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Harmari - Work Proposali HARMARI BY LTAS VACATION RENTAL COMPLIANCE MONITORING June 7, 2017 COVER LETTER RE: STVRP Julie Mignogna Management Specialist City of La Quinta Design & Development Department 78-495 Calle Tampico La Quinta, CA 92247-1504 Dear Julie, LTAS Technologies Inc. is pleased to provide a quote for our services regarding Professional Consulting Services / Systems for Short Term Vacation Rental Monitoring and Compliance. I am the CEO of LTAS Technologies Inc. and founded the company in 2011. LTAS have been working with Tax and Revenue customers for nearly 6 years. Our responses to the requirements below were to our best ability and we hope you find them to be true and fair. Our office is based in Toronto, Ontario, Canada at LTAS Technologies Inc. 40 Hollybrook Cres. Toronto, ON, Canada, M2J 21-17 Telephone: 1-877-352-3277 x4 Fax: 647-795-9186 Web: www.harmari.com Sincerely, Allen Atamer CEO and Principal Engineer LTAS Technologies Inc. pg, 1 STATEMENT OF QUALIFICATIONS Key Personnel The proposed personnel roles to be filled include the Technology Subject Matter Expert, the Project Manager, and the Software Developer. Our team members and their qualifications are listed below: Allen Atamer, Founder, CEO and Principal Engineer Allen graduated from MIT with a Masters Degree in Aeronautics/Astronautics, and has spent the past 17 years working on software engineering, artificial intelligence, and text mining. In his industry experience, he developed a patented approach to intelligent automated troubleshooting questions that is used in diagnostics and repair of commercial aircraft. He has worked on all aspects of software development, business analysis, and many self-starter skills. He even captained a team of astronaut wanna-bes in the NASA -sponsored Space Elevator Games for 2 years! Allen founded LTAS Technologies in 2011 to make an impact on how the Internet is regulated and kept safe for everyone. He worked with his initial client OMVIC to help investigate illegal car dealers advertising online, and has grown the client base since then. The Harmari Tools that are developed by LTAS are used by hundreds of customers in state and municipal government, insurance, retail loss prevention, and law enforcement. He has worked with Santa Fe and Pennsylvania DOR in the past regarding business licensing and TOT compliance. Allen will act as the Technology Subject Matter Expert for this project, reporting to the Project Manager. Johan Nusaputra, Business Operations Manager Johan graduated from St. Francis Xavier University with a Bachelors of Business Administration. Over the last 15 years he has worked in several different sectors including Government, Consumer Goods, Information Technology, and Retail. He is Lean Six Sigma Black Belt certified and is the Business Operation Manager at LTAS. He has gained significant experience working with vendor management, procurement, budgeting, and cost controls, which greatly assists the company with bid response, customer relationships, project management and consultancy. Johan will act as the Project Manager for this project. He joined LTAS in 2015 and currently administers 3 client accounts (Cook County, Santa Fe, Pennsylvania DOR). Tom Lee, Software Developer Tom completed a PhD in Computer Science from the University of Toronto in 2016, specializing in computer vision and machine learning, preceded by a Bachelors of Mathematics degree with Honors from the University of Waterloo in 2009. Tom joined LTAS in July, 2015 to research and develop the Harmari Skycrawler that detects exotic and recreational vehicles where sales tax was evaded using satellite view technology. He now works on our Harmari Search engine, the archive of 1.1 billion classified ads from Craigslist, Backpage, AutoTrader and Offerup. He will be the Internal Technical Director for our team on this project, reporting to the Project Manager. LTAS Technologies Inc, pg. QUALIFICATIONS AND EXPERIENCE Below are specific references related to the effectiveness and quality of Harmari Taxcrawler for short -term -rental compliance Current Customer Quote / Story Kevin Frisoli • Subcontracted by RSI to PA Dept. of Revenue - Sales, Use, and Hotel Tax Director of Compliance project since March 2016 (ongoing to December 2018) Revenue Solutions Inc. . Vacation Rentals project encompassing VRBO/HomeAway, FlipKey, Craigslist, Tel: (888) 826-1324 ext. 363 etc. Over 5200 STRs detected so far within PA Cell: (617) 233-8148 . Identifiability of Owner/operators currently at 81% Email: KFrisoli@RSImail.com . Currently 20% non -registered short -term -rental operators detected and hotel taxes being collected • 100% accuracy rating in Philadelphia pilot including condos (60/65 already registered with 5 non -registered in voluntary compliance programs) Randy Randall • LTAS to provide compliance data for Short Term Rental for 5 year term as of Executive Director, Tourism October 2016 (ongoing) City of Santa Fe • Identifiability of Owner/operators currently at 71%, 201 West Marcy Street v Awaiting new 2017 licensee file for further follow up Santa Fe, NM 87501 . 