Alleghany County Tax Office

REQUEST FOR BIDS POLK COUNTY, NC REAPPRAISAL PROJECT

This document constitutes a request for bids from qualified appraisal firms capable of meeting the needs of the Octennial Reappraisal as required by N.C.G.S. 105-286,(a),(1). OBJECTIVE This request is to provide interested professional appraisal firms with sufficient information to enable them to submit a bid to the POLK County Tax Administrator for the completion of the octennial reappraisal. SCOPE OF WORK The successful contractor will perform and carry out in a satisfactory and professional manner the following: A) The contractor shall furnish POLK County with labor, materials and supplies to perform all work required for the completion and delivery of a computerized revaluation of all real property in POLK County. B) The contractor shall furnish the County with property record cards that meet the requirements of the Tax Administrator. C) The contractor shall assist the Tax Administrator and shall advise, and aid the Board of Commissioners and the Board of Equalization and Review in arriving at the true value in money of all real property in the County. D) The contractor shall provide the Tax Administrator with a detailed schedule showing the estimated beginning and completion dates for each phase of work covered by the contract. E) The contractor is assumed to be familiar with all federal, state and local laws, codes, ordinances and regulations and shall at all times observe and comply with such. F) The contractor is to prepare and submit to the County for approval a schedule of land values, standards and rules which when properly applied will result in appraising all real property in an equitable manner. The schedule is to be approved by the County prior to finalizing any values. G) The contractor shall train any personnel designated by the County in the appraisal techniques and procedures utilized by the contractor. Instruction shall also be provided in the use of the appraisal manual for all types of real property. H) Upon delivery of completed appraisal work, notice of the new value will be prepared for all real property owners by the contractor. The forms for the assessment notice will be provided by the contractor. I) The contractor shall provide a project manager or responsible head of field organization in charge of the revaluation program. The project manager shall be present at all official meetings of the Board and Equalization and Review and all informal hearings following the completion of the work until all complaints are heard and disposed of, and to assist with complaints and define the values placed on various properties. J) The contractor shall provide qualified appraisers to assist the County in the event of appeals from the County Board of Equalization and Review to the Property Tax Commission, or the Courts. K) The contractor shall provide digital photographs of all existing dwellings, commercial and industrial buildings as provided by the specifications stated in the RFB. L) Based on this bid, the successful contractor shall be required to post for the duration of the contract a performance surety bond in an amount equal to 100% of the contract and must follow the specifications stated in the RFB described in section (E). 1 SCHEDULE The request for bid will be available to contractors: April 27, 2015. The bid submission date to the County is: May 11, 2015. The bids will be opened May 11, 2015 The anticipated award date of bid is June 1, 2015 Any request for an extension of submission date will not be awarded. The awarded contractor shall begin work on or before: July 1, 2015. PERFORMANCE SURETY BOND The successful contractor shall furnish a personal surety bond in an amount equal to 100% of the contract. This bond must commence with the contract award. The POLK County Board of Commissioners shall be named as oblige or payee in all required deposits or surety. SUBMISSION OF BIDS Bids must be presented in a sealed envelope and mailed or delivered to the Tax Administrator, 51 Walker St, PO Box 308, Columbus, NC 28722. The envelope shall be plainly marked, Bid for the County Octennial Reappraisal, to be opened May 11, 2015. Each contractor must include a letter of transmittal which bears the signature of an authorized representative of the contractor and also includes the names of the individuals authorized to conduct business with the County. Defective or irregular bids will be rejected immediately. BID CONTENT Bid content and completeness are important in the evaluation process. Straightforward and simple presentations are considered to be most effective means of communication. The cover of the bid should clearly state the name of the respondent. Bids shall be prepared using the following format. A) Cover Letter The cover letter shall contain a brief summary of the key points of the proposal. B) Experience Record The contractor shall provide an accurate description of its experience relevant to this reappraisal project. References must be provided by the contractor and by individuals, including the address and telephone number of the principal agent responsible for overseeing the contract. C) Budget/Cost Bid This portion of the bid must categorize the contractor’s price per parcel. POLK has an approximate total of 16,699 real property parcels. Costs for digital photography shall be itemized separately. Any training, support and maintenance, data conversion and custom programming should be itemized. D) Sample of Proposed Contract A copy of the contractor’s standard or proposed contract shall be submitted for review. E) Appendices Appendices should include any unsolicited information that the respondent believes to be important to an understanding of the bid. Any additional or alternative services included in the bid must be described in detail to enable the County to appraise them. Each section should be clearly marked for easy reference. PROPRIETORY INFORMATION All bids submitted in response to this request for bid become the property of the County. Supporting technical materials will be returned at the request of the contractor. Bids submitted may be reviewed and evaluated by any person(s) at the discretion of the County. REQUEST FOR BID QUESTIONS AND AVAILABILITY OF DOCUMENTS Questions may be addressed to Melissa Bowlin, POLK County Tax Administrator at (828)-894- 8500 . If a question warrants a written reply or bid amendment, these documents will be mailed to all parties who submitted bids.

