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CCR1997077COMMON COUNCIL - CITY OF MUSKEG0 RESOLUTION #77-97 RESOLUTION TO APPROVE FINANCING AND EXECUTION OF 1998 REVALUATION AND NEW CONSTRUCTION CONTRACT BETWEEN THE CITY OF MUSKEGO AND DAY & ZIMMERMANN (CLT) WHEREAS, the Common Council of the City of Muskego conceptually approved for a revaluation to be done in 1998 with the acceptance of the three-year contract for the preliminary assessment work involving field inspections of 4,800 properties; and WHEREAS, the City Assessor would like to start the revaluation contract in September, 1997; and WHEREAS, the City has appropriated $35,000 in the 1997 Capital Budget to start the 1998 revaluation; and WHEREAS, the City has appropriated $5,000 in the 1997 Operating Budget to start field work for the 1998 assessment year; and WHEREAS, the City proposes to contract with Day & Zimmermann (CLT) in the amount of $142,000 to assist the Assessor in preparation of the 1998 Revaluation; and WHEREAS, the City proposes to contract with Day & Zimmermann maintenance to assist the Assessor in preparation of the 1998 (CLT) in the amount of $21,000 for the 1998 new construction assessment year; and WHEREAS, the Finance Committee has reviewed the attached Articles of Agreement which combine the Revaluation and New Construction affirmation of the City Attorney. services into one contract and recommended approval pending NOW, THEREFORE, BE IT RESOLVED that the Common Council of the City of Muskego, upon the recommendation of the Finance Committee, does hereby approve the 1998 Revaluation Contract in the amount of $142,000 with a limit of $35,000 to be spent in 1997. BE IT FURTHER RESOLVED that the Common Council of the City of Muskego, upon the recommendation of the Finance Committee, does hereby approve the 1998 New Construction contract in the amount of $21,000 with a limit of $5,000 to be spent in 1997 to assist the Assessor in preparing the 1998 Assessment Roll. BE IT FURTHER RESOLVED that the remaining amount of $107,000 for the 1998 Revaluation contract will be budgeted for and approved in the 1998 Capital Budget of the City Assessor. Resolution #77-97 Page 2 BE IT FURTHER RESOLVED that the remaining amount of $16,000 for the New Construction contract will be budgeted for and approved in the 1998 Operating Budget of the City Assessor. BE IT FURTHER RESOLVED that the Mayor and Clerk-Treasurer are authorized to sign the Agreement in the name of the City, subject to approval of the City Attorney. DATED THIS 22ND DAY OF APRIL , 1997. SPONSORED BY: FINANCE COMMITTEE Ald. Domonic R. D'Acquisto Ald. David J. Sanders This is to certify that this is a true and accurate copy of Resolution #71-91 which was adopted by the Common Council of the City of Muskego. j mb K. ARTICLES OF AGREEMENT ........ I i TABLE OF CONTENTS Articles of Agreement 1 . II . 111 . IV . V VI . VI1 . VIII . IX . D XI . X . XI1 . XIII . XIV . XV . XVI . XVII . XVIII . XIX . I I I XX . XXI . XXII . . PAGE ARTICLES OF AGREEMENT .......... ...... .... . 1 SERVICES TO BE PROVIDED ...... ........ ...... 2 PURPOSE/USE OF APPRAISALS ...... ...... ... . 2 CONTRACT DOCUMENTS . . ' . .... ...... .... .. 2 PERIOD OF AGREEMENT . . ........ .. ........... 2 COMPENSATION . . ....... ..... .... . .4 INDEPENDENT CONTRACTOR . . .. ....... ... 6 OWNERSHIP OF DATA ............ ... ............. 6 INDEMNIFICATION AND INSURANCE ...... ............. 6 FORCE MAJEURE ... ..... ............... . .8 EMPLOYMENT LAWS ......... ............. . .9 CONFLICT OF INTEREST ................ ........ 9 PROJECT PERSONNEL ........... ... .. .. ...... 10 SUBCONTRACTS .............. ..................... 10 ASSIGNMENT OF AGREEMENT ......................... 10 CHANGES IN AGREEMENT ............................ 10 GOVERNING LAW .............. ..................... 11 CONFLICT ................. .. ............... 11 ENTIRE AGREEMENT ......... .. .. ............... 11 SEVERABIUTY ....................................... 11 TERMINATION PROVISIONS ................... ...... 12 PERFORMANCE BOND ................ ... ......... 12 NOTICES ................................... .... 12 SIGNATURE/WITNESS PAGE ........................... 14 SCHEDULEA ..................................... 1-21 SCHEDULE6 ..................... .. .......... 13 Articles of Agreement ARTICLES OF AGREEMENT 0 This Agreement is by and between the City of Muskego, located in the State of Wisconsin, hereinafter referred to as 'the City"; AND Day & Zimmermann LLC, a company formed under the laws of the State of Delaware and qualified to do business in the State of Disconsin, hereinafter referred to as 'Yhe Company", - WITNESSETH - - - - - - - - - WHEREAS, the Company has experience in the design, development, and implementation of computer-assisted appraisal systems, and; WHEREAS, the Company has served County and municipal governments in the mass appraisal field for over fifty years; and WHEREAS, the City desires to utilize said services; NOW, THEREFORE, it is hereby agreed that the Company shall provide the services contained in Schedule A and Schedule B (Services to be Provided) during the period of this Agreement as specified in Article 111 hereof. The services to be provided shall be limited to those set forth in Schedule A and Schedule 6. 