185 Unregistered STIR Operators detected (16%) in initial deliverable Dec. Tel: (505) 955-6209 Email: rrandall@santafenm.goV 2016 Anish Patel • Purchased Harmari Search Craigslist module subscription in September 2016 Field Auditor III (ongoing) Cook County Department of Revenue . 3 tax programs identified: Parking Tax, Hotel Tax, and Amusement Tax 118 N. Clark Street, Room 1 160 . As of 2/2017, 25 audit leads have been generated Chicago, IL 60602 Direct: (312) 718-5010 Email: Ani2h.Pate l(�cookcountvil. cv i_TAS Technologies lrc, R9� 1=- art lifted mansion in east ha A"I Figure 1: AirBnB listing with matching Street View However, in some circumstances identification of the host is not possible. With VRBO/HomeAway and Flipkey, the identificability is about 87% due to the presence of a phone number on the listing. With AirBnB, the identifiability is about 75% due to the lack of phone numbers in the listing. a Vrt.qwbo.kuft err osor Pr ,vr S1Mi2br-2e0W-5190Mooer(-Mms-0d)wfi+truftw wpod*@c%radrdw 1 010 ro� b_ bed u ahl. �I-�r 1[iw-wv a! na.�b<� a �Y. pl�>md-4'AYTm �b� vse io.a co.n iq}iq . beD� ®�. �I.woavwsai� Figure 2: Obfuscated Phone Number featured in Craigslist ad and process duplicates, as shown in Figure 3. Harmari also collects data from Craigslist, and automatically extracts all possible locations for the phone number of the host, including obfuscated phone numbers as shown in Figure 3. De -duplication Some STR operators choose to advertise their properties on multiple web platforms, but it is not the majority. We anticipate about 15-20% duplication rate on listings across all STR websites considered. LTAS has developed in- house tools especially suited to efficiently analyze LTAS Technologies Inc, Pg, Image Gallery for Vacation Rentals Figure 3: Duplicate STR Listing Review screen The reports now need verification by our trained staff who categorize them the following way: 1. Rent out the exact same house/condo 2. Rent out different bedrooms in the same house/condo 3. Rent out different condo/houses In practice, only about 5-10% of properties are true duplicates (scenario 1 above). However, on AirBnB it is common to have the same house or condo subdivided as 1-bedroom units (scenario 2), in which they would not be considered duplicate, but they could fall under the same permit number. The odd case of false positive (scenario 3) is also picked up by our software but again it is all filtered out before presenting to the customer. Therefore, de -duplication of listings is important to verify that the same permit is being used for multiple units for rent, and also to accurately assess estimated sales and taxes owing. Duplicate records will be marked with Status = 10, and the grouping of Duplicates is found in the Harmari Report. Inventory Estimates Most inventory for short term rentals lies on AirBnB, HomeAway (and affiliates), FlipKey and affiliates. After a thorough review of all advertised short term rentals based in La Quinta, a few other "organic" websites showed up. Other short term rental websites are either aggregators (i.e. combining other inventories with none of their own) or do not have significant inventory to be worth investigating. Examples of STR websites that resell or aggregate inventory are turnkeyvr.com, booking.com, clearstay.com. Below is a table indicating estimated inventory levels of non - mainstream original inventory STR websites that can be investigated upon request as an add -on module. Website STR Listings HomeAway 1298 AirBnB 607 FI i p Key 425 Craigslist 85 f Perfectplaces 58 LTAS Technologies Inc, cgs `; Ownerdirect 50 Vacation Rentals411 40 Itrip 37 Vacationpalmsprings 33 TOTAL 2633 Consolidation of STR records Minimum fields required from the City STR Permit Data and TOT number data from La Quinta should be provided with the following fields: • Permit Number • TOT Number from La Quinta • Full Address of STR (street, unit number, city, state, zip code) • Full Name of STR operator • Full Primary Address of STR Operator (if different from STR itself) • Maximum Overnight Occupancy (# of Guests) ■ Office Phone number of STR operator • Cell