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HomeMy WebLinkAboutMINUTES - 11042003 - C69 TO: THE BOARD OF SUPERVISORS Centra FROM: John Sweeten, County Administrator and Costa Gus S. Kramer, County Assessor County DATE: November 4, 2003 ee& SUBJECT: APPROVE STATE PROPERTY TAX ADMINISTRATION CONTRACT SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: Approve and authorize the Chair of the 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 FY 2003-04 for improving operations and to offset funding shortfalls. All interest earned by these funds while in the trust account will be credited to the trust account for enhancing the property tax administration system. FISCAL IMPACT: This action would allow the County to participate in the State-County Property Tax Administration Grant Program, which provides $2,022,000 in funding to offset costs associated with enhancing and maintaining property tax administration programs. REASONS FOR RECOMMENDATION/BACKGROUND: On November 23, 1995, the Board approved the County's participation in the State-County Property Tax Administration Loan Program. The loan program was initiated under Assembly Bill 818, and made available over $2 million to the County in fiscal years 1995-96, 1996-97 and 1997-98. Subsequent Assembly Bills extended the program through fiscal year 2001-02. Since fiscal year 1995-96, the Assessor's Office has received $2,022,400 annually in funding in the form of a loan, which was repaid through the completion of certain work requirements contractually agreed upon with the State. Assembly Bill 589, enacted in October of 2001, created the State-County Property Tax Administration Grant Program that provides the same level of funding beginning with fiscal year 2002-03 through 2006-07, and requires completion of work requirements to be eligible for funding in future years. The Assessor's Office plans to use the funds received from the State to offset staffing, consultant and information technology project costs to enhance the County's property tax administration system. On January 7, 2003,the Board approved the County's participation in the StateCounty Property Tax Administration Grant Program. The Assessor's Office has developed a performance and spending plan for 200304 that has been approved by the State Department of Finance and will result in funding within 30 days after the contract has been signed by all parties. CONSEQUENCES OF NEGATIVE ACTION: Denial of this action would prevent the County from participating in the State-County Property Tax Administration Grant Program and from receiving $2 million in funding for the Assessor's Office. CONTINUED ON ATTACHMENT: LYES SIGNATURE: L�_ECOMMENDATION OF COUNTY ADMINISTRATORECOM ENDATION OF BOARD COMMITTEE '-APPROVE OTHER SIGNATURE(S): ACTION OF BOA ' O i �' � �3 ,t' 4'. `�`r'APPROVED AS RECOMMENDED OTHE-R1 VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE ' AND CORRECT COPY OF AN ACTION TAKEN UNANIMOUSABSENT " "' ( } AND ENTERED ON THE MINUTES OF THE BOARD AYES NOES OF SUPERVISORS ON THE DATE SHOWN, ABSENT ABSTAIN Contact: Lori Koch (925) 313-7503 ATTESTED CC: Administrator(T.Enea) John Sweeten,CLERK OF THE BOARD OF ,Assessor SUPERVISORS AND COUNTY ADMINISTRATOR Auditor-Controller County Counsel ' BY ff s° 4 „� DEPUTY AGREEMENT FOR NATE-COUNTY PROPERTY TAX ADMINISTRATION PROGRAM This Agreement is entered into this day of , 2003 by and between the County of Contra Costa(County)and the State Department of Finance(State). WITNESSETH : WHEREAS, Revenue and Taxation Code Section 95.35 provides that upon recommendation 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 Assessor has consulted with the County Tax Collector and the County Auditor-Controller to discuss the needs of the Property Tax Administration Program during the term of this agreement;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 30,2005. 2. GRANT AMOUNT The State agrees to make available to the County a grant in the amount of$2,022,000 for fiscal year 2003-04. 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 the funds to supplant the Assessor's base year 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 grant 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. In a county in which the 1994-95 fiscal year funding level for the assessor's office was higher than the 1993-94 fiscal year level, the 1993- 94 fiscal year staffing and funding levels shall be considered the base year for purposes of this section. 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 are as follows: Gross Appropriation $7,503,192 Total Budgeted Positions 118 4. RECEIPT OF FUNDING In fiscal year 2003-04, the County shall receive payment of$2,022,000 within thirty(30)days after the approval of this agreement by both parties. To participate in the program in fiscal years 2004-05 through 2006-07 the County is required to provide written notice to the State. The notice will specify the amount of the grant request and shall be signed by the County's Project Director and Chief Administrative Officer. The State shall make payment of the approved grant amount within thirty (30) days after receipt of the Auditor-Controller's verified calculations establishing that the County has satisfied its prior year performance requirements as specified in Section 5. 