1 Articles of Agreement I I. i 1 (Services to be Provided), and the Company shall be responsible for the SERVICES TO BE PROVIDED The Company shall provide to the City in a professional and workmanlike manner all of those services stipulated in Schedule A and Schedule B scheduling of personnel as categorized in Schedule A and Schedule B. II. m 111. PURPOSE/USE OF APPRAISALS The Company, by virtue of this Agreement, is contracted to provide certain services and recommendations of value to the City which are intended for exclusive use as recommendation of value for determinations of assessment for ad valorem tax purposes. Any use other than that stated above is not authorized nor intended, and most specifically excluded is an opinion of value used for federally related real estate transactions or other mortgage lending purposes. CONTRACT DOCUMENTS This Agreement and Schedule A and Schedule B comprise the contract documents. IV. PERIOD OF AGREEMENT This Agreement shall run from September 1, 1997, through September 1, 1998. Articles of Agreement The Company’s time of performance of this Agreement is conditioned upon the 0 performance of the RESPONSIBILITIES OF THE CITY contained in Schedule A and Schedule 6 and upon the nonoccurrence of an act of God or other cause or causes beyond the Company’s control which materially increase the cost or difficulty of the Company’s performance, but occurrence of any such event should not relieve the Company from full performance, but shall entitle the Company to a reasonable extension of the completion date and additional compensation to be negotiated. In the event the Company has not completed all work under this Agreement by the specified completion date, the Company shall pay a penalty of $100.00 per calendar day up to the date such work is completed. In addition to the above, the Company’s performance of the Agreement is conditioned upon the receipt by the Company from the City of all required City information on a timely basis. If the City fails to make timely deliveries of such information the Company’s obligation to preform the services provided in this Agreement shall be suspended until such deliveries are made, any and all requests for such information shall be made in writing by the Company upon reasonable notice, but no less than two (2) weeks prior to delivery of same. 0‘ 3 Articles of Agreement a 111 V. COMPENSATION As compensation for the Company providing the services contained in Schedule A: The City shall pay the Company a fixed fee of ONE HUNDRED FORW TWO THOUSAND DOLLARS ($142,000) for these services for the period of September 1, 1997 through September 1, 1998. As compensation for the Company providing the services contained in Schedule B: The City shall pay the Company a fixed fee of TWENTY ONE THOUSAND DOLLARS ($21,000) for these services for the period of September 1, 1997, through September 1, 1998. Invoices will be submitted each month, commencing the first month after the signing of this Agreement, for an amount equal to the progress reported and approved during the previous month. Progress will be reported to reflect the percentage of each activity completed during the previous month. Payments of billings is due within thirty (30) days after the date of each billing. The City will notify the Company in writing of any apparent discrepancies contained in the itemized billing within fifteen (15) days of receipt of any billing. I I I Company, in addition to its other rights and remedies, to suspend, temporarily, I Articles of Agreement Failure of the City to make payment when due, without cause, entitle the 0 further performance of this Agreement without liability. The City shall have the right to inspect the progress of the work at any reasonable time, including without limitation, inspection of data completed by the Company. Services requested in writing by the City outside those covered in this Agreement will be provide by the Company for the prevailing time and materials rates. These hourly rates are updated annually and will be provided on or about the first of each year to the City Assessor hourly rates are listed below: Senior Company Officer Company Officer Program Manager Project Supervisor Lead Programmer/Analyst Senior Programmer/Analyst Senior Appraiser Programmer/Analyst Junior .Programmer/Analyst Appraiser Data Collector Data Entry Supervisor The Company's 1997 $144.00 $126.00 $1 17.00 $1 08.00 $108.00 $ 99.00 $ 81 .OO $ 72.00 $ 63.00 $ 54.00 $41 .OO $ 41 .OO 5 Articles of Agreement Secretary Data Entry Operator Clerical $ 41 .OO $ 36.00 $ 36.00 VI. VII. VIII. INDEPENDENT CONTRACTOR The relationship of the Company to the City shall be that of an independent contractor apd no principal-agent or employer-employee relationship is created by this Agreement. The Company is entering into a contractual relationship with the City pursuant to Wisconsin Statute s70.05[2] and shall act as an assistant to the Assessor in the discharge of the Assessor's duties. OWNERSHIP OF DATA Data collected is the property of the City. Data used by the Company in the services contemplated herein shall remain the property of the City and no use or copying shall be made thereof beyond that listed in this Agreement without the written permission of the City. INDEMNIFICATION AND INSURANCE Except as provided below, the Company agrees to defend and save harmless the City, its officers, agents and employees against all claims, demands, payments, suits, actions, recovery, and judgments of every kind and description for personal injury or property damage brought or recovered against it by reason of any negligent action or omission of the Company, its I I I from negligence on the part of itself, its employees and agents. I I I I I I II fl a 0 I d a Articles of Agreement agents, or employees and with respect to the degree to which the City is free The Company agrees to indemnify and save harmless the City, its officers, agents and employees against all payments, recovery and judgments of every kind and description arising out of any valuation dispute, recovered against it, whether based in contract, negligence or otherwise, which arise from the sole negligence of the Company. The City agrees to indemnify and save harmless the Company, its officers, agents and employees