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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;

g. The improvement pricing details; and,
h. The allowances 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:

Property inspection date;

Individual’s identification number or initials associated with the inspection,
The extent of the inspection;

Reason for the inspection; and,

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Any value adjustmentts).

3.3 Market Analysis

3,3.]

3.3.2

3.3.3

3.3.4

A DRA-certified property assessor supervisor shall conduct the market analysis.

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.

The municipal assessing officials shall provide to Contractor a copy of all property transfers for a minimum
of two (2) years immediately preceding the effective date of the revaluation.

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

(1) A review of all property transfers provided by the municipal assessing officials to Contractor;

(2) 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 lot number;
b. The disqualification code;
c. The date of sale; and,
. The sale price.

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(3) Acompilation of all qualified property transfers into a sales list with appropriate notations for those
sales used in the analysis accompanied by:

The parcel map and lot number;

The date of sale;

The sale price;

The newly established value;

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

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A photograph of the principal improvements attached thereto;

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(4} 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 iand valuation methodologies shall be used to assist in the determination of land unit
values;

(5) The Indicated land values shall be documented as:
Site;
Front or square foot;

Front acre;
Rear acre units; and/or,

ease sf

Other appropriate units of comparison;
(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.

3.3.5 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.
3.3.6 Contractor 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 field review of the
entire Municipality to:

(1) Ensure that all properties are valued at their highest and best use; and,
(2) Identify and correct: ary mechanical errors; inconsistencies, unusual features or value influencing

factors.

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

3.4 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:
3.4.2 Cost Approach:

(1) The cost approach, when utilized, shall be implemented by calibrating and applying land valuation
tables, building valuation tables 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

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calculated preliminary land value to the sale properties to ensure accuracy before the land valuation
tables and unit costs are implemented;

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; front acre; rear acre; and, other
appropriate units of comparison;

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

Document the calibration of land tables and models.

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

a.

b.

d.

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

Document the testing of Contractor’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;

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 in 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.

Document the calibration of all building cost tables and models.

3.4.3. 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, commercial,
industrial and any other special use property;

Describe property specific characteristics;

c, Document statistical testing for the income valuation models to known sales of similar properties;

d. Create valuation models consisting of market data based upon:

e&.

{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.

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:

a.

b.

Contractor 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;

c. 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;

e, Document final value reconciliation; and,

f.

Document calibration of all sales comparison tables and models.

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

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