HomeMy WebLinkAbout07. 16-350JULY 12, 2016 16-350 RESOLUTION
(CARRIED 7-0 LOST________LAID OVER________WITHDRAWN________)
PURPOSE: APPROVE PROFESSIONAL SERVICE AGREEMENT WITH
TYLER TECHNOLOGIES FOR PROPERTY ASSESSMENT
REVALUATION 2017 ($127,500.00)
INITIATED BY: COMMUNITY DEVELOPMENT
BE IT RESOLVED by the Common Council of the City of Oshkosh that the proper
City officials are hereby authorized to enter into and take those steps necessary to
implement an appropriate professional services agreement with Tyler Technologies for
the 2017 property assessment revaluation in the amount of $127,500.00.
Acct. No. 100-0080-6401-00000 Assessor General Fund
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Oshkosh
MEMORANDUM
TO: Honorable Mayor and Members of the Common Council
FROM: Allen Davis, Community Development Director
DATE: July 7, 2016
RE: Approve Addendum to Professional Services Agreement for Property
Assessment Revaluation for 2017
Background
Tyler Technology has been the City's commercial property assessor since 2013 and
City Assessor since 2015. Tyler will continue as City Assessor in 2017. Based on the
successful completion of the commercial assessments and Assessor duties over the
last 4 years, the City requested Tyler Technology provide a Property Revaluation
Services proposal for 2017. The last City -wide Revaluation occurred in 2005.
Analysis
City -wide assessments have fluctuated over the last 10 years due to changing
economic conditions. Since the 2005 Revaluation, the variance has increased with
some types of property and some neighborhoods, and now there is evidence of a range
of over - valued or under - valued properties in the city. The 2017 Revaluation will bring all
city assessed properties back to the 100% market value.
City staff will remain in place to continue serving residential property valuations, gather
personal property data, and help customers and property owners with their assessment
questions. Luke Alger is the Deputy Assessor and is providing daily oversight of the
Assessor's office.
Tyler Technology will also continue to provide annual City Assessor duties. Tyler's
services will include their work on all cases at Open Book and Board of Review in 2017.
Fiscal Impact
The 2017 Revaluation services will cost $127,500 with the cost evenly split between
2016 and 2017 budget years. The City's 2016 Budget includes the first 50% of the
$127,500, or $63,750. This contract will obligate the City to budget another $63,750 in
the 2017 budget year to complete the contract.
Recommendation
The City Council approves the contract with Tyler Technology for 2017 Revaluation
assessment services for $127,500.
Respectfully Submitted,
Allen Davis
Community Development Director
Approved,
Mark Rohloff
City Manager
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Additional Services Addendum
This Additional Services Addendum ( "Addendum ") is made by and between Tyler Technologies, Inc. with offices at
One Tyler Way, Moraine, OH 45439 ( "Tyler ") and the City of Oshkosh, Wisconsin with offices at 215 Church Avenue,
Oshkosh, WI 54903 -1130 ( "Client ").
WHEREAS, Tyler and Client are parties to an original agreement for Assessment and Commercial Services dated on or
about January 7, 2015, as extended ( "Agreement "); and
WHEREAS, Tyler and Client desire to exercise the Additional Products and Services clause under Section 4 —
Compensation of the Agreement to add 2017 Commercial Revaluation and Additional Services as described in Exhibit
A attached hereto;
NOW THEREFORE, in consideration of the mutual promises hereinafter contained, Tyler and Client agree as follows:
Tyler will provide the Client with the 2017 Commercial Revaluation, Support and Training Services, as
described herein in Exhibit A.
2. In consideration for the services to be performed under this Addendum, the Client agrees to pay Tyler a total
fee of One Hundred Twenty -Seven Thousand Five Hundred Dollars ($127,500.00).
