HomeMy Public PortalAbout06-13-2005 Regular Session
Minutes
June 13. 2005 Regular Board Meeting
Page 1 of8
Minutes Approved: July 1.1. 2005
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Town
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Hill~ -
MINUTES
HILLSBOROUGH TOWN BOARD
June 13, 2005
7:30 PM, Town Barn
The Hillsborough Town Board held a regular meeting on June 13~ 2005 at 7:30 PM in the
Hillsborough Town Barn. Present for the Board Meeting were Mayor Joe Phelps, and
Commissioners Eric Ha1lm~ Frances Dancy, Michael Gering, Brian Lowen, and Evelyn Lloyd.
Staff present were Town Manager Eric Peterson, Assistant Town Manager/Public Works
Director Demetric Potts~ Town Clerk Donna Armbrister~ Management Intern Christina Riordan~
Planning Director Margaret Hauth, Finance Director Greg Siler~ Town Engineer Kenny Keel,
Interim Police Chief Judy Jacobs, and Town Attorney Bob Hornik.
7:33:35 PM Mayor Joe Phelps called the meeting to order at 7:33 PM.
1. PUBLIC CHARGE
. Mayor Phelps did not read the Public Charge, but stated that it would be adhered to.
2. AUDIENCE COMMENTS REGARDING MATTERS NOT ON THE PRINTED
AGENDA
There were no audience comments.
3. AGENDA CHANGES & AGENDA APPROVAL
7:34: 18 PM Town Manager Eric Peterson added as Item G the Consideration of an Ordinance to
amend Chapter 4-15 of the Town Code regarding Political Activity to the Consent Agenda.
7:34:36 PM Mayor Phelps added an Item regarding potential litigation added to the Closed
Session as authorized by North Carolina General Statute Section 143- 318.11 (3).
4. PRESENTATION
A. Presentation by Jim R. Dooley, Hog Day Chairm~ of Board and staff invitation to
2005 Hog Day Event
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7:35:37 PM Jim Dooley, Hog Day Chairm~ addressed the Board and invited the Board and
staff to attend the 23rd Annual Hog Day event beginning on Friday night and ending Saturday at
6:00 PM.
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Minutes 191.
June 13. 2005 Regular Board Meeting
Page 2 018
Minutes Approved: July 11. 2005
5. APPOINTMENTS
A. Re-appoint George Campbell to a second full term on the Parks and Recreation Board
with a term to expire March 30, 2008
7:38:32 PM Upon a motion by Commissioner Gering~ seconded by Commissioner Dancy~ the
Board moved to re-appoint George Campbell to a second full term on the Parks and Recreation
Board with a term to expire March 30~ 2008 by a vote of 4-0. The Motion was declared passed.
6. APPROVAL OF THE MINUTES OF THE APRIL 21, 2005 SPECIAL MEETING;
THE APRIL 25, 2005 MONTHLY WORKSHOP; THE APRIL 25, 2005 MONTHLY
WORKSHOP CLOSED SESSION; THE MAY 9, 2005 TOWN BOARD MEETING;
THE MAY 9, 2005 TOWN BOARD MEETING CLOSED SESSION; THE MAY 16,
2005 BUDGET WORKSHOP; THE MAY 16,2005 BUDGET WORKSHOP CLOSED
SESSION; THE MAY 23, 2005 PUBLIC HEARING AND BUDGET WORKSHOP;
THE MAY 23, 2005 BUDGET WORKSHOP CLOSED SESSION; THE MAY 26,
2005 SPECIAL MEETING; AND THE JUNE 6, 2005 BUDGET WORKSHOP
7:39:47 PM Upon a motion by Commissioner Gering, seconded by Commissioner Dancy, the
Board moved to approve the Minutes of the April 21 ~ 2005 Special Meeting; the April 25~ 2005
Monthly Workshop; the April25~ 2005 Monthly Work Session; the May 9~ 2005 Town Board
Meeting; the May 9, 2005 Town Board Meeting Closed Session; the May 16, 2005 Budget
Workshop; The May 16, 2005 Budget Workshop Closed Session; the May 23, 1005 Public
Hearing and Budget Workshop; the May 23,2005 Budget Workshop Closed Session; the May
26~ 2005 Special Meeting; and the June 6, 2005 Budget Workshop as presented by a vote of 4-
O. The motion was declared passed.
7. COMMITTEE REPORTS
Commissioner Gering stated that he had attended the Transportation Advisory Committee
meeting in Commissioner Hallman~s place but nothing transpired to report on.
8. REPORT FROM THE TOWN MANAGER
7:40:49 PM Town Manager Eric Peterson reported that a temporary Code Enforcement Officer
started work today.
7:42:30 PM Commissioner Evelyn Lloyd arrived at the meeting.
9. REPORT FROM THE TOWN ENGINEER
7:43:22 PM Town Engineer Kenny Keel gave a status report on all water and sewer projects.
He also stated that they are still on target to begin using chloramines on July 6th.
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Minutes Approved: July 11, 2005
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10. ITEMS FOR DECISION - CONSENT AGENDA
A. Consider Approval of Contract from Dixon Hughes to perform audit for fiscal year
ending June 30, 2005
B. Consider Approval of Position Description and Classification of Accounting Technician
C. Consider Approval amendment to Town's Job Classification List - Grade Order (Salary
Ranges) as recommended by the Town~s Classification and Pay Consultants~ The
Archer Company
D. Consider Approval of Miscellaneous Budget Amendments
E. Consider Acceptance of Old Mill Phase 3 Utilities and start of Warranty
F. Consider Acceptance of Patriots Pointe Utilities and start of Warranty
ADDED ITEM G. Consider Approval of an Ordinance to Amend Chapter 4-15 of the Town
Code regarding Political Activity
7:48:27 PM Upon a motion by Commissioner Lowen, seconded by Commissioner Dancy, the
Board moved to approve Items A-G of the Consent Agenda as presented by a vote of 5-0. The
motion was declared passed. A copy of the Contract from Dixon Hughes to perform the Fiscal
year ending June 30~ 2005 audit; the Position Description and Classification of Accounting
Technician; the Classification List-Grade Order; and the Miscellaneous Budget Amendments
are hereby incorporated by reference and made a part of these official Minutes as Attachments.
11. ITEMS FOR DECISION - REGULAR AGENDA
A. Continued discussion of proposed right-of-way changes related to the proposed Gateway
Center at 228 South Churton Street
7:49:02 PM The Board agreed to spend no longer that 20 minutes on this Item since there are so
many issues left on the agenda to discuss.
7:50:] 7 PM Jim Parker with Summit Consulting Engineers presented additional options for the
proposed Gateway Center for the Board to consider. Mr. Parker stated that they feel Option A
is still the safest Option, but they would also consider Option E & F if the Board would agree.
8:23:28 PM After much discussion, and upon a motion by Commissioner Gering, seconded by
Commissioner Lowen, the Board moved to approve the Resolution of Intent to Close Portions
of Alley Way Between Margaret Lane and N & K Street and to Close a Portion of Exchange
Park Lane, Pursuant to NC General Statutes 160A-299 and set Public Hearing for July 26 at
7:00 PM by a vote of 5-0. The motion was declared passed. A copy of the Resolution is
hereby incorporated by reference and made a part of these official Minutes as an Attachment.
B. Citizen, Bruce Watson of2725 Hayes Drive will address the Town Board regarding the
Disconnection of his Water Service
8:30:28 PM This Item was tabled due to the citizen not being present.
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Minutes Approved: July 11, 2005
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C. Consideration of Special Use Permit for Fox Haven to develop Phase 1 to include 9,000
sf conference center, 7500 sf of office/retail, and 4200 sf of commercial space and
related parking on the north side of US 70A,just east ofNC 86 (TMBL 4.37.C.22)
8:30:43 PM Planning Director Margaret Hauth presented the Special Use Permit Request from
Fox Haven for the Board's consideration. She stated that there are some differences in this plan
from what was shown in the Master Plan. This plan shows significantly more parking, and
sidewalks. The Planning Board voted to unanimously recommend approval of the Special Use
Permit.
8:50:09 PM Town Attorney Bob Hornik suggested making a notation in the SUP that the Board
reserves the right to re-examine the requirement of a turn lane whether NCDOT requires it or
not when the next phase is developed.
8:56:17 PM The Board suggested changing the facility's hours of operations to 7:30 AM - 2:00
AM.
8:58:26 PM Upon a motion by Commissioner Gering~ seconded by Commissioner Hallman, the
Board moved to approve the Special Use Permit for Fox Haven to develop Phase 1 to include
9~000 sf conference center, 7500 sf of office/retail~ and 4200 sf of commercial space and related
parking on the north side of US 70A~ just east ofNC 86 (TMBL 4.37.C.22) with the following
conditions: 1) that they use a pervious parking surface; 2) that the hours of operation be 7:30
AM - 2:00 AM; 3) and that the Town Board reserves the right to review the site for additional
turn lanes on Hwy 70A for future applications by a vote of 5-0. The motion was declared
passed. A copy of the Resolution is hereby incorporated by reference and made a part of these
official Minutes as an Attachment.
D. Consideration of an Ordinance to rezone 9.896 acres from R-40 to R-20 on the north
side of Rencher Street (TMBL 4.6.A.12)
8:59:26 PM Planning Director Margaret Hauth stated that Items D and E are closely related. She
reported that this Item was heard at the April Public Hearing to rezone the property from R-40
to R-20 and at the same time a Special Use Permit was heard to create a 16-10t cluster
subdivision on the same parcel taking advantage of the cluster provisions under the proposed R-
20 zoning.
The Planning Director reported that the applicant had mentioned to her that he planned to attend
the meeting tonight to withdraw the application. But, the applicant is not present to make that
request Hauth also reported that on the rezoning issue~ there is an active valid protest petition
which would mean that if the Board wanted to approve the rezoning, it would take 4 or 5
positive votes by the Town Board.
Planning Director Hauth informed the Board that the Planning Board did recommend denial of
this request due to safety concerns, traffic concerns, the lack of on site recreation facilities~ and
the lack of compelling evidence that the site meets the criteria for a cluster subdivision by a 6-3
vote.
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Minutes Approved: July 11, 2005
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9:04:48 PM Upon a motion by Commissioner Dancy, seconded by Commissioner Lowen, the
Board moved to deny the request to rezone 9.896 acres from R-40 to R-20 on the north side of
Rencher Street (TMBL 4.6.A.12) by a vote of 5-0. The motion was declared passed.
E. Consideration of Special Use Permit for Housewright Building Company to create a 16-
lot cluster subdivision on 9.896 acres on the north side of Rencher Street (TMBL
4.6.A.12)
9:06: 13 PM Upon a motion by Commission Gering, seconded by Commissioner Lowen, the
Board moved to approve a Resolution denying the application of Housewright Building
Company for a Special Use Permit to create a 16-10t cluster subdivision on 9.896 acres on the
north side of Rencher Street (TMBL 4.6.A.12) by a vote of 5-0. The motion was declared
passed. A copy of the Resolution is hereby incorporated by reference and made a part of these
official Minutes as an Attachment.
F. Receive request from the Historic District Commission to establish a Joint Countyffown
task force on historic resources in Hillsborough
9:09: 13 PM Planning Director Margaret Hauth reported that HDC member Paul Kapp has
brought some concerns about communication weaknesses that may not provide the highest
level of protection for our historic resources. He has suggested a joint task force with Orange
County. The Historic District Commission has discussed this request at a few meetings and
endorses the task force's creation.
9:10:01 PM Paul Kapp, HDC member~ addressed the Board stating that he believes that a better
job can be done of clarifying the building review process, communicating it to the general
public in a simple and straightforward manner and examining and then utilizing better tools that
insure both life safety issues in building renovations and the preservation of historic resources.
He proposed a joint task force be created composed of Town of Hillsborough and Orange
County concerned citizens and governmental staff that will meet on a regular basis for a couple
of months and then submit a report to the Town Board and the County Commissioners
addressing deficiencies and suggesting improvements in the current building review process for
historic resources and existing buildings. He outlined their tasks to be: Evaluation of current
survey of the Hillsborough National Historic District; Evaluation of how the survey is used and
conveyed by the Town and County; Review of the Building Permit Process in Orange County
and how it works in the Historic District; Review of Planning and Zoning Ordinances in the
Town of Hillsborough; Review of the NC Rehab Code for Implementation in Orange County;
and greater promotion and awareness of historic resources.
