Title
Consider a memorandum/resolution authorizing the award of RFP 23-17, for Hotel Occupancy Tax Collection and Short-Term Rental Compliance Services to Avenu, in the amount of $135,000 for FY24.
Summary
DATE: August 15, 2023
TO: Kent Cagle, City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Award RFP 23-17 for Hotel Occupancy Tax Collection and Short-Term Rental Compliance Services
BACKGROUND AND FINDINGS:
On April 11, 2023, the City Council approved for the amendment of Chapter 31 in the Code of Ordinance of the City of Killeen. The ordinance effective date is October 1, 2023. The approved changes pertain to the City's zoning regulations, specifically allowing for short-term rentals. The City of Killeen is estimated to have around 400-800 short-term rentals (STRs).
Presently, the City has engaged Avenu to handle hotel occupancy tax administration services for 42 hotels. However, in order to include the short-term rentals (STRs) under one agreement, it was necessary to initiate an advertising process for proposals.
On June 12, 2023, the City began advertising a Request for Proposals (RFP) for hotel occupancy tax collections and short-term rental compliance services. We received one response from Avenu Insights & Analytics, LLC. Staff evaluated the response based off of the criteria outlined in the RFP. Avenu has an impressive track record of 33 years in providing hotel occupancy administration and auditing services, and they have been serving the city in this capacity since 2016. Furthermore, Avenu holds a substantial presence in Texas, boasting 286 active contracts.
Avenu offers a comprehensive range of services that encompass hotel occupancy tax administration, hotel occupancy tax auditing, hotel occupancy tax discovery and recovery, and short-term rental services. The short-term rental services package consists of the following components: monitoring and identification, registration and compliance, tax portal, paym...
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