CM-2019-0336 - 10/25/2019SUPPLEMENTAL AGREEMENT NO.1
TO "CITY OF ROUND ROCK PROFESSIONAL CONSULTING SERVICES
AGREEMENT FOR HOTEL OCCUPANCY TAX ANALYSIS AND AUDIT SERVICES
WITH
AVENU INSIGHTS & ANALYTICS, LLC"
CITY OF ROUND ROCK §
STATE OF TEXAS §
COUNTY OF TRAVIS §
COUNTY OF WILLIAMSON §
KNOW ALL BY THESE PRESENTS:
THIS SUPPLEMENTAL AGREEMENT NO. 1 to "City of Round Rock Professional
Consulting Services Agreement for Hotel Occupancy Tax Analysis and Audit Services with
Avenu Insights & Analytics, LLC," hereinafter called "Supplemental Agreement No. I," is made
by and between the City of Round Rock, Texas, a home -rule municipality, hereinafter called the
"City" and Avenu Insights & Analytics, LLC, hereinafter called the "Consultant."
WHEREAS, the City and Consultant executed the referenced "City of Round Rock
Professional Consulting Services Agreement for Hotel Occupancy Tax Analysis and Audit
Services," hereinafter called the "Agreement," on lune 13, 2019 by Resolution No. R-2019-
0225; and
WHEREAS, the City desires to amend the Scope of Services to add additional services,
specifically the local Hotel Occupancy Tax Short Term Rental (STR) Discovery & Recovery
Services to the Agreement; and
WHEREAS, it is necessary to amend the Scope of Services as provided in the
Agreement;
NOW THEREFORE, in consideration of the mutual promises and obligations in the
Agreement and this Supplemental Agreement No. 1, the City and Consultant agree that said
Agreement is amended and supplemented as follows:
I.
Section 3.01 of the Agreement is hereby amended to read as follows:
3.01 SCOPE OF SERVICES
Consultant shall satisfactorily provide all services described herein and as set forth in
Exhibit "A." Such services shall be performed in the time frame approved by the City.
Consultant's undertaking shall be limited to performing services for City and/or advising City
concerning those matters on which Consultant has been specifically engaged. Consultant hall
00431 a221ss2
perform services in accordance with this Agreement, in accordance with the appended proposal
for services, and in a professional and workmanlike manner.
In addition to the services set forth in Exhibit "A." the parties agree to include the
local Hotel Occupancy Tax Short Term Rental (STR) Discovery & Recovery option, which
shall be provided by Consultant for a foM Dercent 40% contingency fee.
if.
This Supplemental Agreement No. 1 shall amend the original Agreement only as set forth
herein with no other changes in terms or conditions of the original Agreement.
IN WITNESS WHEREOF, the City and Consultant have executed this Supplemental
Agreement No. l to be effective as of the last date of due execution by both parties.
CITY OF ROUND ROCK, TEXAS
By:
Printer
Title:
Date S
ATTEST:
By: '
Sara L. White, City Clerk
FOR CITY, P 1OVED AS TO FORM:
By: L 3
Stephan Sheets, City Attorney
2
AVENU INSIGHTS & ANALYTICS,
LLC
Byt..
Printed Name:like Melka
Title: CFD
Date Signed: 10.15.19
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TAB 9 — Cost Proposal
Analysis, Audit and Compliance
The Analysis, Audit and Compliance services will be provided upon request from the City. The properties to audit
may be selected by the City, or by Avenues Audit Manager with approval by the City. There Is no requirement to
audit In any given year.
The Audit and Compliance Services will be provided for a Fixed Fee of:
Flat fee: $2,000 per each lodging property audited. A minimum of 2 audits must be performed In any one audit
period.