9: 14:34 PM Upon a motion by Commissioner Hallman, seconded by Commissioner Lloyd~ the
Board moved to authorize pursuance of the development of a Task Force and authorized a letter
of invitation be written for the Mayor~s signature by a vote of 5-0. A copy of Paul Kapp's
written Task Force proposal is hereby incorporated by reference and made a part of these
official Minutes as an Attachment.
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Minutes
June 13, 2005 Regular Board Meeting
Page 6 of 8
Minutes Approved: July 11, 2005
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9: 16:50 PM Mayor Phelps called for a brief Recess.
9:21 :25 PM Mayor Phelps Reconvened the meeting.
G. Approval ofFY06 Budget and FY06-08 Financial Plan
9:21 :47 PM Town Manager Eric Peterson presented the proposed budget which included a 5.5
cent tax increase and a fund balance appropriation of $249,300.
9:32:5\ PM There was some discussion regarding the Library funding and by consensus, the
Board agreed to earmark the funds for the Hillsborough Branch of the Orange County Library.
9:44:35 PM Upon a motion by Commissioner Hallman, seconded by Commissioner Lloyd, the
Board moved to approve FY06 Budget Ordinance and the FY06-08 Financial Plan as presented
by a vote of 5-0. The motion was declared passed.
H. Receive update on Water Treatment Plant Upgrade Project, Loan status, and additional
work
9:46:14 PM Town EngineerlUtilities Director Kenny Keel reported that the Water Plant Upgrade
project should be completed later this month. The State ofNC has given us a deadline of July
31 ~ 2005 to process all payment requests from the available loan funds due to restrictions placed
on them by the Federal Government. Approximately $300,000 is available as a project surplus
due to reimbursements of expenditures made in the previous budget years. The project is
approximately 580 days beyond the scheduled completion date of November 5, 2003 due to
various contractor delays. The construction contracts allows for liquidated damages of $1,000
per day beyond the scheduled completion date. If the current level of liquidated damages were
assessed, the amount would be approximately $580,000. These fines will reduce the total loan
amount for the project, which will reduce our bi-annual payments by a marginal amount. The
Town is currently withholding $751,437 in payments from the contractor.
9:49:42 PM By consensus~ the Board authorized staff to encumber the funds to proceed with the
desired projects.
I. Consideration of request for permission to pursue additional sewer easements for
WaterstonefWoodsedge Pump Station and endorsement of Outfall
9:53:\9 PM Town Engineer Keel reported that the Waterstone Water & Sewer Extension
Contract allows one new sewage pump station to be constructed to serve the project. The Town
has an opportunity to upgrade the existing Woodsedge Mobile Home Park Front Pump Station
to handle this flow with approximately 800 feet of new sewer outfall, and avoid having an
additional pump station constructed. Easements are needed from 4-6 property owners to install
the outfall.
9:57:23 PM Upon a motion by Commissioner Lowen, seconded by Commissioner Hallman, the
Board moved to authorize staff to pursue easements required to install the outfall by a vote of 5-
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June 13, 2005 Regular Board Meeting 19 6'
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Minutes Approved: July 11, 2005
O. The motion was declared passed.
J. Consideration of Town Street Improvements - Contract Administration Services
9:57:58 PM Assistant Town ManagerlPublic Works Director Demetric Potts reported that
Summit Consulting Engineers has submitted a proposal for Contract Administration Services to
assist the Town in preparation of Bid Documents for capital improvements to the Town of
Hillsborough Street Infrastructure. Summit Consulting Engineers will verify and establish all
bid items and quantities, prepare an engineer's estimate, advertise and accept bids~ recommend
award of contact to the successful bidder~ administer the contract and test for quality control and
assurance during construction. They estimate that their costs will be 5-10% of the contract cost.
The Town will be invoiced monthly for services rendered. Fees will be based on an hourly rate
which includes overhead and profit.
10:03:38 PM Upon a motion by Commissioner Lowen, seconded by Commissioner Dancy, the
Board moved to approve the Contract as submitted by a vote of 5-0. The motion was declared
passed. A copy of the contract is hereby incorporated by reference and made a part of these
official Minutes as an Attachment.
K. Consideration of Tourism Board Grant Requests
10:04:22 PM Commissioner Gering presented the Tourism Board Grant Applications to the Board
for their consideration. He explained that they had been approved by the Tourism Board but
also required Town Board approval since they were each in excess of $5,000.
The Board considered the following Tourism Board Grant Applications:
· Burwell School Historic Site - $18,500 for tourism programming at the
Burwell School Historic Site
· Burwell School Historic Site - $7,000 toward a $125,000 capital campaign to
repair serious moisture damage and preserve the Burwell School
· Hillsborough Arts Council - $6~500 for year-round Last Fridays events
· Orange County Historical Museum - $20,000 for tourism programming~
exhibit development and conservation activities
· The Alliance for Historic Hillsborough - $11,500 to support part of the cost of
2005-06 Hillsborough Media Plan (paid advertising)
10:05:45 PM Upon a motion by Commissioner Dancy, seconded by Commissioner Lloyd, the
Board moved to approve the aforementioned Tourism Grant Applications as presented by a vote
of 5-0. The motion was declared passed.
L. Consider approval ofNPDES Phase n Stormwater Permit Agreement
10:06:16 PM Assistant Town ManagerlPublic Works Director Demetric Potts reported that upon
issuance of the NPDES Phase II Stormwater Permit for the Town by the State of North
Carolina, Department of Environment and Natural Resources~ Division of Water Quality~
Orange County and the Town of Hillsborough will develop and enter into a contract which will
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provide for the implementation of the majority of the permit requirements of the Town~s
NPDES Phase II Stormwater Program by the Erosion Control Division Staff of the Orange
County Planning and Inspections Department, and the compensation of Orange County by the
Town of Hillsborough for the implementation of the program.
10:07:46 PMUpon a motion by Commissioner Gering, seconded by Commissioner Dancy~ the
Board moved to approve the Memorandum of Agreement with Orange County as presented by
a vote of 5-0. The motion was declared passed. A copy of the Memorandum of Agreement is
hereby incorporated by reference and made a part of these official Minutes as an Attachment.
M. Discussion of "Hot Topics" for the June Workshop
1 0:08:03 PM By consensus, the Board agreed that they would discuss Budget Amendments~ Set
meeting with Orange Rural Fire Department, Habitat for Humanity Project, Approve EDC
Strategic Plan at the June 27th Monthly Workshop.
12. CLOSED SESSION
A. Closed Session as authorized by North Carolina General Statute Section 143-318.11(3)
to meet with Town Attorney regarding pending Litigation Proceedings and Status
. Report
10: 1 0:28 PM Upon a motion by Commissioner Gering, seconded by Commissioner Hallm~ the
Board moved to go into Closed Session authorized by North Carolina General Statute Section
143- 318.11 (3) to meet with Town Attorney regarding pending Litigation Proceedings and
Status Report by a vote of 5-0. The motion was declared passed.
10:13:29 PM Upon returning to Open Session, and upon a motion by Commissioner Dancy,
seconded by Commissioner Lloyd, the Board moved to proceed with settlement in the Colonial
Inn Lawsuit by a vote of 4-1 with Commissioners Dancy, Lloy~ Hallman, and Lowen voting
Aye; and Commissioner Gering voting Nay.
13. ADJOURN
Upon a motion by Commissioner Dancy~ seconded by Commissioner Gering, the Board moved
to adjourn at 10:38 PM by a vote of 5-0. The motion was declared passed.
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Respectfully submitted,
Donna F. Armbrister, CMC
Town elerlc
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LGC-20S (Rev. 11112004)
FII. In Triplic.t..
CONTRACT TO AUDIT ACCOUNTS
of the Town of HiIIsborough
Governmental Unit
On this
16th
day of
May
,~, Dixon Hughes PLLC
Auditor
Post Office Box 2646, High Point, North Carolina 27261
Mailing Addreu
, hereinafter referred to as
the Auditor, and the Board of Aldermen of the Town of Hlllsborough , hereinafter referred
Governing Board Governmental Unit
to as the Governmental Unit, agree as follows:
I, The Auditor shall audit all statemenls and disclosures required by generally accepted accounting principles and additional
required legal statements and disclosures of all funds andlor diyisions of the Governmental Unit for the period beginning
July 1 I ~t and ending June 30 I -..1QQL-. The, management's discussion and analysis,
non-major combining, and individual fund statements and schedules shall be subjected to the auditing procedures applied in lhe
audit of the basic financial statements and an opinion will be rendered in relation to (as applicable) the goyernmental activities,
the business-type activities, the aggregate discreetly presented component units, each major governmental and enterprise fund,
and the aggregate remaining fund infonnation (nonmajor government and enterprise funds, the internal service fund Iype, and the
fiduciary fund Iypes).
2. At a minimum, the Auditor shall conduct his audit and render his repon in accordance with generally accepted auditing
standards. The Audilor shall perfonn the audit in accordance wilh Government Auditinn Stnndnrds if required by the Slale Single
Audil Implemenlation Act, as codified in G.S. 159-34. If required by OMB Circular A-133 and Ihe State Single Audil
Implementation Act, the audilor shall perform a Single Audit.
3. This conlracl contemplales an unqualified opinloll heillg rendered. If financial statements are not prepared in accordance with
genc:rully accepled accounting principles (GAAP), or the stalements fail to include all disclosures required by GAAP, explain
that depanure from GAAP in the space below:
See ellached engagemenlletter.
4,
This con/racl contemplates an unquolified opinion helng rendered, Thc audit shall include such tests of the accounting records
and such other auditing procedures as are considered by the Auditor 10 be necessary in the circumstances. Any limitations or
restrictions in scope which would lead to a qualification should he ful{v explained in an altachment to this contract. The audit
will have no scope limitations except:
.
5,
If this audit engagement is subject to the standards for audit as defined in Government Auditing Standards, issued by Ihe
Comptroller Geneml of Ihe United States, then the Auditor warrants by accepting this engagement thaI helshe has met the
requirements for a peer review and continuing education as specified in Government Audition: Standards. The Auditor agrees to
provide a copy of their mosl recent peer review repon to the Governmental Unit and the Secretary of Ihe Local Government
Commission llri2r ill Ihe execution of the audit contract. (See Item 20.)
6. It is agreed thaI lime is or the cssence in this cnntract. All audits are 10 be perfonned and the repon of audit submilled by
October 31
,~.
7. It is agreed that generally accepled auditing standards include a review of the Govemmenlal Unit's system of internal conlrol and
accounting as same relates 10 accountabilily of funds and adherence to budgel and law requiremenls applicable Ihereto; thaI the
Auditor will make a written repon, which mayor may not be a part of the wrillen reporl of audil, to the Governing Board selling
forth his findings. together with his recommendations for improvement. That written report must include all matters defined us
"reportable conditions" in AU 325 of tho AICPA Professional Standards. The Auditor shall file 8 COD\' of that reoort with the
Secrt:tarv of the Local Government Commi!ision.
8. All local government and public authority conlracts for annual or speci.1 audits, bookkeeping or other assistance necessary to
prepare the Unit's records for audit, financial statement preparation, any finance-related investigations. or any other audit-related
work in Ihe Slate of Nonh Carolina require the approval of the Seeretary of the Local Goyemment Commission. Invoices for
services rendered under these contracts shall not be oaid bv the Governmental Unit until the invoice has been 800TOvcd bv the
Secretarv of Ihe Local Government Commission IThis also includes anv orogress billin.s ) All invoices should be submilled in
triplicate to the Secretary of the Local Government Commission. The original and one copy will be returned 10 the Auditor.
Approval is not required on contracts and invoices fOT system improvements and similar services ofa non-auditing nature.