against all payments, recovery and judgments of every kind and description arising out of any valuation dispute, recovered against it, whether based in contract, negligence or otherwise, which arise from the sole negligence of the City. In all other actions arising out of valuation disputes, neither party shall indemnify the other. The Company will carry Public Liability Insurance in the amount of $1,000,000 including protection for bodily injury and property damage with a combined single limit of $1,000,000. a d n 7 Micles of Agreement I li 8 I mP The Company will also maintain Automobile Liability Insurance providing limits of $1,000,000 per occurrence, and the Company will provide Workers' Compensation Insurance. The Workers' Compensation Insurance will provide coverage under the Compensation Act of Wisconsin and shall provide employer's liability insurance in the amount of $1 00,000. IX. FORCE MAJEURE Neither party shall be liable to the other for any loss, damage, failure, delay or breach in rendering any services or performing any obligations hereunder to the extent that such failure, delay or breach results from any cause or event beyond the control of the party being released hereby ("Force Majeure"), including but not limited to acts of God, acts or omissions of civil or military authorities (acting in their sovereign, but not in their contractual, capacity), floods, torrential rainfall, other severe or unusual weather or climatic conditions, which would exist for a substantial period of time and would have an affect so as to substantially impair the completion deadline, epidemics, quarantines, other medical restrictions or emergencies, defects or failures in equipment or materials owned or supplied by the other party, strikes or other labor actions, embargoes, wars, civil disobedience, riots, terrorism, or of governmental rationing of fuel and/or power which would result in a severe shortage thereof, which would substantially impair the proposed completion deadline. Articles of Agreement 9 If either party is prevented or delayed in the performance of its obligations hereunder by Force Majeure, that party shall immediately notify the other party in writing of the reason for the delay or failure to perform, describing in as much detail as possible the event of Force Majeure causing the delay or failure and discussing the likely duration of the Force Majeure and any known prospects for overcoming or ameliorating it. Both parties agree to take any commercially reasonable measures to overcome or ameliorate the Force Majeure and its adverse effects on this Agreement, and to resume performance as completely as is reasonably possible once the Force Majeure is overcome or ameliorated. X. EMPLOYMENT LAWS The Company will comply with all the applicable provisions of Federal and Wkconsin laws, rules, and regulations regarding employment and shall further specifically comply with those sections related to Equal Employment Opportunity. a XI. CONFLICT OF INTEREST I a or appointed official of the City or any member of his/her immediate family. I a The Company will not employ as a director, officer, employee, agent, contractor, or subcontractor, directly or indirectly in any capacity, any elected rff Articles of Agreement XII. XIII. XIV. xv PROJECT PERSONNEL All work will be performed by personnel certified by the State of Wisconsin, Department of Revenue. The Company will provide and update the City with a listing of personnel assigned to the Project. All project personnel assigned shall be approved by the City. SUBCONTRACTS The Company agrees not to subcontract any of the work required by this Agreement without the written permission of the City. The Company agrees to be responsible for the accuracy and timeliness of the work submitted in the fulfillment of its responsibilities under this Agreement. ASSIGNMENT OF AGREEMENT The Company agrees not to assign, transfer, convey, or otherwise dispose of this Agreement or its rights, title, or interest in this Agreement without the previous consent and written approval of the City. CHANGES IN AGREEMENT This Agreement may be changed only upon the written permission of the City. IO Afticles of Agreement XVI. XVII. XVIII. XIX. GOVERNING LAW This Agreement shall be interpreted under the laws of the State of Wisconsin, as it existed and was interpreted on the date of this Agreement. The methods and procedures used in performance of this Agreement shall comply with Chapter 70 of the Wisconsin State Statutes. CONFLICT In case of conflict with respect to Scope of Service and responsibilities of the parties between the terms of this Agreement and the terms of Schedule A and Schedule B, the terms of Schedule A and Schedule B shall control. ENTIRE AGREEMENT This Agreement contains the complete and entire Agreement between the parties and may not be altered or amended except in a writing executed, making specific references to this Agreement, by a duly authorized officer of the Company and by a duly authorized official of the City SEVERABILITY If any provision of this Agreement shall be declared invalid or unenforceable, such invalidity or unenforceability shall not affect the whole Agreement, but the whole Agreement shall be construed as if not containing the provision, and the rights and obligations of the parties shall be construed and enforced 11 Articles of Agreement I. I I I 1 1 8 XX. XXI . XXII. accordingly, provided same is not of a material nature and does not substantially affect the work performed or the cost. TERMINATION The City will have the right to terminate this Agreement in the exercise of its absolute and sole discretion, upon ten (10) days written notice to the Company. Ten (10) days after the receipt or such notice, this Agreement will automatically