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Home My WebLink AboutAGMT - Expedia Inc (MOU & Agreement)MEMORANDUM OF UNDERSTANDING AND AGREEMENT This Memorandum of Understanding and Agreement ("MOU") is entered into by and between Expedia, Inc., a Washington corporation ("Expedia"), and the City of Seal Beach, CA (the "City") to describe Expedia's compliance with the Seal Beach Municipal Code (the "Code"). Each party may be referred to individually as a "party" and collectively as the "parties." 1. Collection and Display of Short -Term Rental Permit Numbers: Expedia shall estab- lish a mandatoiy license number field on its platform to receive the Owner's Short -Term Rental Permit Number, will require Owners' to provide a properly formatted Short -Term Rental Permit Number to create a Short Term Rental listing on its platform, and shall dis- play such numbers on public listings. 2. Listing Removal for Failure to Include Short -Term Rental Permit Numbers: On September 29, 2023, or later to ensure industry uniformity, Expedia will deactivate any Short Term Rental listings for which the Owner has failed to input a Short -Term Rental Permit Number. Thereafter, Expedia will prohibit an Owner from listing a Short -Term Rental on its platform without a Short -Term Rental Permit Number. 3. Notice and Take Down: The City may notify Expedia that a Short Term Rental listing has an invalid Short -Term Rental Permit Number by emailing VRGovSupporta.expe- dia.com with the URL and a statement that the listing lacks a valid Short -Term Rental Permit Number. Expedia will remove the listing within five business days of notifica- tion. 4. TOT Collection and Remittance: With respect to any transaction between an Owner and a guest booked on or after November 11, 2023 and for which payment is completed through Expedia.com, including any and all subsidiaries of Expedia ("Expedia Platform") for a Short Term Rental listing for which the City's transient occupancy tax ("Tax") im- posed under Code Chapter 4.35 is due ("Booking Transaction"), Expedia will collect and remit the tax to the City. Expedia will collect and remit the Tax in accordance with Code Chapter 4.35, which requires, among other things, the submittal of a quarterly report to the City's tax administrator identifying the total rents charged on the platform and re- ceived by Expedia and the amount of Tax due for the period. 5. The Tax shall be collected and remitted at the applicable ,rate by Expedia based upon the entire amount charged by the Owner in connection with the Booking Transaction, includ- ing but not limited to the following fees charged by an Owner: rental fee, service fee, booking fee, cleaning fee, property damage fee, and any other use -related fee; but exclud- ing refundable damage deposits. Expedia shall file returns in accordance with Chapter 4.35 of the Seal Beach municipal code. Unless otherwise stated, terms will have the same definition as in the Code. 6. Nothing contained herein nor any action taken pursuant to this MOU, including but not limited to the collection or remittance of the Tax, shall impair, restrict, or prevent Expe- dia from asserting that any Tax and/or penalties, interest, fines, or other amounts assessed against it were not due or are the subject of a claim for refund under applicable law, or from enforcing any and all rights accorded to it pursuant to law and subject to the proce- dures set forth in Code Chapter 4.35. 7. Misrepresentations Made to Expedia: Expedia shall not be held liable for violating this MOU or the Code due to its reliance on misrepresentations made by an Owner or an Owner's agent regarding the property's licensure. 8. Term and Effective Date: a. This MOU will become effective upon Expedia and the City signing it. b. Tax collection and remittance will begin on the first day of the month that is at least 30 days after the MOU becomes effective. c. This MOU is an at -will agreement by and between Expedia and the City. There- fore, either party may terminate this MOU, with or without cause, subject to 30 days prior written notice. If this MOU is terminated, Expedia will be provided 60 days to achieve compliance with all applicable requirements of the Code before the City seeks civil fines or penalties against Expedia for violations of the same. 9. Confidentiality: Subject to compliance with the California Public Records Act ("PRA"), Gov. Code § 6250 et. Seq., the City agrees discussions and negotiations related to this MOU will remain confidential to the