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State of New Hampshire

Department of Revenue Administration
109 Pleasant Street
PO Box 487, Concord, NH 03302-0487
Telephone (603) 236-5000
www. revenue.nh.gov

Lindsey M. Stepp MUNICIPAL AND PROPERTY
Commissioner DIVISION
Carallynn J. Lear sector
Assistant Commissioner February 7, 2020

Samuel T. Greene
Assistant Director

City of Nashua
Attn: Kim Kleiner, Administrative Services Director

229 Main Street
Nashua, NH 03061

Re: 2020-22 Cyclical Revaluation Contract

Dear Ms. Kleiner,

Pursuant to RSA 21-J:11, the Contractor has submitted a contract to the Department (via email
attachment on January 31, 2020) for its review and recommendations. The 2020-22 contract
is the result of a Board of Tax and Land Appeals (BTLA) Reassessment Order and therefore also
requires approval by the Department per Rev. 602.

The 2020-22 contract has been reviewed and the Department has attached a revised version
with minor reference corrections. The Department is making no other contract language
recommendations. The Department also approves the scope, contents and terms of the
contract.

The DRA is also in receipt of insurance certificates, as required in Rev 607.01 (a) and the
performance bond, as required in Rev 607.02. The Department suggests that the City require
that all insurance and bonding be renewed as necessary; and to remain in force for the balance
of the contract term. At present all Department conditions requisite for the signing of the
contract by the contracting parties have been satisfied. Please provide renewed insurance and
bond certificates when the present ones expire.

If you have any questions, please feel free to contact me at (603) 230-5963 or
Samuel.Greene@dra.nh.gov.

Sincerely,

Spr gh
Sam Greene, Assistant Director
Municipal and Property Division

Ce. File

TDB Access: Relay NH 1-200-735-2964
individuais who need auxiliary aids for effective communication in programs and services of the
Department of Revenue Administration are invited to make their needs and preferences known to the Department.

CYCLICAL REVALUATION CONTRACT
BTLA REASSESSMENT ORDER

SUBJECT: “CYCLICAL REVALUATION” means the revaluation of all taxable and non-taxable properties in a Municipality,
combining a complete measure and listing of all taxable and nontaxable properties over time, excluding utilities except for
land, and updating an establishment of the new base year, to arrive at full and true value as of April 1.

The City of Nashua, NH, a municipal corporation organized and existing under the laws of the State of New Hampshire,
hereinafter called Municipality; and, Vision Governmental Solutions a business organization existing under the laws of the
Commonwealth of Massachusetts and registered to do business in New Hampshire as a Foreign Corporation, and having a
principal place of business at, 1 Cabot Rd., Hudson, Massachusetts, hereinafter called Contractor, hereby mutually agree as

follows:
1. GENERAL PROVISIONS
1.1. PARTIES

1.9

1.12

1.1 Name of Municipality:

1.2 Mailing Address of Municipality:

1.3 Contracting Official(s) name(s) and Title(s)
for Municipality:

1.4 Telephone and Fax numbers:

1.5 E-mail Address, if applicable:

City of Nashua

229 Main Street. Nashua, NH 03061

James W. Donchess, Mayor
C/O Kim Kleiner, Administrative Services Director

Phone: 603-589-3025
Fax:

klemerk@enashuank.goy

1.6 Name of Contractor:

1.7 Mailing Address of Contractor:

1.8 Principal Place of Business:

E-mail Address, if applicable:

1.10 Telephone and Fax numbers:

Name and Title of Authorized Contractor:

Type of Business Organization:

Vision Government Solutions

i Cabot Rd., Hudson, MA G1749

Same as mailing address

sales@vegsi.com
Phone: 860-628-1013
Fax: 508-351-3798

Kevin Bullock, CFO

C-Corporation

1.13.1 The Municipality approved legislation to find this contract, Resolution R-19-159, on August 13,2019, On
August 28, 2019, the Municipality issued a Request for Proposals for Full Measure and List Appraisal and

Revaluation.

