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Home My Public Portal About04-26-21 Agenda Work Session101 E. Orange St., PO Box 429, Hillsborough, NC 27278 www.hillsboroughnc.gov | @HillsboroughGov Board of Commissioners Agenda | 1 of 1 Agenda Board of Commissioners Remote work session 7 p.m. April 26, 2021 Virtual meeting via YouTube Live Town of Hillsborough YouTube channel Due to current public health concerns, this meeting will be conducted remotely using Zoom. Please use the bookmark feature to navigate and view the item attachments. 1.Opening of the work session 2.Agenda changes and approval 3.Items for decision ― consent agenda A.Miscellaneous budget amendments and transfers B.Tourism Development Authority budget amendments and transfers C.Compliance documents required by the N.C. Department of Commerce as part of Hillsborough’s Community Development Block Grant – Coronavirus (CDBG-CV) award 1.Equal Employment and Procurement Plan 2.Fair Housing Plan 3.Language Access Plan 4.Section 3 of North Carolina Local Jobs Initiative Plan 4.In-depth discussion and topics Budget “Mini” Retreat 5.Other business 6.Committee updates and reports 7.Adjournment Compliance with the American with Disabilities Act interpreter services and/or special sound equipment is available on request. If you are disabled and need assistance with reasonable accommodations, call the Town Clerk’s Office at 919-296-9443 a minimum of one business day in advance of the meeting. Board of Commissioners Agenda Abstract Form Meeting Date: April 26, 2021 Department: Administration - Budget Public Hearing: Yes No Date of Public Hearing: __________________________ For Clerk’s Use Only AGENDA ITEM # 3.A Consent Agenda Regular Agenda Closed Session PRESENTER/INFORMATION CONTACT: Emily Bradford, Budget Director ITEM TO BE CONSIDERED Subject: Miscellaneous budget amendments and transfers Attachment(s): 1. Description and explanation for budget amendments and transfers Brief Summary: To adjust budgeted revenues and expenditures, where needed, due to changes that have occurred since budget adoption. Action Requested: Consider approving budget amendments and transfers. ISSUE OVERVIEW Background Information & Issue Summary: N/A Financial Impacts: As indicated by each budget amendment. Staff Recommendations/Comments: To approve the attached list of budget amendments. BUDGET CHANGES REPORT TOWN OF HILLSBOROUGH FY 2020-2021 DATES: 04/26/2021 TO 04/26/2021 REFERENCE NUMBER DATE BUDGET CHANGE BUDGET ORIGINAL BUDGET AMENDEDCHANGE USER 10-00-3100-3101-214 2014 TAX LEVY 04/26/2021 0.00 114.00Adj to actual 20671 114.00EBRADFORD 10-00-3100-3101-215 2015 TAX LEVY 04/26/2021 0.00 1,111.00Adj to actual 20672 1,111.00EBRADFORD 10-00-3100-3101-216 2016 TAX LEVY 04/26/2021 0.00 111.00Adj to actual 20673 7,916.00EBRADFORD 10-00-3100-3101-218 2018 TAX LEVY 04/26/2021 0.00 841.00Adj to actual 20674 8,809.00EBRADFORD 10-00-3100-3101-219 2019 TAX LEVY 04/26/2021 35,000.00 1,053.00Adj to actual 20675 32,675.00EBRADFORD 10-00-3100-3101-220 2020 TAX LEVY 04/26/2021 6,196,000.00 6,770.00Adj to actual 20676 6,225,770.00EBRADFORD 10-10-4200-5300-474 RECRUITMENT 04/26/2021 2,500.00 400.00To cover recruitment advertising 20679 3,215.00EBRADFORD 10-10-4200-5300-530 DUES & SUBSCRIPTIONS 04/26/2021 6,713.00 720.00To cover CAI/Catapult membership overa 20678 7,633.00JDELLAVALL 10-10-4200-5300-577 WELLNESS PROGRAM ACTIVITIES 04/26/2021 8,000.00 -720.00To cover CAI/Catapult membership overa 20677 5,465.00JDELLAVALL 10-10-4200-5300-603 CONTINUING EDUCATION & TUITION REIM 04/26/2021 15,000.00 -400.00To cover recruitment advertising 20680 14,600.00EBRADFORD 10-20-5100-5300-110 TELEPHONE/INTERNET 04/26/2021 1,680.00 840.00Move portion of cell phone expense to Po 20669 2,906.00JDELLAVALL 10-20-5110-5300-110 TELEPHONE/INTERNET 04/26/2021 5,040.00 -840.00Move portion of cell phone expense to Po 20668 4,200.00JDELLAVALL 10-30-5600-5300-154 MAINTENANCE - GROUNDS 04/26/2021 0.00 10,000.00To cover contracted mowing 20670 10,000.00EBRADFORD 75-71-3870-3870-156 TRAN FR W/S US BUS 70 WTR PHASE I 04/26/2021 299,741.50 12,880.00To record Water SDFs 20681 597,269.50EBRADFORD 04/26/2021 299,741.50 7,728.00To record Water SDFs 20685 604,997.50EBRADFORD 75-71-6900-5970-928 TRAN TO UTL CAP IMP-US 70 PHASE I 04/26/2021 299,741.50 12,880.00To record Water SDFs 20682 597,269.50EBRADFORD 04/26/2021 299,741.50 7,728.00To record Water SDFs 20686 604,997.50EBRADFORD 76-71-3870-3870-155 TRAN FR W/S - COLLECT SYS REHAB 04/26/2021 1,008,106.50 10,810.00To record Sewer SDFs 20683 1,242,683.50EBRADFORD 04/26/2021 1,008,106.50 6,486.00To record Sewer SDFs 20687 1,249,169.50EBRADFORD 76-71-6900-5970-927 TRAN TO UTIL CAP IMP FD - COLL SYS 04/26/2021 1,008,106.50 10,810.00To record Sewer SDFs 20684 1,242,683.50EBRADFORD 04/26/2021 1,008,106.50 6,486.00To record Sewer SDFs 20688 1,249,169.50EBRADFORD 95,808.00 EBRADFORD 3:33:47PM04/19/2021 fl142r03 Page 1 of 1 GF - Revenue GF - Revenue GF - Revenue GF - Revenue GF - Revenue GF - Revenue Admin. Admin. Admin. Admin. Police - Admin. Police - Patrol Streets Water SDFs Water SDFs Sewer SDFs Sewer SDFs Board of Commissioners Agenda Abstract Form Meeting Date: April 26, 2021 Department: Administration - Budget Public Hearing: Yes No Date of Public Hearing: __________________________ For Clerk’s Use Only AGENDA ITEM # 3.B Consent Agenda Regular Agenda Closed Session PRESENTER/INFORMATION CONTACT: Emily Bradford, Budget Director ITEM TO BE CONSIDERED Subject: Miscellaneous Tourism Development Authority budget amendments and transfers Attachment(s): 1. Description and explanation for budget amendments and transfers Brief Summary: To adjust budgeted revenues and expenditures where needed due to changes that have occurred since budget adoption. Additionally, a budget adjustment is not needed but funds are being re-allocated within the ‘Special Projects & Partnerships’ line item from ‘Sundays in Hillsborough’ to ‘News of Orange Mural Project’ in the amount of $6,000 as approved by the TDA at their April 14 meeting. ‘Sundays in Hillsborough’ was not able to take place in Fall 2020 due to COVID-19. Action Requested: Consider approving budget amendments and transfers. ISSUE OVERVIEW Background Information & Issue Summary: Tourism budget amendments/transfers greater than or equal to $5,000 must be approved by the town board. Financial Impacts: As indicated by each budget amendment. Staff Recommendations/Comments: To approve the attached list of budget amendments. BUDGET CHANGES REPORT TOWN OF HILLSBOROUGH FY 2020-2021 DATES: 04/27/2021 TO 04/27/2021 REFERENCE NUMBER DATE BUDGET CHANGE BUDGET ORIGINAL BUDGET AMENDEDCHANGE USER 73-00-3200-3100-000 OCCUPANCY TAX 04/27/2021 27,000.00 27,000.00Est. yr-end actual 20662 82,000.00EBRADFORD 04/27/2021 27,000.00 -40,000.00Yr-end conservative adjustment 20666 42,000.00EBRADFORD 73-00-3900-3900-000 FUND BALANCE APPROPRIATED 04/27/2021 67,572.00 -23,345.00Est. yr-end actual 20664 64,227.00EBRADFORD 04/27/2021 67,572.00 -26,190.00Est. yr-end actual 20665 38,037.00EBRADFORD 04/27/2021 67,572.00 40,000.00Yr-end conservative adjustment 20667 78,037.00EBRADFORD 73-51-6250-5300-998 3% HOLDBACK OCCUPANCY TAX 04/27/2021 810.00 810.00To cover est. yr-end actual 20663 3,185.00EBRADFORD -21,725.00 EBRADFORD 8:35:53PM04/19/2021 fl142r03 Page 1 of 1 TDA TDA TDA Board of Commissioners Agenda Abstract Form Meeting Date: April 26, 2021 Department: Planning Public Hearing: Yes No Date of Public Hearing: For Clerk’s Use Only AGENDA ITEM # 3.C Consent Agenda Regular Agenda Closed Session PRESENTER/INFORMATION CONTACT: Margaret A. Hauth, Planning Director/Assistant Town Manager ITEM TO BE CONSIDERED Subject: Compliance documents required by the N.C. Department of Commerce as part of Hillsborough’s Community Development Block Grant – Coronavirus (CDBG-CV) award Attachment(s): 1.Equal Employment and Procurement Plan 2.Fair Housing Plan 3. Language Access Plan 4.Section 3 of North Carolina Local Jobs Initiative Plan Brief Summary: The attached documents must be locally adopted to comply with N.C. Department of Commerce requirements to access the funding award. The documents are based on the templates provided and Orange County documents. Orange County will be administrating the program on the town’s behalf, so we need to follow their plans. Action Requested: Adopt the four required documents with the mayor’s signature for submittal to N.C. Department of Commerce. ISSUE OVERVIEW Background Information & Issue Summary: Financial Impacts: Staff Recommendations/Comments: Attachment 4 – Equal Employment and Procurement - Town of Hillsborough – Grant No: 20-V-3528 Town of Hillsborough NC CDBG-CV Grant Grant Number 20-V-3528 Equal Employment and Procurement Plan The Town of Hillsborough maintains the policy of providing equal employment opportunities for all persons regardless of race, color, religion, sex, national origin, handicap, age, political affiliation, or any other non-merit factor, except where religion, sex, national origin, or age are bona fide occupation qualifications for employment. In furtherance of this policy, the Town of Hillsborough prohibits any retaliatory action of any kind taken by any employee of the locality against any other employee or applicant for employment because that person made a charge, testified, assisted or participated in any manner in a hearing, proceeding or investigation of employment discrimination. The Town of Hillsborough shall strive for greater utilization of all persons by identifying previously underutilized groups in the workforce, such as minorities, women, and the handicapped, and making special efforts toward their recruitment, selection, development and upward mobility and any other term, condition, or privilege of employment. Responsibility