HomeMy WebLinkAbout2008-154
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
T 18
19
20
21
22
23
24
25
26
27
28
RESOLUTION NO. 2008-154
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING
THE EXECUTION OF THE FIRST AMENDMENT TO THE SERVICES
AGREEMENT WITH MUNISERVICES, LLC TO ADD PROPERTY TAX
SERVICES FOR THE CITY OF SAN BERNARDINO.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1: The City Manager of the City of San Bernardino is hereby authorized
and directed to execute on behalf of said City the first amendment to the Service
Agreement with MuniServices, LLC to provide Property Tax Services for the City of San
Bernardino, a copy of which is attached hereto, marked Exhibit "A" and incorporated
herein by reference as fully as though set forth at length.
SECTION 2: The authorization to execute the above mentioned agreement is
rescinded if the parties to the agreement fail to sign it within sixty (60) days of the passage
of this resolution.
//1
//1
//1
//1
1//
//1
//1
//1
//1
//1
//1
1
2
3
4
5
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING
THE EXECUTION OF THE FIRST AMENDMENT TO THE SERVICES
AGREEMENT WITH MUNISERVICES, LLC TO ADD PROPERTY TAX
SERVICES FOR THE CITY OF SAN BERNARDINO.
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor
and Common Council of the City of San Bernardino at a joint regular meeting
6 thereof, held on the 19th day of Mav
, 2008, by the following vote, to wit:
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
ABSTAIN
ABSENT
COUNCILMEMBERS
AYES
NAYS
ESTRADA
x
BAXTER
x
x
BRINKER
x
DERRY
x
KELLEY
JOHNSON
~
x
MCCAMMACK
~f).~
Rachel G. Clark, City Clerk .
frJ- te~ Ha~ 11r7; ~ e
The foregoing resolution is hereby approved this ~eR day of May
2008.
J. Morris, Mayor
San Bernardino
Approved as to form:
JAMES F. PENMAN,
City Attorney
2
2008-154
EXHIBIT "A"
FIRST AMENDMENT TO SERVICES AGREEMENT
MUNI SERVICES, LLC
THIS FIRST AMENDMENT TO THE SERVICES AGREEMENT is made and
entered into this 19 th day of May , 2008 ("Effective Date"), by and between
the CITY OF SAN BERNARDINO, a charter city ("City"), and MUNISERVICES,
LLC., a Delaware limited liability company ("CONSULTANT").
WITNE SSE T H:
A. WHEREAS, CITY proposes to have CONSULTANT perform the
additional services described herein below; and
B. WHEREAS, CONSULTANT represents that it has that degree of
specialized expertise contemplated within California Government Code Section 37103
and holds all necessary licenses to practice and perform the services herein contemplated;
and
C. WHEREAS, CITY and CONSULTANT desire to contract for the
additional services as described in Exhibits A-I and A-2;
D. WHEREAS, no official or employee of CITY has a financial interest,
within the provisions of California Government Code Sections 1090-1092, in the subject
matter of this Agreement; and
E. WHEREAS, CITY and CONSULTANT, on October 15, 2007, entered
into a Services Agreement to provide analysis and audit services for the City's
transactions and use tax collected by the State Board of Equalization; and
F. WHEREAS, CITY and CONSULTANT, wish to amend said Services
Agreement to add property tax services; and
NOW, THEREFORE, for and in consideration of the mutual covenants and
conditions contained herein, the parties hereby agree as follows:
1. Section 1.1 Scope of Services, is amended to add the additional professional services
described in the Scope of Services attached hereto as Exhibits A-I and A-2 and
incorporated herein by this reference.
2. Section 2.1 Compensation, is amended to add additional payments as set forth in
Exhibits A-I and A-2.
3. All other terms and conditions in said Services Agreement shall remain unchanged
and remain in full force and effect.
2008-154
FIRST AMENDMENT TO SERVICES AGREEMENT
MUNISERVICES, LLC
IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to the
Services Agreement to be executed by and through their respective authorized officers, as
ofthe date first above written.
CITY OF SAN BERNARDINO
MUNISERVICES, LLC.