1.13.2 On October 29, 2019, the Board of Tax and Land Appeals ordered the Municipality to complete a full revaluation
by tax year 2022, including a full measure and listing of all properties in compliance with all applicable rules and

regulations, including the DRA’s Part 600 rules.

The BTLA was clear in its Order For Reassessment in recognizing that the City would require three years to
perform the measuring and listing (Cyclical Inspections as defined by Rev. 601.15) of all Nashua properties. The
City is, therefore, contracting a Cyclical Revaluation (as defined by Rev 601.16} which describes three calendar
years of measuring and listing of all taxable, non-taxable and tax-exempt properties within the City followed by a

revaluation for the 2022 tax year.

PART Rev 601 DEFINITIONS

Rey 601.01 “Abatement Review” means to make an assessment recommendation to the municipal assessing officials or to
make a change to an assessment that is in response to an abatement request from a taxpayer.

Rev 601.02 “Appraisal” means the act or process of developing a market value estimate of property which will be used as
the basis for valuation, fulfilling a municipality’s statutory duties relative to property tax administration including, but not
limited to those pursuant to RSA 75:1.

Rev 601.05 “Assessing Services” means the making of appraisals, reappraisals, assessments, or providing other services
on behalf of municipal assessing officials for the statutory administration of property valuation and assessment including,
but not limited to those pursuant fo RSA 75:1.

Rev 601.06 “Assessing Standards Board (ASB)” means the State of New Hampshire assessing standards board as
established pursuant to RSA 21-J:14-a.

Rev 601.07 “Assessment” means an estimate of the quality, amount, size, features, or worth of real estate which is used as
a basis for a municipalities’ valuation in accordance with statutory requirements including, but not limited to those pursuant
to RSA 75:1.

Rev 601.08 “Base Year” means the tax year in which the municipality performed a revaluation of all properties.

Rev 601.09 “BTLA Reassessment” means an order by the State of New Hampshire board of tax and land appeals for a
revaluation or partial update of a municipality’s property assessments.

Rey 601.10 “Calibration” means the process of ensuring the predictive accuracy of the CAMA model(s), through testing,
which may include but not be limited to; determining the variable rates and adjustments from market analysis for land and
land factors, costs and depreciation for a cost model, valuation rates and adjustments for a sales comparison model, and
market rents and capitalization rates for an income model.

Rey 601.11 “Computer Assisted Mass Appraisal System (CAMA)” means a system of appraising property that
incorporates computer-supported tables, automated valuation models and statistical analysis to assist the appraiser in
estimating value for a revaluation, assessment data maintenance and valuation update.

Rev 601.13 “Contract” means any agreement between the municipality and the contractor for making appraisals,
reappraisals, assessments, or for appraisal work on behalf of a municipality with the State of New Hampshire.

Rev 601.14 “Contracter” means the person, firm, company, or corporation with which the municipality has executed a
contract or agreement for assessing services.

Rev 601.15 “Cyclical Inspection” means the process of a systematic measure and listing of all properties within a
municipality over a specified period of time, The term includes “data collection” and “data verification.”

Rev 601.16 “Cyclical Revaluation” means the process of combining a full statistical revaluation of the entire municipality
with a cyclical inspection process.

Rev 601.17 “Data Collection” means the inspection, measuring, or listing of property within a municipality. The term
includes data verification.

Rev 601.20 “DRA-certified” means a level of certification attained by a person as set forth by the ASB in Asb 300
pursuant to RSA 21-J:14-£

Rev 601,22 “Executed” means to transact, agree to, carry into effect, sign or act upon a contract or agreement to perform
assessing services for a municipality. The term includes “executing.”

Rev 601.23 “Final Monitoring Report” means the DRA’s final letter to the municipality for any revaluation or partial
update.

Rev 601.24 “Full Revaluation” means the revaluation of all taxable and nontaxable properties in a municipality, with a
complete measure and listing of all taxable and nontaxable properties to occur at the same time of the establishment of the
new base year, to arrive at full and true value as of April 1. The term includes “full reappraisal” and “full reassessment.”