terminate without further obligation of the parties, except for the payment by the City of all services rendered and materials furnished as of the date of termination. PERFORMANCE BOND The Company will provide to the City a performance bond in an amount equal to one hundred percent (1 00%) of the total contract amount. A certificate for said bond will be delivered to the City within twenty (20) days of Contract signing. NOTICES AII notices required to be sent to the Company shall be sent to the following address: ColeLayer-Trumble Company 3199 Klepinger Road Dayton, Ohio 45406 Attention: David J. Johnson, Assistant Vice President I2 1 Articles of Agreement All notices required to be sent to the City shall be sent to the following 0 address: Ms. Laura Mecha City Assessor City of Muskego W182 S8200 Racine Avenue P. 0. Box 903 Muskego, Wisconsin 531 50 13 Articles of Agreement IN WITNESS WHEREOF, the parties hereto have set their hands to duplicates of this Agreement this - day of , 1997. Witness Witness APPROVED AS TO FORM: CITY OF MUSKEGO, WISCONSIN By: Title: By: Title: By: Title: DAY & ZIMMERMANN LLC By: David J. Johnson Assistant Vice President Marketing I4 SCHEDULE A ‘REVALUATION SERVICES I I 0 TABLE OF CONTENTS Schedule A 1' 1 . 0 r 2.0 3.0 r 4.0 I' 5.0 6.0 1 6.1 7.0 1 8.0 9.2 9.3 I Ji I 10.0 IB 11.0 I 1~ 12.0 12.1 u 81 . a . 15.0 12.2 12.3 13.0 I 14.0 l 5 a Ifi INTRODUCTION ............... .............. 1 PUBLIC RELATIONS ..... ........................ 1 VALUATION ESTIMATES ..................... ... 2 TRAINING ......... .. ....................... 2 QUALITY AND COMPANY PROGRESS CONTROL .............. 3 MISCELLANEOUS TERMS AND CONDITIONS ............... 4 Confidentiality of Information ..... ... ............. 4 TECHNICAL ENVIRONMENT ............ ............ 4 CONFORMANCE TO STATUTES ...... ........... .... 5 PERSONNEL ........ ......................... 5 Staff ...................... ................. . 5 Staff Requirements ............ .................... 5 Project Supervision ............... ................. 6 ASSESSMENT MANUAL ....................... ...... 6 PROPERTY RECORD CARDS ....... ................. 6 APPROACHES TO VALUE .............................. 7 Type of Approach ................ ................. 7 Sales Analysis .................................... 7 IncomeAnalysis ...................................... 7 DATA FOR EVALUATION ............................... 8 NEIGHBORHOOD DELINEATION ................ ....... 8 DATA MANAGEMENT .................................. 8 ., .. .- .. ._ . 16.0 16.1 17.0 17.1 17.2 17.3 18.0 19.0 20.0 21 . 0 22.0 23.0 24.0 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 25.0 25.1 26.0 Schedule A Table of Contents (continued) l IMPROVEMENT VALUATION . . ...... ......... 10 Valuation Approach ....... ................... 16.1 1 Residential Approach to ..... .......... 10 16.1.2 Agricultural Approach . . ............ 16.1.3 Commercial Approach 11 11 ..................... LAND VALUATION ... ...................... 12 Classification ............................ 12 Basic Unit Values ............................... 13 Land Tables ............. ............... 13 VALUATION OF TAXABLE PERSONAL PROPERTY ......... 13 FINAL FIELD REVIEW ............................... 14 ASSESSOR TO REVIEW ASSESSMENTS .............. 15 OPEN BOOK CONFERENCE ....................... 15 COMPLETION OF ASSESSMENT ROLL 17 0 ...................... BOARD OF REVIEW ................................ 17 RESPONSIBILITIES OF THE CITY .................... 18 Office Space ............... ................ 18 Access to Records .................................. 18 Property Identifications ......... ............. 18 Provision of Forms ................................ 19 Maps ...................................... 19 Notices for New Assessments .............................. 19 Clerical/Secretarial Support ............................. 19 Miscellaneous General Agreements ................... 19 Hardware Requirements ......................... 20 ... GENERAL PROVISIONS .............................. 20 Contract Deliverables .................................... 21 PROJECT STAFFING/SCHEDULE ...................... 21 Revaluation Setvices SCHEDULE A SERVICES TO BE PROVIDED 1 .O INTRODUCTION The Company will perform a Revaluation of all taxable real property pursuant to Chapter 70 of the Wisconsin Statutes (as amended from time to time) hereinafter set forth. The remaining sections of this Agreement are organized to follow the State of Wsconsin Revaluation Specification Guidelines. 2.0 PUBLIC RELATIONS This section will describe the public relations program that the Company will provide as part of our Agreement: During the progress of the work, the Company will endeavor to promote understanding and amicable relations with the property owners and public. The City Assessor and Company shall cooperate in maintaining good public relations throughout the Revaluation Program. The Company shall furnish speakers and the City Assessor shall arrange speaking appearances before periodic meetings so that the purposes, methods and procedures of the revaluation program may be explained to as large a representative group of property owners as possible. I i i 1 i i a 1 Revaluation Services The employees of the City Assessor's office and the Company shall work together to maintain the full cooperation of all property owners by treating each inquiry with courtesy and supplying all possible necessary information to every interested property owners; however, each field appraiser/lister will be instructed to refrain from discussing with the property owner, tenant, or occupant the possibility of any increase or decrease in the valuation of the real property and/or buildings. The Company shall submit a public relations plan for approval by the City Assessor. 