2 EVALUATION OF BIDS The County will evaluate all bids and review their features. Contract award must be approved with an open Board meeting and subject to any provisions required by the Board. The evaluation of bids will include: A) Capability- which contractor provides the most desirable blend of professional qualifications and technical expertise relevant to the County’s legal requirements to conduct an octennial reappraisal? B) Service- which contractor can deliver the best service? C) Cost- which contractor can provide the best blend of capability and service at the lowest cost to the County?

RIGHTS OF POLK COUNTY The County reserves the right to reject any and all bids. The County further reserves the right to waive formalities and technicalities in so far as it is authorized to do so, where in deem advisable in protection of the best interest of the County. Bids may be rejected if they show any omission, conditional proposals or irregularities of any kind.

3 SPECIFICATIONS FOR COMPUTER ASSISTED REVALUATION OF REAL PROPERTY PREPARATION OF TAX ASSESSOR’S MANUAL AND PROPERTY RECORD CARDS FOR POLK COUNTY, NORTH CAROLINA EFFECTIVE DATE: JANUARY 1, 2017

I. Scope of Specifications These specifications cover the furnishing of labor, materials, supplies, and the performance of all work required for the completion and delivery of a computerized revaluation of all real property within POLK County (the County), for the furnishing of property record cards, assistance to the POLK County Tax Administrator and staff and to the Board of County Commissioners and Board of Equalization and Review as specified herein and as directed by the County through its duly authorized agent, the Tax Administrator. II. Appraisals The contractor shall aid and assist the County Tax Administrator and shall advise, aid the Board of County Commissioners and the Board of Equalization and Review in arriving at the true value in money of the real property in POLK County, in the appraisal and revaluation of the following items: (a) Commercial Property For the purpose of these specifications, “Commercial Real Property” shall be held to mean: 1. All land, building and structures thereon used or constructed for commercial purposes. 2. All apartment houses of four or more units and other dwellings designed or redesigned for occupancy by more than three family units shall be classified as a commercial property. 3. Special purpose buildings not classified as industrial shall be included in the appraisal of commercial property. 4. Vacant lots or other parcels of real estate in areas zoned for commercial purposes or in predominantly commercial areas, or which are used in connection with commercial enterprises, or which are primarily suited for commercial development, shall be classified as a commercial property. 5. If all or part of such property shall be within the boundaries of any incorporated town or city, such fact shall be specified and the part within shall be defined, listed and appraised accordingly based on data supplied by the County. (b) Industrial Real Property All lands, and all plants, shops, processing establishments and other structures thereon, used in manufacture, processing or production of any type of material, substance or merchandise, and all other property of this nature within POLK County which by law must be appraised by the County. ( c)Urban and Rural Property The term “Urban and Rural Property” as used in these specifications is defined as all lots, parcels or tracts of land, and all dwelling houses, barns, outbuildings and other structures thereon, located in POLK County which are not defined as “commercial real property” or “industrial real property” and which by law must be appraised by the County.

4 (d) Agricultural, Horticultural and Forestland; and Wildlife Conservation For the purpose of these specification, “Agricultural, Horticultural and Forestland” is defined as: All agricultural land containing ten acres or more and all horticultural land containing five acres of land or more and all forestland containing twenty acres or more which may or may not qualify for present use assessment under the provision of GS 105- 277.2, 105-277.3 and 105-277.4. Also to be included is property classified under the Wildlife Conservation Program under the provision of GS 105-277.15.