9. In consideration of the satiafactory perfonnance of the provisions of this agreement, Ihe Governmental Unit shall pay 10 the
Audilor, upon approval by the Secretary of the Local Government Commission, the followinn fee which includes any cosllhe
Auditor may incur from work paper or peer reviews or any other qualily assurance program required by Ihird panics (Fedc:rul and
Slate grantor and oversighl agencies or other organizalions) as required under Ihe Federal and Slale Single Audit Acts:
Year-cnd bookkeeping uslst.nce -(For audit.! subJeclto Government Audlllng Standards, thIs Is limited to bookkeeping
services permitted by revised Independence Standardsi Closing assistance as needad to be billed al standard hourly ratas
Audit _ $22,000
Preparallon ofthe flnanclal statements _ Included in audit fee above
.
to. After completing his audit, the Auditor shall submit to the Goyeming Board a wrillen repon of audit. This repon shall include, al
least. Management's Discussion and Analysis, the financial st.tements or the goyernmental unit and nil of its component units
and notes thereto prepared in accordance with generally accepted accounting principles. combining and supplemenlary
jnfonnation requested by the client or required for full disclosure under Ihe law, and the Auditor's opinion on the malerial
presented. The Auditor shall furnish the required number of copies of the repon of audil 10 the Governing Board as soon as
practical after the close of the accounting period.
199
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II, The Auditor shall me with the Local Government Commission two copies of Ihe report of audit, including one copy of the
federal Data Collection Form, if a federal single audit is conducted. In addition, if the North Carolina Omee of the Stale Auditor
designates certain programs to be audited a.c:; major programs, a one page turnaround document and a representation letter
addressed to the State Audilor shall be submitted to Ihe Local Government Commission.
Two copies of Ihe report of audit should be submilted if the audit is performed only under the provisions of Ihe State Single Audil
Implementation Act or a financial audit is required to be performed in accordance with Govemmenl Auditinn Standards.
Otherwise, one copy shall be submitted. Copies of the report shall be flied with the Local Government Commission when (or
prior to) submitting the invoice for the services rendered. All copies of the report submitted must be bound. The report of audit,
as med with lhe Secretary of the Local Government Commission, becomes a malter of public record for inspeclion and review in
the offices of the Secrelary by any interested parties. Any subsequent rcvi5ions to these reports must be Rent to the Secretary of
Ihe Local Govemmenl Commission. Thcse audiled financial statements arc nsed in the preparation of Omeial Statements for
debt offerings, by municipal bond rating services, and 10 fulml secondary markel disclosure requirements of the Securities and
Exchange Commis5ion.
12. Should circumstances disclosed by lhe audit call for a more detailed investigation by the Auditor than necessary under ordinary
circumstances, the Auditor shall inform the Governing Board in writing of the need for such additional investigation and the
additional eompensalion required therefore. Upon approval by the Secretary of lhe Local Govemmenl Commission, Ihis
agreemenl may be varied or changed to include the increased time andlor compensation as may be agreed upon by the Governing
Board and the Auditor,
13. If an approved contract needs to be varied or changed for any reason, lhe change must be reduced to wriling, signed by both
parties, prcauditcd if necessary, and submitted to Ihe Secretary of lhe Local Govemmenl Commission for approval. ~
shall be effective unless aooroved bv the Secretarv of the Local Government Commission the Govemin. Board and the Auditor
14. Whenever the Audilor uses an engagement letter with the clienl, Item 15 may be eompleled by referencing the engagemenlletter
and nttaehing a copy of Ihe engagemcnt letter to Ihe contract to incorporate the engagement letter inlo the contract. In ense of
conflict between the terms of the engagement letter nnd the tcnns of this contraCI. the terms of this contrncl will control.
Engagemenlletter terms are deemed 10 be void unless the eonnicling terms of this eonlraet are specifically deleted in Item 21 of
this contmct. Engagement letters containing indemnification clauses will not be approved by lhe Local Government Commission.
15. There are no special provisions except:
See attached engagementleller.
16.
17.
18.
. 19.
20,
21.
A separate contmct ~ be made for each division 10 be audited or report 10 be submitted. A separale conlract must be
executed for each component unit which is a local government and for which a separole audit report is issued. .
The contract should be executed and submitted ~ 10 the Secretary of the Local Government Commission, 325 North
Salisbury Slreet, Raleigh, North Carolina 27603-1385.
Upon approval, the original conlract will be returned to Ihe Governmental Unil, a copy will be forwarded to the Audilor, and a
copy retained by the Secretary of the Local Government Commission. The audil should not be slarted before the contrael is
~
There arc no olher agreement.. between Ihe parties hereto and no other agreements relative hereto Ihat shall be enforceable unless
enlered into in accordance with the procedure set out herein and approved by the Secrelary of the Local Government
Commission.
If Ihis audit engagemenl is not subject to Government Auditin. Standards. then Item 5 shall be listed as a deleled provision in
Item 21, An explanation must be given for deleting this provision.
All of the above paragraphs are understood and shall apply to this agreement, exeeptlhe following numbered paragraphs shall be
deleted: (See Item 14,)
By
(Please type or print name and 1ilW
Dixon Hughes PLLC
(Signature of Mnw or Chairocrson of governing board)
Date
Date
May 16, 2005
By
Chairperson of Audit Committee (Please type or print name)
Approved by the $(:crcl.8ry of (he Local Govemment
Commission 8.! provided in Article J. Chapter 159 of the
General Stalutes or Article 31. Part 3, Chapter 11 SC of the
General Statures.
(Signolure of Audit Commiuee Chairperson)
For Ihe Secretary, Local Government Commission
Date
(Ifunil does nol have an audit con'UTlirtee, this section should be
nlllflced "N/A.")
(Signature)
This instrument has been preaudited in the manner required by The
Local Government Budger and Fiscal Control Act or by the School
lludgelond Fisc,l Control Act.
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Date
Govemmcnr81 Unit Finance Officer (Please type or print name)
(Signature)
Date
(!'reaudlt C.rtll1eate!!!!l11 be dated,)
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200'
DIXON HUGHESpw:
Certnied Publi: Accountants and Advisor.;
May 16,2005
Honorable Mayor and Board of Town Commissioners
Town of Hillsborough
Post Office Box 429
Hillsborough, North Carolina 27278
We are pleased to confirm our understanding of the services we are to provide the Town of
Hillsborough for the year ending June 30, 2005. We will audit the financial statements of
the governmental activities, the business-type activities, the aggregate discretely presented
component units, each major fund, and the aggregate remaining fund information, which
collectively comprise the entity's basic financial statements, of Town of Hillsborough as of
and for the year ending June 3D, 2005. The document we submit to you will include the
following supplementary information required by generally accepted accounting principles
that will be subjected to certain limited procedures, but will not be audited:
1. Managemenfs discussion and analysis.
2. Required supplementary infonnation.
Also, the document we submit to you will include the following additional information that will
be subjected to the auditing procedures applied in our audit of the financial statements upon
which we will provide an opinion in relation to the basic financial statements:
1. Combining and individual fund financial statements.
2. Schedule of expenditures of federal and state awards.
The document will also include the following additional infonnation that will not be subject to
the auditing procedures applied in our audit of the financial statements, and for which our
auditor's report will disclaim an opinion:
1. Statistical data.
Audit Objectives
The objective of our audit is the expression of an opinion as to whether your financial
statements are fairly presented, in all material respects, in conformity with accounting
principles generally accepted in the United States of America and to report on the faimess of
the additional information referred to in the first paragraph when considered in relation to the
financial statements taken as a whole. The objective also includes reporting on the following:
1829 Eastchester Drive, PO Box 2646
High Pain!, NC 27261-2646
Ph, 336.889,5156 FX.336.889,6168
www.dixon-hughes.com
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201
Town of Hillsborough
May 16, 2005
Page 2
. Internal control related to the financial statements and compliance with laws, regulations, and the
provisions of contracts or grant agreements, noncompliance with which could have a material effect on
the financial statements in accordance with Government Auditing Standards.
. Internal control related to major programs and an opinion (or disclaimer of opinion) on compliance with
laws. regulations, and the provisions of contracts or grant agreements that could have a direct and
material effect on each major program in accordance with the Single Audit Act Amendments of 1996 and
OMS circular A-133, Audits of States. LQcal Governments, and Non-Profit Organizations.
The reports of internal control and compliance will each include a statement that the report is intended for the
information and use of the board, management, specific legislative or regulatory bodies, federal and state
awarding agencies, and if applicable. pass-through entities and is not intended to be and should not be used
by anyone other than these specified parties.
Our audit will be conducted in accordance with auditing standards generally accepted in the United States of
America; the standards for financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; the Single Audit Act Amendments of 1996; and the provisions of
OMS Circular A-133, and will include tests of the accounting records, a determination of major programs in
accordance with OMS Circular A-133. and other procedures we consider necessary to enable us to express
such an opinion and to render the required reports. If our opinion on the financial statements or the Single
AUQit compliance opinion is other than unqualified, we will fully discuss the reasons with you in advance. If,
for any reason, we are. unable to complete the audit or are unable to form or have not fonned an opinion, we
may decline to express an opinion or may not issue a report as a result of this engagement.
Management Responsibilities
Management is responsible for establishing and maintaining effective internal control and for compliance with
the provisions of applicable laws, regulations, contracts, agreements, and grants. In fulfilling this
responsibility, estimates and judgments by management are required to assess the expected benefits and
related costs of the controls. The objectives of internal control are to provide management with reasonable,
but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition.
that transactions are executed in accordance with management's authorizations and recorded properly to
permit the preparation of financial statements in accordance with accounting principles generally accepted in
the United States of America, and that federal and state awards programs are managed in compliance with
applicable laws and regulations and the provisions of contracts and grant agreements.
Management is responsible for making all financial records and related infonnation available to us, including
any significant vendor relationships in which the vendor has the responsibility for program compliance. We
understand that you will provide us with such infonnation required for our audit and that you are responsible
for the accuracy and completeness of that information. We will advise you about appropriate accounting
principles and their application and will assist in the preparation of your financial statements, including the
schedule of expenditures of federal and state awards, but the responsibility for the financial statements
remains with you. As part of our engagement, we may propose standard, adjusting, or correcting journal
entries to your financial statements. You are responsible for reviewing the entries and understanding the
nature of any proposed entries and the impact they have on the financial statements. The responsibility for
the financial statements and all representations contained therein remains with management, which
includes officers and directors of the entity. That responsibility includes the establishment and maintenance
of adequate records and effective internal control over financial reporting and compliance, the selection and
application of accounting principles, and the safeguarding of assets. Management is responsible for
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202
Town of Hillsborough
May 16, 2005
Page 3
adjusting the financial statements to correct material misstatements and for confinning to us in the
representation letter that the effects of any uncorrected misstatements aggregated by us during the current
engagement and pertaining to the latest period presented are immaterial, both individually and in the
aggregate, to the financial statements taken as a whole.
You are responsible for the design and implementation of programs and controls to prevent and detect fraud,
and for infonning us about all known or suspected fraud affecting the government involving (a) management,
(b) employees who have significant roles in internal control, and (c) others where the fraud could have a
material effect on the financial statements. You are also responsible for informing us of your knowledge of
any allegations of fraud or suspected fraud affecting the government received in communications from
employees, fonner employees, regulators, or others. In addition, you are responsible for identifying and
ensuring that the entity complies with applicable laws and regulations and for taking timely and appropriate
steps to remedy any fraud, illegal acts, violations of contracts or grant agreements, or abuse that we may
report. Additionally, as required by OMB Circular A-133, it is management's responsibility to follow-up and
take corrective action on reported audit findings and to prepare a summary schedule of prior audit findings
and a corrective action plan. The summary schedule of prior audit findings should be available for our review.
As part of the audit, we will advise management about appropriate accounting principles and their application
and will prepare a draft of your financial statements, schedule of expenditures of federal and state awards,
and related notes. In accordance with Government Auditing Standards, you will be required to review and
approve those financial statements prior to their issuance and have a responsibility to be in a position in fact
and appearance to make an infonned judgment on those financial statements. Further, you are required to
designate a qualified management-level individual to be responsible and accountable for overseeing our
services.