3.0 VALUATION ESTIMATES The Company shall assist the Assessor in determining valuation estimates requested by the Department of Revenue Supervisor of Equalization, should the Final Report and Assessment Roll not be completed by the 2nd Monday in May. 4.0 TRAINING The Company will educate the City Assessor's staff in the use of procedures, standards and records for making property appraisals so that the Assessor's Office can check the work as it progresses, and apply same in subsequent assessments. 2 Revaluation Services 5.0 QUALITY AND COMPANY PROGRESS CONTROL This Section provides the Company's guidelines for quality control and progress reporting needed for the revaluation of the City: Throughout the revaluation, the Assessor and the staff will check work being performed by the Company to assure the City that the work is being done in a proper manner. The Company shall periodically batch record cards and computer generated output and submit them to the City Assessor at the following intervals: a. Completion of field work. b. Completion of land value analysis. c. Completion of cost approach calculations/cost review. d. Completion of income approach. e. Completion of market analysis. f. Completion of final field review. As mutually agreed, the City Assessor shall return the batched record cards promptly so that delays in the progress of the revaluation do not occur. Errors and/or omissions found by the Assessor's staff shall be returned to the project supervisor for correction. The Company agrees to meet monthly or upon request, with the Mayor and/or Common Council or Committee of the Whole to discuss areas of work such as, 3 ! Revaluation Services I I I I 4 ! 1 1 I but not limited to progress, quality of work, procedures, valuations and problems. I' The City Attorney will be the interpreter of the specifications of the Contract. 6.0 MISCELLANEOUS TERMS AND CONDITIONS This section addresses general terms and conditions that are required to complete a successful revaluation program: 6.1 Confidentialitv of Information The Company shall ensure that employees maintain strict confidence regarding all privileged information received by reason of this Agreement. Disclosure of this or any appraisal information to any individual, firm, or corporation, other than appropriate public officials or their authorized agents is expressly prohibited. 7.0 TECHNICAL ENVIRONMENT The Company will use the City's Computer Assisted M as is Ap Npraisal (CAMA) System as a base for the work performed under this Agreement. All costs associated with the processing of data shall be the responsibility of the City 4 Revaluation Services ~ ~~ 8.0 CONFORMANCE TO STATUTES All work shall be accomplished in accordance with the provisions of the laws of the State of Wisconsin and in full compliance with all the rules and regulations officially adopted and promulgated by the Wisconsin Department of Revenue as of the date of the Agreement. 9.0 PERSONNEL 9.1 Staff The Company will provide trained personnel currently certified in compliance with Wisconsin statutes and administrative rules of the Department of Revenue. The City will have final approval on project personnel who are assigned to work on the revaluation of the City. 9.2 Staff Requirements The City shall reserve the right to prohibit an employee of the Company from participation in the revaluation, for good cause. The Company shall review any complaint relative to the conduct of its employee(s). If the City deems the performance of any of the employees to be unsatisfactory, the Company shall, for good cause, remove such employee(s) from work upon written request from the City, such request stating reasons for removal. The Company shall supply all its field representatives with identification cards containing, in addition to the usual information, a photograph of the employee. 5 Revaluation Services I I 9.3 Proiect SuDervision The Company shall designate a qualified and responsible employee to supervise the operation of the Company's staff for the entire project. The individual designated, approved by the City, as such shall make himself/herself available to the City for consultation throughout the project. Should the project supervisor be reassigned, that person shall be replaced by an equally qualified individual. 10.0 ASSESSMENT MANUAL The Company shall make all assessments in accordance with the Wisconsin Propety Assessment Manual as specified in Sections 70.32(1) and 70.34 and the Company shall be responsible for all final values arrived at in compliance with same. 11 .O PROPERTY RECORD CARDS The City will be responsible for providing departmental approved CAMA record cards for each parcel. The City shall provide record cards that include the property owner's name and address as outlined in Section 70.1 7 of Revised Code, legal description, parcel number and size of land parcel there available as listed on the assessment roll. Appropriate record cards shall be used in the valuation and collection of data for residential improvements including farmhouses, commercial improvements, 0 Revaluation Services ~ ~~ and agricultural improvements. All information relating to improvements shall be obtained and shown as provided on the respective forms. 12.0 APPROACHES TO VALUE 12.1 Tvpe of Amroach The Company shall consider the cost, market, and income approaches in the valuation of all vacant and improved parcels of property. I. I I I 12.2 Sales Analvsis The Company shall analyze sales data provided by the City and secure and analyze data on its own 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. 