(e) Manufactured homes and modular homes A determination of whether a manufactured home will be considered real property or personal property will be determined in accordance with 105-273 (13). Guidelines for making this determination will be developed by the contractor, approved by the Tax Administrator and included in the manual described in section IV, of this agreement. These manufactured homes determined to be real property will be measured, listed and appraised. Modular homes will be considered real property and will be measured, listed and appraised. Manufactured housing that is determined to be personal property will be noted on the property record card of the parcel on which it is located. (f) Exempt Property It is specifically understood that property wholly or partially excluded from taxation shall be appraised and valued by the contractor, including all property owned by governmental units located within POLK County. This shall be done in the same manner in which non-exempt property is appraised. (g) All other Real Property All other real property, not covered by the preceding paragraphs, located in POLK County, and required by law to be appraised will be appraised. (h) Property of Public Service Companies Contractor shall not appraise property of Public Service Companies that is appraised by the North Carolina Department of Revenue, however, contractor shall appraise all real property that is not appraised by the State Department of Revenue. (i) Personal Property These specifications do not provide for the appraisal of commercial furniture and fixtures, industrial machinery and equipment or other personal property by the contractor. However, the approved Schedule of Values should include a listing of what improvements are included in the real property value that may otherwise be considered as leasehold personal property improvements. III. General Conditions (a) Direction of Revaluation Program All decisions as to procedure followed and forms used in the revaluation shall be made by the Tax Administrator of POLK County. While final decision of values to be assigned properties for tax purposes must by law be made by the officials of POLK County, contractor’s responsibility under this contract is to advise the County as to the current market value of each item of property appraised as in Section B, below. The entire procedure of the revaluation program is to be in accordance with all applicable statutes of North Carolina, being subchapter II of Chapter 105 of the General Statutes of North Carolina and all other applicable statutes of North Carolina relating to the reappraisal of property. (b) General Instructions All property, as herein defined, shall as far as practical, be valued at its true value in money as of January 1, 2017. The intent and purpose of these specifications is to have all real property appraised at its true value in money. The term “true value” of property is defined as its market value, that is the price estimate in terms of money at which the property would change hands between a willing and financially able buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of all the uses to which the property is adapted and for which it is capable of being used. 5 In determining the true value of land, the appraiser shall consider as to each tract, parcel, or lot separately listed at least its advantages and disadvantages as to location; zoning; quality of soil; water power; water privileges; mineral, quarry or other valuable deposits; dedication as a nature preserve, conservation easement; fertility; adaptability for agricultural, timber producing, commercial, industrial, or other uses; past income; probable future income; and any other factors that may affect its value, except growing timber and crops of a seasonal or annual nature.

Prior to commencement of appraisal work (reviewing) the contractor will prepare and submit to the County for approval a schedule of land values, standards and rules which, when properly applied, will result in appraising all property in an equitable manner. The schedule is to be approved by the County prior to finalizing any values.

In determining the true value of a building or other improvements the appraiser, in accordance with the provisions of General Statute 105-317(a)(2) shall consider at least its location, type of construction; age; replacement cost; cost; adaptability for residence, commercial, industrial, or other uses; past income; probably future income; and any other factors that may affect its value.

Buildings under construction or partially completed improvements shall be appraised by the contractor. The improvements shall be appraised to their value in degree of completion as of January 1, 2017. The percent of completion shall be noted on the property record card and the parcel flagged as new construction. This information will be furnished to the county appraisal staff by the contractor. c. Laws to be Observed The contractor is assumed to be familiar with all federal, state, and local laws, codes, ordinances and regulations which in any manner affect those engaged or employed in the work or in any way affect the conduct of the work. No pleas of misunderstanding or ignorance on the part of the contractor will in any way serve to modify the provisions of the contract.

The contractor shall at all times observe and comply with all federal, state, and local laws, orders, codes, ordinances and regulations in any manner affecting the conduct of the work and the contractor shall identify and save harmless the County, its officers, agents and servants against any claim or liability arising from or based on the violation of any such law, ordinance, regulation, order or decrees, whether by contractor or his employees, or anyone acting on the contractor’s behalf. d. Responsibility for Damage Claim The contractor and his insurance carrier shall indemnify and save harmless the County, all its officers, agents and employees from all suits, actions or claims in any character, name and description, brought for or on account of any actual or alleged injuries or damages received or sustained by any persons or property by or from the contractor or his employees. (1) Insurance The contractor shall carry public liability insurance and workmen’s compensation insurance which shall save harmless the County and the County’s representatives from any claims, demands, actions and causes for action arising from any act or the commission of any act by the contractor, his agents, servants or employees. The public liability insurance shall be in an amount satisfactory to the County’s representative, but shall include not less than $1,000,000 coverage against all damages to or claims by persons for death or bodily injury and not less than $ 500,000 coverage against all damages to property. Contractor shall provide the County with certification of coverage prior to commencement of work. 6 e. Performance, Labor and Material Bonds The contractor shall furnish a performance surety bond in an amount equal to 100% of the contract. It must be furnished by a corporate surety authorized to do such business in North Carolina. The bond must secure the faithful performance of the contract in accordance with these specifications. It shall indemnify and save harmless the county from all cost and damages by reason of the contractor’s default or failure to faithfully perform the contract. The contractor shall also furnish a labor and material payment bond to secure full payment to all persons who have furnished labor or materials in the prosecution of the work. This bond shall also provide that all persons who have furnished labor or materials for use in the prosecution of the work under this contract and those specifications shall have direct right of action under the bond, subject to the County’s priority. The bond shall be in effect until such time the performance of the contractor shall deem to be completed as described in Section F. f. Performance of Work The contractor shall begin the work to be performed under the contract no later than July 1, 2015 and shall carry on the program of revaluation as set forth in specifications and work flow schedule and shall complete all field work and deliver said work on or before September 1, 2016, with the exception of new construction completed between September 1, 2016 and December 31, 2016, and buildings partially completed as of January 1, 2017, the appraisal of which shall be the responsibility of the county appraisal staff and it shall be completed on or before March 1, 2017. Informal hearings will begin as soon as possible after September 1, 2016 and will be completed before January 1, 2017.

