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2.6 Confidentiality

2.6.1

Company, municipal assessing officials or municipal employees shall not
disciose any preiiminary values to anyone or permit anyone to use or access
any data on file during the course of the revaluation project, except the
municipal assessing officials and the Commissioner of the DRA, or their
respective designees, until the values have been submitted to the municipal
assessing officials and made public.

2.7 Compensation and Terms

2.7.1

2.7.2

2.7.3

Cost:

2.7.4

2.7.5

2.7.6

Municipality, in consideration of the services hereunder to be performed by
Company, agrees to pay Company the sum total of Five Hundred Thousand
Dollars ($500,000.00) pursuant to the terms of the agreement as defined in
Section 3.

The above price includes five (5) days of defense of values. After the first five
(5) days, the Company shall be compensated for any work relating to the
defense of values either through the abatement process or appeals to BTLA
or Superior Court at the rate of One Hundred Dollars per hour
($100.00/Hour).

The itemized cost for the appraisal of special use or utility property if not
included in 2.7.1 is/are listed below:
Map/Lot Ownership/Name Appraised By
N/A N/A N/A

The Company will submit a monthly invoice based on the portion of work
completed during the preceding month, less thirty percent (20%) for
retainage. All invoices will be paid within thirty (30) days of receipt.

Retainage in the amount of One Hundred Thousand Dollars ($100,000.00),

20% of the contract, will be withheld from the Company. The retainage shall

be released as follows:

(1) Eighteen percent ($90,000.00) within 30 days after the final values are
posted; and,

(2) Two percent ($10,000.00) within 30 days after the DRA has completed
its review of the Statistical Revaluation and a compliant USPAP report is
filed and delivered to the City.

Except as provided in Sections 2.7.2 and 2.7.3, the stated consideration in
2.7.1 represents the total payment for all contracted services.

3. DETAIL OF SERVICES TO BE PERFORMED BY COMPANY

3.1 Collection of Sale Property Data

3.1.1

Company shail visit each Commercial and Industrial property that sold

8 City of Nashua, NH
Full Statistical Revaluation Contract

3.1.2

3.1.3

3.1.4

3.1.5

3.1.6

between April 1, 2016 and March 31, 2018 to verify existing data and
conditions of the sale. Company shall visit each Residential property that
soid between April i, 2017 and March 31, 2018 to verify existing data and
conditions of the sale.

Vacant land parcels and any attributes that may affect the market value shall
be listed accurately. Such attributes may include, but not be limited to:
number of acres; road frontage; neighborhoods; water frontage; water
access; views; topography; easements; deeded restrictions and other factors
that might affect the market value.

Principal building(s), and any appurtenant building(s), or other
improvements, shall be accurately measured and listed to account for the
specific elements and details of construction as described in the data
collection manual. Such elements and details may include, but not be
limited to: quality of construction; age of structure; depreciation factors;
basement area; roofing; exterior cover; flooring; fireplaces; heating &
cooling systems; plumbing; story height; number of bathrooms; number of
bedrooms; and, other features, attributes, or factors that might affect
market value.

Company shall make an attempt to inspect the property, and if the attempt
is unsuccessful, Company shall leave a notification card at the property
requesting that the property owner call Company’s designee, within a stated
time frame as agreed upon by the municipal assessing officials and
Company, to arrange for an interior inspection.

lf the municipal assessing officials are not able to arrange for an interior

inspection, or entrance to a building or parcel of land cannot be obtained as

detailed in Section 3.1.6 below, Company shall:

(1) Estimate the value of the improvements using the best evidence
available; and,

(2) Annotate the property record card accordingly.

Company shall complete interior inspection of sale properties except:

(1) Vacant or unoccupied structures;

(2) Where muitiple attempts for inspection have been made without
success and the owner or occupant has not responded to Company or
the municipal assessing officials’ notifications;

(3) Where postings prevent access;

(4) Unsafe structures;

(5) When the owner has refused access to Company or designee;

(6) When inhabitants appear impaired, dangerous or threatening; and,

(7) Any other reason for which the municipal assessing officials agree that
the property is inaccessible.