Manpower
Hourly rates only apply to additional consulting above and beyond the audit fee.
a. Principle: $200 per hour
Client Services Director: $150 per hour
Information Technology (IT) support: $150 per hour
Director: $150 per hour
Manager: $175 per hour
Senior Analyst: $100 per hour
Analyst: $75 per hour
Administrative support: $50 per hour
b. Estimated hours for each category of personnel —
No additional hours are anticipated, unless the City has specific requests above and beyond our
standard services and customer care.
c. Rate applied for each category of personnel
Our standard rates for each category of personnel are listed above, should the City have
additional specific requests beyond the scope of this proposal.
II. Itemized Cost of Supplies and Materials — Included in the flat fee
III. Other itemized costs — Included in the flat fee
IV. Travel Expenses
City to reimburse Avenu for reasonable travel and other out-of-pocket expenses associated with the
performance of the field audits including but not limited to lodging, parking, mileage, per diem, etc.
(Mileage and per diem will be according to IRS regulations). Such reimbursement will be billed
Incrementally. We make every effort to keep the travel costs as reasonable as possible.
NTE $250 per audit
V. Printing
Costs are included in the fiat fee with no additional cost incurred
CITY OF ROUND ROCK, TEXAS Exhibit "A"
Scope of Services
VI. Total (not to exceed) Cost
$68,200 31 Properties for $2200 per property for audit and administration. We can conduct a
minimum of 2 audits or all 31 properties
$7,750 Max Travel Expenses (NTE $250 per audit)
$10,000 Contingency for additional audits or consulting services requested by the City
$85,950 NTE Cost for Audits
Short-term Rental (STR) Discovery
Should the City decide to also contract for STR services, it will be provided for a contingency fee of forty percent
(40%) of the additional revenue received by the City for the services provided. The 40% will apply to the current
tax year, all eligible prior period revenues collected, and any applicable penalties, Interest, and late charges. The
contingency fee only applies to revenue actually received by the City. The term "current tax year" will mean the
most recent tax year for which local taxes are due and payable to the City, and In which Avenu has identified
deficiencies.
Fees: 40% of collected
Hourly rates only apply to additional consulting services above and beyond the quoted fee and are included
herein for reference only. STR services are priced on a contingency basis, which cost the City nothing unless
additional revenues are discovered.
I. Hourly rates only apply to additional consulting above and beyond the quoted fee.
a. Principle: $200 per hour
Client Services Director: $150 per hour
Information Technology (IT) support: $150 per hour
Director: $150 per hour
Manager: $125 per hour
Senior Analyst: $100 per hour
Analyst: $75 per hour
Administrative support: $50 per hour
b. Estimated hours for each category of personnel —
No additional hours are anticipated, unless the City has specific requests above and beyond our
standard services and customer care.
c. Rate applied for each category of personnel
Our standard rates for each category of personnel are listed above, should the City have
additional specific requests beyond the scope of this proposal.
11. Itemized Cost of Supplies and Materials — Included In the fee
III. Other Itemized costs — Included in the contingency fee
CITY OF ROUND ROCK, TEXAS Exhibit "An
Scope of Services
IV. Travel Expenses
Discovery services can be performed without incurring travel costs
V. Printing
Costs are included In the contingency fee with no additional cost incurred
VI. Total (not to exceed) Cost
40% of what is collected.
Our proprietary statistical analysis performed for cities your size indicates our average fee of $342 for
property identified and brought Into compliance.
The estimated number of unregistered properties is currently unknown. The Inherent nature of
discovery related services means we start with a blank slate and bring our analytical tools to bear upon
the businesses and properties located In proximity to the City to determine if unreported revenues do in
fact exist.
Tax Administration Cost Proposal (Optional)
The Administration Services shall be provided for a one-time set up fee of $2,500 which includes Online File and
Pay, plus an Annual Fixed Fee of $250 per lodging property.
Discount
If the City permits on-site examination of the records of ten percent (10%) but no less than 2 of the City's
lodging properties per year to insure compliance In collecting and returning the local hotel occupancy tax, Avenu
will discount the Administration services to an annual fixed fee of $200 per each lodging property.