Rev 601.25 “Full Statistical Revaluation” means the process of a revaluation of all taxable and nontaxable properties in a
municipality, using existing property data, to arrive at full and true value as of April 1. The term includes “statistical
update” and “‘statistical reassessment.”

Rev 601.26 “Highest and Best Use” means the physically possible, legally permissible, financially feasible, and
maximally productive use of a property, as appraised in accordance with RSA 75:1.

Rev 601.27 “Improvement” means any physical change to either land or to buildings that may affect value.

Rev 601.29 “In-house Werk Plan” means a written set of goals, objectives, processes, and timelines that the municipality
intends to rely upon to perform revaluations, partial updates, or cyclical inspections.

Rev 601.30 “Listing” means recording a description of the interior, exterior, and attributes of any improvements or the
recording of the description of land features and attributes. The term includes “list.”

Rev 601.31 “Market Analysis” means the study and processes utilized to determine the response of buyers and sellers of
real estate, in a geographic area, to various data elements through the analysis of cost data, income data, and sale
transactions in the performance of mass appraisal.

Rev 601.32 “Market Value” means the value of a property that:
(a) Is the most probabie price, not the highest, lowest or average price;
(b) Is expressed in terms of money;
(c) Implies a reasonable time for exposure to the market;
(d) Implies that both buyer and seller are informed of the uses to which the property may be put;
(ce) Assumes an arm’s length transaction in the open market;
(f) Assumes a willing buyer and a willing seller, with no advantage being taken by either buyer or seller; and,
(g) Recognizes both the present use and the potential use of the property.
The term includes “full and true value.”

Rev 601.33 “Mass Appraisal” means the utilization of standard commonly recognized techniques to value a group of
properties as of a given date, using standard appraisal methods, employing common data and providing for statistical
testing.

Rev 601.34 “Measure” means the physical inspection, verification, sketching and recording of the exterior dimensions and
attributes of any improvements made to a property.

Rev 601.36 “Municipal Assessing Officials” means those charged by law with the duty of assessing taxes and being the:
(a) Governing body of a municipality;
(b) Board of assessors or selectmen of a municipality; or
(c) County commissioners of an unincorporated place.

Rev 601.37 “Municipality” means a city, town or unincorporated place.

Rev 601.38 “Partial Update” means the process of analyzing market sales throughout the entire municipality to identify
and implement needed value changes to the affected areas, or classes of property, to bring those properties to the
municipality’s general level of assessment utilizing the existing base tax year and providing an addendum to the existing
USPAP compliant report. The term includes “partial revaluation.”

Rev 601.40 “Revaluation” means the act of re-estimating the worth of real estate of the entire municipality using standard
appraisal methods, calibration of the CAMA tables and models, establishment of a new base year with a USPAP compliant

report, and providing for statistical testing whether by either:
(a) A full revaluation; or,
(b) A full statistical revaluation.
The term includes “reappraisal,” “reassessment,” and “value anew.”

Rev 601.41 “Sale Validation” means the process of verifying a real estate sale transaction to determine whether the sale
was a valid or an invalid indicator of the market value of the sold property. The term includes “sale verification” and “sale
qualification.”

Rev 601.42 “Statistical Testing” means the use or application of numerical statistics to understand the results of a
reappraisal or the need for a reappraisal.

Rev 601.44 “Uniform Standards of Professional Appraisal Practice (USPAP)” means the generally accepted and
recognized standards of appraisal practice printed by The Appraisal Foundation as authorized by Congress as the source of
appraisal standards and appraiser qualifications.

Rev 601.45 “USPAP Compliant Report” means an appraisal report based upon the standards established by the ASB
pursuant to RSA 21-3:14-b I, (c.)

PART Asb 304 DUTIES

Asb 304.01 DRA-Certified Building Measurer and Lister Duties.

(a} For revaluation or assessing services, under the guidance and oversight of a DRA-certified property assessor or
DRA-certified property assessor supervisor, a DRA-certified building measurer and lister may perform:

(1} Data collection;
(2) Data verification; and
(3) Cyclical inspection.
(b} A DRA-certified building measurer and lister shall not perform sale validation.

