/17/2023 7/3 / 12,o 2-3 DOCUMENTS FOR CITY MANAGER'S SIGNTURE: All documents received from any and all City Departments requesting City Manager's signature for approval MUST BE ROUTED TO THE APPROPRIATE ACM for approval first. Once the ACM has signed the routing slip, David will review and take the next steps. NEEDS TO BE NOTARIZED: ❑ Yes © No RUSH: ❑x Yes ❑ No SAME DAY: ❑ Yes ❑x No NEXT DAY: ❑ Yes El No ROUTING TO CSO: ❑ Yes ❑x No Action Required: ❑ As Requested ❑ For Your Information ExSignature/Routing and or Recording ❑ Comment ❑ File Return to: Please call Charissa Williams ❑ Attach Signature, Initial and Notary Tabs at ext. 8987 for pick up when completed. Thank you. CSC No. 57641-A1 AMENDMENT NO. 1 TO CITY OF FORT WORTH CONTRACT 57641 BETWEEN CITY OF FORT WORTH AND DECICARD TECHNOLOGIES INC. This First Amendment and First Renewal (the "Agreement") is entered into by and between the City of Fort Worth (hereafter "City"), a home rule municipality, with its principal place of business at 200 Texas Street, Fort Worth, Texas, and Deckard Technologies, Inc. hereafter "Vendor" a Delaware Corporation, City and Vendor shall be referred to individually as a Party and collectively as the Parties. WHEREAS, on or about June 2, 2022 the Parties entered into City Secretary Contract 57641 for Vendor to provide subscription to Rentalscape, a cloud -based software, and services related to identification, monitoring, and reporting of Short -Term Rental (STR) properties ("Original Agreement"); and WHEREAS, the Original Agreement provided the contract would be for a one (1) term with no renewal options; WHEREAS, City is currently seeking proposals to procure services to help the City manage the Short -Term Rental Registration Program; and WHEREAS, the Original Agreement expired on June 2, 2023 and the City has not completed its competitive procurement and no vendor has been awarded; WHEREAS, the Parties wish to amend the Original Agreement to allow the Original Agreement to extend the Initial Term for an additional three (3) months and for an additional amount not to exceed $7,500.00. NOW, THEREFORE, the Parties, acting herein by the through their duly authorized representatives, enter into the following agreement: 1. AMENDMENTS 1. Section 2 of the Original Agreement titled "Term" is hereby amended and restated in its entirety as follows: 2. Term. This term of this Agreement is for one (1) year, beginning on the date that this Agreement is executed ("Effective Date") and expires on September 1, 2023 ("Expiration Date"), unless terminated earlier in accordance with this Agreement ("Initial Term"). 2. Section 3 of the Original Agreement titled "Compensation", paragraph 3.1, is hereby amended and restated in its entirety as follows: 3.1 Total compensation under the Initial Term will not exceed Forty -Two Thousand Five Hundred Dollars and No Cents ($42,500.00). OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX 3. The Original Agreement is hereby amended by adding Exhibit D, which is attached to this Agreement. 2. ALL OTHER TERMS SHALL REMAIN THE SAME All other provisions of the Original Agreement which are not expressly amended herein shall remain in full force and effect. 3. ELECTRONIC SIGNATURE This Amendment and Renewal may be executed in multiple counterparts, each of which shall be an original and all of which shall constitute one and the same instrument. A facsimile copy or computer image, such as a PDF or tiff image, or a signature, shall be treated as and shall have the same effect as anoriginal. (signature pagefollows) IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiples. Executed effective as of the date signed by the Assistant City Manager below City: By: Name: David 6 ce Title: City M nager Date: 7131 12-oll-3-1 Deckard Technologies, Inc. By. 4 /) Name: Nicholas Del Pego Title: CEO Date. 7/10/2023 CITY OF FORT WORTH INTERNAL ROUTING PROCESS: Approval Recommended: /Ilk_ Reginald Zeno (Jul 17, 202310:37 CDT) By: Name: Reginald Zeno . Title: Director and Chief Financial Officer Approved as to Form and Legality: By: Name: Christopher Austria Title: Assistant City Attorney Contract Authorization: M&C: N/A Contract Compliance Manager: By signing I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. John Samford (Jul 11, 202312:44 CDT) By: Name: John Samford Title: Assistant Finance Director & City Treasurer City Secretary: By: Name: Jeannette Goodall Title: City Secretary b-- '12q b °� oa ?d4� nEXo5�4p OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX EXHIBIT D FORT WORTH. CITY OF FORT WORTH CHAPTER 252 EXEMPTION FORM