Within 30 days following the acceptance of the contract by the POLK County Board of Commissioners, the contractor shall present to the Tax Administrator a detailed schedule showing the estimated beginning and completion dates for each phase of work covered by the contract, which schedule shall be broken down to show the beginning and completion dates according to: 1. Geographical area of the County by Townships 2. Types of property 3. Data collection by field listers 4. Office work 5. Review of work by a competent appraiser

The contractor in preparing said schedule shall consult with the Tax Administrator and the schedule shall be subject to the approval of the Tax Administrator. After approval of the schedule by the Tax Administrator, the schedule shall be used as the basis for performance of the work covered by the contract.

Performance by the contractor shall not be deemed to be completed until all hearings with taxpayers before the County Administrator, all appeals before the County Board of Equalization and Review, all appeals to the State Property Tax Commission and all appeals to the Courts are completed with respect to the assessed value of property described in section II. It is fully understood and agreed that the contractor shall assist the County Tax Administrator, the County Board of Equalization and Review, and the County Board of Commissioners in the event any one or all of them are required to appear before the Property Tax Commission or the Courts in matters growing out of complaints concerning the assessed value of property required to be valued under the contract. The contractor shall provide expert testimony in matters arising out of the subject of this agreement.

7 g. Personnel The contractor shall use competent employees of good character and an adequate number to expeditiously prosecute the work. All employees must have sufficient maturity, skill and experience to perform properly the work assigned to them. Employees executing appraisal or other skilled work shall not be less than 21 years of age and shall have sufficient education, training, and experience in such work to perform it properly and satisfactorily in the manner prescribed in these specifications. Any employees, performing appraisals, must not have less than two (2) years of active, practical and extensive experience appraising commercial, industrial, and residential and farm properties. Ten days prior to bringing any employee to the job, the contractor must furnish in detail to the Tax Administrator with respect to each employee who will execute appraisals, an affidavit specifying his qualifications and experience and prior work locations. The contractor must employ a sufficient number of qualified and experienced employees at all times to perform the work expeditiously on a timely and controlled basis. Complete instruction and direction of all members of the personnel connected with the revaluation shall be supplied by the contractor. The training of data entry personnel will be conducted by staff members of the County assessment office, and the County assessment staff will periodically review data entry personnel’s work to ensure correctness of data being entered into the CAMA program.

The contractor shall furnish the County a list of all persons to be employed for acceptance or rejection by the County. The County may require the contractor to remove from the work any person the County considers to be incompetent or negligent in the performance of their duties, or who is guilty of misconduct and such person shall not be employed again to work without the County’s written consent. No employee of the contractor is to be deemed an employee or agent of the County and is not entitled to any benefits from the County not specifically stated herein. The project supervisor or responsible head of the field organization of the contractor in charge of this appraisal program and other key personnel shall not be transferred away from the County and the work to be performed under this contract, or shifted, or replaced, without written consent of the county having been first obtained. The County has the right to approve or reject all personnel working on the project.

The contractor shall train any personnel designated by POLK County in the appraisal techniques and procedures utilized by the contractor in the appraisal of all real property in POLK County. Instruction shall also be given in the use of the appraisal manual for all types of real property, so the County’s appraisal staff may be prepared to do appraisal work for the County in the future.