12.3 Income Analvsis In valuing income producing properties, the appraiser 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 7 Revaluation Services I 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 City. 13.0 DATA FOR EVALUATION The Company shall gather and analyze market value data including, but not limited to sales, lease data, rentals, rates of return, operating statements, vacancy factors, and construction costs for use in determining property valuation standards pursuant to Section 70.32 and 70.34 of the Wisconsin Statutes. Data gathered will either be noted on the property record cards or contained within supplements to the record cards. 14.0 NEIGHBORHOOD DELINEATION The Company shall update existing neighborhood delineations for the entire City and provide the City with a color coded map indicating the various neighborhood designations. The neighborhood identification procedure shall conform to the City's CAMA software product. 0' 15.0 DATA MANAGEMENT This section will outline the Company's procedures for collecting and encoding the data collected into the City's CAMA System. COl€L4YER-lRUMBlE COMPAh'Yc?Tm 8 Revaluation Services 1. 2. 3. 4. Residential and Commercial Property Record Cards shall be completely filled out so property information is CAMA ready for entry into the City's CAMA System. The Company shall encode or perform data maintenance to all property records as needed. The Assessor's records will be available for use in the Assessor's office; release of said records are subject to the Assessor's approval, however, in no case will the use of these records be utilized in place of an inspection of the property unless inspection has been refused by the property owner. The Company is aware that some properties may have to be reinspected because of permit alterations and/or additions to the improvements. There will be no additional fee for such reinspection or subsequent revaluation required because of such alterations and/or additions. The City and the Company 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. COLE-UYER.TRUMBLE COMPMUA 9 Revaluation Services 1i 16.0 16.1 5. The Company shall present a list of all partial assessments of improvements as of January 1, 1998, to the City, so that they may be readily identified and reappraised for the subsequent assessment roll. IMPROVEMENT VALUATION The Company proposes to follow the guidelines listed below in determining improvement revaluation. Valuation Approach The Company shall value improvements in accordance with the Wisconsin Property Assessment Manual and the City's CAMA System. The three (3) industry recognized approaches to value; Le., cost, income, and market, shall be considered by the Company for all parcels. 16.1.1 Residential ApDroach In valuing residential improvements, prescribed forms, or their equivalent as approved by the Department, shall be used in determining final values. The property record cards shall be completed as recommended for use with the City's CAMA System with proper base costs selected as appropriate and adjusted to reflect differences from base building values. 10 Revaluation Services 16.1.2 Aaricultural ADDroach In valuing agricultural outbuildings, the current replacement costs should be determined for all sound buildings. Buildings in poor condition, having little or no value, shall be physically described and listed as having "no value" or given an appropriate sound physical value. 16.1.3 i I I Commercial ADproach In valuing commercial improvements, properly record cards shall be completed by the Company as recommended for use with the City's UNIVERS 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 City's UNIVERS 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. Revaluation Services 17.0 LAND VALUATION The Company shall provide the following approach to the revaluation of land characteristics: 17 1 Classification Land classified as Agricultural shall be assessed at the same assessment as 1995 under the Use value Assessment Law. Land in another classification in 1995 shifted into the Agricultural Land classification in 1996 shall be at its 1995 assessment, regardless of its previous classification or use. Land classified as Agricultural in 1995, shifted to another classification in 1996 shall be assessed at its market value in the Other (new) classification. Agricultural buildings and the land necessary for the location and convenience (site) shall be assessed at fair market value. in the Other classification. Values of Swamp & Waste, Timber, and Other shall be determined from an analysis of sales and other available market data. Market sales shall be used in the development of Other land units values. In the analysis of sales, work forms shall be prepared for recording data on each sale analyzed and correlating price data from the sales. Such forms shall be left with the City Revaluation Services 17.2 Basic Unit Values t 1 I I I I 0 f I I 8- Basic unit values shall be determined for residential and 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 showing data collected and unit value determinations. Such records shall be left with the City. Having determined basic unit values, the Company shall apply such to each parcel, making adjustments to account for particular characteristics of the site as required by the City's CAMA System. For residential, and commercial lands, maps and schedules will be prepared indicating unit values used and locations thereof to be left with the City. 17.3 Land Tables A copy of all charts, schedules and tables, not previously referred to, including depth factor tables, and used in the valuation of lands shall be left with the City. 18.0 VALUATION OF TAXABLE PERSONAL PROPERTY The City will be responsible for valuing all taxable personal property for 1998. However, the Company will try to coordinate the valuation of fixed assets so that a duplication of effort and taxation does not exist. 