Item C02C oun t y of Monr
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BOARD OF COUNTY COMMISSIONERS
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Mayor David Rice, District 4
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Mayor Pro Tern Sylvia J. Murphy, District 5
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Danny L. Kolhage, District 1
George Neugent, District 2
Heather Carruthers, District 3
County Commission Meeting
December 13, 2017
Agenda Item Number: C.2
Agenda Item Summary #3593
BULK ITEM: Yes DEPARTMENT: Code Compliance
TIME APPROXIMATE: STAFF CONTACT: Christine Hurley (305) 292 -4441
N/A
AGENDA ITEM WORDING: Approve 4 -month contract extension with Host Compliance (an
investigative services company) at no cost, with new ending date of September 17, 2018. This is an
extension to the original contract for one year of service, for a software system that provides data
and evidence needed for prosecution of code compliance cases for illegal vacation rentals being
advertised by internet companies.
ITEM BACKGROUND: Prior to IRMA, the County Commission approved a one year contract on
May 17, 2017, with Host Compliance, to purchase software that detects Illegal vacation rental
activity in unincorporated Monroe County. The County staff were using the software and
unfortunately, that activity was put on hold due to the storm and reallocation of code compliance
officers that were needed to do damage inspections. The software vendor agreed to authorize a 4
month extension to the term of the contract to make up for the time lost because of the storm. This
extension puts the end date for use of the software at September 17, 2018. At that time, staff will
develop a report to indicate the value of the software and accomplishments made in enforcement
against illegal vacation rentals.
The County Commission has budgeted an additional two code officers to work with the existing
code officer on vacation rental code cases.
This contract amendment authorizes the additional 4 months in term, without any additional cost to
the County.
Code Compliance staff are now focusing on illegal vacation rental activity again. The second
position for vacation rental enforcement is currently unfilled, pending the County evaluation of
staffing and hurricane IRMA expenses.
PREVIOUS RELEVANT BOCC ACTION:
May 17, 2017 - Board of County Commissioners approved a Contract with Host Compliance (an
investigative services company) in the amount of $97,238.00 for one year of services, for a software
system that provides data and evidence needed for prosecution of code compliance cases for illegal
vacation rentals being advertised by internet companies.
CONTRACT /AGREEMENT CHANGES:
1 st Amendment for 4 month Extension at no cost
STAFF RECOMMENDATION: Staff recommends Approval.
DOCUMENTATION:
Host Compliance. Original 05172017 Agreement
Host Compliance. l st Amendment. 111317
FINANCIAL IMPACT:
Effective Date:
Expiration Date:
Total Dollar Value of Contract: No additional Costs — time extension only
Total Cost to County:
Current Year Portion: $0 — already paid full amount
Budgeted: No, paid in FYI
Source of Funds: 148
CPI:
Indirect Costs:
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing: YES If yes, amount: See May 17, 2017 BOCC agenda item
Grant:
County Match:
Insurance Required:
Additional Details:
"None"
REVIEWED BY:
Cynthia McPherson Completed
Assistant County Administrator Christine Hurley
11/28/2017 8:40 AM
Steve Williams Completed
Bob Shillinger Completed
Budget and Finance Completed
Maria Slavik Completed
11/27/2017 2:47 PM
Completed
11/28/2017 9:57 AM
11/28/2017 10:53 AM
11/28/2017 11:15 AM
11/28/2017 12:00 PM
Kathy Peters Completed 11/28/2017 12:38 PM
Board of County Commissioners Pending 12/13/2017 9:00 AM
Host Compliance Services Agreement
THIS SERVICES AGREEMENT (the "Agreement ") is entered into as of the May 17, 2017 (the "Effective Date "),
between Host Compliance LLC, ( "Host Compliance ") and Monroe County Code Compliance, with an address at
2798 Overseas Highway, Marathon, FL 33050 (the "County "). This Agreement sets forth the terms and conditions
under which Host Compliance agrees to license to the County certain hosted software and provide all other
services necessary for the County's productive use of such software (the "Services ") as further described in the
attached Schedule 1.
NOW THEREFORE, in consideration of the mutual covenants and provisions contained herein, the Host Compliance
and County agree as follows:
Section 1- Services
1.1 Subscriptions. 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. County and County's end -users ( "End Users ") may access and use the Services
and any other Services that may be ordered by the County 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 County, or obtained by County through the
use of the Services ( "County Data "). These measures are designed to protect the integrity of County 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 County.
Section 2 - County Obligations
2.1 County Administration of the Services. Host Compliance' responsibilities do not extend to internal
management or administration of the Services. County is responsible for: (i) maintaining the confidentiality
of passwords and accounts; (ii) managing access to Administrator accounts; and (iii) ensuring that
Administrators' use of the Services complies with this Agreement.
