AGENDA STAFF REPORT

Agenda Item AGENDA STAFF REPORT ASR Control 19-000604
MEETING DATE:	06/25/19
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	All Districts
SUBMITTING Agency/Department:	Auditor-Controller (Approved)
Department contact person(s):	Eric Woolery (714) 834-2457
	Phil Daigneau (714) 834-6277

Subject: Approve Assignment and Consent Agreement with Enterprise Services LLC

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

3 Votes Board Majority

Budgeted: N/A

Current Year Cost: N/A

Annual Cost: N/A

Staffing Impact:

# of Positions:

Sole Source: N/A

Current Fiscal Year Revenue: N/A

Funding Source: N/A	County Audit in last 3 years: No

Prior Board Action: 9/27/2017 #19

RECOMMENDED ACTION(S):

Authorize the County Procurement Officer or authorized Deputy to issue “Assignment and Consent Agreement” to Contract with Enterprise Services LLC changing the vendor name to Perspecta State and Local, Inc.

Authorize the Auditor-Controller to increase Fiscal Year 2018-19 appropriation and encumbrance amount by $3,177,570 in Budget Control 015 offset by the decrease of General Fund Balance Assigned (BSA 9740 DBSA 9812), cancel the prior year encumbrance in the same amount and process all associated accounting entries.

SUMMARY:

The Auditor-Controller’s office requests approval of “Assignment and Consent Agreement” to the contract with Enterprise Services LLC for the information services necessary for the Modernization of the Legacy Property Tax System, changing the vendor name to Perspecta State and Local, Inc.

BACKGROUND INFORMATION:

The Auditor-Controller, Treasurer-Tax Collector and Clerk of the Board collaboratively use the County’s property tax system, Assessment Tax System (ATS), to administer property taxes for the County of Orange. ATS is critical to the operation of the County and its taxing agencies, as it is used to process over $6 billion annually. These property taxes and special assessments are apportioned to the County, cities, school districts, community colleges, redevelopment trust funds and special districts.

ATS is a large and complex system with 2,670 programs and over 900,000 lines of source code, managing more than 930,000 Secured and Unsecured properties, resulting in millions of transactions annually. This system was built over the last 30 years by the County, utilizing the services of ARK Technologies and embedded managed service staff (currently SAIC previously ACS). It was initially implemented in 1987 and runs on the County’s mainframe platform using a programming language, CA-IDEAL, that is now obsolete and unsupported.

The County has been working to transition systems off the mainframe for more than a decade. ATS is the last major system remaining on this platform and moving it off will save the County an estimated $2.1 million per year.

To protect the County’s critical property tax revenue stream and to save taxpayer money, the Board of Supervisors (Board) approved a re-platforming effort to the existing ATS system by translating it to Java, a modern programming language, which will operate on an open-architecture platform. The transformation will preserve system functionality, mitigate the risk of administering a vital process on an obsolete system, and allow the County to retire its mainframe.

The transformation is the development of a ‘Like for Like‘ solution. All current functionality, including the online application, interfaces with other applications (Assessor - ATS2, CAPS+) and batch reporting will operate the same as it works currently, just in the newer technology. On September 26, 2017, the Board approved a contract with Enterprise Services LLC to provide the necessary knowledge, tools, and experience to supply a proven, quality-based solution to the transformation of the current ATS system.

Contract #MA-003-18010160, with Enterprise Services LLC, provides the information services necessary for the modernization of the County’s legacy property tax system. The purchasing agent approved the term of the contract which started on October 2, 2017 and continues until October 8, 2020. The contract is a fixed price contract with total possible compensation of $6,150,816.51.

Enterprise Services LLC and Perspecta State and Local, Inc. are wholly owned subsidiaries of Perspecta, Inc. (Perspecta). Perspecta is realigning its business operations so that Enterprise Services LLC is responsible for its federal service line; while, Perspecta State and Local, Inc. is responsible for local-level government services.

With Perspecta’s restructuring effort, Enterprises Services LLC subsequently restructured its state and local service lines under its sister corporation Perspecta State and Local, Inc., which is assuming the rights and obligations of Enterprise Services LLC under the original contract agreement with the County of Orange and is agreeing to all terms and conditions of said agreement. The proposed Assignment and Consent Agreement changes the vendor’s name from Enterprise Services LLC to Perspecta State and Local, Inc. The contract amount remains unchanged and the open encumbrance balance of $3,177,569.49 will be cancelled. A new encumbering document will be created in Budget Control 015 under the new vendor name: Perspecta State and Local, Inc.

FINANCIAL IMPACT:

This Agenda Staff Report does not have any financial impact to the Budget Control 015 Net County Cost. This Agenda Staff Report will not have any impact on the overall General Fund balance in FY 2018-19. Cancelling the $3,177,569.49 prior year encumbrance for Enterprise Services LLC will result in an increase in fund balance (BSA 9740 DBSA 9812) at the year-end and the Recommended Action #2 for new Appropriations and encumbrances of $3,177,569.49 for Perspecta State and Local Inc. will result in a decrease in fund balance (BSA 9740 DBSA 9812).

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A - ES MA-003-18010160
Attachment B - ES Name Change Notification
Attachment C - Assignment and Consent Agreement