Phone number of STR operator • Email Address of STR Operator • Permit Status (EXPIRED, ACTIVE, TEMPORARY, REVOKED, DISCIPLINED, etc) Jurisdictional Boundaries A shapefile was used to delineate the permitted and banned regions as shown below in Error! Reference source not found.. The area in grey is the permitted region, and blue is the banned region. About 260 of 970 STRs were in the banned region. Figure 4: Permitted and Banned regions within the City of La Quinta Cross-checking Figure 5 is a Tax Collection Workflow, which includes a cross-check of all the STR data sources, against the business license and TOT permit database and produces a report. The cross-check output has 5 possible results: PASS, FAIL, MISMATCH, EXPIRED and UNIDENTIFIED. LTAS Technologies Inc, Y • FAIL is reported when the property address or the owner/operator name, address or phone number is not found anywhere in the business license or TOT permit database. • MISMATCH is reported when the STIR property address matches but something else doesn't match, either: o the owner/operator's name, address or phone number does not match the record in either the business license or the TOT permit database. o the TOT Permit is found, but the business license is not found (or vice versa) • PASS is reported when the property address, owner/operator name, address and phone number correspond to an active TOT Permit and business license and they are consistent with in the Permit. • EXPIRED means a Permit for the property was found, but it has expired and needs to be renewed. For La Quinta, we can customize the label EXPIRED to also include properties un-permitted that do have a lodging tax account and are remitting. • Finally, UNIDENTIFIED status corresponds to properties that have yet insufficient information to be consolidated. The results are reported in priority order sorted 1. By status with FAIL at the top, then MISMATCH, EXPIRED, PASS and UNIDENTIFIED at the bottom 2. Within each status level, sorted by estimated sales by descending value Figure 5: Tax Collection Workflow The reports generated by Harmari Taxcrawler may be accessed via a password -protected secure web portal (discussed later). Manual review is necessary for records marked as MISMATCH. Through the course of the project, properties will progress naturally from UNIDENTIFIED status into one of the other 4 statuses. LTAS Technologies Inc, pg. li Harmari Report Data Fields Figure 6 and Figure 7 are example screenshots of the Properties worksheet for the Harmari Taxcrawler report. a A — 8 C -- - E_ F G 3 H _ I Awri1lillivift K . L_ M --- H O -- Reports generated by: LTAS 2iVacation Rentals Report TeChnOlpgies Hannad Report02017 LTAS Technologies Inc. AJI Rights Call: 8773623277 Reserved (Property Coordi- Property Parcel Review Signatory ' Name Operator Operator ID Owner ID Property Nam* nabs Address Number City State[.37206 Name (a) Name (a) n Source Narrrro Last Name 361&0 71h.A S a_9776337 au_50400360 1Nusic City fdansion - 10 Bed a Bath 400402100 Nashldle TN 1Lews(4/131 _ews 8 Google +Clear Lows ;�J. - Houses for Rent in Nashville S3a5271F 'Wayne(1113) 16.- Califomiaj1113) i+County (Records ._ g '.a 9905id2 w_2Sa13C5a 25R East Nasholle'Nriters 36.17569 icgood tar 8831 696900 Nasloflle J Laurer415fg- Pilas360 a (Google+Clear Lauren Bungalow- Houses for Rent in 57553553 IKeyin(4/59), +County 7 Nashrlle- 44.- 1 ILeah(2/59). (Records 14" .v_STr'p+27 •ai_587827 Nashville Tn Vandy Area Historic 3613965 �• • A%Pwa� 0505005300 Nashville I 37212 Sydney Sydney 13 'VRBO+Google !Sydney =state a True 5 Star Resort 8 4r (24150). + County a Gated 116,79221 IClanieae (1150). G dre (Records 'a i'.W) au 1195AIa IEast NashrWie Suite On the River- 362M. f Ush I-W Rd 6205000500 Nashdlla TN 37216 Je18229/238)- •Jeff 13 'Google+Gear .Jeff !louses for Rent in Nashville 173176as Chester(14238 + County g 1- J, Tony(2/238), Records 'Yd 4_77171)5 w_:117a5 Designer Home in the Middle of 36 14429 ••• #h A. 5 10407026200 rJashhlle TN 2a3 ,Angela (9125), Angela Hart 13 MO + Google Angela Music City! 1; Nashhle +County 1a 86.62746 (225), Jack :Records 4W v_329?2S im 329224 Ashwoud Guest House -Your Home 3612365 - ishwv As 76416009 000 Nashane T'l 7212 Nastm3le ICJ e PIPL+VRBO+CYNTHIAJ In Nashville ida,- •(3R3), Google+Clear 11 1 BIG 79600 Fanldin (2173 + County Tim ' .a_n3mtia au3a6994131_OCA710N. LOCAT30rl, 36-168 Z.S3 8212077200 1ashnlle I 37206 ,Bandon(19/34)Br antlon 13 ,Nb+ Google rbn lKATHRYN !