Search

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

4.3

4.4

4.5

4.6

4.7

transfer information; a set of current tax maps; zoning maps; plans; building
permits; subdivisions; boundary line adjustments and mergers; and, other
information as specified by Company for the services being provided.

The municipal assessing officials shall keep Company informed of all sales of
property that occur during the progress of the revaluation.

The municipal assessing officials shall make corrections to tax maps as of April 1,
2018 where lots have been subdivided, or apportioned, and notify Company of all
ownership and name and address changes.

If requested, suitable office space and equipment, as specified by Company, for the
use of Company’s personnel in the performance of the appraisal work shall be
provided.

The municipal assessing officials shall provide a terminal within the Assessor’s office for
remote access to the City’s CAMA System. This access shall remain until a compliant
USPAP Manual is delivered to the City and DRA.

The Municipality shall be responsible for all costs and time associated with all mailings
relating to the informal hearing process.

INDEMNIFICATIONS AND INSURANCE

5.1

5.2

5.3

Regardless of any coverage provided by any insurance, Company agrees to indemnify
and shall defend and hold harmless Municipality, its agents, officials, employees and
authorized representatives and their employees from and against any and all suits,
causes of action, legal or administrative proceedings, arbitrations, claims, demands,
damages, liabilities, interest, attorney’s fees, costs and expenses of any kind or
nature in any manner caused, occasioned, or contributed to in whole or in part by
reason of any negligent act, omission, or fault or willful misconduct, whether active
or passive, of Company or of anyone acting under its direction or control or on its
behalf in connection with or incidental to the performance of this contract.
Company’s indemnity, defense and hold harmless obligations, or portions thereof,
shall not apply to liability caused by the sole negligence or willful misconduct of the
party indemnified or held harmless.

Company shall not be responsible for consequential or compensatory damages
arising from the late performance or non-performance of the agreement caused by
circumstances, which are beyond Company's reasonable control.

Company shall maintain commercial general liability insurance, professional liability
insurance, automobile liability insurance and workmen's compensation insurance.
Company shall maintain in effect at all times during the performance under this
contract all specified insurance coverage with insurers. None of the requirements as
to types and limits to be maintained by Company are intended to and shall not in

18 City of Nashua, NH
Full Statistical Revaluation Contract

General Terms and. Conditions

DEFINITIONS Unless otherwise required by the context, "Professional Engineer”, and _ its
successors, transferees and assignees (together “Professional Engineer”) includes any of the
Professional Engineer's consultants, sub consultants, contractors, and subcontractors

PROFESSIONAL ENGINEER STATUS The parties agree that Professional Engineer shall have the
status of and shall perform all work under this contract as a Professional Engineer, maintaining
control over all its consultants, sub consultants, contractors, or subcontractors. The only contractual
relationship created by this contract is between the City of Nashua and Professional Engineer, and
nothing in this contract shall create any contractual relationship between the City of Nashua and
Professional Engineer's consultants, sub consultants, contractors, or subcontractors. The parties
also agree that Professional Engineer is not a City of Nashua employee and that there shall be no:

(1) Withholding of income taxes by the City of Nashua:

(2) Industrial insurance coverage provided by the City of Nashua;

(3) Participation in group insurance plans which may be available to employees of the
City of Nashua;

(4) Participation or contributions by either the Professional Engineer or the City of
Nashua to the public employee’s retirement system;

{5) Accumulation of vacation leave or sick leave provided by the City of Nashua;

(6) Unemployment compensation coverage provided by the City of Nashua.