~~
Signature
-
lAo.fcl{er/VW1 ?re'ii~
Name and Title I
APPROVED AS TO FORM:
JAMES F. PENMAN,
City Attorney
J,~
2008-154
EXHIBIT A-1
PROPERTY TAX ADDENDUM
MuniServices, LLC ("MuniServices") shall provide to the City of San Bemardino/Redevelopment
Agency ("Citv"), MnniServices' Property Tax Services ("PTX") which consists of Audit and Recovery
Services.
OBJECTIVES AND METHODS
PTX assists City in recovering the revenue to which it is entitled from its Property Tax and RDA Tax
Increment. Administrative errors and omissions combined with general compliance problems are
inevitable given the non-standard, complex nature of state and local property taxes. Error rates rise with
respect to property tax applicability, rates, exceptions, exemptions, quirks and other inconsistencies.
Because of the time limitations on the City's ability to recover misallocated revenue, prompt correction of
these errors and omissions is essential to maximizing revenue potential.
The following steps are taken in conducting PTX:
. Contact City's designated staff to review service objectives, scope, workplan schedule, public
relations and logistical matters. MuniServices will also establish an appropriate liaison with
the City's coordinator and logical checkpoints for progress reviews.
. Conduct an audit of the City local secured and unsecured valuations, on a parcel-by-parcel
basis to determine tax rate area ("TRA") miscoding errors and omissions.
. Establish a comprehensive inventory of every parcel located within the City and the RDA
project(s), including the database elements needed to facilitate a comparison analysis with
County secured and unsecured taxable values.
. Represent the City for purposes of examining records pertaining to property tax and RDA tax
increment to identify and confirm any errorslomissions that are resulting in deficient payment
of tax revenues to the City.
. For each errorlomission identified and confirmed, prepare documentation to substantiate and
facilitate recovery of revenue due from prior periods plus applicable interest and penalties
(collectively "Misallocations").
. Meet with designated City official(s) as necessary to review our findings and
recommendations.
. Prepare and forward to the appropriate parties requests for corrective action and revenue
recovery for Misallocations. The date that the appropriate parties receive and acknowledge
these requests is the "Date of Knowledge".
. Provide additional assistance as necessary to support the City in recovering and preventing
tax allocation errors/omissions.
From the Date of Knowledge, the County Assessor's office will review the identified Misallocations, and
for those Misallocations for which a correction is required, an Assessor's Roll Correction ("ARC") will
be processed by the County correcting those Misallocations, typically triggering a reallocation. The Roll
Year in which the assessments first appear corrected is the Date of Correction. Corrected assessments
result in proper allocations in subsequent Roll Years ("Corrected Allocations").
1
2008-154
TIMING AND REPORTING
MuniServices shall commence the PTX within 10 working days of authorization (unless instructed
otherwise by the City) with the objective of delivering the initial audit reports within 90 to 120 working
days. Thereafter, MuniServices shall provide the City with audit progress reports to include, but not be
limited to, the following:
o Actual revenue produced for the City by PTX on an annual and cumulative basis.
o Projected revenue forthcoming to the City as a result of PTX, specified according to
source, timing and one-time payment versus ongoing.
o Listing of all errorslomissions detected for the City including, for each, the account
number, correction status, payment amount received by the City, period to which
payment is related and payment type (e.g. reallocation, deficiency assessment, etc.).
o Status of the work including copies of reports provided by the County addressing each
reporting errorlomission individually, the Incorrect Parcel Number, Correct Parcel
Number, Assessee, Correct TRA assignment, Business ID, Address, Secured and
Unsecured Valuation, Exemptions, Net Total Valuation ofmisallocated assessments.
COMPENSATION
City shall pay MuniServices a twenty-five percent (25%) contingency fee. This contingency fee applies to
reallocations for the fiscal year during which the Date of Correction falls and all eligible prior period
revenues corrected. The contingency fee also applies to Corrected Allocations for three (3) subsequent
Roll Years from the Date of Correction. The minimum fee shall be invoiced immediately after the
delivery of the Audit report. The contingency fee shall not apply until such time as the contingency fee,
based on revenue received by the City, equals the minimum fee and City shall only be responsible for that
increment of the contingency fee in excess of the minimum fee. MuniServices shall invoice City for the
above fee at least annually, based on recoveries actually received by City.