_OCATIONII! I - Houses for Rent in 766a9160 + Clear+ $2. NashWle 6, •County Records _ VS y_62T798 i_6217ga -JER, 28A Chsnnerin the Heat 0 36.12327,- "lnntrvie 1180101320D Naslmlle Tr1 7204 Lauren (13/43), Lauren P 'vRbO +Google _auren Figure 6: Screenshot of Properties tab, first half P 1 T— f 3 1? AO AM Ai Ad Alt Al _- Art AO AP- AD AR . Operator Address ' lrperrt or City OOSiun Lken Phone _ Other eatin. URe- - WiEWtor - - Em W aR• _ Pmpert yType - Room irpe Aecm ]Yte Y a Ir j e y' siel • l _ l:afeetlAr Last 6fodlri-� Ike Last IJodK-� aaa Fiml Found Date Found note Last Sean _ 1� t f- = 9- _ ti �. J 1� Wio Fri 6i TTl w—. --�-oiP3 'limo— .". --` zmTure .--�moari -- -rim • . �epA'pu SdNY61 aauri+AP Yu •-J E 1 •.: A.HiLi REV Nr ••a1e ,.+cn..a eSSSs i+wsa Lwr iPl: 1 eLe i•0 TeeAVN :[en1aM 2rnreV6 iF90a >vno FIE l YOIeC NnWA1 >ta ••-"A,A `tl971A a a 11S0a .Ref1RGl• PAlilelrl0 iW.t Rn4 l7i Slta Tm—w ,-�^- tiger Pave. 113R1 sat I:! zooAafen :JlnAlale 20U." da 1 steer rmr•a `�a.Kf :i 4 a Ee 1 i iprriePlJ aerrNLp T 6a +rrw tVrl 7JA11 sas ra.us BA .. A+a.e•al ,M... I..y+e+ oeR is sw >sa sao :rorrmr2 ronaw,s :eooin ::errrora zorirow r eltsoi Tvo TN a�sri.,. ' '.win ..k.., rwr. M1omrr9 s. tM s mve to >< r setae qrb R.der 7 1 •�•"•'- Figure 7: Screenshot of Properties tab, second half Figure 8 is the list of STR owners that correspond to the properties listed above, some of which are multi -property operators- LTAS Technologies Inc-.. pg= C — F _ a �`_jtl TTt:i ... J_ K _ M E 7 7D rt t2 Figure 8: Screenshot of Owner tab LTAS would be doing the cross checking with data provided by the City to check for non -compliant owners. The initial report will contain all the non -compliant owners in the City. The City may choose to further verity MISMATCH records to determine under -reporting or select for audit candidates. In past Harmari projects, 33% of taxes assessed came from under -reporting taxpayers as opposed to non -registered taxpayers. Delivery Options Harmari TaxCrawler Reports can be delivered in the following ways: • Directly to email recipient list as an attachment weekly, monthly, or quarterly • Via Secure FTP (SFTP) with PGP encryption / decryption • Via web -based user portal (see Figure 9) Each week a report of new STRs is also delivered for monitoring purposes, 4 +i'JA LrasrKn­­o C11 nrpn' + .vharma mmida^(,: e 4 svarrh * 91 0 4 At + - T Property ID Owner ID First Name Last Name _ LEWIS B & Owner Street '17DOtA - I f , tamer ApW OwnerClty Owner State TN Ownerlip 37205 Business Name MinimumDats saw Status ce e_6291388 au 2-113318 SiF v NASHVILLE a -yv r..ijlHG ; ""�rY4• ,> 140,625 0 Counry — orris ;.a 5776337 au_50400360 HENOERSON Thl 37075 . 71.305 13 Clear M - tNrOWN W8,IUE OF O%L- i7 DRIVE LLC a•9906442 mu_248t9150 NEW YORK NY 10036-7714 a 6L.sm 8 Clear Sydney k .11t ICAS PI +_587827 vt 587627 Nashville TN .7212 460,45D 6 County .Jeff af.'-ai )rush Hill Rd 13eco 1s a_939940 au 11953D0 Nashville 7f: 37216 7551. 094 8 Clear ' �r.4KE 51' ice" S' ='[y, INC + 771705 �'- r,u 771705 - IN FALLS 10 3301 4 45.525 9 f,'ounry KLFF ^%r a 'ls wood Ave 32=4 w_329224 Nashville -RJ . 72T2 . 41.902 0 Clearr� Wwelcome City of Santa Fe y�A� S'ara. �wi.a Sat' :�0.eeo.ra J•� �� I9 _ sn. � eer�a Figure 9: Web Portal Screenshot Example Archived Content Harmari Taxcrawler keeps an archive of content collected if there are new listings or listings that may have been removed. It contains the content (HTML), reviews (HTML), and a sub -folder of images (JPG) as shown in Figure 10. LTAS Technologies Inc, Pg, 1 Archived content is critical for proving an STR operator was operating without a permit at some date/time regardless of the current state of that webpage. Archives counteract the effect of STR listings "going dark" to cover up evidence. :J v_10001W �,}�¢, �CeeFl ';wEr L�-W s ;17�v_I067,'!5 s�v_loovn _ _ �;�� IWIIIe w.nas a .._ -.-- ee �`. is-x• c_.. a�::•i•ir:.cnr� --- �;7r_looneo = <alo �,..�.,-•a-anre>�ey-we,• ..��»-'.-ne�.xar-aa.�+na ne�eu..: ;��. loosal a zt a—v aumlat aaa aet'➢ belvfal. - 'D�v_IOD33R w tam than ba➢Dy rich tha locacloa. a,] coma _ _ — .vysp —n fl- Hth the em t1— o1 the vaaclm xacal. 3023v 10 .. 1 cetetvaG W. --cm— total. it ialv_tOGi1� I jl;]v_IOUR +'axCu: ®lo4ee of —y at the 1ol-tb Lllla Gaa_ 1e b=o the boa.e fnt the aeet Pc1oc io av Y •-7v Im.Nq Figure 10: Archive View of the STR database Monitoring of new STRs New monthly STR reports are made available in the web portal as shown in Figure 11. Our investigative staff look at these records and make sure to include the identifications into each monthly report delivered to La Quinta. 3�1 � � rJrretEory - _ - Q Archive He— %k sir sfdl •�L -Y � � x �► . �t>o� - - - - - -- J R, Ya.