I. Hourly rates only apply to additional consulting above and beyond the quoted fee.
a. Principle: $200 per hour
Client Services Director: $150 per hour
Information Technology (IT) support: $150 per hour
Director: $150 per hour
Manager: $125 per hour
Senior Analyst: $100 per hour
Analyst: $75 per hour
Administrative support: $50 per hour
b. Estimated hours for each category of personnel
No additional hours are anticipated, unless the City has specific requests above and beyond
our standard services and customer pre.
c. Rate applied for each category of personnel
II. Our standard rates for each category of personnel are listed above, should the City have additional
specific requests beyond the scope of this proposal.
III. Itemized Cost of Supplies and Materials — Included in the flat fee
CITY OF ROUND ROCK, TEXk Exhibit "A"
Scope of Services
IV. Other itemized costs — Included In the Nat fee
V. Travel Expenses
Administration services can be performed without Incurring travel costs
VI. Printing
Costs are Included in the flat fee with no additional fees incurred
VII. Total (not to exceed) Cost
$2500 One-time setup fee
$ 7750 ($2SO per property per year)
$10250 (first year with setup fee for 31 properties)
$ 7750 (subsequent years with 31 properties)
Total with Discount
$2500 One-time setup fee
$6200 ($200 per property per year If conduct audits for 10% of properties or frontload audits)
$8700 (first year with setup fee for 31 properties)
$6200 (subsequent years with 31 properties)
Additional Consulting
The City may request that Avenu provide additional consulting services at any time during the term of the
Agreement. if Avenu and City agree on the scope of the additional consulting services requested, then Avenu will
provide the additional consulting on a time and materials basis. Depending on the personnel assigned to perform
the work, Avenu's standard hourly rates range from $75 per hour to $325 per hour.
These additional consulting services will be invoiced at least quarterly based on actual time and expenses incurred.
Hours of consulting expressly included in Avenu's compliance service are not "additional consulting services" for
purposes of this section.
CITY OF ROUND ROCK, TEXAS Exhibit "A"
Scope of Services
City of Round Rock
JROUND RACK
XA` Agenda Item Summary
Agenda Number:
Title: Consider executing Supplemental No. i to the Professional Consulting
Services Agreement for Hotel Occupancy Tax (HOT) Analysis and Audit
Services with Avenu Insights & Analytics, LLC adding local HOT Short Term
Rental Discovery & Recovery Services.
Type: City Manager Item
Governing Body: City Manager Approval
Agenda Date: 10/25/2019
Dept Director: Susan Morgan, CFO
Cost:
indexes: General Fund
Attachments: Signed Suppl Agreement No.1, Exhibit B Avenu HOT Audit Prop
Department: Finance Department
Text of Legislative File CM -2019-0336
Consider executing Supplemental No. 1 to the Professional Consulting Services Agreement
for Hotel Occupancy Tax (HOT) Analysis and Audit Services with Avenu Insights & Analytics,
LLC adding local HOT Short Term Rental Discovery & Recovery Services.
The City solicited proposals for Hotel Occupancy Tax (HOT) Audit services in January 2019
and awarded the contract to Avenu Insights and Analytics. The term of the agreement is a
5 -year period. The objective of the audit is to determine whether motels are remitting revenue
to the Finance Department in accordance with State and City laws and to provide the lodging
providers information on applicable State and City laws and City requirements for
documentation and remittance of taxes.
The City wishes to exercise its option to add the local Hotel Occupancy Tax Short Term
Rental (STR) Discovery & Recovery Services to the Agreement, provided as an Optional
service under "Exhibit A" in the Consultant's Response to the awarded RFP. (See Exhibit 8.)
The objective of the STR Discovery & Recovery services is to identify how many STRs are
within the corporate city limits and whether STRs are remitting revenue to the Finance
department in accordance with State and City laws. The City currently has seven (7) STRs
City of Round Rack Page i Pdnred on f 024079
Agenda Nem Summayy Continued CM -2019.033e
that submit taxes to the City.
Cost. 40% of Revenue Recovered
Source of Funds: General Fund
City of Round Rock Page 2 Printed an 10/24/2019