City and County of San Francisco

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1 City and County of San Francisco Offices of the Controller and Treasurer and Tax Collector REQUEST FOR PROPOSALS FOR RFP #TTX CONTACT: Nikhila Pai, (415) Background San Francisco is the fourth largest city in California and serves as a center for business, commerce and culture for the West Coast. The City and County of San Francisco (the City ) established by Charter in 1850, is a legal subdivision of the State of California with the governmental powers of both a city and a county under California law. The City s powers are exercised through a Board of Supervisors serving as the legislative authority, and a Mayor and other independent elected officials serving as the executive authority. The City s Offices of the Controller and the Treasurer and Tax Collector are responsible for administering property tax pursuant to state law. The City has recognized the need to procure new software to support the property tax processes executed by these Offices. At a high level, the area of responsibilities for these Offices are: applying the appropriate tax rates, calculating the total tax amount, printing and mailing out the property tax bills, collecting property tax payments and delinquent taxes, conducting the sale of tax defaulted properties, and apportioning and distributing the property taxes that are collected. The City s current central Property Tax System is CICSP and is the basis for all official property taxation and billing. CICSP is a COBOL, file based mainframe system that has been custom developed over 20+ years to meet the City s legal needs for property tax. The City is looking for more robust tools to support its property tax business needs. The purpose of this request for proposal (RFP) is to select a new system and Proposer to provide a property Tax Solution that supports the needs of the City s property tax functions including all services related to the managed configuration, implementation, and ongoing support of the Solution. Intent of this RFP The City intends to award one or more contracts for the products and services outlined below. Software, Professional Services, Maintenance and Hosting Services Sought The Offices of the Treaurer and Tax Collector seek qualified proposals to provide the following products and services: 1. Software 2. Professional Services a. Project Initiation and Planning b. System, Interface and Data Conversion Design c. System Development / Configuration d. System Testing e. Project Training f. Deployment g. Implementation Closeout 3. Ongoing Maintenance and Operations 4. Hosting Relationship/On Premisis Set-Up It is imperative that the proposed system be compatible and integrated with the Ciity s Assessor s system that is currently in procurment RFP# ASR Willingness to Work with a Designated Quality Assurance (QA) / Independent Verification and Validation (IV&V) Vendor Quality Assurance (QA) Validation is the process of examining the complete program/project to determine whether all stakeholders requirements have been met. It uses iterative processes throughout the overall Project and SDLC to determine whether the plans, methods, and products delivered are internally complete, consistent, and sufficiently correct. QA is performed by an organization that is technically, managerially, and financially independent of the Proposer organization. The Offices may contract for QA services to support the success of the project. By providing a response to this RFP, the Proposer acknowledges their willingness to work collaboratively with any QA service provider under contract with the City. RFP# TTX Page 1 of 27

2 Anticipated Contract Term Contract terms cannot exceed 10 years. The anticipated term for this contract will begin at 5 years with options to extend at the City s sole and absolute discretion. Subcontracting Requirement The S.F. Administrative Code Chapter 14B Local Business Enterprise (LBE) subcontracting goal for this RFP is four percent (4%) of the total value of the goods and/or services procured. In order to be responsive, Proposers must meet the LBE goal. Other Procurement Considerations including Fixed Bid Price The City will only accept fixed bid proposals for the software, professional services, ongoing maintenance and operations, and hosting. Payment from the effective date through the end of the warranty period will be deliverable based. Acceptance of deliverables will be determined based on user functionality implemented into the production environment. Contractors Unable to do Business with the City Contractors that do not comply with laws set forth in San Francisco s Municipal Codes may be unable to enter into a contract with the City. Some of the laws are included in this RFP, or in the sample terms and conditions attached. Companies Headquartered in the Certain States This Contract is subject to the requirements of Administrative Code Chapter 12X, which prohibits the City from entering into contracts with companies headquartered in states with laws that perpetuate discrimination against LGBT populations or where any or all of the work on the contract will be performed in any of those states. Proposers are hereby advised that Proposers which have their United States headquarters in a state on the Covered State List, as that term is defined in Administrative Code Section 12X.3, or where any or all of the work on the contract will be performed in a state on the Covered State List may not enter into contracts with the City. A list of states on the Covered State List is available at the website of the City Administrator. Proposers must be prepared to commence onsite 30 days from the Controller s Office certification of funds and go-live within a negotiated timeframe after which liquidated damages may apply. Schedule* RFP issued Oct. 27, 2017 Deadline for Final RFP questions Answers to RFP questions posted online 3:00 pm, Nov. 17, 2017 Week of Nov. 27, 2017 Letter of Intent to Bid 3:00 pm, Dec. 8, 2017 Deadline for Proposals 3:00 pm, Dec. 22, 2017 Stage 1 Scores Notification Jan. 29, 2018 City-Response Team Communications your RFP questions, your letter of intent, and any other communication to Nikhila Pai, Nikhila.Pai@sfgov.org. Proposers are specifically directed NOT to contact any other employees or officials of the City. Unauthorized contact may be cause for rejection of Proposals at the City s sole and absolute discretion. A summary of the substantive information and all questions and answers pertaining to this RFP will be posted on the Office of Contract Administration website at Proof of Concept Demonstrations Feb , 2017 Stage 2 Scores Notification Mar. 2, 2018 Stage 3 Selection Interviews Mar 12-16, 2018 Contract negotiations begin March 2018 *RFP Schedule subject to change. Office of Treasurer and Tax Collector City Hall, Room Dr. Carlton B. Goodlett Place San Francisco, CA RFP# TTX Page 2 of 27

3 Proposal Templates and Attachments Requirement Proposal, including each of the following: Description One (1) copy of Letter of Intent to Bid with Signatures (Template J) One (1) complete original copy of Submission Coversheet with signatures One (1) set of CMD Forms bound separately. Ten (10) complete hard copies of Proposal, single sided One USB flash drive containing Proposer s entire Proposal including CMD forms. The electronic files must be clearly labeled with the Proposer s name. All files must be submitted in unprotected PDF, Word or Excel format. CMD Attachment 2 Coversheet CMD Compliance Forms Required for Proposal Submission CMD Attachment 2 - Requirements for Architecture, Engineering, & Professional Services Contracts ( Submission Coversheet w/ Acknowledgement of RFP Terms & Conditions Response Templates Template A Template B Template C Template D Template E Template F Template G Template H Template I Template J Attachment A Attachment B Attachment C Attachment D Attachment E Attachment F Attachment G Attachment H Minimum Qualifications Response Template Proposer Experience Response Template Functional Approach Response Template Requirements Response Matrices Technical Approach Response Template Project Approach Response Template Joint System Integration Plan Response Template Maintenance & Operations Approach Response Template Cost Workbook Submission Coversheet with Certification of Headquarters in Accordance with Administrative Code Chapter 12X. Informational Attachments Overview of San Francisco Property Tax Controller Process Flows Controller Use Cases Treasurer and Tax Collector Use Cases Joint System Integration Plan Professional Services Sample Template (P-600) SaaS Sample Template (P-648) Glossary of Terms RFP# TTX Page 3 of 27

4 Table of Contents 1 INTRODUCTION GLOSSARY OF TERMS USED IN THE RFP CITY/DEPARTMENT OVERVIEW CALIFORNIA PROPERTY ASSESSMENT AND TAX LANDSCAPE BACKGROUND ISSUES WITH CURRENT ENVIRONMENT CITY BUSINESS GOALS DEPARTMENT SOLUTION GOALS SCOPE OF WORK SERVICES SOUGHT EVALUATION CRITERIA EVALUATION MINIMUM QUALIFICATIONS AND CMD COMPLIANCE EVALUATION INTENT TO AWARD AND CONTRACT NEGOTIATIONS; OTHER TERMS AND CONDITIONS PROPOSER RESPONSE INFORMATION LETTER OF INTENT INITIAL SCREENING MANDATORY RESPONSE TEMPLATES AND PROPOSAL FORMATTING REQUIREMENTS SUBMISSION OF PROPOSALS REFERENCES SIGNIFICANT RFP DUE DATES RFP SCHEDULE TERMS AND CONDITIONS FOR RECEIPT OF PROPOSALS ERRORS AND OMISSIONS IN RFP OBJECTIONS TO RFP TERMS CHANGE NOTICES TERM OF PROPOSAL ERRORS AND OMISSIONS IN PROPOSAL FINANCIAL RESPONSIBILITY PROPOSER S OBLIGATIONS UNDER THE CAMPAIGN REFORM ORDINANCE SUNSHINE ORDINANCE (PUBLIC RECORDS) PUBLIC ACCESS TO MEETINGS AND RECORDS (NON-PROFITS) RESERVATIONS OF RIGHTS BY THE CITY NO WAIVER LOCAL BUSINESS ENTERPRISE GOALS AND OUTREACH CONTRACT REQUIREMENTS STANDARD CONTRACT PROVISIONS NONDISCRIMINATION IN CONTRACTS AND BENEFITS MINIMUM COMPENSATION ORDINANCE (MCO) HEALTH CARE ACCOUNTABILITY ORDINANCE (HCAO) FIRST SOURCE HIRING PROGRAM (FSHP) CONFLICTS OF INTEREST...26 RFP# TTX Page 4 of 27

5 8 PROTEST PROCEDURES PROTEST OF MINIMUM QUALIFICATIONS AND CONTRACT MONITORING DIVISION REQUIREMENTS (NONRESPONSIVE) DETERMINATION PROTEST OF NON-RESPONSIBLE DETERMINATION PROTEST OF NOTICE OF INTENT TO AWARD DELIVERY OF PROTESTS BY NO LATER THAN 5 PM (PT) ON THE DUE DATE...27 RFP# TTX Page 5 of 27

6 1 Introduction 1.1 Glossary of Terms Used in the RFP See Attachment H for a list of terms used in this RFP. 1.2 City/Department Overview The City s Offices of the Assessor-Recorder, Controller, and Treasurer and Tax Collector are responsible for administering property assessment and taxation pursuant to state law. These offices are led by the elected Assessor-Recorder, appointed Controller, and elected Treasurer, respectively. Of the estimated $2.5 billion in 2016 property tax revenue, 64% is allocated to City services and 36% to schools and other public services, making property tax revenue a highly visible and critical source of City funding. The City has recognized the need to procure new software to support the property assessment and tax processes executed by its Offices. Through a joint governance process, the Assessor- Recorder, Controller, Treasurer and Tax Collector and their designees will choose the highest ranking Proposer to develop and implement this new software. At a high level, the areas of responsibility for each Office are: 1. The Office of the Assessor-Recorder is responsible for carrying out property tax related functions mandated by the State, including identifying property and ownership, assessing the value of property, approving and applying exemptions, and preparing the assessment roll. As a combined Assessor-Recorder office, it is also responsible for maintaining public recorded documents and levying transfer tax. 2. The Office of the Controller applies the appropriate tax rates, which include the general tax levy, locally voted special taxes, and any City or district direct assessments. After applying the tax rates, the Controller calculates the total tax amount. The Office of the Controller also apportions and distributes the property taxes that are collected. 3. The Office of the Treasurer and Tax Collector is responsible for printing and mailing out the property tax bills, collecting property tax payments and delinquent taxes, and conducting the sale of tax defaulted properties. The purpose of this Request for Proposals (RFP) is to solicit proposals for a system which will support the property tax processes executed by the Offices of the Controller and the Treasurer and Tax Collector. A separate RFP will be released in parallel to procure a solution to support the needs of the Office of the Assessor-Recorder. Both systems will be expected to interface with each other to support the City s property assessment and tax activities, and the selected Proposers of both RFPs will be responsible for ensuring the systems interface correctly. It is the City s intent to select the highest-ranking Proposer for contract negotiations that will provide the best overall solution to the City, inclusive of fee considerations. Any Proposer selected for contract negotiations is not guaranteed a contract. This RFP does not in any way limit the City s right to solicit Proposals for similar or identical services if, in the City s sole and absolute discretion, it determines the Proposals are inadequate to satisfy its requirements. RFP# TTX Page 6 of 27

7 1.3 California Property Assessment and Tax Landscape Like other local governments in the nation, the City taxes secured property (e.g. residential and commercial/industrial real estate) as well as unsecured property (corporate business property, vessels, airplanes). However, as in all California counties, the passage of Proposition 13, increased both the frequency of interaction between property tax related departments, as well as the complexity of billing and collecting taxes. Rather than bills issued annually solely based upon a single lien date of ownership (January 1 st ), additional taxable assessments may be issued and communicated when select events take place, resulting in multiple secured and/or unsecured supplemental bills. This event-based origination of tax bills and collections requires significantly heightened focus on each bill event and the management of issuing, collecting, and apportioning the resultant revenue. The cross-department effects of any corrections and appeals add additional complexity to the process. The heightened functional requirements of California s property tax regulations and processes both strengthen the need for quality technology to support operations, as well as increase the importance of finding a technology partner for San Francisco s property tax operations that can be relied upon to deliver a robust and quality technology product and accompanying professional services. For further information on the property tax cycle, please refer to Attachment A - Overview of San Francisco Property Tax. 1.4 Background The City s current central Property Tax System is CICSP for all official property taxation and billing. CICSP is a COBOL, file based mainframe system that has been custom developed over 20+ years to meet the City s property tax needs. The major functions of CICSP include account and records management, redemption management, payment plan creation and management, and bill generation functions. CICSP is supported by the Office of the Treasurer and Tax Collector and maintains the property tax records for the City. CICSP supports batch interfaces for certain property tax activities. Interfaces to and from CICSP include reception of the assessment rolls and associated information from the Office of the Assessor-Recorder (EZ Access), the City s Financial System (PeopleSoft), the Office of the Treasurer and Tax Collector s bill generation tool (Adobe AEM), the Bureau of Delinquent Revenue s system (CSS Impact! HD 2.0) and the City s cashiering system (WAUSAU Financial). CICSP also sends and receives files with a number of other vendors and sources, including the City s online payment vendor. Departmental processing systems and reporting environments also rely upon CICSP data to populate and update information for revenue forecasting, determination of the tax rate, tax apportionment and distribution, and other processes. Departments also use standalone systems, spreadsheets, and other tools to conduct, track, maintain, and report on various property tax functions not available in CICSP. They also use these systems and other tools to reconcile CICSP data. A comprehensive list of the City s inbound interfaces, outbound interfaces, and list of departmental systems is provided in Attachment E Joint System Integration Plan. RFP# TTX Page 7 of 27

8 The following tables present information about the City s current CICSP production environment: Table 1: Approximate number of Real Property based accounts by module Secured Unsecured Redemption Secured Escape Supplemental Supplemental 6, ,000 20,000 8,200 2,500 Table 2. Approximate number of Unsecured Personal Property Accounts Business Possessory Personal Marine Interest Property 25,000 1,700 2,500 Table 3: Amount collected by property type Unsecured Secured Personal Supplemental Escape Property $2.0B $140M $123M $138M More information regarding the City s property tax activities can be found by reviewing the City s Comprehensive Annual Financial Report (CAFR), available at the following website: Note: Numbers and values are approximate to provide a general understanding of the size and complexity of the operations of the City. 1.5 Issues with Current Environment The City is facing issues with its current property tax technical environment which has led to the need for a new system. These issues include: 1. The Mainframe is a legacy system that the City is attempting to phase out through various departmental replacement activities. As departments leave the shared Mainframe environment, the burden of funding will continue to increase on the remaining departments 2. Although the City is currently able to support its custom coded COBOL application, full, knowledgeable support will likely not continue past the near term 1.6 City Business Goals The selected will enable the City to meet its overall property assessment and tax business goals, including: 1. Improve efficiency and effectiveness of City Operations 2. Support and deliver high quality and consistent customer service seamlessly across all three-property assessment and tax departments RFP# TTX Page 8 of 27

9 3. Streamline processes, data, and information exchange between the property assessment and tax departments to meet annual property tax deadlines 1.7 Department Solution Goals The City has developed the follow goals for the : 1. Efficient Taxation: Facilitate the efficient and effective determination, collection, appropriation and distribution of property taxes 2. Revenue Forecasting: Facilitate view and use of historical statistics and current pending items to accurately forecast future revenue through timely access to high quality data and comprehensive reporting capabilities 3. Quality and Transparent Data: Facilitate data capture and review in an easy and logical manner, including efficient interfacing and automatic system checking for correctness and completeness before acceptance by authorized users into the system s data records; provide visibility into the underlying business calculations 4. Secure and Integrated Access: Provide authorized users with an integrated access to all modules, data, and services relevant to the user group; Allow system administrators to restrict data access and transaction execution based on user role 5. Configurable Business Rules: Provide a highly configurable and adaptable system that can adjust to specific and changing needs and is easy for business users to use and change 6. Scalable and Extensible: Provide a scalable system able to accommodate additional users and expanding capabilities to meet future business needs and local and State mandates RFP# TTX Page 9 of 27

10 2 Scope of Work 2.1 Services Sought This scope of work is not intended to be all inclusive of the work the City expects to be performed, and is not a complete listing of all services that may be required or desired. The City will negotiate the specific scope of services, budget, deliverables, and timeline with the Proposer selected for contract negotiations. There is no guarantee of a minimum amount of work or compensation for any Proposer(s) selected for contract negotiations. The City seeks qualified proposals to provide the following products and services: 1. A Property Tax System that meets the City s requirements (requirements can be found in Template D Requirements Response Matrices) 2. A Property Tax System that meets the City s core functional business processes (please refer to Attachment D - Treasurer and Tax Collector Use Cases, Attachment C - Controller Use Cases, and Attachment B - Controller Process Flows) and provides an intuitive user interface to streamline workflow 3. Design, development/configuration, and implementation support services 4. Project and program management in support of an agile and iterative implementation process 5. Interface development and integration with the other required City systems 6. Data conversion and migration of existing systems, including three rounds of data migration and testing of use cases against production quality data sets 7. Post-implementation Software Maintenance and Operations Support service The City is seeking a COTS (Commercial Off the Shelf) system offering and has a strong preference for minimizing the level of required customization during the implementation of this solution. The City is willing to consider a variety of hosting service delivery models. Proposed Solutions may include but are not limited to any of the following components: A. On-premise The Property Tax System is hosted at a City data center. B. Hosted The Property Tax System is provided by the Proposer, but proposed to be hosted by a third-party vendor in a third-party data center. C. Software as a Service (SaaS) The Property Tax System is provided and hosted by the Proposer, who provides one or more services to the City based on a per-term contract. RFP# TTX Page 10 of 27

11 Any combination of the above system offering types and hosting models will be considered. If a proposed system is compatible with multiple hosting service delivery models, the Proposer should include only one recommended hosting service delivery model in their proposal. RFP# TTX Page 11 of 27

12 3 Evaluation Criteria 3.1 Evaluation The proposals will be evaluated by a Selection Committee comprised of executive leadership, and individuals with experience in property tax and/or software implementation, maintenance and hosting. The Selection Committee will be responsible for the evaluation and scoring of the Proposals and Proposer Demonstrations, and for conducting any interviews. The City intends to evaluate the proposals generally in accordance with the criteria itemized below. Qualified firms will be invited to demonstrate their proposed system and present further detail regarding their proposed solution to the Selection Committee. The evaluation will be conducted in stages for the Proposers that demonstrate they meet the Minimum Qualification requirements outlined in Section 3.2. The Selection Committee will evaluate written responses provided in Templates B through I for Stage 1 Proposer Experience and Written Proposal Evaluation Criteria. All Proposers in Stage 1 will then be invited to participate in Stage 2 Proof of Concept Proposer Demonstration. The two highest scoring Proposers from Stages 1 and 2 will be invited to participate in Stage 3 Proposer Selection Interviews. At any time during the RFP evaluation process the City may request clarification from one or all Proposers regarding any portion of each or all responses for which the City deems additional information is necessary. The City will finalize its evaluation of each proposal based on the evaluation criteria. The highest scoring Proposer after Stage 3 will be invited to enter contract negotiations with the City. If mutually agreed upon contract terms cannot be negotiated with the selected Proposer, then the City, in its sole and absolute discretion, may terminate negotiations and begin contract negotiations with the next highest scoring Proposer. 3.2 Minimum Qualifications and CMD Compliance The Proposer must meet the following Minimum Qualifications to be considered in the evaluation. City staff will evaluate the Minimum Qualifications. Any Proposal that does not demonstrate that the Proposer meets the Minimum Qualifications listed in this section at the time of Proposal submission, will be considered nonresponsive and will not be evaluated or eligible for award of any subsequent contract(s) for the requested system or services. The Proposer should provide their response in Template A - Minimum Qualifications Response Template. NOTE: For all Proposers that meet the Minimum Qualifications, the Contract Monitoring Division will verify that the Proposer meets the requirements of the Local Business Enterprise and Non- Discrimination in Contracting Ordinance set forth in Chapter 14B of the San Francisco Administrative Code. See Section 6.14 Local Business Enterprise Goals and Outreach. RFP# TTX Page 12 of 27

13 The City has established the following Minimum Qualifications for any Proposer: Organization and Stability 1. The Proposer has been in business continuously for the past five (5) years, and during this period provided software products and services. 2. The Proposer has audited financials for the past three (3) years that indicate annual revenues of at least $20 million and at least twenty (20) permanent and full-time employees for 2016 Professional Services and Software Experience 3. The Proposer shall submit a minimum of three (3) and a maximum of five (5) U.S. based references from the last five years all similar in size, complexity, and scope as defined as a minimum of 250,000 property and/or account records processed simultaneously. The number of references submitted will not affect the City s evaluation. a. At least one (1) reference must verify the Proposer implemented data migration and conversion services b. At least one (1) reference must verify the Proposer implemented a property tax/revenue system with at least one complete module of functionality in a production environment c. At least one (1) reference must verify the Proposer implemented the Proposer s software product in production for two (2) full fiscal year cycles d. At least one (1) reference must be public-sector Proposals should clearly demonstrate that the qualifications are met. Insufficient or incomplete information may result in a proposal being considered nonresponsive and may not be eligible for award of the contract. If required information is complete, but the City determines that the Proposer does not meet Minimum Qualifications, the Proposer will be deemed nonresponsive. 3.3 Evaluation Stage 1 Proposer Experience and Written Proposal Evaluation Criteria (135 Points) Proposers responses will be evaluated in accordance with the criteria below: 1. Proposer Company and Staff Experience (10 Points) The Proposer is required to provide information regarding the company, including basic background and employee resumes, as well as information regarding key staff and Project organization being proposed. a. Template B Proposer Experience Response Template initially outlined in Template A - Minimum Qualifications Response Template 2. Business Functionality (45 points) The Proposer is required to respond to each set of Functional Requirements, and to describe its overall approach. Sub-criteria include: a. Template C - Functional Approach Response Template (40 Points) RFP# TTX Page 13 of 27

14 b. Template D - Requirements Response Matrices (5 Points) 3. Technical Functionality (20 points) The Proposer is required to respond to Technical Requirements, and to describe its overall approach. a. Template E - Technical Approach Response Template 4. Implementation (35 points) The Proposer is required to describe their overall implementation approach. Sub-criteria include: a. Template F Project Approach Response Template (25 Points) b. Template G Joint System Integration Plan Response Template (10 Points) 5. Maintenance and Operations (10 points) Proposers are required to respond to Maintenance and Operations requirements, and to describe their overall approach. a. Template H Maintenance & Operations Approach Response Template 6. Cost (15 points) Complete Template I The Proposer is required to complete the Cost Workbook. a. Template I - Cost Workbook Stage 2 Proposer Proof of Concept Demonstration (100 Points) After reviewing the Stage 1 written proposals, the Selection Committee will begin Stage 2 by scheduling an on-site visit for each Proposer to conduct a software Proof of Concept live demonstration. Scores from Stage 1 and Stage 2 will be totaled to create a composite score. 1. Demonstrations (100 Points) The City will require all Proposers meeting the Minimum Qualifications to demonstrate their proposed system and participate in the Proposer Demonstration and Selection Process. The City will provide each Proposer with identical demonstration script(s) and data set(s). The demonstration for each Proposer will take place over one (1) or two (2) days as requested by the City. Proposers that cannot participate during the dates prescribed by the City may be eliminated from further consideration. The two highest scoring Proposers will proceed to Stage 3 (interviews). Stage 3 Proposer Selection Interviews (50 points) 1. Interviews (50 points) After the conclusion of Stage 2, the City will invite the two highest scoring Proposers to participate in Selection Interviews. Instructions for the Interviews will be provided in advance. Scores from Stages 1, 2, and 3 will be totaled to create a final composite score. The highest scoring Proposer will be invited to enter contract negotiations with the City. RFP# TTX Page 14 of 27

15 3.4 Intent to Award and Contract Negotiations; Other Terms and Conditions The successful Proposer will be required to enter into a contract substantially in the form of the Agreement for Professional Services, attached hereto as Attachment F - Professional Services Sample Template (Form P-600), or Attachment G SaaS Sample Template (Form P-648). If mutually agreed upon contract terms cannot be negotiated with the selected Proposer, then the City, acting in its sole discretion, may proceed with the next highest scoring Proposer. The selection of any Proposer for contract negotiations shall not imply acceptance by the City of all terms of the proposal, which may be subject to further negotiation and approvals. RFP# TTX Page 15 of 27

16 4 Proposer Response Information This section provides Proposers with information that must be included in the proposal. 4.1 Letter of Intent A formal letter of intent to bid is due before the Proposal due date. The timely submission of a letter of intent to bid is a mandatory prerequisite to the submission of a Proposal. The letter of intent must state the Proposer s intent to submit a bid, and must identify the Proposer s name and all subcontractors, if known. LBE subcontractors need not be identified. Exceptions to the letter of intent requirement may be made at the City s sole discretion. 4.2 Initial Screening City staff will review each Proposal for an initial determination of responsiveness in an initial screening process. Elements reviewed during the initial screening include, without limitation: Proposal completeness, compliance with Minimum Qualification requirements and compliance with LBE requirements. Proposals will not be scored during the initial screening process. Initial screening is simply a pass/fail determination as to whether a Proposal meets the threshold requirements described above. A Proposal that fails to meet these requirements will be deemed nonresponsive. The City reserves the right to request clarification from Proposers prior to rejecting a Proposal for failure to meet the initial screening requirements. Clarifications are limited exchanges between the City and a Proposer for clearing up certain aspects of the Proposal, and will not provide a Proposer the opportunity to revise or modify its Proposal. Proposals that meet the initial screening requirements shall proceed to the evaluation process. 4.3 Mandatory Response Templates and Proposal Formatting Requirements The Proposer must submit their response utilizing the provided Mandatory Response Templates. The templates are downloadable Microsoft Word documents and Excel spreadsheets. Responses to individual questions within each response template should be concise. All parts, pages, figures, and tables should be numbered and clearly labeled with references to the appropriate template and question. Proposals must include a Table of Contents. Proposals must be places in three-ring binders and tabbed for ease of review by the Selection Committee. Proposers must follow the instructions outlined and shall organize their proposal in the order outlined in the list of Proposal templates and attachments found at the beginning of this document. Each proposal must be clearly marked RFP# TTX Property Tax System Professional Services. RFP# TTX Page 16 of 27