for implementing equal opportunities and affirmative action measures is hereby assigned to the Town Manager and/or other persons designated by the Chief Elected Official to assist in the implementation of this policy statement. The Town of Hillsborough shall develop a self-evaluation mechanism to provide for periodic examination and evaluation. Periodic reports as requested on the progress of Equal Employment Opportunity and Affirmative Action will be presented to the Chief Elected Official. The Town of Hillsborough is committed to this policy and is aware that with its implementation, the Town of Hillsborough will receive positive benefits through the greater utilization and development of all its human resources. Adopted this _______ day of ___________________, 20__. __________________________________ (Chief Elected Official) ATTEST: __________________________ (Clerk) Attachment 1 – Fair Housing Town of Hillsborough – Grant No: 20-V-3528 1 Recipient’s Plan to Further Fair Housing Grantee: Town of Hillsborough Grant No: 20-V-3528 Recipient’s Address: P. O. Box 429 Hillsborough, NC 27278 Contact Person: Margaret Hauth Contact Phone #: 919-296-9471 Contact Email: margaret.hauth@hillsboroughnc.gov TDD #: I. Indicate if the Recipient will be affirmatively furthering fair housing for the first time or has implemented specific activities in the past. First Time X Past Activities II. Identify and analyze obstacles to affirmatively furthering fair housing in recipient’s community. (Use additional pages as necessary) In 2020, Orange County worked with the Center for Urban and Regional Studies at the University of North Carolina Chapel Hill to conduct an Analysis of Impediments to Fair Housing Choice (AI). The AI includes an analysis of Orange County laws, regulations, and administrative policies, procedures, and practices that affect the location, availability, and accessibility of housing throughout the County, which includes the Town of Hillsborough. The AI also includes an assessment of conditions, both public and private, that affect fair housing choice. The AI identified the following impediments to fair housing, which apply to Hillsborough: • A lack of affordable housing has resulted in severe rent burdens among many renters, especially those with low and moderate incomes. A majority of renters in the county are rent burdened—spending over 30% of household income toward rent and utilities; this figure exceeds 85% for households earning below $35,000 and is still over half for households earning $35,000–$49,999. Meanwhile, over 80% of households earning under $20,000 are severely rent burdened (meaning they pay over half their income toward rent and utilities), as are nearly 40% of households earning $20,000–$34,999. • African Americans and Hispanics face difficulties receiving conventional mortgage loans. The denial rate for first-lien, conventional mortgages for African Americans is consistently over four times that of Whites, and the denial rate for Hispanics is between two and four times that of Whites as well. The most common reasons for denial, as noted in the HMDA data, are credit history for African Americans (33% of all denial reasons) and debt-to-income ratio for Hispanics (49% of all denial reasons). Attachment 1 – Fair Housing Town of Hillsborough – Grant No: 20-V-3528 2 • Based on the number of fair housing complaints filed, disabled persons face difficulties accessing fair housing. Nearly half of all fair housing complaints filed in the 2010–2018 period were filed due to discrimination based on disability. Given that the county’s population with a disability is approximately 12,500, and that over a quarter of the elderly are also disabled, this is a significant barrier to fair housing. • Zoning throughout Orange County largely restricts the development of denser, more affordable housing. Only a handful of areas in Orange County are zoned for moderately dense residential development (over four lots or units per acre), and resident opposition can complicate or inhibit the development of denser housing in those areas. Given the high cost of land in service-rich neighborhoods of Hillsborough, Carrboro, and Chapel Hill, low-density zoning can prevent the construction of affordable housing. Based on the impediments above, the AI makes the following recommendations: • Seek more funds for subsidized housing. Low- and moderate-income households are disproportionately rent-burdened, and recently, rents have increased faster than wages. • Educate landlords, property managers, and other housing providers about fair housing law and reasonable accommodation, especially as they pertain to persons with disabilities. • Offer educational courses on mortgage lending and building credit scores that are geared toward African American and Hispanic borrowers. • Encourage cooperation and coordination between the affordable housing advisory boards in the county. • Explore funding options for a best-practices Rapid Rehousing program to serve homeless individuals and families in Orange County. • Identify ways to protect residents of mobile home parks who may be under threat of displacement. • Consider areas to strategically up-zone to promote the development of affordable housing. III. Will the above activities apply to the total municipality or county? Yes X No_____ If no, provide an explanation. IV. Briefly describe the quarterly activities that the recipient will undertake over the active period of the grant to affirmatively further fair housing in their Attachment 1 – Fair Housing Town of Hillsborough – Grant No: 20-V-3528 3 community. A time schedule and estimated cost for implementation of these activities must be included. Activities must be scheduled for implementation at least on a quarterly basis. Grantee Name: Town of Hillsborough – All activities being undertaken by the County include implementation within the Town limits. Quarterly Fair Housing Activity Months Year Estimated Cost Actual Cost Seek more funds for subsidized housing. Orange County Housing and Community Development Department, and its partners in the Towns of Carrboro, Chapel Hill, and Hillsborough are constantly seeking funding opportunities for affordable housing in the community, and will continue to do so ongoing throughout the CDBG-CV grant period. Examples of recent funding secured for affordable housing – in addition to this CDBG-CV grant – include Coronavirus Relief Funds (CRF) allocated to the County and Town of Hillsborough, CRF funds from the NC Department of Health and Human Services, and Emergency Solutions Grant (ESG) funds from the NC Department of Health and Human Services. Jan-Mar 2021 $0 Apr-Jun 2021 $0 Jul-Sep 2021 $0 Oct-Dec 2021 $0 Jan-Mar 2022 $0 Apr-Jun 2022 $0 Jul-Sep 2022 $0 Oct-Dec 2022 $0 Jan-Mar 2023 $0 Apr-Jun 2023 $0 Explore funding options for a best-practices Rapid Rehousing program to serve homeless individuals and families in Orange County. Orange County Housing and Community Development Department and the Orange County Partnership to End Homelessness set up and funded a best-practice Rapid Rehousing program in 2020, using ESG funds, ESG – Coronavirus (ESG-CV) funds, and HOME Investment Partnerships Program (HOME) funds. They estimate that at full capacity – with two full-time case managers with full caseloads – the annual budget requirement will be $432,000. Jan-Mar 2021 $108,000 Apr-Jun 2021 $108,000 Jul-Sep 2021 $108,000 Oct-Dec 2021 $108,000 Jan-Mar 2022 $108,000 Apr-Jun 2022 $108,000 Jul-Sep 2022 $108,000 Oct-Dec 2022 $108,000 Attachment 1 – Fair Housing Town of Hillsborough – Grant No: 20-V-3528 4 Jan-Mar 2023 $108,000 Apr-Jun 2023 $108,000 Identify ways to protect residents of mobile home parks who may be under threat of displacement. Orange County Housing and Community Development Department is working with the Towns of Chapel Hill, Carrboro, and Hillsborough to align mobile home park displacement prevention and relocation strategies. The County currently has funds for mobile home park infrastructure upgrades (about $1 million) and a small amount of funds for mobile home replacement and relocation when a resident faces displacement. The County and the Towns plan to create a joint plan to ensure how a rapid response when opportunities to prevent displacement of mobile home park residents and/or assist with relocation arise, and propose broadening the allowable uses of existing funds to provide the flexibility needed to respond to mobile home needs as they arise. Once the joint plan is developed, we estimate an annual budget of at least $500,000 will help fund expenses related to park upgrades, relocation, etc. Jan-Mar 2021 $125,000 Apr-Jun 2021 $125,000 Jul-Sep 2021 $125,000 Oct-Dec 2021 $125,000 Jan-Mar 2022 $125,000 Apr-Jun 2022 $125,000 Jul-Sep 2022 $125,000 Oct-Dec 2022 $125,000 Jan-Mar 2023 $125,000 Apr-Jun 2023 $125,000 Attachment 1 – Fair Housing Town of Hillsborough – Grant No: 20-V-3528 5 V. Describe recipient’s method of receiving and resolving housing discrimination complaints. This may be either a procedure currently being implemented or one to be implemented under this CDBG grant. Include a description of how the recipient informs the public about the complaint procedures. All Hillsborough residents are directed to the Orange County Department of Human Rights and Relations, which follows the Orange County Civil Rights Ordinance: http://orangecountync.gov/DocumentCenter/View/2673/Orange-County-Civil-Rights- Ordinance-PDF a) Any person or persons wishing to file a complaint of housing discrimination in Orange County may do so by submitting the complaint to the Orange County Human Relations Commission. b) Complaints shall be in writing, signed and verified by the Complainant. Complaints shall state the facts upon which the allegation of an unlawful discriminatory practice is based and shall contain such other information and be in such form as the Commission requires. c) Commission staff shall assist Complainants, if necessary, in reducing Complaints to writing and shall assist in setting forth the information in the Complaint as may be required by the Commission. 