(c) A DRA-certified building measurer and lister shall not determine, or change, the quality grade or depreciation of
structures.

(d) A DRA-certified building measurer and lister shall not determine or change adjustments applied to land attributes.
Asb 304.02 DRA-Certified Property Assessor Assistant Duties.
(a) For revaluation or assessing services, under the guidance and oversight of a DRA-certified property assessor or
DRA-certified property assessor supervisor, a DRA-certified property assessor assistant may assist with:
(1) Assessment tasks as defined in Asb 301.06;
(2) Sale validation; and
(3) The training of a building measurer and lister.

(b) A DRA-certified property assessor assistant shall not adjust an assessment unless specifically authorized by a DRA-
certified property assessor or DRA-certified property assessor supervisor.

(c) A DRA-certified property assessor assistant shall not perform final field review as defined in Asb 301.26,

(d} A DRA-certified property assessor assistant shall not oversee revaluation informal review process or conduct
abatement reviews.

(c) A DRA-certified property assessor assistant shall not represent a municipality in the defense of assessed values.

Asb 304.03 DRA-Certified Property Assessor Duties.

(a) A DRA-certified property assessor may, in accordance with Asb 303.05:

(1) Perform appraisal work which includes:

a. The annual maintenance of assessments by using the base year data collection manual and USPAP-
compliant report; and

b. The use of the computer assisted mass appraisal system existing models and cost data established by a
DRA-certified property assessor supervisor during the year of the last revaluation for new appraisals;

(2} Perform abatement reviews and the defense of value under the supervision of a DRA-certified property
ASSeSSOT SUPETVISOT;

(3) Perform sale validation; and

(4} Submit a signed and dated statement to the DRA attesting to the qualifications of a building measurer and
lister, or a property assessor assistant, working under the DRA-certified property assessor’s supervision to be true,
accurate and correct.

(b), A DRA-certified property assessor shall not adjust the cost, land, depreciation, or other computer assisted mass
appraisal tables resulting in a change ito the values unless specifically authorized by a DRA-certified property assessor
supervisor.

(c) A DRA-certified property assessor shall not establish and certify values.

(d) A DRA-certified property assessor shall not sign the USPAP-compliant report.

{ce} A DRA-certified property assessor shall not conduct the final field review.
Asb 304.04 DRA-Certified Property Assessor Supervisor Duties.

(a) Perform and supervise all appraisal work;
(b) Conduct and supervise a revaluation, cyclical revaluation, or partial update by:
(1) Compilation of the data collection manual;

(2) Performing a market analysis for the establishment of the base values and tables for the computer assisted mass
appraisal models;

{3} Calibrating the computer assisted mass appraisal models;
(4) Performing the data quality final field review of the mass appraisal results;
{5) Conducting statistical testing;
(6) Complete and certify a USPAP-compliant report; and
{7} Overseeing and supervising:
a. The informal review process;
b. The abatement review; and
c. Defense of the appraised value(s);
{c) Oversee any revaluation by assisting the municipal assessing officials to ensure that:
(1) The revaluation is performed in accordance with applicable state statutes and administrative rules;
(2) The contract terms and conditions are adhered to; and ‘
(d) Submit a signed and dated statement to the DRA attesting to the qualifications at all levels of certification to be

true, accurate, and correct.

2. RESPONSIBILITIES AND SERVICES TO BE PERFORMED BY CONTRACTOR

2.1 Contract Submission

The contract, any revised contract, and the list of personnel assigned to work under the contract, shall be first submitted
to the DRA for examination and shall not be approved by the DRA until the indemnification and insurance certificates as
described in Rev 607.01(a) and the performance bond as described in Rev 607.02 have been submitted to both the
municipal assessing officials and the DRA.

2.2

2.3

Assessment of all Property

2.2.1 This cyclical revaluation shall commence in tax year 2020 and be completed in 2022 when a full statistical
revaluation analysis shail be conducted to bring values to 100% of market value.