Instructions: Fill out the entire form with detailed information. Once you have completed this form, provide it to the Purchasing attorney for review. The attorney will review the information you have provided to determine whether an exemption to Chapter 252's biding requirements is defensible. If you are printing this form to provide to Legal, please do not provide the Primer portion. Failure to provide sufficient information may result in follow up questions and cause a delay in the attorney's determination. Section 1: General Information Requesting Department: Name of Contract Manager: Department's Attorney: Item or Service sought: Services Goods: Service: Anticipated Amount: Vendor: Current/Prior Agreement for item/service: CSC or Purchase Order #: Amount: Projected M&C Date: Financial Management Services Kiphani Allen Taylor Paris Short -Term Rental Identification and Monitoring ❑x $7,500 Deckard Technologies, Inc. Yes 57641 $35,000 N/A ►002000 How will this item or service be used? To identify short-term rental properties to understand the scale and scope of rentals in the community. The service will qualify properties by type, including detailed information for the owner, listing platforms, booking frequency, rental rates, and zoning districts. The information will be used to identify `allowed' properties and request registration under the recent STR Registration Ordinance. Page 1 of 7 Has your department started a requisition or otherwise contacted the Purchasing Division related to obtaining this good/service? Yes ❑ No If yes, please provide requisition number or brief explanation of contact with Purchasing Division: Click or tap here to enter text, Section 2: Claimed Exemption and Justification (Other than sole source) NOTE - For a claimed sole -source exemption, only complete Section 3. Please indicate the non -sole -source exemption you believe applies to the purchase and provide information to support its applicability. Please refer to the Exemption Primer for detailed information about common exemptions: ❑ A procurement necessary to preserve or protect the public health or safety of the City of Fort Worth's residents; ❑ A procurement necessary because of unforeseen damage to public machinery, equipment, or other property; © A procurement for personal, professional, or planning services; ❑ A procurement for work that is performed and paid for by the day as the work progresses; ❑ A purchase of land or a right-of-way; ❑ Paving drainage, street widening, and other public improvements, or related matters, if at least one-third of the cost is to be paid by or through special assessments levied on property that will benefit from the improvements; ❑ A public improvement project, already in progress, authorized by the voters of the municipality, for which there is a deficiency of funds for completing the project in accordance with the plans and purposes authorized by the voters; ❑ A payment under a contract by which a developer participates in the construction of a public improvement as provided by Subchapter C, Chapter 212; ❑ Personal property sold: • at an auction by a state licensed auctioneer; • at a going out of business sale held in compliance with Subchapter F, Chapter 17, Business & Commerce Code; • by a political subdivision of this state, a state agency of this state, or an entity of the federal government; or Page 2 of 7 • under an interlocal contract for cooperative purchasing administered by a regional planning conunission established under Chapter 391; ❑ Services performed by blind or severely disabled persons; ❑ Goods purchased by a municipality for subsequent retail sale by the municipality; ❑ Electricity; or ❑ Advertising, other than legal notices. Please provide details and facts to explain why you believe the exemption applies to the purchase. You may also attach documentation to this form. Data mining services require specialized technology, training, skills, and experience. The process involves mining several public platforms, including — but not limited to — the appraisal district, STR listing sites, and other public domains to identify, refine, and consolidate property information to support the ongoing management of STRs with court-defensable property details and rental information. STR monitoring service is a specialty service offered by a limited number of firms. Deckard Technologies, Inc. has extensive experience in the data mining segment with data science and technology expertise. Their tools allow for the precise identification of properties with unique property listings where other providers provide