9 City of Nashua, NH
Full Statistical Revaluation Contract

3.2

3.1.7

3.1.8

Company shall provide to Municipality a complete copy of the field data
collection cards, worksheets and other documents used in the valuation
process.

Company shall provide monthly progress reports indicating the percentage
of completion of the full statistical revaluation to the municipal assessing
officials.

Property Record Cards

3.2.1

Company shall prepare an individual property record card, for each separate
parcel of property in Municipality arranged to show:
(1) The owner’s name, street number, map and lot number or other
designation of the property;
(2) The owner’s mailing address;
(3) Information necessary to derive and understand:
(a) The land value;
(b) The number of acres of the parcel;
(c) The land classification;
(d) The adjustments made to land values;
(e) The value of the improvements on the land;
(f) The accurate description of all improvements whether affecting
market value or not;
(g) The improvement pricing details; and
(h) The adjustments made for physical, functional and economic
depreciation factors;
(4) The outline sketch of all principal improvements with dimensions with
the street side or waterfront toward the bottom of the diagram;
(5) The base valuation year;
(6) The print date of property record card;
(7) Photograph of the principal building;
(8) History of the property transfer to include:
(a) Date of sale;
(b) Consideration amount;
{c) Qualification code; and,
(d) Property type noted as either vacant or improved;
(9) A notation area to record any comments pertaining to the property;
and,
(10) A notation area to record the history of the property, which may
include, but not be limited to:
(a) Property inspection date;
(b) Individual’s identification number or initials associated with the
inspection;
(c) The extent of the inspection;
(d) Reason for the inspection; and,
(e} Any value adjustments,

10 City of Nashua, NH
Full Statistical Revaluation Contract

3.3

Market Analysis
3.3.1 A DRA-certified property assessor supervisor shall conduct the full statistical
revaiuation market anaiysis.

3.3.2. A DRA-certified property assessor assistant, under the guidance of a DRA-
certified property assessor or a DRA-certified property assessor supervisor,
may validate or invalidate sales for the market analysis.

3.3.3

3.3.4

The municipal assessing officials shall provide to Company a copy of all
property transfers for a minimum of two (2) years immediately preceding
the effective date of the statistical revaluation of April 1, 2018.

A market analysis shall be conducted by Company using accepted mass
appraisal methods in order to determine land, improvements and any other
contributory values or factors including:

(1)
(2)

(3)

(4)

A review of all property transfers provided by the municipal assessing
officials to Company;

A compilation of all unqualified property transfers into a sales list with
appropriate notations for those sales not used in the analysis
accompanied by:

(a) The parcel map and Jot number;

(b) The disqualification code;

(c) The date of sale; and,

(d) The sale price.

A compilation of all qualified property transfers into a sales list with
appropriate notations for those sales used in the analysis accompanied
by:

(a) The parcel map and lot number;

(b) The date of sale;

(c) The sale price;

(d) The newly established value;

(e) A photocopy or printout of the property record card for each
property transferred; and,

(f) A photograph of the principal improvements attached thereto;

Estimated land values with the documented results, as follows:

(a) Utilizing vacant land sales whenever possible; and,

(b) In the absence of an adequate number of vacant land sales, the
land residual method or other recognized land valuation
methodologies shall be used to assist in the determination of
land unit values;

(5) The Indicated land values shall be documented as:

(a) Site;

(b) Front or square foot;

(c) Base acre;

(d) Excess acre units; and/or,

(e) Other appropriate units of comparison;

11 City of Nashua, NH
Full Statistical Revaluation Contract

3.4

3.3.5

3.3.6

3.3.7

3.3.8

3.3.9

(6) An analysis section to include:
(a) The sale price; and,
(b) Supporting adjustments made in sufficient detail to be
understood by the municipal assessing officials and taxpayers;
(7) The market analysis used to indicate unit values with the
documentation of the method(s) employed and any special adjustment
factors; and,
(8) Tax Maps showing the locations of all qualified sales and the delineation
of neighborhoods.

