Finance Committee

City of Oconomowoc Finance Committee Aldermen: Rosek, Chairman / Ellis, Secy / Spiegelberg Tuesday, July 07, 2020 - 6:40 PM City Hall - Conference Room 3 Notice: If a person with a disability requires that the meeting be accessible or that materials at the meeting be in accessible format, call the City Clerk at least 48 hours prior to the meeting to request adequate accommodations. Tel: 569-2186. 1. Call to order and confirmation of appropriate meeting notification 2. Committee Business a. Consider/recommend Approval of Assessor Contract 2021-2025 3. Adjourn ________________________________ Diane Coenen, City Clerk City of Oconomowoc Notice is hereby given that a majority of the Common Council will be present at the above scheduled meeting to gather information about a subject over which they have decision-making responsibility. This constitutes a meeting of the Common Council pursuant to State ex rel. Badke v. Greendale Village Board, 173Wis. 2d 553, 494 N.W. 2d 408 (1993) and must be noticed as such, although the Common Council will not take any formal action at this meeting. 1  MEMORANDUM FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT Date: June 30, 2020 To: Mayor Magnus, Finance Committee, Common Council From: Laurie Sullivan, Director Re: Assessment Services 2021-2025 RELATES TO THE STRATEGIC PLAN N/A BACKGROUND The City’s current contract for assessment services will expire December 31, 2020. In May the City sent out Requests for Proposals to assessment firms for services for 2021-2025. We posted our ad in the newspaper, the City Website and the League of Municipalities classifieds. Four requests for RFP’s were sent out. ADDITIONAL ANALYSIS The last City Revaluation was in 2014 and we have been using maintenance assessment services ever since. At this time the City’s assessed to equalized value ratio is below 87%. In order to bring our assessed values back up closer to the Equalized value we will either need to do a full revaluation or change our assessment process to Full Value Market Assessments. The full revaluation is the more costly option. FINANCIAL IMPACT The City uses a qualifications based selection process when evaluating professional service contracts. For this process proposals were evaluated in two steps. 1. Technical Requirements/Qualifications – 80% (80 points)  The RFPs were evaluated and scored based on qualifications of assigned staff, relevant experience, demonstration of high level of accuracy and customer service, and the use of a computerized system with access available to city staff. 2. Contract Cost – 20% (20 points)  Pricing for proposers who addressed the requirements outlined in the proposal were reviewed, where the lowest contract cost is awarded the maximum points for cost. Other firms are awarded points based on the percentage of their contract price compared to the low cost proposal. The City received and reviewed two proposals. Using the Full Value Market Assessment program for five years, the results of the scoring in step 2 are shown below: 1 2  Step 2 - Qualified Firms With Pricing R Average Contract a Technical Cost Total n Proposal % Cost Qualified Firms - Step 2 Pricing Points Points Points k Cost Points Accurate Appraisal 192.3 50.0 242.3 1 $ 347,500 100% Grota Appraisal 181.8 32.5 214.3 2 $ 534,500 65% Total Possible Points 200.0 50.0 250.0 80% 20% 100% Another option for service would be to do a 5-year Full Value Program with 20% walk-thru inspections each year. The cost for the optional program is $599,500 for the 5 year contract ($119,900/year). The City currently budgets $72K each year for Maintenance only Assessment services. The new contract amount is $69,500 per year for 5 years for Full Value Market Assessments. RECOMMENDATION Based on the evaluation process, we recommend the City contract with Accurate Appraisal for a five-year term covering 2021-2025. Accurate Appraisal was awarded the highest total points and was also the low cost bidder. Accurate Appraisal currently services 104 municipalities in Wisconsin, including many lake communities. Addie Ebert or Accurate will be present at the Finance Committee meeting to review the proposed assessment services and answer questions. MOTION Motion to approve a five-year contract for assessment services with Accurate Appraisal using the Full Value assessment approach, with a 5-Year contract cost of $347,500. 2 3