ADDITIONAL CONSULTING
City may request that MuniServices provide additional consulting services at any time during the term of
the Agreement to which this Addendum is attached. If MuniServices and City agree on the scope of the
additional consulting services requested, then MuniServices shall provide the additional consulting on a
Time and Materials basis. Depending on the personnel assigned to perform the work, MuniServices'
standard hourly rates range from $75 per hour to $300 per hour.
These additional consulting services will be invoiced at least monthly based on actual time and expenses
incurred. All reimbursable expenses shall receive prior approval from the City and shall be reimbursed at
cost to MuniServices.
CITY OBLIGATIONS
Because PTX service may result in correction of misallocations after termination of the Agreement,
City's obligation to pay and MuniServices' right to continue to receive payment, survive termination of
this Addendum or the Agreement for any reason.
2
2008-154
EXHIBIT A-2
PropertyLINl(TM LICENSE ADDENDUM
This addendum is made as of May 19 . 200JL and is between MuniServices, LLC,
a Delaware limited liability company with an office at 7335 N. Palm Bluffs Ave, Fresno,
CA 93711 ("MuniServices"), and the City of San Bernardino, a rnunicipal corporation of
the State of California ("Customer").
General Description of PropertyLINJ(fM Services
The estimation and forecasting of future revenue generation is a powerful economic
development and land use planning tool. PropertyLIN](TM now places that information
at the user's disposal with an interactive, easy-to-use software prograrn. Users can
generate analysis that correlates physical presence, fiscal impact and revenue
productivity all in one system.
PropertyLIN](TM is an application accessed through the Internet that allows Users to
access the following functions:
. A geographic Property Tax Information Service that allows for detailed analysis
. Property Tax Data Warehouse
. Geocoding - Define areas within your rnunicipality for special tracking
. RDA Planning Tool
. Ad-Hoc and Standard Reporting
The application's pre-defined reports are:
. Top (1 -100) Assessees
. Top (1 -100) Assessees Detail
. Top (1 -100) Assessrnents
. Top (1 -100) Taxable Value Changes
. Taxable Value Summary Tax Rate Area, Land Use and Tax Type
. Estirnated City Share Revenue TRA
. City General Fund Revenue Summary TRA
. Taxable Value By Land Use
. Taxable Value Change Summary By TRA
. Value Summary by Assessment Type
. Incremental Revenue Summary TRA
. Historical Growth of Taxable Value
. Taxable Value/Revenue Summary by TRA
. Taxable Value Summary by TRA
. Historical Growth of Taxable Value by Project
In addition to standard reports, PropertyLIN](TM provides a detailed Ad-Hoc query
capability enhanced by MuniServices's report building tools to allow for:n
3
2008-154
. Integrated Custom Report Designer allowing complete control of Ad-Hoc Report
Generation
. Automatic Report Generation
. Easy to use selection criteria for field selection
. Full control of tabular field selection, sorting and display
. Ability to send selected data to Tabular Data export for Excel, Delimited
(Tab/Comma), or XML file formats
Background
. The Customer wishes to subscribe to MuniServices' PropertyLINJ(TM services,
which are generally described in the above section.
. MuniServices wishes to provide PropertyLINJ(TM services to Custorner
. This addendum references and is hereby incorporated as part of the Application
Service Provider Services Agreernent entered into on May 19, 2008
The parties agree as follows.
Terms and Conditions
1. Implementation. MuniServices shall provide Customer with access to
PropertyLINJ(TM within 90 working days following receipt or acquisition of required
data. Implementation of the PropertyLINJ(TM systern occurs in three phases.
1.1 Phase One: Requirements Gathering. MuniServices shall gather specific
information needed to generate the database that underlies the Service. (For
purposes of this addendum, "Services" means Customer's access to
PropertyLINJ(TM as described in the terms and conditions of this addendum
and the final Service specifications.) MuniServices shall conduct an
information gathering session with the Customer to obtain the following
required Customer information:
. Secured Assessment Roll for Customer's geographic area;
. Unsecured Assessment Roll for Customer's geographic area;
In some cases, certain elernents of the Property Characteristics file may be
needed. If Customer currently receives MuniServices' property tax audit
service, some of this information may already be in MuniServices' possession.
