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Muskegon City Commission
Commission Meeting Date: June 22, 2021 Title: Assessing Contract - Muskegon County
Submitted By: Frank Peterson Department: City Manager
Brief Summary: Approval of the Assessing Services Contract with Muskegon County.
Detailed Summary: Muskegon County has been providing assessing services to the city for a
number of years . The current contract expired last month. The new contract does carry a cost
increase, but the costs are in line with what other communities are spending on this service . The
budget approved earlier this month estimated the costs for this se rvice at $353,308. The new cost
of $413,348 represents a $60,040 increase (17%).
Amount Requested: $413,348 Amount Budgeted: $353,308
Fund(s) or Account(s) : N/A Fund(s) or Account(s) : N/A
Recommended Motion: Amend FY 2021-22 GL Number 101-30209-5300 to $413,348 to cover the
updated assessing costs, and approve the Assessing Services Agreement with Muskegon County and
authorize the Mayor and City Clerk to sign .
Check if the following Departments need to approve the item first:
Police Dept. D Fire Dept.
□ IT Dept.
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For City Clerk Use Only:
Commission Action:
AGREEMENT BETWEEN THE CITY OF MUSKEGON
AND
MUSKEGON COUNTY BOARD OF COMMISSIONERS
THIS AGREEMENT, entered into as of the 1st day of July 2021, between the City of Muskegon,
a municipal corporation, by its City Commission, hereinafter referred to as "The Municipality",
and the County of Muskegon, by its Board of Commissioners, hereinafter referred to as "The
County", is as follows:
PURPOSE
The purpose of this Agreement is to provide for a property assessment administration program to
be administered by the County Equalization Director, or designated representative, which will
list, appraise, and maintain a complete set of records for all real and personal prope1ty, subject to
ad valorem taxation, specific taxes, and in-lieu-of tax agreements within the Corporate limits of
The Municipality pursuant to Public Act No. 160 of 1972.
TERM AND TERMINATION
This agreement shall commence July 1, 2021, and terminate June 30, 2026, provided that either
paity may terminate the Agreement on June 30 of each year upon ninety (90) days prior written
notice. The notice shall be sent by certified mail to the County Equalization Director if
terminated by The Municipality. The notice shall be sent by certified mail to the City Manager if
terminated by the County.
I. The County agrees to perform the following services and provide the materials set forth
herein:
A. Scope of Service - To classify and appraise, according to the constitution and laws
of the State of Michigan, each parcel of real property which lies within the confines
of The Municipality, and to process all assessable personal property that is in such
Mm1icipality, and use the methods prescribed by the Michigan State Tax
Commission. The Equalization Department will provide an assessment roll that will
equal the tentative State Equalized Values for each classification of property. The
final factor will be determined by the action of The Municipality's Board of Review
and the process of state equalization as determined by the State Tax Commission.
B. Onalifiecl Staff - All County employees engaged in the pe1fonnance of this
Agreement shall be professional in manner and appearance and be trained in
property appraisal techniques. The assessor shall be certified by the State Tax
Commission, as required for The Municipality's size and State Equalized Value.
C. Equipment and Supplies - The County will provide all equipment and supplies
needed for the routine performance of its duties without additional expenses, except
as othe1wise set forth herein.
D. Maps and Records - The Municipality shall provide current land use maps, zoning
maps, street/centerline maps, plats, topographical maps, sewer and water maps, and
shall make available any records or data which may be of use in making the
appraisal, without cost to the County. The County has implemented a GIS system in
which mapping data is maintained. The GIS system is addressed in sub-point "M"
of this agreement.
E. Appraisal Manuals/Schedules - The current Michigan State Tax Commission
Assessor's Manuals shall be the cost schedules used in the appraisal of all
properties. All cost schedules shall be indexed to reflect cut'l'ent costs as of Tax
Day.
F. Record Cards - The County will maintain the master file at a specified location.
The master file shall become the property of The Municipality when delivered.
G. Public Relations - Both parties recognize that good public relations are vital to the
success of the assessment administration program. During the term of this
Agreement, County employees shall endeavor to promote understanding and
amicable relations with all members of the public. County staff will be assigned by
the Equalization Director.
H. Property Owne1· Notification and Official Statements - It shall be the
responsibility of the County to notify all property owners annually of assessed and
taxable values, as provided by law, whether values increase or decrease, as well as
distribute personal property statements and other official forms.
I. Assessment Roll - The County shall prepare the assessment roll and certify the
same for The Municipality in a timely manner.
J. Board of Review - County staff will advise and assist The Municipality's Board of
Review in preparing for, conducting, and implementing any changes resulting from
the required meetings of the Board.
K. Appeals - The County Equalization Director, or designated representative, shall
represent The Municipality in all property assessment appeals and in proceedings
before the Tax Tribunal concerning properties under this Agreement. The
Municipality shall designate and provide the legal services for such appeals or
proceedings; however, costs or expenses which may be incurred by the County in
employing additional counsel, expert appraisers, or performing extraordinary
specific appraisal work in connection with such appeals, proceedings, or other
functions shall be paid by The Municipality provided that the Equalization Director
seeks and obtains approval from The Municipality prior to incurring such costs or
expenses. Additionally, should either party terminate this agreement, the County, or
designated representative, shall represent The Municipality in all property
assessment appeals and in proceedings filed during the existence of this agreement.
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The fee shall be $100.00 per hour for preparation, appearance, and travel after
termination of the agreement.