17 4.4 Submission of Proposals Proposals must be submitted by the date and time provided in the RFP schedule to: Attn: Nikhila Pai Office of the Treasurer and Tax Collector City Hall, Room Dr. Carlton B. Goodlett Place San Francisco, CA Note: Late submissions will not be considered. There will be no exceptions to this requirement. 4.5 References The City may conduct reference checks of the information submitted in Template A - Minimum Qualifications Response Template and/or Template B - Proposer Experience Response Template. RFP# TTX Page 17 of 27

18 5 Significant RFP Due Dates 5.1 RFP Schedule RFP Schedule* RFP issued Oct. 27, 2017 Deadline for Final RFP questions Nov. 17, 2017 Answers to RFP questions posted online Nov. 27, 2017 Deadline for Letter of Intent to Bid Dec. 8, 2017 Deadline for Proposals Dec. 22, 2017 Stage 1 Scores Notification Jan. 29, 2018 Proof of Concept Demonstrations Feb , 2018 Stage 2 Scores Notification Mar. 2, 2018 Stage 3 Selection Interviews Mar , 2018 Contract Negotiations March 2018 * RFP Schedule subject to change. For the latest information pertaining to this RFP and the schedule, Check out the bids and contracts database: RFP# TTX Page 18 of 27

19 6 Terms and Conditions for Receipt of Proposals 6.1 Errors and Omissions in RFP Proposers are responsible for reviewing all portions of this RFP. Proposers are to promptly notify the City, in writing, if the Proposer discovers any ambiguity, discrepancy, omission, or other error in the RFP. Any such notification should be directed to the City promptly after discovery, but in no event later than 5 working days prior to the date that proposals are due. Modifications and clarifications will be made by addenda as provided below. 6.2 Objections to RFP Terms Should a Proposer object on any ground to any provision or legal requirement set forth in this RFP, the Proposer must, not less than 5 working days prior to the RFP deadline, provide written notice to the City setting forth with specificity the grounds for the objection. The failure of a Proposer to object in the manner set forth in this paragraph shall constitute a complete and irrevocable waiver of any such objection. 6.3 Change Notices The City may modify the RFP, prior to the proposal due date, by issuing an Addendum to the RFP, which will be posted on the website. The Proposer shall be responsible for ensuring that its proposal reflects any and all Bid Addendum(s) issued by the City prior to the proposal due date regardless of when the proposal is submitted. Therefore, the City recommends that the Proposer consult the website frequently, including shortly before the proposal due date, to determine if the Proposer has downloaded all Bid Addendum(s). It is the responsibility of the Proposer to check for any Addendum, Questions and Answers, and updates, which will be posted on the City s PeopleSoft bidding system at Term of Proposal Submission of a proposal signifies that the proposed services and prices are valid for 360 calendar days from the proposal due date and that the quoted prices are genuine and not the result of collusion or any other anti-competitive activity. At Proposer s election, the proposal may remain valid beyond the 360 day period in the circumstance of extended negotiations. 6.5 Errors and Omissions in Proposal Failure by the City to object to an error, omission, or deviation in the proposal will in no way modify the RFP or excuse the Proposer from full compliance with the specifications of the RFP or any contract awarded pursuant to the RFP. 6.6 Financial Responsibility The City accepts no financial responsibility for any costs incurred by a firm in responding to this RFP. RFP# TTX Page 19 of 27

20 6.7 Proposer s Obligations under the Campaign Reform Ordinance Proposers must comply with Section of the S.F. Campaign and Governmental Conduct Code, which states: No person who contracts with the City and County of San Francisco for the rendition of personal services, for the furnishing of any material, supplies or equipment to the City, or for selling any land or building to the City, whenever such transaction would require approval by a City elective officer, or the board on which that City elective officer serves, shall make any contribution to such an officer, or candidates for such an office, or committee controlled by such officer or candidate at any time between commencement of negotiations and the later of either (1) the termination of negotiations for such contract, or (2) three months have elapsed from the date the contract is approved by the City elective officer or the board on which that City elective officer serves. If a Proposer is negotiating for a contract that must be approved by an elected local officer or the board on which that officer serves, during the negotiation period the Proposer is prohibited from making contributions to: 1. The officer s re-election campaign 2. A candidate for that officer s office 3. A committee controlled by the officer or candidate. The negotiation period begins with the first point of contact, either by telephone, in person, or in writing, when a contractor approaches any city officer or employee about a particular contract, or a city officer or employee initiates communication with a potential contractor about a contract. The negotiation period ends when a contract is awarded or not awarded to the contractor. Examples of initial contacts include: (1) a vendor contacts a city officer or employee to promote himself or herself as a candidate for a contract; and (2) a city officer or employee contacts a contractor to propose that the contractor apply for a contract. Inquiries for information about a particular contract, requests for documents relating to a Request for Proposal, and requests to be placed on a mailing list do not constitute negotiations. Violation of Section may result in the following criminal, civil, or administrative penalties: 1. Criminal. Any person who knowingly or willfully violates section is subject to a fine of up to $5,000 and a jail term of not more than six months, or both. 2. Civil. Any person who intentionally or negligently violates section may be held liable in a civil action brought by the civil prosecutor for an amount up to $5, Administrative. Any person who intentionally or negligently violates section may be held liable in an administrative proceeding before the Ethics Commission held pursuant to the Charter for an amount up to $5,000 for each violation. For further information, Proposers should contact the San Francisco Ethics Commission at (415) Sunshine Ordinance (Public Records) In accordance with S.F. Administrative Code Section 67.24(e), contractors bids, responses to RFPs and all other records of communications between the City and persons or firms seeking contracts shall be open to inspection immediately after a contract has been awarded. Nothing in this provision requires the disclosure of a private person s or organization s net worth or other proprietary financial data submitted for qualification for a contract or other benefits until and unless that person or organization is awarded the contract or benefit. Information provided which is covered by this paragraph will be made available to the public upon request. RFP# TTX Page 20 of 27

21 6.9 Public Access to Meetings and Records (Non-Profits) If a Proposer is a non-profit entity that receives a cumulative total per year of at least $250,000 in City funds or City-administered funds and is a non-profit organization as defined in Chapter 12L of the S.F. Administrative Code, the Proposer must comply with Chapter 12L. The Proposer must include in its proposal (1) a statement describing its efforts to comply with the Chapter 12L provisions regarding public access to Proposer s meetings and records, and (2) a summary of all complaints concerning the Proposer s compliance with Chapter 12L that were filed with the City in the last two years and deemed by the City to be substantiated. The summary shall also describe the disposition of each complaint. If no such complaints were filed, the Proposer shall include a statement to that effect. Failure to comply with the reporting requirements of Chapter 12L or material misrepresentation in Proposer s Chapter 12L submissions shall be grounds for rejection of the proposal and/or termination of any subsequent Agreement reached on the basis of the proposal Reservations of Rights by the City The issuance of this RFP does not constitute an agreement by the City that any contract will actually be entered into by the City. The City expressly reserves the right at any time to: 1. Waive or correct any defect or informality in any response, proposal, or proposal procedure; 2. Reject any or all proposals; 3. Reissue a Request for Proposals; 4. Prior to submission deadline for proposals, modify all or any portion of the selection procedures, including deadlines for accepting responses, the specifications or requirements for any materials, equipment or services to be provided under this RFP, or the requirements for contents or format of the proposals; 5. Procure any materials, equipment or services specified in this RFP by any other means; or 6. Determine that no project will be pursued No Waiver No waiver by the City of any provision of this RFP shall be implied from any failure by the City to recognize or take action on account of any failure by a Proposer to observe any provision of this RFP Local Business Enterprise Goals and Outreach The requirements of the Local Business Enterprise and Non-Discrimination in Contracting Ordinance set forth in Chapter 14B of the San Francisco Administrative Code as it now exists or as it may be amended in the future (collectively the LBE Ordinance ) shall apply to this RFP. Each solicitation process requires a new submittal of CMD Attachment 2 forms at the following link, located under the heading Attachment 2: Requirements for Architecture, Engineering, & Professional Services Contracts : (1) Form 2A-CMD Contract Participation Form (2) Form 2B- CMD Good Faith Outreach Requirements Form (3) Form 3- CMD Non-Discrimination Affidavit (4) Form 4- CMD Joint Venture Form (if applicable), and RFP# TTX Page 21 of 27

22 (5) Form 5- CMD Employment Form Please submit Forms 2A, 2B, 3 and 5 (and Form 4 if Joint Venture response) with your Response Package. The forms should be part of the Original of your response. The forms should have original signatures. If these forms are not returned with the response, the response may be determined to be nonresponsive and may be rejected. 1. Local Business Enterprise Goals and Outreach The requirements of the Local Business Enterprise (LBE) and Non- Discrimination in Contracting Ordinance set forth in Chapter 14B of the S.F. Administrative Code as it now exists or as it may be amended in the future (collectively the LBE Ordinance ) shall apply to this solicitation. More information regarding these requirements can be found at: 2. LBE Sub-consultant Participation Requirement Please refer to San Francisco Administrative Code Chapter 14B and CMD Attachment 2 for information concerning the City's LBE program. The LBE sub-consulting goal is 4% of the total value of the goods and/or services to be procured. Sub-consulting goals can only be met with CMD-certified Small or Micro-LBEs located in San Francisco. 3. Link to LBE Subconsultant Directory This link takes you to a directory of current Local Business Enterprises Good Faith Outreach to Select LBE Subconsultants Each firm responding to this solicitation shall demonstrate in its response that it has used good-faith outreach to select LBE sub-consultants as set forth in S.F. Administrative Code 14B.8 and 14B.9, and shall identify the particular LBE sub-consultants solicited and selected to be used in performing the contract. For each LBE identified as a subcontractor, the response must specify the value of the participation as a percentage of the total value of the goods and/or services to be procured, the type of work to be performed, and such information as may reasonably be required to determine the responsiveness of the response. LBEs identified as sub-consultants must be certified with the Contract Monitoring Division at the time the response is due, and must have been contacted by the (prime contractor) prior to listing them as subcontractors in the response. Any response that does not meet the requirements of this paragraph will be nonresponsive. 5. Documentation of Good Faith Outreach Efforts In addition to demonstrating that it will achieve the level of sub-consulting participation required by the contract, a Respondent shall also undertake and document in its submittal the good faith efforts required by Chapter 14B.8(C) & (D) and CMD Attachment 2, Requirements for Architecture, Engineering and Professional Services Contracts. Responses which fail to comply with the material requirements of S.F. Administrative Code 14B.8 and 14B.9, CMD Attachment 2 and this solicitation will be deemed nonresponsive and will be rejected. During the term of the contract, any failure to comply with the level of LBE sub-consultant participation specified in the contract shall be deemed a material breach of contract. RFP# TTX Page 22 of 27

23 Note: If Respondent meets/exceeds LBE participation by 35% (i.e. 5.4% LBE participation for this contract), Good Faith Outreach documentation is not required. 6. LBE Participation and Rating Bonuses The City strongly encourages responses from qualified LBEs. Pursuant to Chapter 14B, the following rating bonuses will be in effect for the award of this project for any Respondents who are certified as a Small or Micro-LBE, or joint ventures where the joint venture partners are in the same discipline and have the specific levels of participation as identified below. Certification applications may be obtained by calling (415) The rating bonus applies at each phase of the selection process. The application of the rating bonus is as follows: a) A 10% bonus to a Small or Micro LBE including Non-Profit; or a joint venture between or among LBEs; or b) A 5% bonus to a joint venture with LBE participation that equals or exceeds 35%, but is under 40%; c) A 7.5% bonus to a joint venture with LBE participation that equals or exceeds 40%; Joint Venture Rating Bonus If applying for a rating bonus as a joint venture, the LBE must be an active partner in the joint venture and perform work, manage the job and take financial risks in proportion to the required level of participation stated in the response, and must be responsible for a clearly defined portion of the work to be performed and share in the ownership, control, management responsibilities, risks, and profits of the joint venture. The portion of the LBE joint venture s work shall be set forth in detail separately from the work to be performed by the non-lbe joint venture partner. The LBE joint venture s portion of the contract must be assigned a commercially useful function. 7. Application of the Rating bonus: The following rating bonus shall apply at each stage of the selection process, i.e., qualifications, proposals, and interviews: a) Contracts with an Estimated Cost in Excess of $10,000 and Less Than or Equal To $400,000. A 10% rating bonus will apply to any proposal submitted by a CMD certified Small or Micro LBE. Proposals submitted by SBA-LBEs are not eligible for a rating bonus. b) Contracts with an Estimated Cost in Excess of $400,000 and Less Than or Equal To $10,000,000. A 10% rating bonus will apply to any proposal submitted by a CMD certified Small or Micro-LBE. Pursuant to Section 14B.7(E), a 5% rating bonus will be applied to any proposal from an SBA-LBE, except that the 5% rating bonus shall not be applied at any stage if it would adversely affect a Small or Micro-LBE Proposer or a JV with LBE participation. c) Contracts with an Estimated Cost In Excess of $10,000,000 and Less Than or Equal To $20,000,000. A 2% rating bonus will apply to any proposal submitted by a Small LBE, Micro LBE and SBA-LBE. d) The rating bonus for a Joint Venture ( JV ) with LBE participation that meets the requirements of Section 2.02 below is as follows for contracts with an estimated cost of in excess of $10,000 and Less Than or Equal to $10,000,000: i. 10% for each JV among Small and/or Micro LBE prime Proposers. ii. 5% for each JV which includes at least 35% (but less than 40%) participation by Small and/or Micro-LBE prime Proposers. RFP# TTX Page 23 of 27

24 iii. 7.5% for each JV that includes 40% or more in participation by Small and/or Micro-LBE prime Proposers. iv. The rating bonus will be applied by adding 5%, 7.5%, or 10% (as applicable) to the score of each firm eligible for a bonus for purposes of determining the highest ranked firm. Pursuant to Chapter 14B.7(F), SBA-LBEs are not eligible for the rating bonus when joint venturing with a non-lbe firm. However, if the SBA- LBE joint ventures with a Micro-LBE or a Small-LBE, the joint venture will be entitled to the joint venture rating bonus only to the extent of the Micro-LBE or Small-LBE participation described in Section 2.01B.4b. and c. above. e) The rating bonus does not apply for contracts estimated by the Contract Awarding Authority to exceed $20 million. The rating bonus/bid discount does not apply for contracts estimated by the Contract Awarding Authority to exceed $20 million. 8. CMD Contact If you have any questions concerning the CMD Forms and to ensure that your response is not rejected for failing to comply with S.F. Administrative Code Chapter 14B requirements, please call Ryan Young, the CMD Contract Compliance Officer for this solicitation at or ryan.b.young@sfgov.org. The CMD forms will be reviewed prior to the evaluation process. RFP# TTX Page 24 of 27

25 7 Contract Requirements 7.1 Standard Contract Provisions The successful Proposer will be required to enter into a contract substantially in the form of the Agreement for Professional Services, attached hereto as Attachment F or G. Failure to timely execute the contract, or to furnish any and all insurance certificates and policy endorsement, surety bonds or other materials required in the contract, shall be deemed an abandonment of a contract offer. If the City is unable to successfully complete negotiations with the highest ranked Proposer it may cease those negotiations and proceed to negotiate with the next highest ranked Proposer. 7.2 Nondiscrimination in Contracts and Benefits The successful Proposer will be required to agree to comply fully with and be bound by the provisions of Chapters 12B and 12C of the San Francisco Administrative Code. Generally, Chapter 12B prohibits the City and County of San Francisco from entering into contracts or leases with any entity that discriminates in the provision of benefits between employees with domestic partners and employees with spouses, and/or between the domestic partners and spouses of employees. The Chapter 12C requires nondiscrimination in contracts in public accommodation. Additional information on Chapters 12B and 12C is available on the CMD s website at Minimum Compensation Ordinance (MCO) The successful Proposer will be required to agree to comply fully with and be bound by the provisions of the Minimum Compensation Ordinance (MCO), as set forth in S.F. Administrative Code Chapter 12P. Generally, this Ordinance requires contractors to provide employees covered by the Ordinance who do work funded under the contract with hourly gross compensation and paid and unpaid time off that meet certain minimum requirements. For the amount of hourly gross compensation currently required under the MCO, see Note that this hourly rate may increase on January 1 of each year and that contractors will be required to pay any such increases to covered employees during the term of the contract. Additional information regarding the MCO is available on the web at Health Care Accountability Ordinance (HCAO) The successful Proposer will be required to agree to comply fully with and be bound by the provisions of the Health Care Accountability Ordinance (HCAO), as set forth in S.F. Administrative Code Chapter 12Q. Contractors should consult the San Francisco Administrative Code to determine their compliance obligations under this chapter. Additional information regarding the HCAO is available on the web at First Source Hiring Program (FSHP) If the contract is for more than $50,000, then the First Source Hiring Program (Admin. Code Chapter 83) may apply. Generally, this ordinance requires contractors to notify the First Source Hiring Program of available entry-level jobs and provide the Workforce Development System with the first opportunity to refer qualified individuals for employment. RFP# TTX Page 25 of 27

26 Contractors should consult the San Francisco Administrative Code to determine their compliance obligations under this chapter. Additional information regarding the FSHP is available on the web at and from the First Source Hiring Administrator, (415) Conflicts of Interest The successful Proposer will be required to agree to comply fully with and be bound by the applicable provisions of state and local laws related to conflicts of interest, including Section of the City's Charter, Article III, Chapter 2 of City s Campaign and Governmental Conduct Code, and Section et seq. and Section 1090 et seq. of the Government Code of the State of California. The successful Proposer will be required to acknowledge that it is familiar with these laws; certify that it does not know of any facts that constitute a violation of said provisions; and agree to immediately notify the City if it becomes aware of any such fact during the term of the Agreement. Individuals who will perform work for the City on behalf of the successful Proposer might be deemed consultants under state and local conflict of interest laws. If so, such individuals will be required to submit a Statement of Economic Interests, California Fair Political Practices Commission Form 700, to the City within ten calendar days of the City notifying the successful Proposer that the City has selected the Proposer. RFP# TTX Page 26 of 27

27 8 Protest Procedures 8.1 Protest of Minimum Qualifications and Contract Monitoring Division Requirements (Nonresponsive) Determination Within five working days of the City's issuance of a notice of nonresponsiveness, any firm that has submitted a proposal and believes that the City has incorrectly determined that its proposal is nonresponsive may submit a written notice of protest. Such notice of protest must be received by the City on or before the fifth working day following the City's issuance of the notice of nonresponsiveness. The notice of protest must include a written statement specifying in detail each and every one of the grounds asserted for the protest. The protest must be signed by an individual authorized to represent the Proposer, and must cite the law, rule, local ordinance, procedure or RFP provision on which the protest is based. In addition, the protestor must specify facts and evidence sufficient for the City to determine the validity of the protest. 8.2 Protest of Non-Responsible Determination Within five working days of the City's issuance of a notice of a determination of nonresponsibility, a vendor that would otherwise be the lowest responsive Proposer may submit a written notice of protest. The vendor will be notified of any evidence reflecting upon their responsibility received from others or adduced as a result of independent investigation. The vendor will be afforded an opportunity to rebut such adverse evidence, and will be permitted to present evidence that they are qualified to perform the contract. Such notice of protest must be received by the City on or before the fifth working day following the City's issuance of the notice of non-responsibility. The notice of protest must include a written statement specifying in detail each and every one of the grounds asserted for the protest. The protest must be signed by an individual authorized to represent the Proposer, and must cite the law, rule, local ordinance, procedure or RFP provision on which the protest is based. In addition, the protestor must specify facts and evidence sufficient for the City to determine the validity of the protest. 8.3 Protest of Notice of Intent to Award Within five working days of the City's issuance of a notice of intent to award the contract, any firm that has submitted a responsive proposal and believes that the City has incorrectly selected another Proposer for award may submit a written notice of protest. Such notice of protest must be received by the City on or before the fifth working day after the City's issuance of the notice of intent to award. The notice of protest must include a written statement specifying in detail each and every one of the grounds asserted for the protest. The protest must be signed by an individual authorized to represent the Proposer, and must cite the law, rule, local ordinance, procedure or RFP provision on which the protest is based. In addition, the protestor must specify facts and evidence sufficient for the City to determine the validity of the protest. 8.4 Delivery of Protests by No Later than 5 PM (PT) on the Due Date All protests must be received by no later than 5 PM 0PT) on the due date. Protests or notice of protests made orally (e.g., by telephone) will not be considered. Protests must be delivered by to: Nikhila Pai: Nikhila.Pai@sfgov.org RFP# TTX Page 27 of 27

28 ATTACHMENT A OVERVIEW OF SAN FRANCISCO PROPERTY TAX 1 The City and County of San Francisco assesses value, bills, collects and apportions its property taxes through three different departments, the Offices of the Assessor-Recorder, Controller, and Treasurer and Tax Collector. California property is divided into several types that are taxed differently: real, personal, possessory interest and state-assessed. Real property is a combination of land, buildings, and other permanent structures. Personal property is property not affixed to land or structures, such as computers, boats, airplanes, and business equipment. Possessory Interest is private use of publicly owned property. State assessed property (or Board of Equalization) is certain business property that cross county boundaries and is in some ways treated like personal property. 1. Real Property By far, real property surpasses the other types in quantity and workload, and generates the largest amount of income for San Francisco. Under California s tax system, the assessed value of most real property is based on its fair market value (usually, the purchase price). The process that the Assessor uses to determine the value of real property was established by Proposition 13. Under this system, when real property is purchased or otherwise acquired, the Assessor staff assigns it an assessed value that is equal to its fair market value, or acquisition value. Each year thereafter, the property s assessed value increases by up to 2 percent, or the fair market value, whichever is lower. This process continues until the property is sold, at which point the Assessor assigns it a new assessed value equal to its most recent fair market value. 2. The Secured Roll On January 1, California places a property tax lien on all real property throughout the state. For the first six months of the year, Assessor staff review and confirm values for all San Francisco real property. By July, the Assessor delivers assessments for all 205,000 parcels, known as the secured roll, to the Controller s Office. The Assessor also delivers exemption information, such as homeowner or veteran s status, to deduct portions of assessed value for tax purposes. During their work, Assessor staff may discover an error or omission in an assessment on the secured roll. The Controller s Office affords the Assessor one correction prior to billing, to be delivered by the third Monday in August. Subsequent corrections typically result in revised or new bills. 3. Property Tax Rate Over the summer, the Controller s Office watches the development and finalizing of the property tax rate for the fiscal year, and collects special assessment, Mello-Roos, and parcel tax information. The rate is calculated based on General Obligation Bond repayment schedules for the City, Bay Area Rapid Transit (BART) and the San Francisco Unified School District (SFUSD). Once the rate is set, typically in August, the Board of Supervisors (BOS) and Mayor review and approve it in early October. 1 This narrative overview is not meant to serve as a substitution for the California Revenue and Taxation Code or any other governing authorities. This narrative is solely for information purposes for RFP #TTX RFP #TTX Attachment A Overview of San Francisco Property Tax Page 1 of 5

29 4. Billing and Collections Once the secured roll is complete, the Controller s Office delivers it, along with the tax rate and any additional charges, to the Tax Collector for billing. Property tax bills must be mailed by November 1 of every fiscal year, but printing and mailing cannot begin until the rate is set. Typically, IT staff for the Office of the Treasurer and Tax Collector load the unapproved rate, special assessments, parcel taxes and secured roll in September in anticipation of a speedy printing and mailing process in mid-october. The Treasurer and Tax Collector utilizes Adobe AEM to develop its bills for printing and mailing by the Department of Reproduction Services. Payments begin as soon as the online payment portal and bill stubs are available. Cash, check, wire and online payments are processed through the Cashiering system and reflect back into the property tax system. 5. Assessable Events However, assessed values can change after the roll has been delivered and bills mailed. These reasons are termed events and include changes in ownership, exemption activities or improvements. When property owners undertake property improvements, such as additions, remodeling, or building expansions, the additions or upgrades are assessed at market value in that year and increase by up to 2 percent each year thereafter. The unimproved portion of the property continues to be assessed based on its original acquisition value. For example, if a homeowner purchased a home in 2002 and then added a garage in 2010, the original property would be assessed at its 2002 acquisition value adjusted upward each year while the garage would be assessed at its 2010 market value adjusted upward. The property s assessed value would be the combined value of the two portions. 6. The Supplemental Roll To capture the increase or decrease in taxable assessed value due to events, the Assessor develops a supplemental roll listing all property that has undergone a change in ownership or experienced new construction. A supplemental assessment is a partial-year assessment/bill during the fiscal year in which the event occurred. It is meant to be in addition to the regular secured roll and subsequent bill. There are two types of supplemental assessments. A negative supplemental represents a downward change in value as compared to the original roll. Information on negative supplemental assessments flows directly from the Assessor s system to the Controller s Office financial system, resulting in a refund check to the owner of record. A supplemental assessment represents an upward change in value, resulting in a bill. Unlike the yearly secured tax bill due on December 10 and April 10 of every year, taxes on the supplemental roll are due on various dates depending on when the tax bill is mailed. When ownership changes in the midst of a supplemental assessment time period, the Controller s Office will split the taxable assessed value between the old owner and new owner resulting in unsecured and secured supplemental bills respectively (see more on unsecured supplemental below). 7. The Escape Roll In situations where Assessor staff enroll a supplemental assessment after the event year, assessments for the intervening missed years will be added to an escape roll. An escape assessment represents a full year of assessed value for both prior years as well as the current tax year. Building on the earlier example, if the market rate assessed value of the 2010 garage addition is not added to the supplemental roll until 2013, the Assessor will also include 2011, 2012 and 2013 escape assessments. As a batch of bills representing multiple years of missed RFP #TTX Attachment A Overview of San Francisco Property Tax Page 2 of 5

