2020.01.13 Council Agenda Item 5

At the July 22, 2019 Town Council Meeting, the Town Manager and Assessor delivered a presentation to consider a townwide property revaluation. 

The Town Council agreed to proceed with issuing an RFP to conduct a townwide revaluation. That RFP was issued on August 5 and three proposals were received on October 3. A staff team consisting of the Finance Director, Town Manager, Assessor, and Assistant Assessor interviewed all three companies that submitted a proposal, on October 30. They concluded that Vision Government Solutions should be awarded the contract. The cost of a full revaluation project using Vision Government Solutions would cost $239,000. 

The staff review team also discussed what they heard in the interviews about market conditions and that conditions could change with a presidential election and possible changes in the economy. The staff review team agreed that it is impossible to accurately predict changes in the market but it is possible, based on input from revaluation proposal consultants, to conduct an initial market analysis that would provide advanced information about the valuation of different real estate segments in Falmouth. The Council asked that staff find out if our preferred consultant could perform an initial market analysis and if the costs could be off-set with a subsequent revaluation project. Vision Government Solutions responded to the Town Council's request with the attached letter (see link below). The analysis would cost $29,500.

At the December 9, 2019 Town Council Meeting, the Council discussed whether to contract with Vision to conduct the statistical market analysis ahead of the revaluation. The Council also discussed whether to move forward with the proposed 2020-2021 timeline for the revaluation or to defer the project until 2022. No decisions were made at the meeting and the Council agreed more discussion and public input is necessary prior to making any decisions to move forward with a revaluation and/or a separate market analysis.The Town Council indicated that public comment would be part of the decision to fund a project on January 13, 2020 and a separate Town Council agenda item in January or February to discuss a general overview of a revaluation and any concerns associated with a revaluation.

The Town and Vision Government Solutions discussed an element of the market analysis scope of work at noon on January 9. The expanded explanation in the scope of work described how the Town would be responsible for submitting income and expense data relative to commercial properties. There was an assumption that the Town has been regularly collecting this data however such data has not been regularly collected and is not needed to maintain current assessments. It is likely that collecting this data would take too long to complete the market analysis in time for the Town Council to make a decision to move forward on a full property revaluation by early March. We could continue with the market analysis but it would be less reliable in predicting the outcome of a revaluation. At this time, staff is recommending we do not proceed with a market analysis if the Council chooses to proceed with a revaluation with a 2021 completion.

At this meeting, the Council will continue the discussion, with public input, and will consider a supplemental appropriation to either fund (a.) the statistical market analysis and the revaluation [with an option to not consider the revaluation after review of the statistical market analysis] or (b.) only the revaluation. 

The following documents are attached.

• Request for Proposal (RFP) August 5, 2019
• Vision Government Solutions response to the RFP October 3, 2019
• Vision Government Solutions response to the Council request for a scope of work and cost to perform a statistical market analysis November 22, 2019.
• Vision Government Solutions submittal of additional explanation for scope of work to perform a statistical market analysis.
• Order for a supplemental appropriation which identifies two options to either fund (a.) the statistical market analysis and the revaluation [with an option to not consider the revaluation after review of the statistical market analysis] or (b.) only the revaluation.