All vehicles used by the personnel of the contractor in performance of duties herein described shall be clearly identifiable by signs located on each side of said vehicle, which signs shall meet the following requirements: 1. Letters shall be at least 2” tall 2. Contain words “County Reappraisal” 3. Variations only as directed or approved by the County Tax Administrator.

All field personnel shall display a personal identification badge that shall include name, photograph, and company name and employees title. h. Office Arrangements Office space necessary for the performance of the clerical work will be provided by the County. All necessary tables, chairs and filing cabinets for such office space will be supplied by the County. All machinery, equipment and supplies necessary to complete the work shall be supplied by the Contractor. All computers and printers will be supplied by the County. Local telephone service will be provided by the County. The contractor shall be responsible for all long distance telephone services. 8 i. Use of Records and Maps Subject to schedules and procedures, approved by the County Tax Administrator, all maps, tax records, data and information in the possession of the County Tax Administrator, pertaining to properties covered by these specifications will be made available to the contractor. All information and sketches, if used by the contractor, will be verified in the field and will be the contractor’s responsibility.

Transfer of all data from existing CAMA system to any other data base, including but not limited to name of the present owner, pin, acres, subdivision, lot number, location, description, deed reference, deed date, sales price for the preceding two (2) years if available, old assessed value and sketches will be the responsibility of the contractor. j. Support of Value Upon the delivery of completed appraisal work, notice of the new assessments will be prepared for all real property owners by the contractor, subject to approval by the Tax Administrator. The forms for the assessment notices will be provided by the contractor and they will be mailed at the expense of the County. Informal hearings will be scheduled by appointments and conducted jointly by the contractor and the County appraisal staff in a meeting room furnished by the County. During these informal hearings the contractor shall provide services of a sufficient number of qualified appraisers to assist the assessor in explaining appraisals and the valuation procedure used. The contractor will notify the property owner in writing of the results of the hearing conducted during these informal hearings within (30) days of the completion of all informal hearings.

The project manager or the responsible heads of the field organization of the contractor in charge of the revaluation program in the County shall be present at all official meetings of the Board of Equalization and Review and all informal hearings following the completion of the work until all complaints are heard and disposed of, to assist in the settlement of complaints and to defend the values placed upon the various properties.

It is further agreed that qualified appraisers shall be provided by the contractor to assist the County in the event of appeals from the County Board of Equalization and Review to the Property Tax Commission, or to the Courts. This service shall be provided at no additional cost to the County in the case of complaints as to assessed valuations. k. Termination of Contract The contract may be terminated by the County for the following reasons: 1. Failure of the contractor to start the work on the date specified. 2. Reasonable evidence that the progress being made by the contractor is insufficient to complete the work within the specified time at the sole discretion of the County. 3. Failure on the part of the contractor to comply with any requirement of the contract.

Before the contract may be terminated as set forth in paragraphs 1, 2 and 3 above, the contractor and its surety must be notified in writing by the County of the conditions which make termination of the contract imminent. Ten (10) days after the notice is given, if a satisfactory effort has not been made by the contractor or its surety to correct the conditions, the County may declare the contract terminated, notify the contractor and its surety accordingly, and pursue any rights and remedy under this contract and bond(s).

9 In the event this contract is terminated, the county reserves the right to take possession of all completed work, in whatever medium it exists, included but not limited to work in progress, material, or any other part of work, and account for said work and material and to use the same to complete the project in accordance with the contract specifications and provisions and conditions of the bond(s) attached to the contract. When work is thus finally completed, the total cost of the same will be computed. If the total cost is more than the contract price, the difference shall be paid by the contractor or his surety or sureties. l. Dispute Resolution Any and all disputes not resolved otherwise will be resolved through litigation rather than arbitration. Any and all litigation shall be conducted in POLK County, NC. m. Subcontracting and Assigning Contract The contractor shall not assign, transfer, or subcontract any portion of this contract or any interest therein without first receiving written approval from the County and from the sureties on the bond(s) of the contractor and the contractor’s liability carrier. n. Liquidated Damages In the event that the appraisal and revaluation of all property herein required to be appraised and revalued is not completed by the date set forth in the contract, and unless the County Tax Administrator approves an extension of the time, the sum of $ 500 per day (Saturdays, Sundays and Holidays excluded) shall be assessed against the contractor for the first month and $ 1,000 per day thereafter, which said amounts shall be considered as liquidated damages for such delay in performance and shall be deducted from the final payment of the compensation herein provided.