approximate addresses, often duplicating property listings. Deckard is also able to track future bookings which supports the calculation of estimates for hotel tax for unregistered properties. Other providers can not provide this detail with accuracy. Deckard's position as the industry leader in data science is further supported by their relationships with several of their competitors, supplying the data mining services for these firms, including Azavar — our selected provider for full -service, STR monitoring and management. In addition, Deckard supports a client roster that includes several small to large Texas cities expanding to large, destination communities with large STR inventories such as Lake Tahoe (Placer County) Section 3: Claimed Sole -Source Exemption and Justification NOTE - For any non -sole -source exemption, complete Section 2. Please indicate the sole -source exemption you believe applies to the purchase and provide information to support its applicability. Please refer to the Exemption Primer for detailed information about common exemptions ❑ *A procurement of items that are available from only one source, including: • items that are available fiom only one source because of patents, copyrights, secret processes, or natural monopolies; • films, manuscripts, or books; • gas, water, and other utility services; • captive replacement parts or components for equipment; Page 3 of 7 books, papers, and other library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and management services provided by a nonprofit organization to a municipal museum, park, zoo, or other facility to which the organization has provided significant financial or other benefits; How did you determine that the item or service is only available from one source? Click or tap here to enter text. Attach screenshots and provide an explanation of any independent research you conducted, through internet searches, searching cooperatives, or discussions with others knowledgeable on the subject matter that corroborate that the item is available only from a single source. Click or tap here to enter text. Did you attach a sole source justification letter? ❑ Yes ❑ No Describe the uniqueness of the item or service (e.g. compatibility or patent issues, etc.). Click or tap here to enter text. Section 4: Attornev Determination With the facts provided by the department, is the use of the claimed exemption defensible if the City were to be challenged on this purchase? ®Yes []No. Was there anything attached to this form that was relied on in malting this determination? ®Yes []No. If yes, please explainTroposal from vendor detailing company experience, team, methodology and approach Was there anything not included on this form or attached hereto that was relied on in malting this determination? ❑Yes ®No. If yes, please explain:Click or tap here to enter text. Will the standard terms and conditions apply? ®Yes ❑No. Page 4 of 7 Will the contract require special terms? ❑ Yes ❑X No. Will the contract require review by the department attorney? ❑x Yes ❑No. Approved By: 6t/d Date: 6/22/2023 J emy Anato-Mensah / Jessika Williams Assistant City Attorney Page 5 of 7 i Rentalscape EXECUTIVE SUMMARY Rentalscape Short Term Rental ID & Monitoring Platform Deckard Technologies utilizes data science expertise to assist local governments with managing their compliance activity and enforcement, such as short-term rental (STR) properties. Our technology ensures that everyone is held accountable to play by the same set of rules, follow all guidelines and ordinances, and pay their fair share of fees and taxes. To accurately track activity within the City of Fort Worth, the Rentalscape platform identifies the exact address of the STR listings within the City limits, enabling accurate display of STR activity within the City and within community districts. Rentalscape groups listings and calculates statistics on a per -property basis. By mapping the exact location of properties, Rentalscape avoids double - counting activity. Knowing the exact location of STR properties enables compliance, enforcement, tax collection and complaint management activities. 4 1 ~. J +,�11111!/Ill. ll�' 1 if Ill�ll~ '= 6920 U+g St Fw Wo TX 76113 Q 51.394 ]3%� u.w. 53 .... n�M1DH.�. �IICVU4111N1 N[ill.lt /6111 �..n.orra.. . .. 