HomeMy WebLinkAboutMINUTES - 02061996 - D3 TOso ARD OF SUPERVISORS D- 3
FRW: PhTl Batchelor, County Administrator and I.Jwtr
Gus Kramer, Assessor costa
DATE: February 6, 1996 C
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 1995-96 and possible additional funding in 1996-97 and
1997-98 for improving operations and to offset funding shortfalls.
BACKGROUND:
At the November 28, 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 in
coordination with the Auditor, County Administrator and County Counsel has
developed a performance and spending plan that have 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:
_ RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
S1 ...
ACTION OF BOARD ON APPROVED AS RECOMMENDED � OTHER
VOTE OF SUPERVISORS
I 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: ABSlrAIN: OF SUPERVISORS ON THE DATE SHOWN.
CC: ATTESTED ..
Assessor
County Counsel PHIL BATCHELO CLERK OF THE BOARD OF
County Administrator SUPERVISORS AND COUNTY ADMINISTRATOR
C�A 44L61 9 1
BY ,DEPUTY
M382/7-83 -
' • T 1
January 26, 1996
AGREEMENT FOR STATE-COUNTY
PROPERTY TAX ADMINISTRATION PROGRAM
THIS AGREEMENT is entered into this 60,.,day of , 1996, by
and between the County of Contra Costa (County) and the State partment 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 1995-96 and
the County may make a similar election for fiscal years 1996-97 and 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 1995-96. 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 additional
loans of up to $2,022,000 for each of the fiscal years 1996-97 and 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 years 1996-97
and 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 years 1996-97 and/or 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 years 1996-97 and/or 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 1995-96, the County shall receive payment of$2,022,000 within thirty
(30) days after the approval of this agreement by both parties. For the 1996-97
and 1997-98 fiscal years, 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.
2
. A•3
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, 1995 backlog of 13,683 new construction assessments
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
Year Workload (Est.) Completed (Est.) Backlog Goal
1995-96 24,997 12,148 12,849
1996-97 36,311* 25,962* 10,349
1997-98 47,625* 39,776* 7,849
(b) Reduces the July 1, 1995 backlog of 229 appeal cases. We will Prepare a
defense for all assessment appeal cases that are scheduled by the
Assessment Appeals Board. (Weighted 70%for determining percentage of
success.)
Accumulated Accumulated Goal
Appeals Appeals (Appeals Not
Year Scheduled (Est.) Defended (Est.), Defended
1995-96 229 229 0
1996-97 629* 629* 0
1997-98 1,179* 1,179* 0
The potential assessed value loss for year 1995-96 is in excess of $2.5 billion.
3
D.3
(c) Reduces the July 1, 1995 backlog of 8,463 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
Year Workload (Est.) Completed (Est.) Backloa Goal
1995-96 42,599 34,970 7,629
1996-97 76,726* 71,606* 5,120
1997-98 110,871* 108,261* 2,610
(d) Reduces the July 1, 1995 backlog of 263 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 10%for determining
percentage of success.)
Accumulated Number
Accumulated of Audits
Year Workload (Est.) Completed (Est.) Backlog Goal
1995-96 713 472 241
1996-97 1,163* 988* 175
1997-98 1,603* 1,504* 109
*Estimates for fiscal years 1996-97 and 1997-98 are for illustrative purposes only and will
be revised in August 1996 and 1997 respectively.
4
,, b•3
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 1995-96 is 13,200, the above formula will
produce the following:
12,849 - 13,200 = -351; 12,148 - 351 = 11,797/12,148 = 97.11%
If the achieved backlog for (a) above for 1995-96 is 12,200, the above formula will
produce the following:
12,849 - 12,200 = +649; 12,148 + 649 = 12,797/12,148 = 105.34%
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.
5
D.3
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
6
assessed value change associated with items (a) through (d) of Section 6 of this b.3
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
of the State's Project Director.
7
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. 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.
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
8
D-3
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 cau§ed this agreement to
be signed by its duly authorized officer this day of , 1996.
COUNTYPf CONTR OS
By
Ch r, a(d f Supervisors
ATTEST: Phil Satclheior, Clerk State: State Department of Finance
of the Board of Supervisors and
Coun Tmini ator
By A 1Z IJA By
Deputy 2l l3`9
APPROVED AS TO FORM BY
COUNTY COUNSEL:
VICTOR J. WESTMAN
By
eputy
9
Exhibit A OFFICE OF THE ASSESSOR .
PROPERTY TAX ADMINISTRATION PROGRAM
ESTIMATED LOAN ALLOCATION
FY 1995-96
LOAN AMOUNT $2,022,000
Staffing:
Appraisal Staff (1 Supervising Appraiser,3 Appraisers) 211,671
Technician Staff(3 Technicians) 146,965
Funding to maintain 94-95 Budgeted Positions 593,400
Appraisal Staff Overtime 31,200
Temporary Retiree Staff 32,500
Project Administrative Aide 34,946
Consultants for Refinery Assessment Appeals* 500,000
Total Staffing 1,550,682
Systems and Processing Modifications & Training:
Hardware, Software, and maintenance 258,318
Contracts** 100,000
Technical Training for Appraisal Staff 113,000
Total Systems and Processing $471,318
TOTAL ALLOCATION $2,022,000
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
for refinery appeals cannot be determined. To the extent these funds are not
necessary for such appraisers, it is agreed that the Assessor may use up to
$300,000 of this amount to digitize parcel maps.
** Start Analysis and programming for changes to the Secured and Unsecured
Systems to accommodate the new Lien Year.
10