Agenda Item AGENDA STAFF REPORT ASR
Control 23-001090 |
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MEETING
DATE: |
01/23/24 |
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legal entity taking action: |
Board
of Supervisors |
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board of supervisors district(s): |
All
Districts |
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SUBMITTING Agency/Department: |
Auditor-Controller (Approved) |
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Department contact person(s): |
Andrew
Hamilton (714) 834-2457 |
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Laurence
McCabe (714) 796-0310 |
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Subject: Approve Contract with ARK
Technologies for Property Tax System Technical Support
ceo CONCUR |
County Counsel Review |
Clerk of the Board |
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Concur |
Approved
Agreement to Form |
Discussion |
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3
Votes Board Majority |
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Budgeted: Yes |
Current Year
Cost: $320,988 |
Annual Cost: FY 2024-25 $770,370 |
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Staffing Impact: |
No |
# of Positions: |
Sole Source: Yes |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: N/A |
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RECOMMENDED
ACTION(S):
Authorize the County Procurement
Officer or Deputized designee to execute contract with ARK Technologies for
Property Tax System Technical Support, effective February 1, 2024, through June
30, 2025, for a total amount not to exceed amount of $1,091,358.
SUMMARY:
Approval of contract with ARK
Technologies will assist the County in implementing a planned disaster recovery
system for the Property Tax System, a planned upgrade of aging hardware and
software, and providing critical maintenance and support.
BACKGROUND
INFORMATION:
The Auditor-Controller, Treasurer-Tax
Collector, and Clerk of the Board collaboratively use the County’s Property Tax
System to administer property taxes for the County of Orange. This system is critical to the operation of
the County and its taxing agencies, as it is used to levy over $8 billion
annually (approximately $8.7 billion FY 2022-23). These property taxes and special assessments
are apportioned to the County, cities, school districts, community colleges,
redevelopment trust funds, and special districts.
Due to the unique nature of California
property tax law and the lack of a viable commercial off-the-shelf system, the
County found it necessary to build and maintain its legacy Assessment Tax
System (ATS) over a 35-year period, utilizing the services of ARK
Technologies. The County undertook a
five-year project to perform a major upgrade of ATS by re-architecting it from
the IBM mainframe to an open system platform, referred to as the Property Tax
System (PTS). ARK Technologies provided technical and operational expertise to
the County on this effort. The upgraded
PTS went live on September 19, 2022.
Since going live, the County was named a 2023 Achievement Award Winner
by the National Association of Counties (NACo) for this project. The NACo Achievement Awards recognize
innovative County government programs from across the United States.
The County must continue to advance this
critical system and complete two planned projects related to PTS over the next
two years. First, PTS does not have a disaster recovery site. This state must
be addressed on this critical tax system. The Auditor-Controller is in the
process of implementing a new disaster recovery system in the current FY
2023-24 and will complete FY 2024-25. Second, the PTS production system’s
hardware and software platform is reaching a point where it needs to be
replaced. After using this platform for five years in the development of the
upgrade system and then two years in its production operations, the platform
must be refreshed. The platform replacement is scheduled for FY 2024-25. ARK
Technologies’ services will be critical on both efforts. In addition, ARK
Technologies will also provide continued technical support.
This contract is a sole source agreement.
ARK Technologies’ long history of assisting the County in building, supporting,
and upgrading PTS has given them a broad technical and functional knowledge of
the County’s property tax processes and systems. Through the years, ARK has acquired intimate
knowledge of the tax system programs and the County’s complex property tax
processes and procedures. Their knowledge and expertise will be crucial for the
successful completion of the upcoming Property Tax System projects.
This agreement (Attachment A) includes the
County's General Terms and Conditions including Article K, Termination - In
addition to any other remedies or rights it may have by law, County has the
right to immediately terminate this Contract without penalty for cause or after
30 days’ written notice without cause, unless otherwise specified. Cause shall be defined as any material breach
of contract, any misrepresentation or fraud on the part of the Contractor. Exercise by County of its right to terminate
the Contract shall relieve County of all further obligation. This Contract was brought to the Board within
30 days of expiration in order to allow staff to negotiate the Scope of Work of
the Contract with the Contractor.
FINANCIAL
IMPACT:
Appropriations for this contract
are included in the FY 2023-24 Budget for Budget Control 015, Property Tax
System Centralized Support, and will be included in the budgeting process for
future years. A breakdown of estimated costs is provided in Attachment B,
Contract Summary Form.
STAFFING
IMPACT:
N/A
ATTACHMENT(S):
Attachment
A - Contract MA-003-24010749
Attachment B - Contract Summary Form