The preliminary market analysis shall:

(1) Be provided to the municipal assessing officials and the DRA prior to the
acceptance of the new values by the municipal assessing officials;

(2) Be printed in its final form, and provided to the municipal assessing
officials and the DRA at the completion of the revaluation as part of the
USPAP compliant report; and,

(3) Become property of Municipality and the DRA.

Company shall perform a parcel-by-parcel field review of One Hundred
percent (100%) of properties to be performed by a DRA-certified property
assessor assistant or higher. The purpose of this field review shall be to apply
the methodology established from the sales analysis to the non-sale
properties as well as to identify and correct any mechanical or data errors.

Company shall ensure that a final comprehensive review of the newly

established values shall be performed by a DRA-certified property assessor

supervisor utilizing a parcel-by-parcel review of the entire Municipality to:

(1) Ensure that all properties are valued at their highest and best use; and,

(2) Ensure that the methodology established from the sales analysis has
been consistently applied to all non-sale properties.

Any supporting documentation supplied, provided or utilized by Company in
the process of compiling the market analysis, such as but not limited to:
sales verification sheets; rental/expense statements and questionnaires;
Company cost estimates; sales listing sheets; final review notes; etc., shall be
relinquished to and become property of Municipality.

The Company shall update the existing digital image file by taking a new
photo for each improved property. The image shall be at least 6 megapixels
and shot from the street. Images will not be updated for any properties that
are posted “No Trespassing”.

Approaches to Value

3.4.1

The valuation of property for the revaluation shall be completed by utilizing
recognized approaches to value, which may include, but not be limited to:

12 City of Nashua, NH
Full Statistical Revaluation Contract

3.4.2

3.4.3

Cost Approach:

(1) The cost approach, when utilized, shall be implemented by calibrating
and appiying iand vaiuation tabies, building vaiuation tabies and unit
costs as follows:

(a) Investigate, with documented analysis, land values for
residential, commercial, industrial and any other special use
properties in the area;

(b) Document the land valuation tables and unit costs by including
statistical testing to compare the calculated preliminary land
value to the sale properties to ensure accuracy before the land
valuation tables and unit costs are implemented;

(c) Document the development of the units of comparison that
shall be used for the base land prices, which may include, but
not limited to: site; front foot; square foot; base acre; excess
acre; and, other appropriate units of comparison;

(d) Document site specific characteristic land adjustments, which
may include, but not be limited to: topography; view; size;
location; and, access; and,

(e) Document the calibration of land tables and models.

(2) In developing building cost tables, Company shall provide the following:

(a) Investigate, with documented analysis, the building costs of
residential, commercial, industrial and any other special use
properties in the area;

(b) Document the testing of Company’s building valuation tables
and unit costs by comparing the calculated preliminary building
value to the sale properties, for which the building costs are
known, to ensure accuracy before the building valuation tables
and unit costs are implemented;

(c) The building cost tables shall consist of unit prices based upon
relevant factors, which may include, but not be limited to:
specifications for various types of improvements; the quality of
construction; the building customs and practices within the
Municipality; various story heights and square foot areas
adequate for the valuation of all types of buildings and other
improvements to the land; tables for additions and deductions
for variations from the base cost improvement specifications;
and, tables for depreciation based upon age and condition of
the improvements; and,

(d) Document the calibration of all building cost tables and models.