Audit Procedures - General
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; therefore, our audit will involve judgment about the number of transactions to be
examined and the areas to be tested. We will plan and perform the audit to obtain reasonable rather than
absolute assurance about whether the financial statements are free of material misstatement, whether from
1) errors, 2) fraudulent financial reporting, 3) misappropriation of assets, or 4) violations of laws or
governmental regulations that are attributable to the entity or to acts by management or employees acting on
behalf of the entity. Because the determination of abuse is subjective, Government Auditing Standards do
not expect auditors to provide reasonable assurance of detecting abuse. As required by the Single Audit Act
Amendments of 1996 and OMB Circular A-133, our audit will include tests of transactions related to major
federal and stale awards programs for compliance with applicable laws and regulations and the provisions of
contracts and grant agreements. Because an audit is designed to provide reasonable, but not absolute,
assurance and because we will not perform a detailed examination of all transactions, there is a risk that
material misstatements or noncompliance may exist and not be detected by us. In addition, an audit is not
designed to detect immaterial misstatements or violations of laws or govemmental regulations that do not
have a direct and material effect on the financial statements or major programs. However, we will inform you
of any material errors and any fraudulent financial reporting or misappropriation of assets that come to our
attention. We will also inform you of any violations or laws or governmental regulations that come to our
attention, unless they are clearly inconsequential. We will include such matters in the reports required for a
Single Audit. Our responsibility as auditors is limited to the period covered by our audit and does not extend
to matters that might arise during any later periods for which we are not engaged as auditors.
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Town of Hillsborough
May 16, 2005
Page 4
Our procedures will include tests of documentary evidence supporting the transactions recorded in the
accounts, and may include tests of the physical existence of inventories, and direct confirmation of
receivables and certain other assets and liabilities by correspondence with selected individuals, creditors,
and financial institutions. We will request written representations from your attorneys as part of the
engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will also
request certain written representations from you about the financial statements and related matters.
Because of the importance of management's written or verbal representations to an effective audit, you
agree to release Dixon Hughes and its personnel from any liability and costs relating to our services under
this letter attributable to any misrepresentations by management.
Audit Procedures - Internal Controls
In planning and performing our audit, we will consider the intemal control sufficient to plan the audit to
determine the nature, timing and extent of our auditing procedures for the purpose of expressing our opinions
on the Town of Hillsborough's financial statements and on its compliance with requirements applicable to
major programs.
We will obtain an understanding of the design of the relevant controls and whether they have been placed in
operation, and we will assess control risk. Tests of controls may be performed to test the effectiveness of
certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the
financial statements and to preventing and detecting misstatements resulting from illegal acts and other
noncompliance matters that have a direct and material effect on the financial statements. Tests of controls
relative to the financial statements are required only if control risk is assessed below the maximum level. Our
tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and.
accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government
Auditing Standards.
As required by OMS Circular A-133, we will perform tests of controls to evaluate the effectiveness of the
design and operation of controls that we consider relevant to preventing or detecting material noncompliance
with compliance requirements applicable to each major federal and state awards program. However, our
tests will be less in scope than would be necessary to render an opinion on those controls and, accordingly,
no opinion will be expressed in our report on internal control issued pursuant to OMS Circular A-133.
An audit ;s not designed to provide assurance on internal control or to identify reportable conditions.
However, we will inform the goveming body or audit committee of any matters involving internal control and
its operation that we consider to be reportable conditions under standards established by the American
Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention
relating to significant deficiencies in the design or operation of the intemal control that, in our judgment, could
adversely affect the entity's ability to record, process, summarize and report financial data consistent with the
assertions of management in the financial statements. We will also inform you of any nonreportable
conditions or other matters involving internal control, if any, as required by Government Auditing Standards
and OMS Circular A-133.
Audit Procedures - Compliance
Our audit will be conducted in accordance with the standards referred to in the section titled Audit Objectives.
As part of obtaining reasonable assurance about whether the financial statements are free of material
misstatement, we will perform tests of the Town of Hillsborough's compliance with applicable laws and
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204
Town of Hillsborough
May 16, 2005
Page 5
regulations and the provisions of contracts and agreements, including grant agreements. However, the
objective of those procedures will not be to provide an opinion on overall compliance and we will not express
such an opinion in our report on compliance issued pursuant to Government Auditing Standards.
OMS Circular A-133 requires that we plan and perform the audit to obtain reasonable assurance about
whether the auditee has complied with applicable laws and regulations and the provisions of contracts and
grant agreements applicable to major programs. Our procedures will consist of the applicable procedures
described in the OMS Circular A-133 Compliance Supplement for the types of compliance requirements that
could have a direct and material effect on each of the Town of Hillsborough's major programs. The purpose
of these procedures will be to express an opinion on the Town of Hillsborough's compliance with
requirements applicable to major programs in our report on compliance issued pursuant to OMS Circular A-
133.
Audit Administration, Fees, and Other
We understand that your employees will prepare all cash, accounts receivable, or other confirmations, will
prepare certain audit schedules, as agreed upon in the client assistance letter, and will locate any invoices
selected by us for testing. Non-completion of reconciliations and other schedules requested may result in
additional charges for year end bookkeeping/closing assistance.
At the conclusion of the engagement, we will complete the appropriate sections of and sign the Data
Collection Form that summarizes our audit findings at the conclusion of the engagement. We will provide
75 copies of our reports to the Town of Hillsborough; however, it is management's responsibility to submit
the reporting package (including financial statements, schedule of expenditures of federal and state
awards, summary schedule of prior audit findings, auditors' reports, and a corrective action plan) along
with the Data Collection Form to the designated federal clearinghouse and, if appropriate, to pass-through
entities. The Data Collection form and the reporting package must be submitted within the earlier of 30
days after receipt of the auditors' reports or nine months after the end of the audit period, unless a longer
period is agreed to in advance by the cognizant or oversight agency for audits. At the conclusion of the
engagement, we will provide information to management as to where the reporting packages should be
submitted and the number to submit.
The audit documentation for this engagement is the property of Dixon Hughes PLLC and constitutes
confidential information. However, pursuant to authority given by law or regulation, we may be requested to
make certain audit documentation available to your cognizant agency or its designee, a federal agency
providing direct or indirect funding, or the U. S. General Accounting Office for purposes of a quality review of
the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such
request. If requested, access to such audit documentation will be provided under the supervision of Dixon
Hughes PLLC personnel. Furthermore, upon request, we may provide copies of selected audit documentation
to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information
contained therein to others, including other govemmental agencies.
The audit documentation for this engagement will be retained for a minimum of three years after the date the
auditors' report is issued or for any additional period requested by your cognizant or oversight agency. If we
are aware that a federal or state awarding agency, pass-through entity, or auditee is contesting an audit
finding, we will contact the party(ies) contesting the audit finding for guidance prior to destroying the audit
documentation.
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Town of Hillsborough
May 16, 2005
Page 6
Our fees will not exceed $22,000 for the audit services outlined herein. Additional fees will be billed at
standard hourly rates for closing assistance as needed. Our invoices for these fees will be rendered each
month as work progresses and are payable on presentation. For any other services that we may perform
that are not so covered herein, individual hourly rates may be charged according to the degree of
responsibility involved and the skill required, provided that no compensation beyond the aforementioned fees
shall be due and payable unless the additional services are approved in advance and in writing.
This engagement and any actions that may arise shall be governed by the laws of the state of North
Carolina and be brought in the judicial districts in which the North Carolina headquarters of Dixon Hughes
PLLC is located.
Whenever possible, each provision of this agreement shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision hereof shall be ineffective, or invalid, such
ineffectiveness or invalidity shall be only to the extent of such prohibition or invalidity, without invalidating
the remainder of the provision or the remaining provisions of this agreement, which shall otherwise remain
in full force and effect.
Government Auditing Standards require that we provide you with a copy of our most recent extemal peer
review report and any letter of comment, and any subsequent peer review reports and letters of comment
received during the period of the contract. Our 2002 peer review report and letter of comment accompanies
this letter.
We appreciate the opportunity to be of service to the Town of Hillsborough and believe this letter accurately
summarizes the significant terms of our engagement. If you have any questions, please let us know. If you
agree with the terms of our engagement as described in this letter, please sign the enclosed copy and retum
it to us.
Very truly yours,
DIXON HUGHES PLLC
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John A. Frank, CPA
Member of the Firm
JAF/lsm
RESPONSE:
This letter correctly sets forth the understanding of the Town of Hillsborough.
By:
Title:
Date:
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206
Postlethwaite & Netterville
A ProIOS$ional Accounl1ng Corporotion
Associoled OffIces In Principol Oies 01 the United Stoles
www.pncpa.com
To the Shareholders of
Dixon Odom PLLC
and the SEC Practice Section Peer Review Committee
We have reviewed the system of quality control for the accounting and auditing practice of Dixon Odom PLLC
(the firm) in effect for the year ended February 28, 2002. A system of quality control encompasses tbe firm's
organizational structure and the policies adopted and procedures established to provide it with reasonable
assurance of complying with professional standards. The elements of quality control are described in the
Statements on Quality Control Standards issued by the American Institute of Certified Public Accountants (the
AICP A). The design of the system, and compliance with it, are the responsibilities of the finn. In addition, the
firm has agreed to comply with the membership requirements of the SEC Practice Section of the AICP A
Division for CPA firms (the Section). Our responsibility is to express an opinion on the design of the system,
and the finn's compliance with that system and the Section's membership requirements based on our review.
Our review was conducted in accordance with standards established by the Peer Review Committee of the
Section and included procedures to plan and perform the review that are summarized in the attached description
of the peer review process. Our review would not necessarily disclose all weaknesses in the system of quality
control or all instances oflack of compliance with it or with the membership requirements of the Section since it
was based on selective tests. Because there are inherent limitations in the effectiveness of any system of quality
control, departures from the system may occur and not be detected. Also, projection of any evaluation of a
system of quality control to future periods is subject to the risk that the system of quality control may become
inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures
may deteriorate.
In our opinion, the system of quality control for the accounting and auditing practice of Dixon adorn PLLC, in
effect for the year ended February 28, 2002, has been designed to meet the requirements of the quality control
standards for an accounting and auditing practice established by the AICPA, and was complied with during the
year then ended to prOVIde the t1rm WIth reasonable assurance of complymg WIth professional standards. Also,
in our opinion, the firm complied during that year with the membership requirements of the Section in all
material respects.
As is customary in a peer review, we have issued a letter under this date that sets forth comments relating to
certain policies and procedures or compliance with them. The matters described in the letter were not
considered to be of sufficient significance to affect the opinion expressed in this report.
-I!~ .0000,iA,
Baton Rouge, Louisiana
November 21, 2002
8550 United Plaza Blvd, Suite 1001
Baton Rouge, LA 70809 Tel: 225.922.4600
__ 1ol.lI!~"-
Fax: 225.922.4611
207
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Attachment to the Peer Review Report of Dixon Odom PLLC
Description of the Peer Review Process
Overview
Member firms of the AICPA SEC Practice Section (the Section) must have their system
of quality control periodically reviewed by independent peers. These reviews are system
and compliance oriented with the objective of evaluating whether:
The reviewed firm's system of quality control for its accounting and auditing
practice has been designed to meet the requirements of the Quality Control
Standards established by the AICP A.
The reviewed firm's quality control policies and procedures were being complied
with to provide the firm with reasonable assurance of complying with
professional standards.
The reviewed firm was complying with the membership requirements of the
SECPS in all material respects.
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The Section's Peer Review Committee (PRe) establishes and maintains review
standards. At regular, meetings and through report evaluation task forces, the PRC
considers each peer review, evaluates the reviewer's competence and performance, and
examines every report, letter of comments, and accompanying response from the
reviewed firm that states its corrective action plan before the peer review is finalized. The
Transition Oversight Staff (formerly the staff of the Public Oversight Board), an
independent oversight body, plays a key role in overseeing the performance of peer
reviews working closely with the peer review teams and the PRC.
Once the PRC accepts the peer review reports, letters of comments, and reviewed finns'
responses, they are maintained in a file available to the public. In some situations, the
public file also includes a signed undertaking by the firm agreeing to specific follow-up
action requested by the PRe. That file also includes the firm's annual report which
contains information regarding the number of firm offices, finn professionals, and SEC
clients for which the firm is principal auditor-of-record.
Planning the Review
To plan the review of Dixon Odom PLLC, we obtained an understanding of (1) the nature
and extent of the firm's accounting and auditing practice, and (2) the design of the firm's
system of quality control sufficient to assess the inherent and control risks implicit in its
practice. Inherent risks were assessed by obtaining an understanding of the finn's
practice, such as the industries of its clients and other factors of complexity in serving
those clients, and the organization of the firm's personnel into practice units. Control
risks were assessed by obtaining an understanding of the design of the firm's system of
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quality control, including its audit methodology, and monitoring procedures. Assessing
control risk is the process of evaluating the effectiveness of the reviewed firm's quality
control system in preventing the performance of engagements that do not comply with
professional standards.