5355 6215 a ki FIGURE 1: Rentalscape Property Details for 6920 Craig St, Fort Worth, TX i Rentalscape About Rentalscape Deckard's dashboard management platform for STR will discover, identify, and efficiently present all STIR activity in the City of Fort Worth, using unique technical capabilities such as its proprietary future booking detection software, automatic non- compliance recognition, industry -best address identification. Rentalscape is the only platform that shows upcoming rentals and bookings as they occur within 24 hours of the reservation being made. This allows Rentalscape users to reach out to owners and hosts who are unlawfully renting and address any issues relating to these future rentals long before guests arrive, thereby eliminating disturbances, neighbor complaints and other common issues that often arise from illegal rentals. Rentalscape maintains a database of every booking and stay made on all major platforms. Our system contains information dating back to late 2019 for every STR in the City of Fort Worth. All data can be viewed interactively on the Rentalscape portal with unlimited user access and downloaded on demand in Microsoft Excel format. Rentalscape dashboard map view shows the exact location of all STR activity, includes districts as defined by the City and displays individual property information and aggregate statistics on a per district basis. Rentalscape presents detailed STR activities including the precise address, owner information, booking history, availability and more. For each individual booking, the platform provides the actual date the reservation was made as well as the start and end date of each booking, ensuring that the City is able to distinguish back-to-back bookings. These insights are not possible to achieve by simply viewing the listings itself. Rentalscape also tracks hotel occupancy tax paid to the State of Texas for both short-term rentals and hotels. The system compares state and city tax remittance monthly to identify underpayment of City short-term rental and hotel tax. In Summary Deckard Technologies has extensive experience in the services described in the scope of services requested in this Request for Proposal. As your current vendor of short-term rental data, expanding these services to collecting short-term rental and hotel taxes and auditing within the City is very easily accomplished. And by implementing additional products and services (registration, tax, outreach), the City will achieve a complete end to end solution to manage short term rentals, that will easily improve compliance and tax collection. Our easy -to -use intuitive solutions and outreach campaigns increase compliance especially with those individuals that don't currently know the rules or find registration or tax payments too difficult. i Rentalscape COMPANY HISTORY AND OWNERSHIP ;�•a'� •SINCE 2006• Deckard Technologies, Inc. is a San Diego California -based, C Corporation - private company, Diego plus two international offices in Sydney, Australia and Medellin, Colombia. Deckard Technologies emerged in 2018 to help ensure compliance within the US real estate market for the public sector. Founder, Greg Rose, operated a 230 person R&D group at Qualcomm Communications before semi -retiring in 2013 to focus on social justice non -profits. He soon realized many inequities existed in various aspects of real estate..... thus the birth of Deckard Technologies. Originally, Deckard received two rounds of investment while developing the data infrastructure and product for Propertyscape - Deckard's offering that looks at property tax fairness, safety and recovery based on unpermitted (and hence unassessed) improvement, fraudulent homeowner exemptions. In late 2019, we learned that many many potential customers were telling us "We really need help with management of Short -Term Rentals!" Since much of the data we had already gathered was applicable to this problem too, and we looked at the existing products and were not impressed, we quickly created our market leading product, Rentalscape!! During the global pandemic, we arranged for further funding in order to retain our world class team and continued developing our products during the down time. Many businesses closed during this period, but Deckard came back stronger than ever. Today. Deckard Technologies has 98% customer retention, more than 130 customer jurisdictions, over $3M annual recurring revenue, and is expecting to continue to double or triple revenue annually while keeping expenses to only minor increases. We have adequate funding now and are pursuing a venture capital round to expand into other geographies and markets. i Rentalscape COMPANY EXPERIENCE With over 80 years of combined experience in the Data Mining Industry, the Deckard Team has successfully implemented over 130 Rentalscape platform and services across the U.S. since our