Income Approach:
(1) The income approach, when utilized, shall be implemented by
calibrating and applying valuation models as follows:
(a) Investigate and qualify, with documented analysis, market data,
which may include but not be limited to: rental income;
expenses; vacancy; and, capitalization rates for: residential,

13 City of Nashua, NH
Full Statistical Revaluation Contract

3.5

3.6

(b)
(c)

(d)

(e)
(f)

commercial, industrial and any other special use property;
Describe property specific characteristics;
Document statistical testing for the income valuation models to
known sales of similar properties;
Create valuation models consisting of market data based upon:
(i) Defined descriptions and specifications based upon
property type; and,
(ii) Quality and size of the improvements; and,
Document the calibration of all income approach valuation
tables and models.
The Company shall be responsible for costs associated with
mailing Income and Expense forms to applicable properties.

3.4.4 Market-Sales Comparison Approach:
(1) The market-sales comparison approach, when utilized, shall be
implemented by calibrating and applying valuation models as follows:

3.4.5

(a)

(b)
(c)

(d)
(e)
(f)

Company shall qualify, analyze, and use sales as direct units of
comparison in the valuation of residential, commercial,
industrial and any other special use properties;

Investigate with documented analysis comparable sales;
Document the adjustments for specifics, which may include, but
not be limited to: location; time; size; features; and, condition;
Document how the adjustments were derived;

Document final value reconciliation; and,

Document calibration of all sales comparison tables and models.

In the utilization of the appraisal approaches to valuation, Company shall
make and document adjustments made to properties for depreciation
factors, which may include, but not be limited to: physical; functional; and,
economic conditions.

Utility and Special Use Properties
3.5.1 The Company shall not be responsible for the valuation of poles and
conduits. The company recommends the City contract these services
through a separate vendor.

3.5.2

The Company shall not be responsible for the valuation of any Utility

property. The company recommends the City contract these services
through a separate vendor or use values established by DRA.

Value Notification and Informal Reviews

3.6.1 Company shall provide to the municipal assessing officials:

(1) Alist of the newly established values for review;

(2) A preliminary value analysis with a copy delivered to the DRA for
review; and,

(3) Final values posted on the Company’s website, at City Hall and one

14 City of Nashua, NH
Full Statistical Revaluation Contract

other public place to be determined by the City.
3.6.2. Company shall conduct informal hearings. The informal hearing process shall
include:
3.6.2.1 The Municipality shall mail, first class, to all property owners, the
notification of the newly established value of their property by
sending to the property owner a letter to the owner stating the
newly established value of their property and whether Municipality
has either:

(1) Published a list of all property owners containing the newly
established valuations for all properties within Municipality in
an identified newspaper of general circulation for the entire
Municipality; or,

(2) Posted in two (2) identified public places within Municipality a
list of all property owners and the newly established values of
the entire Municipality.

3.6.2.2 The notification of newly established values shall contain the details
of the informal review process, instructions on scheduling an
informal review; and the time frame in which informal reviews shall
be scheduled.

3.6.2.3 The notification of newly established values shall contain instructions
in regard to the appeal process for abatements pursuant to RSA
76:16, RSA 76:16-a and RSA 76:17.

3.6.2.4 After mailing or posting of the notification of newly established
values, Company shall ensure that an informal review of the newly
established property values is provided to all property owners who
may, within the time prescribed by the contract, request such a
review.

3.6.2.5 Notwithstanding Section 2.6 of this contract (Confidentiality),
Company shall make available to all property owners the property
record card and market analysis related to their newly established
property value(s).

3.6.2.6 The Municipality shall notify, by first class mail, all property owners
addressed during the informal reviews and indicate whether or not a
change in value resulted and the amount thereof.

3.6.2.7 All documentation utilized or obtained during the informal review
process shall be relinquished to the municipal assessing officials.

