RESOLUTION NO. RS2017-519

A resolution approving a contract between The Metropolitan Government of Nashville and Davidson County and Host Compliance, LLC, to provide services related to short term rental permitting and tax collection.

WHEREAS, Nashville’s popularity as a tourist destination city has resulted in the operation of thousands of short term rental properties (STRPs); and,

WHEREAS, in response to concerns raised by Members of the Metropolitan Council regarding enforcement of the STRP regulations, Mayor Megan Barry commissioned a study to provide recommendations for effective enforcement of the property standards code; and,

WHEREAS, on December 20, 2016, Fiscal Choice Consulting, LLC, submitted its report and recommendations to the Mayor and Council, which included a recommendation that the Metropolitan Government procure the services of Host Compliance, LLC, to identify unpermitted STRPs, collect data on the extent of the non-compliance, estimate rental activity for permitted and unpermitted properties, compare estimated rental activity with hotel/motel tax receipts from the property, and maintain a 24-hour complaint hotline; and,

WHEREAS, improved enforcement of existing STRP regulations is a top priority of the Mayor and the Metropolitan Council; and,

WHEREAS, identifying unpermitted STRPs is an important step in the Metropolitan Government’s overall efforts to improve enforcement, which include staffing increases at the Property Standards Division of the Codes Department to more proactively regulate quality of life issues in neighborhoods, improving forms and data collection methods to better interact with the public and address their concerns, and enhanced coordination between the Metro Nashville Police Department and the Codes Department to record and track habitual violations of the noise ordinances at STRPs; and,

WHEREAS, information collected from the Host Compliance system can be used as evidence by the Codes Department in the legal or administrative hearings necessary to shut down illegally operating STRPs; and,

WHEREAS, it is anticipated that the identification of currently unpermitted STRPs may result in more revenues for the Metropolitan Government, which can offset costs for this software and increased enforcement efforts; and,

WHEREAS, Section 4.12.060 of the Metropolitan Code of Laws authorizes the Metropolitan Purchasing Agent to enter into sole source contracts when the purchasing agent determines in writing, according to standards adopted by the Procurement Standards Board, that there is only one source for the supply or services required; and,

WHEREAS, the Purchasing Agent has determined that the services and supplies to be provided by Host Compliance, LLC, meet the requirements for the use of a sole source contract; and,

WHEREAS, Section 4.12.060 of the Metropolitan Code of Laws calls for council approval by resolution of sole source contracts “with a total contract amount in excess of two hundred fifty thousand dollars ($250,000.00);” and,

WHEREAS, approval of the contract will benefit the citizens of Davidson County by providing services related to short term rental permitting and tax collection.

NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1: That the contract between The Metropolitan Government of Nashville and Davidson County and Host Compliance, LLC, attached hereto and incorporated herein, is hereby approved.

Section 2. That this resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Burkley Allen, Colby Sledge, John Cooper, Russ Pulley

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