1) The Complaint must be filed with the Commission no later than one (1) year from the date of the occurrence, or cessation of the alleged unlawful practice. d) The Commission staff shall serve upon the Respondent and Complainant, in accordance with the North Carolina Rules of Civil Procedure, a copy of the Complaint and a notice advising the Respondent and Complainant of his or her procedural rights and obligations under this Ordinance within ten (10) days after the Complaint is filed with the Commission. e) A Respondent may file an answer to the Complaint within ten (10) days after receiving a copy of the Complaint. Answers shall be signed and verified by the Respondent and shall be filed with the Commission. f) With leave of the Commission staff, which leave shall be granted whenever it would be reasonable and fair to do so, Complaints and Answers may be amended at any time. Amendments shall be reduced to writing, signed, verified, and filed with the Commission. Amendments shall relate back to the date the original Complaint or Answer was filed. g) The Commission staff shall, within thirty (30) days after the filing of a Complaint, commence an investigation into the allegations contained in the Complaint. h) In conducting an investigation, the Commission staff shall have access at all reasonable times to premises, records, documents, individuals, and other evidence or possible sources of evidence to ascertain the factual basis of the allegations Attachment 1 – Fair Housing Town of Hillsborough – Grant No: 20-V-3528 6 contained in the Complaint. Further, the Commission staff may examine, record, and copy such materials and take and record the testimony or statements of such persons as reasonably necessary for the furtherance of the investigation. i) In conducting an investigation, the Commission staff may, in accordance with the North Carolina Rules of Civil Procedure: 1) issue subpoenas compelling access to or production of documents, materials, or other evidence; 2) issue subpoenas compelling witnesses, including any party, to appear and give testimony before the Commission staff; 3) issue subpoenas compelling witnesses, including any party, to appear and give testimony at a deposition; 4) take depositions of witnesses, including any party; and 5) issue interrogatories to a Respondent. j) Upon written application to the Commission staff, a Respondent shall be entitled to the issuance of interrogatories directed to the Complainant, to the issuance of a reasonable number of subpoenas for the taking of depositions, and to the issuance of a reasonable number of subpoenas for the production of evidence. k) In the case of refusal to obey a subpoena, answer an interrogatory, answer a question propounded in a deposition, or answer a question propounded during an interview conducted by the Commission staff pursuant to this section, the Commission staff or the Respondent may make a motion in the Superior Court to compel a person to obey the subpoena, answer the interrogatory, or answer the question. The North Carolina Rules of Civil Procedure shall apply to the making of such motions. If a person fails to obey an order issued pursuant to this subsection, the court may apply any or all of the sanctions available in Rule 37 of the North Carolina Rules of Civil Procedure. l) Whenever the Commission staff concludes on the basis of a preliminary investigation of a Complaint that prompt judicial action is necessary to carry out the purposes of this Ordinance, the Commission may commence a civil action in the Superior Court for injunctive relief pending final disposition of the Complaint. Any injunctive relief shall be ordered in accordance with Rule 65 of the North Carolina Rules of Civil Procedure. The commencement of a civil action to obtain injunctive relief shall not affect the continuation of the Commission staff’s investigation or the initiation of a separate civil action provided for in this Ordinance. m) Complaints may be resolved at any time by informal conference, conciliation, or persuasion. Nothing said or done in the course of such informal procedure may be made public by the Commission or used as evidence in any subsequent proceeding without the written consent of the person concerned. However, all resolutions of complaints shall be reduced to writing, shall be signed by the Complainant, the Respondent, and by the Commission staff and shall be Attachment 1 – Fair Housing Town of Hillsborough – Grant No: 20-V-3528 7 enforceable as a binding contract by the Commission pursuant to the applicable provisions of North Carolina law, statutory and common. Approved By: Name and Title of Chief Elected or Executive Officer Signature Date Attachment 2 - Town of Hillsborough Grant No: 20-V-3528 - Language Access Plan Page 1 Providing Meaningful Communication with Persons with Limited English Proficiency Town of Hillsborough Grant No.: 20-V-3528 NC CDBG-CV Program January 2021 – June 2023 The purpose of this Policy is to ensure compliance with Title VI of the Civil Rights Act of 1964, and other applicable federal and state laws and their implementing regulations with respect to persons with limited English proficiency (LEP). Title VI of the Civil Rights Act of 1964 prohibits discrimination based on the ground of race, color or national origin by any entity receiving federal financial assistance. Administrative methods or procedures, which have the effect of subjecting individuals to discrimination or defeating the objectives of these regulations, are prohibited. POLICY: In order to avoid discrimination on the grounds of national origin, all programs or activities administered by Orange County for the Town of Hillsborough will take reasonable steps to ensure that persons with Limited English Proficiency (LEP) have meaningful access and an equal opportunity to participate in benefits and services for which such persons qualify. This Policy defines the responsibilities the agency has to ensure LEP individuals can communicate effectively. The language below is from the Orange County Language Access Policy, approved by the Orange County Board of Commissioners on June 16, 2020. Orange County has been selected as grant administrator for the Town of Hillsborough; therefore the additional steps apply: https://www.orangecountync.gov/DocumentCenter/View/11565/ I. Policy Statement It is the policy of Orange County to provide timely meaningful access for Limited English Proficiency (“LEP”) persons to all Orange County government services, programs and activities. All language assistance services are free to all LEP individuals who requests language assistance services. II. Purpose and Authority The purpose of this policy is to establish effective guidelines, consistent with Title VI of the Civil Rights Act of 1964 and Executive Order 13166, for Orange County employees to follow when providing services to, or interacting with, individuals who have limited English proficiency (“LEP”). Following this Policy is essential to the success of our mission to provide meaningful access to the LEP community to all Orange County services, programs and activities. III. Staff Compliance Orange County personnel shall provide free language assistance services to LEP individuals whom they encounter or whenever an LEP person requests language assistance services. Each County Department Director is responsible to ensure their respective departments have a Language Access Plan, LEP persons have access to the services their department provides, and to ensuring department staff receives training on providing language access services to the LEP community. Attachment 2 - Town of Hillsborough Grant No: 20-V-3528 - Language Access Plan Page 2 IV. Definitions A. Bi-lingual staff – A staff person employed by Orange County who has demonstrated proficiency in English and reading, writing, speaking, or understanding at least one other language as authorized by his or her department. B. Interpretation – The act of listening to a communication in one language (source language) and orally converting it to another language (target language) while retaining the same meaning. C. C. Language Assistance Services – Oral and written language services needed to assist LEP individuals to communicate effectively with staff, and to provide LEP individuals with meaningful access to, and an equal opportunity to participate fully in, the services, activities, or other programs administered by the Department. D. Limited English Proficient (LEP) Individuals – Individuals who do not speak English as their primary language and who have a limited ability to read, write, speak, or understand English. LEP individuals may be competent in English for certain types of communication (e.g., speaking or understanding), but still be LEP for other purposes (e.g., reading or writing). E. Meaningful Access – Language assistance that results in accurate, timely, and effective communication at no cost to the LEP individual. F. Primary Language – An individual’s primary language is the language in which an individual most effectively communicates. G. Program or Activity – The term “program or activity” and the term “program” mean all of the operations of the Department. H. Qualified Translator or Interpreter – An in-house or contracted translator or interpreter who has demonstrated his or her competence to interpret or translate through