1.2. Phase Two: Project Plan Approval. Once the information gathering has been
cornpleted, MuniServices shall deliver to Custorner the final Service
specifications. The final Service specifications will identify what information
the Customer will be able to access through PropertyLINJ(TM and the types of
4
2008-154
reports Customer will be able to generate from PropertyLIN](TM. Any
requests for changes to the Service must be made at this time, prior to
implementation. The final Service specifications are approved when signed
by both Custorner and MuniServices, at which time the final Service
specifications becorne part of this Agreement. The approved final Service
specifications are referred to as the "Final Project Plan." Any changes to the
Final Project Plan must be rnade in writing. If Customer requests a change to
the Final Project Plan, MuniServices will implement the change after
MuniServices and Customer have agreed on the cost of the requested change
and Custorner has approved the scope and cost of the change in writing.
1.3. Phase Three: Installation and Testing. MuniServices shall implement the
final Service specifications and install the Service in accordance with this
addendum. Customer shall have thirty (30) days from the date installation is
completed to begin using the Service to ensure that Customer is able to access
the Service. Any problems in accessing the Service should be noted to
MuniServices. At the end of the thirty (30) days, unless Custorner has
notified MuniServices to the contrary, it will be deemed that Custorner is able
to access the Service and that installation was successful and implementation
is complete. MuniServices will correct problems relating to the stated
requirements and functionality of the Service that arise after the end of the
Testing Period at no cost to Customer if: Customer first discovered the
problems after the Testing Period; and Customer notifies MuniServices of the
specific problem and the date on which the problem was first discovered.
2. Maintenance. After installation and during the remaining term of this Addendum,
MuniServices will correct problems relating to the stated requirements and
functionality of the Service which the Customer identifies and of which
MuniServices is notified at no cost to the Customer. Problems identified should
include only problems with the stated functionality of the Service. Problems
addressing functionality which Customer would like to see in the Service shall not
be considered issues related to the Service set forth in this Agreement.
3. Cost and Term. Pricing for PropertyLIN](TM is divided into Set-Up Fees, which are
one-tirne costs to implement the Service, and Annual Fees, paid quarterly for the
Service following implernentation.
3.1. Set-Up Fees. MuniServices shall charge Customer a one-time fee of $2,500,
depending on the size of the city, for set-up to implement the PropertyLINKTM
Service. Set-Up Fees are billed immediately following execution of this
Addendum.
A. Defining Set-Up. Set-Up includes the following:
5
2008-154
. Conversion of existing Customer data to the PropertyLINKTM
system (applies to Customer data available to MuniServices in
electronic format only. Customer is responsible for any direct data
entry not available in electronic forrnat.)
. Installation and configuration of the VPN software.
. Eight (8) hours of on-site user training for five (5) Users.
. SecureID's and UserID's for five (5) Users.
3.2. Data Costs. MuniServices shall procure the data necessary to generate the
database that will underlie the service. Customer shall reimburse
MuniServices for the direct costs MuniServices incurs in procuring any
property-tax related data needed for conversion into PropertyLINKTM,
including, but not limited to, secured rolls, unsecured rolls, or property
characteristics file. Prior to incurring costs for procuring data, MuniServices
will provide Custorner with the estimated cost for acquiring the data.
MuniServices will not acquire the data unless Customer approves the cost for
acquiring the data. The costs for procuring the data may be a one-time cost
or may be a cost incurred for each year that the Customer has access to
PropertyLINKTM. These yearly purchases of data are not covered by the
Annual Fees and will be reirnbursable under the terms of this paragraph.
3.3. Annual Fees. The Annual Fee for PropertyLINKTM is $8,000, to be paid in
quarterly installments at the beginning of each calendar quarter after
implernentation of the Service.
A. For the quarter during which the Service is implemented,
MuniServices shall bill Customer a pro-rata portion of the quarterly
installment of the annual fee 30 days from the date of implementation.
Thereafter, MuniServices shall invoice Customer quarterly, at the
beginning of each calendar quarter, for Service to be provided during
that quarter.
