HomeMy WebLinkAboutMINUTES - 10221996 - C33 TO: BOARD OF SUPERVISORS
Contra
FROM: PHIL BATCHELOR, COUNTY ADMINISTRATOR AND Costa
GUS KRAMER, ASSESSOR 3
�. . :.:. .. ,�o�=
DATE: OCTOBER 22 1996 `' County
SUBJECT: APPROVE STATE PROPERTY TAX ADMINISTRATION
CONTRACT
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
1. Approve and authorize the Chair, Board of Supervisors, to execute a contract
between Contra Costa County and the State Department of Finance. This contract
provides $2,022,000 in Property Tax Administration Funds to the Assessor's Office
in 1996-97 and possible additional funding in 1997-98 for, improving operations and
to offset funding shortfalls.
BACKGROUND/REASONS FOR RECOMMENDATIONS
At the November 23, 1995 Board meeting, the Board approved the County's participation
in AB818 which is the source of the Property Tax Administration funding. AB818 makes
available over$2 million to the County in fiscal years 1995-96, 1996-97, and 1997-98. If
the Assessor's Office performs annually at the anticipated level, these funds will not have
to be repaid to the State. The Assessor's Office received the funds in 1995-96 and
performed at.a level where these funds will not have to be repaid. The Assessor's Office
in coordination with the Auditor, County Administrator and County Counsel has developed
a performance and spending plan for 1996-97 that has been approved by the State
Department of Finance and will receive funding within 30 days after the contract has been
signed by both parties.
See attached contract.
CONTINUED ON ATTACHMENT: YES SIGNATURE: K o.�
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON JARS APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
1 HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT ► AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
CC: Assessor ATTESTED My 2 2 19�
County Counsel PHIL BATCHELOR.CLERK OF THE BOARD OF
County Administrator SUPERVISORS AND COUNTY ADMINISTRATOR
BY ,DEPUTY
M382 (10/88)
C,3� ia�as-9k
October 7, 1996
AGREEMENT FOR STATE-COUNTY
PROPERTY TAX ADMINISTRATION PROGRAM
THIS AGREEMENT is entered into this day of , 1996, by
and between the County of Contra Costa (County) and the State Department of Finance
(State).
WITNESSETH:
WHEREAS, Revenue and Taxation Code Section 95.31 provides that upon
recommendations of the Assessor, and by resolution of the Board of Supervisors, the
County may elect to participate in the State-County Property Tax Administration Program,
administered by the State; and
WHEREAS, the County elects to participate in the State-County Property Tax Administration
Program and to apply for a loan of$2,022,000 for fiscal year 1996-97 and the County may
make a similar election for fiscal year 1997-98, or may elect to apply for a loan in a lesser
amount; and
WHEREAS,the County finds it necessary to apply for this loan to enhance its property tax
administration system; reduce backlog of new construction; prepare a defense for each
appeals case that is scheduled by the Assessment Appeals Board; enroll Proposition 8
declines in value; reduce backlog of non-mandatory audits; and maximize value enrollment
capabilities; and
WHEREAS, in order to participate in the State-County Property Tax Administration Program,
the County must enter into an agreement with the State;
NOW, THEREFORE, the parties agree as follows:
1. PERIOD OF AGREEMENT
This agreement shall commence upon the date of execution by both parties and shall
expire on June 30, 2000.
2. LOAN AMOUNT
The State agrees to make available to the County a loan in the amount of$2,022,000
for fiscal year 1996-97. If the County has met the terms and conditions of this
agreement and the requirements of Section 95.31 of the Revenue and Taxation
Code, the State further agrees to make available to the County an additional loan of
up to $2,022,000 for fiscal year 1997-98.
3. COUNTY REQUIREMENTS
The County agrees to use the funds received from the State to enhance the property
tax administration system. The County agrees not to use this loan to supplant the
Assessor's current level of funding. The County understands and agrees that in
order for the County to be eligible to participate in this State-County Property Tax
Administration Program, it must maintain a base staffing, including contract staff, and
total funding level in the Assessor's Office, independent of the loan proceeds
provided pursuant to this Act, equal to the levels in the 1994-95 fiscal year exclusive
of the amounts provided to the Assessor's Office pursuant to item 9100-102-001 of
the Budget Act of 1994.