^ Sme Type UodWwd '� Business_mnnisor_santaCr2016 11-10XE5 67 KB Excel 2017.M2rz710:04 Baseless_mnnitw_ssrrsa1+t201611-t1J(LS 12.5 KB Excel 201710027 10-04 Business_manit r_sanWo-2016-1142XLS 3.5KB Excel 201W10212710:04 Business_mooilor_sardals-201611-13XLS 3.5 KB Excel 2017102@7 10:04 Business—manitor_sanlate-2016-11-14XLS 14.5 KB Excel 2017.102127 10:04 Businc95—monitor sant2W201S-11-15XLS 17.5 KB Excel 2017/02/27 10:04 Figure 11: Daily Monitoring New STRs LTAS Technologies Inca pg. 11 i i i STR Rental Activity Monitoring and Tax Collection Assistance i Revenue Estimation Once STR properties are detected and identified, revenue estimation is needed to properly estimate taxes owing. The best strategy is to assume no response on the part of the taxpayer and that an assessment must be made. We provide 2 different revenue estimation models: review -based, and booking -based. A review -based revenue estimate is a reasonable lower -bound on gross receipt that can be derived directly from guest reviews of the property. The formula for calculating taxable sales is Sales = number of reviews x (price per night x minimum night stay + taxable fees) Where taxable fees are any required fees as part of the stay (e.g. cleaning fee, booking fee, administrative fee). Of course, this value is lower -bound because not all stays at an Airbnb property result in a review. Informal estimates have put that review/stay ratio at roughly 75%1, but things could be different within the La Ouinta area. A booking -based revenue estimate can be considered a predictive, upper -bound on sales that can be derived from forward -looking calendar bookings. During its monitoring program, Harmari will read the STR listing's calendar up to 180 days ahead to count booked days which leads to the following sales estimate Sales = Calendar booked days x price per night This figure can overstate sales due to cancelations and/or blocked out personal use by the owner of the STR which in i both cases is non -revenue generating. In both revenue models, the "price per night" is taken to be an average price that is neither peak nor off-peak price to be fair to the taxpayer. The Harmari Taxcrawler analytics engine also looks for specific keywords or phrases that correspond to a stay that lasted longer than the minimum number of nights. For example, if a review states "we had a great long weekend at Bob's place", and Bob listed the minimum nights as 1, then Harmari Taxcrawler will factor in 3 nights instead of 1 night for that review. This can appear separately in the report as "Review Stay Days" upon customer request. Permitting The City requires populating the TRAKiT system for land use management for creating a TOT permit, and business license. Harmari will either (1) enter permit data through the remote access portal provided by the City including any IT Security or special software license provided by the City, or (2) work with Superion to connect with their TRAKiT API to automate everything. Upon award, LTAS shall discuss the best approach with the City. Customer Outreach and Renewals Once the list of non -registered or under -reported taxpayers is verified, then an outreach campaign begins. The outreach is done via phone, "Contact Host" messaging, and direct mail. During outreach, the taxpayer will likely respond in the following manner: 1. Denial of operating an STR or alternatively "I am just the cleaning lady, I'm not the boss" 2. Having personal guests over that didn't pay to stay at the STR 3. Was not aware they were doing anything wrong In all 3 of these situations, VRC staff have the Harmari reports with everything at their fingertips. In situation (1), the name was obtained from reliable sources mentioned earlier through data triangulation between public record, the N STR listing itself, and social media. In situation (2), the indication of reviews left by different travelers (of different countries and ethnicities) will prove that the guests are not friends or family but in fact stayed and paid for it through ' Blog on airhostsforum.com circa 2015. ti0 , 0!r7rst;.'r(u- cam: _ - - - - - _ LTAS Technologies Inc, pg, the STR platform. In situation (3) it is very easy to refer to existing City ordinances and laws related to STRs. After two written notices have been sent without bringing the STR operator into compliance, Harmari shall refer the file to Code Compliance. Renewal notices will be sent via email at 60 days, 30 days and 15 days before the expiry of the STR operator's license. Should the STR operator not renew, they will be sent a notice by mail of their expired license and email to renew 15 days after expiry. Upon non -renewal after 45 days, Harmari shall escalate the matter to Code Compliance, Harmari Taxcrawler will accept monthly uploads of STR licensee and permit data