B. The Annual Fee is adjusted at the beginning of each calendar year by
the percentage change in the Consumer Price Index - West Urban
(CPI-WU) as reported by the Bureau of Labor Statistics. The first
adjustment to occur at the beginning of the Calendar year following
the first full calendar year of service. The current available CPI-WU is
207.79 based on January 2007 index. The adjustments thereafter will be
based on the CPI-WU from the last month of the prior calendar year.
Each Annual Fee adjustment shall not be less than two percent (2%) or
greater than ten percent (10%).
C. The Annual Fee includes:
.
24 Hour access to the PropertyLINK systems
6
2008-154
. User support for up to 5 users (Additional users will increase
Price.)
. Periodic maintenance releases of PropertyLINK
3.4 Additional Users. Additional Users may be added for a one-time set-up fee
of four hundred dollars ($400) per additional User plus two hundred dollars
($200) per additional User in Annual Fees. City may authorize additional
Users by providing MuniServices with written authorization that specifies the
number of additional Users and authorizes MuniServices to charge City the
set-up fee and additional Annual Fees. The written authorization rnust be
from a person with the authority to bind the City. The written authorization
may be provided by email. Upon request, City will also provide
MuniServices with any additional information MuniServices needs to add the
additional User(s). SecureID's may be transferred to a new user for a one-
tirne transfer fee of one hundred dollars ($100.00) per transfer. A lost or
damaged SecureID can be replaced for a one-time fee of three hundred
dollars ($300.00) per replacement. Malfunctioning SecureID's will be
replaced at no charge.
3.5. Additional costs. Additional fees apply for consulting services, added data
layers, customized upgrades, or other services requested by Customer that
are not within the services described in this addendum. Until the parties have
agreed in writing upon the requested services and the additional fee for those
services, MuniServices has no obligation to perforrn and Customer has no
obligation to pay for requested services.
3.6. Training. Additional training classes are available from MuniServices in
Fresno, CA for the cost of $750 per day for up to 5 users. On site training, at
the client site, is $1,200 per day for each group of up to 5 users plus expenses.
3.7 Term. This addendum has an initial term of three year(s) following the date
of implementation. After the conclusion of the initial term, this addendum
renews for successive one-year periods or until terminated by either
Customer or MuniServices by giving the other party written notice of intent
to terminate no later than (60) days prior to expiration of the then current
term. The term of this addendum is not affected by the addition, deletion, or
rnodification of the Services or Software.
7
2008-154
4. Online Access and Third Party Software. PropertyLINKTM's Internet connectivity
utilizes a standard Internet connection. Employees of Customer who need access to
the system will have access through the same connection as they currently access the
Internet and their local LAN. By using Customer's existing Internet connection, no
additional expense will be required including the Virtual Private Network (VPN)
software, which is provided with this Agreement.
4.1 VPN Software and Access. MuniServices utilizes the CISCO Systems VPN to
create a 1 to 1 relationship between a client PC and the host software. The
VPN software establishes a secure link between the Host software and the
CIient Pc. This secure link means that the PC and the Host establish an
encrypted connection that protects data transmitted via the Internet. This
ensures that information is protected by encryption as it is transferred to and
from the secured machines, and is recognized as one of the highest levels of
data transfer security available at the tirne this Addendum is entered into. In
essence, the transmissions on this secure link are unreadable by third party
users of the Internet. Once the VPN software has been installed on
Customer's system, Customer is required to adhere to all licensing and
confidentiality provisions included with the VPN software. MuniServices
will provide the software to Customer as part of this Agreement and
Customer agrees, by signing this Addendum, to the following:
A. Customer will provide MuniServices with the names of Customer's
Users. MuniServices will issue Users an RSA-FOB SecureID Tool
("SecureID") and a Customer ID code and password to permit access
to the Services. The SecureID will be assigned in connection with the
VPN software to each user. This tool generates a random and unique
security code every minute. The code combines with a password to
provide a unique password (the "Passcode") every rninute to ensure
security.
