Fiscal Note
The proposed resolution authorizes a 10-year service contract with Government Software Assurance Corporation (GSA Corp) for a cloud-hosted assessment valuation system. GSA Corp was selected through a competitive RFP process. Costs include $538,000 for professional services for implementation, a one-time cost of $245,000 for software licenses, and annual fees for licensing, support, maintenance, and SaaS hosting fees. Funding for implementation and Year 1 costs is included in the Information Technology 2022 Capital Budget in the Property Assessment System project (#10043). Funding for annual fees will be included in future operating budgets, subject to Common Council approval. No additional City appropriation is required for the proposed resolution.
Title
Authorizing the Mayor and City Clerk to enter into a competitively-selected, 10-year service contract with Government Software Assurance Corporation (GSA Corp) for a Cloud Hosted Assessment Valuation System to replace the City’s legacy system and professional services to implement the new solution.
Body
WHEREAS, the City Assessor’s Office property data is the most important data in the City with statutory requirements for how it is stored and used. Accuracy and accessibility of the data is paramount for funding the levy through property taxes, which is built upon this data. Further, it is widely accessed in the City, and used by almost all agencies with impact to all City of Madison residents. One goal of this acquisition is to allow frequent interfaces with staff responsible for assessing property. Another goal is to provide outgoing information on processes, rules, and applications to other agencies seamlessly. The more accessible the data and workflow, the better communication, education, and information provided to residents; and
WHEREAS, any property development within the City relies on the City’s property data. Without ease of access and the ability for dynamic applications, such as modeling, the use of the data for positive planning outcomes is limited. With the acquisition, efficient and effective forecasting is possible, and queries, reporting, and more will be available for planning and development purposes; and
WHEREAS, the State of Wisconsin historically has a limited number of vendors providing these systems and services. Due to this fact and the unique needs of our legacy system, the City Assessor’s Office hired a consultant, Ruel Williamson, to assist with identifying and understanding our needs for a valuation system from a legacy system. Mr. Williamson is one of the few consultants to operate in this field worldwide. Past, present, and future state were discussed and clarified with a specific lens of what exists today. This process began in 2019 and, after a COVID pause, resumed in 2021; and
WHEREAS, the work undergone to establish the needs of the City was done in partnership with the consultant, Mr. Williamson, to craft a dynamic RFP for the system. In addition, the City underwent an informal RFI process to allow vendors to showcase their products based on the needs identified in the evaluation process. That process allowed the City to further refine goals and needs. It also allowed the City to promote Wisconsin as a new market for vendors. This occurred in 2021 with a methodical pace to ensure that adequate time was spent on research and development of our requirements, needs, and valuation software landscape; and
WHEREAS, the Purchasing Division, Assessor’s Office and Information Technology Department through a competitive process solicited proposals for RFP# 10079-0-2021-BP for an Assessment Valuation System, received written proposals; and
WHEREAS, an evaluation team consisting of Purchasing, Assessor’s Office and Information Technology Department staff conducted a detailed evaluation, scored and ranked each of the proposals using criteria including cost, skill, past performance, and references: and
WHEREAS, GSA Corps received the highest score for technical and system requirements and lowest cost, fitting within the City’s mission and values, and will provide us with the following functionalities to support the statutorily required duties and functions of the Assessor’s Office:
1. In a growing multi-billion dollar tax base, GSA provides the ability to review and analyze income and expense information for commercial properties, both market and actual, in real time. Thus, allowing swifter and more robust valuation outcomes.
2. Ability to utilize regression analysis in the sales comparison approach for residential and other classes of property
3. The ability to list and value multiple land uses on a single parcel, as is statutorily required
4. The ability to properly list, code, and report on all exempt properties in the City, as is statutorily required
5. Greater efficiencies in assigning work, including automatic workflows, allowing staff to focus on mass appraisal and valuation work, rather than data entry.
6. The ability to accurately list and record property types in compliance with the Wisconsin Property Assessment Manual
7. The ability to provide more transparent processes, data, and interaction with the residents of the City of Madison
8. An online portal which allows for e-filing of objections, exemptions, and other required filings, reports or requests from property owners; and
WHEREAS, to complete the professional services for implementation, at least a two year contract is required, and GSA Corps proposed professional services not to exceed $538,000;
WHEREAS, GSA Corps proposed a one-time cost of $245,000 for software licenses and yearly support, maintenance, and SaaS/hosting fees to not exceed the yearly costs identified below for ten (10) years:
Year 1: $170,000
Year 2: $180,200
Year 3: $191,012
Year 4: $202,472
Year 5: $214,621
Year 6: $227,498
Year 7: $241,147
Year 8: $255,617
Year 9: $270,954
Year 10: $287,211
WHEREAS, under MGO 4.26(3)(e) service contracts of more than 5 years in duration and/or more than one year that averages more than $100,000 per year in cost require approval of the Common Council and signature by the Mayor and City Clerk;
NOW, THEREFORE, BE IT RESOLVED, that the Mayor and City Clerk are authorized to sign a contract on behalf of the City for the professional services to implement an Assessment Valuation System, software licenses and yearly software maintenance, support and SaaS/hosting fees for an initial term of ten (10) years; and
BE IT FINALLY RESOLVED, that the Finance Director or their designee are authorized to execute contract(s) for the software support, maintenance, SaaS/hosting services with Government Software Assurance Corporation on a recurring basis for the useful life of the software, which may include negotiated increases for future terms.