2.2 Compliance. County is responsible for use of the Services and will comply with laws and regulations
applicable to County's use of the Services, if any.
2.3 Unauthorized Use & Access. County will prevent unauthorized use of the Services and terminate any
unauthorized use of or access to the Services. County will promptly notify Host Compliance of any
unauthorized use of or access to the Services.
2.4 Restricted Uses. County will not and will ensure that its End Users do not: (i) sell, resell, or lease the
Services; or (ii) reverse engineer or attempt to reverse engineer the Services, nor assist anyone else to do
SO.
2.5 Third Party Requests.
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2.5.1 "The Party Request" means a request from a third party for records relating to County'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 County is responsible for responding to Third Party Requests via its own access to
information policies. County 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 County of Host Compliance's receipt of a Third Party Request; (B) comply
with County's reasonable requests regarding efforts to oppose a Third Party Request; and
(C) provide County with information or tools required for County to respond to the Third
Party Request (if County is otherwise unable to obtain the information). If County 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 County receives a Third Party Request for access to the Services, or descriptions, drawings,
images or videos of the Services' user interface, County 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 County'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 County may, but will not be obligated to do so.
2.5.5 Any real or perceived conflict between this section (2.5- 2.5.5) and section 8.9 of this
agreement shall be resolved by section 8.9 controlling and superseding sections 2.5- 2.5.5.
Section 3 - Intellectual Property Rights
3.1 Reservation of Rights. Except as expressly set forth herein, this Agreement does not grant (i) Host
Compliance any intellectual Property Rights in the County Data or (ii) County 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.
"Intellectual Property Rights" means current and future worldwide rights under patents, copyright, trade
secret, trademark, moral rights and other similar rights.
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 County
or End Users send Host Compliance or post in Host Compliance' online forums without any obligation to
County.
Section 4 - Fees & Payment
4.1 Fees.
4.1.1 County will pay Host Compliance for all applicable fees upfront annually.
4.1.2 County 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
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Agreement are in U.S. funds.
4.1.3 County acknowledges that while it may choose to delay the implementation of the
Services, this is not a valid reason for withholding payment on any invoices. Furthermore,
the County will not withhold payment on any invoices for any other reason.
4.1.4 Except as expressly provided on Schedule 1, renewal of promotional or one -time priced
subscriptions will be at Host Compliance's applicable list price in effect at the time of the
applicable renewal. Unless Host Compliance provide County notice of different pricing at
least 75 days prior to the applicable renewal term, the per unit pricing during any renewal
term will increase by the larger of the 12 -Month Consumer Price Index (not seasonally
adjusted), as published by the United States Department of Labor, or five (5) percent.
Notwithstanding anything to the contrary, any renewal in which the number of monitored
short-term rental listings has increased or decreased from the prior term will result in re-
pricing at renewal without regard to the prior term's per -unit pricing.
4.2 Taxes. County is responsible for all taxes. Host Compliance will charge tax when required to do so. If
County is required by law to withhold any taxes, County must provide Host Compliance with an official tax
receipt or other appropriate documentation.
4.3 Purchase Orders. If County requires the use of a purchase order or purchase order number, County (i)
must provide the purchase number at the time of purchase and (ii) agrees that any terms and conditions on
a County purchase order will not apply to this Agreement or the Services provided hereunder and are null
and void.
Section 5 - Term & Termination
5.1 County Authority. This agreement has been duly noticed at a legally held public meeting conducted in
Monroe County, Florida, COUNTY'S performance and obligation to pay under this contract, is contingent
upon annual appropriation by the Board of County Commissioners.
5.2 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 it intention not to renew at least 30 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 County'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 ").
5.3 Termination for Convenience. If, for any reason during the Trial Period, County is dissatisfied with the
Services, County may terminate the Subscription and all funds paid under this Agreement will be refunded and
future commitments waived.
5.4 Effects of Termination for Convenience. If this Agreement is terminated by County in accordance with
Section 5.2 (Termination for Convenience): (i) the rights granted by Host Compliance to County will cease
immediately and County will no longer have the right to utilize the data obtained through the use of the
Services for systematic or mass outreach activities (including traditional mail, electronic mail, and /or
telephone campaigns); and (ii) after a reasonable period of time, Host Compliance may delete any County
Data relating to County'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).
5.5 Termination for Breach: Following the Trial Period, a party may terminate this Agreement for cause
upon 30 days written notice to the other party of a material breach.