3. Tyler will invoice the Client for fifty percent (50 %) of the total project fees, for a total of $63,750, on or about
December 31, 2016. Tyler will invoice the Client for the balance of the project fees, in the amount of $63,750,
upon the completion of the project services, but no later than November 1, 2017.
This payment schedule is for the convenience of the Client and is not necessarily a reflection of the actual
schedule of when services will be performed. In the event that the Client terminates the Addendum or the
Agreement prior to the completion of the services to be performed pursuant to this Addendum, the Client
agrees that fees for all services performed and not yet invoiced become immediately due. Tyler will maintain
monthly progress reports of actual services performed and the fee associated with said services. These
monthly progress reports will allow Tyler to deliver an invoice covering all services performed but not yet
invoiced in the event of early termination. All services to be performed pursuant to this Addendum will be
completed by November 1, 2017.
4. The Client agrees to provide Tyler with written notice within thirty (30) days of becoming aware of a dispute.
Client agrees to cooperate with Tyler in trying to reasonably resolve all disputes, including, if requested by
either party, appointing a senior representative to meet and engage in good faith negotiations with Tyler's
appointed senior representative. Senior representatives will convene within thirty (30) days of the written
dispute notice, unless otherwise agreed. All meetings and discussions between senior representatives will be
deemed confidential settlement discussions not subject to disclosure under Federal Rule of Evidence 408 or
any similar applicable state rule. If the parties fail to resolve the dispute, either party may assert its
respective rights and remedies in a court of competent jurisdiction. Nothing in this section shall prevent
either party from seeking necessary injunctive relief during the dispute resolution.
5. This Addendum shall be governed by and construed in accordance with the terms and conditions of the
Page 1 Tyler Technologies, Inc. — Additional Services Addendum May 2016
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Agreement.
6. All other terms and conditions of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Additional Services Addendum as of the date set forth
below ( "Effective Date ").
Tyler Technologies, Inc.
Appraisal & Tax Division
By:
Name:
Client: City of Oshkosh, WI
By:
Name:
Title: Date:
Page 2 Tyler Technologies, Inc. — Additional Services Addendum May 2016
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Statement of Work
Exhibit A— Statement of Work
The following Statement of Work details the services to be delivered by Tyler Technologies, Inc. to the Client under
this Additional Services Addendum. This Statement of Work is effective as of the Effective Date. Capitalized terms
not otherwise defined will have the meaning assigned to such terms in your Agreement.
Tyler will perform the following services under this Additional Services Addendum.
1.0 TECHNICAL ENVIRONMENT
Tyler will use the Client's IasWorld Computer Assisted Mass Appraisal (CAMA) System as a base for the work
performed under this Agreement. All office supply and computer system costs associated with the
processing of data shall be the responsibility of the Client.
2.0 PERSONNEL
All work will be performed by personnel certified by the State of Wisconsin, Department of Revenue. Tyler
will provide and update the Client with a listing of personnel assigned to the Project. The Client shall provide
Tyler Staff with identification cards consistent with the current City policy.
Tyler shall designate a qualified and responsible individual to supervise the commercial revaluation.
Tyler may assign other or additional project personnel to the revaluation subject to the approval of the
Client. The Client shall reserve the right to prohibit an employee of Tyler from participation in services under
this agreement, for good cause as it so shall determine. Tyler shall review any complaint relative to the
conduct of its employee(s). The Client may also review any such complaint. If the Client deems the
performance of any of the employees to be unsatisfactory, Tyler shall remove such employee(s) from work
upon written request from the Client, such request stating the reasons for removal.
3.0 ASSESSMENT MANUAL
Tyler shall make all commercial assessments in accordance with the Assessor's Manual as specified in
Sections 70.32(1) Wisconsin Statutes and shall be responsible for all final commercial values arrived at in
compliance with same. Additionally, the Company will follow the Interim Market Update (IMU) process
identified on page 4 -3 of the WPAM Volume 1.