30 assessed value can be onerous to a taxpayer, state law offers taxpayers the option to enter into a payment plan for prior year escape assessments. For example, in a 2013 tax year, the homeowner with the garage addition is required to pay the secured tax bill as well as the 2010 supplemental and 2013 escape tax bills. However, a five-year payment plan is available for the 2011 and 2012 escape bills. 8. Reductions in Assessed Value Owners who disagree with the assessed value of their properties can file a formal appeal with the San Francisco Assessment Appeals Board, an independent agency separate from the Assessor's Office. Should the Appeals Board side with the Assessor's Office, assessments remain the same; if the Appeals Board sides with owners, parcels reassess downward. Reductions in assessed value result in roll corrections, often across multiple bill years/types. For example, the homeowner with the 2010 garage addition files an appeal in 2013, after receiving bills, to dispute the market rate valuation of the new construction. The Appeals Board renders its decision in 2015, siding with the homeowner. The 2010 supplemental assessment, all escape assessments, as well as the 2014 and 2015 secured roll will be corrected downward, as part of the Appeals Board decision. Having paid the bills in full, the homeowner will be refunded the difference between the taxes paid on the original assessed value and the new, lower assessed value for all bills. 9. Refunds The Office of the Treasurer and Tax Collector processes refunds due to reductions in assessed value or bill cancellations. The original payor is refunded what is considered an overpayment due to the reduction or cancellation. Depending on the timing and type of refund, payors may receive interest payments on the amount refunded. 10. Delinquency Property owners are required to pay their property taxes on time. Secured, secured escape and secured supplemental bills are due in two installments. The first installment must be paid in full before the second installment can be paid. If an owner fails to pay on time, the unpaid portion will be considered delinquent and incur a penalty charge and, in the case of a second installment, a one-time administrative fee. If owners fail to pay their delinquent bills by the end of the fiscal year, the bill is considered in default. Once a bill is in default, it will accrue additional penalties and fees and enter redemption. 11. Redemption and Tax Sale When secured taxes remain unpaid at the end of the fiscal year, they become tax-defaulted. Tax-defaulted properties transfer to the redemption tax roll where they are assigned a sale ID, and begin to accrue penalties (interest) as provided by law. The defaulted taxes accrue an additional 1 1/2 percent penalty each month (18 percent per annum) until the balance is paid in full. In addition, a one-time redemption fee attaches to the defaulted account. Property that remains in a tax-defaulted status for five or more years becomes subject to the Tax Collector's power to sell. Once subject to power to sell, the property may be sold at public auction or otherwise conveyed to new ownership. The power to sell status may be avoided by initiating and maintaining an installment plan within the first five years of default, or by completely redeeming the property through payment of all unpaid amounts together with penalties and fees before the subject property is sold. RFP #TTX Attachment A Overview of San Francisco Property Tax Page 3 of 5

31 12. Unsecured Property Tax The term unsecured refers to property that is not secured real estate. In general, unsecured property tax is either for business personal property (office equipment, owned or leased), boats, berths, or possessory interest for use of a space. It can also be based upon supplemental or escape assessments against secured property for prior ownership. 13. Unsecured Supplemental/Escape (Real Property) The term unsecured supplemental or unsecured escape when attached to real property refers to an assessment that is based on prior ownership of secured property. For example, if the homeowner with the 2010 garage addition sold the property in 2012, the bills issued in 2013 to the original homeowner would be unsecured because the original homeowner no longer owns the property. The 2010 supplemental and 2011 escape would be unsecured and billed to the original homeowner. The 2013 escape would remain secured and billed to the new homeowner. As the property changed hands in 2012, the 2012 escape bill would be processed as unsecured to the original homeowner and secured to the new homeowner. 14. Personal Property Personal property is property other than land, buildings, and other permanent structures, which are commonly referred to as real property. Most personal property is exempt from property taxation, including business inventories, materials used to manufacture products, household furniture and goods, personal items, and intangible property like gym memberships and life insurance policies. Some personal property, however, is subject to the property tax. These properties consist mainly of manufacturing equipment, business computers, commercial boats, and office furniture. When determining the market value of personal property, county assessors take into account the loss in value due to the age and condition of personal property a concept known as depreciation. Unlike property taxes on real property, which are due in two separate payments, taxes on personal property are due in a single payment during the summer months. 15. Possessory Interests Private interests in publicly owned lands, known as possessory interests, are also taxable. A taxable possessory interest is created when a private party is granted the exclusive use for private benefit of real property owned by a non-taxable entity. The possession must be independent, durable, exclusive of the rights held by others, and provide a private benefit to the possessor above that which is granted to the general public. Taxable possessory interests can be created in virtually any use of government owned real property. Common examples would be campgrounds, government employee housing, forest cabins, golf courses, ski resorts, airplane hangars and terminals, anchorages, restaurants, grazing rights, stores, homes, apartments, cable television rights-of-way, easements and boat slips. 16. State Assessed Property The State Board of Equalization is responsible for assessing certain real properties that cross county boundaries, such as pipelines, railroad tracks and cars, and canals. State assessed properties are assessed on an annual basis, and generally at market value (except for railroad cars). RFP #TTX Attachment A Overview of San Francisco Property Tax Page 4 of 5

32 References California Board of Equalization. (2015). California Property Tax An Overview. Legislative Analysts s Office. (2012) Understanding California s Property Taxes City and County of San Francisco Office of the Assessor-Recorder RFP #TTX Attachment A Overview of San Francisco Property Tax Page 5 of 5

33 Attachment B - Controller Process Flows 1 General Activities CON 1.01 Scheduling/Calendars CON 1.02 Templates/Correspondence CON 1.03 Data and Calculations2 Payment Processing 2 Funds and Rates CON 2.01a New Special Assessments CON 2.01b Special Assessments Updates and Annual Process CON 2.02 Segregation of Tax Bill (2 pages) CON 2.03 Roll Extension (2 pages) CON 2.04 Calculate 1% Rate (2 pages) CON 2.05 Calculate Unitary / Unitary Railroad Debt Service 3 Calculations, Estimates, and Reviews CON 3.03 RPTTF Estimates and Actuals Part 1: County Estimate to Jurisdictions CON 3.04 RPTTF Estimates and Actuals Part 2: ROPS Actuals CON 3.05 RPTTF Estimates and Actuals Part 3: Pass Throughs CON 3.06 RPTTF Estimates and Actuals Part 4: Controller Admin CON 3.07 RPTTF Estimates and Actuals Part 5: SCO Invoice 4 Roll Maintenance CON 4.01 Prior Year Roll Changes (Secured, Unsecured, and Supplemental) CON 4.02 Cancellation of Penalties and Fees (2 pages) CON 4.03 Special Charges Changes or Cancellations 5 Apportionment and Distribution CON 5.01 Secured Apportionment CON 5.02 Unsecured Apportionment CON 5.03 Supplemental Apportionment CON 5.04 HOPTR Exemption Claim to State (2 pages) CON 5.05 HOPTR Apportionment CON 5.06 Teeter Note Creation and Approval CON 5.08 School District ERAF Entitlement and Excess ERAF CON 5.09 Generate ERAF Reimbursement Claim (2 pages) CON 5.10 Apportionment Review and Approval CON 5.11 RDA or IFD Tax Increment and Apportionment7 Current Year Close

34 San Francisco Property Tax System Process Documentation File LEGEND Shapes START / END Points Task/Activity Decision Point Reference to Another Process Area A Activities occurring in parallel Reference in the same process Sub process or automated process Direction of workflow Yes/No Direction of a decision s workflow D 1 Data Notes Notes N 1 Task Question Principles Workflow will travel down and/or to the right whenever possible Shape size and spacing will be consistent whenever possible Process flows will be documented in a swim lane format Technology systems will always appear at the bottom of the page Tasks/Activities will be written starting with a verb Tasks/Activities will have only one exit path Decision points will be written as yes/no questions wherever possible Decision points will have only two exit paths wherever possible Key Data will be documented when it is created, changed, or transmitted Processes that continue on to multiple worksheets will be numbered, i.e., Assessment Appeals (pg.1/2)" and Assessment Appeals (pg.2/2) References to other Process Areas will be made using shorthand Notation (e.g., ASR 1.02, see below) ASR 1.02 B o ASR = Assessor, CON = Controller, TTX = Tax Collector o Process 1.02" is shorthand for Subject/Workshop 1, Process Flow 02 o The singular Alphabetic reference B refers to the corresponding input shape B on the Referenced Process AS 1.02

35 CON 1.01 SF PTax: Controller Workshop (General Activities) Scheduling/Calendars Property Tax Staff START Determines annual Property Tax events and Apportionment schedules Updates property tax calendar deadlines and reminder dates in the system Saves entered dates, deadlines, and reminder data System START Monitors for key dates Generates notices at pre configured times before set deadlines Sends notice(s) to appropriate recipients based on each event or deadline N 1 N 2 Monitors for completed actions related to notice Has action occurred? Yes END No Generates reminder notice(s) at preconfigured intervals No Has final reminder been sent? Yes Notify appropriate Property Tax Staff END NOTES 1. Notices can include: , system pop ups, etc. 2. Notices can be send to individuals, agencies, districts, etc.

36 CON 1.02 SF PTax: Controller Workshop (General Activities) Templates/Correspondence START Creates Templates for general correspondence and official notifications Property Tax Staff Updates templates in the system as necessary Makes appropriate updates / adjustments to the data or notice template Yes Selects to review notices Reviews Notices Changes Required? Saves updated templates for given tax year Notifies Property Tax Staff that notices are ready for review No System START N 1 Receives indication to generate and populate a notification with pre configured data N 2 Generates prepopulated notices Yes User Review Required? Displays notices for review Generates and sends notice(s) to appropriate staff, special assessment districts, agencies, etc. END No NOTES 1. Prior year and prior versions of templates will remain in the system for appropriate uses 2. Indications can originate from affirmative user actions, as part of pre configured workflow processes, or based on pre configured dates/events monitored by the system

37 CON 1.03 SF PTax: Controller Workshop (General Activities) Data and Calculations Property Tax Staff Selects to review calculations Makes appropriate updates and/or adjustments Yes Changes or Adjustments Required? Reviews Calculations and Values No Adds annotations as necessary Approves calculations System START Conducts calculation according to preconfigured business rules Notifies Property Tax Staff that calculations are ready for review Displays values and calculations for review Saves calculations and values, including any annotations and adjustments END

38 CON 2.01a SF PTax: Controller Workshop (TRA Funds and Rates) New Special Assessment Property Tax Staff START Receives approved documents from the Special Assessments Agency Selects to create new special assessment in the system Completes basic record in the system N 1 Reviews new special assessment record and indicates to save System Displays special assessment record template Assigns special assessment number and displays completed special assessment record for review Saves special assessment record Generates and sends a notice to the Special Assessment Agency with new special assessment information END NOTES 1. Basic record data includes: name, two contacts, contact information, tax year, special assessment number (for entities with more than one special assessment that appears on San Francisco tax bills), parcel number, charge, resolution/ballot item confirmation, new resolution number to be entered for each year that provides legal authority put the charge on the tax bill (for liens), etc.

39 CON 2.01b SF PTax: Controller Workshop (TRA Funds and Rates) Special Assessments Updates and Annual Process Special Assessment Agency Logs into the system, creates account, and adds vendor number N 1 Enters or updates special assessment information and phone number to be printed on tax bills N 2 System START Sends annual to Special Assessment Agency to activate account as scheduled in the system START Displays any Special Assessment information associated with the Special Assessment Agency Logs into the system to update special assessment information as needed Calculates and displays amount to be charged or withheld for cost recovery fee Saves special assessment information Notifies Property Tax Staff of updated special assessment information END NOTES 1. Vendor number is assigned from the Controller AOSD 2. Special assessment information includes: parcels, charges, etc.

40 CON 2.02 SF PTax: Controller Workshop (TRA Funds and Rates) Segregation of Tax Bill (pg. 1/2) Property Tax Staff Reviews and confirms tax bill to segregate Notifies Special Assessment Agencies to confirm special charges on new, segregated bills System START Receives request from the Assessor s Office to segregate a tax bill N 1 Associates request with correct accounts and bills in the system pending Property Tax Staff approval Prompts Property Tax Staff to complete tax bill segregations Marks indicated tax bill as pending retirement Creates new tax bills and carries over special assessment rate Tracks special assessments confirmations A Pg. 2 NOTES 1. Assessor s request includes exact assessment amounts assigned to the new parcel number

41 CON 2.02 SF PTax: Controller Workshop (TRA Funds and Rates) Segregation of Tax Bill System Special Assessment Agency A Pg. 1 Have special charges been confirmed? No Sends reminder to Special Assessment Districts to confirm special charges on new segregated bills Yes Logs into the system and confirms charges Activates new segregated bills / retires original parent bill once Special Assessment Agencies confirm Enrolls all confirmed escape bills on a preconfigured date in the system END NOTES 1. Assessor s request includes exact assessment amounts assigned to the new parcel number

42 CON 2.03 SF PTax: Controller Workshop (TRA Funds and Rates) Roll Extension (pg. 1/2) Property Tax Staff Selects to review roll data and check totals Researches discrepancies and resolves in the system Yes Changes needed? No A Pg. 2 System ASR 6.07 Roll Close and Open START Receives Assessment Roll from the Assessor s Office Receives Final State Board Roll for unitary and other state assessed property Prompts Property Tax Staff to review roll data and check totals N 1 Identifies discrepancies and variances for Property Tax Staff review NOTES 1. Reviewed data includes: land, improvement, and fixtures

43 CON 2.03 SF PTax: Controller Workshop (TRA Funds and Rates) Roll Extension (pg. 2/2) Property Tax Staff A Pg. 1 Ensures that tax rates are updated Selects to apply tax rate(s) and generates tax roll(s) START Assembles special assessments and complete final version of all levies that will appear on the tax bill N 3 Ensures that final roll updates have been received Confirms to extend tax roll(s) N 2 START Receives final roll corrections from the Assessor s Office Notifies the Controller s Office System Applies tax rate(s) and generates tax roll(s) pending final roll corrections and final levies Extends tax roll as scheduled in the system Secured? Yes Sends annual secured letter to tax collector No Routes tax roll(s) to Tax Collector s Office to generate bills TTX.1.01 Secured Bill Generation NOTES 2. Tax roll includes: special assessments, secured, secured escapes, total unsecured billed as of date and line items 3. Levies include ad valorem and district charges/special assessments

44 CON 2.04 SF PTax: Controller Workshop (TRA Funds and Rates) Calculate 1% Rate (pg. 1/2) Property Tax Staff START Reviews the current year gross revenue Reviews, edits and approves the growth percentages System Calculates Prior Year revenue based on current year tax areas Multiplies the change in current year assessed values by pre ERAF AB8 factors Adds current year revenue growth to the new prior year gross revenue Calculates and includes adjustments N 1 Calculates the growth percentages for each jurisdictions Retrieves new prior year adjusted ERAF amount and apply new growth percentages to ERAF Adds the new current adjusted RAF amount to the current year gross revenue A (pg. 2) Notes: 1. Adjustments may include: Special Jurisdiction Augmentation Fund, RDA adjustments, etc.

45 CON 2.04 SF PTax: Controller Workshop (TRA Funds and Rates) Calculate 1% Rate (pg. 2/2) Property Tax Staff Verifies rate and valuations are correct in the system for all accounts Corrects source information and determines any necessary adjustments No Approve rate and values? Yes Approves rate and values in the system Yes Displays calculations for Property Tax Staff review Saves final rate and values System A (pg. 2) Total net revenue across the City Divides each tax areas net revenue by the total net revenue to create tax rate factors Have 1% Supplementals been calculated? No Retrieve all relevant calculations and data for given roll year END

46 CON 2.05 SF PTax: Controller Workshop (TRA Funds and Rates) Calculate Unitary / Unitary Railroad Debt Service Property Tax Staff START Initiates unitary / unitary railroad debt service calculation in the system Verifies rate and valuations are correct in the system for all accounts Corrects source information and determines any necessary adjustments No Approve values? Yes Approves values in the system System Determine prior year Unitary amount billed for debt service (billed, not collected) Compound to current year debt required Determine change factor Apply prior year change factor to prior year Determine current year state debt service rate Saves final values END

47 CON 2.06 SF PTax: Controller Workshop (TRA Funds and Rates) New Bond START Receives BART G.O. Bond tax rate factor from the BART Board Uploads BART G.O. Bond tax rate factor to the system Property Tax Staff START Uploads debt documents to the system and saves updates N 1 Reviews tax rate changes and make adjustments Approves new tax rate Edits and saves summary report approval documents Tax Rate Approved? Yes No Resolves issue identified by leadership Confirm approval in System System Saves updated information Calculates new tax rate due to addition of new debt Pre populates summary report approval documents with updated data and tax rate Saves updated tax rate END NOTES 1. Debt documents include: schedule, estimates, and legal information

48 CON 3.03 SF PTax: Controller Workshop (Calculations, Estimates, and Reviews) RPTTF Estimates and Actuals Part 1: County Estimates to Jurisdictions System Property Tax Staff Property Tax Manager START Prompts Property Tax Staff to make any needed modifications to the base year numbers Review prior years values and makes any necessary modifications Displays prior three years base values and pass throughs for Property Tax Staff to review Estimates tax increment based on preconfigured business rules N 1 Subtracts excepted/ estimated passthroughs and admin fees from tax increment Provides any necessary additional inputs Displays calculations and any necessary inputs Reviews, edits, and approves estimates and calculations Selects to save as Estimated ROPS Routes to Property Tax Manager for review Reviews estimates and calculations Approves values? No Notes issue in the system for Property Tax Staff to resolve Routes to Property Tax Staff to review and resolve issues Yes Approves values in the system Saves form and initiates sending to all interested parties via required method END N 2 NOTES 1. Estimated tax increment is inclusive of all roll changes for a given date range 2. Interested parties include, but are not limited to: California Department of Finance, Successor Agency(s), Affected Tax Entities, etc.

49 CON 3.04 SF PTax: Controller Workshop (Calculations, Estimates, and Reviews) RPTTF Estimates and Actuals Part 2: ROPS Actuals START Receives DOF letter of determination Property Tax Staff Enters letter of determination data and information into the system Reviews amounts to be funded from RPTTF and adds comments if applicable Modify and document as needed Yes Modification required? No Enters key data and adjustments (Including prior period adjustments) as necessary and saves in the system System Interfaces with Tax Collector system to retrieve applicable collections data for the time period Interfaces with Assessor system to calculate a revised increment based on all roll changes to date Displays amount to be funded from RPTTF Saves updated record END

50 CON 3.05 SF PTax: Controller Workshop (Calculations, Estimates, and Reviews) RPTTF Estimates and Actuals Part 3: Pass Throughs Property Tax Staff START When known, enter apportionment activity dates into the system Enter or select period of time for which tax increment is being calculated N 1 Initiates calculation of pass throughs Reviews data, enters estimates as applicable, and selects information to send Selects to generates pass through calculations report for each taxing entity by project area N 3 System Calculates passthrough based on RDA revenues, RDA refund data, and ERAF entitlement for school districts N 2 Displays for review Saves updated record Generates passthrough calculations report for each taxing entity by project area END NOTES 1. Periods include May 16 th December 15 th for January 2 nd distribution, December 16 th May 15 th for June 1 st distribution, May 16 th September 15 th for October 1 st estimate, and December 16 th to March 15 th for April 1 st estimate 2. The system calculates the pass throughs based on data including, but not limited to: assessed values, accumulated assessed value corrections, RDA pass through base values for Tier I, II, and III, etc. 3. Generated for the benefit of the San Francisco Unified School District who attempt to spend the pass throughs within the redevelopment project area that provided them for the portion considered facilities dollars instead of property tax dollars by the Health ad Safety Code

51 CON 3.06 SF PTax: Controller Workshop (Calculations, Estimates, and Reviews) RPTTF Estimates and Actuals Part 4: Controller Admin Property Tax Staff START Receives the invoice for total cost recovery bill Uploads invoice and enters cost recovery invoice data into the system N 1 Updates entries, including RDAspecific costs, and accepts data into the system Reviews sums and enters adjustments for each RDA project area Indicate to make further adjustments Yes Are further adjustments necessary? Saves data No Web Portal / System Saves information Saves information and calculates total costs incurred for RDA related costs Calculates the total cost for each project area if applicable (default to evenly splitting across projects) Sums projects by RDA and displays for Property Tax Staff Review Saves updated record END NOTES 1. Includes: invoice number and option to itemize costs. Cost recovery categories include: Property Tax Unit s time spent on redevelopment work, Controller time spent on Staffing of the Oversight Committee, etc.

52 CON 3.07 SF PTax: Controller Workshop (Calculations, Estimates, and Reviews) RPTTF Estimates and Actuals Part 5: SCO Invoice Property Tax Staff START Receives periodic PDF or paper invoices from State Controller s Office Collects invoices, scans, and uploads original PDF to the System Enters SCO information including: date, invoice number, amount for period Manually enter split? Yes Enters any applicable splits or other adjustments manually Reviews and approves split amounts No Splits according to business rules Displays split for review Saves updated record System END

53 CON 3.08 SF PTax: Controller Workshop (Calculations, Estimates, and Reviews) RPTTF Preliminary Report and Summary by Tax Agency (pg. 1/3) C Pg. 2 System Property Tax Staff START Auto calculates for the period once all inputs have been registered in the system for the given period N 1 Reviews information Displays passthrough calculations by affected taxing entities Displays calculations and distribution summary by project and sub project areas Updates prior calculations or enters manual adjustment as necessary Yes Issues or adjustments? No Discusses and resolves issues as needed Selects to send summary distribution report to successor agency(ies) Sends summary distribution report and calculations to successor agency(ies) Yes Successor agency issues? No Accepts data in System Compiles data and populates report templates N 2 Displays reports for Property Tax Staff review B Pg. 2 NOTES 1. Inputs include: County estimates, ROPS actuals, pass throughs, Controller Admin, and SCO invoice 2. Reports are: DOF report, distribution report to each tax agency, and affected taxing entities pass through report broken down by project

54 CON 3.08 SF PTax: Controller Workshop (Calculations, Estimates, and Reviews) RPTTF Preliminary Report and Summary by Tax Agency (pg. 2/3) System Property Tax Staff Property Tax Manager B Pg. 1 Reviews reports and adds notes as necessary Approves reports? Yes Documents approval in the System No Adds notes in the System Makes changes in the System C Pg. 1 No Approves reports? Reviews DOF report and distribution report to each tax agency and adds notes Routes approved report(s) to Property Tax Manager for Review Yes Documents approval in the system Saves approved DOF report and distribution report to each tax agency Prompts Property Tax Manager to send reports as scheduled in the system D Pg. 3

55 CON 3.08 SF PTax: Controller Workshop (Calculations, Estimates, and Reviews) RPTTF Preliminary Report and Summary by Tax Agency (pg. 2/3) Property Tax Manager D Pg. 2 Reviews and updates recipients of reports as necessary Confirms to send data to DOF and reports to taxing agencies s data to DOF as scheduled s reports to each affected taxing agency as scheduled System END

56 CON 4.01 SF PTax: Controller Workshop (Roll Maintenance) Prior Year Roll Changes (Secured, Unsecured, and Supplemental) Controller Staff Selects to view roll changes Reviews revised value and tax bill amount in the system Issues with new tax amount? Yes Adjusts calculation in system No Approves new tax amount System Notifies Controller Staff of prior year roll changes for review ASR 6.03 RP Roll Corrections Calculates revised tax values based on revised assessments ASR 6.04 BPP Roll Corrections Displays roll corrections and associated documents/data for review N 1 Saves new tax amount Is it paid? Yes Is revised tax greater than payment received? No Yes Notifies Bureau of Delinquent Revenue of roll change and to cease collection activity for statutory period No Redemption? Routes to Tax Collector s Office to generate escape bill for additional tax due Yes Routes to Tax Collector s Office to send escape/ corrected bill with new due date Updates amount due and flags the affected bill(s) to not incur additional penalties for statutory period TTX 1.01/1.02 Secured / Unsecured Bill Generation No Marks revised bill as paid and issues a refund of difference CON 4.04 NOTES 1. Includes any associated AAB assigned case number that is triggering a roll correction and whether or not the Claim Refund box was checked on the AAB appeal form that was filed associated with the adjustment

57 CON 4.02 SF PTax: Controller Workshop (Roll Maintenance) Cancellation of Penalties and Fees (pg. 1/2) Controller Staff B Pg. 2 Review and accept notification Reviews Bill and Tax Cancellation Request Any questions? Yes Adds Commentary in the System No Approve request? No Yes A Pg. 2 Tax Collector s Office START Enters request to cancel penalties or fees Current year penalties or fees? No Yes Tax Collector reviews, documents, and approves Resolves Issues in the System START Receives request to waive penalties and fees from non TTX sources Notifies Controller Staff of request to cancel penalties or fees Routes to Tax Collector s Office System Bill Paid? Yes Notifies Controller Staff of cancellation of penalties and/or fees No Reject request to cancel penalties END

58 CON 4.02 SF PTax: Controller Workshop (Roll Maintenance) Cancellation of Penalties and Fees (pg. 2/2) Controller Staff A Pg. 1 Processes cancellation request Cancels identified penalties and fees System B Pg. 1 Saves the information reflecting the cancellation of penalties and fees Refund? Yes No END CON 4.04

59 CON 4.03 SF PTax: Controller Workshop (Roll Maintenance) Special Charges Changes or Cancellations System Controller Staff Property Tax Manager START Receives or paper request from Tax Entity to change or cancel charge Scans request into the system Reviews parcel(s) to be changed in the system, including parcel Information and special charges Selects to calculate new special charge installment amounts for installments 1 and 2 Calculates new special charge installment amounts for installments 1 and 2 A Reviews, adjusts, and approves calculations and changes or cancellations in the system Displays for Controller Staff review and approval Reviews documents Routes to Property Tax Manager for review and approval Approves? No Documents issues in the system Routes to Controller Staff for revisions A Yes Documents approval in the system Refund? No Saves Special Charge Changes in the system New Bill or installment required? Yes Yes Processes refunds if needed CON 4.04 TTX 1.01/1.02 Secured / Unsecured Bill Generation Route to Tax Collector to generate updated bill No END

60 CON 4.04 SF PTax: Controller Workshop (Roll Maintenance) Refunds (pg. 1/2) System Controller Staff Property Tax Manager CON 4.01 CON 4.02 Identifies records marked for refunds from other processes Creates refund claim for each record including calculating refund amount based on known information CON 4.03 Sets claim status as declined, on hold, or pending as appropriate Logs into system and selects to process refund work queue Adds claims to Controller Staff refund work queue Verifies owner, affected parcel(s), refund amount and secured or unsecured bill Documents issues in the system Makes necessary adjustments Including editing and updating interest details No Approves? Reviews documents Adds refund reason details and notes (including specific Payees) Yes Documents approval in the system A Pg. 2

61 CON 4.04 SF PTax: Controller Workshop (Roll Maintenance) Refunds (pg. 2/2) System Tax Collector A Pg. 1 Determines refund recipient and updates the system Changes status of all processed claims to Approved and processes payments Determines any amounts due and any to withhold for other obligations Interfaces with accounting system to transfer refund information (less any amounts withheld) Applies any withheld amounts to the designated bills and updates records Is a new bill required? No Yes Routes to Tax Collector s Office to send new bill TTX 1.01/1.02 Secured / Unsecured Bill Generation End