to measure which STIR operators are now in compliance and who has not. Progress is healthy as long as the graphs go down from left to right as shown in Figure 12. STIR Compliance Status - La Quinta 140 120 100 80 60 40 20 0 ■rnr New Non- First Notice Second Notice Converted to Referred to Code Registered Licensees Compliance ■ Feb-17 +t Mar-17 Figure 12: Change in STR Compliance Status Month -over -Month Report Dashboard A summary of the charts and graphs in our web portal is in the table below, and a sample report for La Quinta is available in Appendix B. Chart f Useful For l PIE CHART of Year Ad Created/Year Joined Estimating annual STIR turnover — Tax Collection PIE CHART of Property Type Crafting proper ordinance applicable to each property type PIE CHART of Room Type Crafting proper ordinance applicable to each property type HEATMAP of Properties in La Quinta Identifying Hotspots in the Jurisdiction — Code Compliance BAR GRAPH (Histogram) of Nightly Rate Tax Collection PIE CHART of Number of Bedrooms Crafting proper ordinance applicable to each property type LTAS Technologies Inc. pq. PIE CHART of Status Tracking contractor STIR identification progress AND tracking overall STIR compliance progress BAR GRAPH (Histogram) of Number of Prioritizing high -volume STIR operators and/or Property Properties by Owner Management Companies — Tax Collection BAR GRAPH of Occupancy Ratio Better assess revenues and refute operator disputes - Tax Collection BAR GRAPH of Data Source Better awareness of STR platform sites and their role NEW SHORT TERM RENTAL REPORT Weekly report of new short term rentals that have appeared, including breakdown by data source PERMITTING AND TAXING BY Ensure permit number(s) are properly displayed on STIR PROPERTY listings, and make future compliance effort easier ESTIMATED TAX COLLECTION AND Using Estimated Minimum Sales, determine what may be LEAKAGE uncollected, taxable gross receipts from non-AirBnB listings Figure 13 is an example of a Heatmap for La Quinta. Property Heatmap - La Quinta - 2017106/O1 r+wusand v�r„e ® +r C-5 ifsdla � - �'. Conchaft „ �.kai3ftd nbow-odarfu . JVSmd concentraWn of ;.raca,tp a WcWm concentration of proparhn Figure 13: Example Heatmap for La Quinta LTAS Technologies Inc. pg, Zoning, Compliance, and Violation Enforcement Assistance Figure 14 is a flowchart showing how Harmari's services as it fits into an overall city -administered process of handling potential violations of zoning and ordinances. Starting from the top left 1. Guests inside an STIR begin partying late at night 2. The excessive noise disrupts a resident from their sleep, forcing him to call the 24/7 STR hotline 3. The Call Center Agent records the incident reported by the resident, after which she provides the resident with a PIN and a case number to allow the resident to follow up. 4. The Harmari cross-checking engine receives a real-time notification from the Hotline's Case Management System (CMS). It then determines the source of the noise based on its database of known STRs 5. (left of 4) If Harmari pinpoints the source of the noise as being a licensed STR, the operator of that STR will receive an email and SMS text notifying her of the incident reported. Depending on City policy, the incident may be escalated to the police department dispatch unit, or to code enforcement for follow up. 6. City Business Licensing may choose to revoke the license of the STR operator if noise or violations are reported multiple times and can be verified by investigators. 7. (below 4) If Harmari cannot pinpoint the source of the noise to a licensed STR, then it will generate a list of the 5 closest STRs to the incident and either report to code compliance, or escalate to the police department dispatch unit (see Figure 15) 8. The incident is investigated by law enforcement or code compliance possibly attending the STR property itself to disband the party house 9. Fines or citations are levied on the STIR operator if a violation is confirmed to have occurred 10. STR operator pays the fines, obtains a permit with the City, ceases operating an STR or continues operating an unlicensed STIR Figure 14: Code Compliance Workflow LTAS Techr_olegiies Inc. pg, There has been an incident report submitted to City of Santa Fe regarding the short term rental at 627 Garcia St. Please investigate the matter to ensure proper ordinance and zoning laws according to your permit. Type message y 7 Ste• rr ❑awr 0M. oas N 1ar X TIE H T S w Cr, asw•r. lw us aem n 9ER ace•a nwn:aunent u 3y rt5au fI �e wa�s.x amnn t: x a a �..� S :.ce 9 w+ri se time a etw., �wq>o�]. rv....rgem a.t m..a U uENSE Ip tm1Y '6tJ6152 1 •L:vuz ^8'•G �alr.mCrF�/Cu �4'IDt.