Performing the Review
Based on our assessment of the combined level of inherent and control risks, we
identified practice units and selected engagements within those units to test for
compliance with the fi~'s quality control system. The engagements selected for review'
included audits of clients that are SEe registrants, audits performed for entities that
follow Government Auditing Standards including A-l33, and audits of Employee Benefit
Plans as well as audits, reviews, and compilations of companies that represent
concentrations. The engagements selected for review represented a cross-section of the
firm's accounting and auditing practice with emphasis on higher-risk engagements. The
engagement reviews included examining working paper files and reports and
interviewing engagement personnel.
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The scope of the peer review also included examining selected administrative and
persOIUlel files to determine compliance with the firm's policies and procedures for the
elements of quality control pertaining to independence, integrity~ and objectivity;
personnel management; and acceptance and continuance of clients and engagements. In
addition, we tested compliance with the membership requirements of the Section,
including those pertaining to independence quality controls and concurring partner
review.
Prior to concluding the review~ we reassessed the adequacy of scope and conducted ~
exit conference with firm management to discuss our fmdings and recommendations.
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Postlethwaite & Netterville
A Professional Accounting Corpora1ion
Associoled 0IIices In Principal Cities of the United Slotes
www.pncpa.com
To the Members
Dixon Odom PLLC
We have reviewed the system of quality control for the accounting and auditing pmctice of Dixon
Odom PLLC (the firm) in effect for the year ended February 28, 2002, and have issued our report
thereon dated November 21, 2002. The matters described below were not considered to be of
sufficient significance to affect the opinion expressed in that report,' which should be read in
conjunction with this letter.
SECPS Membership Requirements
Comment - The Section requires that all professional staff participate in at least 120 hours of
continuing professional education every three years with a minimum of 20 hours per year. The
firm's policy is not'consistent with this requirement, since its policy does 'not require 120 hours of
continuing professional education every three years.
Recommendation - The firm should amend its quality control policies and procedures to require
continuing professional education that is consistent with the Section's requirements.
Comment - The Section requires that the firm establish policies and procedures to ensure that
partners and mana.gers certify their independence as it relates to the firm's accounting and audit
engagements and to provide monitoring to test that the information received is complete and
accurate. The firm's quality control policies and procedures do not require testing of the
independence representations made by its partners and managers and none was performed.
Recommendation - The firm should amend its quality control policies and procedures to require
testing of the independence representations made by its partners and managers in order to ensure
their independence as it relates to the firm's accounting and audit engagements.
8550 United Plaza Blvd, Suite 1001
Baton Rouge, LA 70809
Tel: 225.922.4600
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Fax: 225.922.4611
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En2a2ement Performance
Comment - The firm's quality control policies and procedures require compliance with
professional standards as they relate to obtaining appropriate management representations. On
most of the engagements reviewed the representations were received for a single year when
comparative financial statements were presented. On severa) engagements the firm did not obtain
appropriate signatures and also did not include required representations. This finding was
included in the prior review.
Recommendation - The firm should ensure that appropriate management representations are
obtained by placing more emphasis on this in the review process and 'additional focus in the
finn's monitoring procedures through inspection.
- t;?IIYJik .~&. .. '...Jt:/I-.j:1t..J
Baton Rouge, Louisiana
November 21,2002
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December 6, 2002
10
DIXON OOOM PLLC
Certified Public Accountants and Consultants
SECPS Peer Review Committee
clo American Institute of Certified Public Accountants
SEC Practice Section
Harborside Financial Center
201 Plaza Three
Jersey City, NJ 07311-3881
Ladies and Gentlemen:
211.
This letter represents our response to the letter of comments issued In connection with our firm's peer
review for the year ended February 28, 2002. All of the necessary changes to our quality control
policies and procedures will be closely monitored by our quality control and managing members. In
addition, the matters discussed in this letter will be given special emphasis in our monitoring
procedures.
We have also amended our quality control policies and procedures to require more monitoring of the
independence representations made by members and managers.
Engagement Performance
We have modified our engagement review process for audit and review engagements to require an
independent technical review of the respective management representations letters. Firm checklists
will now specifically instruct the independent reviewer to review the representations letter for adequate
representations, appropriate signatures, and appropriate periods of coverage.
In addition, we have amended our quality control policies and monitoring procedures to place more
emphasis on review of the management representations letter during the internal inspection process.
In addition to the review performed by the inspection team participants, our procedures will now require
inspection team captains to review each selected engagement's representations leUer for
appropriateness as well.
A ......- 01
Nooru Rowland InlomoUonol
~
An 8SGOCioUo<l ollndopendonl
accounl;"g lltm5 lIvoughoulltla world.
ADMINISTRATIVE OFFICE
1829 Eastchester Drive
P.O. Box 2646
High Point, NC 27261-2646
336-889-5156, Fax 336-889-2812
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212
SECPS Peer Review Committee
c/o American Institute of Certified Public Accountants
SEC Practice Section
Page Two
December 6,2002
On December 6, 2002, the firm's accounting and auditing director issued an internal technical update
memorandum to all personnel discussing the changes to our quality control policies and procedures
mentioned herein.
Sincerely,
])~O~ PLLL.
Dixon Odom PLLC
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213
ARCHER
COMPANY
Charlotte, NC I Rock Hill, SC
454 South Anderson Road, BTC 556
Rock Hill, South c.roIiDa 29730
Phone (803) 366-2400 Fax (803) 366-1082
Ms. Donna Armbrister, CMC
Town Clerk/Personnel Officer
Town of Hillsborough
P.O. Box 429
Hillsborough, North Carolina 27278
May 11,2005
Dear Ms. Armbrister:
We have evaluated the position of Accounting Technician for the Finance Department. The
job code~ tit1e~ recommended pay grade and FLSA status are shown below. We have prepared ajob
description and are sending it via a separate e-mail. We will send a hard copy for your file.
Job
Code
Job
Title
Recommended
Grade
Recommended
FLSA
4006
Accounting Technician
9
Non-Exempt
Please let us know if we can be of further assistance.
Sincerely,
Earnest R. Archer, Ph.D.~ P.E.~ SPHR
President
214'
Town of Hillsborough Effective July 1, 2005
Job Classification List - Grade Order Adopted 06-13-05
. GRADE Minimum Mld-oolnt Maxlmun FLSA JOB CODE AND TITLE
1 13,826 17,937 22,048
2 15,092 19,597 24,100
3 16,358 21,255 26,151
4 17,624 22,913 28,202
5 18,891 24,572 30,253
6 20,157 26,231 32,305 N 9501 MAINTENANCE WORKER
N 3503 MECHANIC HELPER
7 21,422 27,889 34,355 N 9008 BILLING/COLLECTION CLERK
N 9005 METER READER
N 2020 POLICE RECORDS CLERK
8 22,689 29,548 36,407 N 4004 ACCOUNTS PAYABLE CLERK
N 9007 CUSTOMER SERVICE REPRESENTATIVE
N 650 EQUIPMENT OPERATOR
. N 6505 MAINTENANCE WORKER, SENIOR
N 5015 UTILITY MAINTENANCE TECHNICIAN
N 9010 WA TERlWASTEWATER PLANT OPERATOR
9 23,956 31,208 38,460 N 6515 EQUIPMENT OPERATOR, SENIOR
N 9011 WATERlWASTEWATER PLANT OPR II
N 4006 ACCOUNTING TECHNICIAN
10 25,222 32,866 40,511 N 2521 LABORATORY TECHNICIAN
N 5010 UTILITY MECHANIC
11 26,488 34,524 42,561 N 9012 WATERlWASTEWATER PLANT OPR 11\
12 27,754 36,184 44,613 N 2010 ADMINISTRATIVE ASSISTANT
N 5017 ELECTRICIAN
N 9013 LAB SPECIALIST/OPERATOR III
N 5016 UTILITY INSPECTOR
N 8501 CODE ENFORCEMENT OFFICER
13 29,020 37,843 46,664 N 8002 UTILITIES ANAL YST
14 30,286 39,501 48,714 N 2008 POLICE ACC MGMT ANALYST
N 2006 POLICE OFFICER
. 15 31,553 41,160 50,767 E 5002 ASST UTILITY SYSTEM SUPV
E 9015 BILLING/COLLECTIONS SUPV
N 3502 FLEET MECHANIC
E 9006 METER READER SUPERVISOR
N 7002 PLANNER
215~
Town of Hillsborough Effective July 1, 2005
Job Classification List - Grade Order Adopted 06-13-05
. GRADE Minimum Mld-oolnt Maxlmun FLSA JOB CODE AND TITLE
16 32.819 42,818 52,817
17 34,086 44,478 54,871 N 2007 INVESTIGATOR
E 2520 LABORATORY DIRECTOR
N 2005 POLICE CORPORAL
18 35,351 46,136 56,920 E 6001 ASST PUBLIC WORKS SUPV
19 36,617 47,794 58,971 N 2004 POLICE SERGEANT
E 5001 UTILITY SYSTEM SUPVERSIVOR
E 4005 ASSISTANT FINANCE DIRECTOR
20 37,883 49,452 61,020
21 39,150 51,112 63,074 E 3501 FLEET MAINTENANCE SUPERVISOR
E 6520 PUBLIC WORKS SUPERVISOR
22 40,417 52,772 65,126 E 2003 POLICE LIEUTENANT
23 41,683 54,430 67,177
. 24 42,948 56,088 69,227 E 8501 FIRE MARSHAUCODE ENFORCEMENT OFFICER
25 44,215 57,748 71,279 E 2501 WASTEWATER PLANT SUPT
26 45,481 59,406 73,331 E 1501 WATER PLANT SUPT
27 46,747 61,064 75,381 E 2002 POLICE CAPTAIN
28 48,014 62,724 77,434 E 7001 PLANNING DIRECTOR
E 1001 TOWN CLERKlPERSONNEL OFFICER
29 49,280 64,383 79,485
30 50,546 66,041 81,536
31 51,812 67,699 83,587 E 4000 FINANCE DIRECTOR
32 53,078 69,358 85,638 E 2001 CHIEF OF POLICE
E 8001 TOWN ENGINEERlUTILlTITES DIRECTOR
33 54,345 71,018 87,690 E 3001 ASST TOWN MGRlPUBLlC WORKS DIR
34 55,611 72,676 89,740
. 35 56,877 74,335 91,792
216
Town of Hills borough. North Carolina. Accounting Technician
4002
.
TOWN OF HILLSBOROUGH, NORTH CAROLINA
JOB DESCRIPTION
JOB TITLE: ACCOUNTING TECHNICIAN
FINANCE DEPARTMENT
GENERAL STATEMENT OF JOB
Under general supervision, performs technical accounting work in the Finance Department Work
involves performing various accounting duties relating to account reconciliation, accounts payable,
payroll, privilege license, and food and beverage tax collection. Employee must exercise
independent judgment and initiative, and attention to detail in ensuring proper and timely payments.
Reports to the Assistant Finance Director.
SPECIFIC DUTIES AND RESPONSIBILITIES
ESSENTIAL JOB FUNCTIONS
Reviews accounts payable invoices for accuracy.
.
Calculates and collects Food and Beverage tax.
Verifies and collects Fire Inspection fees.
Issues Privilege licenses.
Reconciles bank statements.
Approves purchase order requests.
Updates and processes water bill drafts.
Processes bi-weekly payroll.
Prepares monthly departmental report
Prepares quarterly payroll reports.
Reconciles tax receipts from County.
Prepares journal entries related to payroll and taxes.
Assists with daily deposits if needed.
.
Prepares year-end W-2's/1099's.
Assists department heads with line item questions.
@Archer Company 2005 1
217
Town of Hills borough. North Carolina. Accounting Technician
4002
.
Orders supplies for Finance and Billing Department
Prepares reports for audit
Receives and/or reviews records and reports including weekly accounts payable report, fuel log,
billing invoices, tax collection report, and time sheets.
Prepares and/or processes records and reports including delinquent Food and Beverage letters,
delinquent Fire Inspection letters, water bill bank draft, invoice business - privilege license, and
payroll checks.
Refers to Town ordinance, North Carolina Privilege License Book, Fire Insurance Charge Rate Lis~
Food and Beverage filing form, annual budget report, policy and procedure manuals, codes /Iaws /
regulations, publications and reference texts, etc.