4.0 DATA FOR EVALUATION
Tyler shall gather and analyze market value data including but not limited to, sales data, lease data, rental
rates, rates of return, operating statements, vacancy factors and construction costs for use in determining
property valuation standards pursuant to Section 70.32 of the Wisconsin Statutes. Data gathered will either
be noted on the property record cards or contained within supplements to the record cards.
5.0 PROPERTY RECORD CARDS
The Client and Tyler agree to use the property record card as designed and modified from time to time in the
Client's IasWorld CAMA Software.
6.0 NEIGHBORHOOD DELINEATION
Tyler shall update the existing neighborhood delineation for the commercial class properties as needed and
work with the City's GIS Department to create a color -coded map indicating the various neighborhood
designations. The neighborhood identification procedure shall conform to the Client's IasWorld CAMA
software product.
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APPROACHES TO VALUE
7.1 Type of Approach
Exhibit A— Statement of Work
Tyler shall consider those factors required by 70.32, Stats. including, but not limited to, the cost,
market, and income approaches in the valuation of all vacant and improved parcels of property.
7.2 Sales Analysis
Tyler shall analyze sales data in order to become familiar with prevailing market conditions, activity,
and specific transactions which may be utilized in determining the market value of competitive
properties throughout the City.
7.3 Income Analysis
In valuing income - producing properties, the Tyler shall collect information from owners, tenants,
realtors, financial institutions, and any other necessary sources, for use in the valuation process.
Data to be analyzed shall include actual and economic rents for each type of property, typical
vacancy rates, and typical operating expense ratios. All data shall be properly documented and
adequate records shall be prepared for each parcel showing the determination of value by the
income approach. For improved parcels, this shall include a reconstruction of income and expenses,
an estimate of remaining economic life, and the capitalization rate applied. Capitalization rates shall
be accurately documented by information obtained from the market. Any documentation used in
establishing any of the foregoing shall become property of the Client.
IMPROVEMENT VALUATION
Tyler proposes to follow the guidelines listed below in determining improvement revaluation. The factors
under Wisconsin Statute 70.32 shall be considered for all real properties.
8.1 Valuation Approach
Tyler shall value improvements in accordance with the Wisconsin Property Assessment Manual and
the Client's IasWorld CAMA System. The three (3) industry- recognized approaches to value; i.e., cost,
income and market shall be considered by Tyler for all commercial parcels.
8.2 Commercial Approach
In valuing commercial improvements, property record cards shall be completed by Tyler as
recommended for use with the Client's IasWorld CAMA System. Proper base costs shall be selected
as appropriate and adjusted to adequately reflect variations from base building costs. When many
adjustments are necessary to base costs, the property is a special purpose building, or certain
characteristics make it impossible to value via the Client's IasWorld CAMA System, the unit in place
method as presented in the Marshall & Swift Valuation Service Manual shall be used. All accrued
depreciation, including physical deterioration, functional obsolescence, and economic obsolescence,
must be accurately documented by the market and deducted from current replacement costs.
LAND VALUATION
Tyler shall provide the following approach to the revaluation of land characteristics:
9.1 Basic Unit Values
Basic unit values shall be determined for commercial lands from an analysis of sales, rents, leases,
and other available market data. In the analysis of market data, adequate records will be prepared
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Exhibit A— Statement of Work
showing data collected and unit value determinations. Such records shall be left with the Client. The
Client's IasWorld Land Tables will be updated accordingly.
Having determined basic unit values, Tyler shall apply such to each parcel, making adjustments to
account for particular characteristics of the site in the Client's IasWorld CAMA System.
Maps and schedules will be prepared indicating unit values used for the commercial revaluation.
These maps and schedules shall be left with and be the property of the Client.
9.2 Land Tables
A copy of all charts, schedules and tables, not previously referred to and used in the valuation of
commercial lands shall be left with the Client.
10.0 DATA MANAGEMENT
This section will outline Tyler's procedures for collecting and encoding the data collected into the Client's
IasWorld CAMA System.