extent permitted by the PRA. 10. Meet -and -Confer: If either party believes that the other is not complying with any provi- sions set forth in this MOU, it shall notify the other and the parties shall meet and confer in good faith to resolve any dispute. Both parties shall provide one another with reasona- ble time to resolve or cure any alleged violation or non-compliance with this MOU. 11. Compliance: The parties agree that Expedia fulfilling its obligations under this MOU shall constitute full compliance with the requirements for Hosting Platforms under the Code. 12. Counterparts: This MOU may be executed in counterparts, each of which shall be deemed an original and all of which shall constitute one and the same instrument. The parties will accept emailed PDFs of signature pages. 13. Entirety of Agreement: This MOU, consisting of 3 pages, represents the entire and inte- grated agreement between the parties, and supersedes all prior negotiations, representa- tions, and/or agreements, whether written or oral. Each party acknowledges that in enter- ing into this MOU it does not rely on any representation that is not set out in this MOU. 14. Severability: Should any portion of this MOU be judicially determined to be illegal or unenforceable, the remainder of the MOU shall continue in full force and effect, and ei- ther party may renegotiate the terms affected by the severance. 15. Contact and Notice Information: Unless otherwise specified, all notices and other com- munications related to the administration of this MOU will be in writing and delivered to the parties using the following email addresses and physical addresses: Expedia: Expedia, Inc. 1111 Expedia Group Way W. Seattle, WA 98119 Email: VRGovSupport@expedia.com Attention: Conner Peretti, Jordan Clark The City: City of Seal Beach 211 8th Street Seal Beach, CA 90740 asmittle@sealbeachca.gov sealbeachca.gov Attention: Community Development Director IN WITNESS WHEREOF, the parties have caused this Memorandum of Understanding to be executed by their duly authorized officers. Expedia: Expedia, Inc. &L F l IV J Name: Angela Niemann Title: Senior Vice President Date: A 3- iq zoz3 The City: The Qity of S each A • Name: Jill R. Ingram Title: City Manager Date: Approved as to Form: By: Nicholas Ghirelli, City Attorney RESOLUTION 7440 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING THE MEMORANDUM OF UNDERSTANDING AND AGREEMENT BETWEEN EXPEDIA INC. AND THE CITY OF SEAL BEACH REGARDING SHORT-TERM RENTALS AND TRANSIENT OCCUPANCY TAX COLLECTION AND AUTHORIZING THE CITY MANAGER TO EXECUTE THEAGREEMENT WHEREAS, the City of Seal Beach adopted Ordinance 1701 allowing for short-term rentals of private residences within the Coastal Zone; and, WHEREAS, there ,'is a desired increase in public coastal access and overnight accommodations; and, WHEREAS, Expedia Inc. is an online travel company engaging in global travel accommodations; and, WHEREAS, Expedia Inc. desires to publish permitted short-term rentals for online bookings on its platform; and, WHEREAS, the City desires for Expedia Inc. to comply with all of its laws and regulations regarding short-term rentals, including a requirement that a short-term rental permit number is generated for each owner and shall be displayed on public listings; and, WHEREAS, the City further desires for Expedia Inc. to collect and remit transient occupancy tax from short-term rental guests in accordance with the City's Municipal Code; and, WHEREAS, the Memorandum of Understanding and Agreement specifies Expedia Inc. will comply with applicable laws and regulations for short-term rentals within the Coastal Zone when booked on the Expedia platform. NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. The City Council hereby approves the Memorandum of Understanding and Agreement between the City of Seal Beach and Expedia Inc. Section 2. The Council hereby authorizes and directs the City Manager to execute the Memorandum of Understanding and Agreement on behalf of the City. fl PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 11 th day of September, 2023 by the following vote: AYES: Council Members: Kalmick, Landau, Moore, Steele, Sustarsic NOES: Council Members: None ABSENT: Council Members: None ABSTAIN: Council Members: None ATTEST: STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } Nomas Moore, Mayor I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7440 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 11th day of September 2023. loria D. Harp , City Clerk it