inception in 2018. (See The Team below)....12 of which are in the State of Texas. Our customers range in size from small jurisdictions such as Nacogoches, TX to larger jurisdictions such as Galveston, TX. The majority of our customers have implemented the Rentalscape platform and ancillary products to help achieve better compliance and improve tax revenue. (See Attachments - Case Study Placer County). As your current vendor of Address Data for Short Term Rentals, Deckard has been providing service to the City of Ft. Worth since June 2022. We have worked closely with the City's staff to Identity and Monitor over 900 Short Term Rentals within your jurisdiction. We have enjoyed working with the City staff to generate reports specific to the City of Fort Worth that meet their reporting needs. Deckard is working with the City of Grapevine, TX who has only a set number of permitted properties allowed in their City. Thus our Rentalscape SAAS Platform helps staff to Identify and Monitor new activities from non -permitted Short -Term Rentals in their City. The City of Plano, TX recently expanded services with Deckard and the Rentalscape platform and implemented the Registration Portal, Online Complaint Form and 24/7 Hotline, citing customer satisfaction with product and support services. And although not in the Forth Worth area, Deckard works with the City of Galveston providing all services offered by Deckard Technologies - Rentalscape, Registration/Renewal Portal, Tax Portal, Outreach and 24/7 Hotline & Complaint Form. In addition, we created the ability for our system to work with Large Property Managers that wanted to register and pay HOT tax on several properties simultaneously. And finally, South Padre Island is also using all Rentalscape as well. i Rentalscape THE TEAM With over 80 years of combined experience in the Data Mining Industry, the Deckard Team has successfully implemented 100 Rentalscape platform and services across the U.S. This success is directly attributed to the vast knowledge and experience of The Team. s.� NICK DEL PEGO I CRAIG BROWN I JESSICA FLANAGAN I TONY MORIARTY CHIEF EXECUTIVE OFFICER PRESIDENT CHIEF TECHNICAL VP OF DATA SCIENCE EXPERIENCE: 25 YEARS EXPERIENCE:30YEARS OFFICER EXPERIENCE: 16YEARS EXPERIENCE: 16 YEARS Mathematician, U.S. SpecOps veteran, seasoned corporate senior leader and all-around problem solver. Nick's career path has always left him solving difficult problems with finesse and efficiency. He stays actively engaged with our customers and takes pride in providing solutions that meet your needs. Nick and the core technical team have been solving data problems together for over 13 years. Senior level executive and engineer for three renowned telecommunications and graphics companies. He leads by example and has spent his career leading teams that push the boundaries of what is possible. Craig is always focused on client success, enabling creative solutions that quickly become industry best -practices. Jess is a career software engineer, technical manager, accomplished communicator and public speaker, skilled trouble-shooter, team mentor, gamer, women -in -tech advocate and former white hat hacker, bringing over 12 years of software engineering experience to the team. Her team will make your data come together and is the backbone of everything we build. Machine Learning & Data Science Lead, Big Data native and software research engineer, and Open Source contributor. Building on the foundation that Jess creates, Tony and his team elevate what is possible through modern data science techniques and allow us to find more property locations and uncover more sights than anyone else in the market. Rentalscape I; � I CLIENT SUCCESS MGR SR CLIENT SUCCESS MGR EXPERIENCE:30YEARS EXPERIENCE: 8 YEARS Dana has worked in many industries, ranging from customer service in the Hotel Industry to Financial Compliance. Over the past 8 years Dana's specialty has been working in Financial Compliance, Risk Management and maintenance. Dana has worked with Cities and Counties across the board solving problems and creating processes. Alexa combines her 8 years of experience working in highly dynamic tech environments with her degrees in Psychology and Communications to provide an empathetic level of service to customers. She has a passion for building relationships, solving problems, and using creative insights to drive meaningful customer engagements. Her background is in digital agency account leadership; complex program management; strategic planning and creative web services VP SALES & GOVT AFFAIRS EXPERIENCE: 31 YEARS As