Operates a variety of office equipment such as calculator, computer, printer, copier, fax machine,
typewriter, telephone, etc.
Uses general office supplies and computer software such as Microsoft Word, ICS, Microsoft Excel,
etc.
.
Interacts and communicates with various groups and individuals including Assistant Finance
Director, customers, business owners, Accounts Payable Clerk, department heads, vendors, and
the general public.
ADDITIONAL JOB FUNCTIONS
Performs other related work as required.
MINIMUM TRAINING AND EXPERIENCE
Requires a high school diploma with college coursework in accounting with three years of
experience in accounting, clerical, collection, or govemmental work; or any equivalent combination
of training and experience, which provides the required knowledge, skills, and abilities.
MINIMUM QUALIFICATIONS OR STANDARDS REQUIRED
TO PERFORM ESSENTIAL JOB FUNCTIONS
.
PhYSical Reauirements: Must be physically able to operate a variety of automated office
machines including computers, typewriters, calculators, printers, copiers, etc. Must be able to exert
up to 20 pounds of force occasionally and/or a negligible amount of force frequently or constantly to
lift, carry, push, pull or otherwise move objects. Sedentary work involves sitting most of the time,
but may involve walking or standing for periods of time.
@Archer Company 2005
2
218
Town ofHillsboroutili. North Carolina. Accountinl! Technician
4002
.
Data ConceDtion: Requires the ability to compare and/or judge the readily observable, functional,
structural, or compositional characteristics (whether similar to or divergent from obvious standards)
of data, people, or things.
Intel'D8l'8onal Communication: Requires the ability of speaking and/or signaling people to convey
or exchange information. Includes receiving instructions, assignments, and/or directions from
supervisors.
Language Ability: Requires the ability to read invoices, purchase orders, accounting joumals, etc.
Requires the ability to prepare reports, correspondence, checks, purchase orders, forms, narrative
and statistical reports, etc., using prescribed formats and conforming to all rules of punctuation,
grammar, diction, and style.
Intelllaence: Requires the ability to apply common sense understanding to carry out instructions
fumished in written, oral, or diagrammatic form; to deal with problems involving several concrete
variables in or from standardized situations.
Verbal Aptitude: Requires the ability to record and deliver information, to explain procedures, to
follow oral and written instructions. Must be able communicate effectively and efficiently in standard
English and accounting terminology.
Numerical ADtltude: Requires the ability to utilize mathematical formulas; to add and subtract
totals; to multiply and divide; and to determine percentages and decimals.
.
FonnlSpatlal ADtitude: Requires the ability to inspect items for proper length, width and shape.
Motor Coordination: Requires the ability to coordinate hands and eyes rapidly and accurately in
using automated office equipment
Manual Dexterttv: Requires the ability to handle a variety of items, office equipment, control
knobs, switches, etc. Must have minimal levels of eyelhandlfoot coordination.
Color Discrimination and VIsual Acuity: Requires the ability to differentiate colors and shades of
color; requires the visual acuity to detennine depth perception, peripheral vision, inspection for
small parts; preparing and analyzing written or computer data, etc.
Interoersonal TemDSrament: Requires the ability to deal with people beyond giving and receiving
instructions. Must be adaptable to performing under minimal levels of stress.
Physical Communication: Requires the ability to talk and/or hear: (talking: expressing. or
exchanging ideas by means of spoken words; hearing - perceiving nature of sounds by ear).
PERFORMANCE INDICATORS
.
Knowledge of Job: Has thorough knowledge of the methods, policies, and procedures of the
Finance Department as they pertain to the performance of duties of the Accounting Technician. Has
knowledge of the application of established bookkeeping and accounting principles and techniques
to governmental accounting transactions. Has general knowledge of State and local fiscal
regulations, policies, and procedures. Has general knowledge of accounting and office practices,
@Archer Company 2005 3
219
Town ofHillsborough. North Carolina. Accounting Technician
4002
.
methods, and procedures used. Has general knowledge of the Town organization and operational
policies and procedures. Is able to use a variety of popular office machines, including a computer
terminal, calculator and facsimile machine. Is able to organize and effectively process and maintain
financial records and files, and prepare reports from them. Is able to analyze and record information
and to balance figures. Is able to understand and apply laws, regulations, and policies to the
maintenance of financial records. Is able to verify documents and forms for accuracy and
completeness. Is able to understand and follow oral and written instnJctions. Is able to type
accurately at a moderate rate of speed. Is able to exercise independent judgment, discretion and
initiative in completing assignments. Is able to establish and maintain effective working relationships
with other employees and the general public.
Quality of Wort: Maintains high standards of accuracy in exercising duties and responsibilities.
Exercises immediate remedial action to correct any quality deficiencies that occur in areas of
responsibility. Maintains high quality communication and interacts within department and division,
and with co- worKers and the general public.
Quantity of Work: Maintains effective and efficient output of all duties and responsibilities as
described under "Specific Duties and Responsibilities."
Dependability: Assumes responsibility for doing assigned worK and meeting deadlines. Completes
assigned worK on or before deadlines in accordance with directives, policy. standards and pre-
scribed procedures. Accepts accountability for meeting assigned responsibilities in the technical,
human and conceptual areas.
.
Attendance: Attends worK regular1y and adheres to policies and procedures regarding absences
and tardiness. Provides adequate notice to higher management with respect to vacation time and
time- off requests.
Initiative and Enthusiasm: Maintains an enthusiastic, self-reliant and self-starting approach to
meet job responsibilities and accountabilities. Strives to anticipate worK to be done and initiates
proper and acceptable direction for completion of worK with a minimum of supervision and
instruction.
Judament: Exercises analytical judgment in areas of responsibility. Identifies problems or
situations as they occur and specifies decision objectives. Identifies or assists in identifying
alternative solutions to problems or situations. Implements decisions in accordance with prescribed
and effective policies and procedures and with a minimum of errors. Seeks expert or experienced
advice and researches problems, situations and alternatives before exercising judgment
Cooperation: Accepts supervisory instruction and direction and strives to meet the goals and
objectives of same. Questions such instruction and direction when clarification of results or
consequences are justified, Le., poor communications, variance with policy or procedures, etc.
Offers suggestions and recommendations to encourage and improve cooperation between all staff
persons within the department
.
Relationships with Others: Shares knowledge with supervisors and staff for mutual benefit
Contributes to maintaining high morale among employees. Develops and maintains cooperative
and courteous relationships inter- and intra-departmentally, and with external entities with whom
the position interacts. Tactfully and effectively handles requests. suggestions and complaints in
order to establish and maintain good will. Emphasizes the importance of maintaining a positive
@Archer Company 2005 4
220
Town of Hillsborough. North Carolina. Accounting Technician
4002
.
image.
Coordination of Work: Plans and organizes daily work routine. Establishes priorities for the
completion of work in accordance with sound time-management methodology. Avoids duplication of
effort Estimates expected time of completion of elements of work and establishes a personal
schedule accordingly. Attends meetings, planning sessions and discussions on time. Implements
work activity in accordance with priorities and estimated schedules. Maintains a calendar for
meetings, deadlines and events.
SafetY and Housekeeolna: Adheres to all safety and housekeeping standards established by the
Town and various regulatory agencies. Sees that the standards are not violated. Maintains a clean
and orderly workplace.
DISCLAIMER: This job description Is not an employment agreement or contract.
Management has the exclusive right to alter this job description at any time without notice.
.
.
@Archer Company 2005
5
Town
of
tHtll~
221
BUDGET AMENDMENTS
June. 2005
GENERAL FUND
BEFORE
ADJ.
AFTER
. 1. Expenditure
10-5100-021 Police Admin/Personnel Additions $ 45,600 $ (43,500) $ 2,100
10-5100-020 Police Admin/Salaries $ 149,200 $ 30,200 $ 179,400
10-5100-050 Police Admin/FICA $ 11 ,500 $ 2,500 $ 14,000
10-5100-060 Police Admin/Hasp $ 33,300 $ 6,000 $ 39,300
10-5100-070 Police Admin/Retirement $ 7,500 $ 1,600 $ 9,100
10-5100-071 Police Admin/401k $ 7,500 $ 1,600 $ 9,100
.. 10-5100-330 Police Admin/Depart. Supplies $ 7.500 $ 1.600 $ 9.100
$ 262.100 $ $ 262.100
To correct personnel additions to actual expense line items for C. Berst
2. Revenue
10-3350-100 Misc.- Confiscation %age $ 512 $ 435 $ 947
Expenditure
10-5100-571 Police Admin/Misc.Drug Money % $ 1.921 $ 435 $ 2.356
. To fund receipt of Substance Abuse Taxes and Restitution payment
3. Revenue
10-3350-200 250th Anniversary $ $ 512 $ 512
Expenditure
10-6900-922 Special Approp./25Oth Anniv. $ 9.451 $ 512 $ 9963
To fund receipt of 250th Anniversary T-Shirt sales
4. Revenue
10-3990-000 Fund Balance Approp. $ 664 912 $ 50 $ 664.962
Expenditure
. 10-6600-970 SeNiee Charge-Safety $ (39.050) $ 50 $ (39.000)
To correct General Fund seNice charges for safety to equal Water Fund seNices charges for safety
137 North Churton Street · P.O. Box 429 · Hillsborough, North Carolina 27278
919-732-2104 · Fax 919-732-1028
.
29'2
...,.
WATER FUND
5. Revenue
30-3990-000 Fund Balance Approp.
$
$ 13 400
$ 427.447
414.047
Expenditures
30-7220-613 Service Charges-M. Pool
$
131 300
$ 13400
$ 144700
To correct General Fund Service Charges for Motor Pool to equal Water Fund Services Charges for Motor Pool
6. Revenue
30-3730-000 Water Capital Facility Fees $ 35,000 $ 357,890 $ 392,890
30-3750-000 Sewer Capital Facility Fees $ 15.000 $ 204.430 $ 219.430
$ 50.000 $ 562.320 $ 612.320
Expenditure
30-6600-490 Transfer to Capital Reserve-Water $ $ 357,890 $ 357,890
30-6600-491 Transfer to Capital Reserve-Sewer $ $ 204 430 $ 204 430
$ $ 562,320 $ 562,320
To establish and budget non-departmental expenses for the purpose of transferring excess capital facility fees
. CEDAR GROVE PROJECT
7. Revenue
60-3290-100 Interest Earned. $ 570.881 $ 830 $ 571 711
Expenditure
60-8100-570 Miscellaneous Contingency $ 350.881 $ 830 $ 351.711
To fund interest earned through May 31, 2005
8. Expenditure
60-8100-043 Appraisals $ 57,000 $ 4,485 $ 61 ,485
60-8100-044 Title Search $ 4,500 $ 915 $ 5,415
60-8100-045 Design Services $ 211,500 $ 2,060 $ 213,560
60-8100-046 Legal Fees $ 424,800 $ 105,135 $ 529,935
60-8100-571 Fees $ 14,000 $ 2,170 $ 16,170
60-8100-720 Construction $ 4,150,000 $ 20,830 $ 4,170,830
60-8100-721 Services During Construction $ 250,000 $ 83,600 $ 333,600
60-8100-722 Electrical/I nstrumentation $ $ 56,270 $ 56,270
60-8100-710 Land Purchase/Mitigation $ 4.510.111 $ (275.465) $ 4.234.646
$ 9,621,911 $ $ 9,621,911
To balance Reservoir line item accounts prior to closing out the project fund
.
~t:?l3
. CATES CREEK
.9. Revenue
61-3290-000 Interest Earned $ 32 676 $ 601 $ 33 277
Expenditure
61-8280-570 Miscellaneous $ 157 676 $ 601 $ 158.277
To fund interest earned through May 31, 2005
WATER PLANT PROJECT
10. Revenue
63-3290-000 Interest Earned $ 8896 $ 1.090 $ 9.986
Expenditure
63-8120-570 Miscellaneous/Contingency $ 312.078 $ 1.090 $ 313.168
To fund interest earned through May 31,2005
CAP IT AL RESERVE
11. Revenue
70-3290-000 Interest Earned $ 60.031 $ 1.912 $ 61 943
.. Expenditure
70-6900-730 Capital Improvement-Water $ 362,076 $ 879 $ 362,955
70-6900-731-Capitallmprovement-Sewer $ 431.605 $ 1.033 $ 432.638
$ 793.681 $ 1.912 $ 795.593
To fund interest earned through May 31, 2005
APPROVED: t)?(/ 6)y-/3-C/S ~ S-;::-C;) /~
VERIFIED:~~
onna F. Armibrister, Town Clerk
.