B. During the initial log-in, Users will be given a unique, random four
digit code that will be known only to the User ("UserID"). User login
names, unique four-digit code, and the SecureID will allow only the
Users to access the Services
C. Customer has the ability to manage and control which Custorner
employees are designated as Users. It is the Customer's responsibility
to ensure that Customer ID code, the UserID codes and SecureID are
known to, and used only by, persons who have been properly
authorized to use them. All access of the service through UserID codes
8
2008-154
and SecureID shall be deemed to be uses authorized by the Customer
and shall so bind the Customer.
D. Failure to protect UserID codes and the SecureID rnay allow an
unauthorized party to (1) use the systems, (2) correct, change, verify or
send data in the system, or (3) send information and communications
to, or receive inforrnation and communications from MuniServices.
E. Customer assurnes the entire risk for the fraudulent and or
unauthorized use of all UserID codes and Passcodes. It is important
for Customer to develop internal procedures to limit such risk, which
procedures will include, at minimurn, (1) notifying MuniServices
immediately when a new person becornes a Customer User or when
any existing Customer User no longer is a Customer User, and (2) not
keeping, in any form or in any place, lists of ID codes or passwords.
F. Customer agrees to notify MuniServices immediately when it becomes
aware of any loss or theft of, or any unauthorized use of, any USERID
codes or passwords, or any unauthorized entry into PropertyLINKTM.
G. In accessing the Services Customer will be receiving data through the
Internet. Customer acknowledges that when the Internet, or any other
electronic communications facilities, are used to transmit or receive
data, the data may be accessed by unauthorized third parties. To
reduce the likelihood of such third party access, Customer agrees to
transmit and receive data through PropertyLINJ(TM using only
software including, but not limited to, Microsoft Internet Explorer 6.0
(or higher) browser software, the VPN Client Software and the
SecureID. Additionally, Customer agrees to follow the MuniServices
log on procedures that support such protocols.
4.2 Third-Party Software. By signing below, Customer acknowledges they are
subject to all copyright, license and confidentiality provisions governing the
third party software that will be used in accessing the Services.
4.3 Scheduled Maintenance. The PropertyLINJ(TM system is unavailable from
1:30 am to 3:00 am, PST on Sundays for regularly scheduled maintenance
activities. Other special security and maintenance activity may be
periodically required. MuniServices will post all special security and
maintenance activities requirements on the Custorner's portal page.
4.4 System Requirements. Customer must meet the following minirnum systern
requirements for MuniServices to provide the Services to Customer.
. IBM/PC Compatible 333mhz or higher
9
2008-154
. RAM: 256 MB or higher recommended
. 20 G hard-drive with at least 20MB of free space
. Microsoft Windows 2000 (service pack 3 and above) or XP Operating
System (service pack 2)
. Microsoft TCP / IP installed (Confirm via Start> Settings> Control Panel>
Network> Protocols or Configuration.)
. Internet Explorer 6.0 or higher (Note: The speed of response time for the
proposed applications is not under the control of MuniServices and is
limited by the Internet availability and connectivity source used by the
Customer)
. 17" Monitor or larger (a larger monitor is suggested for better viewing)
. 1024 x 768 resolution for optimum view. 800x600 resolution is supported
5. Miscellaneous Terms.
5.1. Definitions. All terms used herein shall have the same definitions as set
forth in the Application Service Provider Agreement of which this
Addendum is rnade a part.
5.2. Grant of Use. Customer shall have the right to access and use
PropertyLINl(TM for five (5) users designated by Customer in accordance with
Section 2.3 of the Application Service Provider Services Agreement, dated
May 19 , 20 08 .
5.3. Information Accuracy. MuniServices is not responsible for the accuracy of
data it acquires to be loaded into the PropertyLINl(TM system. Data will be
loaded prior to implementation. Thereafter, MuniServices will annually
update the Data with new Data provided or acquired by MuniServices.
Customer understands and acknowledges that MuniServices does not
guarantee (or warrant or promise) that information in the PropertyLINl(TM
system will balance with the certified assessed value reports generated by the
Auditor\ Controller's office. Customer also understands and agrees that
MuniServices will make every attempt to reconcile the information in the
PropertyLINKrM system with those certified assessed value reports.
Customer agrees that failure of the information in the PropertyLINl(TM system
to balance with the certified assessed value reports generated by the
Auditor\ Controller's office is not a breach of the Application Service
Provider Agreement or this Addendum.
10