the head of Sales, Dustin brings decades of government experience to the Deckard team. His far- reaching experience has taken him to every city and county in the state of California, as well as countless other jurisdictions nationwide. He is passionate about staying involved throughout the implementation process to ensure his clients get exactly what he promised, and more. E i Rentalscape METHODOLOGY AND APPROACH Deckard Technologies has the ability to identify all of the local hotels in the city of Fort Worth and conduct outreach to the administrators of the hotels in coordination with the City of Fort Worth staff to assure all hotel operators are aware of the registration process and HOT tax collection portal for the city of Fort Worth. Deckard will also conduct checks and balances with data at the Texas Comptroller office assuring that all operators are properly registered with the State of Texas Comptroller Office. Deckard will design and host an online HOT Tax collection portal for all Hotels in Fort Worth. IMPLEMENTATION, TIMELINE & TRAINING Upon Contract signing, Deckard will assign the City of Fort Worth a dedicated Account Manager, who will work with the City to develop "best practices" based on Deckard's experiences with other clients. The account manager will ensure that the implementation process proceeds smoothly and will be the main point of contact for any questions, suggestions, training, or concerns. will also participate in periodic calls with City staff regularly throughout project deployment then monthly on an on -going basis as requested. And since Rentalscape is Cloud Based, no hardware or software is installed. Most jurisdictions have been up and running with Rentalscape within a couple weeks with Address Identification complete within 4 weeks of receipt of the permit and listing data. Assuming contract award in early June, we fully expect system deployment, initial address mapping and user training to be complete well before August 2023. HIN As with any new project, the occasional bump in the road occurs. Bumps like incorrect emails for end users, missing permit data, license data or incorrect unit numbers have been encountered and have been easily remedied with the communication and partnership our customers have with their Dedicated Account Manager. Feedback we have received from our customers is that our competitors take months to have systems online and address mapping underway. Our automated property identification systems are already running in City enabling us to have your system up and running extremely quickly. i Rentalscape Timeline: City of Fort Worth, TX *Assuming contract sign on June 1 Client Handoff IXk r ® Outreach Lefler Campaig n v ® © -Tax Payment Portal Onboarding & Training - Registration Portal Program Kickoff Ai clteni s comrmencn Ready For UAT Systems ready anti live Centred At cl�enrs comrenience within 1-2 weeks of and wceip of Pemrd d ilsang Data (yP'.cally User Accepwce lasting Initial Address Identification Complete UAT For T., Payment Portal and 08.01.2023 Signing contract signing 1.2 weeks bckoffl for Rentalscape Rontobcope System Lme SIR Regioratlon NO 0615.2023 06.25.2023 07..01.2023 07..172023 '.4 ` I06.01.2023 I06.08.2023 07.17.2023 Loner Campaign Template Rcrimremenu gafienng canp!ete FIGURE 2: Rentalscape Timeline i Rentalscape SIMILAR SOLUTIONS The Proposer shall demonstrate they have the preferred minimum experience of four (4) years of experience for which the Proposer has provided delivering a similar end -to -end online solution to cities for managing hotels and short-term rentals similar to the size of the City. With over 80 years of combined experience in the Data Mining Industry, the Deckard Team has successfully implemented over 130 Rentalscape platform and services across the U.S. since our inception in 2018. We currently supply STIR identification and monitoring services to 12 local governments in the State of Texas. Our customers range in size from small jurisdictions such as Nacogdoches, TX to larger jurisdictions such as Galveston, TX. All our Texas customers have implemented the Rentalscape platform and ancillary products to help achieve better compliance and improve tax revenue. We pride ourselves in our ability to quickly onboard new systems - having systems jive within weeks and not months. We already regularly track State of Texas STIR and hotel tax payments and compare these to hotel tax collection by cities to look for discrepancies between the payments. See Attachment D for specific examples. Additional References/Case Studies available upon request. 12