STANDARD OF CARE Professional Engineer shall be responsible for the professional quality,
technical accuracy, timely completion, and coordination of all work performed under this contract.
Professional Engineer warrants that all work shall be performed with the degree of professional
skill, care, diligence, and sound practices and judgment that are normally exercised by recognized
professional firms with respect to services of a similar nature. It shall be the duty of Professional
Engineer to assure at its own expense that all work is technically sound and in conformance with
all applicable federal, state, and local laws, statutes, regulations, ordinances, orders, or other
requirements. In addition to all other rights which the City of Nashua may have, Professional
Engineer shall, at its own expense and without additional compensation, re-perform work to correct
or revise any defictencies, omissions, or errors in the work or the product of the work or which
result from Professional Engineer’s failure to perform in accordance with this standard of care. Any
approval by the City of Nashua of any products or services furnished or used by Professional
Engineer shall not in any way relieve Professional Engineer of the responsibility for professional
and technical accuracy and adequacy of its work. City of Nashua review, approval, or acceptance
of, or payment for any of Professional Engineer's work under this contract shall not operate as a
waiver of any of the City of Nashua's rights or causes of action under this contract, and Professional
Engineer shall be and remain liable in accordance with the terms of the contract and applicable law.

Professtonal Engineer shall furnish competent and skilled personnel to perform the work under this
contract. The City of Nashua reserves the right to approve key personnel assigned by Professional
Engineer to perform work under this contract. Approved key personnel shall not be taken off of
the project by Professional Engineer without the prior written approval of the City of Nashua,
except in the event of termination of employment. Professional Engineer shall, if requested to do
so by the City of Nashua. remove from the job any personnel whom the City of Nashua determines
to be incompetent, dishonest, or uncooperative.

CITY OF NASHUA REPRESENTATIVE The City of Nashua may designate a City of Nashua
representative for this contract. If designated, all notices, project materials, requests by

GC2of 11

5.4

5.5

any manner limit or qualify the liabilities and obligations assumed by Company

under this contract. Municipality shall not maintain any insurance on behalf of

Company. Subcontractors are subject to the same insurance requirements as

Company and it shall be the Company’s responsibility to ensure compliance of this

requirement.

5.3.1 Commercial general liability insurance with the inclusion of contractual
liability and errors and omissions coverage and shall provide limits of
$1,000,000 each person and $1,000,000 each occurrence for bodily injury
liability, and $1,000,000 each occurrence for property damage liability; and,

5.3.2. The automobile liability insurance shall be in the form of comprehensive
automobile liability and shall provide limits of $1,000,000 each person and
$1,000,000 each occurrence for bodily injury liability; and,

5.3.3 Workers’ Compensation coverage in compliance with the State of New
Hampshire Statutes, $100,000/$500,000/$100,000 and,

The parties agree that Company shall have the status of and shall perform all work
under this contract as an independent contractor, maintaining control over all its
consultants, sub consultants, contractors, or subcontractors. The only contractual
relationship created by this contract is between Municipality and Company, and
nothing in this contract shall create any contractual relationship between
Municipality and Company’s consultants, sub consultants, contractors, or
subcontractors. The parties also agree that Company is not a Municipal employee
and that there shall be no:

(1) Withholding of income taxes by the Municipality:

(2) Industrial insurance coverage provided by the Municipality;

(3) Participation in group insurance plans which may be available to employees of
the Municipality;

(4) Participation or contributions by either the independent contractor or the
Municipality to the public employee’s retirement system;

(5) Accumulation of vacation leave or sick leave provided by the Municipality;

(6) Unemployment compensation coverage provided by the Municipality.

General Liability, Employers’ Liability and Auto Liability policies must name the City
of Nashua as an additional insured and reflect on the certificate of insurance.
Company is responsible for filing updated certificates of insurance with the City of
Nashua's Risk Management Department during the life of the contract.

(1) All deductibles and self-insured retentions shall be fully disclosed in the
certificate(s) of insurance.

(2) If aggregate limits of less than $2,000,000 are imposed on bodily injury and
property damage, Company must maintain umbrella liability insurance of at
least $1,000,000. All aggregates must be fully disclosed on the required
certificate of insurance.

19 City of Nashua, NH
Full Statistical Revaluation Contract