62 CON 5.01 SF PTax: Controller Workshop (Apportionment and Distribution) Secured Apportionment CON 5.10 B Yes Recalculation needed? Property Tax Staff Selects to review returned apportionments Resolves issues and makes adjustments as necessary Yes No Reviews secured apportionment Reviews, edits, and confirms apportionment date and corresponding percentages Indicates to calculate secured apportionment amounts Reviews secured apportionment and calculations Issues identified or adjustments needed? No Approves secured apportionment System START Saves secured apportionment factors and secured tax collection data throughout the year Prompts Property Tax Staff to calculate secured apportionment amounts Monitors for secured apportionment dates Displays distribution schedule for review Calculates apportionment amounts for the secured roll based on preconfigured business rules N 1 Displays current and prior year apportionments for review Routes to Property Tax Manager for review CON 5.10 A NOTES 1. Business rules include: secured apportionment factors, 1% apportionment factor, direct levy taxes, GOB amounts, state unitary factor, unitary bond debt factors, penalties, costs, and fees, and County administrative costs

63 CON 5.02 SF PTax: Controller Workshop (Apportionment and Distribution) Unsecured Apportionment CON 5.10 B Yes Recalculation needed? Property Tax Staff Selects to review returned apportionments Resolves issues and makes adjustments as necessary Yes No Reviews unsecured apportionment Reviews, edits, and confirms apportionment date and corresponding percentages Indicates to calculate unsecured apportionment amounts Reviews unsecured apportionment and calculations Issues identified or adjustments needed? No Approves unsecured apportionment System START Saves unsecured apportionment factors and unsecured tax collection data throughout the year Prompts Property Tax Staff to calculate unsecured apportionment amounts Monitors for unsecured apportionment dates Displays distribution schedule for review Calculates apportionment amounts for the unsecured roll based on preconfigured business rules N 1 Displays current and prior year apportionments for review Routes to Property Tax Manager for review CON 5.10 A NOTES 1. Business rules include: unsecured apportionment factors, 1% apportionment factor, direct levy taxes, GOB amounts, and penalties, costs, and fees

64 CON 5.03 SF PTax: Controller Workshop (Apportionment and Distribution) Supplemental Apportionment CON 5.10 B Yes Recalculation needed? Property Tax Staff Selects to review returned apportionments Resolves issues and makes adjustments as necessary Yes No Reviews supplemental apportionment Reviews, edits, and confirms apportionment date and corresponding percentages Indicates to calculate supplemental apportionment amounts Reviews supplemental apportionment and calculations Issues identified or adjustments needed? No Approves supplemental apportionment System START Saves supplemental apportionment factors and supplemental tax collection data throughout the year Prompts Property Tax Staff to calculate supplemental apportionment amounts Monitors for supplemental apportionment dates Displays distribution schedule for review Calculates apportionment for the supplemental roll based on preconfigured business rules N 1 Displays current and prior year apportionments for review Routes to Property Tax Manager for review CON 5.10 A NOTES 1. Business rules include: supplemental apportionment factors, 1% apportionment factor, GOB amounts, penalties, costs, and fees, and administrative fees SF PTAX DRAFT FOR INTERNAL REVIEW ONLY

65 CON 5.04 SF PTax: Controller Workshop (Apportionment and Distribution) HOPTR Exemption Claim to State (pg. 1/2) B Pg. 2 Property Tax Staff Resolves issues and makes adjustments as necessary Yes Indicates to run current year s homeowners exemptions process Reviews HOPTR claim information Issues identified or adjustments needed? No Approves HOPTR claim information System START Monitors for HOPTR dates as preconfigured in the system Prompts Property Tax Staff to run current year s homeowners exemptions process Runs a query of updated exemptions from the Assessor s system Auto populates HOPTR claim form and displays HOPTR claim information for review Routes to Property Tax Manager for review A Pg. 2

66 CON 5.04 SF PTax: Controller Workshop (Apportionment and Distribution) HOPTR Exemption Claim to State (pg. 1/2) System Property Tax Manager A Pg. 1 Reviews HOPTR claim form Issues identified? Yes Documents issues in the system Routes to Property Tax Staff for corrections No Approves HOPTR claim form Manages HOPTR claim form approval process with the Controller B Pg. 1 Sends HOPTR claim information to appropriate State entity/agency END

67 CON 5.05 SF PTax: Controller Workshop (Apportionment and Distribution) HOPTR Apportionment Property Tax Staff Checks to make sure HOPTR funds have been collected before initiating apportionment (receive 4x per year) System START Places a hold on the distribution of funds related to the calculated HOPTR apportionment Monitors for HOPTR apportionment dates Prompts Property Tax Staff to check for the HOPTR reimbursement from the State Saves the fund amount and releases the hold on the appropriate apportionment Generates journal entry information to transmit to City financial accounting system END NOTES 1. Business rules include: 1% apportionment factor, 1% supplemental factor, and GOB amounts

68 CON 5.06 SF PTax: Controller Workshop (Apportionment and Distribution) Teeter Note Creation and Approval Property Tax System Property Tax Manager Staff START Identifies properties for inclusion in the Teeter process based on preconfigured business rules Reviews and adjusts (optional) Teeter process properties Prompts Property Tax Staff to review potential Teeter accounts Reviews Teeter tax changes, resolves any issues, and approves the tax changes Saves updated list of Teeter properties and displays Teeter tax changes from prior years Reviews Teeter information Routes to Property Tax Manager for review Issues identified? Yes Documents issues in the system Routes to Property Tax Staff for corrections No Approves Teeter information Manages Teeter note approval process by the Treasurer and the Budget Office Documents in the system when approvals have been received Calculates Teeter note amount based on the Teeter list Generates journal entry information to transmit to City financial accounting system END NOTES 1. Business rules include: 1% apportionment factor, 1% supplemental factor, and GOB amounts

69 CON 5.08 SF PTax: Controller Workshop (Apportionment and Distribution) School District ERAF Entitlement and Excess ERAF Selects to recalculate ERAF apportionment Yes Recalculation needed? Property Tax Staff CON 5.10 B Resolves issues and makes adjustments as necessary Yes No Selects to review ERAF apportionment Reviews ERAF apportionment and calculations Issues identified or adjustments needed? No Approves ERAF apportionment System START Monitors for ERAF apportionment dates Calculates ERAF apportionment based on preconfigured business rules N 1 Prompts Property Tax Staff to review ERAF apportionment Displays ERAF apportionments for review Routes to Property Tax Manager for review CON 5.10 A NOTES 1. Business rules include: ERAF apportionment factors, backfilling VLF from ERAF

70 CON 5.09 SF PTax: Controller Workshop (Apportionment and Distribution) Generate ERAF Reimbursement Claim (pg. 1/2) Property Tax Staff Reviews reimbursement claim information Will State fund the shortfall? No Documents in the system that State will not fund the shortfall Yes Adds notes and selects to generate the reimbursement files B Pg. 2 Reviews the reimbursement files, adds commentary, and edits values as necessary START Generates and sends notification letters to Taxing Agencies that shortfall will not be funded Generates reimbursement files and displays for review Routes to Property Tax Manager for review A Pg. 2 System Tracks key ERAF dates and ERAF collections Evaluates if ERAF is able to fully fund Triple Flip and/or VLF according to preconfigured business rules ERAF shortfall? Yes Prompts Property Tax to generate ERAF reimbursement claims END No END

71 CON 5.09 SF PTax: Controller Workshop (Apportionment and Distribution) Generate ERAF Reimbursement Claim (pg. 2/2) System Property Tax Manager A Pg. 1 Reviews ERAF reimbursement claim Issues identified? Yes Documents issues in the system Routes to Property Tax Staff for corrections No Approves ERAF reimbursement claim Saves and finalizes ERAF reimbursement claim Sends ERAF reimbursement claim information to appropriate State entity/agency Generates and sends notification letters to Taxing Agencies that the shortfall will be funded END B Pg. 1

72 CON 5.10 SF PTax: Controller Workshop (Apportionment and Distribution) Apportionment Review and Approval CON 5.01 A CON 5.02 A CON 5.03 A CON 5.07 A CON 5.08 A CON 5.11 A Property Tax Manager Reviews apportionment and calculations Issues identified? No Approves apportionment Yes Documents issues in the system System Routes to Property Tax Staff for corrections Apportionment (multiple) B Saves and finalizes apportionment calculations Generates journal entry information to transmit to City financial accounting system END N 1 NOTES 1. Based on apportionment being reviewed (see start)

73 CON 5.11 SF PTax: Controller Workshop (Apportionment and Distribution) Tax Increment for RDA or IFD (pg. 1/2) Property Tax Staff Creates new IFD with indicated properties Configures new IFD base year and apportionment calculation Selects to review RDA or IFD apportionment A Pg. 2 System START Receives notification from the Assessor s system about properties for inclusion in a new IFD Prompts Property Tax Staff to create IFD with indicated properties Prompts Property Tax Staff to set IFD base year and apportionment calculation START Saves IFD base year and apportionment calculation for new IFD Monitors for RDA or IFD apportionment dates Prompts Property Tax Staff to review RDA or IFD apportionment

74 CON 5.11 SF PTax: Controller Workshop (Apportionment and Distribution) Tax Increment for RDA or IFD (pg. 2/2) CON 5.10 B Property Tax Staff Reviews included properties and previously configured calculation Adjustments to included properties? Yes No Adjustments to apportionment calculation? Yes No Confirms to conduct RDA or IFD apportionment Yes Changes required? No Approves apportionment Makes adjustments as necessary and documents reasoning Makes adjustments as necessary and documents reasoning System A Pg. 1 Displays included properties and apportionment calculation Saves updated RDA or IFD properties Saves updated apportionment calculation Calculates RDA or IFD Tax Increment (tax revenue growth over base year) Calculates RDA or IFD apportionment based on preconfigured business rules Displays apportionment and calculations Routes to Property Tax Manager for review CON 5.10 A

75 ATTACHMENT C: CONTROLLER USE CASES RFP #TTX Attachment C Controller Use Cases Page i of 74

76 Table of Contents Presentation and Methodology General Controller Activities Background Use Cases Funds and Rates Background Use Cases Calculations, Estimates, and Reviews Background Use Cases Roll Maintenance Background Use Cases Use Case: Refunds Apportionment and Distribution Background Use Cases RFP #TTX Attachment C Controller Use Cases Page ii of 74

77 Presentation and Methodology Each Use Case detailed below is a high-level representation of the interactions between an actor and the System. When preconditions have been met and the use case is triggered, the actor will follow the use case flow until the post condition or alternative flow is completed. RFP# XXX Attachment C Controller Use Cases Page 1 of 74

78 1.0 General Controller Activities 1.1 Background Introduction Scheduling, calendars, templates, correspondence, data, and calculations are all foundational functionality for conducting Controller activities. These functions will be used repeatedly by all Property Tax Staff across all areas of Controller business. These functions will integrate with each other, as well as with workflow functionality to support business activities. These functionalities will be available to all users in both pre-configured as well as ad hoc capacities. Specific authorized users will have additional permissions beyond general users to modify and create new pre-configured schedules, templates, and calculations as required to conduct business functions Overview of Use Cases, Actors, and Triggers for General Controller Functions Table 1. Overview of Use Cases, Actors, and Triggers for General Controller Functions Use Case Name Actor Trigger Description Scheduling / Calendars Templates / Correspondence Data and Calculations Property Tax Staff Property Tax Staff Property Tax Staff The property tax schedule/calendar needs to be updated/changed There is a new template that needs to be input into the system A template in the system needs to be updated The system has conducted a calculation Controller property tax staff set and/or update property tax events and appropriations schedules Controller property tax staff create and/or update templates for correspondences and notices Controller property tax staff reviews calculations conducted in the system RFP# XXX Attachment C Controller Use Cases Page 2 of 74

79 1.2 Use Cases Use Case: Scheduling / Calendars Actor Property Tax Staff Purpose and Objectives Scheduling and calendar functionality will be used by Property Tax Staff for multiple areas of business. Annual property tax events and apportionment schedules will be updated both annually and throughout the year. Associated reminder dates will be preconfigured around these dates as well. Scheduling and calendar functionality will also involve monitoring for actions associated with key dates and generating associated reminders and notices. Scheduling and calendar functionality will also tie to the creation and routing of workflow items. Trigger Event(s) The property tax schedule/calendar needs to be updated/changed Precondition(s) There is an initial property tax calendar in the system Post condition(s) The system has saved the updates to the property tax calendar and prompts activities according to schedule Associated Use Cases NA Use Case Flow 1. Property tax staff enters the system and selects to update the property tax schedule due to an update to the annual property tax events and/or apportionment schedule a. The discovery of an update could come through a variety of means, including, but not limited to: i. Annual review of property tax events and apportionment schedule ii. Addition, subtraction, or modification of an event or activity 2. The system displays the current property tax schedule 3. Property tax staff updates the current property tax schedule a. Potential updates include, but are not limited to: i. Adding an event, activity, or reminder ii. Removing an event, activity, or reminder iii. Changing the date of an event, activity, or reminder b. Staff should be able to indicate various attributes related to the event, activity or reminder, including, but not limited to: i. Type of event, activity, or reminder ii. Actor(s) (staff, agencies, special districts, etc.) iii. Priority RFP# XXX Attachment C Controller Use Cases Page 3 of 74

80 iv. Deadline v. Notice date(s) vi. Type of notice ( , system pop-up, etc.) 4. The system saves the updated calendar and monitors for key dates according to the updated schedule a. The system saves an audit trail of changes to key dates including, but not limited to: i. Previous date ii. Name of system user who made the change 5. The system generates notices according to the updated calendar and sends them to the designated recipient(s) per the selected notice type(s) 6. The system monitors to ensure that the actor(s) have completed the scheduled action a. If the actor completes the action within a pre-configured time, the process ends b. If the actor does not complete the action within a specified time, the system sends another notice to the actor i. If the actor completes the task within a pre-configured time, the process ends ii. If the actor does not complete the activity within a pre-configured time, the system should notify the Controller Property Tax Staff RFP# XXX Attachment C Controller Use Cases Page 4 of 74

81 1.2.2 Use Case: Templates / Correspondences Actor Property Tax Staff Purpose and Objectives Template and Correspondence functionality will be used by Property Tax Staff for multiple areas of business. Templates will be saved in the system for use in general correspondence and official notifications. The system will have the capability to populate these templates with any data available in the system. Authorized users will have the capability to update templates and edit individual notifications as necessary. Trigger Event(s) There is a new template that needs to be input into the system A template in the system needs to be updated Precondition(s) Users have been given the permission to update appropriate templates and notices Post condition(s) The template has been updated/added in the system for use in future correspondences Notifications have been sent as selected by system users Associated Use Cases NA Use Case Flow 1. Property tax staff enters the system to create or update a correspondence or official notification template in the System a. If the staff is updating a current template, the system displays the current template for review 2. Property tax staff creates or updates the correspondence or official notification a. Updates include, but are not be limited to: i. Correspondence wording ii. Associated event iii. Data fields iv. Review process v. Recipient(s) vi. Associated attachment(s) or report(s) 3. The system saves the new or updated template for future use a. Prior year versions of templates will remain in the system for reference and other uses RFP# XXX Attachment C Controller Use Cases Page 5 of 74

82 4. The system receives notice to populate the template with the pre-configured data. The notice to populate the template can come through a variety of sources, including, but not limited to: a. Pre-configured schedule b. Associated Event c. Staff initiation 5. The system generates all the correspondences or notices by populating the preconfigured fields with the appropriate data for the pre-configured recipients a. If the template requires staff review, the system will route the populated correspondences to the property tax staff s work queue for review i. The property tax staff will select to review the correspondences ii. The system will display the populated correspondences iii. Property tax staff will review, adjust (if necessary), and approve the correspondences 6. The system will send the generated correspondences to the selected recipients a. The system will be able to generate multiple types of correspondence including, but not limited to: i. Hard copy letters with associated barcodes if selected ii. b. The system will be able to assist with returned including generating an exception report of returned s c. The system will enable authorized users to update addresses and select to resend the correspondence to the updated address RFP# XXX Attachment C Controller Use Cases Page 6 of 74

83 1.2.2 Use Case: Data and Calculations Actor Property Tax Staff Purpose and Objectives Data and Calculations functionality will be used by Property Tax Staff for multiple areas of business. Calculations functionality will be used for applying tax rates and apportioning collected taxes, as well as other preconfigured calculations as necessary for Controller activities. Authorized users will have the permission to preconfigure calculations for use by all staff performing relevant work. A smaller portion of authorized users will have additional permission to modify the preconfigured calculations as necessary. Controller functions require that the values and calculations for any system calculations are available for view. Property Tax Staff may also adjust system-calculations and add annotations to any calculations as necessary. Trigger Event(s) The system has conducted a calculation Precondition(s) Initial calculations for annual activities are configured in the system Users have been given the permission to update calculations Post condition(s) Property tax staff have reviewed and approved calculations in the System Associated Use Cases NA Use Case Flow 1. The system conducts calculations according to preconfigured business rules 2. The system notifies Property Tax Staff that the calculations are ready for review 3. Property Tax Staff select to review the calculations a. The system displays the values and calculations 4. Property Tax Staff review the calculations and values 5. Property Tax Staff determine if any changes or adjustments to the calculations are required a. If Property Tax Staff determine that changes or adjustments to the calculations are required, Property Tax Staff make the necessary updates and/or adjustments i. The system prompts Property Tax Staff to add notations about why the system-generated calculations were adjusted ii. Property Tax Staff add notations to the calculation iii. The system prompts Property Tax Staff to indicate whether to save the reconfigured calculation for future use iv. Property Tax Staff indicates whether to save the reconfigured calculation for future use v. Property Tax Staff select to recalculate the calculation RFP# XXX Attachment C Controller Use Cases Page 7 of 74

84 vi. The process continues at vii. Step 1 b. If Property Tax Staff determine that no changes are required, Property Tax Staff add notations as necessary to the calculation 6. Property Tax Staff approve the calculations in the system a. The system saves the calculations and values, including any annotations and adjustments RFP# XXX Attachment C Controller Use Cases Page 8 of 74

85 2.0 Funds and Rates 2.1 Background Introduction Tax Accounts The Controller s Office is responsible for maintaining property tax accounts. There are approximately 300 tax accounts and growing. The main types of tax accounts are Base Prop 13 Rate (1%), Debt Service Override, and Special Assessment, although there are numerous accounts maintained for various reasons that do not fit these categories Tax Rates The Controller s Office is also responsible for calculating and maintaining accurate Tax Rates. Tax Rates can change from year to year as new tax proposals and policies are implemented or changed. A large majority of taxes collected in California are ad valorem or value-based property taxes. These include the 1 percent rate and voter-approved debt rates. The 1 percent rate is equal to 1 percent of the assessed value of a property General Obligation Bonds Counties and other taxing entities are able to sell voter-approved general obligation bonds. Ad valorem property taxes are used to pay the annual principal and interest (debt service) due on general obligation bonds and will continue until the bonds have been fully paid or refunded Special Assessments In addition to ad valorem taxes based on property value, fixed fee Special Assessments may also be applied to specific parcels as a portion of an annual property tax bill. Special Assessments may only be levied when municipal districts and agencies are given specific authority to do so. These benefit fees are assessed by local taxing agencies to fund services and local projects, including community infrastructure improvements like schools, fire departments, and police. The Controller s Office performs the ministerial duties related to these Special Assessments including tracking which properties are charged each roll year and what collected amounts have been distributed for each Special Assessment. RFP# XXX Attachment C Controller Use Cases Page 9 of 74

86 2.1.2 Overview of Use Cases, Actors, and Triggers for Funds and Rates Table 2. Overview of Use Cases, Actors, and Triggers for Funds and Rates Use Case Name Actor Trigger Description New Special Assessments Special Assessments Updates and Annual Process Segregation of Tax Bill Roll Extension Calculate 1% Rate Calculate Unitary / Unitary-Railroad Debt Service New Bond Property Tax Staff Special Assessment Agencies Property Tax Staff Property Tax Staff Property Tax Staff Property Tax Staff Property Tax Staff Approved documents (e.g. legal authority documentation, hold harmless contract, etc.) have been received from a Special Assessments Agency Triggered as scheduled in the system Updates initiated by Special Assessment Agencies The system receives a request from the Assessor s Office to segregate a tax bill The Assessor s Roll is completed The State Board Roll is finalized Initiated by Property Tax Staff Initiated by Property Tax Staff Property Tax Staff receive annual principal and interest due debt service schedule. Records are created for new special assessments Annual activation of special assessments by Special Assessment Agencies Tax Bills have been segregated appropriately The Tax Roll is extended based on Assessor Roll and State Board Roll data Calculation of the 1% Rate Calculation of the Unitary / Unitary-Railroad Debt Service Creation of new bonds and updating of the tax rate to reflect the bond RFP# XXX Attachment C Controller Use Cases Page 10 of 74

87 2.2 Use Cases Use Case: New Special Assessments Actor(s) Property Tax Staff Purpose and Objectives In addition to Ad Valorem taxes, Special Assessments (or direct charges) may also be applied to parcels as another component of an annual property tax bill. Special Assessments are benefit fees assessed by local taxing agencies to fund services and local projects, liens for unpaid bills from taxing entities, or other direct charges as allowed by California law. Special Assessments may only be levied when municipal districts and agencies are given specific legal authority to do so. When Special Assessments are levied, relevant tax agencies must provide required information to the Controller s Office. Special Assessments Agencies may request for the City to add new special assessment charges on the property tax bills by providing the appropriate documentation to the Controller s Office. Property Tax Staff complete a special assessment record in the system for each new special assessment. Trigger Event(s) Approved documents (e.g. legal authority documentation, hold harmless contract, etc.) have been received from a Special Assessments Agency Precondition Special assessment record template is set up in the system Post condition New special assessment records have been set up in the system Associated Use Cases Special Assessments Annual Process Use Case Flow 1. Property Tax Staff receive approved documents for setting up a new special assessment from the Special Assessments Agency 2. Property Tax Staff log into the system and select to create a new special assessment a. The system displays the special assessment record template 3. Property Tax Staff complete the basic record in the system a. Data elements for completing the basic record include, but are not limited to: i. Name ii. Two contacts iii. Contact information iv. Tax year v. Resolution/ballot item confirmation vi. Resolution / Ordinance Number (if applicable) vii. Yearly Resolution? RFP# XXX Attachment C Controller Use Cases Page 11 of 74

88 1. This should be a yes or no answer. Some special assessments require yearly resolutions and some only have an initial resolution viii. Expiration date of this direct charge/special assessment 4. The system assigns a special assessment number 5. The system displays the completed special assessment record for review 6. Property Tax Staff review the new special assessment record and indicates to save 7. The system saves the special assessment record 8. The system generates and sends a notice to the Special Assessment Agency a. Information in the notice to the Special Assessment Agency includes, but is not limited to: i. Special assessment number ii. Special assessment description to appear on the bills iii. Information about any set-up fees iv. Cost recovery formula for annual levy v. Cost recovery if there are roll corrections/changes vi. Confirmation of telephone number to appear on the bills for taxpayers to call with any questions regarding the charge RFP# XXX Attachment C Controller Use Cases Page 12 of 74

89 2.2.2 Use Case: Special Assessments Updates and Annual Process Actor(s) Special Assessment Agencies Purpose and Objectives Special Assessment Agencies are required to provide special assessment information to the Controller s Office annually. They are prompted with an and are able to provide the required information through a web portal. Special Assessment Agencies are also able to update special assessment information as needed throughout the year. Trigger Event(s) Triggered as scheduled in the system Precondition Special Assessments have been saved in the system Special Assessment Agencies have web portal accounts Post condition Special Assessments have been updated in the system Associated Use Cases New Special Assessments Use Case Flow 1. The system sends an annual on a preconfigured date to Special Assessment Agencies requesting that they activate their account a. The request includes, but is not limited to: i. Activation of account for new fiscal year ii. Special assessment charges for the year iii. Submission due date iv. Link to portal for self-service entry/upload of the new fiscal year's direct charges/special assessments 2. The Special Assessment Agency logs into the web portal, creates an account (if necessary), and adds their vendor number a. The vendor number is assigned from the Controller Accounting Operations Systems Division (AOSD) 3. The web portal displays any Special Assessment information associated with the Special Assessment Agency 4. The Special Assessment Agency enters, updates, or uploads special assessment information a. Information entered for each parcel charge includes, but is not limited to: i. Special assessment number ii. Roll Year iii. Parcel Number RFP# XXX Attachment C Controller Use Cases Page 13 of 74

90 iv. Charge 5. The system evaluates the data sent by the Special Assessment Agency for any errors a. If the system cannot match an identified parcel with a parcel in the system, the system notifies the Special Assessment Agency. The system will provide the Special Assessment Agency with the ability to update any errors or to proceed with accepted data i. If the Special Assessment Agency updates data, the process continues at Step 4 6. The system prompts the Special Assessment Agency to confirm or update the resolution number 7. The system prompts the Special Assessment Agency to confirm or update the phone number to be printed on tax bills for taxpayers to call with any questions regarding the charge. 8. The system saves the special assessment information 9. The system saves the special assessment record 10. The system calculates the amount to be charged or withheld from the special assessment distribution based on a preconfigured special assessment cost recovery fee a. Fees are calculated based on data including, but not limited to: i. Number of parcels ii. Tiered cost recovery charges (e.g. the charge for the first 10,000 parcels is $1.00 per parcel, the next 40,000 may be $0.75, and the next 50,000 may be $0.40, etc.) iii. Fixed fee plus an added charge per parcel 11. The system displays the estimated amount to be charged or withheld from the special assessment distribution 12. The system notifies Property Tax Staff of the updated special assessment information Alternate Case Flow: Special Assessment Updates 1. The Special Assessment Agency logs into the web portal as needed 2. The system displays the current special assessment information a. The system provides the Special Assessment Agency with search or filter functions as well as the ability to make changes on individual parcels or in bulk 3. The Special Assessment Agency updates or uploads the special assessment information as needed 4. The system will reject updates to past tax roll years charges that were already paid. The system also rejects increases (as opposed to decreases) of the direct charge amount for a parcel. 5. The system saves the updated approved special assessment information and provide an audit (success/failure for all submitted in bulk changes) and error (only the failures among bulk changes submitted) report. RFP# XXX Attachment C Controller Use Cases Page 14 of 74

91 6. The system calculates the amount to be charged or withheld from the special assessment distribution based on any applicable change charges 7. The system displays the estimated amount to be charged or withheld from the special assessment distribution 8. The system notifies Property Tax Staff of the updated special assessment information RFP# XXX Attachment C Controller Use Cases Page 15 of 74