2.2.2. Contractor shall measure and list all taxable property (RSA 72:6) within Municipality in a good and
workmanlike manner in accordance with RSA 75:1.

2.2.3 Contractor shall measure and list ail tax exempt and non-taxable property (RSA 74:2) within the taxing
jurisdiction of Municipality in the same manner as taxable property.

2.2.4 Contractor shall measure, list and verify all sales used to determine benchmarks for the revaluation.

2.2.5 The contractor shall update the existing assessment information to correct errors or omissions pertaining to:
(1) Incorrect measurements; and
(2) Physical changes, which may include, but not be limited to:

Additions;
Renovations;
Finished areas;
Structural alterations;
Outbuildings; or

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Other site factors or improvements;

2.2.6 Contractor shall measure and list all new construction brought to their attention by Municipality via
building permits, inventories and any other source.

2.2.7 Contractor shall utilize Municipality’s Patriot AssessPro CAMA System to appraise properties.
Completion of Work

2.3.1 Contractor shall complete all work and deliver the same in final form to the municipal assessing officials on
or before September 1, 2022 to allow for quality control prior final submission.

2.3.2 Liquidated damages of $1,100 per day shall be paid by Contractor for each day required beyond the above
stated completion date for delays caused by Contractor.

2.3.3 Contractor shall provide Municipality a list of all products to be delivered and dates of delivery thereof. The
products include:
(1} Property record cards in hard copy, electronic or both formats;
(2) The USPAP Compliant Appraisal Report;
(3) The Data Collection Manual;
(4) The CAMA System Manual; and,
(5) Any other products as deemed necessary by the municipal assessing officials (as described in Section
3).
2.3.4 The cyclical revaluation shall be considered satisfied and in its final form only when:
(1) The informal review of assessments has been completed as described in Section 3.6;
(2) Any required value adjustments are made;
(3) The final values are submitted to and accepted by the municipal assessing officials;

(4) All products required by the contract are delivered to Municipality and the DRA;

(5) The DRA has completed its final monitoring report;

(6) Values established by Contractor have been defended through the municipal abatement process, as
described under RSA 76:16, for the year of the full statistical revaluation, and,

(7) All other terms of the contract have been satisfied.

2.4 Personnel

2.5

2.6

2.7

2.4.1

24.2

2.4.3

2.4.4

2.4.5

2.4.6

For grading, classifying, appraising and data collection of all property covered by the contract, Contractor
shall only employ personnel who are:

(1) Certified by the DRA, as defined in the Asb 300 Rules and RSA 21-J:14-f for the level of work they
will be performing; and,

(2) Approved by the municipal assessing officials.

Contractor shall not compensate, in any way, a municipal official, employee or any immediate family
member of such official or employee in the performance of any work under the contract unless previously
disclosed and a prior full-time employee of Contractor.

Upon approval of the contract and before the cyclical revaluation begins, Contractor shall provide to the
DRA and the municipal assessing officials, a list of the DRA-certified personnel assigned to work under the
contract.

Contractor shall ensure that the DRA-certified assessor supervisor is proficient in the use and calibration of
the CAMA system that will be used to assess the property specified in Section 2.2.

Contractor shall ensure that the individual(s) assigned to perform data entry are proficient in the use of
Municipality’s CAMA system.

Contractor shall ensure that the DRA-certified assessor supervisor will be present for all analysis and table
structure in the CAMA system throughout the duration of the project.

Public Relations

2.5.1

Contractor and the municipal assessing officials, during the progress of the work, shall each use their best
efforts to promote full cooperation and amiable relations with taxpayers. All publicity and news releases
shall be approved by the municipal assessing officials before being released to the news media. The
Contractor, upon request of the municipal assessing officials, shall provide assistance in conjunction with
the municipal assessing officials to acquaint the public with the mechanics and purpose of the cyclical
revaluation.

Confidentiality

2.6.1

Contractor, municipal assessing officials or municipal employees shall not disclose any preliminary 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.