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5.6 Refund or Payment upon Termination for Breach. If this Agreement is terminated by County in
accordance with Section 5.4 (Termination for Breach), Host Compliance will refund County 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),
County will pay any unpaid fees covering the remainder of the term of the Agreement. In no event will
County's termination after the first 6 months relieve County of its obligation to pay any fees payable to
Host Compliance for the period prior to the effective date of termination.
5.7 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 County will cease immediately
(except as set forth in this section); (ii) Host Compliance may provide County access to its account at then -
current fees so the County may export its County Data; and (iii) after a reasonable period of time, Host
Compliance may delete any County Data relating to County'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).
Section 6 - Indemnification
6.1 By Host Compliance. Host Compliance will indemnify, defend and hold harmless County 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 County to the extent based on an allegations that Host Compliance'
technology used to provide the Services to the County infringes or misappropriates any copyright, trade
secret, patent or trademark right of the third party.
6.2 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 County's only remedy under this Agreement for violation by the other party of a third
party's Intellectual Property Rights.
Section 7 - 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 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 and
County's indemnification obligations hereunder, neither County 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, data, 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.
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7.3 Limitation on Indirect Liability. To the fullest extent permitted by law, Host Compliance' aggregate
liability under this Agreement will not exceed the amount paid by County to Host Compliance hereunder
during the twelve months prior to the event giving rise to liability.
Section 8 — Miscellaneous
8.1 Terms Modification. All modifications to this Agreement shall be by written addenda executed and
signed by both parties.
8.2 Entire Agreement. The Agreement including the invoice and order form provided by Host Compliance,
constitutes the entire agreement between County 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 Florida.
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 Assignment. County may not assign or transfer this Agreement or any rights or obligations under this
Agreement without the written consent of Host Compliance. Host Compliance may not assign this
Agreement without providing notice to County, except Host Compliance my assign this Agreement or any
rights or obligations under this Agreement to an affiliate or in connection with a merger, acquisition,
corporate reorganization, or sale of all or substantially all of its assets without providing notice. Any other
attempt to transfer or assign is void.
8.7 Force Majeure. Except for payment obligations, neither Host Compliance nor County 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).
8.8 Procurement Piggybacking. Host Compliance agrees to reasonably participate in any "piggybacking"
programs pertinent to local government.
8.9 Public Records Compliance
Host Compliance must comply with Florida public records laws, including but not limited to Chapter 119,
Florida Statutes and Section 24 of article I of the Constitution of Florida. The County and Host Compliance
shall allow and permit reasonable access to, and inspection of, all documents, records, papers, letters or
other "public record" materials in its possession or under its control subject to the provisions of Chapter
119, Florida Statutes, and made or received by the County and Host Compliance in conjunction with this
contract and related to contract performance. The County shall have the right to unilaterally cancel this
contract upon violation of this provision by Host Compliance. Failure of the Contractor to abide by the
terms of this provision shall be deemed a material breach of this contract and the County may enforce the
terms of this provision in the form of a court proceeding and shall, as a prevailing party, be entitled to
reimbursement of all attorney's fees and costs associated with that proceeding. This provision shall survive
any termination or expiration of the contract.
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Host Compliance is encouraged to consult with its advisors about Florida Public Records Law in order to
comply with this provision.
Host Compliance shall:
1. Keep and maintain public records that ordinarily and necessarily would be required by the County in
order to perform service.
2. Upon request from the County's custodian of public records, provide the County with a copy of the
requested records or allow the records to be inspected or copied within a reasonable time at a cost that
does not exceed the cost provided in Chapter 119, Florida Statutes (2016), as may be amended or
revised, or as otherwise provided by law.
3. Ensure that public records that are exempt or confidential and exempt from public records disclosure
requirements are not disclosed except as authorized by law for the duration of the contract term and
following completing of this contract if the Host Compliance does not transfer records to the County.
4. Upon completing of the Contract, transfer, at no cost, to the County all public records in possession of
the Host Compliance or keep and maintain public records required by the County to perform the
service. If the Host Compliance transfers all public records to the County upon completion of this
Contract, the Host Compliance shall destroy any duplicate public records that are exempt or
confidential and exempt from public records disclosure requirements. If the Host Compliance keeps and
maintains public records upon completion of this Contract, the Host Compliance shall meet all
applicable requirements for retaining public records. All records stored electronically must be provided
to the County, upon request from the County's custodian public records, in a format that is compatible
with the information technology systems of the County.
5. A request to inspect or copy public records relating to a County contract must be made directly to the
County, but if the County does not possess the requested records, the County shall immediately notify
Host Compliance of the request, and Host Compliance must provide the records to the County or allow
the records to be inspected or copied within a reasonable time.