92 2.2.3 Use Case: Segregation of Tax Bill Actor(s) Property Tax Staff Purpose and Objectives In the event that a parcel has been split after a tax bill has been sent, the tax bill may also need to be segregated to the new child parcels. Requests to segregate a tax bill come from the Assessor s Office will all required data to segregate the tax bill. Special Assessment Agencies Direct charges will be removed from the original bill and may be re-billed via escape tax bills (pending agreement with Tax Collector to collect such bills we have never issued escape bills solely for special assessments in the past, but could do so). Trigger Event(s) The system receives a request from the Assessor s Office to segregate a tax bill Precondition System is able to receive segregation of tax bill requests from the Assessor s Office Special Assessment Agencies have web portal accounts Post condition Outstanding tax bills are segregated appropriately to child parcels in the System Associated Use Cases N/A Use Case Flow 1. The system receives a segregation of tax bill request from the Assessor s Office including required information prior to May 15 th (otherwise, the segregation request is rejected by Controller). a. Required information includes, but is not limited to: i. Exact assessment amounts assigned to the new parcel numbers that should sum to the total of the original tax bill s assessment amounts. 2. The system associates the segregation of tax bill request with the correct accounts and bills in the system pending Property Tax Staff approval 3. The system prompts Property Tax Staff to review and complete the tax bill segregations 4. Property Tax Staff review the tax bill segregation and confirm to segregate 5. The system marks the indicated tax bill as pending retirement 6. The system creates new tax bills and activates the new bills with only the ad valorem property tax (no special assessment/direct charges). a. The bills should be enrolled immediately following activation, unless it conflicts with Tax Collector s new tax bill enrollment suspension dates in which case they should be enrolled at the next opportunity. 7. Property Tax Staff select to notify Special Assessment Agencies to notify the special charges for the original tax bill have been removed because the parcel has been retired mid-year. RFP# XXX Attachment C Controller Use Cases Page 16 of 74

93 a. Depending upon Controller and Tax Collector, the City and County may offer opportunity to issue an escape tax bill to the new, child parcel(s) for an amount submitted by the Special Assessment Agencies by a certain date. 8. The system generates and sends notifications to Special Assessment Agencies to confirm the special charges 9. The system tracks confirmation of special charges a. If Special Assessment Agencies have not confirmed the charges by a preconfigured date, the system generates and sends a reminder to confirm the special charges 10. The system activates the new escape bills for the special assessments/direct charges once the Special Assessment Agencies confirm (and also assuming the Tax Collector and Controller agree to allow for these items to be billed via escape) or else, the taxing entity will need to invoice property owners on their own outside of the secured tax rolls of the City and County of San Francisco. 11. The system enrolls all confirmed escape bills on a preconfigured date in the system RFP# XXX Attachment C Controller Use Cases Page 17 of 74

94 2.2.4 Use Case: Roll Extension Actor Property Tax Staff Purpose and Objectives Property Tax Staff must review the Assessor s Roll and the State Board Roll prior to applying tax rates and generating the Tax Rolls. The Tax roll is extended as scheduled once final roll corrections and levies are updated in the system. The Tax Rolls are then routed to the Tax Collector s Office for bill generation and collection. Trigger Event(s) The Assessor s Roll is completed The State Board Roll is finalized Precondition The Assessor s Roll is able to be transmitted to the system The State Board Roll is able to be transmitted to the system Post condition The Tax Roll has been extended and routed to the Tax Collector s Office Associated Use Cases Use Case Flow 1. The system receives finalized assessment rolls including, but not limited to: a. Assessment Roll from the Assessor s Office by July 1st b. Final State Board Roll for unitary and other state assessed property from the state c. Corrections up until a certain cutoff date determined collaboratively by Controller and Tax Collector (third Monday in August, usually) 2. The system prompts Property Tax Staff to review roll data and check totals a. Roll data from the Assessor s system to be confirmed includes, but is not limited to: i. Land ii. Structure iii. Fixtures iv. Personal Property v. Homeowners Exemption vi. Other Exemptions, as defined by type of assessment (e.g. local secured, State/Board Roll secured, unsecured, etc.) 3. Property Tax Staff select to review roll data and check totals 4. The system displays discrepancies and variances for Property Tax Staff review based on preconfigured business rules RFP# XXX Attachment C Controller Use Cases Page 18 of 74

95 a. Reviewed roll data includes, but is not limited to: i. Volume number ii. Block number iii. lot number iv. Tax Rate Area identifier v. Neighborhood Code vi. Roll Year vii. Location/Street Address viii. Apartment/Suite Number ix. Zip Code x. Status Code (Taxable, Non-Taxable, Government, etc) xi. Class Code (Single Family Home, Commercial, Multi-Unit, etc) xii. Use Code xiii. Land assessed value xiv. Improvement/Structure assessed value xv. Fixtures assessed value xvi. Personal Property assessed value xvii. Homeowners exemption value xviii. Other Exemptions value xix. Owner Line 1 xx. Owner Line 2 xxi. Mailing Address1 xxii. Mailing Address2 xxiii. Mailing Address 3 xxiv. Mailing Address Zip Code 5. Property Tax Staff evaluate if any changes are necessary a. If Property Tax Staff identify that changes are needed, Property Tax Staff research discrepancies and resolve them in the system i. Property Tax Staff select to review roll data and check totals b. If Property Tax Staff do not identify any necessary changes, the process continues 6. Property Tax Staff ensure that required tax rates are updated a. Required tax rates include, but are not limited to: i. 1% ad valorem ii. Bond rates RFP# XXX Attachment C Controller Use Cases Page 19 of 74

96 7. Property Tax Staff select to apply the tax rate(s) and approves generating the Tax Roll(s) pending final roll updates a. Tax Roll data includes, but is not limited to: i. Special Assessments ii. Secured iii. Secured Escapes iv. Total Unsecured billed as of date and line items 8. Property Tax Staff ensure that final roll updates have been assembled or received a. Final roll updates include: i. Ad valorem and district charges/special assessments ii. Roll corrections from the Assessor s Office 9. Property Tax Staff ensure that the tax rates have been approved by the Board of Supervisors a. If different tax rate(s) are approved, Property Tax Staff updates the tax rate(s) in the system to the approved tax rate(s) i. The process continues at Step 7 b. If the tax rate(s) are not been approved, Property Tax Staff wait for tax rate approval c. If the tax rate(s) have been approved, the process continues 10. Property Tax Staff confirm to extend the tax roll 11. The system extends the tax roll 12. The system populates and sends an annual Charge to Tax Collector letter to the Tax Collector s Office based on a preconfigured template in the system a. The Charge to Tax Collector letter information includes, but is not limited to: i. Roll type ii. Roll year iii. Totals to be collected broken out by tax roll type iv. Itemized special assessments by totals 13. The system routes the tax roll(s) to the Tax Collector s Office to generate bills a. The process continues at Use Case: TTX: Bill Maintenance RFP# XXX Attachment C Controller Use Cases Page 20 of 74

97 2.2.5 Use Case: Calculate 1% Rate Actor Property Tax Staff Purpose and Objectives Annually, whoever owns taxable property on January 1 (the lien date) becomes liable for a tax calculated at 1 percent of the taxable value of the property. The 1 percent is among the rates that the Controller s Office is responsible for maintaining. Trigger Event(s) Initiated by Property Tax Staff Precondition All required figures for the calculation are accepted/approved in the system The calculation has been configured in the system Post condition The 1% rate has been calculated Associated Use Cases Use Case Flow 1. Property Tax Staff selects to initiate the 1% calculation 2. The system ensures that all required figures for the calculation are accepted/approved in the system 3. The system calculates the Prior Year revenue based on current year tax areas 4. The system multiples the change in current year assessed values by pre-eraf AB8 factors 5. The system adds current year revenue growth to the new prior year gross revenue 6. The system calculates and includes adjustments including, but not limited to: a. Special Jurisdiction Augmentation Fund b. RDA adjustments 7. The system displays the calculation for Property Tax Staff review 8. Property Tax Staff review, edit, and approve the current year gross revenue 9. The system calculates the growth percentages for each jurisdiction 10. The system displays the calculation for Property Tax Staff review 11. Property Tax Staff review, edit, and approve the growth percentages 12. The system retrieves new prior year adjusted ERAF amount and applies the new growth percentages to ERAF 13. The system adds the new current adjusted RAF amount to the current year gross revenue 14. The system totals the net revenue across the city RFP# XXX Attachment C Controller Use Cases Page 21 of 74

98 15. The system divides each tax area s net revenue by the total net revenue to create tax rate factors 16. The system evaluates whether the 1% supplementals have been calculated a. If the 1% supplementals have not been calculated, the system retrieves all relevant calculations and data for the given roll year i. The process continues 17. The system displays the calculations for Property Tax Staff review 18. Property Tax Staff verify the rate and valuations are correct in the system for all accounts a. If Property Tax Staff do not approve the rate and values, Property Tax Staff correct the source information and determine any necessary adjustments 19. Property Tax Staff approve the rate and values in the system 20. The system saves the final rate and values RFP# XXX Attachment C Controller Use Cases Page 22 of 74

99 2.2.6 Use Case: Calculate Unitary / Unitary-Railroad Debt Service Actor Property Tax Staff Purpose and Objectives The unitary / unitary-railroad debt service requirements are among the rates that the Controller s Office is responsible for maintaining. Property Tax Staff initiate the calculation which is then conducted by the system and approved by property Tax Staff. Trigger Event(s) Initiated by Property Tax Staff Precondition All required figures for the calculation are in the system The calculation has been configured in the system Post condition Unitary / Unitary-Railroad Debt Service has been calculated Associated Use Cases Use Case Flow 1. Property Tax Staff selects to initiate the unitary / unitary-railroad debt service calculation 2. The system determines the prior year unitary amount billed for debt service (billed, not collected) 3. The system compounds to current year debt required 4. The system determines the change factor 5. The system applies the prior year change factor to the prior year 6. The system determines the current year state debt service rate 7. The system displays the calculation for Property Tax Staff review 8. Property Tax Staff reviews and approves the calculation 9. The system calculates the growth percentages for each jurisdiction 10. The system displays the calculation for Property Tax Staff review 11. Property Tax Staff verify that the rate and valuations are correct in the system for all accounts a. If Property Tax Staff do not approve the values, Property Tax Staff correct the source information and determine any necessary adjustments 12. Property Tax Staff approve the values in the system 13. The system saves the final values RFP# XXX Attachment C Controller Use Cases Page 23 of 74

100 2.2.7 Use Case: New Bond Actor(s) Property Tax Staff Purpose and Objectives Property Tax Staff upload annual debt service information to the system to initiate the calculation of the override debt service property tax rate (factor above the Prop 13 base %). Tax rates are then recalculated to reflect the new debt and approved by Property Tax Staff. Trigger Event(s) Property Tax Staff receive debt documents Precondition The calculation has been configured in the system Post condition The tax rate has been updated to reflect the year s debt service schedule (principal and interest due on the various taxing entities issued voter-approved GO bonds). Associated Use Cases Debt service payment schedule Use Case Flow 1. Property Tax Staff indicate to run a new bond scenario 2. Property Tax Staff upload debt documents to the system a. Debt documents include, but are not limited to: i. Name of bond ii. Bond series iii. Principal due amount and date in new fiscal year iv. Interest due amount(s) and date(s) in new fiscal year v. Schedule 3. The system saves the updated information 4. The system calculates the new tax rate due to the addition of new debt 5. The system displays the new tax rate for Property Tax Staff review 6. Property Tax Staff review the tax rate and make adjustments as necessary a. Adjustments may include, but are not limited to: i. Updating BART G.O. Bond tax rate factor as provided by the BART Board 7. Property Tax Staff confirm the new tax rate 8. The system saves the tax rate pending leadership approval 9. The system pre-populates summary report approval documents with updated data and the updated tax rate 10. The system displays the summary report approval documents for Property Tax Staff review RFP# XXX Attachment C Controller Use Cases Page 24 of 74

101 11. Property Tax Staff edit and save the summary report approval documents 12. Property Tax Staff confirm that the tax rate has been approved by leadership a. If the tax rate has not been approved, Property Tax Staff resolve the issues identified by leadership 13. Property Tax Staff confirms leadership approval of the tax rate in the system 14. The system saves the new tax rate RFP# XXX Attachment C Controller Use Cases Page 25 of 74

102 3.0 Calculations, Estimates, and Reviews 3.1 Background Introduction The Auditor Controller s Office is responsible for estimating, calculating, administering, and apportioning the funds collected from a number of sources Unitary and Unitary Railroad Unitary property, such as power lines, cable, and railroads, cross multiple parcels, but are assessed as a single unit to the owner agency. Unitary properties are often owned by utility companies RPTTF The Redevelopment Property Tax Trust Fund (RPTTF) collects funds that were formerly distributed to the Redevelopment Agency (RDA). RPTTF is used to pay obligations listed on the the Recognized Obligation Payment Schedule (ROPS) as approved by the DOF, pass-through payments to local agencies, successor agency administrative costs, and the admin costs of the County in relation to the RDA. After these have been paid, any remaining monies in the RPTTF are distributed to the local taxing entities in the project area Overview of Use Cases, Actors, and Triggers for Calculations, Estimates, and Reviews Table 3. Overview of Use Cases, Actors, and Triggers for Calculations, Estimates, and Reviews Use Case Name Actor Trigger Description Apportionment Calculation and Review RPTTF Estimates and Actuals Part 1: County Estimate to Jurisdictions RPTTF Estimates and Actuals Part 2: ROPS Actuals RPTTF Estimates and Actuals Part 3: Pass- Throughs RPTTF Estimates and Actuals Part 4: Controller Admin RPTTF Estimates and Actuals Part 5: SCO Invoice Property Tax Staff Property Tax Staff Property Tax Staff Property Tax Staff Property Tax Staff Property Tax Staff Triggered by the system based on scheduled apportionment dates Triggered by the system as scheduled Property Tax Staff receive the DOF letter of determination Property Tax Staff update the apportionment activity dates when known Property Tax Staff receive the invoice for the total cost recovery bill Property Tax Staff receive the invoice for the total cost recovery bill Apportionment calculations are conducted to determine the collected taxes to be distributed to applicable funds ROPS estimates for RPTTF are estimated and reviewed ROPS components for RPTTF are estimated and reviewed Pass-throughs components for RPTTF are estimated and reviewed Controller Admin components for RPTTF are estimated and reviewed SCO Invoice components for RPTTF are estimated and reviewed RFP# XXX Attachment C Controller Use Cases Page 26 of 74

103 Use Case Name Actor Trigger Description RPTTF Preliminary Report and Summary by Tax Agency Property Tax Staff Initiated by the system once all preconfigured values for the period have been saved in the system RPTTF data is summarized and populated into report templates for distribution to the DOF and affected taxing agencies. RFP# XXX Attachment C Controller Use Cases Page 27 of 74

104 3.2 Use Cases Use Case: Apportionment Calculation and Review Actor(s) Property Tax Staff Purpose and Objectives Taxpayers begin to remit property tax payments once bills are received. These payments are collected by the Tax Collector s office in a variety of formats. These payments are kept in holding until the Controller s office calculates and distributes the amounts due to each fund. This process is known as apportionment. Each apportionment happens according to its own specific calendar and involves different calculations. Trigger Event(s) Triggered by the system based on scheduled apportionment dates Precondition Data requirements for each apportionment is preconfigured in the system Apportionment calculations are preconfigured in the system Journal entry information for transmittal to the City financial accounting system is preconfigured in the system Post condition Apportionment calculations have been completed Journal entries for apportionments have been generated and transmitted to the City financial accounting system Associated Use Cases N/A Use Case Flow 9. The system monitors for key apportionment dates as scheduled in the system a. Key apportionment dates include, but are not limited to: i. See provided apportionment schedule table 10. The system evaluations whether data required for the scheduled apportionment has been saved in the system a. Required data for an apportionment may include, but not be limited to: i. Collection ii. Tax year iii. Apportionment factors iv. Teeter (if needed) b. If the system identifies that data is missing, the system prompts Property Tax Staff to enter the missing data i. Property Tax Staff enter the missing data in the system ii. Property Tax Staff select to run the apportionment RFP# XXX Attachment C Controller Use Cases Page 28 of 74

105 iii. The process continues 11. The system calculates the apportionment according to preconfigured business rules 12. The system displays the apportionment and calculations for Property Tax Staff review 13. Property Tax Staff review the apportionment and calculations a. If Property Tax Staff identify that adjustments are required, Property Tax Staff makes the adjustments and adds any relevant notes i. Adjustment reasons may include, but not be limited to: 1. PTAF 2. Cost recovery items ii. The process continues at Step 2bii b. If Property Tax Staff identify no required adjustments, Property Tax Staff approve the apportionment i. The system routes the apportionment and calculations for Property Tax Manager review 1. If the Property Tax Manager identifies issues, the system returns the apportionment with comments to the Property Tax Staff a. The process continues at Step 5 2. If the Property Tax Manager approves the apportionment, the process continues 14. The system saves and finalizes the apportionment calculations a. The system generates journal entry information to transmit the apportionment to the City financial accounting system RFP# XXX Attachment C Controller Use Cases Page 29 of 74

106 3.2.4 Use Case: RPTTF Estimates and Actuals Part 1: County Estimate to Jurisdictions Actor Property Tax Staff Purpose and Objectives Property Tax Staff calculate and review the estimated Recognized Obligation Payment Schedule (ROPS) components for the Redevelopment Property Tax Trust Fund (RPTTF) apportionment calculation. Trigger Event(s) Triggered by the system as scheduled Precondition Tax increment calculations are saved in the system Estimated ROPS form is saved in the system Post condition Estimated ROPS form has been updated and sent to the State Associated Use Cases Use Case: RPTTF Estimates and Actuals Part 2: ROPS Actuals Use Case: RPTTF Estimates and Actuals Part 3: Pass-Throughs Use Case: RPTTF Estimates and Actuals Part 4: Controller Admin Use Case: RPTTF Estimates and Actuals Part 5: SCO Invoice Use Case: RPTTF Preliminary Report and Summary by Tax Agency Use Case Flow 1. The system initiates the County estimates to jurisdictions as scheduled in the system a. The system conducts any needed modifications to the base year numbers to determine the tax increment b. The system estimates the tax increment based on preconfigured business rules i. The estimated tax increment is inclusive of all roll changes for a given date range c. The system subtracts excepted/estimated Pass-Throughs and admin fees from the tax increment d. The system displays the calculations and any necessary inputs for Property Tax Staff review 2. Property Tax Staff review the calculations and provide any necessary additional inputs 3. Property Tax Staff review, edits, and approve estimates and calculations 4. Property Tax Staff select to save the values as Estimated ROPS a. The system routes the Estimated ROPS to the Property Tax Manager for review RFP# XXX Attachment C Controller Use Cases Page 30 of 74

107 i. If the Property Tax Manager identifies issues with the values, the Property Tax Manager notes the issues in the system for Property Tax Staff to resolve 1. Property Tax Staff review the values with Property Tax Manager notes 2. The process continues at Step 2 ii. If the Property Tax Manager approves the values, the process continues b. The system saves the form and initiates sending the form to the State via the required method RFP# XXX Attachment C Controller Use Cases Page 31 of 74

108 3.2.5 Use Case: RPTTF Estimates and Actuals Part 2: ROPS Actuals Actor Property Tax Staff Purpose and Objectives Property Tax Staff upload and reviews Recognized Obligation Payment Schedule (ROPS) components for the Redevelopment Property Tax Trust Fund (RPTTF) apportionment calculation. Trigger Event(s) Property Tax Staff receive the DOF letter of determination Precondition The system is interfaced with the Tax Collector system The system is interfaced with the Assessor system Post condition ROPS actuals have been reviewed and saved Associated Use Cases Use Case: RPTTF Estimates and Actuals Part 1: County Estimate to Jurisdictions Use Case: RPTTF Estimates and Actuals Part 3: Pass-Throughs Use Case: RPTTF Estimates and Actuals Part 4: Controller Admin Use Case: RPTTF Estimates and Actuals Part 5: SCO Invoice Use Case: RPTTF Preliminary Report and Summary by Tax Agency Use Case Flow 1. Property Tax Staff receive the DOF letter of determination 2. Property Tax Staff select to enter the letter of determination data and information into the system a. The system interfaces with the Tax Collector system to retrieve applicable collections data for the time period b. The system interfaces with the Assessor system to calculate a revised increment based on all roll changes to date c. The system displays the amount to be funded from RPTTF for Property Tax Staff review 3. Property Tax Staff review the amounts to be funded from RPTTF and add comments if applicable 4. Property Tax Staff determine if the amounts require any modification a. If Property Tax Staff determine that the amounts require modification, Property Tax Staff conduct the modifications and document the changes as needed i. The process continues at Step 2 b. If Property Tax Staff determine that the amounts do not require modification, Property Tax Staff enter key data and adjustments, including prior period adjustments, as necessary, and save the values RFP# XXX Attachment C Controller Use Cases Page 32 of 74

109 i. The process continues c. The system saves the updated record RFP# XXX Attachment C Controller Use Cases Page 33 of 74

110 3.2.6 Use Case: RPTTF Estimates and Actuals Part 3: Pass-Throughs Actor Property Tax Staff Purpose and Objectives Property Tax Staff upload and review Pass-through components for the Redevelopment Property Tax Trust Fund (RPTTF) apportionment calculation. Trigger Event(s) Property Tax Staff update the apportionment activity dates when known Precondition The pass-throughs calculation is saved in the system Pass-through calculations report for each taxing entity by project area report template is saved in the system Post condition Pass-throughs actuals have been reviewed and saved Associated Use Cases Use Case: RPTTF Estimates and Actuals Part 1: County Estimate to Jurisdictions Use Case: RPTTF Estimates and Actuals Part 2: ROPS Actuals Use Case: RPTTF Estimates and Actuals Part 4: Controller Admin Use Case: RPTTF Estimates and Actuals Part 5: SCO Invoice Use Case: RPTTF Preliminary Report and Summary by Tax Agency Use Case Flow 1. Property Tax Staff enter the apportionment activity dates into the system when known 2. Property Tax Staff select or enter the period of time for which the tax increment is being calculated a. Periods are defined by preconfigured dates i. Current periods include, but are not limited to: 1. May 16 December 15 for January 2 distribution 2. December 16th May 15th for June 1 distribution 3. May 16 September 15 for October 1 estimate 4. December 16 to March 15 for April 1 estimate b. The system calculates the pass-throughs based on data including, but not limited to: i. RDA revenues ii. RDA refund data iii. ERAF entitlement for school districts c. The system displays the pass-throughs and calculation for Property Tax Staff review RFP# XXX Attachment C Controller Use Cases Page 34 of 74

111 3. Property Tax Staff review the data, enter estimates as applicable, and selects the information to send a. The system saves the updated record 4. Property Tax Staff selects to generate the pass-through calculations report for each taxing entity by project area a. The system generates the pass-through calculations report for each taxing entity by project area RFP# XXX Attachment C Controller Use Cases Page 35 of 74

112 3.2.7 Use Case: RPTTF Estimates and Actuals Part 4: Controller Admin Actor(s) Property Tax Staff Purpose and Objectives Property Tax Staff upload and review Controller Admin components for the Redevelopment Property Tax Trust Fund (RPTTF) apportionment calculation. Trigger Event(s) Property Tax Staff receive the invoice for the total cost recovery bill Precondition The Controller admin calculation is saved in the system Post condition Controller admin costs have been reviewed and saved Associated Use Cases Use Case: RPTTF Estimates and Actuals Part 1: County Estimate to Jurisdictions Use Case: RPTTF Estimates and Actuals Part 2: ROPS Actuals Use Case: RPTTF Estimates and Actuals Part 3: Pass-Throughs Use Case: RPTTF Estimates and Actuals Part 5: SCO Invoice Use Case: RPTTF Preliminary Report and Summary by Tax Agency Use Case Flow 1. Property Tax Staff receive the invoice for the total cost recovery bill 2. Property Tax Staff uploads the invoice and enters the cost recovery invoice data into the system a. Cost recovery invoice data includes, but is not limited to: i. Invoice number ii. Option to itemize costs b. Cost recovery categories include, but are not limited to: i. Property Tax Unit s time spend on redevelopment work ii. Controller time spent on Staffing of the Oversight Committee iii. Controller s audit of Successor Agency(ies) expenditures (i.e. Prior Period Adjustments audits) 3. Property Tax Staff update related data entries a. Related data includes, but is not limited to: i. RDA-specific costs b. The system calculates the total costs incurred for RDA related costs c. The system calculates the total cost for each project area if applicable RFP# XXX Attachment C Controller Use Cases Page 36 of 74

113 i. The system calculation will default to evenly splitting the cost across projects d. The system sums the projects by RDA and displays for Property Tax Staff review e. The system displays the pass-throughs and calculation for Property Tax Staff review 4. Property Tax Staff review the sums and enter adjustments for each RDA project area 5. Property Tax Staff identify if further adjustments are necessary a. If Property Tax Staff identify that further adjustments are necessary, Property Tax Staff indicate to make further adjustments i. The process continues at Step 2 b. If Property Tax Staff identify that no further adjustments are necessary, the process continues 6. Property Tax Staff save the data a. The system saves the updated record RFP# XXX Attachment C Controller Use Cases Page 37 of 74

114 3.2.8 Use Case: RPTTF Estimates and Actuals Part 5: SCO Invoice Actor(s) Property Tax Staff Purpose and Objectives Property Tax Staff upload and review State Controller s Office (SCO) Invoice components for the Redevelopment Property Tax Trust Fund (RPTTF) apportionment calculation. Trigger Event(s) Property Tax Staff receive the invoice for the total cost recovery bill Precondition The Controller admin calculation is saved in the system Post condition Controller admin costs have been reviewed and saved Associated Use Cases Use Case: RPTTF Estimates and Actuals Part 1: County Estimate to Jurisdictions Use Case: RPTTF Estimates and Actuals Part 2: ROPS Actuals Use Case: RPTTF Estimates and Actuals Part 3: Pass-Throughs Use Case: RPTTF Estimates and Actuals Part 4: Controller Admin Use Case: RPTTF Preliminary Report and Summary by Tax Agency Use Case Flow 1. Property Tax Staff receive periodic PDF or paper invoices from the State Controller s Office 2. Property Tax Staff collect the invoices and scan and upload the original PDFs to the system 3. Property Tax Staff enter SCO information to the system a. SCO information includes, but is not limited to: i. Date ii. Invoice number iii. Amount for period 4. Property Tax Staff determine whether to manually enter the split a. If Property Tax Staff decide to manually enter the split, Property Tax Staff enters any applicable splits or other adjustments manually i. The process continues b. If Property Tax Staff indicate not to manually enter the split, the system conducts the split according to preconfigured business rules i. The process continues c. The system displays the split amounts for Property Tax Staff review RFP# XXX Attachment C Controller Use Cases Page 38 of 74