Compensation and Terms

2.7.1

Municipality, in consideration of the services hereunder to be performed by Contractor, agrees to pay
Contractor the sum total of $ 1.125.000 pursuant to the terms of the agreement as defined in Section 3.
Payment shall be dispersed as follows:

27,2

2.7.3

2.7.4

2.7.5

2.7.6

YearofWork % or#of Parcels Type of Work Annual Payment

2020 37% Measure/List $415,000
2021 32% Measure/List $365,000
2022 31% Measure/List & Cyclical Revaluation $345,000

The amount or terms of compensation to be paid by Municipality for assessing services to support and
defend assessments that are appealed to the BTLA or superior court, if not included in Section 3 of the
agreement, quoted on a hourly or daily basis plus expenses is: $125 hourly / $1,000per day.

The itemized cost for the appraisal of special use or utility property(s) if not included in 2.7.1 is/are listed
below:

Not applicable to this contract.

Manner and time of payment: An initial payment of $50,000 will be paid within 14 calendar days of this
contract being approved by the DRA and signed by both parties. For remaining payments in 2020, 2021,
and 2022, Municipality will pay Contractor in monthly installments as follows: each month, starting
February 2020, Municipality will pay (1/11" for 2020), ( 1/12" for 2021) and (1/8" for 2022) of the annual
payment for that year to Contractor by the last day of the month. All payments are subject to the required
retainage.

A 10% retainage shall be withheld from Contractor until:

(1) The municipal assessing officials have determined that all of the terms of the contract have been
satisfied; and,

(2) The DRA has completed its final monitoring report.

Except as provided in Sections 2.7.2, 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 CONTRACTOR

3.1 Collection of Property Data

3.1]

3.1.2

All 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.

Every 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; replaces; heating &
cooling systems; plumbing; story height; number of bathrooms; number of bedrooms; and, other features,
attributes, or factors that might affect market vaiue.

Contractor shall make an attempt to inspect the property, and if the attempt is unsuccessful, Contractor
shall:

(1) Make a note with the date of the visit to the property;

(2) Leave a notification card at the property requesting that the property owner call the Contractor’s
designee, within a stated time frame as agreed upon by the municipal assessing officials and
Contractor, to arrange for an interior inspection; or,

(3) Send a letter to the property owner requesting that the property owner call the Contractor’s
designee, within a stated time frame as agreed upon by the municipal assessing officials and

3.2

3.1.3.1 | Contractor will provide opportunity for evening and weekend inspections.
3.1.4 The municipal assessing officials, when notified by Contractor pursuant to 3.1.3:

(1) May attempt to make arrangement with the owner or occupant for an interior inspection of the
property; and,

(2) Shall notify the contractor within 10 working days of whether mspection arrangements were made.

3.1.5 Ifthe contractor or 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,

Contractor shall:

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

(2) Annotate the property record card accordingly.

3.1.6 Contractor shall complete interior inspection of all properties except:

(1) Vacant or unoccupied structures;

(2) Where multiple attempts for inspection have been made (initial inspection and notification letter),
without success and the owner or occupant has not responded to Contractor or the municipal assessing
officials’ notifications;

(3) Where postings prevent access;

(4) Unsafe structures;

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

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

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

3.1.7 Contractor shall provide to Municipality a complete copy of the: field data collection card(s}; worksheet(s);
and, other document(s) used in the valuation process.

3.1.8 Contractor shall provide monthly progress reports indicating the percentage of completion of the full
revaluation to the municipal assessing officials and the DRA.

Property Record Cards

3.2.1 Contractor shall prepare an individual property record card, for each separate parcel of property in

Contractor, to arrange for an interior inspection; and,

(4) Notify the municipal assessing officials that the property was not accessed and that the Contractor
has not been contacted by the property owner or occupant within the prescribed time frame.

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:

The land value;

The number of acres of the parcel;

The land classification;

The adjustments made to land values;

The value of the improvements on the land;

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The accurate description of all improvements whether affecting market value or not;