�a'.Y-ran.l lxtW in9w.fz DMM ra.Xr91Y�wsc Fa 9l. ;6!]NS: 3+C�Y 0a'eWu a�Wa WW.Oq C.( 'L:?tl.: i l6 i:}Y '�{ WPs9 nfuur l.a bn.. �.rw.Y-ra Cann Pe Dry'Jq � sa W umliAAL Iw.r, a'.ry }�. Cl..`I1RI�E' UNLICENSED. EXRBED, UMDENTF ABLE usuncF,q su vi aE ml.a •L+� :E �lwwp xi5 ss cort]n us}Tcv.QEA 91 E B. 3�33 59�2BI YELci3 � uy a145fLN�I Ie01Ey� Irtere a ysEwe(sLp srn6an�EA �eaFa: �m maa. ieiw� }w}o+ a� -scam s�,v.l�w.x. a•.H:>s •.- Figure 15: Example Email and SMS Alerts sent to Code Compliance 24/7 Tipline _"MA_ The 24/7 Tipline offered by Harmari is second to none. During the greeting, the caller is asked to hang up and dial 911 if there is an actual emergency. The hotline operator will accurately take down the type of complaint (noise, garbage, parked vehicles, violence, drugs), the address of the incident, provide the caller with an incident number with PIN for tracking and follow up and allow investigators to easily respond to the complainant through a case management system as shown in Figure 16. A web form allows the Tipline operator / recorder to submit all information, including attachments which handles any images or audio below 10 MB. For larger audio or video multimedia files, a Dropbox folder is exposed to the complainant to securely share the information with the Tipline. That Dropbox folder is automatically emptied by our system every 24 hours to our servers, and then is shared with City's Code Compliance division for investigation and follow up. LTAS Technologies Inc. pg. I- F Q ,-ps,!,lighthouse-services-ans.mm/incaerzRepor'S.now-lndcientRepert- ibI p. C Q 5earch T 0 ® � Contact Its LIGHTHOUSE Harmariby LTAS Technologies t±ida mtaria7 Video Logged in as: atengharman.mm Case Management System for LTAS Technologles, Inc. Dent -:2343 Role:Admmistrator l IncllSrne Itcylvrts _ _ _ _ Sleti[s® Senrd for Date ReportedRxset All Fifers Adraeud sntars > . __. .. -_- ..- ff1 r_ -- �aln�k+e d:.• 11ui• S':+ isC:drYi tpltirn '. e[�ary .IM�lMi! �f!►fuel RIa1 RYA rat 'J!Y1vs dLe[ FNle,4 r4u+,t � Rq�'.tF-F r14�' M iic�a:o Frei.ilr YIY�ilWlors II��TiWi�•c tarsi 8� lip •— Ilrpir/t rW.tL I. '��$�� ❑: NM -Santa Fe 627 Garcia St, 1487331568 2/17/2017 Web Compliance Loud Lighthouse, IF;! High High Open Lighthouse Santa Fe, NM, - & Ethics parties CwMarw 67505 Figure 16: CMS for STR Hotline Incident Reporting Inspection Mapper Tool for Field Enforcement Field enforcement units may benefit from using the Inspection Mapper, which is an add -on module to Harmari Taxcrawler. The Inspection Mapper automatically populates pegs based on the exact location of the STR (where available), and allows the investigator to change peg location with an easy drag and drop, or update an address. It is compatible with Desktop, Tablet and Mobile. It also has a full workflow with delegation, assignment and close-out tasks all built into it. An administrative interface allows managers to view what field investigators are doing, what their issue resolutions were and how long they took to close them out. It can also be integrated with existing code compliance programs at an additional cost. hY LTAS Technologies Inc. pg. 1 Quality Control The Harmari identification process maintains a high level of reliability and accuracy. Our procedure requires at least 2 pieces of identifying information to corroborate the information in the STIR listing as in Figure 17. That is why we have 2 columns in the report where we pull statistics on Review Names and Signatory Names. The Review Name most frequently used (the number in brackets) is the most likely match to the operator name, regardless of the listing under the Host profile. This is very compelling evidence against the operator just in case they make excuses like "It wasn't me who posted this ad". Under Name Source, you will find reference to where the STIR property was found (Zillow), where the operator's address was found (CLEAR) and what it matched up against in the AirBnB listing. Review Signatory Name Operator Operator Operator Operator I City State Zip Status Name (s) Name (s) Source First Name Last Name Address city _ Sonoma CA 95476 Ash(28158), Ash 8 A3rbn6 + Ash Pathi 18145 US 18 D APFL C, Winury(1/58), Zino* + VALLEY Francisco 1158 Oeer Figure 17.