5. SATISFACTORY PERFORMANCE The County is deemed to have satisfactorily met its performance requirements where the result of the following computations is equal to or exceeds the grant amount received by the County: (a) Beginning with the fiscal year 2002-03 roll closure and annually thereafter, the County shall (1) compute, to the extent possible, the total value change in the following categories and (2) add all secured and unsecured personal property and fixture values - Transfers - New Construction - Supplemental value added (estimated at 50% of the transfer and new construction values) - Mandatory and non-mandatory audits - Proposition 8 Restorations - Assessment Appeals values (the difference between the taxpayers' opinion of value and the Assessment Appeals Boards' determinations of values finalized during that fiscal year) 2 (b) The total of 5(a) shall be multiplied by a tax rate of I%to estimate the total property tax revenue impact of these components. (c) This revenue amount shall be factored by the percentage which is derived when dividing the grant amount by the Assessor's annual total budget. (d) This amount is then factored by the percentage of the schools' share of added revenue. Where this final result, the schools' share of added revenue, is equal to or greater than the grant amount to the County, the County's performance under this contract shall be deemed met. 6. RENEGOTIATION OF THE DEFINITION OF SATISFACTORY PERFORMANCE At the request of the County, the State agrees to renegotiate in good faith the definition of satisfactory performance as specified in Section 5, if there is any major misfortune or calamity occurring in the County affecting I%of the assessable parcels in the County. 7. PROPOSED USE OF GRANT The County agrees 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, including accrued interest, pursuant to this program shall be deposited into the Property Tax Administration Program trust fund to be used as required by Revenue and Taxation Code Section 95.35. Any fiends 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 95.35. It is also understood that upon satisfaction of the terms set forth in Section 5 for each annual grant, the State will have no fi iher 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 grant proceeds, the County may, at its option, return to the State all or a portion of any unspent grant proceeds. 3 8. FAILURE TO MEET SATISFACTORY PERFORMANCE REQUIREMENTS The State is not obligated to make the grant in fiscal years 2004-05 through 2006-07 if the County has not satisfied its performance requirements as established in Section 5, or renegotiated the definition of satisfactory performance. The State may make a grant in any year of this program in a lesser amount than that requested by the County if the State determines that the County would be unable to fully meet its performance requirements as established in Section 5. 9. REPORTING CRITERIA The County will also provide to the State, by September 30th of the following fiscal year, a report showing the schools' share of added revenue as calculated in Section 5. 10. 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: Lori Koch,Assistant County Assessor Contra Costa County Office of the Assessor 2530 Arnold Drive, Suite 400 Martinez,CA 94553 (925) 313-7503 County shall notify the State in writing of any change in the name or address of County's Project Director. 11. 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. 4 The State's Project Director for this agreement will be: Connie Squires,Program Budget Manager State of California Department of Finance-Local Government Unit 915 L. Street Sacramento,CA 95814 (916)322-2263 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 of the State's Project Director. 12. 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. 13. 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 it may become necessary. Any such revisions shall be accomplished only with the written approval of the Assessor, the County and the State. 14. NOTICES 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. 5 . y 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-Local Government Unit 2530 Arnold Drive,Suite 400 915 L. Street Martinez,CA 94553 Sacramento, CA 95814 Attn: Lori Koch Attn: Connie Squires Assistant County Assessor Program Budget Manager Contra Costa County Office of County Administrator 651 Pine Street, 1191 Floor Martinez,CA 94553 Attn: John Sweeten County Administrator IN WITNESS WHEREOF: The County of Contra Costa Board of Supervisors has caused this agreement to be subscribed by the Chairperson 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 AbuLLzibe r ,2003. COUNTY OF CONTRA COSTA B Y_ �- Chair, Board of Supervisors 6 ATTEST: John Sweeten Clerk of the Board of Supervisors and County Administrator State: State Department of Finance By By APPROVED AS TO FORM BY COUNTY COUNSEL: Silvana Marchesi County Counsel By Exhibit A CONTRA COSTA COUNTY OFFICE OF THE ASSESSOR PROPERTY TAX ADMINISTRATION PROGRAM ESTIMATED GRANT ALLOCATION FY 2003-04 LOAN AMOUNT $2,0225,000 FY 2002-03 CARRY FORWARD $82,682 Staffing. Appraisal Staff(I Supervising Appraiser, 2 Appraisers, 1 Auditor) $410,689 Technical Staff(6 Technicians) $463,829 Appraisal/Support Staff Overtime $20,000 Contract Appraisers and Consultants $125,000 Consultants for Major Assessment Appeals $400,000 Total Staffing $1,419,518 Systems and Processing Modifications and Training: Hardware, Software and Maintenance,Furniture $100,000 Land Information System Upgrades $200,164 GIS/Parcel Mapping Implementation $50,000 Imaging System $300,000 Technical Training $35,000 Total Systems and Processing $685,164 TOTAL ALLOCATION $2,104,682 Estimates do not include attrition, step increases and overhead. Attrition will be back filled to maintain the contractually agreed to staffing level. The Auditor-Controller and Treasurer-Tax Collector will bill the Assessor for reasonable and necessary costs directly related to achieving the performance requirements outlined in Section 5 of the contractual agreement between the County and State, and meeting the requirements of Section 95.35 of the Revenue and Taxation Code.