.
.
.
224'
AN ORDINANCE AMENDING CHAPTER 4 OF THE TOWN CODE
OF THE TOWN OF HILLSBOROUGH
THE BOARD OF COMMISSIONERS OF THE TOWN OF HILLSBOROUGB
ORDAINS:
Section 1
Chapter 4, Section 4-15 Political Activity of the Hillsborough Town Code is
hereby amended as follows:
Paragraph (6) is hereby amended to read:
"Not withstanding paragraph (a) above, the Town Board finds that service
in an elective position with the Town of Hillsborough could be
inconsistent with employment by the Town in any capacity because of
inherent conflicts between the duties and demands of the elected position
and the duties and demands of the Town position. In order to eliminate
the possibility of any divided loyalty and/or potential conflicts of interests~
the Town has adopted the following Policy:
No employee of the Town of Hillsborough shall be a candidate for or hold
elective office with the Town of Hillsborough while in a pay status with.
the Town of Hillsborough. Should an employee decide to be a candidate
for elective office with the Town, they must take an unpaid leave of
absence or resign their employment. If they take an unpaid leave of
absence and are elected to an elective office~ they must resign as an
employee of Hillsborough."
Section 2.
All Provisions of any Town Ordinance in conflict with this Ordinance are
repealed.
Section 3.
This ordinance shall become effective upon adoption.
The foregoing ordinance having been submitted to a vote~ received the following vote and
was duly adopted this 13M day of ::ruNe. ;Loo~.
Ayes: 2-
Noes: -e--
Absent or Excused -er-
~
.
.
.
225
TOWN OF HILLSBOROUGH BOARD OF COMMISSIONERS
RESOLUTION OF INTENT TO CLOSE PORTIONS OF ALLEY WAY BETWEEN
MARGARET LANE AND N & K STREET AND TO CLOSE A PORTION OF
EXCHANGE PARK LANE, PURSUANT TO N.C. GEN. STAT. ~ 160A-299
WHEREAS, an application has been made to the Town of Hillsborough Board to
permanently close a portion of a public alley lying between Margaret Lane to the north and N&K
Street to the south, and to close a portion of Exchange Park Lane south of N&K Street and north
of the Eno River all in connection with the proposed Gateway Project.
NOW~ THEREFORE, BE IT RESOLVED by the Town of Hillsborough Board of
Commissioners, on motion of LomJ?1iJsiDNC /l'li-cAl9d. &.e:N4 ~ seconded by
~~ff~C;iJJ , this 13th day of June 2005, that the Town of Hillsborough Town Board declares
its intent to close the above-mentioned portions of the alleyway and street, and the Town of
Hillsborough Town Board will conduct a public hearing to consider the question of whether to
close the above-referenced alleyway and street at 7.'Pf) o'clock p.m. on the ~day of~
3<<4- ,2005; and it is further
RESOLVED this ResolutIOn shall be publIshed once a week for four consecutIve weeks
prior to the hearing in a newspaper in local circulation in the Town of Hillsborough, and a copy
of this Resolution shall be sent by registered or certified mail to the owners of all property
adjoining portions of the street or alleyway proposed to be closed~ as though owners are
identified on Orange County Tax Records and notice of the proposed closing and public hearing
shall be prominently posted in at least two places along the portion of the alleyway and the
portion of Exchange Park Lane; and it is further
RESOLVED that at the hearing, any person may be heard on the question of whether or
not the closing would be detrimental to the public interest to the property rights of any
individual.
WHEREFORE, the foregoing Resolution was put to a vote of the Members of the Town
of Hillsborough Board of Commissioners on the 13th day of June, 2005~ and the results of which
vote was as follows:
Ayes: 6'
Noes: -B-
Absent or Excused:.61-
Dated: /)I/-g--CJS-
.
.
226.
TOWN OF HILLSBOROUGH BOARD OF COMMISSIONERS
RESOLUTION GRANTING A SPECIAL USE PERMIT APPROVAL SUBJECT TO
SPECIAL CONDITIONS AFFECTING A 17.6 ACRE PARCEL OF LAND IDENTD'lliD
AS PIN 9874-53-2652; TAX MAP NO. 4.37.C.22
WHEREAS~ the Town of Hillsborough Board of Commissioners has received an
application from Pelco, LLC as owner, for the approval of a Special Use Permit pursuant to
Sections 2 and 4 of the Zoning Ordinance for the Town of Hillsborough to allow the
development of a +1- 17.6 acre tract of land located east of the intersection of Elizabeth Brady
Road and US 70 Business, said parcel bearing PIN 9874-53-2652; and
WHEREAS~ the Town of Hillsborough Planning Board and the Board of Commissioners
conducted a joint public hearing to consider the application on April 26, 2005 after giving notice
thereof as required by law; and
WHEREAS, at the aforesaid public hearing, the Applicant and all others wishing to be
heard in connection with the Application were given an opportunity to do so; and
WHEREAS~ the Town of Hillsborough Planning Board has made it's recommendation to
the Town of Hillsborough Board of Commissioners regarding the Application;
WHEREAS, the Town of Hillsborough Board of Commissioners has considered the
recommendation of the Planning Board and all the information and testimony presented to it at
the public hearing.
.N?W~ THEREFORE: BE IT RESOLVED bX the Town of Hillsborough Board of
ComrmssIOners, on motion of !lJitAII LL {)61<J Ai} , seconded by
t. ERil !/IJllP1J1J/, this 13th day of June~ 2005 as follows;
1. The Board of Commissioners has considered all the information presented to it
both in support of and in opposition to the application at the April 26, 2005 public hearing;
2. The Board of Commissioners finds that the requested permit is within its
jurisdiction according to the Table of Permissible Uses, that the application is complete~ and that
if the proposed development is completed as proposed in the application, subject to the Special
Conditions attached hereto, it will comply with the requirements of the Zoning Ordinance.
3. The Special Conditions attached to the Special Use Permit as Exhibit 1 are
intended to preserve and/or promote the hea1~ safety and welfare of the surrounding areas and
the Town of Hillsborough in general~ and to insure that the Performance Standards established
by Section 4.48 of the Zoning Ordinance are met.
4. Upon adoption of this Resolution, the Town of Hillsborougb shall issue a Special
. Use Permit generally in the form annexed hereto as Exhibit 2 and notice of this decision and
227
.
issuance of the special use permit shall be transmitted forthwith in accordance with Section
4.41.10 of the Zoning Ordinance.
The foregoing Resolution was put to a vote of the Town of Hillsborough Board of
Commissioners, the results of which vote are as follows:
Ayes: 5
Noes: -ir
Absent or Excused: &-
tfd~
Dated: #/# ---13 ....E)s
1.
2.
.
3.
4.
5.
6.
.
Exhibit 1
The plans for Phase 1 dated March 24,2005 and pedestrian plan dated May 25, 2005
are the plans approved by this permit.
Detailed engineering drawings will be submitted and approved by the Town staff
prior to construction regarding~ but not limited to: water, sewer, stormwater
infrastructure. Detailed engineering drawings and architectural elevations for
buildings will be submitted and approved by Town staff prior to Zoning Permit
issuance~ including fire protection details.
The exact location and type of connection to the east adjoining property will be
determined during the Special Use Permit review on the adjoining property.
The upper parking lot (55 spaces adjacent to Phase 3) will be paved with a pervious
paving material.
The hours of operation for Building A, the event center~ will be from 7:00 AM until
2:00 AM.
The Town Board reserves the right to review the need for turn lanes at the US 70 A
driveway during the review of future phases.
.
.
.
228'
Exhibit 2
SPECIAL USE PERMIT #2005-3
PROPERTY OWNER(S) NAME & ADDRESS:
Pe1co~ LLC, 3212 Twin Streams Dr, Chapel Hill, NC 27514
DESCRIPTION OF REAL PROPERTY:
17.6 acre tract of land located east of the intersection of Elizabeth Brady Road and US 70
Business
PIN 9874-53-2652 TAX MAP 4.37.C.22
This is to certify that the Town of Hillsborough Board of Commissioners has duly issued the
above-numbered Special Use Permit to the above-stated owner(s) for the above-described
property subject to the general provisions of the Town of Hillsborough Zoning Ordinance and
subject also to the Special .conditions as set forth on Exhibit I attached hereto and incorporated
by reference~ which conditions shall henceforth be appurtenant to and shall run with the title to
said real property unless and until vacated or modified by action of the Town of Hillsborough
Board of Commissioners and/or a Court of competent jurisdiction.
IN TESTIMONY WHEREOF~ the Town of Hillsborough Board of Commissioners has caused
this Special Use Permit to be signed in its name by its Mayor, attested by the Town Clerk to the
Town of Hillsborough, and the official seal of the Town of Hillsborough to be affixed hereto~ all
by authority duly given.
A TIEST:
(SEAL)
TOWN OF IDLLSBOROUGH
~9~
Town Clerk
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.
229
TOWN OF HILLSBOROUGB BOARD OF COMMISSIONERS RESOLUTION
DENYING THE APPLICATION OF HOUSEWRIGHT BUILDING COMPANY FOR A
SPECIAL USE PERMIT
WHEREAS the Applicant, Housewright Building Company, applied to the Town of
Hillsborough for a Special Use Permit on a property on the north side of Rencher Street to
authorize the construction of cluster subdivision; and
WHEREAS the Town of Hillsborough Planning Board and Board of Commissioners
have conducted a public hearing on the application and have reviewed the site plans, information
and testimony presented both in favor of~ and in opposition to, the Special Use Permit; and
WHEREAS on June 7~ 2005, the Hillsborough Planning Board considered the application
and made its recommendation to the Board of Commissioners with respect to the application.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN OF HILLS BOROUGH
BOARD OF COMMISSIONERS the 13th day of June~ 2005 as follows:
1. The Board of Commissioners has reviewed the applicatio~ all the testimony presented
and materials submitted to it in connection with the applicatio~ and the Planning Board's
recommendatio~ and finds and concludes that the applicatio~ as proposed~ if completed
as proposed the development will not comply with the following requirements of the
Zoning Ordinance: minimum lot size for R-40 district.
WHEREFORE, upon a motion by Commissioner Michael Gering. seconded by
Commissioner Brian Lowen. the foregoing Resolution was put to a vote of the Town of
Hillsborough Board of Commissioners, the results of which vote are as follows:
Ayes: 5'
Noes: -4)-
Absent or Excused: -e-
.
.
.
Page 1 of3
23{)
Margaret Hauth
From: Kapp, Paul (Facilities Planning) [PKapp@FAC.UNC.EDU]
Sent: Tuesday, February 08,200510:03 AM
To: 'Susanne Vergara'; Holden Richards; Jessica Dockery; 'Margaret Hauth'
Cc: 'jlink@co.orange.nc.us'; Cathleen Turner; 'eric.peterson@hillsboroughnc.org'
Subject: Joint Town/County Task Force on Historic Resources in Hillsborough
Margaret,
As I have been stating for the past several weeks, project review for historic building rehabilitations in the
Hillsborough Historic District by both the County and the Town can be best summed up as capricious at best and
arbitrary at worse. All of which can result in a confusing and maddening process for the building owner.
I believe we can do better by clarifying the building review process, communicating it to the general public in a
simple and straightforward manner and examining and then utilizing better tools that insure both life safety issues
in building renovation and the preservation of historic resources.
All of that stated, I propose the following issues be examined by a joint task force composed of Town of
Hillsborough and Orange County concerned citizens and governmental staff that will meet on a regular basis for
two months and then submit a report to the Town Board and the County Commission addressing deficiencies and
suggesting improvements in the current building review process for historic resources and existing buildings.
Task 1: Evaluation of the Current Survey of the Hillsborough National Historic District- The last survey was
completed in 1996; as Margaret Shucker pointed out last week in our February HDC meeting, many of our historic
resources dating back to the World War II and Post-World War II era are not listed as contributing resources in
the district. The Task Force should look at the current accuracy of the Survey and decide if it should be updated
by 2006. The Task Force should also review the need for either expanding the district boundaries or
recommending a new historic district such as West Hillsborough. Town staff should examine this issue prior to
first Task Force meeting and prepare a succinct memo describing the current state of the Survey in order to
expedite the Task Force proceedings.