- Example of Corroborating Evidence between Listing and Public Record Harmari uses an internal scoring system to measure and score matching and overlapping of STR listing data with a combination of: • Active and expired permit data for TOT and for zoning permits • 3 Public records data sources such as CLEAR • Social media websites such as Facebook, Linkedln, etc • La Quinta Property Ownership records • External websites where STR listings correspond to the platform site • Satellite or Overhead Maps or Street View data (where available) ■ Other non STR websites containing operator's information (E.g. real estate agent's page) Sometimes the relationships between owner and operator are not simple, and need additional scrutiny by our staff. For example, if the operator is a spouse, child, parent, relative or otherwise related to the owner then it needs some digging. If the owner is a trust, corporation, LLC, or other entity then that also needs to be disambiguated. All evidence collected is archived, labelled, timestamped and made available to the client's investigators, including all externally obtained evidence. The Name Source column in our report indicates which data sources were used as evidence in that listing. Quality Guarantee We stand by the quality of our service. In fact, Harmari is committed to the following Service Level Agreement with penalties for not reaching target objectives. For Non -Re istered Compliance, Harmari guarantees that of those STR operators identified via full name and address, that a minimum percentage of those STR operators will obtain a business license, TOT permit or remit TOT during Year 1 of the contract. Listing Building Type Target CompAiance Penalty for Missing Target House, Villa, or other single-family 90% 1 % of Year 1 contract value per 2% —dwellin2 below target to a maximum of 25% of contract value Year 1' Apartment, Condo or other unit of a 90% —multi-family dwelling Tent, Tree -house, RV, or other N/A N/A dwelling not within City jurisdiction LTAS Technologies inc. Pg. 13 SCOPE OF WORK LTAS shall provide the following • A monitoring service that runs one weekday, one weeknight, one weekend day and one weekend night per week to update existing listings and collect new ones on VRBO, AirBnB, FlipKey, Craigslist, Perfectplaces, Ownerdirect, Vacation Rentals411, Itrip, Vacationpalmsprings • De -duplication and manual verification of STR listings • Identify owner, operator, and exact STR property address using multiple sources of evidence • Report of identification efforts including property address, operator address, owner address (if different), estimated taxable sales, calendar booked days, date ad created, date first seen, date last seen including links to supporting evidence • Attempt to contact the STR owner/operator at a minimum 2 times by phone, and 2 times by direct mail and documenting each call and communication attempt and result • Report of monthly progress bringing unregistered STR operators into compliance including case conversions and cases referred to code compliance • A minimum 90% conversion rate to licensed STR operators ■ Entry of STR business license and TOT permit data into TRAKiT for converted cases • A secure web -based portal where City staff may access an archive of STR listings, reviews, photos, supporting evidence from identification effort, Inventory Reports, Identification Reports, and Monitoring reports ■ A 24/7 Tipline with a live operator to take complaints about short term rentals, enter the information into a case management system accessible by City staff • An integrated SMS- and email -based notification for licensed STR operators about incidents involving their STR • Web portal access to the Tipline's case management system • An automatic escalation to code compliance and/or the police department from the case management system • Data entry of permits into the TRAKiT system either via manual remote -desktop access or through an API - based integration La Quinta shall provide the following: • Monthly updates to the business license database and TOT permit database associated with the STVR compliance program including email, address, phone number and name of the licensees • Remote -desktop, secured access to TRAKiT • Point of contact for reporting and escalation to Code Compliance LTAS Technologies Inc. pg. PROJECT SCHEDULE The following Critical Path Method schedule is associated with the rollout of this project. As seen from the schedule, the Customer Outreach phase of the project depends on the Data Collection phase generating the first report of non- registered and under -reporting clients. We estimate half of the non -registered operators to be identified by the end of week 4, and the remaining half to be identified by week 8, which feeds the second wave of customer outreach in week 13. The remaining identification work beyond week 13 is "maintenance mode", and there will be a lower volume of new unregistered operators by then due to normal real estate ownership turnover. LTAS Technologies Inc. P 9 - _,,