The 1994-95 fiscal year base funding and staffing levels, as determined by the
Assessor's Office and the Chief Administrative Office of the County, which shall be
deemed to satisfy this requirement is as follows:
Gross Appropriations $7,503,192
Total Budgeted Positions 118
4. OPTION TO PARTICIPATE
.The County may elect to participate in the loan program in fiscal year 1997-98. The
County is required to provide written notice to the State in each year of its election
to receive the loan and the notice shall be signed by the County's Project Director
and Chief Administrative Officer. The notice will also specify the amount of the loan
which may be less than $2,022,000.
The State is not obligated to make the loan in fiscal year 1997-98 if the County has
not repaid the prior year's loan as established in Section 6, or renegotiated the
repayment definition.
The State may make a loan in fiscal year 1997-98 in a lesser amount than that
requested by the County if the State determines that the County would be unable to
repay the full amount of the requested loans.
5. RECEIPT OF FUNDING
In fiscal year 1996-97, the County shall receive payment of$2,022,000 within thirty
(30) days after the approval of this agreement by both parties. For the 1997-98 fiscal
year, the State shall make payment of loan amounts after receipt of the notice from
the County required in Section 4 and within 45 days after receipt of the Auditor-
Controller-verified workload and assessed value change data required in Section 10.
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6. DEFINITION OF REPAYMENT
Repayment of the loan shall be evaluated based upon the Assessor's performance
under the following criteria:
(a) Reduces the July 1, 1996 backlog of 12,376 new construction assessments
by June 30 of each fiscal year as stated below by completing the following
accumulated number of reassessments. In 1997 in addition to picking up the
new construction we are also updating the property records to improve our
characteristics file used in evaluating comparable sales. (Weighted 15%for
determining percentage of success.)
Accumulated Number
Accumulated of Reassessments Backlog
Year Workload (Est.) Completed (Est.l oal
1996-97 24,230 13,554 10,676
1997-98 35,025* 26,028* 8,976
(b) Reduces the July 1, 1996 backlog of 310 appeal cases. We will Prepare a
defense for all assessment appeal cases that are scheduled by the
Assessment Appeals Board. (Weighted 60%for determining percentage of
success.)
Accumulated Accumulated Goal
Appeals Appeals (Appeals Not
Year Scheduled (Est. Defended (Est.l Defended
1996-97 539 539 0
1997-98 869* 869* 0
The potential assessed value loss for year 1996-97 is in excess of$2.5 billion.
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(c) Reduces the July 1, 1996 backlog of 4,379 Proposition 8 computer selected
and taxpayer requested reductions in value by June 30 of each fiscal year as
stated below by completing the following accumulated number of
reassessments. (Weighted 10%for determining percentage of success.)
Accumulated Number
Accumulated of Reassessments Backlog
Year Workload Est.) Completed (Est.) Goal
1996-97 46,345 43,666 2,679
1997-98 56,294* 55,845* 449
(d) Reduces the July 1, 1996 backlog of 194 non-mandatory audits by June 30
of each fiscal year as stated below by completing the following accumulated
number of audits. The non-mandatory audits are a result of unreturned
Business Property Statements. (Weighted 15%for determining percentage
of success.)
Accumulated Number
Accumulated of Audits Backlog
Year Workload (Est.) Completed (Est.) Goal
1996-97 1,163 1,044 119
1997-98 1,603* 1,569* 44
*Estimates for fiscal years 1997-98 are for illustrative purposes only and will be revised in
August 1997.
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e-33
In measuring payment, the following formula shall be used:
A + (B-C) "A" = The actual accumulated number of reassessments/audits
A completed or assessment appeals defended
"B" = The backlog goal/appeals not defended
"C" = The achieved backlog/appeals not defended
For example:
If the achieved backlog for (a) above for 1996-97 is 11,000, the above formula will produce
the following:
10,676 - 11,000 = -324; 13,554 - 324 = 13,251/13,554 = 97.76%
If the achieved backlog for (a) above for 1996-97 is 10,500, the above formula will produce
the following:
10,676 - 10,500 = +176; 13,554 + 176 = 13,730/13,554 = 101.30%
The percentage of success including percentages over 100, for each of the four goals ("a"
through "d") will be weighted according to the percentages identified in each category to
determine the total percentage of success. If this total is 95% or greater, the loan shall be
considered to have been repaid. If the percentage is less than 95%, that percentage
multiplied by the loan amount shall be considered the amount that has been repaid.
