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Consent-General Government # 11.
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| Board of Supervisors |
Financial Services |
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| Subject |
| Approve agreement with Megabyte Systems Inc., in the amount of $263,768, for property tax system maintenance and support from July 1, 2019 through June 30, 2020. (General fund impact $263,768) (Rinde) |
| Recommended Action |
- Approve agreement with Megabyte Systems Inc., in the amount of $263,768, for property tax system maintenance and support from July 1, 2019 through June 30, 2020. and authorize County Assessor-Clerk-Recorder-Registrar of Voters and County Chief Financial Officer to execute the agreement; and
- Delegate authority for County Assessor-Clerk-Recorder-Registrar of Voters and County Chief Financial Officer to renew the Megabyte software support agreement for 2020-21 and 2021-22 with cost increases not to exceed CPI.
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| Strategic Plan Goal(s) |
| Operational Excellence |
| Reason for Recommended Action/Background |
The Megabyte Property Tax System was first implemented in the County for the 2008-09 fiscal year. At that time, the system cost approximately $922,000 to purchase and implement (excluding staff time and effort for which information is not readily available). Megabyte is a three part system designed to manage information for the different offices involved in the property tax process, and move required documentation between the County Assessor, County Auditor-Controller, and County Tax Collector in order to bring efficiencies in administering the property tax system. The County Auditor-Controller's Office was consolidated with the Treasurer-Tax Collector's Office in 2007 and both functions were further consolidated in 2014 under a Chief Financial Officer in the Department of Financial Services.
The Megabyte system has reached an age of ten years. However, due to continual improvements from the vendor the system continues to meet it's goal of efficiently administering the County's property tax process and has not yet reached it's useful life. Since the time Yolo County implemented the Megabyte system, the statewide user base has expanded. According to data provided at the May 2019 State Auditor-Controller Association technology update, 32 of the 58 counties are now on the Megabyte platform. In comparison, the next largest group of counties on a common tax system is 8 counties that are either on or in the process of moving to a Thompson Reuters Aumentum system. Beyond that, the remainder of the counties generally have in-house custom built systems, or are on various other systems with no more than 3 counties on a common system. Costs of the Megabyte system are included in Property Tax Administration charges that are billed to eligible taxing entities (school districts, colleges, and office of education are legally excluded from paying property tax administration charges).
At the June 10, 2008 Board meeting, when the Megabyte system was approved, the Board of Supervisors delegated authority to the County Assessor and County Auditor-Controller-Treasurer-Tax Collector to renew the Software Maintenance Agreement annually. On July 1, 2018, the Board of Supervisors updated the County procurement policy which rescinded prior delegated procurement authority to Department Heads outside of the Procurement Agent function.
As a result, the Department of Financial Services is requesting a delegation of authority by the Board of Supervisors for the County Assessor-Clerk-Recorder-Registrar of Voters and Chief Financial Officer to approve the software support agreement for the upcoming fiscal year (2019-20) in the amount of $263,768 and for the next two subsequent fiscal years (2020-21 and 2021-22) as long as the costs increases by Megabyte do not exceed the level of CPI increase. The request for delegated authority and the sole-source request to continue to utilize the Megabyte system has been reviewed and supported by the County Procurement Manager. |
| Collaborations (including Board advisory groups and external partner agencies) |
| The Department of Financial Services collaborated with the Assessor-Clerk-Recorder-Elections (ACE) Department on the renewal of the Megabyte software maintenance and support agreement. |
| Competitive Bid Process |
| A sole source justification was completed by the Department of Financial Services and was reviewed and approved by the County Procurement Manager. |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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Explanation (Expenditure and/or Revenue) |
| Further explanation as needed: |
| The fiscal impact to the 2019-2020 budget is $263,768 and the funds are budgeted in the Assessor/Clerk-Recorder/Elections Department and Department of Financial Services budget. The costs historically have been split with 2/3 of the cost being charged to DFS and 1/3 being charged to the Assessor. |
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