IV. Work to be Performed

A. Tax Assessor’s Manual and Cost Schedules The contractor shall prepare and furnish the County (after the contract approval of the same by the Board of Commissioners) six (6) typed or printed copies of an assessment manual, cost schedules and land value schedules prior to finalizing any appraisals as set forth below:

1. Contents of Manual The Tax Assessor’s manual shall contain information and guidelines which will be sufficient for the appraisal of all real property. The manual will include, but not be limited to the following: a. Table of Contents b. Classification of Property c. Land Valuation Schedule d. Depth adjustment chart for Land e. Less than an acre adjustment factors for Land f. Residential building base rate tables g. Residential building segments, labels and value schedules h. Residential building extra features labels and value schedule i. Residential building grade factor chart j. Residential building grade narrative description k. Residential building elements computer codes l. New construction completion estimation chart m. Neighborhood adjustment chart n. Basic replacement cost for commercial buildings o. Basic replacement cost for commercial extras such as paving, lighting, fencing & irrigation systems. p. Basic replacement costs for farm and other outbuildings

10 q. Depreciation guide for residential and commercial buildings r. Guidelines for determination of manufactured home category (real or personal property). s. Any information concerning market rents, CAP rates, construction costs and labor rates which were obtained. t. Any other information, facts or factors which may be used in determining the true value in money of the real property to be appraised.

2. Preparation of Tax Assessor’s Manual and Cost Schedules This manual shall contain a breakdown in detail of all data used in making up all schedules, costs, etc. including prevailing wage rates and prevailing material cost, the source of this information, and analyzed cost for residential, farm, commercial and industrial buildings construction. A careful investigation of local construction costs shall be made and the manual must be tested for both new and existing construction. Price of materials in various quantities and qualities shall be obtained from local material dealers. Current wage scales for various types of building construction shall be carefully investigated and labor efficiency for the several trades on the various classes of work shall be considered in the determining of building schedules.

From the foregoing information, unit construction costs shall be analyzed for all materials and fixed equipment entering into the construction of all types of buildings, which construction cost shall include architect’s and engineer’s fees. Together with contractor’s overhead and profit and shall reflect the average cost of materials in place for houses of cheap construction, house of ordinary construction and houses of high quality construction. Separate unit costs shall be developed in the same manner for all types of commercial, industrial, farm and special purpose buildings. After such costs are developed, they shall be applied to new construction of known cost to prove their accuracy. When such accuracy is determined or proved in a manner acceptable to the County, schedules shall be prepared for any and all variations from base, including the values of the following items: All types of wall construction, roofs, floors, heating, plumbing, fireplaces and stacks, air conditioning, interior finish, tiling, finished attics, multiple family houses, basements, recreation rooms, finished basements, insulation, lighting systems, etc.

The table shall show additions or deductions from base prices shown in each residential, commercial, industrial, farm and special purpose building schedule. Every change from base specification shall be recorded in pricing schedule and on the property record card. Prices for various sizes and types of garages, fireplaces, sun porches, carports, patios, outbuildings, elevators or any such improvement which does not fall within the base rate table shall be contained in the manual.

All the foregoing data shall be set up in an easily comprehensible manner enabling the County to show the taxpayer how property valuations were determined. All data used to make up the manual and to substantiate sales must be turned over to the POLK County Assessor.

The design of the manual must be approved by the POLK County Tax Administrator and personnel designated by the Tax Administrator are to be trained in the use of the manual during the revaluation period.

B. Property Appraisals 1. Commercial Property (a) Commercial Buildings

All commercial buildings shall be reviewed and sketched to insure accuracy of information shown on the field record card. A careful inspection of each building shall be made and all 11 construction and fixed building improvements noted on the property record card. Master reproduction cost schedules which have been checked against actual recent costs of newly erected construction in the County or in comparable communities, when required and developed for the manual, will be applied to the various elements of building construction.

The basic cost data shall be applied to existing construction for the determination of accurate and consistent replacement values less any physical, functional or economic depreciation. In addition income and expense data, and market data will be used where applicable to determine value by use of those approaches.

All apartment houses of four or more dwelling units and other dwellings designed or redesigned for such occupancy, all groups of apartment buildings are to be listed as apartment properties and appraised by the contractor in the manner of commercial properties with a sketch and appraisal card for each building in the apartment complex. Also will appear the number of units in each building and their breakdowns as to bedroom and bath count with the rents for each type. A report for apartments will follow listing all apartments and their variable breakdowns. The listing will be used as an analytical report. The appraisal of apartment houses is to be complete with analysis of income in the same manner as in the appraisal of other commercial property.