If the workload increases for items ("a" through "d") of section 6 by 10% or more the target
backlogs for each year will be automatically increased by the numeric amount of the
workload increase.
In addition, the Assessor will continue compliance with section 469 of the Revenue and
Taxation Code, and continue processing and monitoring Proposition 8 decline in value
assessments.
7. RENEGOTIATION OF THE REPAYMENT DEFINITION
At the request of the County, the State agrees to renegotiate in good faith the
definition of repayment specified in Section 6, if there is any major misfortune or
calamity occurring in the County proclaimed by the Governor to be in a state of
disaster and affecting 1% of the assessable parcels in the County. If an agreement
is not reached, the provisions of Section 6 will apply; however, the repayment date
will be extended to June 30 of the fiscal year following the year in which the loan is
made and, upon request, the County will be granted a repayment extension as
provided in Section 95.31 of the Revenue and Taxation Code.
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8. PROPOSED USE OF LOAN
The County plans to use the funds received from the State to fund appraisal, clerical
and support positions, overtime as needed, and to enhance its property tax
administration system, as specified in Exhibit A.
It is understood and agreed that funds received by the County pursuant to this
program shall be deposited into a trust account to be used as required by Revenue
and Taxation Code Section 95.31. Any funds remaining in the account at the end of
each annual term may be rolled over to the next fiscal year for authorized uses
consistent with the provisions of Section 95.31.
It is also understood that upon satisfaction of the terms set forth in Section 6 as
repayment for each annual loan, the State will have no further claim on these funds
provided the County continues to meet the requirements stipulated in Section 3.
However, in the event that the County has not expended all of the loan proceeds, the
County may, at its option, return to the State all or a portion of any unspent loan
proceeds to reduce the amount of the loan.
9. FAILURE TO REPAY LOAN AMOUNT
If the County fails to repay the loan as specified in Sections 6 and 7 the State shall
notify the County and Controller. The Controller shall make an apportionment to the
General Fund on behalf of the County in the amount of that required payment for the
purpose of making that payment. The Controller shall make that payment only from
monies credited to the Motor Vehicle License Fee Account in the Transportation Tax
Fund to which the County is entitled at the time under Chapter 5 (commencing with
Section 11001) of Part 5 of Division 2 of the Revenue and Taxation Code, and shall
thereupon reduce, by the payment,the subsequent allocation or allocations to which
the County would otherwise be entitled under that chapter. It is understood and
agreed that partial payment of the loan will be accepted by the State in accordance
with the formula established by Section 6. The State shall be entitled to recover only
that portion of the loan considered unpaid as established by Section 6.
10. REPORTING CRITERIA
The County agrees to provide to the State, by March 31 of each fiscal year, an
Interim Report listing the projected impact of the increased funding in the current and
subsequent fiscal year regarding the number of reassessments/audits completed,
appeals defended, June 30 backlog, and the average increment of assessed value
change associated with items (a)through (d) of Section 6 of this contract, plus similar
information relating to Proposition 8 "Decline in Value" claims.
The County will also provide to the State by July 15 of the following fiscal year a
report listing the actual workload, number of reassessments/audits completed or
appeals defended, the achieved June 30 backlog, and the average increment of
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assessed value change associated with items (a) through (d) of Section 6 of this
contract, plus similar information relating to Proposition 8 "Decline in Value" claims.
This report will be verified by the County's Auditor-Controller.
11. PROJECT RESPONSIBILITY- COUNTY
County will provide a Project Director who will be responsible for ensuring the
objectives under this agreement are met. The Project Director will monitor County
performance.
County's Project Director will serve as liaison with the State's Project Director on an
as needed basis.
County's Project Director shall provide direction to the State in the areas relating to
County policy, and information and procedural requirements.
County's Project Director for this agreement shall be:
Bob Nash, Assistant Assessor
Office of the Assessor
834 Court Street
Martinez, CA 94553
(510) 313-7430
County shall notify the State in writing of any change in the name or address of
County's Project Director.
12. PROJECT RESPONSIBILITY- STATE
The State will provide a Project Director who will be responsible for State
performance under this agreement. The Project Director shall be a full-time
employee of the State.