10.1 Tyler shall encode or perform data maintenance on commercial class property records in the Client's
IasWorld CAMA System as needed as part of the revaluation.
10.2 Tyler is aware that some properties may have to be inspected because of permit alterations and /or
additions to the improvements. There will be no additional fee for such inspection or subsequent
revaluation required because of such alterations and /or additions.
10.3 The Client and Tyler shall cooperate to avoid duplication and confusion to the property owner and to
see that all permit alterations and additions are accounted for in the revaluation program.
10.4 Tyler shall present a list of all partial assessments of improvements as of January 1, 2017, to the
Client, so that they may be readily identified and assessed for the subsequent assessment roll.
11.0 FINAL ANALYSIS
Prior to the Open Book conferences, the Company will perform a final analysis on commercial properties and
make the proper correlation of values between the cost, market and income approaches to value. This
review will cover each parcel so as to eliminate errors in computations that may have occurred, to ensure
uniformity amongst property types, to verify building classification and depreciation estimates regarding
physical, functional, and economic obsolescence, and to be sure that all lands and improvements are
properly accounted for.
For commercial properties where a determination of value has been made via the income approach, the
value shall also be reviewed to account and adjust for factors which may have a direct bearing on the market
value and /or equitable relationship to other properties. As part of this review, Tyler shall consider the
indicated gross income, expenses, vacancy rate, net income and capitalization rate of each property.
Physical, economic and functional obsolescence affecting the income approach to value shall be considered
when arriving at the final income approach value.
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12.0 RESIDENTIAL SUPERVISION
Exhibit A— Statement of Work
Tyler shall provide guidance and supervision to City staff relating to the residential class properties for the
revaluation. The goal is for Tyler to provide such guidance and supervision relating to residential valuation in
order to produce sound, uniform values. The guidance and supervision is expected to not surpass fifteen
(15) working days and shall include, but not be limited to, as requested by the City:
a. Guidance and supervision in residential land and cost approach analysis.
b. Guidance and supervision relating to market modeling.
c. Guidance and supervision relating to sales comparison selection process.
d. Guidance and supervision on the valuation review process.
e. Guidance and supervision on quality reports to run prior to mailing notices of assessment.
13.0 CLIENT TO REVIEW ASSESSMENTS
Prior to sending notices of assessment and Open Book conferences, and upon request by the Client, the
Client shall have ample time to review assessed values on commercial class property. At the discretion of the
Client, such review may include property record cards and all other material prepared for the revaluation.
14.0 OPEN BOOK CONFERENCE
Upon completion of the Client's review of assessments and prior to the completion of the assessment rolls,
Tyler shall hold Open Book conferences for the purpose of enabling property owners or their agents to
review and compare the assessed values. Tyler shall be responsible for conducting all Open Book
appointments for commercial class properties and the City shall be responsible for residential class
properties. The Statutory Assessor may assist with commercial class Open Book appointments or residential
class Open Book appointments.
A sufficient number of qualified Tyler personnel, approved by the Client, will be available to conduct Open
Book conferences, Monday through Friday, at a place designated by the Client. The Open Book conferences
will be held in an orderly manner with the least confusion to the property owner. Conferences on an
appointment basis are the preferred method to attain this result. The Client and Tyler shall mutually agree
upon the date and hours of conferences to ensure that all property owners have an equal opportunity to
review their assessment. Hearing times shall include evening hours.
Tyler will prepare and send a notice by first class mail to each property owner at the last known mailing
address. The notice form used shall be that approved by the Department of Revenue as provided in Section
70.365 to be supplied by the Client. Tyler shall also indicate on the notice, or attach to the notice; the time
and place the Open Book conference will be held. Mailing shall be five (5) days prior to the first day of
conferences for the convenience of the property owners. Expenses related to the printing and mailing of the
notices shall be the responsibility of the Client.