testing by the Department of Human Rights and Relations, Certification by a qualified entity, or is authorized to do so by contract with the Department and if a County employee approved by his or her department. I. Sight Translation – Oral rendering of written text into spoken language by an interpreter without change in meaning based on a visual review of the original text or document. J. Translation – The replacement of written text from one language (source language) into an equivalent written text in another language (target language). K. Vital Document – Paper or electronic written material that contains information that is critical for accessing a component’s program or activities, or is required by law. V. Language Assistance Measures Ensuring the quality and accuracy of language assistance services provided by each Department is critical to providing LEP individuals with meaningful access to department programs and activities. A. Identification of LEP Communities. Orange County shall assess the number or proportion of LEP persons from each language group in The County to determine appropriate language assistance services. The analysis shall include persons in Orange County with whom your departments comes into contact while carrying out service functions. The assessment shall include all communities who are eligible for services or are likely directly affected by programs or activities. Departments may determine the linguistic characteristics of an LEP population in their Orange County service area by reviewing available data from federal, Attachment 2 - Town of Hillsborough Grant No: 20-V-3528 - Language Access Plan Page 3 state, and local government agencies, community, and faith based organizations. A department should also identifying and tracking the primary language of LEP individuals that seek and receive programs and services. By regularly collecting and updating this data, departments will be able to accurately identify and efficiently address the changing needs of their LEP communities. B. Quality of Language Access Services. The Department of Human Rights and Relations is delegated with the authority to ensure that the County will take reasonable steps to ensure that all staff or contracted personnel who serve as translators, interpreters or who communicate “in-language” with LEP persons are competent to do so. Considerations of competency in light of particular tasks may include: 1. Demonstrated proficiency in and ability to communicate information accurately in both English and the other language; 2. Identifying and employing the appropriate mode of interpreting (e.g., consecutive, simultaneous, or sight translation), translating, or communicating fluently in the target language; 3. Knowledge in both languages of any specialized terms or concepts particular to the component’s program or activity and of any particularized vocabulary used by the LEP person; 4. Understanding and following confidentiality, impartiality, and ethical rules to the same extent as Department staff; 5. Understanding and adhering to their role as interpreters, translators, or bi-lingual staff. Department liaisons shall also take reasonable steps to ensure that when translating text, all staff or contracted personnel who serve as translators are briefed by department staff on the context and intended audience. 6. Absent exigent circumstances, Departments shall avoid using family members (including children), neighbors, friends, acquaintances, and bystanders to provide language assistance services. Departments shall also avoid using individual opposing parties, adverse witnesses, or victims to a dispute as interpreters. Using family, friends, bystanders, or parties to a dispute to interpret could result in a breach of confidentiality, a conflict of interest, or inadequate interpretation. C. Types of Language Assistance Services. There are two primary types of language assistance services: oral and written. 1. Interpretation Services. Oral language assistance service may come in the form of "in- language" communication (a qualified bi-lingual staff member communicating directly in an LEP person's language) or interpreting. An interpreter renders a message spoken in one language into one or more other languages. Interpretation can take place in-person, through a telephonic interpreter, or via internet or video interpreting. Departments shall ensure the Department of Human Rights and Relations has designated interpreters as “qualified” prior to engaging them for services. 2. Translation of Vital Documents. Departments should proactively translate vital written documents into the frequently encountered languages of LEP groups served or likely to be affected by the benefit, program or service in Orange County. When Department staff have reason to believe that an individual is LEP, the department must respond to that LEP individual in a language he or she understands. For example, a letter sent to a specific Attachment 2 - Town of Hillsborough Grant No: 20-V-3528 - Language Access Plan Page 4 LEP person should be translated into the appropriate language for that individual to ensure effective communication. Departments should also have a language access plans in place for handling written communication with LEP individuals in less frequently encountered languages. a. Departments shall prioritize translation of vital documents. Classification of a document as “vital” depends upon the importance of the program, information, encounter, or service involved, and the consequence to the LEP person if the information in question is not provided accurately or in a timely manner. The determination of what documents are considered “vital” is left to the discretion of individual department, which are in the best position to evaluate their circumstances and services within their language access planning materials. b. Types of vital documents – There are two types of Vital Documents, those meant for the general public or a broad audience, and those that are specific communications regarding a case or matter between an individual and the Department. Each department should exercise its discretion in creating a process for identifying and prioritizing vital documents or texts to translate. Departments should ensure all translations are completed by translators who are designated as “qualified” by the Department of Human Rights and Relations. c. Documents that may be considered “vital” may include, but are not limited to, certain: i. Administrative complaints, release, or waiver forms; ii. Claim or application forms; iii. Public outreach or educational materials (including web-based material); iv. Letters or notices pertaining to policies changes or updates; v. Written notices of rights, denial, loss, or decreases in benefits or services, or hearings; vi. Forms or written material related to individual rights; vii. Notices of community meetings or other community outreach; viii. Notices regarding the availability of language assistance services provided by the component at no cost to LEP individuals; D. Notice of Language Assistance Services. Departments must inform LEP individuals of their eligibility for benefits, programs, and services in a language they understand. Departments should assess all points of contact, telephone, in-person, mail, and electronic communication its staff has with the public and LEP individuals when determining the best method of providing notice of language assistance services. A Department should not only provide oral and written language access services, but also must explain how LEP individuals can access available language assistance services. VI. Staff Training A. Language Access Training is mandatory for department directors, supervisors, interpreters, translators, or frontline staff who encounter LEP individuals. Staff shall receive training on identifying LEP customers and the procedures for accessing language assistance services provided by the County. New employees will receive training at new employee orientation on Attachment 2 - Town of Hillsborough Grant No: 20-V-3528 - Language Access Plan Page 5 available language access resources. Yearly training will be available to existing staff to ensure effective implementation of the policies and procedures. B. Supervisors will be responsible for department level training on the department’s language access plan. They will provide training for all staff before this new plan is implemented. Included in the training will be a review of the Language Access Policy and Procedures; training on utilizing translation services for written materials, and utilizing currently used language and sign language interpreter services. Subsequent training of new or existing staff will be the responsibility of the manager/supervisor. C. Training for language access services will include training on LEP services, cultural sensitivity, and customer service to help staff deliver effective and efficient language access services to our LEP clients. The training will be delivered via a blended approach, using a variety of tools, such as in-person classroom style training, and on-line webinars designed to enhance skills, including the language skills of our employees. VII. Bilingual Staff Orange County has a multi-lingual hiring preference for positions that provide direct, critical services to LEP clients, these position are advertised to attract bi-lingual candidates. Positions, the County Manager determines provide direct critical services to the LEP community, may require that bi-lingual persons serve in those positions. Prior to becoming an Orange County employee, a candidate shall be tested to ensure that are competent in each required language. Bi-lingual employees may receive additional