REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
October 8, 2024
FROM
CHRIS WILHITE, Assessor-Recorder-County Clerk
SUBJECT
Title
Memorandum of Understanding Regarding the California County Assessors Shared Systems Contracts
End
RECOMMENDATION(S)
Recommendation
Approve Memorandum of Understanding for participation in the California County Assessors Shared Services Program and Shared Services Contracts by, between, and among the California Assessors’ Association, participating California Counties, and the California Board of Equalization, for the two-year contract term, retroactively beginning on July 1, 2024, through June 30, 2026, in an amount not to exceed of $90,000.
(Presenter: Chris Wilhite, Assessor-Recorder-County Clerk, 382-3208)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Improve County Government Operations.
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 Memorandum of Understanding (MOU), will be forwarded to the California Assessors’ Association (CAA) for participation in the California County Assessors Shared Services Program and Shared Services Agreement (Agreement), which is Attachment A to the MOU. The associated costs are estimated to not exceed $90,000 under a two-year contract term. Adequate appropriation and revenue are included in the Assessor-Recorder-County Clerk’s (ARC) 2024-25 budget (3111001000) and will be included in future recommended budgets.
BACKGROUND INFORMATION
Businesses that operate in California with property over $100,000, or when requested by the Assessor Division of ARC, are required by law to report business personal property holdings to the County Assessor in which the property is located. Property is reported annually on standard Business Property Statement (BPS) forms approved by the California State Board of Equalization (BOE). These forms can be filed electronically through shared systems, using Standard Data Record (SDR and eSDR), processed through the California Assessor SDR and eSDR website address for the County.
The eSDR electronic filing system is designed for individual businesses to electronically file property statements. The SDR electronic filing system is designed for mid-size to large businesses that may have operations in more than one county, and for tax representatives that file bulk property statements on behalf of their clients. The SDR and eSDR have streamlined the filing process for businesses and enhanced ARC’s productivity in reviewing and valuing property reported on the statements. Electronic filing has substantially improved statement handling and provided business efficiencies for this annual process. Electronic filing eliminates most aspects of handling paper documents. Valuation and processing time for electronic statements is approximately 35 percent lower than for paper statements. The process removes most data entry and enhances workflow functions through automation.
The total cost for the SDR and eSDR is based on the contractual estimate, from the vendor providing the services in the Agreement, with a five percent contingency added for unexpected costs plus any out-of-scope efforts. ARC’s annual shared costs for SDR and eSDR will be based on actual usage from the prior filing period.
The BOE approves and publishes numerous forms for submissions to local Assessor offices for various reporting and exemptions, including veterans, and other assistance. The eForms website provides information and allows for property owners to access, complete, print, and submit these forms to their local Assessor office.
The total cost for eForms is based on the contractual estimate from the vendor providing the services in the Agreement with a five percent contingency added for unexpected costs. ARC’s annual shared costs will be based on the actual number of parcels determined by a query from a reliable data source that includes secured and unsecured parcels as of the date of the query (not prior roll year), as the anticipated number of parcels for the next fiscal year. The BOE has agreed to pay 20 percent of this cost.
On April 5, 2005 (Item No. 24), the Board of Supervisors (Board) approved Joint Powers Agreement (JPA) No. 05-225, for the development of, and participation, in the Shared Services Program. Under the authority of the JPA, the CAA notifies and bills ARC annually for their portion of the shared costs that are calculated based on the methods described above. ARC’s shared costs, typically, do not exceed $45,000 per year with an average annual expenditure of $36,575 over the last six-year period.
Effective July 2024, the CAA no longer offers the shared services under the JPA and is transitioning the governance of these services to this MOU. The purpose of this MOU is to outline the parties’ respective participation, responsibilities, and duties for the Shared Services Program and Agreement. The CAA contracts with Modern iConcepts Inc., for technical services and maintenance support of the shared systems through the Agreement, which is included in the MOU. This MOU shall be administered by the Vice President of the CAA, who shall be responsible for administering the Agreement with the vendor. The ARC will reimburse the CAA for its respective share of costs for the Agreement, before the start of a new service period. Upon expiration or termination of the MOU, the CAA will return ARC’s portions of the remaining principal and accrued interest.
This MOU is retroactive and being presented to the Board at this time because of a delay in CAA’s approval process. CAA went through their counsel for the change from a JPA to an MOU and had to be approved by committees and their Executive Board. ARC received the MOU in late June 2024.
Approval of this MOU will allow the County to continue participating in this statewide effort to meet the needs of business filers and the Assessor Division of ARC.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Kenneth Brown, Deputy County Counsel, 387-5455) on September 18, 2024; Finance (Penelope Chang, Administrative Analyst, 387-4886) on September 20, 2024; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on September 23, 2024.