Task 2: Evaluation of How the Survey is Used and Conveyed by the Town and County- I was somewhat
dismayed that the Town had never submitted the Historic District Survey to neither the County's Planning
Department nor its Building Inspections Department. If it indeed had been submit then evidently has not been
used successfully as a planning tool by the County. This situation is not only a wasteful use of Town and County
resources but it also undermines how the information can be best used as a planning tool. A good example of
how the lack of information hurt the District was brought up at last weeks meeting by Barbara Church in her
example of the NCDOT's placement of a transformer by Tupelo's restaurant which diminished the character of
this significant intersection in the District. Clear understanding of the historic district survey by NCDOT during
their Section 106 review process would have perhaps prevented this unfortunate placement. Both the Town and
County Planning Staff should brief the Task Force on how planning information is conveyed to all departments in
the Town and the County as well as any relevant State agencies. This will be very important as the Hillsborough
explores any streetscape or bypass improvements. The Staff should also make suggestions to the Task Force
about adding the historic survey information to the County's GIS system.
Task 3: Review of the Building Permit Process in Orange County and How it works in the Historic
District: The Orange County Building Inspections Office works under the authority granted by Volume 1 of the
NCBC. It also has mandates and missions that are not specifically addressed in the State Code such as
implementation of the U.S. Dept. of Energy Residential Model Energy Code. The Orange County Building
Inspections Office should meet with the Task Force and brief them on how they evaluate historic buildings in the
context of life safety. The Task Force would then produce a list of suggestions on how this process can be
improved.
Task 4: Review of Planning and Zoning Ordinances in the Town of Hillsborough: More often than not
zoning issues overlap historic district and preservation issues. This can lead to confusion in the process by both
the Building Owner and the Town Planning Staff. Town Planning Staff should prepare a clear summary on how
6/6/2005
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the Zoning Ordinance works and the Task Force will evaluate how this information is conveyed, how the zoning
plan is implemented and make suggestions on the process can be improved.
Task 5: Review of the NC Rehab Code for Implementation in Orange County- Currently in Durham,
Greensboro and Raleigh building officials are using a building code specifically written for existing buildings, the
NC Rehab Code. This code has a proven track record of improving and providing life safety while allowing
buildings to be rehabilitated when otherwise, under the current building code, would be technically not feasible. I
believe if the Rehab Code was used in Orange as it is currently being used in Durham it wouldhave great results
not only with buildings of historical significance such as the Colonial Inn but also commercial buildings that are
currently vacant such as the old Wal-Mart on South Churton Street.
Task 6: Greater Promotion and Awareness of Historic Resources: The Task Force should look into a new
and better signage standard for both within the historic district and outside its boundaries. The promotion of the
State Tax Credit Program should be explored by the Task Force as well as the use of the State Historic
Preservation Office's "Greensheet" Program.
I am proposing that the Task Force be composed of at least one member of the following agencies:
1. HDC
2. Hillsborough Chamber of Commerce
3. Alliance for Historic Hillsborough
4. Orange County Planning Commission
5. Hillsborough Planning Commission
6. Hillsborough/Orange County Economic Development
7. Town Council
8. County Commission
Members of Staff serving as ex-officio of the Task Force should include the following:
1. HDC Staff
2. Hillsborough Planning Staff
3. Orange County Building Inspections Office
4. Orange County Planning Commission Office
5. Town Manager's Office
6. County Administrator's Office
I am proposing three weekend workshops that would occur on a Saturday that would address all of the Tasks.
Afterward, designated staff people from either the Town or the County prepare a draft which would be reviewed
by the TF. Once it is finalized, it would be submitted for implementation to the Town Council and the County
Commission.
If you have any questions, please feel free to contact me.
Regards,
Paul
Paul Hardin Kapp, AlA
Campus Historic Preservation Manager
The University of North Carolina at Chapel Hill
CB #1090103 Airport Road
Chapel Hill, North Carolina 27599-1090
Tel: (919)-843-3238
Fax: (919)-962-9103
PK,IJm@fac.unc.edu
"Remove Not the Ancient Landmarks Which Your Fathers Have Set"
6/6/2005
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1000 Corporote Drive . Suite 101 . Hillsborough, NC 27278
Telephone (919)732-3883 · Fox (919)732-6676
June 3, 2005
Mr. Eric Peterson
Town of Hillsborough
PO Box 429
101 East Orange Street
Hillsborough NC 27278
RE: Town Street Improvements - Contract Administration Services
Town of Hills borough
Dear Mr. Peterson:
Based on several meetings with Mr. Demetric Potts of your staff this proposal is to assist
the Town in preparation of Bid documents for this years capital improvements to the
Hillsborough street system. The scope of this work will be as follows:
Proiect Description
The Town of Hills borough desires to resurface existing streets in accordance with the
needs assessment list attached. Summit Consulting Engineers will verify and establish all
bid items and quantities, prepare and engineer's estimate, advertise and accept bids,
recommend award of the contract to the successful bidder~ administer the contract and
test for quality control and assurance during construction. Our target date for construction
availability is August 1, 2005.
In addition to these services the upgrade of Boundary and East Street will be included in
this contract.
We will invoice you monthly for services rendered. Our fee effort will be based on an
hourly rate which includes overhead and profit. In addition to our fee for effort, we will
invoice you for reimbursable expenses (mileage~ plotting, printing, copying~ postage,
deliveries, etc.) at 1.1 times our direct cost.
Page 1 of2
L:I Contracts&Proposals/2004 Contracts/POOOl Hillsborough, Town of - Street Improvrnents.doc
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233
Exclusions
The following tasks are not included in our scope of services, but shall be added as
needed or requested at an hourly rate or fixed fee:
. Geotechnical investigations.
. Any scope item not listed in our above "Scope of Services".
Please sign and date below, and return to us.
Sincerely,
T CONSULTING ENGINEERS, PLLC
Acceptance of this proposal:
Date:
Eric Peterson, Town of Hills borough
Authorization to Proceed on this date:
Page 20f2
L:I Contracts&Proposals/2004 ContractsIPOOOI Hillsborough, Town of - Street Improvrnents.doc
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Jun 06 05 lO:5Sa
Summit Consultin~ Eng_
9197326676
p. 1
~ SUMMIT
. Consulting Engineers
234
Fax Transmittal Cover Sheet
1000 Corporate Drive, Suite 101
Hillsborough NC 27278
(919) 732-3883 (phone)
(919) 732-6676 (fax)
Plcase ,Jeliver tl1ejorth com illg pages to:
To:
Dimitrix Putts
Company
Town of Hillsborough
Fax Machine #:
(I) 19) 644-2390
From:
Jim I)~rker
Date:
06/06/05
Subject:
Standard Rates for Contract Administration
Tral;smlssioll includes this page plus 1 pagels),
If yuu do not rcci.:ivc alllhc pages. vlease callus as soon as posslblc.
Est. 5 - 10 % of Contract Cost.
lhl' infQrm:Uion cOl1l::1incd in this facsimile mcSti:Jge is Jlrl~i1egcd-;md coltfidential information inter.de<i only for the (;se Oflhc indi'/idual 01' en;ilY
named above. If the rC<lder of [his message is notlhe intended recipient. you are hereby nmined th:ll ~ny disscmi:lation. distrihution or cory cf!his
cOJ1lIl1UnicUlion is strictly prchibiwd, I f you hUllc recc,-,'cd t~is co:nmlJniC<ltion in error. plca.;~ lIr.medmtcly nOllfy us by tclcph:>ne. and relunl :hc
ori,ginalll1C'SSage 10 us lit rhe above addre~;s via lhe U.S. Postll Scr';ire, Thank YO;L
;'
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Jun 06 05 10:S9a
Summit Consultin~ En~.
9197326676
I'/\;\ SUMMIT
\
Consulting Engineers
SCHEDULE OF STANDARD RATES
for
CONTRACT ADMINISTRATION
I. CLASSiFICATION HOU~L Y RATE
A. Principal Engineer $150.00
B. Project Engineer $ 95.00
C. Technician I $ 45,00
D. Technician II $ 55.00
E. Technician III $ 65.00
F. Technician IV $ 75.00
G, Ad m inistrati verCle rica I S 35.00
II. OTHER SERVICES - DIRECTfOUTSIOE EXPENSES STANDARD RATE
A. Prints $ 2.00 each
8. Vellums $ 4.50 each
C. Computer Disk Mailings $ 3.50 each
D. Photocopies $ 0,10each
E. Express MailfDeliveriesrCourier Cost plus 10%
F. Vehicles $ 75D.aDrmonth
G. Outside Repragraphic Services Cost plus 10%
H Outside Consultant Services Cost plus 1 ~%
I. Tapa and Tax Maps Cost plus i 0%
J. Outside Testing Services Cost pl~s 10%
p.2
235
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236
STATE OF NORTH CAROLINA
NPDES PHASE II
STORMW A TER PERMIT
AGREEMENT
COUNTY OF ORANGE I DRAFT
TOWN OF HILLSBOROUGH
MEMORANDUM OF AGREEMENT
This Memorandum of Agreement is entered into this _ day of
and between the Town of HiUsborough and Orange County.
~ 200_, by
WHEREAS~ the promotion of a sustainable community that provides for the protection of
water quality and the elevation of the quality of life of the citizens of that community is in the
best interest of the Town of Hills borough and Orange County; and
WHEREAS~ the recent growth of the community~ and that which is anticipated~ will
make efforts to protect water quality not only more difficult~ but also more essential; and
WHEREAS~ the Orange County Erosion Control Division Staff of the Planning and
Inspectio~s Department ~resent1y. imp!em~nts soil e.rosio~ an~ ~edi~~~~tio~ control regulations,
State m~dated Neuse Riv.er Basm Ripanan Buffer Program~ and ~~1ts wIth other stormwater
concerns m the Town of HIllsborough and Orange Couhty; and '. l:.:.:::.
WHEREAS~ Section 402(P) of the Clean Water Act and implementing regulations 40
CFR Part 122, 123 and 124, North Carolina General Statutes 143-215.1 and Session Law 2004-
163 require that the Town of Hillsborough implement a National Pollutant Discharge
Elimination System (NPDES) Phase II Stormwater Program; and
WHEREAS, Orange County and the Town of Hillsborough recognize the opportunity to
provide a more effective and efficient implementation of this NPDES Phase II Stormwater
Program working collaboratively; and
WHEREAS~ the parties have been working. cooperatively toward the development of a
system which will provide for the implementation of this Program, and ensure that the Town
maintains compliance with the forthcoming NPDES Phase II Stormwater Permit;
NOW, THEREFORE, the parties to this Memorandum hereby agree as follows:
Section 1.
Upon issuance of the NPDES Phase II Stormwater Permit for the Town by the
State of North Carolin~ Department of Environment and Natural Resources~
Division of Water Quality~ the parties will work cooperatively to develop and
enter into a contract which will provide for the implementation of the majority of
the permit requirements of the Town's NPDES Phase II Stormwater Program by
the Erosion Control Division Staff of the Orange County Planning and
M:IErosion Control DivlHillsborough Phase 1I1042505.Draft MOA,doc
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Section 2.
237
Inspections Department~ and the compensation of Orange County by the Town of
Hillsborough for said implementation.
The parties acknowledge that this Memorandum of Agreement is not intended to
and does not create legally binding obligations on any of the parties to act in
accordance with its provisions. Rather~ it co!!~~itutes a good faith statement of the
intent of the parties to cooperate in a :m~im4r designed to meet the mutual
objective of all the parties that die ''PO~i1~ot}!l$sborough be in compliance with
its pending NPDES Phase II Stormwater Permit and Orange County and the Town
provide for the protection of water quality and elevation of the quality of life of
their citizens through the sustainable growth of the community.
This the _ day of
Attest:
~20_.
TOWN OF HILLSBOROUGH
SEAL
By:
Mayor
Town Clerk
Attest:
I DRAFT
ORANGE COUNTY
SEAL
By:
Chair~ Board of Commissioners
Clerk to the Board of Commissioners
M:IErosion Control DivlHillsborough Phase 1I1042505.Draft MOAdoc
2