remuneration. VIII. Performance Measurement Orange County shall conduct an audit of language assistance services on an annual basis. An audit consists of monitoring, evaluating and updating the Language Access Policy, plan and procedures as needed. IX. Language Access Plan The Department of Human Rights shall develop a Language Access Plan and procedures under the direction and with the approval of the County Manager. The Language Access Plan and any procedures shall assist County departments in defining tasks, setting deadlines and priorities, assigning responsibility, and allocating the resources necessary to come into or maintaining compliance with language access requirements. It will also describes how departments will meet the service delivery standards. ADDITIONAL DEFINITIONS: Limited English Proficient (LEP) individual – Any prospective, potential, or actual recipient of benefits or services from the agency who cannot speak, read, write or understand the English language at a level that permits them to interact effectively with health care providers and social service agencies. Vital Documents – These forms include, but are not limited to, applications, consent forms, all compliance plans, bid documents, fair housing information, citizen participation plans, letters containing important information regarding participation in a program; notices pertaining to the reduction, denial, or termination of services or benefits, the right to appeal such actions, or that require a response from beneficiary notices advising LEP persons of the availability of free language assistance, and other outreach materials. Attachment 2 - Town of Hillsborough Grant No: 20-V-3528 - Language Access Plan Page 6 Title VI Compliance Officer: The person or persons responsible for administering compliance with the Title VI LEP policies. Substantial number of LEP: 5% or 1,000 people, whichever is smaller, are potential applicants or recipients of the agency and speak a primary language other than English and have limited English proficiency. PROCEDURES: The Town of Hillsborough and the Towns of Chapel Hill and Carboro follow the Orange County procedures outlined below, establishing a unified system for all residents located within Orange County: 1. IDENTIFYING LEP PERSONS AND THEIR LANGUAGE On behalf of the grant recipient, Orange County will promptly identify the language and communication needs of the LEP person. Staff will use a language identification card (or “I speak cards,”) provided by the Rural Economic Development Division (REDD) and LEP posters to determine the language. In addition, when records are kept of past interactions with individuals or family members, the language used to communicate with the LEP person will be included as part of the record. 2. OBTAINING A QUALIFIED INTEPRETER List the current name, office telephone number, office address and email address of the Title VI compliance officer: Marlyn Valeiko, LEP Specialist Orange County Human Rights and Relations Department Phone: 919-245-2498 Email: mvaleiko@orangecountync.gov Office Address: 1000 Corporate Dr, Suite 400 Hillsborough, NC 27278 (Note: The agency must notify the REDD Compliance Office immediately of changes in name or contact information for the Title VI compliance officer.) Check all methods that will be used: Maintaining an accurate and current list showing the language, phone number and hours of availability of bilingual staff (provide the list): Contacting the appropriate bilingual staff member to interpret, in the event that an interpreter is needed, if an employee who speaks the needed language is available and is qualified to interpret; Obtaining an outside interpreter if a bilingual staff or staff interpreter is not available or does not speak the needed language. (Identify the agency(s) name(s) with whom you have contracted or made arrangements) Attachment 2 - Town of Hillsborough Grant No: 20-V-3528 - Language Access Plan Page 7 • American Sign Language: Communication Services for Deaf and Hard of Hearing • Arabic: Samar Shawa • Chinese (Mandarin): o Cindy Chen o Daniel Qiao • Karen: Margaret Toe • Burmese: Margaret Toe • Spanish: o Benjamin Beaton o Lissette Saca o Lucia Centeno o Patricia Nadabar o Spanish Without Borders o TILDE Language Justice Cooperative • Various Languages: o CHICLE Language Institute o FLUENT Language Solutions o Telelanguage o Refugee Community Partnership (Chin, Karen, Burmese, Kinyamulenge, Kinyarwanda, Kirundi, Lingala, Swahili, French) o United Language Group Have/has agreed to provide qualified interpreter services. The agency’s (or agencies’) telephone number(s) is/are (insert number (s)), and the hours of availability are (insert hours). Other (describe): All staff will be provided notice of this policy and procedure, and staff that may have direct contact with LEP individuals will be trained in effective communication techniques, including the effective use of an interpreter. Some LEP persons may prefer or request to use a family member or friend as an interpreter. However, family members or friends of the LEP person will not be used as interpreters unless specifically requested by that individual and after the LEP person has understood that an offer of an interpreter at no charge to the person has been made by the facility. Such an offer and the response will be documented in the person’s file. If the LEP person chooses to use a family member or friend as an interpreter, issues of competency of interpretation, confidentiality, privacy, and conflict of interest should be considered. If the family member or friend is not competent or appropriate for any of these reasons, competent interpreter services will be provided to the LEP person. Children and other residents will not be used to interpret, in order to ensure confidentiality of information and accurate communication. 3. PROVIDING WRITTEN TRANSLATIONS Attachment 2 - Town of Hillsborough Grant No: 20-V-3528 - Language Access Plan Page 8 i. On behalf of the Town of Hillsborough, Orange County will set benchmarks for translation of vital documents into additional languages. (please ensure to keep records of those documents that apply to your agency) ii. When translation of vital documents is needed, on behalf of the Town of Hillsborough, Orange County will submit documents for translation into frequently-encountered languages. iii. Facilities will provide translation of other written materials, if needed, as well as written notice of the availability of translation, free of charge, for LEP individuals. 4. PROVIDING NOTICE TO LEP PERSONS On behalf of the Town of Hillsborough, Orange County will inform LEP persons of the availability of language assistance, free of charge, by providing written notice in languages LEP persons will understand. Example: The notification will include, in the primary language of the applicant/recipient, the following language: IMPORTANT: IF YOU NEED HELP IN READING THIS, ASK THE AGENCY FOR AN INTERPRETER TO HELP. AN INTERPRETER IS AVAILABLE FREE OF CHARGE. All interpreters, translators and other aids needed to comply with this policy shall be provided without cost to the person being served, and individuals and their families will be informed of the availability of such assistance free of charge. At a minimum, notices and signs will be posted and provided in intake areas and other points of entry, including but not limited to the main lobbies, waiting rooms, etc. (Include those areas that apply to your agency). Notification will also be provided through one or more of the following: outreach documents, telephone voice mail menus, local newspapers, radio and television stations, and/or community-based organizations (Include those that apply to your agency). 5. MONITORING LANGUAGE NEEDS AND IMPLEMENTATION On an ongoing basis, on behalf of the Town of Hillsborough, Orange County will assess changes in demographics, types of services or other needs that may require reevaluation of this policy and its procedures. In addition, on behalf of the Town of Hillsborough, Orange County will regularly assess the efficacy of these procedures, including but not limited to mechanisms for securing interpreter services, complaints filed by LEP persons, feedback from residents and community organizations, etc. I. Compliance Procedures, Reporting and Monitoring A. Reporting The agency will complete an annual compliance report and send this report to REDD. (Format will be supplied by REDD) B. Monitoring The agency will complete a self-monitoring report on a quarterly basis, using a standardized reporting system proposed by the local government. These reports will be maintained and stored by the Title VI Compliance Officer and will be provided to the REDD upon request. Attachment 2 - Town of Hillsborough Grant No: 20-V-3528 - Language Access Plan Page 9 The agency will cooperate, when requested, with special review by the REDD. II. Applicant/Recipient Complaints of Discriminatory Treatment A. Complaints The agency will provide assistance to LEP individuals who do not speak or write in English if they indicate that they would like to file a complaint. A complaint will be filed in writing, contain the name and address of the person filing it or his/her designee and briefly describe the alleged violation of this policy. The form can be found at https://www.nccommerce.com/documents/cdbg-compliance-plans. The agency will maintain records of any complaints filed, the date of filing, actions taken and resolution. The agency will notify the appropriate section within REDD of complaints filed, the date of filing, actions taken and resolution. This information will be provided within 30 days of resolution. B. Resolution of Matter If the matter cannot be resolved