13 Revaluation Services 19.0 FINAL FIELD REVIEW Prior to open book conference, the Company will make a final field review. Each parcel will be reviewed at the property location. In the final review process, the indicated value of the structure and the indicated value of the land shall be compared against sales information concerning the same parcel or comparable parcels. For commercial properties where a determination of value has been made via the income approach, this value shall also be reviewed at this time to make the proper correlation of values between the cost, market and income. The review will cover each parcel so as to eliminate errors in computations that may have occurred, to ensure uniformity in record card and form completion by various personnel 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. The final review will account and adjust for factors which may have a direct bearing on the market value and/or equitable relationship to other properties. The Assessor or any of his staff may at any time during the final field review accompany the appraiser to check his/her work. 14 Revaluation Services 20.0 ASSESSOR TO REVIEW ASSESSMENTS Prior to sending notices and open book conferences, the Assessor’s staff shall have ample time to review assessed values on real estate. Such review will include property record cards and all other material prepared for the revaluation. 21 .O OPEN BOOK CONFERENCE Upon completion of the Assessor’s staff review of assessments and prior to the completion of the assessment rolls, the Company shall hold open book conferences for the purpose of enabling property owners or their agents to review and compare the assessed values. il A sufficient number of qualified Company personnel, approved by the City, will be available to conduct open book conferences for a period of up to forty (40) person work-days, Monday through Friday, at a place designated by the City. The open book conferences will be held in an orderly manner with the least confusion to the property owner Conferences on an appointment basis is the preferred method to attain this result. The City and the Company 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 time shall include evening hours. Revaluation Services ~ The City 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 prescribed by the Department of Revenue as provided in Section 70.365 to be supplied by the City. The City 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 ten (10) days prior to the first day of conferences for the convenience of the property owners. Expenses related to the notices shall be the responsibility of the City. Open book conferences will be held within the completion date specified in the Contract. In the event that the City requests that the open book conferences be held at a date beyond the contracted completion date, and provided the Company agrees to such, the Contract shall be extended commensurate with the lapse of days between the originally contracted completion date, and the revised date for open book conferences. Such extension shall be in writing and signed by both the City and the Company. The base fee includes forty (40) person work-days for support of values. The Company shall be further compensated for each person-day involved over and above forty (40) work-days based on a fee of SEVENTY FIVE DOLLARS ($75.00) per hour (four (4) hours minimum) for additional participation in support of values. I6 Revaluation Services ! ! II 0 22.0 23.0 0 COMPLETION OF ASSESSMENT ROLL The Company shall assist the City in proper completion of the 1998 assessment roll in accordance with the current statutes. Final assessment figures for each property shall be provided by the Company to the City and the roll shall be totaled. The City shall prepare and submit the "Assessor's Final Report" to the Supervisor of Assessments, with a copy to the Company. BOARD OF REVIEW At the request of the City, the Company and/or certified member(s) of its field staff will attend meetings of the Board of Review to explain and defend the assessed value and be prepared to testify under oath in regard to such values. In the event of appeal to the Department of Revenue or the courts, it is agreed that the Company and/or qualified representative(s) shall be available upon request from the City 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. The base fee includes five (5) person work-days for support of values. The Company shall be further compensated for each person-day involved over and above five (5) work-days based on a fee of SEVENTY FIVE DOLLARS ($75.00) per hour (four (4) hours minimum) for additional participation in support of values. 1 17 ... U Revaluation Services 24.0 RESPONSIBILITIES OF THE CITY This section will outline the responsibilities of the City to ensure that a successful revaluation program is implemented. 24.1 Office Space The City will furnish suitable office space at no cost to the Company in or near the City Hall. Office space shall include local phone service, tables, chairs, heating, lighting, and janitorial services, and access to photocopy equipment. The City will also provide two (2) CRTs and access to a printer located in or near the project office. 24.2 Access to Records The City shall allow access and make available to the Company, City 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 City, at no cost. 24.3 Propem Identifications To furnish the name and address of the owner and the lot and block number, size or other identifying description of each parcel to be appraised; such information to be placed on property record cards by the City. 18 Revaluation Services 24.4 Provision of Forms The City shall provide approved forms, binders, record cards, adhesive backed labels, and other materials, and new assessment notice forms as necessary for the completion of the revaluation. 