Approve agreement with Megabyte Systems Inc. for property tax system maintenance and support for fiscal years 2024-25, 2025-26, 2026-27, and 2027-28 not to exceed the level of the Consumer Price Index (CPI) increase. (General fund impact: $316,722.91) (Haynes/Xiong)

Approve and authorize the County Assessor-Clerk-Recorder-Registrar of Voters and the County Chief Financial Officer to sign the agreement with Megabyte Systems Inc. for property tax system maintenance and support for fiscal years 2024-25, 2025-26, 2026-27, and 2027-28 with cost increases not to exceed Consumer Price Index (CPI).

The Megabyte Property Tax System was first implemented in the County for the 2008-09 fiscal year. At that time, the system cost approximately $922,000 to purchase and implement (excluding staff time and effort for which information is not readily available). Megabyte is a three-part system designed to manage information for the different offices involved in the property tax process, and move required documentation between the County Assessor, County Auditor-Controller, and County Tax Collector in order to bring efficiencies in administering the property tax system. The County Auditor-Controller's Office was consolidated with the Treasurer-Tax Collector's Office in 2007 and both functions were further consolidated in 2014 under a Chief Financial Officer in the Department of Financial Services (DFS).

The Megabyte system has reached an age of sixteen years. However, continuous improvements made by the vendor have ensured that the system continues to meet the needs of the County and its property tax administration process. Since the time Yolo County implemented the Megabyte system, the statewide user base has expanded. According to available data published by the vendor, 35 of the 58 counties are now on the Megabyte platform. In comparison, the next largest group of counties on a common tax system is 8 counties that are on the Thompson Reuters Aumentum system. The remaining counties generally have in-house custom-built systems or are on other systems.

Costs for maintenance and support for the Megabyte system are included in the Property Tax Administration charges that are billed to eligible taxing entities (school districts, colleges, and office of education are legally excluded from paying property tax administration charges). At the June 10, 2008, Board meeting, when the Megabyte system was approved, the Board of Supervisors delegated authority to the County Assessor and County Auditor-Controller-Treasurer-Tax Collector to renew the Software Maintenance Agreement annually. On July 1, 2018, the Board of Supervisors updated the County procurement policy which rescinded prior delegated procurement authority to Department Heads outside the Procurement Agent function. DFS returned to the Board of Supervisors to obtain approval and delegation of authority to renew the agreement in 2019 and again in 2023. In collaboration with the Assessor-Clerk-Recorder-Elections (ACE) department, it has been determined that it would be beneficial to renew the agreement for longer-term as opposed to an annual agreement as has been done in the past. The Megabyte system continues to meet the needs of the County and, due to the high costs of moving to another system, staff are recommending a longer-term agreement to lessen the administrative burden that is required to renew annually. 

As a result, DFS is requesting approval and a delegation of authority by the Board of Supervisors for the County Assessor-Clerk-Recorder-Registrar of Voters and Chief Financial Officer to execute the Megabyte software maintenance and support agreement for the fiscal years 2024-25, 2025-26, 2026-27, and 2027-28. The cost for fiscal year 2024-25 is $316,723 with cost increases in the proceeding fiscal years not to exceed the level of the Consumer Price Index (CPI) increase.  

The Department of Financial Services collaborated with the Assessor-Clerk-Recorder-Election Department and County Counsel on the renewal of the Megabyte software maintenance and support agreement.