by informal means, the individual will be informed of his or her right to appeal further to REDD. This notice will be provided in the primary language of the individual with Limited English Proficiency. The REDD Compliance Office will conduct an investigation of the allegations of the complaint. The investigation will afford all interested persons and their representatives, if any, an opportunity to submit evidence relevant to the complaint. The investigation will not exceed 30 days, absent a 15-day extension for extenuating circumstances. If the investigation indicates a failure to comply with the Act, the local unit of government, agency Director or his/her designee will so inform the recipient and the matter will be resolved by informal means whenever possible within 60 days. If the matter cannot be resolved by informal means, then the individual will be informed of his or her right to appeal further to the Department of Justice. This notice will be provided in the primary language of the individual with Limited English Proficiency. If not resolved by REDD, then complaint will be forwarded to Department of Justice (DOJ), Department of Housing and Urban Development (HUD) Field Office. Attachment 2 - Town of Hillsborough Grant No: 20-V-3528 - Language Access Plan Page 10 SUBMITTED AND ADOPTED BY: __________________________________ Name of Chief Elected Official __________________________________ Signature of Chief Elected Official ____________________________ Date Attachment 3 - Town of Hillsborough Grant No: 20-V-3528 – Section 3 Plan Page 1 Local Jobs Initiative Section 3 Plan Local Economic Benefit for Low- and Very Low-Income Persons _____________________________________________ NC Department of Commerce and its sub-recipient Town of Hillsborough NC CDBG-CV Program _____________________________________________ January 2021 – June 2023 I. APPLICATION AND COVERAGE OF POLICY NC Commerce and any of it sub-recipients are committed to the policy that, to the greatest extent possible, opportunities for training and employment be given to lower income residents of the community development project area and contracts for work in connection with federally assisted community development project be awarded to business concerns located or owned in substantial part by persons residing in the Section 3 covered area, as required by Section 3 of the Housing and Urban Development Act of 1968, NC Commerce and any of its sub-recipients of the Community Development Block Grant - Coronavirus (CDBG-CV) has developed and hereby adopts the following Plan: NC Commerce and any of its sub-recipients will comply with all applicable provisions of Section 3 of the Housing and Urban Development Act of 1968, as amended (24 CRF Part 135), all regulations issued pursuant thereto by the Secretary of Housing and Urban Development, and all applicable rules and orders of the Department issued thereunder. This Section 3 covered project area for the purposes of this grant program shall include NC Commerce and any of its sub-recipients and portions of the immediately adjacent area. NC Commerce and any of its sub-recipients will be responsible for implementation and administration of the Section 3 plan. In order to implement the NC Commerce and any of its sub- recipient’s policy of encouraging local residents and businesses participation in undertaking community development activities, the NC Commerce and any of its sub-recipients will follow this Section 3 plan which describes the steps to be taken to provide increased opportunities for local residents and businesses. This Section 3 Plan shall apply to services needed in connection with the grant including, but not limited to, businesses in the fields of planning, consulting, design, building construction/renovation, maintenance and repair, etc. When in need of a service, NC Commerce and any of its sub-recipients will identify suppliers, contractors or subcontractors located in the Section 3 area. Resources for this identification shall include the Minority Business Directory published through the State Department of Commerce, local directories and Small Business Administration local offices. Word of mouth recommendation shall also be used as a source. Attachment 3 - Town of Hillsborough Grant No: 20-V-3528 – Section 3 Plan Page 2 The State of North Carolina and any of its sub-recipients will include the Section 3 clause and this plan in all contracts executed under this Community Development Block Grant (CDBG) Program. Where necessary, listings from any agency noted above deemed shall be included as well as sources of subcontractors and suppliers. The Section 3 Plan shall be mentioned in the pre- bid meetings and preconstruction meetings. The prime contractor selected for major public works facility or public construction work will be required to submit a Section 3 Plan which will outline his/her work needs in connection with the project. Should a need exist to hire any additional personnel, the North Carolina Employment Security Commission – Orange County shall be notified and referred to the contractor. Each contract for housing rehabilitation under the program, as applicable, for jobs having contracts in excess of $100,000 shall be required to submit a Section 3 Plan. This Plan will be maintained on file in the grant office and shall be updated from time to time or as the grant staff may deem necessary. Early in our project, prior to any contracting, major purchases or hiring, we will develop a listing of jobs, supplies and contracts likely to be utilized during the project. We will then advertise the pertinent information regarding the project including all Section 3 required information. Community Investment and Assistance (CI) should be contacted with the Bid Materials to distribute the information throughout their list serve to reach out the communities. II. AFFIRMATIVE ACTIONS FOR RESIDENT AND BUSINESS PARTICIPATION NC Commerce and any of its sub-recipients will take the following steps to assure that low income residents and businesses within the community development project area and within Orange County are used whenever possible: (Describe below) • Use the HUD Section 3 Business Registry to identify qualified Section 3 businesses in Orange County • Assure that qualified businesses and Section 3 residents are solicited whenever they are potential sources of contracts, services or supplies for projects funded by Orange County’s CDBG-CV program • Divide total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by businesses and residents • Establish delivery schedule, where the requirements permits, which encourages participation by area for businesses and residents Please check the methods to be used for the Section 3 program in your community: NC Commerce and any of its sub-recipients will place a display advertisement in the local newspaper containing the following information: i. A brief description of the project ii. A listing of jobs, contracts and supplies likely to be utilized in carrying out the project. Attachment 3 - Town of Hillsborough Grant No: 20-V-3528 – Section 3 Plan Page 3 iii. An acknowledgement that under Section 3 of Housing and Community Development Act, local residents and businesses will be utilized for jobs, contract and supplies in carrying out the project to the greatest extent feasible. iv. A location where individuals interested in jobs or contracts can register for consideration v. A statement that all jobs will be listed through and hiring will be done through the local office of the North Carolina Employment Security Commission; a statement that all contracts will be listed with the North Carolina Division of Purchase and Contracts; and a statement that potential employees and businesses may seek development and training assistance through various state and local agencies, or which Orange County will maintain a list for individuals and business concerns inquiring information Training and technical assistance will be provided by the local community college for low income residents requiring skills to participate in community development project activities. Referrals will be made to the community college, local Private Industry Councils, Job Training Partnership Act (29 U.S.C. 1579 (a)) (JTPA) Programs, and job training programs provided by local community action agencies as appropriate. Residents and businesses will be encouraged to participate in state and/or federal job training programs that may be offered in the area. Low income residents and businesses will be informed and educated regarding employment and procurement opportunities in the following ways: i. Advertisement in the local newspaper ii. Posting of Section 3 Plan at the County Courthouse iii. County Board meeting when project activities and schedules are discussed iv. Open meetings of Project Advisory Committee when everyone in neighborhood is invited v. Notification to other agencies that provide services to low-income people. Other (describe): NC Commerce and any of its sub-recipients will, to the greatest extent feasible, utilize lower income area residents as trainees and employees: 1. Encourage rehabilitation contractors to hire local area residents 2. Encourage public works contractors to hire local area residents NC Commerce and any of its sub-recipients will, to the greatest extent feasible, utilize businesses located in or owned in substantial part by persons residing in the area 1. Contract with local contractors to perform demolition activities, and housing rehabilitation activities. 2. Encourage public improvement contractors to hire local residents for site clearance work, hauling materials, and performing other site improvements. 