15.0 BOARD OF REVIEW
A certified member(s) of Tyler's field staff will attend meetings of the Board of Review to explain and defend
the assessed value of commercial appeals and be prepared to testify under oath in regard to such values.
A certified member(s) of Tyler's field staff will hold onsite office hours from 8:00am to 4:30pm one day prior
to the first meeting of the Board of Review.
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Exhibit A— Statement of Work
In the event of appeal to the Department of Revenue or the courts, it is agreed that Tyler shall make available
a qualified representative(s) upon request from the Client, at no additional cost, to furnish testimony in
defense of the values established by the revaluation in all cases which might be filed within one (1) year of
the completion date specified for the revaluation.
16.0 SUPPORT OF REVALUATION SERVICES BY THE CLIENT
This section will outline the responsibilities of the Client to ensure that a successful revaluation program is
implemented.
16.1 Access to Records
The Client shall allow access and make available to Tyler, Client records such as, but not limited to,
previous assessment rolls, sewer and water layouts, building permits, tax records, building plans,
records of special assessments, plats, and any other maps currently in possession of the Client, at no
cost.
16.2 Maps
Upon specific request, the Client shall furnish one (1) sets of plat maps and one (1) zoning map and
any other maps that are mutually agreed by Client and Tyler to complete a successful project.
16.3 Notices for New Assessments
To update the IasWorld database with the most current known name and mailing address prior to
sending notices of assessment. The cost of mailing the notices of assessment shall be the
responsibility of the Client.
16.4 Miscellaneous General Agreements
The Client's governing body shall refrain from interfering with or influencing any value estimate by
Tyler.
The Client shall aid Tyler in a responsible promotion of public information concerning the work under
this Agreement.
16.5 Hardware /Software Requirements
The Client shall provide, maintain, and assure reasonable Tyler access to the data processing facilities
on which Tyler will encode the data for the revaluation.
The Client shall provide, at no cost to Tyler, suitable office space and all necessary accoutrements to
allow Tyler to perform the functions of the commercial revaluation, including but not limited to
desks, chairs, a shared personal computer and printer.
17.0 GENERAL PROVISIONS
17.1 Tyler Responsibilities
Tyler will begin work upon on the commercial revaluation on or before August 1, 2016.
Tyler shall complete fifty percent (50 %) of the commercial revaluation and invoice the Client for
same by December 31, 2016.
Tyler shall complete the commercial revaluation by May 15, 2017 with the exception of the Open
Book and Board of Review.
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Exhibit A— Statement of Work
The following is an outline of milestone dates for activities for the commercial revaluation.
• October 31, 2016 — Exterior drive -by reviews (pre- review) of selected commercial properties
complete.
• December 31, 2016 — Initial land and cost analysis complete.
• January 2, 2017 — Income and Expense forms mailed.
• March 3, 2017 — Income approach analysis complete, income approach tables loaded.
• April 28, 2017 — Individual commercial values reviewed and preliminary values complete.
• May 3, 2017 — Final quality checks complete and notice ready.
• May 8, 2017 - Notices of Assessment mailed.
• June 12, 2017 — Open Book complete.
• July 12, 2017 — Board of Review begins
18.0 Contract Deliverables
Within fourteen (14) days of the final adjournment of the Board of Review, Tyler shall turn over to the Client all
records prepared for the revaluation including, but not limited to, (a) property record cards, computer generated
output, maps, and any other schedules or forms, (b) all records and materials obtained for the Client and not
previously returned to include maps, plans, and Assessor's records, and (c) materials specifically obtained and /or
used for performance of assessment work for the Client including, but not limited to, aerial photos, land value maps,
depth factor tables, copies of leases, correspondence with property owners, sales data, rental schedules,
capitalization rate data, gross income multiplier data, and operating statements of income properties.
Page 9 Tyler Technologies, Inc. — Additional Services Addendum May 2016