24.5 Maps The City shall furnish two (2) sets of plat maps, section maps, and any other maps currently in the possession of the City, to the Company, at no cost. I ! P I i 1 4 4 1 24.6 Notices for New Assessments To furnish the name and correct address, if known, to the Company for notices to be sent on assessed values. 24.7 ClericallSecretarial Sup~ort The City Assessor's office will provide the necessary clerical and/or secretarial support required for the successful completion of the project. The hours required will be mutually agreed upon between the City and the Company. 24.8 Miscellaneous General Aareements The City governing body shall refrain from interfering with, or influencing any value estimate by the Company. 19 a d Revaluation Services The City shall aid the Company in a responsible promotion of public information concerning the work under this Agreement. 24.9 Hardware Reauirements The City shall provide, maintain, and assure reasonable Company access to the data processing facilities on which the Company will encode the data for the revaluation. 25.0 GENERAL PROVISIONS The Company will begin work on or before September 1, 1997. The Company will complete all work under this Agreement by not later than July 1, 1998, with the exception of informal hearings, Board of Review support, and necessary subsequent appearances in relation to the Board of Review appeals. The City Assessor may extend the due date for completed work for one (1) period of thirty (30) additional calendar days for sufficient reason, without penalty, upon written request of the Company. The Mayor and/or Common Council may extend the due date for completed work for a second thirty (30) day period. Such request shall provide documentation of the reasons for the extension of the due date. 20 Revaluation Services Failure to complete the appraisal records and office records by July 1, 1998, or two (2) extension periods as provided in the above paragraph will be cause for penalty payment by the Company in the amount of ONE HUNDRED ($100.00) per calendar day up to the date such work is completed. Such penalty will be deducted from the contract sum owed the Company. 25.1 Contract Deliverables Within fourteen (14) days of the final adjournment of the Board of Review, the Company shall turn over to the City all records prepared for the revaluation including, but not limited to, computer generated output, maps, and any other scheduled or forms, (b) all records and materials obtained for the City 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 City to include 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. 26.0 PROJECT STAFFINGECHEDULE The Company shall submit a project plan. The plan will include key milestone dates needed for the successful completion of the revaluation process. 21 SCHEDULE B NEW CONSTRUCTION 1 .o 11 1.2 1.3 2.0 2.1 2.2 2.3 2.4 2.5 TABLE OF CONTENTS Schedule B WORK TO BE PERFORMED BY THE COMPANY Residential New Construction Commercial New Construction .... ... Percentage of Completion . ... ... RESPONSIBILITIES OF THE CITY . Maps ... ... Office Space and Local Phone Service . . Splits, Combinations, Transfers, New Construction Clerical/Secretarial Support Paper, Forms, Postage .. ...... 1 1 1 ..2 ..... 2 2 .. .2 .. 2 .3 ... .3 New Construction SCHEDULE B SERVICES TO BE PROVIDED 1.0 WORK TO BE PERFORMED BY THE COMPANY The Company will provide services to assist the Assessor in maintaining assessed values for residential and commercial real property that has undergone physical changes during the period January 1, 1997, through December 31, 1997. 1.1 Residential New Construction The Company will provide exterior and interior inspection, field work, completion of the property record card, pricing, and final valuation work for new construction, remodeling, additions, garages, and miscellaneous permit work for residential parcels at the request and direction of the City Assessor's office. The data and final valuations shall be in accordance and equity with the Muskego assessment database that is in place for 1998. 1.2 Commercial New Construction The Company will provide exterior and interior inspection, field, work, completion of UNIVERS property record card, pricing and final valuation work for new or remodeled commercial/multi-family properties, including miscellaneous permit work for same at the request and direction of the City I __.._,__I._. -. I I I I I. I I 1 1 I 1 New Construction Assessor's office. The data and final valuations shall be in accordance and equity with the Muskego assessment database that is in place for 1998. 1.3 Percentaae of Completion The Company shall present a list of all partial assessments of improvements as of January 1, 1998 to the City so that they may be readily identified and reappraised for the subsequent assessment roll. 2.0 RESPONSIBILITIES OF THE CITY 2.1 Maps Copies of the latest tax maps and updates as received will be provided by the City. 2.2 Office Space and Local Phone Service Suitable office space for Company supervisory personnel and space required for meetings and.training sessions, in addition to local phone service, will be provided by the City. 2.3 Splits. Combinations. Transfers, and New Construction The City will make available information concerning splits, transfers, and new construction as it is received. 2 New Construction 2.4 ClericaVSecretarial Support The City Assessor's office staff will provide the necessary clerical and/or secretarial support required for the successful completion of the project. The hours required will be mutually agreed upon between the City and the Company. 2.5 Paper. Forms. and Postaqe The City is responsible for the cost of all field cards, notice forms and postage. 3