3. Encourage all contractors to purchase supplies and materials from the local hardware and supply stores Attachment 3 - Town of Hillsborough Grant No: 20-V-3528 – Section 3 Plan Page 4 III. RECORDS AND REPORTS NC Commerce and any of its sub-recipients will maintain such records and accounts and furnish such information and reports as are required under the Section 3 regulations, and permit authorized representatives of State CDBG, and federal agencies access to books, records, and premises for purposes of investigation in connection with a grievance or to ascertain compliance with this Section 3 Plan. NC Commerce and any of its sub-recipients shall report annually the Section 3 numbers using the form HUD 60002 to State CDBG at the end of the calendar year as part of the Annual Performance Report (APR). IV. MONITORING COMPLIANCE NC Commerce and any of its sub-recipients may require each applicable contractor to provide a copy of the Section 3 Plan and will monitor compliance during the performance of the contract. Copies of all advertisements, notice, and published information will be kept to document the implementation of the plan. V. COMPLAINTS CONTACT Please provide the main contact in case that any complaint is received from the general public on Section 3 compliance (including name, phone number, address, and email): Margaret Hauth, Assistant Town Manager Phone: 919-296-9471 Email: margaret.hauth@hillsboroughnc.gov Office Address: 101 East Orange St (P. O. Box 429) Hillsborough, NC 27278 ______________________________________________________________________________ ______________________________________________________________________________ Adopted this _______ day of ___________________, 20____. __________________________________ (Chief Elected Official) ATTEST: __________________________ (Clerk) Board of Commissioners Agenda Abstract Form Meeting Date: April 26, 2021 Department: Administration Public Hearing: Yes No Date of Public Hearing: For Clerk’s Use Only AGENDA ITEM # 4 Consent Agenda Regular Agenda Closed Session PRESENTER/INFORMATION CONTACT: Jen Della Valle, Assistant to the Town Manager/Deputy Budget Director ITEM TO BE CONSIDERED Subject: Budget “Mini” Retreat Attachment(s): 1. Values Revisions 2. Proposed Board Engagement Schedule 3. Example Engineering and Utilities Fees 4. Utilities Tasks Benefiting Applicants 5. Proposed Organizational Restructure Brief Summary: April Mini-Retreat Topics: - Strategic Plan Values o The board provided feedback on draft definitions for the proposed strategic plan values at the February work session. Mayor Weaver and Commissioner English will present revisions based on board feedback for the board to consider. - Board Engagement Schedule o Staff will present a proposed schedule for board discussion on the strategic plan. These check-ins will provide an opportunity for the board to receive updates on strategic plan implementation and provide feedback on any changes to organization prioritization and strategy. See “Proposed Board Engagement Schedule” for additional details. - Water and Sewer Fees o An evaluation comparing other municipal utility development-related fees comparison to current Hillsborough development-related fees was conducted to stabilize rates for all customers and respond to an increase in development requiring greater staff effort. The assessment looked to answer whether there are opportunities for cost recovery and what other municipalities are doing. The analysis showed that Hillsborough fees for development-related projects and activities are much lower than other surrounding municipalities and water authorities. A hypothetical project fee comparison is attached. Additionally, a table of activities that do not directly benefit the entire customer base was created with an explanation of the current fee and the resources required to complete the task. This table is attached. Staff has ranked the table with color coding on tasks where developing cost recovery-based fees is recommended. This is intended to provide initial areas of consideration and discussion. It is requested that the board provide direction to staff about development of cost recovery fees before significant time is invested in creating and justifying such fees. - Organizational Restructure o The “Proposed Organizational Restructure” attachment includes a summary of the proposed re- organization and successional planning steps planned for inclusion in the FY22 budget. To get a quick overview of the proposal you can read the executive summary on page one, then the updated organizational chart on the last page. It’s important to emphasize this is a draft. The town manager was hoping to have the draft completed a week or two ago so staff and affected operations would have time to provide an additional round of feedback before bringing the concept before the town board. Unfortunately, he ran out of time. There are still gaps, questions, and concerns requiring further discussion amongst staff to refine the proposal. Consideration was given to delaying presentation of the proposed FY22 re-organization to the town board until the May 10 board meeting, so more internal feedback/review could be incorporated, but the manager was concerned sharing this information, requesting board feedback, and delivering the budget to the board at the same time would be too much at one time. The town manager and assistant town manager/planning director will provide a brief overview for the board, but want to focus on responding to questions, ideas, concerns, as well as identifying areas where the board may want additional information going into the budget process later in May and June. Receiving feedback and thoughts from the board is part of the review and refinement process, so there is no expectation of approval from the board at this point. o Some highlights include:  Reducing town manager’s span from 10 to 5 direct reports  Grouping functions for enhanced communication and coordination  Providing growth opportunities to existing staff Action Requested: Provide feedback ISSUE OVERVIEW Background Information & Issue Summary: This is the third part of the budget mini-retreat series, an opportunity for the board to discuss budget-related items for the upcoming fiscal year. Previous topics have included the strategic plan, departmental services, and utilities infrastructure needs. Financial Impacts: None at this time. Staff Recommendations/Comments: N/A Intro to values discussion: At the 2020 budget retreat, the Board of Commissioners was asked to take another look at the town values in the context of creating a new strategy map. There was a need to have greater clarity about what each value meant, so that board members can be sure to have a shared understanding of those values, and so that staff can better understand what is driving the board as they put those values into practice. To the extent possible, the strategy map needs to have a clear vision statement, mission statement, list of values, and list of strategic goals. Each of these elements has a distinct purpose, and it is helpful to avoid too much overlap in language between them. After some discussion at the retreat, the board listed the following values: vibrant, affordable, forward thinking, equitable, ethical, safe. Mayor Weaver and Commissioner English were tasked with creating expanded definitions of each value. Working from the framework that our values provide the stimulus for our strategic goals, the aforementioned list of values has been expressed in the below list, for consideration and discussion by the board. 2021 DRAFT VALUES Vibrancy A vibrant Hillsborough is one that is lively and active, and the activity is visible and frequent. We see this manifest in cultural art events, recreation, and how people know each other and are connected by physical and social networks. The community can find ways to participate and connect from both inside and outside their homes. The people, physical environment, and business community are core to this vibrant atmosphere. Equity and Inclusion Hillsborough is a place where every resident can thrive, where everyone who lives and works here feels they belong. We will strive to support policies, plans, and actions that are administered fairly to build a Hillsborough where people of all races, ethnicities, genders, sexes, sexual orientations, abilities, and incomes want to live, can afford to live, and will be treated with dignity and respect. Forward Thinking We think and make decisions that can persist over generations for a sustainable Hillsborough, acknowledging that economic, environmental and social issues are interrelated. This community has a unique sense of place encapsulated by both Hillsborough’s long and treasured history and where it meets change and looks to the future. We have an obligation to be fiscally, environmentally, and culturally wise in order to plan for the long term and be resilient to climate change and unforeseen events. We strive to foster a culture of innovation and creativity in town operations. Public Service The town of Hillsborough is here to serve. We are committed to good and ethical governance. We are responsible stewards of community tax dollars put to use for the public good. We strive to ensure each resident, visitor, business, and employee are safe as they live, work, and play in Hillsborough, and this sense of safety should extend beyond the physical environment to foster a community where the people are free from worry regarding whether who they are has bearing on how they are treated. Strategic Plan – Proposed Board Engagement Schedule While the strategic plan should be used throughout the year to help guide decisions, staff recommends that the board reserve time twice a year to discuss the strategic plan – in