3.7 Appraisal Reporting and Appraisal Manuals
3.7.1 Company shall provide a USPAP compliant appraisal report pursuant to RSA
21-J:14-b,1,(c): The report shall comply with the most recent edition of the

15 City of Nashua, NH
Full Statistical Revaluation Contract

3.7.2

3.7.3

3.7.4

USPAP Standard 6. The report shall contain, at a minimum, the following:
(1) A letter of transmittal to include a signed and dated certification
statement;
(2) Sections detailing:
(a) The scope of work;
(b) The development of values;
(c) Time trending analysis;
(d) Land and neighborhood data;
(e) Improved property data;
(f) Statistical testing, analysis, and quality control; and,
(g) The development of approaches to value used in the valuation
of properties.
(3) Appendices which may include, but not be limited to:
(a) Work plan;
(b) Neighborhood maps;
(c) Names and levels of DRA-certified individuals authoring or
assisting with the development of the USPAP compliant report;
(d) CAMA system codes;
(e) Identification and description of zoning districts;
(f) Qualified and unqualified sale codes; and,
(g) Other useful definitions or information.
(4) Instructions, or as a separate document, adequate instructions for the
municipal assessing officials to:
(a) Understand the valuation methodologies employed;
(b) Understand the market and neighborhood adjustments; and,
(c) Understand the conclusions of the appraisal report.

Company shall provide a USPAP compliant report to the municipal assessing
officials, to be retained by the municipal assessing officials until the next
revaluation and a copy to the DRA.

Company shall provide a USPAP compliant report to the municipal assessing
officials for any special use properties or utilities included in Section 2.7.3,
and a copy to the DRA.

Company shall provide a data collection manual, to be included within the
USPAP report, or as a separate document, which may include but not be
limited to:

(1) A description of building characteristics; extra features; outbuildings;
site improvements; site characteristics; road frontage; water frontage;
water access; topography; and view;

(2) A glossary and description of all codes used within the data collection
and on property record cards;

(3) A description of all grading factors utilized, which may include, but may
not be limited to: condition factors; quality; depreciation; amenity
values; and other factors or conditions; and,

16 City of Nashua, NH
Full Statistical Revaluation Contract

3.8

3.7.5

(4) A glossary and description of the coding used for visitation history.

Company shall ensure that the municipal assessing officials have:
(1) A technical CAMA manual detailing the CAMA system utilized; and,
(2) Been provided training in the proper use of the CAMA system.

Defense of Values
3.8.1 Company shall, after the final property tax bills have been mailed by

3.8.2

3.8.3

Municipality, support and defend the values that were established by

Company for the year of the revaluation as follows:

(1) The Company shall provide the first five (5) days of defense of values at
no additional cost to the Municipality.

(2) After the initial five (5) days and for an additional cost to Municipality as
outlined in Section 2.7, property tax abatement requests that are timely
filed with Municipality pursuant to RSA 76:16 shall have:

(a) Areview, by a DRA-certified property assessor or higher; and,

(6) The Company’s written recommendation provided to the
municipal assessing officials which an abatement request had
been received.

Company shall provide a qualified representative for the defense of property
tax abatement appeals that are timely filed with the Board of Tax and Land
Appeals (BTLA) or Superior Court pursuant to RSA 76:16-a and RSA 76:17,
whose compensation has been agreed upon by the parties to the contract as
stipulated in Section 2.7.

Appeals to the BTLA or Superior Court:

(1) Company will support and defend values established by Company that
may have been lowered by municipal assessing officials but shall not be
required to support or defend values that have been increased by the
municipal assessing officials.

(2) For utility and special use property tax abatement appeals, Company
shall recommend the services of an expert and shall be covered under a
separate contract for the services rendered.

3.8.4 All documentation utilized or obtained during the defense of assessed value

process shall be relinquished to Municipality.

4, RESPONSIBILITIES OF MUNICIPALITY

4.1

4.2

The municipal assessing officials shall identify to Company, in writing, which

properties within the taxing jurisdiction are exempt from taxation.

The municipal assessing officials shall furnish to Company information such as but

not be limited to: the current ownership information of all property; the physical
location of all property; property address changes within Municipality; all property

17 City of Nashua, NH
Full Statistical Revaluation Contract