TITLE
title
INFORMATION TECHNOLOGY TAX SYSTEM RENEWAL
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SPONSOR
sponsor
Peter Purcell
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BACKGROUND
background
The North Carolina Property Tax Solution (NCPTS) is a resource available to counties to streamline and optimize all aspects of the property tax process. It is built on software developed by a North Carolina-based company, Farragut, and includes many beneficial features:
(1) Consistent application of property tax law by NCPTS counties through best business practices
(2) Intuitive system based on established best practices and standards
(3) Automated appraisals, billing and collections allow county staff to effectively administer the property tax process
(4) Thorough training and maintenance support
(5) Collaborative nine-member Oversight Committee that serves to continuously improve NCPTS and promote best practice sharing among member counties
(6) Proactive consultation and legislative monitoring of tax-related developments by David Baker, NCACC Director of Tax and Revenue Outreach and former Director of the Local Government Division of NC Division of Revenue.
On April 7, 2022, the Board authorized staff to enter into a three-year sole source maintenance contract with Farragut System Inc., (NCPTS tax application vendor) in the amount of $201,400 annually, totaling $604,200 over a three-year term, beginning May 1, 2022 for the purpose of maintaining the current Tax Applications. The one-year renewal amount in estimated at $219,526, an increase of $18,126, with Tax B&C support at $109,763 and LRC support at $109,763.
On January 19, 2023, the Board authorized staff to amend the prior contract to incorporate Cloud Service and related fees in the amount of $418,375 over the remaining term of the prior contract. After the initial term, the Cloud Service annual fee may be adjusted by Farragut each year by not more than 5%. The Cloud Service will automatically renew coincident with County executed Tax Application renewals unless either party provides written notice to the other party of its intent to terminate this Cloud Agreement at least ninety (90) days prior to the end of the then-current term. Cloud Support renewal is estimated at $225,225, an increase of $10,725 (5%).
This agenda item requests Board approval to approve a one-year renewal, in substantial form, for Tax B&C support, LRC support, and Cloud support for a total amount of $444,751 upon expiration of the initial term ending on April 30, 2025, to provide certain products and services as outlined in the contract documents and authorize staff to take all reasonable actions to finalize and execute said renewal.
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BUDGET IMPACT
budget impact
NO ADDITIONAL COUNTY FUNDS REQUIRED
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REQUESTED ACTION
requested action
Approve a one-year renewal, in substantial form, for Tax B&C support for $109,763, LRC support for $109,763, and Cloud support for $225,225, for a total amount of $444,751 upon expiration of the initial term ending on April 30, 2025, to provide certain products and services, as outlined in the contract documents and authorize staff to take all reasonable actions to finalize and execute said renewal.
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