The State's Project Director for this agreement will be:
Diane Cummins, Deputy Director
State of California
Department of Finance
State Capitol, Room 1145
Sacramento, CA 95814
(916) 445-4141
The State's Project Director will serve as liaison with County's Project Director on an
as needed basis.
The State shall notify the County in writing of any changes in the name or address
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of the State's Project Director.
13. EXCLUSIVE AGREEMENT
This agreement constitutes the complete and exclusive statement of understanding
between the parties which supersedes all previous agreements, written or oral, and
all other communications between the parties relating to the subject matter of this
agreement.
14. CHANGES AND AMENDMENTS
The County and the State reserve the right to change any portion of the work
required under this agreement or to amend such other items and conditions as may
become necessary. Any such revisions shall be accomplished only with the written
approval of the Contra Costa County Board of Supervisors and the State.
15. NOTICE
All notices or demands required or permitted to be given or made hereunder shall
be in writing and shall be deemed to have been given if made by hand delivery with
signed receipt, or as shown on the receipt when mailed by first-class, registered or
certified mail, postage prepaid, addressed to the County and State at their respective
addresses designated below or at such other address as County or State shall have
furnished in writing to the other.
The designated addresses of respective parties for the purpose of notice are as
follows:
COUNTY: STATE:
Contra Costa County State of California
Office of the Assessor Department of Finance
834 Court Street State Capitol, Rm. 1145
Martinez, CA 94553 Sacramento, CA 95814
Attn: Bob Nash Attn: Diane Cummins
Assistant Assessor Deputy Director
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. . . X33
Contra Costa County
Office of County Administrator
651 Pine Street
Martinez, CA 94553
Attn: Phil Batchelor
County Administrator
IN WITNESS WHEREOF:
The County of Contra Costa Board of Supervisors has caused this agreement to be
subscribed by the chairman and the seal of said Board to be hereto affixed and attested by
the Executive Officer and Clerk hereof, and the State has caused this agreement to be
signed by its duly authorized officer this day of , 1996.
COUN OFC=Supervisors
By
C it and of
ATTEST: Phil Batchelor, Clerk State: State Department of Finance
of the Board of Supervisors and
County Administrator io-as—i99,�
BY By
Deputy
APPROVED AS TO FORM BY
COUNTY COUNSEL:
VICTOR J. WESTMAN
By (,
putt'
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. Exhibit A OFFICE OF THE ASSESSOR C
PROPERTY TAX ADMINISTRATION PROGRAM
ESTIMATED LOAN ALLOCATION
FY 1996-97
LOAN AMOUNT $2,022,000
Staffing:
Appraisal Staff (1 Supervising Appraiser, 2 Appraisers, 1 Auditor) 224,940
Technician Staff(3 Technicians) 152,021
Funding to maintain 94-95 Budgeted Positions 593,400
Appraisal Staff Overtime 44,075
Temporary Retiree Staff 46,400
Project Administrative Aide 36,239
Contract Appraisers & Consultants 100,000
Consultants for Major Assessment Appeals* 500,000
Total Staffing 1,697,075
Systems and Processing Modifications &Training:
Hardware, Software, and maintenance 68,925
Contracts** 200,000
Technical Training for Appraisal Staff 56,000
Total Systems and Processing $324,925
TOTAL ALLOCATION $2,022,000
TOTAL 1995-96 CARRIED FORWARD $ 511,882
Estimates do not include attrition, step increases, and overhead. Attrition will be
back filled to maintain the contractually agreed to staffing level.
The $593,400 funding will help to attain and maintain 94-95 staffing level.
The Auditor-Controller and Treasurer-Tax Collector will bill the Assessor for
reasonable and necessary costs directly related to achieving the performance goals
of Section 6 of the contractual agreement between the County and State, and
meeting the requirements of Section 95.31 of the Revenue and Taxation Code.
* At this time the exact amount that may be necessary for industry expert appraisers
&other professionals for major appeals cannot be determined. To the extent these
funds are not necessary for such assistance, it is agreed that the Assessor may use
up to$300,000 of this amount to digitize parcel maps. State Department of Finance
will be notified of any change in expenditures.
** Analysis and programming for changes to the Secured and Unsecured Systems to
accommodate the new Lien Year.
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