REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
April 9, 2024
FROM
CHRIS WILHITE, Assessor-Recorder-County Clerk
SUBJECT
Title
Amendment to Agreement with CoStar Realty Information, Inc. for Online Appraisal Data Licenses
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 3 to Agreement No. 21-184 with CoStar Realty Information, Inc., for online appraisal data licenses, increasing the agreement amount by $119,309, from $305,578 to $424,887, and extending the term by one year, for a total agreement term of April 1, 2021 through April 29, 2025.
(Presenter: Chris Wilhite, Assessor-Recorder-County Clerk, 382-3208)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of additional Discretionary General Funding (Net County Cost). The cost to extend the term by one year for the period of April 30, 2024 through April 29, 2025, for 36 user licenses is $119,309. The cost of the licenses will be billed in full in fiscal year 2023-24. Adequate appropriation is included in the Assessor-Recorder-County Clerk’s (ARC) 2023-24 budget (3111001000).
BACKGROUND INFORMATION
On March 9, 2021 (Item No. 8), the Board of Supervisors (Board) approved Agreement No. 21-184 with CoStar Realty Information, Inc. (CoStar) for 32 user licenses to access online appraisal data in an amount not to exceed $178,720 from April 1, 2021 through March 31, 2023.
On August 10, 2021 (Item No. 10), the Board approved Amendment No. 1 to Agreement No. 21-184 with CoStar, increasing the original amount of $178,720 by $17,400 for a total agreement amount of $196,120, and increasing the original number of user licenses from 32 to 36, with no change to the term of April 1, 2021 through March 31, 2023.
On March 28, 2023 (Item No. 17), the Board approved Amendment No. 2 to Agreement No. 21-184 with CoStar, for 36 user licenses to access online appraisal data, increasing the agreement amount by $109, 458, from $196,120 to $305, 578, and extending the term by one year, for a total agreement term of April 1, 2021 through April 29, 2024, with a one-year option to extend the term of the agreement. Additionally, Amendment No. 2 made modifications to the term of the agreement, which ARC learned after Amendment No. 1 was approved was different from what was presented to the Board on March 9, 2021, and August 10, 2021. At that time ARC had presented to the Board an expiration date of March 21, 2023. CoStar representatives explained that this agreement was a 24-month plus prorated agreement with an effective date of April 1, 2021, and an expiration date of April 29, 2023, which effectively made the original agreement 25 months. Amendment No. 2 established a new effective date of April 30, 2023, which transitioned the agreement to a true 12-month agreement.
Approval of Amendment No. 3 will extend the agreement by one year for the period of April 30, 2024 through April 29, 2025, for 36 user licenses to access online appraisal data that is necessary for appraisal staff to access vital online appraisal lease data and market for commercial, industrial, and multi-family properties. Approval of Amendment No. 3 will also increase the agreement amount by $119,309, from $305,578 to $424,887.
The Assessor Division of ARC is responsible for establishing a value for all locally taxable property including residential, commercial, business and personal property, and assessment appeals. The appraisal data provided by CoStar is used by ARC appraisers to prepare appraisals and defend ARC valuations against appeals initiated by property owners.
PROCUREMENT
As a result of a non-competitive process, on March 9, 2021 (Item No. 8), the Board approved Agreement No. 21-184 with CoStar.
CoStar is a nationally recognized source of data and analytics pertaining to the multi-family and commercial real estate markets. Its online system provides information about sales, listings, rents, lease terms, operating expenses, marketing times, and other data routinely used by appraisers and real estate professionals. CoStar also provides data pertaining to unique property types such as golf courses, hospitals, sports and entertainment venues, and huge regional shopping facilities in real estate markets beyond the Inland Empire region. CoStar is the only vendor that offers this scope of data and analytics.
The County Purchasing Department recognizes the specialized credentials and expertise of CoStar and supports the continued non-competitive procurement of these licenses from CoStar.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Kenneth Brown, Deputy County Counsel, 387-5455) on March 13, 2024; Purchasing (Alberto Cazares, Lead Buyer, 387-3376) on March 15, 2024; Finance (Penelope Chang, Administrative Analyst, 387-4886) on March 19, 2024; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on March 25, 2024.