IF HOST COMPLIANCE HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119 FLORIDA
STATUTES, AS TO THE HOST COMPLIANCE'S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS
CONTRACT, CONTACT THE CUSTODIAN OF PUBLIC RECORDS BRIAN BRADLEY AT PHONE# 305 -292-
3470 BRADLEY- BRIAN@MONROECOUNTY- FL.GOV, MONROE COUNTY ATTORNEY'S OFFICE 111112TH
Street, SUITE 408, KEY WEST, FL 33040.
IN WITNESS WHEREOF Host Compliance and the County have executed this Agreement as of the Effective Date.
AA ode Compliance by its authorized Host Compliance LLC by its authorized signatory:
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SST DOK, CLERK BOARD OF COUNTY COMMISSIONERS �?� —4C tf` OF MONROE COUNTY, FLORIDA w CD
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Deputy Clerk Mayor George Neugent b;
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Cynt Ja McPher Direc or of Code mpliance
Date: 1 5_'S_ 1 I
STATE OF CA ,� 1
COUNTY OF
Ulrik Binzer
Chief Executive Officer
Date: 9 /Z-s) ZO
The foregoing instrument was ackno led a before me thi day of POYI 1 2017, by
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Notary Pubic
14 ��� �(�► M or1 TIMOTHY PATRICK SOLOMON
COMM. #2187127 Z
Print name _� Notary Public . California ;0 My commission expires: �1 a / Seal Marin County °
r COM Expires Mar. 19, 2021
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MONFJOE COUNTY A 0 E
AP#BbVED AS T RM:
— �8' f:N T. WILLIAMS
ASSISTANT COU TY ORNEY
Date 3'" 177
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Schedule 1
Scope of Services:
Trend Monitoring
Monthly email - delivered report and live web - delivered dashboard with aggregate statistics on the short-term
rental activity in Monroe County Code Compliance's jurisdiction:
• Active monitoring of jurisdiction's short-term rental listings across 15+ STR websites
• Monthly analysis of jurisdiction's STR activity scale, scope and trends
Address Identification
Monthly email - delivered report and live web - delivered dashboard with complete address information and
screenshots of all identifiable STRs in Monroe County Code Compliance's jurisdiction:
• 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
Rental Activity Monitoring
Ongoing monitoring of jurisdiction's short-term rental properties for signs of rental activity:
• Automatic monitoring of review activity across 15+ STR websites
• Weekly screenshots of reviews and calendars for each active listing
• Quarterly pro- active, systematic and data - informed outreach to short-term rental operators regarding their
tax remittance obligations (using jurisdiction's form letters)
• Documentation of information that serves as the foundation for the suspicion of rental activity
• Custom reports and analysis to support STR related investigations
Note: Detailed rental activity monitoring requires 6 months of data accumulation to be most effective.
Total Annual Subscription Service Price
Note: Above pricing assumes 2593 short-term rental listings in Monroe County's jurisdiction.
$97,238
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First Amendment to the Host Compliance Services Agreement
Between Host Compliance LLC and Monroe County
THIS FIRST ANIvENDMENT is entered into the 1. S" day of October 2017 between
Host Compliance LLC (Host Compliance) and the Monroe County Board of County
Commissioners (County).
WHEREAS, the contract between HOST COMPLIANCE and the COUNTY was
entered into May 1.7, 2017; and
WHEREAS, on September 10, 2017, Hurricane Irma severely impacted Monroe County
and has impacted the County's ability to carry one normal day to day operations and it's ability
to begin utilization of new software; and
WHEREAS, HOST COMPLIANCE agrees to license to the COUNTY certain hosted
soft and provide all other services necessary for the County's productive use of such
software; and
NOW THEREFORE, the parties hereto, for valuable consideration and the mutual
promises between the parties, hereby amend its agreement as follows:
Section S, Term and Termination.:
7.2. Term. The contract shall be extended 4 months with all other aspects of the previous
contract remaining in place. The new start date will not affect any financial considerations by
either party and there are no financial repercussions as a result of the hurricane - induced delayed
start date. The Ag 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 30 days prior to the end of the 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 County's systematic or mass outreach activities utilizing the data obtained through the
Senyiees (,traditional mail, electronic mail, ancl/or telephone campaigns), or (c) tenhlination by
Bost Compliance in our sole discretion, shall be considered a trial period ( "Trial Period ").
2. All other terries and conditions of the May 17, 2017 Agreement between the panties, shall
remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed in their respective names as first written
above,
Kevin Madok, Clerk
By:
Deputy Clerk.
( SEAL)
For .Monroe County
By:
Mayor George Neugent
Page I 1 Host Compliance First Amendment to Contract
ult ik Binzer
Chief Executive Officer
Date: I]/l/20[7
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