(b) Commercial and Apartment Land

The contractor shall make a study of both the central business districts and outlying business areas for all towns in POLK County. Upon completion of this study, an outline block map is to be prepared by the contractor listing front foot and square foot land values for each side of each block of the specified business districts. Depth tables and corner and alley influence tables shall be developed by the contractor for the pricing of commercial lots. These tables shall be in accordance with current sound practices land valuation.

Upon determination of such final front foot and square foot values for commercial properties by the contractor, the value of each individual parcel of land shall be computed on a property record card.

If any or part of such property shall be within the boundaries of any incorporated town, such fact shall be specified and the part within shall be defined, listed and appraised accordingly.

(c) Review of Commercial Properties

Upon completion of the appraisal of individual parcels of commercial land, each commercial property shall be reviewed by experienced commercial appraisers of the contractor for the careful consideration of the economic factors which enter into its valuation, such as location, design, surplus capacity or inadequacy, obsolescence and rent possibilities, both present and expected.

2. Industrial Properties

A complete appraisal of each industrial plant in the County shall be prepared by the contractor based on the careful inspection of each such property.

(a) Industrial Buildings Drawings of each building shall be drawn to scale, with buildings numbered and shown in their property location and sizes. Buildings shall be described by their component parts, with replacement or reproduction values being determined by a unit cost appraisal less any depreciation. The market and income approaches to value shall be utilized where applicable.

12 (b) Industrial Land Valuations The contractor shall make a study of each individual property and the various industrial sections of the County. Upon completion of the study, the contractor’s appraisers are to prepare an outline block map (or sketch) indicating front foot, acreage, or square foot land values for each parcel of industrial property. Upon the determination of final land values for industrial property the contractor shall compute the value of each industrial parcel of industrial land.

3. Urban and Rural Property (a) Every lot, parcel, tract, building, structure and improvement shall be visited and observed to insure accuracy of information on the field card. A walk around review shall be carried out and in the event of changes, additions, suspected errors in the original data or other discrepancies, such changes, additions, and discrepancies shall be measured, listed, and sketched, and the card flagged for appraisal by a competent appraiser of the contractor’s staff.

The type of construction shall be recorded by component parts, such as foundation type, exterior walls, roofing structure, roofing cover, interior walls, interior flooring, heating and fuel type, air conditioning, bedrooms, baths, story height, architectural style, fireplaces, quality of construction, actual year built, effective year built, economic obsolescence, functional obsolescence, whether the property is under construction, abnormal or physical depreciation, physical damage for commercials and condominiums. It must also list any added features for air conditioning and heating, number of floors the building contains, and number of units or percent of ownership, structural frame, the ceiling and wall quality or insulation, average number of rooms per floor, percent of common wall, non standard wall height and percentage of common area ownership for each unit. Field record cards shall be returned by the field staff to the office where they shall be priced, checked and completed from the schedules previously prepared and made ready for final inspection and review. Each review of property shall be made by a competent appraiser for the careful consideration of location, design, surplus capacity, obsolescence, physical depreciation, etc. (b) Suburban and farm homes shall be visited and inspected in the manner as other residential buildings. All other farm buildings and structures should be reviewed for correct number of outbuildings on parcel and new measurements taken if a change in size is suspected. All structures shall be listed on the field property card according to the use, type of construction, size, age, condition and amount of depreciation and shall be appraised at their true value.

(c) Upon inspection of real property that has a mobile home located on the premises, the appraisal card will be marked with a code identifier when the mobile home is listed as personal property. If it is listed as real property it will be sketched and valued.

4. Valuation of Land

The contractor shall make careful investigation of the true value of all classes of land, giving due consideration to all factors enumerated in these specifications. Sales data covering market sales shall be secured and this data will be analyzed, checked and recorded on the appraisal cards. Owners, realtors, bankers and other shall be asked to provide all information relative to sales of property within the county.

A pricing schedule applicable to small acreage tracts, especially those of twenty (20) acres or less, which have potential other than farm usage, shall be prepared by the contractor. Size of tracts have a direct bearing on the value. The schedule must be flexible enough to appraise at market value all acreage tracts regardless of size.

13 If all or part of such property shall be within the boundaries of any incorporated town or city, such fact shall be specified and the part within such town or city shall be defined and listed accordingly based on data supplied by the County.

Buildings, structures and other improvements shall be appraised and their true value recorded separately from the land on which they are located.

The contractor will furnish “land value maps” which will indicate appraised values per parcel or per block. These values will be stated in terms of the units in which the land is normally sold. In addition current sales data will be recorded on these maps, sales data will be indicated from revenue stamps, noted on the property record cards and confirmed in sufficient number, to insure compliance with these specifications.