L. Computerized Appraisals ancl Information Technology - The County will
provide staff, equipment, and the BS&A Assessing software to maintain electronic
property records using a computer assisted mass appraisal system. Assessment
administration, including digital photography and sketching, as well as general
business application software shall be prescribed by the County. All property
information shall adhere to the requirements of the County Wide Area Network and
its specifications. The records will be utilized for annual valuation updates. The
County may request the assistance of designated staff of The Municipality to
determine proper neighborhoods for market value determinations. The County will
ensure that the assessment records reflect the property's true cash value, assessed
valuatio11, and taxable valuation to be utilized for any property tax calculations in
conformance with applicable General Pmperty Tax Law requirements. The
computer assisted mass appraisal system and its attributes shall become the
property of The Municipality upon termination of this agreement.
Additionally, the County and The Municipality shall participate in an electronic
building permit system that will transfer such data to the computer aided assessment
administration system without modification or hesitation. The system and its
attributes shall be determined by the County.
M. Geographical Information Systems - The County and The Municipality may
implement a geographical information system. An independent formal mutual
agreement will govern this function.
N. Special Assessments- Special assessment benefit analysis, roll preparation,
processing, and related reports will be provided by the County when formally
requested. The fee shall be $100.00 per hour.
0. Records Maintenance and Access - The County agrees to maintain records with
the most current information the County has available.
1. All changes in property ownership will be recorded in the assessment records
within 30 days of being filed with the Muskegon County Register of Deeds unless
incomplete property documentation prevents timely recording. In these cases, the
Equalization Department will strive to get complete, accurate ownership
information recorded as quickly as practical.
2. City staff will be afforded full access to assessment records (including
photographs).
P. Pursuant to Public Act 453 of 1976, neither party shall discriminate against an
employee or applicant for employment with respect to hire, tenure, terms,
conditions or privileges of employment, or a matter directly or indirectly related to
employment, because of race, color, religion, national origin, age, sex, weight, or
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marital status, Breach of this covenant may be regarded as a material breach of the
contract.
II. The County will perform all the above services for The Municipality, subject to costs and
expenses set forth, under the terms and conditions below:
A. Annual Fees - For each year of this agreement the annual fee shall be calculated
in the following manner: The initial period shall be from July 1, 2021, to June
30, 2022, and the fee shall be $413,348. The base Annual Fee of $413,348 shall
be subject to a 2 percent (2%) increase effective July 1, 2022, and annually on
this date for every year thereafter.
This annual fee does not include the cost associated with a full re-inspection. A
re-inspection fee can be negotiated between the County Equalization Director
and if staff field reviews detwnine this to be necessary. Additionally, this re-
inspection may be required by the State following an Audit of Minimum
Assessing Requirements (AMAR).
B. Payments - The Municipality shall remit the annual fee m equal quarterly
payments commencing July 1 of each year of this agreement.
C. Relationship of the Parties - The parties aclmowledge that the agreement
between the County and The Municipality is one of an independent contractor.
Neither of the patties should represent that an employment relationship is created
or exists with regard to the employees of the other. This independent contractor
relationship shall be given its full scope and intent including without limitation
as it pertains to liability, wages, benefits, and taxation.
III. Miscellaneous
A. Section Headings - The headings of the sections shall be solely for convenience
of reference and shall not affect the meaning, construction, or effect hereof.
B. Severability - If any one or more of the provisions contained herein shall for any
reason be held to be invalid, illegal, or unenforceable in any respect, then such
provision or provisions shall be deemed severable from the remaining provisions
hereof, and such invalidity, illegality, or unenforceability shall not affect any
other prnvision hereof, and this Agreement shall be constrned as if such invalid,
illegal, or unenforceable prnvision had never been contained herein.
C. Entil'e Agreement and Amendment - In conjunction with matters considered
herein, this Agreement contains the entire understanding and agreement of the
parties and there have been no promises, representations, agreements, warranties,
or undertakings by any of the parties, either oral or written, of any character or
nature hereafter binding except as set forth herein. This Agreement may be
altered, amended, or modified only by an instrument in writing, executed by the
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parties to this Agreement, and by no other means. Each party waives their future
right to claim, contest, or assert that this Agreement was modified, canceled,
superseded, or changed by any oral agreements, course of conduct, waiver, or
estoppel.
D. Successors and Assigns -All representations, covenants and warranties set forth
in this Agreement by or on behalf of, or for the benefit of any or all of the parties
hereto, shall be binding upon and inure to the benefit of such party, it successors
and assigns,
E. Terms and Conditions - The terms and conditions used in this Agreement shall
be given their common and ordinary definition and will not be construed against
either party.
F. Execution of Counterparts - This Agreement may be executed in any number
of counterparts and each such counterparts shall for all purposes be deemed to be
an original; and all such counterparts, or as many of them as the parties shall
preserve undestroyed, shall together constitute one and the same instrument.
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ACKNOWLEDGEMENTS
City of Muskegon:
Its:
r-- .
By~ -
Ann Marie Meisch
Its: City Clerk
County of Muskegon: By:------------
Robe1t Scolnik
Its: Chairman Board of Commissioners
By:
Nancy A. Waters
Its: County Clerk
Approved as to Form:
Michael D. Homier, Corporate Counsel
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. '
ACKNOWLEDGEMENTS
City of Muskegon: By:~=-=--=~~~;LJ~m~i-
Step en Gu ·on
Its: Mayor
r, ,
By:°':~----~ ~ ----.,~--.._ \l> ·-~"c_r) -,
Ann Marie Meisch
Its: City Clerk
County of Muskegon: By:
--=--:---:--:---:--:--------
Robert Scolnik r
Its: Chairman Board of Commissioners
By: !;,zi.,~: W ...fi:;;._
Its: aunty Clerk
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