115 5. Property Tax Staff review and approve the split amounts a. The system saves the updated record RFP# XXX Attachment C Controller Use Cases Page 39 of 74

116 3.2.9 Use Case: RPTTF Preliminary Report and Summary by Tax Agency Actor(s) Property Tax Staff Purpose and Objectives RPTTF data is summarized and populated into report templates for distribution to the DOF and affected taxing agencies. Reports are reviewed by Property Tax Staff and the Property Tax Manager prior to finalization and distribution. Trigger Event(s) Initiated by the system once all preconfigured values for the period have been saved in the system Precondition All preconfigured values for the period have been saved in the system RPTTF summary calculations have been configured in the system Report templates have been saved in the system Post condition RPTTF summary calculations have been completed Reports have been populated, reviewed, approved, and distributed Associated Use Cases Use Case: RPTTF Estimates and Actuals Part 1: County Estimate to Jurisdictions Use Case: RPTTF Estimates and Actuals Part 2: ROPS Actuals Use Case: RPTTF Estimates and Actuals Part 3: Pass-Throughs Use Case: RPTTF Estimates and Actuals Part 4: Controller Admin Use Case: RPTTF Estimates and Actuals Part 5: SCO Invoice Use Case Flow 1. The system monitors for all preconfigured values for the period to be saved in the system b. Preconfigured values include, but are not limited to: i. County estimates, ii. ROPS actuals iii. Pass-throughs iv. Controller admin v. SCO invoice 2. The system conducts the RPTTF summary calculations as preconfigured in the system 3. The system displays the calculations for Property Tax Staff including, but not limited to: a. Displaying the calculations and distribution summary by project and sub-project areas RFP# XXX Attachment C Controller Use Cases Page 40 of 74

117 b. Displaying pass-through calculations by affected taxing entities 4. Property Tax Staff review the information for issues or necessary adjustments a. If Property Tax Staff identify issues or necessary adjustments, Property Tax Staff update the prior calculations or enter manual adjustments as necessary i. The process continues at Step 2 b. If Property Tax Staff identify that no adjustments are necessary, Property Tax Staff select to send the summary distribution reports to successor agencies i. The process continues 5. The system generates and sends the summary distribution report and calculations to Successor Agencies 6. The system compiles the data and populates the preconfigured report templates a. Preconfigured report templates include, but are not limited to: i. DOF report ii. Distribution report to each tax agency iii. Affected taxing entities pass-through report broken down by project 7. The system displays the reports for Property Tax Staff review 8. Property Tax Staff review the reports and add notes as necessary a. If Property Tax Staff identify issues, the process continues at Step 4a b. If Property Tax Staff do not identify issues, Property Tax Staff approve the reports i. The process continues 9. The system evaluates if the reports are for the actual a. If the reports are for the actual, the process continues at Use Case: RPTTF Apportionment b. If the reports are not for the actual, the system routes the reports to the Property Tax Manager for approval i. If the Property Tax Manager identifies issues, the system routes the reports back to the Property Tax Staff with notes 1. The process continues at Step 4a ii. If the Property Tax Manager approves the reports, the system saves the approved reports 10. The system prompts the Property Tax Manager to send the reports as scheduled in the system 11. The Property Tax Manger reviews and updates the recipients of the reports as necessary RFP# XXX Attachment C Controller Use Cases Page 41 of 74

118 12. The Property Tax Manager confirms to send the reports a. The system sends the reports including, but not limited to: i. ing data to the DOF ii. ing distribution reports to each affected taxing agency iii. ing pass-through report broken down by project to each affected taxing agency RFP# XXX Attachment C Controller Use Cases Page 42 of 74

119 4.0 Roll Maintenance 4.1 Background Introduction Property Taxes are divided in to different tax rolls, such as Secured, Unsecured, and Supplemental, based on the type of property being assessed and changes in ownership or valuation that may have occurred after the original annual tax bill was released. A major responsibility of the Auditor Controller s office is to ensure the integrity of each tax roll Roll Corrections Roll corrections may result from a number of situations, including: assessment appeals or other value-related adjustments, changes in rates or taxes, clerical errors, and changes to fees or special assessments. Similarly, roll corrections may be initiated by the AAB, the Assessor s Office, or other agencies and departments. Roll corrections may result in tax roll reductions, tax roll increases, adjusted bills, and/or refunds. Roll corrections may apply to any tax roll Bill Approval The Auditor Controller s office is responsible for ensuring the correct billing elements in a new bill prior to being routed to the Tax Collector s office for generation of the new bill. New Bills may be adjusted bills, supplemental bills, and secured and unsecured escape bills. Escape bills are issued when a tax payer has been billed an amount lower than appropriate due to new information about misapplied exemptions, increased valuations, etc Refunds Refunds may result from a number of situations, including, but not limited to: duplicate payments, overpayments, cancellations of bills or penalties, erroneous payments, approval of an exemption after the original generation of a bill, negative supplemental assessments, and roll corrections. In any case, payments have usually been made, either partially or in full. If payments have not previously been made in these situations, resolution is limited to adjustments in billing Overview of Use Cases, Actors, and Triggers for Roll Maintenance Table 4. Overview of Use Cases, Actors, and Triggers for Roll Maintenance functions Use Case Name Actor Trigger Description Roll Changes (Secured, Unsecured, and Supplemental) Property Tax Staff The system receives notification of a roll change from the Assessor s Office roll change processes The system identifies a tax roll change not Processing of roll changes resulting in adjusted bills, cancelled bills, escapes, and/or refunds RFP# XXX Attachment C Controller Use Cases Page 43 of 74

120 Use Case Name Actor Trigger Description Cancellation of Penalties and Fees Special Charges Changes or Cancellations Refunds Property Tax Staff Property Tax Staff Property Tax Staff originating from the Assessor s Office The Controller s Office initiates cancellation of penalties and/or fees The system receives a request to cancel penalties and/or fees from the Tax Collector s Office or other sources Property Tax Staff receive a request to change or cancel special charges The system identifies records marked for refunds from other processes The system receives notification of a negative supplemental Reviewing of requests to cancel penalties and/or fees Processing of requests from Taxing Entities to change or cancel special charges Processing of refunds identified through other processes RFP# XXX Attachment C Controller Use Cases Page 44 of 74

121 4.2 Use Cases Use Case: Roll Changes (Secured, Unsecured, and Supplemental) Actor(s) Property Tax Staff Purpose and Objectives Corrections made to tax bills due to changes in assessed value since the initial tax bill was issued or due to changes in special assessment charges or partial cancellations due to government purchase of a parcel result in the need for Tax Roll Corrections. These corrections can apply to any roll and can be initiated by the AAB, the Assessor s office, County Counsel, or a court order. All Roll Corrections are carefully reviewed by Controller Staff. Approved tax roll reductions may result in adjusted bills, cancelled bill, and/or refunds. Approved tax roll increases may result in the need for an escape, and/or adjusted bill. The system identifies these next steps based on information about the bill and payment status. Trigger Event(s) The system receives notification of a roll change from the Assessor s Office roll change processes The system identifies a required tax roll change not originated from the Assessor s Office Precondition The system is interfaced with the Assessor and Tax Collector systems Post condition Roll changes have been processed Associated Use Cases ASR Roll Change TTX Bill Generation Use Case Flow 1. The system receives notification of a roll change from the Assessor s system 2. The system notifies Controller Staff of roll changes for review 3. Controller Staff select to view the roll changes 4. The system calculates the revised tax values resulting from the revised assessments a. If the roll change is for a prior year, the system applies the tax rate for the relevant tax year b. If the roll change affects multiple years, the system applies the relevant tax rates for each of the affected years 5. The system displays the roll corrections and associated documents and data for review 6. The system displays a summary view of the set of roll corrections with data including, but not limited to: RFP# XXX Attachment C Controller Use Cases Page 45 of 74

122 a. Prior assessment balance b. Current assessment balance c. Change in total assessment balance d. Prior tax balance e. Current tax balance f. Change in total tax balance 7. The system shall also provide authorized users with the ability to select to view an individual roll correction and detailed information including, but not limited to: a. Previous assessment value b. Current assessment value c. Previous tax value d. Current tax value e. AAB-assigned case number and Claim Refund box status if the roll change was triggered by an AAB appeal form f. Controller s Letter date g. 8. Controller Staff reviews the revised assessment values and tax values for issues a. If Controller Staff identify issues with the revised tax values, Controller Staff adjusts the calculation in the system i. The process continues at Step 4 9. Controller Staff approve the new tax values 10. The system saves the new tax values a. The system shall save an audit trail of all bill adjustments 11. The system identifies if the original bill had already been paid a. If the original bill had already been paid, the system evaluates if the revised tax value is greater than the payment received i. If the revised tax is greater than the payment received, the system retains the original bill and payment status and routes the difference due to the Tax Collector s Office to generate a new escape bill for the difference due 1. The process continues at Use Case: TTX Bill Generation ii. If the revised tax is less than the payment received, the system marks the revised bill as paid and issues a refund of the difference 1. The process continues at Use Case: Refund b. If the original bill was in redemption, the system adjusts the penalty amount proportionally to the adjustment in the tax due i. The system routes the adjusted bill amount to the Tax Collector s Office to generate the adjusted bill RFP# XXX Attachment C Controller Use Cases Page 46 of 74

123 ii. The process continues at Use Case: TTX Bill Generation c. If the original bill was an unsecured delinquent bill, the system notifies the Bureau of Delinquent Revenue of the roll change and to cease collection activity for the statutory period i. The system removes the penalties associated with the original bill ii. The system routes the adjusted bill amount to the Tax Collector s Office to generate the adjusted bill iii. The process continues at Use Case: TTX Bill Generation Alternate Flow A: Non-Assessor s Office Originated Roll Change 1. The system identifies the need for a tax roll change not originated from the Assessor s Office a. Roll changes may be required due to changes including, but not limited to: i. Special Assessment changes or cancellations ii. Government purchase of a parcel 2. The system notifies Controller Staff of roll changes for review 3. Controller Staff select to view the roll changes 4. The system calculates the revised tax values resulting from the revised information 5. The system displays the roll corrections and associated revised documents and data for review 6. The process continues at Primary Flow Step 6 RFP# XXX Attachment C Controller Use Cases Page 47 of 74

124 4.2.2 Use Case: Cancellation of Penalties and/or Fees Actor Property Tax Staff Purpose and Objectives Requests to cancel penalties and/or fees may originate from either the Tax Collector s Office or from other sources. Requests may apply to current or prior years. Past year penalties and/or fees on unpaid bills are not cancelled. All other requests are reviewed by Tax Collector Staff. Approved cancellations may result in a necessary refund. Trigger Event(s) The Controller s Office initiates cancellation of penalties and/or fees The system receives a request to cancel penalties and/or fees from the Tax Collector s Office or other sources Precondition The system is able to receive requests for penalties and/or fees Post condition Requests to cancel penalties and/or fees have been approved or denied Associated Use Cases Refund Use Case Flow 1. The system receives a request to cancel or waive penalties and/or fees a. Requests to cancel or waive penalties and/or fees can be received from sources including, but not limited to: i. The Tax Collector s Office ii. The Controller s Office iii. The Assessor s Office iv. City Attorney b. If the Controller s Office receive documentation about the request, Controller s Office scans, uploads, and/or enters the request and data into the system 2. The system evaluates whether the request is for current year penalties and/or fees a. If the request is for prior year penalties and/or fees, the system identifies if payment is outstanding on the associated bill i. If the associated bill was not paid, the system rejects the request to cancel penalties and/or fees 1. The system notifies the requestor of the decision 2. The process ends ii. If the associated bill was paid, the process continues b. If the request is for current year penalties and/or fees, the process continues 3. The system routes the request to Controller Staff for review RFP# XXX Attachment C Controller Use Cases Page 48 of 74

125 4. Controller Staff reviews the request a. If Controller Staff identify questions, Controller Staff document the questions in the system i. The system routes the question to the Tax Collector s Office or other originating source ii. The system monitors for a response iii. When a response is received, the process continues at Step 3 5. Controller Staff determine whether to approve the cancellation of penalties and/or fees request a. If Controller staff deny the request, Controller Staff document the reason for denial in the system i. The system notifies the Tax Collector s Office or other originating source of the denial ii. The process ends 6. Controller Staff approves cancellation of the penalties and/or fees and processes the cancellation request including, but not limited to: a. Canceling the identified penalties and fees b. Adding any notes 7. The system saves the information reflecting the cancellation of penalties and fees 8. The system retains an audit trail of the original penalty collected and the amount of penalty left over following a refunding of some portion of the penalty due to waiver/roll correction 9. The system evaluates whether the cancellation necessitates a refund a. If the cancellation necessitates a refund, the process continues at Use Case: Refund RFP# XXX Attachment C Controller Use Cases Page 49 of 74

126 4.3 Use Case: Refunds Actor Property Tax Staff Purpose and Objectives The need for a refund may be identified in many processes. Some refunds can be automatically generated by the system if they meet preconfigured criteria. Remaining refunds will require Controller Staff processing and Property Tax Manager approval. Trigger Event(s) The system identifies records marked for refunds from other processes Precondition Automated refund process is preconfigured in the system The system is interfaced with the County accounting system Post condition Refunds have been calculated, reviewed, and processed Associated Use Cases Prior Year Roll Changes Cancellation of Penalties and Fees Special Charges Changes or Cancellations Use Case Flow 1. The system identifies records marked for refunds from other processes 2. The system identifies relevant data for each record including, but not limited to: a. Associated Tax bill b. Block and lot (secured) c. Assessment number (unsecured) d. Tax type e. Bill installment(s) f. Bill year 3. The system creates a refund claim for each record including, but not limited to: a. Calculating the refund amount based on known information 4. Controller Staff logs into the system and selects to review the refund work queue a. The system only places Controller reviewed refunds in Controller staff work queue based on preconfigured business rules 5. Controller Staff verifies refund claim data including, but not limited to: a. Affected parcel(s) b. Refund amount c. Bill type (secured or unsecured) RFP# XXX Attachment C Controller Use Cases Page 50 of 74

127 d. Tax bill / assessment number e. Sequence of the bill f. Installment(s) being refunded g. Roll year h. Tax year i. AAB appeal number (if applicable) j. Controller s letter date k. Itemization of refund including, but not limited to: i. Tax refund amount ii. Penalty refund amount iii. Cost refund amount l. Link to image or record of original payment 6. Controller Staff makes adjustments as necessary including verifying that appropriate interest rates were used in the calculation 7. Controller Staff adds refund reason details and notes 8. Controller Staff indicates that the refund claim is completed 9. The system routes the refund claim to the Property Tax Manager for review and approval a. If the Property Tax Manager identifies issues, the system returns the refund claim with Property Tax Manager notes to Controller Staff i. The process continues at Step The system changes the status of all expected refund claims to approved 11. The system determines the refund recipient and updates the system 12. The system determines any amounts due and any to withhold for other obligations 13. The system routes collected refund information to Tax Collector staff for approval 14. The system interfaces with Peoplesoft to transfer refund information less any amounts withheld 15. The system applies any withheld amounts to the designated bills and updates the records 16. The system determines if a new bill is required a. If a new bill is not required, the process ends b. If a new bill is required, the system routes the bill amount to the Tax Collector s Office i. The process continues at TTX Use Case: Bill Generation RFP# XXX Attachment C Controller Use Cases Page 51 of 74

128 17. The system receives updated information from the accounting system including, but not limited to: a. Accounting system document number corresponding to the refund b. Amount refunded c. Bank check number d. Refund payment status Alternate Flow B: Negative Supplemental 1. The system receives notification of a negative supplemental assessment from the Assessor s system a. The negative supplemental assessment data includes, but is not limited to: i. Assessment value ii. Block and lot (secured) iii. Assessment number (unsecured) 2. The process continues at Primary Flow Step 3 RFP# XXX Attachment C Controller Use Cases Page 52 of 74

129 5.0 Apportionment and Distribution 5.1 Background Introduction The Tax Collector receives payments for tax amounts due through the billing process. These payments are held by the City until the Controller s office calculates the amount(s) or portion of the collections to be distributed to the City s taxing entities (e.g. districts, agencies, funds, etc.). This process is known as apportionment. Each apportionment event happens according to its own specific calendar schedule, pursuant to Revenue and Taxation codes and supportive policies and procedures. Tax payments received for each tax roll (secured, unsecured, supplemental, etc.) are apportioned at scheduled times, with each apportionment event potentially involving distinct calculations and extensive reviews for accuracy. Apportionment calculations are often complex. The apportionment process requires integration and communication with the County s Financial Accounting system Overview of Use Cases, Actors, and Triggers for Apportionment and Distribution Table 5. Overview of Use Cases, Actors, and Triggers for Apportionment and Distribution functions Use Case Name Actor Trigger Description Secured Apportionment Unsecured Apportionment Supplemental Apportionment HOPTR Exemption Claim to State HOPTR Apportionment Teeter Note Creation, Approval, and Apportionment School District ERAF Entitlement and Excess ERAF Generate ERAF Reimbursement Claim Tax Increment for RDA or IFD Property Tax Staff Property Tax Staff Property Tax Staff Property Tax Staff Property Tax Staff Property Tax Staff Property Tax Staff Property Tax Staff Property Tax Staff Initiated by the system according to schedule Initiated by the system according to schedule Initiated by the system according to schedule Initiated by the system according to schedule Initiated by the system according to schedule Initiated by the system according to schedule Initiated by the system according to schedule Triple Flip and/or VLF are not able to be fully funded from ERAF Entitlement Initiated by the system according to schedule Apportionment of taxes collected for secured properties Apportionment of taxes collected for business and personal properties Apportionment of taxes collected for supplemental bills Requesting HOPTR Exemption reimbursement from the State Apportionment of HOPTR reimbursement claim Determination of Teeter accounts, approving of Teeter note, and apportion of Teeter funds Apportionment of ERAF funds to K-12, Special Education, and Community Colleges Requesting ERAF reimbursement from the State Apportionment of RDA and IFD Tax increments and setting up of new IFDs RFP# XXX Attachment C Controller Use Cases Page 53 of 74

130 Use Case Name Actor Trigger Description Property Tax Staff creates a new IFD RFP# XXX Attachment C Controller Use Cases Page 54 of 74

131 5.2 Use Cases Use Case: Secured Apportionment Actor(s) Property Tax Staff Purpose and Objectives Secured property consists of land, structures, fixtures, and known improvements tied to geographic parcels of land. Homeowners may apply for various exemptions to adjust the portion of their owed property taxes. Other Exemptions (church, welfare, etc.) may apply to secured property as well. Government-owned properties are not taxable, but may still pay direct charges/special assessments for services rendered directly to the properties. Taxes collected from these secured properties are allocated through the secured property apportionment process. Trigger Event(s) Initiated by the system according to schedule Precondition Secured apportionment is scheduled in the system Post condition Secured apportionment has been approved and transmitted to the City financial accounting system Associated Use Cases Use Case Flow 1. The system shall save tax collection data and information as received and collected by the Tax Collector s office throughout the year, as well as the appropriate year s Apportionment Factors by Tax Roll type (e.g., secured, unsecured, supplemental, redemption, etc.) and Tax Year a. Tax collection information includes, but is not limited to: i. Payments ii. Reversals iii. Refunds 2. The system prompts Property Tax Staff to calculate the secured apportionment amounts on a preconfigured date 3. Property Tax Staff review the specific secured apportionment event 4. The system displays the distribution schedule for review 5. Property Tax Staff reviews, edits, and confirms the apportionment date and corresponding percentages (i.e., percent of the annual apportionment amounts involved with the specified event date), and indicates for the system to calculate the apportionment amounts 6. The system calculates the apportionment amounts for each included Taxing Entity/Jurisdiction for the current year s Secured Roll revenue RFP# XXX Attachment C Controller Use Cases Page 55 of 74

132 a. Calculations shall be based on preconfigured business rules, including, but not limited to: i. Applying the current year secured apportionment factors to current year secured tax collections ii. Calculating Teetered values for relevant properties iii. Applying the 1% apportionment factor to the 1% portion of the tax collections iv. Adding direct levy taxes collected (passthrough) v. Adding General Obligation Bond (GOB) amounts collected (passthrough) vi. Applying state unitary factor to the state unitary portion of the tax levy vii. Applying unitary bond debt factors to the state unitary amounts collected viii. Applying penalties, costs and fees ix. Applying adjustments x. Subtracting County administrative costs b. Calculations shall take into account payment information for same roll and tax year, including, but not limited to: i. Payments ii. Reversals iii. Refunds iv. Any prior advances v. Prior Year Refunds 7. The system displays both current and prior year apportionments (including tax changes based on any applicable roll corrections) for review including, but not limited to: a. Calculations b. Apportionment factors c. Apportionment amounts by jurisdiction d. Apportionment amounts by TRA 8. Property Tax Staff review, make any manual adjustments as necessary, and approve the apportionment calculations, amounts, and any adjustments a. If Property Tax Staff make any manual adjustments, the system shall prompt the staff to provide a reason for the manual adjustment b. If Property Tax Staff identify issues, the Property Tax Staff research and resolve the issue i. Property Tax Staff select to recalculate ii. The process continues at Step 6 9. Property Tax Staff approve the apportionment RFP# XXX Attachment C Controller Use Cases Page 56 of 74

133 10. The system routes the apportionment and calculations to the Property Tax Manager for review a. If the Property Tax Manager identifies issues, the system returns the apportionment with comments to the Property Tax Staff i. The process continues at Step 5 b. If the Property Tax Manager approves the apportionment, the process continues 11. The system saves and finalizes the apportionment calculations 12. The system generates journal entry information to transmit the apportionment to the City financial accounting system RFP# XXX Attachment C Controller Use Cases Page 57 of 74

134 5.2.4 Use Case: Unsecured Apportionment Actor Property Tax Staff Purpose and Objectives Unsecured property, including Business and Personal Property, consists of property that can be moved to a different location at any time. This include vessels, business property (e.g., furniture, electronics, computers, special assessments, etc.), and business property for lease (true leases and conditional sale leases, vending, and signs). Unsecured property can also include building structures that sits on top of land leased from government entities (i.e. AT&T Ballpark, the Ferry Building, Marriott Marquis Hotel, the Metreon, etc.) Taxes collected from these unsecured properties are allocated through the unsecured property apportionment process. Trigger Event(s) Initiated by the system according to schedule Precondition Unsecured apportionment is scheduled in the system Post condition Unsecured apportionment has been approved and transmitted to the City financial accounting system Associated Use Cases NA Use Case Flow 1. The system shall save tax collection data and information as received and collected by the Tax Collector s office throughout the year, as well as the appropriate year s Apportionment Factors by Tax Roll type (e.g., secured, unsecured, supplemental, redemption, etc.) a. Tax collection information includes, but is not limited to: i. Payments ii. Reversals iii. Refunds 2. The system prompts Property Tax Staff to calculate the unsecured apportionment amounts on a preconfigured date 3. Property Tax Staff review the specific unsecured apportionment event 4. The system displays the distribution schedule for review 5. Property Tax Staff reviews, edits, and confirms the distribution date and associated percentages 6. The system calculates the apportionments for the current year unsecured revenue a. Calculations shall be based on preconfigured business rules, including, but not limited to: RFP# XXX Attachment C Controller Use Cases Page 58 of 74

135 i. Applying the current year unsecured apportionment factors to current year unsecured tax collections and the appropriate prior year apportionment factors to the prior year unsecured tax collections ii. Applying the 1% apportionment factor to the 1% portion of the tax collections iii. Adding any relevant General Obligation Bond (GOB) amounts collected (passthrough) iv. Adding penalties, costs and fees v. Applying adjustments b. Calculations shall take into account payment information for same roll and tax year, including, but not limited to: i. Payments ii. Reversals iii. Refunds iv. Any prior advances 7. The system displays both current and prior year apportionments (including tax changes due to roll corrections) including, but not limited to: a. Calculations b. Apportionment factors c. Apportionment amounts by jurisdiction d. Apportionment amounts by TRA 8. Property Tax Staff review, make any manual adjustments, and approve the distribution and adjustments a. If Property Tax Staff makes any manual adjustments, the system prompts the staff to provide a reason for the manual adjustment b. If Property Tax Staff identifies issues, Property Tax Staff researches and resolves the issue i. Property Tax Staff selects to recalculate ii. The process continues at Step 6 9. Property Tax Staff approve the apportionment 10. The system routes the apportionment and calculations to the Property Tax Manager for review a. If the Property Tax Manager identifies issues, the system returns the apportionment with comments to the Property Tax Staff i. The process continues at Step 5 RFP# XXX Attachment C Controller Use Cases Page 59 of 74

136 b. If the Property Tax Manager approves the apportionment, the process continues 11. The system saves and finalizes the apportionment calculations 12. The system generates journal entry information to transmit the apportionment to the City financial accounting system RFP# XXX Attachment C Controller Use Cases Page 60 of 74

137 5.2.5 Use Case: Supplemental Apportionment Actor Property Tax Staff Purpose and Objectives Secured properties may additionally incur a supplemental tax based on events that occur after the real properties lien date (Jan. 1). These events may include a change in ownership (CIO), new construction, other events deemed by the Revenue and Taxation codes as re-assessable, as well as some calamities. Trigger Event(s) Initiated by the system based on the preconfigured schedule Precondition Supplemental apportionment is scheduled in the system Post condition Supplemental apportionment has been approved and transmitted to the City financial accounting system Associated Use Cases NA Use Case Flow 1. The system saves tax collection data and information as received and collected by the Tax Collector s office throughout the year, as well as the appropriate year s Apportionment Factors by Tax Roll type (e.g., secured, unsecured, supplemental, redemption, etc.) a. Tax collection information includes, but is not limited to: i. Payments ii. Reversals iii. Refunds 2. The system prompts Property Tax Staff to calculate the supplemental apportionment amounts on a preconfigured date 3. Property Tax Staff review the supplemental apportionment event 4. The system displays the distribution schedule for review 5. Property Tax Staff review, edit, and confirm the apportionment date and percentages 6. The system calculates the specified apportionment activities for the current year supplemental amounts collected (revenue) a. Calculations shall be based on preconfigured business rules, including, but not limited to: i. Applying the current year supplemental apportionment factors to current year supplemental tax collections and appropriate prior year supplemental apportionment factors to the prior year supplemental tax collections RFP# XXX Attachment C Controller Use Cases Page 61 of 74