C. Digital Photographs

Digital photographs will be taken of all existing dwelling, commercial and industrial buildings that show changes from the last digital photograph taken. (Front of building only). One digital photograph for each dwelling and one for each primary commercial or industrial structure will be taken. The contractor will provide the necessary computer hardware and software and will maintain sufficient records so that these photographs can be attached to the corresponding property record by the County Tax Office.

D. Property Record Cards

Suitable property record cards shall be designed to meet the requirements of the County and will be submitted to the POLK County Tax Administrator for approval before being used. They shall include all items of information in connection with the construction, age, condition, depreciation, outline sketch and pricing data of each building together with owner’s name, address, road name and number and house numbers, available lot, block, map number, etc. and shall be used to record all pertinent information relative to the land, buildings and total valuation of land, buildings, the record cards will be furnished at the expense of the contractor.

Hard copy property record cards will be printed as directed by the County Tax Administrator for all parcels after all appraisals are final. The County will provide the forms for these and the contractor will assist with the printing and filing.

All cards shall be separated and filed according to a method to be determined by the Tax Administrator.

The contractor shall provide at its own expense all miscellaneous office supplies, cards, and field records needed in performing the work and all reports and manuals to be delivered to the County as set forth in the contract.

The contractor shall, upon completion and acceptance of the work, deliver to the POLK County Tax Administrator all field notes, cards and work sheets on all kinds and classes of properties valued in the appraisal, identified as to property and owner, and also to the County Tax Administrator for future reference, the detailed data developed and used to determine the unit values and which serve to substantiate these values.

E. Public Relations

At all times during the contract and the work on the revaluation, the contractor and his employees shall endeavor to promote friendly relations with property owners and the general public. Press releases or other publicity proposed by the contractor shall be presented to the 14 Tax Administrator and receive clearance before being released. The contractor shall, at the request of the Tax Administrator, make available qualified speakers to acquaint groups of people with any phase of the program which is primarily the concern of the contractor.

The contractor shall not release any proposed values, appraisals, data or any other information either acquired or in the possession of the contractor to any person, firm or association unless approved in advance by the County Tax Assessor.

V. Compensation and Terms

A. Progress Reports and Payments On the first day of each month, the contractor shall make a progress report showing work done or progress made under the negotiated schedule to the POLK County Tax Administrator. The report shall show the percent of completion of each phase of the work performed under the terms of the negotiated work schedule. On the basis of each progress report, the County shall make progress payments as follows:

On or about the tenth day of each month the County will pay the contractor 90% of the value of work, based on the contract price, of the work performed by the contract up to the last day of the previous month as estimated by the County from progress reports and monthly invoices submitted by the contractor, less the aggregate of previous payments. The estimates shall be approximate only, and payments shall be subject to correction in the estimate rendered following the discovery of an error in any previous estimate.

Should any defective work be discovered, or should a reasonable doubt arise as to the integrity of any part of the work completed prior to the final acceptance and payment, it will be deducted from the first estimate rendered after discovery, an amount equal in work will not be included in a subsequent estimate until the defects have been remedied or the cause of doubt removed.

B. Acceptance and Final Payment When work has been completed and delivered to the County by the contractor, the County shall within (60) days thereafter examine and review the same to determine whether the work has been completed in strict accordance with the specifications, conditions and stipulations contained in the contract.

If upon such examination and review, the County finds that the work has been completed and delivered in accordance with specifications then the work shall be accepted and the remaining balance on said contract price shall become due and payable as follows:

1. The difference between the amount already paid and 90% of the total contract price shall be paid to the contractor at this point. 2. One half of the unpaid balance (50%) of the contract price shall be paid to the contractor upon the completion of the farm use appraisals. 3. One fourth of the unpaid balance (25%) shall be paid to the contractor at the conclusion of all appeals to the Board of Equalization and Review. 4. The remaining one fourth of the unpaid balance (25%) shall be paid to the contractor at the conclusion of any appeals to the property tax commission and to the courts.

15 VI. Data Processing

A. CAMA Software POLK County is currently using Cox and Company, OneTax CAMA Software. B. Data Entry The County will provide necessary training to all data entry personnel hired by the Contractor and will review work of the data entry staff as necessary. C. The County will be responsible for providing the means for database protection and backup. The contractor will not be held liable for any delays in the completion of the work required by this agreement which are due to County provided computer hardware or software problems.