138 ii. Applying the 1% supplemental factor to the 1% portion of the tax collections iii. Adding any pertinent General Obligation Bond (GOB) amounts collected (passthrough) iv. Adding penalties, costs and fees v. Applying adjustments vi. Removing preconfigured percentage (currently up to 5%) of collection amount for administrative fees b. Calculations shall take into account payment information for same roll and tax year, including, but not limited to: i. Payments ii. Reversals iii. Refunds iv. Any prior advances 7. The system displays both current and prior year apportionments (including tax changes due to roll corrections), including, but not limited to: a. Calculations b. Supplemental Apportionment factors c. Supplemental Apportionment amounts by jurisdiction d. Supplemental Apportionment amounts by TRA 8. Property Tax Staff review, make any manual adjustments, and approve the distribution and adjustments a. If Property Tax Staff makes any manual adjustments, the system prompts the Property Tax Staff to provide a reason for the manual adjustment b. If Property Tax Staff identify issues, Property Tax Staff research and resolve the issue i. Property Tax Staff selects to recalculate ii. The process continues at Step 6 9. Property Tax Staff approve the apportionment 10. The system routes the apportionment and calculations to the Property Tax Manager for review a. If the Property Tax Manager identifies issues, the system returns the apportionment with comments to the Property Tax Staff i. The process continues at Step 5 b. If the Property Tax Manager approves the apportionment, the process continues 11. The system saves and finalizes the apportionment calculations 12. The system generates journal entry information to transmit the apportionment to the City financial accounting system RFP# XXX Attachment C Controller Use Cases Page 62 of 74

139 RFP# XXX Attachment C Controller Use Cases Page 63 of 74

140 5.2.6 Use Case: HOPTR Exemption Claim to State Actor Property Tax Staff Purpose and Objectives The City is able to submit a Home Owner Property Tax Relief (HOPTR) or Homeowner s Exemption Claim to the State Controller for reimbursement made on behalf of local agencies for the tax revenue lost due to homeowner s exemptions. Trigger Event(s) Initiated by the system according to schedule Precondition HOPTR claim form template is saved in the system HOPTR apportionment amounts are entered into the system when known Current year equalized home owner exemption amount is available in the system Post condition HOPTR exemption claims have been sent to the State Associated Use Cases HOPTR Apportionment Use Case Flow 1. The system prompts Property Tax Staff to run the current year s homeowners exemptions process on a preconfigured date 2. Property Tax Staff indicates to run the current year s homeowners exemptions process 3. The system runs a query of the current year s homeowner exemptions as reported by the Assessor s office and updated to include any Assessment Roll changes that accumulated until the affected prior years 4. The system auto-populates an official HOPTR claim form and displays summary HOPTR claim information for review including, but not limited to: a. HOPTR claims b. Prior year claims c. Any significant differences from the prior year s data based on a preconfigured threshold 5. Property Tax Staff reviews, corrects, and approves the HOPTR claims including, but not limited to: a. Bill Changes b. Corrections c. Cancelations 6. The system generates and displays the updated HOPTR claim form a. If Property Tax Staff identify necessary updates, the process continues at Step 5 7. Property Tax Staff approves the final HOPTR claim form 8. The system routes the HOPTR claim form to the Property Tax Manager for review RFP# XXX Attachment C Controller Use Cases Page 64 of 74

141 a. If the Property Tax Manager identifies issues, the system returns the HOPTR claim form with comments to the Property Tax Staff i. The process continues at Step 5 b. If the Property Tax Manager approves the HOPTR claim form, the process continues 9. The system routes the HOPTR claim form to the Controller a. If the Controller is not a system user, the Property Tax Manager manages the approval process. The process continues at Step The Controller provides an e-signature on the claim a. If the State entity/agency requires a wet signature, the Property Tax Manager manages the approval process. The process continues. 11. The system accepts the signature and send the final HOPTR claim information to the appropriate State entity/agency in the format required by the State a. If the State entity/agency accepts , the system shall provide an e-signature and the form b. If the State entity/agency requires a hard copy, the system generates a letter to be mailed to the physical mailing address RFP# XXX Attachment C Controller Use Cases Page 65 of 74

142 5.2.7 Use Case: HOPTR Apportionment Actor(s) Property Tax Staff Purpose and Objectives Once the State has submitted Home Owner Property Tax Relief (HOPTR) funds to the County, the system calculates the HOPTR apportionment for review. Trigger Event(s) Initiated by the system according to schedule Precondition HOPTR apportionment amounts are entered into the system when known Post condition HOPTR apportionment has been approved and transmitted to the City financial accounting system Associated Use Cases HOPTR Exemption Claim to State Use Case Flow 1. The system places a hold on the distribution of funds related to the calculated HOPTR apportionment 2. The system prompts Property Tax Staff at a preconfigured date to check for the HOPTR reimbursement from the State 3. Property Tax Staff review and approve the funds received a. If Property Tax Staff identify issues, Property Tax Staff work with the State to resolve the issue i. The process continues at Step 2 4. The system saves the fund amount received and releases the hold on the appropriate apportionment 5. The system generates journal entry information to transmit the apportionment to the City financial accounting system RFP# XXX Attachment C Controller Use Cases Page 66 of 74

143 5.2.8 Use Case: Teeter Note Creation, Approval, and Apportionment Actor(s) Property Tax Staff Purpose and Objectives For accounts on the redemption roll, the County can follow a Teeter process, where they identify receivable accounts and issue a Teeter Note to receive the expected receivable funds in advance of actually receiving payment on delinquent taxpayer accounts. This use case describes Property Tax Staff s activities in determining redemption accounts that should be teetered, approving the Teeter Note, and apportioning the Teeter funds received in advance of any actual collections Trigger Event(s) Initiated by the system according to schedule Precondition Initiated by the system according to schedule Post condition Teetered amount for properties have been approved Associated Use Cases NA Use Case Flow 1. The system identifies properties that should be included in the Teeter process based on pre-configured business rules. Properties will be chosen based on attributes, including, but not limited to: a. Property type (secured) b. Annual secured tax bill c. Secured escapes d. Specific direct charges that may be designated as Teetered e. Specific Parcel Number (secured) or Assessment Number (unsecured) 2. The system prompts Property Tax Staff to review the potential Teeter accounts 3. Property Tax Staff reviews the system-identified potential Teeter accounts 4. Property Tax Staff review and confirm the properties selected for Teeter (optional) 5. Property Tax Staff approves the list of Teeter properties 6. The system saves the updated list of Teeter properties 7. The system displays Teeter tax changes from prior years by identifying corrections and including adjustments based on preconfigured business rules, including but not limited to: a. Adjustments for accelerated foreclosure b. Prior year changes RFP# XXX Attachment C Controller Use Cases Page 67 of 74

144 8. Property Tax Staff review the Teeter tax changes, resolve any issues, and approve the tax changes 9. The system routes the Teeter information to the Property Tax Manager for review a. If the Property Tax Manager identifies issues, the system returns the Teeter information with comments to the Property Tax Staff i. The process continues at Step 4 b. If the Property Tax Manager approves the Teeter information, the process continues 10. The system calculates the Teeter note amount based on the Teeter list 11. The system generates journal entry information to transmit the approved Teeter value to the City financial accounting system RFP# XXX Attachment C Controller Use Cases Page 68 of 74

145 5.2.9 Use Case: School District ERAF Entitlement and Excess ERAF Actor(s) Property Tax Staff Purpose and Objectives K -12, County Office of Education, and Community Colleges are all entitled to funding from the Educational Revenue Augmentation Fund (ERAF). Property Tax Staff are responsible for calculating the amount due to each district and distributing collected ERAF funds to each in the correct order of priority. Trigger Event(s) Initiated by the system according to schedule Precondition Excess ERAF and ERAF Entitlement factors have been calculated Post condition ERAF Entitlement have been apportioned Associated Use Cases NA Use Case Flow 1. The system calculates the ERAF revenue and refund apportionments on a preconfigured date a. Calculations shall be based on preconfigured business rules, including, but not limited to: i. Backfilling VLF from ERAF ii. Adjustments for RDAs and IFDs 2. The system prompts Property Tax Staff to review the ERAF apportionment 3. Property Tax Staff review the apportionment 4. The system displays ERAF information including, but not limited to: a. ERAF total collected b. ERAF school district share c. Final apportionment amounts d. Secured levy e. Unsecured collected 5. Property Tax Staff review, edit, and approve the apportionment a. If Property Tax Staff determine that there are any issues, Property Tax Staff note the issue in the system, resolve it, and prompt the system to recalculate i. The process continues at Step 1 b. If Property Tax Staff approve the ERAF apportionment, the process continues RFP# XXX Attachment C Controller Use Cases Page 69 of 74

146 6. The system routes the ERAF apportionment and calculations to the Property Tax Manager for review a. If the Property Tax Manager identifies issues, the system returns the apportionment with comments to the Property Tax Staff i. The process continues at Step 5 b. If the Property Tax Manager approves the apportionment, the process continues 7. The system saves and finalizes the apportionment calculations 8. The system generates journal entry information to transmit the apportionment to the City financial accounting system RFP# XXX Attachment C Controller Use Cases Page 70 of 74

147 Use Case: Generate ERAF Reimbursement Claim Actor(s) Property Tax Staff Purpose and Objectives In the event that ERAF is not enough to fully fund Triple Flip and/or VLF, the State may reimburse the unfunded amount. Property Tax Staff reviews shortfalls for potential State funding, and either generates appropriate reimbursement files for the State, or notifies Taxing Agencies that shortfalls will not be funded. Reimbursement files are approved by the Accounting Manager prior to submission. Trigger Event(s) Triple Flip and/or VLF are not able to be fully funded from ERAF Entitlement Precondition Taxing Agency notification letter templates are saved in the system Post condition Reimbursement claims have been generated Associated Use Cases NA Use Case Flow 1. The system identifies on a preconfigured date if ERAF is able to fully fund VLF according to preconfigured calculations and collections in the system a. If ERAF is able to fully fund VLF, the process ends b. If ERAF is not able to fully fund VLF, the process continues 2. The system prompts Property Tax Staff to generate reimbursement claims 3. Property Tax Staff reviews the reimbursement claim information and identifies whether the State will fund the shortfall a. If the State will not fund the shortfall, Property Tax Staff selects to notify Taxing Agencies i. The system generates and sends notification letters to Taxing Agencies notifying them that the shortfall will not be funded 1. The process ends b. If the State will fund the shortfall, the process continues 4. Property Tax Staff add notes as necessary and selects to generate the reimbursement files 5. The system generates the reimbursement files and displays them for review 6. Property Tax Staff review the reimbursement files, add commentary, and edit values as necessary 7. The system routes the reimbursement claim to the Property Tax Manager for review a. If the Property Tax Manager identifies issues, the system returns the reimbursement claim with comments to Property Tax Staff RFP# XXX Attachment C Controller Use Cases Page 71 of 74

148 i. The process continues at Step 5 b. If the Property Tax Manager approves the reimbursement claim, the process continues 8. The system saves and finalizes the reimbursement claim 9. The system sends the reimbursement files to the appropriate State entity/agency in the format required by the State a. If the State entity/agency accepts , the system shall the form b. If the State entity/agency requires a hard copy, the system generates a letter to be mailed to the physical mailing address 10. The system generates and sends notification letters to Taxing Agencies notifying them that the shortfall will be funded RFP# XXX Attachment C Controller Use Cases Page 72 of 74

149 Use Case: Tax Increment for RDA or IFD Actor(s) Property Tax Staff Purpose and Objectives Redevelopment Agencies (RDA) and Infrastructure Finance Districts (IFD) are unique jurisdictions that divert new local property tax revenues (the increment) to either pay directly for the construction of infrastructure and public facility improvements or to issue bonds to finance those improvements. A City or County may create a new IFD if approved by property owners in the proposed district. In addition, all other affected taxing entities (e.g., counties, special districts) must approve the contribution of their portion of the tax increment to the IFD. Trigger Event(s) Initiated by the system according to schedule Property Tax Staff creates a new IFD Precondition RDA and IFD apportionments have been scheduled in the system Post condition RDA and IFD Tax Increments have been apportioned New IFDs have been set up in the system Associated Use Cases NA Use Case Flow 1. The system monitors for RDA or IFD apportionment dates 2. The system prompts Property Tax Staff to calculate the RDA or IFD Tax Increment apportionment on a preconfigured date 3. Property Tax Staff selects to review the RDA or IFD apportionment 4. The system displays the properties included in the RDA or IFD and the preconfigured apportionment calculation for review 5. Property Tax Staff determines whether the apportionment calculation requires adjustment a. If Property Tax Staff determines that the apportionment calculation requires adjustment, Property Tax Staff adjust the apportionment calculation and document reasoning behind the adjustment i. The system saves the updated apportionment calculation ii. The process continues at Step 4 b. If Property Tax Staff determine that no adjustments are needed, the process continues 6. Property Tax Staff confirm to conduct the RDA or IFD apportionment 7. The system calculates the RDA or IFD Tax Increment (tax revenue growth over base year) RFP# XXX Attachment C Controller Use Cases Page 73 of 74

150 8. The system calculates the RDA or IFD apportionment based on preconfigured business rules including, but not limited to: a. Passthroughs b. Cost recovery for IFDs and RDAs c. State Controller Office Invoice d. DOF approved distribution limits for enforceable obligations and administrative cost allowance 9. The system displays the apportionment and calculations for review 10. Property Tax Staff reviews and approves the apportionment a. If Property Tax Staff identify necessary changes, the process continues at Step The system routes the apportionment and calculations to the Property Tax Manager for review a. If the Property Tax Manager identifies issues, the system returns the apportionment with comments to the Property Tax Staff i. The process continues at Step 3 b. If the Property Tax Manager approves the apportionment, the process continues 12. The system saves and finalizes the apportionment calculations 13. The system generates journal entry information to transmit the apportionment to the City financial accounting system Alternate Flow A: New IFD 1. Property Tax Staff selects to create a new IFD in the system 2. The system prompts Property Tax Staff to identify the Assessor s Office tag that identifies the properties and assessment numbers that should be included in the IFD system 3. Property Tax Staff searches for the applicable Assessor s Office tag 4. The system save the indicated properties and assessment numbers as associated with the new IFD and displays them for review 5. Property Tax Staff confirms the indicated properties and assessment numbers a. If Property Tax Staff identify necessary changes, the process continues at Step 3 6. The system prompts Property Tax Staff to indicate the new IFD base year and apportionment calculation 7. Property Tax Staff selects the base year for the new IFD and configures the apportionment calculation in the system 8. The system saves the selected base year and apportionment calculation configuration associated with the new IFD and displays them for review 9. Property Tax Staff confirms the base year and apportionment calculation a. If Property Tax Staff identify necessary changes, the process continues at Step The system saves the new IFD RFP# XXX Attachment C Controller Use Cases Page 74 of 74

151 ATTACHMENT D: TREASURER AND TAX COLLECTOR USE CASES Property Tax System Professional Services RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page i of 31

152 Table of Contents Presentation and Methodology Bill Maintenance Background Use Cases Payment Processing and Reconciliation Background Use Cases Payment Plans Background Use Cases Customer Service Background Use Cases Tax Sales Background Use Cases Property Tax System Professional Services RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page ii of 31

153 Presentation and Methodology Each Use Case detailed below is a high-level representation of the interactions between an actor and the System. When preconditions have been met and the use case is triggered, the actor will follow the use case flow until the post condition or alternative flow is completed. RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 1 of 31

154 1.0 Bill Maintenance 1.1 Background Introduction Billing and collections are two of the main responsibilities of the Office of the Treasurer and Tax Collector (TTX). The property tax system accepts assessment and tax rate data from the Office of the Assessor-Recorder and Controller s Office to generate all its tax bills for development through Adobe AEM and printing through the City s Department of Reproduction and Mail Services Roll Acceptance The secured and unsecured rolls are transmitted annually to the property tax system with baseline value, ownership and parcel information for billing purposes. Special assessments and other charges are also delivered annually for addition to the secured and unsecured annual bills. Supplemental and escape rolls are delivered in small batches as needed. All may undergo corrective action after the initial charge or assessment. The system must receive the annual baseline roll data and have the capacity to accept and track all changes to its rolls. Any data rejected by the system must have an error tracking and resolution process Bill Generation Large batch bill generation is run annually for the secured and unsecured charges. Supplemental, escape, roll correction, and penalty charges are billed on a periodic basis. During the Bill Generation process, the system calculates correct tax charges based on Assessor and Controller data, identifies and retrieves both parcel information and taxpayer information from the system records based on Assessor data and populates the appropriate Tax Bill templates for production in Adobe AEM. The system will also provide the functionality for TTX to override the default values of the mail date, due date, penalty date, or print date if necessary for a single bill or multiple bills. If not overridden by TTX, the system will reference City-determined business rules for setting mailing dates, due dates, etc. for all assessments and bill types. Finally, a vital part of the Bill Maintenance process is the ability to reprint bills. This process is event driven and will allow the City to reprint bills due to changes, corrections and/or bill reprint requests. The system shall provide a process for the City to reprint bills/statements on demand. RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 2 of 31

155 1.1.4 Overview of Use Cases, Actors, and Triggers for Bill Maintenance Functions Table 1. Overview of Use Cases, Actors, and Triggers for Bill Maintenance Functions Use Case Name Actor Trigger Description Roll Acceptance TTX Staff The system receives assessments and/or special assessments, charges and/or tax changes Bill Generation TTX Staff The system receives notification that the extended tax roll, tax rates, roll corrections, and/or special assessments are complete Process Bankruptcy Notification Bureau of Delinquent Revenue (BDR) Staff Initiated by updates to the BDR system Accepting all value information Generation of bill files Bankruptcy flag in system to prevent bill generation for relevant accounts RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 3 of 31

156 1.2 Use Cases Use Case: Roll Acceptance Actor TTX Staff Purpose and Objectives The secured and unsecured roll data loads and populates the system with assessment, special assessment and charges information that result in annual, supplemental and escape bills. Changes to assessments after delivery of the roll may result in cancellations or corrections of existing bills, issuing of new bills, and/or issuing of refunds. Trigger Event(s) The system receives assessment and/or tax charge data Precondition(s) The system accepts the roll annually Roll changes exist in the system Postcondition(s) The roll is loaded and populated in the system and routed for annual billing Roll changes are processed and routed for new bill and/or refund creation Associated Use Cases Refund Bill Generation CON: Refunds CON: Roll Extension CON: Roll Changes Use Case Flow 1. The system receives the roll and the tax rate; see Use Case: CON Roll Extension 2. The system notifies TTX staff a. The process continues at Use Case: Bill Generation 3. The system receives assessment corrections 4. The system allows TTX Staff to review and validate the roll change and associated bill(s) for issues or questions a. The system allows for the acceptance of roll changes and the ability to suspend issuance of bills during specified periods RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 4 of 31

157 5. The system evaluates the adjustments for changes to current year roll(s) a. If the change is for prior year, the system routes the changes to the Controller, see Use Case CON: Roll Changes 6. The system evaluates if it is a new assessment or a roll correction (downward) a. If it is a new assessment, see Use Case: Bill Generation b. If it is a roll correction to an existing assessment i. and the original bill(s) was not paid, the system corrects the original bill(s) based on the new lower assessment(s), see Use Case: Bill Generation ii. and the original bill(s) was paid, the system corrects the old bill and marks it as paid 1. The system generates a refund request for the over payment difference resulting from the roll correction downward 2. The process continues at Use Case: Refund 7. Assessments that error out are routed back to the Assessor RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 5 of 31

158 1.2.2 Use Case: Bill Generation Actor TTX Staff Purpose and Objectives The system transmits bill information to the Tax Collector s Adobe AEM bill printing process. Trigger Event(s) The system accepts and populates all rolls, tax rates, corrections, and special assessments Precondition(s) The system can send files to the Adobe AEM system Postcondition(s) Bill files are generated Associated Use Cases CON: Roll Extension CON: Refunds CON: Special Charges Changes Use Case Flow 1. TTX Staff edit and update the bill print schedule in the system (if necessary) 2. The system notifies TTX Staff when all required data for generating the scheduled bill files are complete 3. The system generates an extract of the required data to send to the Adobe system to initiate TTX s bill generation process a. The system is required to initiate this process and must be able to interface with TTX s Adobe merge process 4. TTX Staff verify that all necessary data in the system is up to date and authorize printing of the full bill PDF files 5. The system reflects mailing information, e.g., date and other audit trail information TTX Staff manage the Adobe merge process. RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 6 of 31

159 1.2.3 Use Case: Process Bankruptcy Notification Actor BDR Staff Purpose and Objectives PACER contains the list of Bankruptcy accounts for the California Northern District Courts. This information is entered into the BDR system which notifies the Property Tax System. Once notified, the system knows to hold all bill generation for the accounts until the bankruptcy is resolved per an update from the BDR system. Trigger Event(s) Initiated by BDR Staff/system Precondition(s) The system, the BDR system, and the Cashiering System are all interfaced Postcondition(s) Bankruptcy statuses are updated in the BDR and Property Tax systems Associated Use Cases Use Case: Bill Generation Use Case Flow Updated Bankruptcy account and status information is maintained in the BDR system by BDR Staff. The BDR system interfaces with the tax system to transmit bankruptcy information. 1. The system receives notification of Bankruptcy accounts from the BDR system and flags all associated accounts with a bankruptcy flag (including bills, people, etc.) 2. The system updates the running do not send list based on the bankruptcy flag Bankruptcy activities are conducted in the BDR system and bankruptcy payments are processed in the Cashiering System. 3. The system receives notification of updated Bankruptcy account statuses from the BDR system 4. The system identifies whether the new status is a discharge (Taxpayer is released from payment liability) or dismissal (Tax Collector can continue collection) a. If the new status is a discharge, the system notifies TTX Staff of obligation discharge and indicates to update the bill status b. If the new status is a dismissal, the system notifies TTX Staff of the dismissal and indicates to continue billing and collection activities RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 7 of 31

160 2.0 Payment Processing and Reconciliation 2.1 Background Introduction For San Francisco to effectively administer the levying and collection of property taxes, the system shall be able to process and record when taxes are billed and payments are received. The system must be able to register the amount of each payment submitted to the City and relate the payment to the specific bill for which taxes are owed Payment Methods and Processing Payments submissions to the City arrive from taxpayers over the counter, online, and through the mail system. Taxpayers may pay with cash, check, e-check, or credit cards. Payments arrive through the City s centralized Cashiering System and PeopleSoft. Information passes to the Tax system and reconciles with data in the Cashiering System. Reconciliation work occurs outside of the system and occurs daily, monthly, and annually. RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 8 of 31

161 2.1.3 Overview of Use Cases, Actors, and Triggers for Payment Processing and Reconciliation Table 1. Overview of Use Cases, Actors, and Triggers for Payment Processing and Reconciliation Use Case Name Actor Trigger Description Payment Processing Payment Reversals Due to Returned Payments Daily Reconciliation Process Payment Exceptions Process System TTX Staff System TTX Staff TTX Staff Payment filed received from Cashiering System System receives notification of a payment reversal System receives daily payment information from the Cashiering System System generates daily exceptions worklist as scheduled Tax Clearance Letters TTX Staff System receives request for tax clearance letter Monthly Collection Review TTX Staff Initiated by the system according to schedule Current Year Roll Close TTX Staff Initiated by the system according to schedule Refunds TTX Staff The need for a refund is identified Payment files saved in system Saving of payment reversal information End of day reconciliation of payments in the system Resolving of payment exceptions Process request and send tax clearance letter to appropriate parties Monthly reconciliation of payments in the system Process for closing the current year roll Processing of refunds identified through other processes RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 9 of 31

162 2.2 Use Cases Use Case: Payment Processing Actor Cashiering System TTX Staff Purpose and Objectives Payment files enter the tax system and are applied correctly to appropriate accounts Trigger Event(s) A payment file has been received Precondition(s) The system can receive files from the Cashiering System The system can receive journal entries from PeopleSoft Postcondition(s) Payment files are saved in the system Associated Use Cases Daily Reconciliation Process Use Case Flow 1. The system receives payment files/journal entries for all payment collection/tender types with information including, but not limited to: a. List of accounts b. Payment amount c. Tax bill type d. Effective date of payment e. Date payment processed in Cashiering System 2. The Tax system receives the payment file and processes absent human intervention a. The System is able to schedule a file sweep to retrieve and fully import and process the payment file 3. The Tax System applies the money based on preconfigured payment rules a. Items that do not meet the rules are placed into workflow for the users to review 4. Appropriate validation and reconciliation work items are generated 5. The process continues at Use Case: Daily Reconciliation Process RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 10 of 31

163 2.2.2 Use Case: Payment Reversals Due to Returned Payments Actor Tax System Purpose and Objectives Payment reversals are processed in the cashiering system and updated in the Property Tax system. Trigger Event(s) The system receives notification of a payment reversal Precondition(s) The system is interfaced with the cashiering system Postcondition(s) Payment reversals have been saved in the system New bill (with applicable fees) generated Associated Use Cases Bill Generation Daily Reconciliation Process Use Case Flow Payment reversals are processed in the Cashiering System. The Cashiering System identifies the exact payment for reversal and the information populates correctly in the system. 1. The tax system receives notification of a payment reversal from the Cashiering System 2. The system saves the reversal indication and information, e.g. all relevant audit trail requirements are met 3. The system marks the payment record as reversed and reinstates the amount due as if the payment had not been received a. The amount due includes, but is not limited to: i. Penalties ii. Interest iii. Fees as applicable (the system will only assess one NSF fee per payment, even if payment is paying multiple bills) 4. The System initiates the process of regenerating a bill for NSF payments a. The process continues at Use Case: Bill Generation 5. The process continues at Use Case: Daily Reconciliation Process RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 11 of 31

164 2.2.3 Use Case: Daily Reconciliation Process Actor TTX Staff Purpose and Objectives TTX Staff conduct a reconciliation of daily payment information in the Cashiering System, the tax system, and PeopleSoft. Trigger Event(s) Triggered by receiving daily payment information from the Cashiering System Precondition(s) The system is interfaced with the Cashiering System Postcondition(s) Information in the all systems have been reconciled Associated Use Cases Payment Processing Payment Reversals Payment Exceptions Process Use Case Flow 1. The system receives payment information from the Cashiering System daily, posts the payment information to the appropriate accounts, marks fulfilled obligations as paid and indicates additional information as known to the system 2. The system generates two work lists: a. The system creates an End of Day Reconciliation high level view of balances with the sum of all payments that posted by type i. The process continues at Step 3 b. The system creates an Exceptions work list with any exception payments (e.g. duplicate payments, partial payments, etc.) i. The process continues at Use Case: Payment Exceptions Process 3. The system routes the generated high-level view of balances to the preconfigured user(s) for review 4. TTX Staff approve the balances in of End of Day Reconciliation summary RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 12 of 31

165 2.2.4 Use Case: Payment Exceptions Process Actor TTX Staff Purpose and Objectives The system provides Accounting and Reconciliation Staff a mechanism for resolving payment exceptions. Trigger Event(s) Daily Exceptions work list has been generated by the system Precondition(s) The Daily Exceptions work list has been generated Postcondition(s) Exception payments have been resolved Associated Use Cases Daily Reconciliation Process Refund Use Case Flow 1. TTX Staff review the Exceptions work list created during the daily reconciliation process 2. TTX Staff enter the system and make corrections as necessary. Corrections may include, but are not limited to: i. Reversing or canceling duplicate payments ii. Correctly applying misapplied payments iii. Approving payments with documented notes 3. The system posts the updated payment information 4. The system determines if the updated payment information generates any overpayments and the process continues at Use Case: Refund RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 13 of 31

166 2.2.5 Use Case: Tax Clearance Letters Actor TTX Staff Purpose and Objectives To complete a subdivision or condominium conversion owners must provide a Tax Clearance Letter certifying that they have paid future property taxes for the fiscal year in which the original parcel will be split or merged. Trigger Event(s) The system receives a Tax Clearance Letter request Precondition The system can receive future year assessments from the Assessor s system The system can recognize estimated future year tax rates Postcondition System recognizes and logs payment for a future tax year where no roll exists San Francisco Department of Public Works is informed of Tax Clearance Letters Owner receives a copy of the Tax Clearance Letter sent to Public Works Associated Use Cases Use Case: Payment Exceptions Process Use Case Flow 1. The system receives notification of a Tax Clearance Letter request 2. The system calculates the future year estimated tax based on information including, but not limited to: a. A future year assessment provided by the Assessor s Office b. A future year estimated tax rate 3. TTX Staff reviews and approves the calculation in the system and the creation of the Tax Clearance Letter 4. The system holds the Tax Clearance Letter as pending payment and generates an estimated tax bill and stub (See Use Case: Bill Generation) 5. The system sends updated payment information to the Cashiering System 6. The system accepts estimated tax payment within set date tolerance and holds in pending status until new roll is delivered 7. The system releases the electronic Tax Clearance Letter once payment is received RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 14 of 31

167 2.2.6 Use Case: Monthly Collection Review Actor TTX Staff Purpose and Objectives TTX Staff conduct a reconciliation of monthly payment information in the Cashiering System, the tax system, and PeopleSoft. Trigger Event(s) Initiated by the system as scheduled Precondition(s) The monthly collection summary has been scheduled and configured in the system The tax system captures all payments from the Cashier system, including underpayments and pending payments The tax system captures all payments outside the Cashier system, including journal entries and overpayment transfers Postcondition(s) Monthly collections have been reconciled and sent to the Controller s Office Associated Use Cases NA Use Case Flow 1. The system generates the monthly collection work list by calculating the total of all payments for the month by tax type and year and cumulative year-to-date amounts and dates to capture all changes 2. The system prompts TTX Staff to review the monthly collection work list 3. TTX Staff view the monthly collection work list and adjust as necessary. Adjustments and changes may include, but not be limited to: a. Department transfers b. Over payments c. JE tracker 4. The system updates the monthly work list to reflect adjustments and notifies the next designated user to review the updated monthly collection work list 5. TTX Staff compare the monthly payment information from the Cashiering System, tax system, and Peoplesoft a. If the monthly information does not match, TTX Staff research the discrepancy and makes the necessary adjustment b. If the monthly information matches, TTX Staff confirm and send the file (not paper) to the Controller s Office for their reconciliation RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 15 of 31

168 2.2.7 Use Case: Current Year Roll Close Actor TTX Staff Purpose and Objectives The Tax Collector performs current year roll close activities annually as scheduled in the system. These activities include reviewing an annual reconciliation summary, identifying and updating accounts meeting redemption criteria, routing secured accounts that can only be collected as unsecured to BDR, and generating roll close/roll open summaries. Trigger Event(s) Initiated by the system according to schedule Precondition(s) Roll close dates have been scheduled in the system Postcondition(s) The current year roll has been closed The tax system can accept files or inputs from the BDR system Associated Use Cases Daily Reconciliation Process Monthly Collection Report Use Case Flow 1. The system monitors for preconfigured roll close dates as scheduled in the system 2. The system notifies the Assessor s Office to hold specific assessment updates and changes based on obligation due dates including, but not limited to: a. Current year roll corrections b. New escapes c. Changes to current year escapes 3. At a predetermined date, the system ensures that all data required for reconciliation work has been completed (e.g. pending payments are posted, back-dating is completed, payments toward plans are reconciled) 4. The system locks the tax roll for new payments and increments to a new current year roll 5. The system generates a reconciliation worklist on cumulative year-to-date payments (both within and outside the Cashiering System) based on a preconfigured template and business rules and routes the information to Accounting to complete reconciliation activities RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 16 of 31

169 6. TTX Staff indicate in the system that reconciliation work has been completed a. The system generates any and all electronic certification reports that the reconciliation of the roll year is complete 7. The system identifies all accounts that meet redemption criteria including, but not limited to: a. Unpaid prior year redemption accounts b. Payment plan accounts with a current year default (including unpaid escape or supplemental) c. Unpaid secured accounts (including escape and supplemental) d. Unpaid special assessments on secured accounts 8. The system reviews the identified accounts against accounts in redemption and updates the list of redemption accounts 9. The system generates two account lists for TTX Staff review: a. The system creates a pending list of secured accounts that can be collected on the unsecured roll i. These accounts include, but are not limited to: 1. Possessory Interest 2. Utility 3. Board of Equalization ii. TTX Staff review and route the accounts to BDR for collection 1. All accounts sent to BDR for collection shall have a flag placed indicating that BDR holds primary collection responsibility b. The system creates a pending tax default list from year-end reconciliation including penalties, fees, and balance as scheduled 10. Tax Collector Staff conduct necessary review of the redemption files and update the list of pending tax default records to be added to redemption 11. The system generates statement of accounts to redemption on a designated date or as indicated by user 12. The system generates all necessary roll close/open electronic reports as preconfigured in the system RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 17 of 31

170 2.2.8 Use Case: Refunds Actor TTX Staff Purpose and Objectives The need for a refund may be identified in many processes. Some refunds can be automatically generated by the system if they meet preconfigured criteria. Trigger Event(s) Surplus is identified by a payment or an action (i.e. waiver, reduction, overpayment etc.) in the system Precondition Automated refund process is preconfigured in the system The system is interfaced with the City s financial accounting system (PeopleSoft) Postcondition Refunds have been calculated, reviewed, and processed Associated Use Cases Bill Generation CON Refunds Use Case Flow 1. The system identifies records marked for refund from other processes 2. The system determines any amounts due and any to withhold for other obligations a. The system applies any withheld amounts to bills per business policy and routes to TTX staff for approval 3. The system identifies if the refund can be automated a. Automated refund criteria include, but is not limited to: i. No Change in Ownerships (CIOs) on the property since the correction year ii. Refund amounts less than $5000 iii. Interest owed is less than $600 iv. No Tenants in Common (TIC) properties b. If the refund can be automated, the refund information is sent to PeopleSoft for issuance of refund payment i. Refund information is sent in a pre-configured file format RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 18 of 31

171 ii. PeopleSoft sends updated information on the refund information including, but not limited to: 1. Check number 2. Refund status c. Items that do not meet the criteria for automated refund move through a manual process within PeopleSoft 4. The system determines if a new bill is required a. If a new bill is not required, the process ends b. If a new bill is required, the system routes data to TTX i. The process continues at TTX Use Case: Bill Generation RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 19 of 31

172 3.0 Payment Plans 3.1 Background Introduction The City offers payment plans to pay off a limited scope of bills. To enroll in a plan, the system shall be able to identify eligible tax bills. A voluntary application process follows, where a Payment Schedule is established and enrollment is confirmed with an initial payment and taxpayer agreement. The system evaluates the status of the payment plans annually to determine if payment plans are in good standing, defaulted, or have been fully resolved (paid) Overview of Use Cases, Actors, and Triggers for Payment Plans and Refunds Functions Table 1. Overview of Use Cases, Actors, and Triggers for Payment Plans and Refunds Functions Use Case Name Actor Trigger Description Payment Plan Enrollment Annual Payment Plan Review TTX Staff Taxpayer System Request for a redemption, escape or bankruptcy payment plan Initiated by the system according to schedule Payment Plan Notices TTX Staff Initiated by the system according to schedule Process for enrolling a Taxpayer in a redemption, escape or bankruptcy payment plan Evaluation and defaulting of select payment plans as necessary Generating and sending payment plan notices to Taxpayers enrolled in payment plans RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 20 of 31

173 3.2 Use Cases Use Case: Payment Plan Enrollment Actor TTX Staff Taxpayer Other legal entity (e.g. court) Purpose and Objectives Property accounts with select bills (by type or standing) may enroll in a payment plan if they meet certain criteria. Redemption, escape and bankruptcy payment plans have separate qualification criteria. The system will support the enrollment process by providing eligibility information and eligible bills as needed. Trigger Event(s) Request for a redemption, escape or bankruptcy payment plan Precondition(s) Redemption payment plan eligibility criteria is saved in the system Escape payment plan eligibility criteria is saved in the system The system can accept bankruptcy plans where eligibility is established outside the system Postcondition(s) Payment plans are enrolled System accepts and tracks payments outside Cashiering payment rules for select bills System suspends application of penalties and calculates interest where applicable Associated Use Cases Annual Payment Plan Review Payment Plan Notices Payment Exception Processing Use Case Flow 1. Tax Collector Staff receive a request to enroll a payment plan 2. The system determines if the account is eligible for a payment plan based on preconfigured business rules and eligibility criteria (which differs for redemption, escape, and bankruptcy) a. If the system determines that the account is not eligible for a payment plan, the system provides the reason(s) the account is not eligible to TTX Staff for review RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 21 of 31

174 b. If the system determines that the account is eligible for a payment plan, the system displays all eligible bills 3. The system calculates and displays the payment plan information based on preconfigured templates and business rules 4. TTX Staff communicates the payment plan information and payment options 5. TTX Staff works with the account holder/legal entity to determine which bills to include in the payment plan 6. Authorized TTX Staff can alter payment plan components within set tolerances 7. The account holder/legal entity confirms agreement with the payment plan and provides any required information, e.g. additional contact information including address or phone number 8. TTX Staff enters the required information into the system and indicates Taxpayer agreement with the payment plan 9. The system sends updated payment information to the Cashiering System including, but not limited to: a. Initial payment amounts due to complete plan enrollment 10. The system maintains the payment plan in a pending status per business policy until initial payment is received prior to due date 11. System updates the payment plan status to enrolled 12. System displays future plan payment information and can gather this data for printing bill stubs as needed RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 22 of 31

175 3.2.2 Use Case: Annual Payment Plan Review Actor Tax System Purpose and Objectives The system evaluates payment plans on pre-determined schedule to identify any to be defaulted due to missing payments Trigger Event(s) Initiated by the system on a preconfigured date Precondition(s) The system has information about payment plan payments Postcondition(s) Payment plans defaults have been processed Penalties are reinstated for select amounts due based on business rules Associated Use Cases Payment Plan Enrollment Payment Plan Notices Current Year Roll Close Use Case Flow 1. The system evaluates each payment plan on a preconfigured date a. The system evaluates if a payment was received timely for the plan i. If the full payment plan was paid off (no subsequent amounts due), the system marks the payment plan as resolved and the process ends ii. If the payment plan amount due was not paid off, the process ends iii. If the payment plan agreement has been met by the taxpayer, the process continues 2. The system defaults payment plans according to preconfigured business rules associated with each plan type including, but not limited to: a. Applying penalties, interest, and fees b. Applying the review date as the date of delinquency c. Rolling the unpaid balance with penalties and interest to redemption as needed at a preconfigured date (escape and bankruptcy only) RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 23 of 31

176 3.2.3 Use Case: Payment Plan Notices Actor TTX Staff Purpose and Objectives Payment plan notices should be sent to select payment plan holders as scheduled in the system. The system generates the payment plan data for Adobe AEM. Trigger Event(s) Initiated by the system according to preconfigured schedule Precondition(s) Payment plan notice dates are saved in the system The system has information about payment plan payments The system can send files to Adobe AEM Postcondition(s) Notice files have been generated Associated Use Cases Bill Maintenance Payment Plan Enrollment Annual Payment Plan Review Use Case Flow 1. The system monitors for payment plan notice dates and payments towards current year amount due 2. The system notifies TTX Staff when all required data for generating scheduled notice files is complete 3. The system calculates the current year payment amount due for each payment plan and generates the payment plan notice information for Adobe AEM (e.g. payment amount, payment due date, total left, expected pay off date, etc.) a. The process continues at Use Case: Bill Maintenance RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 24 of 31

177 4.0 Customer Service 4.1 Background Introduction TTX is a Taxpayer-facing organization and provides customer service to taxpayers throughout the year. Taxpayer inquiries can be answered through a review of the tax system. Complex inquiries as specified by business policy shall be documented in the tax system Overview of Use Cases, Actors, and Triggers for Customer Service Functions Table 1. Overview of Use Cases, Actors, and Triggers for Customer Service Functions Use Case Name Actor Trigger Description Customer Service TTX Staff Initiated by Taxpayer questions Process for documenting and resolving Taxpayer questions RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 25 of 31

178 4.2 Use Cases Use Case: Customer Service Actor TTX Staff Purpose and Objectives The tax system user interface provides a wide variety of information accessible to authorized users to answer all taxpayer inquiries and document select complex cases as per business policy. Trigger Event(s) Initiated by Taxpayer question Precondition(s) Criteria for identifying whether to document Taxpayer issues in the system have been developed Postcondition(s) Taxpayer questions have been documented in the system appropriately Taxpayer questions have been resolved Associated Use Cases NA Use Case Flow 1. TTX Staff receive Taxpayer questions through a variety of methods 2. TTX Staff search in the system to identify Taxpayer accounts and answers to Taxpayer questions. Search may be done on a number of characteristics, including but not limited to: a. Owner b. Block/Lot c. d. Phone number (if known) 3. Select complex cases may be documented in the tax system RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 26 of 31

179 5.0 Tax Sales 5.1 Background Introduction Tax defaulted properties are identified according to City maintained business rules. Once identified, a series of activities and tasks must be performed to legally sell tax-defaulted property Tax Preparation Activities Successful completion of a tax auction is dependent on meeting a series of requirements and milestones. The System shall identify eligible accounts, track or flag status and maintain additional information, e.g. lien information or publication dates. The system must provide minimum amounts due for future dates and allow for the addition of penalties and fees as needed. The System shall provide reports for external stakeholders. The system may provide workflows and checklists Overview of Use Cases, Actors, and Triggers for Tax Sales Functions Table 1. Overview of Use Cases, Actors, and Triggers for Tax Sales Functions Use Case Name Actor Trigger Description Tax Sales Preparation TTX Staff Initiated by the system according to preconfigured schedule Rescission of Power to Sell Post Auction Payment Processing and Auction Closing TTX Staff TTX Staff A Taxpayer attempts to submit payment for a Tax Sale property Initiated by the Tax Sales Vendor Finalize properties to be sold in the tax sale Remove tax sale properties from power to sell due to payment Post Auction information in system RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 27 of 31

180 5.2 Use Cases Use Case: Tax Sales Preparation Actor TTX Staff Purpose and Objectives Properties in default for five years or greater are eligible for tax sale. Preparation activities include mailing certified notices through the Department of Reproduction and Mail Services, filing and removing liens through the Recorder system, publishing default lists in newspapers, establishing minimum bid prices for auction properties, notifying the Cashiering System of the properties to be auctioned and reporting on account activities to stakeholders, including the Board of Supervisors. Trigger Event(s) Initiated by the system according to preconfigured schedule Precondition(s) System capable of identifying auction accounts Minimum bid price calculation is preconfigured in the system Reporting and letter templates are available in system System receives/provides files from Recorder system Postcondition(s) Creation of auction files for each auction type by year Auction properties move through the tax sale process to completion Associated Use Cases Auction Close Rescission of Power to Sell Use Case Flow 1. The system identifies impending power to sell properties on a preconfigured schedule 2. The system routes all impending power to sell status properties to TTX staff for review prior to placing in power to sell 3. The system develops impending power to sell reports/worklists for certified noticing a. The process continues at Use Case Bill Generation b. The system accepts certified mailing information from the Department of Reproduction and Mail Services 4. The system develops power to sell reports/worklists for liens RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 28 of 31

181 a. The system sends power to sell lien data to the Recorder system b. The system accepts lien information from the Recorder system and puts these properties in power to sell status 5. The system identifies all power to sell status properties that meet the pre-configured criteria for receiving a pre-demand letter a. The process continues at Use Case Bill Generation 6. The system calculates and establishes a minimum bid price for each property. Minimum bid prices are calculated based on data including, but not limited to: a. Total redemption balance plus fees b. Current year tax if bill has been calculated c. Money due to the property tax postponement (PTP) program d. Auction costs 7. TTX Staff reviews and adjusts the list of properties and minimum bid prices including notating reason for any adjustments 8. The system develops a tax sale report for stakeholders 9. The system sends the list of auction properties to the Cashiering System for exceptions processing per business rules; this list refreshes periodically as properties redeem or auction completes RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 29 of 31

182 5.2.2 Use Case: Rescission of Power to Sell Actor TTX Staff Purpose and Objectives Payments for tax sale properties may be accepted prior to the tax sale if the payment is equal to or greater than the minimum bid for the property. These properties are redeemed and no longer eligible for auction. Trigger Event(s) A Taxpayer attempts to submit payment for a Tax Sale property Precondition The Cashiering System is able to provide payment information to the system The system recognizes when a payment results in a rescission of power to sell Postcondition Payments for Tax Sale properties have been reviewed and either rejected or accepted Tax Sale properties with accepted payments have been removed from the auction Associated Use Cases Payment Exceptions Process Use Case Flow 1. The system receives notice of Tax Sale property payments from the Cashiering System 2. The system notifies TTX Staff that a qualifying payment has been received for redeeming an auction property 3. The system rescinds the Power to Sell through the Recorder system 4. The system removes the properties from the auction list 5. The system generates reports of redeemed parcels for external stakeholders RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 30 of 31

183 5.2.3 Use Case: Post Auction Payment Processing and Auction Closing Actor Tax Sales Team Purpose and Objectives A third-party Tax Sales Vendor conducts the Tax Sale and provides a report to TTX. The system accepts updates on sale information through the Cashiering System. Trigger Event(s) Initiated by the Tax Sales Vendor Precondition The system can accept files from external vendors The system can receive payment files from the Cashiering System Postcondition The system is updated with Tax Sale information Associated Use Cases NA Use Case Flow 1. The Tax Sales Vendor sends sale information for upload to the system 2. The system associates offer and successful sale information with the correct properties 3. The system sends tax sale information to the Recorder system 4. The system generates post-sale reports for external stakeholders 5. The system generates information for certified notices to previous owners 6. The system accepts certified mailing information from the Department of Reproduction and Mail Services RFP #TTX Attachment D Treasurer and Tax Collector Use Cases Page 31 of 31

184 ATTACHMENT E: JOINT SYSTEM INTEGRATION PLAN 1.0 Current and Future State System Environment Current State System Environment Future State System Environment Future State Systems Property Assessment System Property Tax System Interfaces Property Tax System Interfaces Financial Accounting System (PeopleSoft) Cashiering System (Wausau) Adobe AEM Bureau of Delinquent Revenue System BI/Analytics Tool (Oracle BI) Property Assessment System RFP# TTX Attachment E Joint System Integration Plan Page 1 of 10

185 1.0 Current and Future State System Environment 1.1 Current State System Environment The City s current property tax system environment is primarily built around two legacy systems: 1. Property Assessment System: The City s current central Property Assessment System is EZ Access, which has been in place for more than 15+ years. EZ Access is a COBOL, DB2 Data Base running on an AS400 system that is maintained by the original developer, Hamer, Inc., for the Office of the Assessor-Recorder. EZ Access primarily functions as the system of record for the City s property and assessment information. 2. Property Tax System: The City s current central Property Tax System is CICSP and is the basis for all official property taxation and billing. CICSP is a COBOL, file based mainframe system that has been custom developed over 20+ years to meet the City s property tax needs for the Controller and Treasurer and Tax Collector offices. The major functions of CICSP include account and records management, redemption management, payment plan creation and management, and bill generation functions. CICSP is supported by the Office of the Treasurer and Tax Collector and maintains the property tax records for the City. Although these systems form the core of the property assessment and tax system environment, property assessment and tax activities receive data from and provide data to a variety of other City departments and external sources. This data is brought in and sent out through a series of manual and/or automated interfaces and processes. Additionally, the City s property assessment and tax business needs continue to evolve to meet changing business and legal requirements. As a result, the Offices of the Assessor-Recorder, Controller and Treasurer and Tax Collector have leveraged a variety of standalone systems, spreadsheets (both standard and custom made), and other tools to conduct, track, maintain, and report on various functions not available. Some example functions are: 1. Workflow tracking 2. Commercial and Industrial appraisals 3. Proration of assessments These needs have resulted in a complex current state system environment as represented in Figure 1 and Figure 2 below. Note: These diagrams provide a conceptual view of the technology environment and do not represent system architectural diagrams RFP# TTX Attachment E Joint System Integration Plan Page 2 of 10

186 Figure 1: Current State System Environment (EZ Access) Figure 2: Current State System Environment (CICSP) RFP# TTX Attachment E Joint System Integration Plan Page 3 of 10

187 2.0 Future State System Environment This Joint System Integration Plan is part of a larger effort by the City to replace its two legacy systems. The Offices of the Assessor-Recorder, Controller and Treasurer and Tax Collector have identified a number of joint and individual goals for the new Property Assessment System and Property Tax System. Incorporated into these goals is the desire to reduce/eliminate the need for the spreadsheets and tools that are currently being used to augment the legacy technology. These new systems can also improve the interfaces to other City systems by reducing/eliminating the need for manual intervention. The envisioned future state system environment is represented in Figure 1 below. Note: The diagram provides a conceptual view of the technology environment and does not represent system architectural diagrams Figure 1: Future State System Environment Key improvements in the future state system environment for the Offices of the Controller and Treasurer and Tax Collector include: 1. Cross-departmental integration for all property assessment and tax functions with the ability to have a business intelligence/analytics tool that spans all property assessment and tax data 2. Reduction or elimination of the need for external spreadsheet and tools to manage and complete work 3. Direct interfaces with the Cashiering System and AdobeAEM 4. Enabling of Special Assessment districts to provide information electronically through an online portal RFP# TTX Attachment E Joint System Integration Plan Page 4 of 10

188 3.0 Future State Systems 3.1 Property Assessment System Below is an overview of the functionality and data interactions of the Property Assessment System Functionality The Property Assessment System and associated staff cover all functionality related to property assessment, including: Identification of property and property characteristics Map and boundary changes Review of officially recorded property related documents Identifying property ownership and ownership changes Capturing relevant property related information such as leases, sale prices, transfer taxes etc. Review of relevant property-related permits Identification and monitoring of property-related calamities Identification and monitoring of property under any decline in value program(s) Identification and monitoring of property under different exemptions Property appraisal and valuation for real, business, and personal property Identification, monitoring, and processing of exemptions, exclusions, and base year value transfers Importing, interfacing, or capturing data from different subscriptions and or sources Identifying assessment corrections Providing public services Data Overview Data Received Data Created/Updated Data Passed From the Recorder System (CRiis): Indexing Recorded Documents From the Department Building Inspections System (Accela) and Port Authority System: Permit Information Building characteristics From the Business Tax System (Aumentum): Business Discovery and Closure Return Mail Data regarding Parcel characteristics, such as: APN Block Lot Address Parcel Splits Address Property Type Data regarding Ownership, such as: Owner(s) Percent Owned by Owner Address To the Property Tax System: Rolls (Secured, Unsecured, Corrections, Supplementals, Escapes, etc.) To the document management system (Hyland): Document index To the Planning Department: Property characteristics To the BI/Analytics Tool: All data RFP# TTX Attachment E Joint System Integration Plan Page 5 of 10

189 From the Enterprise Address System: Addresses From the document management system (Hyland): Documents From Taxpayers: Business statements Exemption filings Change of Address From the Assessment Appeals Board System: Properties being appealed Appeals schedules Data regarding Appraisal, such as: Methodology Property Characteristics Comparables Data regarding Rolls, such as: Year Type Value To the Assessment Appeals Board System: Property assessments To the Internal City Department Access location: All non-private data RFP# TTX Attachment E Joint System Integration Plan Page 6 of 10

190 3.2 Property Tax System Below is an overview of the functionality and data interactions of the Property Tax System. Functionality The Property Tax System and associated staff cover all functionality related to property taxation, including: Maintaining historical and current taxing entities information Maintaining the secured, unsecured, supplemental, and redemption tax rolls Computing all tax obligations Maintaining bond and other property-tax-related debt information Maintaining special assessments data Calculating property tax revenues owed to taxing agencies pursuant to California law Apportioning property tax and other revenues (e.g. In-lieu of VLF, pass through payments) to taxing agencies Processing roll changes (including refunds, escapes, and/or corrections to tax bills) Reporting on property tax revenues pursuant to California law Generating bill templates and providing data to populate templates Collecting and managing tax payments Managing and updating corrected bills Managing delinquent secured bills and payments Applying penalties, interest, and fees as applicable Administering multi-year payment plans where applicable Monitoring and tracking bills related to bankruptcy proceedings Conducting and managing liens and appropriate seizures Performing property tax sales Data Overview Data Received Data Created/Updated Data Passed From the Property Assessment System: Rolls Parcel characteristics From the Special Assessment Agencies: Parcels Charges From the Bureau of Delinquent Revenue System: Bankruptcy From the Cashiering System (Wausau): Payments Received Data regarding Tax Rates, such as: Ad valorem Special Assessment Bond rates Data regarding Billing, such as: Tax Amount Penalties Fees Delinquency Data regarding Apportionment, such as: City ERAF VLF IFDs Redevelopment Successor Agency To the Cashiering System (Wausau): Billing To the Bureau of Delinquent Revenue System: Unsecured Delinquent Accounts To Adobe AEM: Billing To the Financial Accounting System (PeopleSoft): Refunds Revenue Allocations To the BI/Analytics Tool: All data RFP# TTX Attachment E Joint System Integration Plan Page 7 of 10

191 4.0 Interfaces 4.1 Property Tax System Interfaces Each of the data interfaces that will be needed for the Property Tax System is detailed below. Figure 1 provides an overview of all the interfaces. Figure 1: Overview of Property Tax System Interfaces Financial Accounting System (PeopleSoft) Interface #1 Type Batch Direction Bidirectional Frequency Nightly Data The Property Tax System must be able to send refund data. The Property Tax System must be able to receive apportionment information. RFP# TTX Attachment E Joint System Integration Plan Page 8 of 10