the fall and the spring. Below are the proposed topics for these conversations. Spring Check In – Slated for Spring 2022 - Discuss Strategic Plan Additions o Staff will propose additions for the third year of the strategic plan period (i.e. for the FY23 budget, strategic plan recommendations will be made for FY25). o Reflect any adjustments that the board discussed during the fall update. Fall Update – Slated for Fall 2022, to update on FY22 Plan Year - Receive Update on Previous Year Accomplishments o Initiatives  Status Update – Not Started, In Progress, or Completed • Staff will provide additional information if initiative was not completed (i.e. challenges, additional resources needed, etc.). o Performance measures  Provide the results for the performance measures. - Provide Feedback o Board can ask questions and provide feedback on results presented. o This would also be an opportunity for the board to discuss any proposed shifts in strategy/priority. - Check in on Mid-Year Budget Requests (if needed) o Board can consider opportunities that come up during the year that do not need to be addressed immediately but that need to be addressed before the upcoming budget process. A list of the previous year’s unfunded requests will also be presented so the board can compare the new requests against the current fiscal year’s unfunded requests. Example fees for a 200 unit subdivision with water and sewer; 15 sheets; two rounds of review comments; 3,000 LF of water and sewer; reinspection of 500 lf and 25 taps; three resinspection trips Availability Request Capacity Request Agreement/Permit Fees Fire Flow Test Plan Review Re-Review Construction Insp Reinspection W/S Tap Inspection Tap Reinspection CCTV Review As Built Review Total Hillsborough could charge but do not -$ -$ 150.00$ 2,000.00$ 2,000.00$ -$ -$ -$ -$ -$ -$ 4,150.00$ Durham 20.00$ 500.00$ 520.00$ 945.00$ 7,500.00$ -$ 6,000.00$ -$ 3,120.00$ 104.00$ 18,709.00$ OWASA -$ -$ -$ 230.00$ 10,890.00$ -$ 21,780.00$ 3,750.00$ -$ -$ -$ -$ 36,650.00$ Cary -$ -$ -$ -$ -$ -$ 15,100.00$ 198.00$ 1,625.00$ -$ -$ -$ 16,923.00$ Mebane 250.00$ -$ -$ 1,200.00$ 15,000.00$ -$ -$ -$ -$ -$ -$ -$ 16,450.00$ Pittsboro -$ -$ 100.00$ -$ 5,500.00$ -$ 4,500.00$ 750.00$ 10,000.00$ 1,250.00$ -$ 300.00$ 22,400.00$ Apex -$ -$ -$ 75.00$ 825.00$ 150.00$ 9,000.00$ 975.00$ -$ 3,750.00$ -$ 200.00$ 14,975.00$ Burlington -$ -$ -$ -$ 19,000.00$ 9,500.00$ -$ -$ -$ -$ -$ -$ 28,500.00$ *Fees from current fee schedules found online 1 Utilities Related Tasks Not Directly Benefitting Entire Customer Base April 2021 Utilities Dept Task Description Current Fee People Involved Notes Plan Review Review of plans through TRC process, review utility construction plans, calculations, and specifications for water, sewer, and pump stations, review small lot split plans and single buildings not part of TRC process. $100 each for 0 – 10 units; $500 each over 10 units or very complex projects. Marie, Nathan, Terry, Troy, sometimes Joel, Lacy and Al, coordination with planning dept This takes a lot of time. Recommend updating fee schedule to cover actual costs + multiplier based on overhead, increased pricing for pumping stations, increase fees for multiple reviews Construction and Warranty Inspections Observe water and sewer construction, assist contractor with installation questions, attend preconstruction meetings, witness acceptance testing and taps, perform pre-acceptance and warranty walk throughs and punch list, confirm punch list was completed, observe punch list repairs, assist with shut down for taps, consult on problems, sometimes handle citizen concerns. None Nathan, Terry, Marie (for engineering changes/concerns) By far the biggest item without cost recovery. Often times calls are last minute, and contractor is not ready – wasting staff time. Other utilities charge inspection and reinspection fees by the linear foot of pipe or tap. Permit Applications Provide information for developer permit applications, prepare flow acceptance letter, ability to serve letter and provide engineering data, review submittal None Marie, Julie This would be a nominal fee, could wrap with increased plan review fee. Water and Sewer Extension Contract Prepare water and sewer extension contract, review with legal and applicant, prepare for BOC agenda, revise and cause to be executed as needed, amend if change in owner or other terms, ensure contract is followed throughout process None Marie, Bob Hornik, sometimes Margaret This can take several hours depending on complexity of project and developer negotiations. Town is paying attorney fees to review and sign off. Water and Sewer Availability Answer questions about undeveloped and redevelopment potential, provide maps and field visits if needed, describe fees and process Actual Cost Nathan, Terry, Marie, Julie, Joel, Lacy, Tyrone, Planning Dept, sometimes collection staff in Historically have not charged this because too fuzzy to determine. Need to set hourly rates plus overhead fee. Can take a 2 televising mains to locate existing sewer laterals. lot of time for smaller developers to answer questions and walk- through process, show in field where things are located, resist engineering projects for developers Developer Invoicing Prepare invoice for utilities fees (reviews, SDFs, laterals, meters), revise invoice or consult legal about fees, send invoice, track/report payment None Julie, Nathan, Marie, Financial Svcs staff, sometimes Bob Hornik Lots of coordination and staff time to execute an invoice for a development project and make sure it is paid. Sign Off on OC Building Permits Go into OC building permit system frequently to approve and sign off on building permits having water and sewer connections None Marie, sometimes Nathan and Troy (to be trained) Often are unaware of small projects needing water and sewer, causing scramble to determine and invoice. As-Built Drawing Review Review final as-built drawings for project (sometimes multiple times) None Marie, Nathan, Terry Charge flat fee or hourly fee + multiplier based on overhead, increase for repeated reviews CCTV and Smoke Test Review Review final and end of warranty sewer video and smoke testing results, verify in accordance with specifications, prepare and transmit defect list, meet with contractor, observe/review repairs again, verify all repairs are acceptable None Nathan, Terry, Marie This takes a lot of time. Recommend to charge by LF of sewer or by time for reviews Developer Acceptance Coordinate/obtain all items needed for town to accept water and sewer infrastructure (developer letter, confirmation of inspection and punch list completion, schedule of values, engineering certifications, drawings, easements, warranty bond), prepare None Marie, Nathan, Terry, Tyrone, Keri This often happens too late and the developer is wanting COs for the homes, causing scramble and lots of back and forth – diverting from daily work plan to accommodate 3 consent agenda item abstract, share date with finance Plat Review Coordinate with planning dept and developer on final plat reviews for subdivisions or utility easements None Marie Verification of Proposed Development Through Modeling Use consultants to add projects to water and sewer model to determine adequate supply and capacity, coordinate agreements and task orders None Marie This can be a few thousand dollars in consultant fees Easement/Encroach ment Preparation Prepare easement documents for water and sewer, or complete encroachment documents for NCDOT or homeowners for easement encroachments on behalf of applicant, coordinate signatures and submittals None Marie, Bob Hornik, Eric, Sarah, staff notary, Julie Annexation Review Coordinate with planning department in discussing annexations None Marie, planning department (mainly Margaret) Bond Release Coordinate with developer, other town departments for bond release, prepare and return bond, possible BOC approval (?) None Marie, planning, public works, sometimes legal Repair of Third-Party Damages Repair sewer and water main breaks from damage by third party contractors None* Collection and Distribution Staff, Marie In the few instances we can, we have sent invoices for reimbursement accounting for all TOH costs. This is practiced by most all utilities, but this is not formalized in fee schedule Water and Sewer Lateral Installations Install single family residential taps $750 Water $1000 Sewer Collection and Distribution Staff, Marie Ordinance descriptions do not match current practice, likely does not cover costs of all staff time, equipment, street 4 cuts, boring beneath street, materials Water and Sewer Caps Cut and cap water and sewer services for redevelopments where new services are requested in a different location None Distribution and Collection system staff, meter tech We need to bring heavy equipment to excavate, and use labor and materials to properly abandon existing services, and restore the site. Sometimes the meter is moved and there may already be a small meter relocation fee. Backflow and Cross Connection Administration Coordination and inspection with commercial and some residential owners about backflow devices, enforcement follow up, plan review of new projects, upkeep of staff certification None (backflow tester pays fee to online management service when uploading reports for town) Troy, Nathan, sometimes Marie, OC permit staff Need to specify terms that qualify for required install/upgrade in ordinance. Due to limited number of devices in system, would probably not generate enough each year to be significant, but could cover some costs. Fats, Oils and Grease Administration Coordination and inspection with commercial owners about FOG, plan review, enforcement, database maintenance None Troy, sometimes Marie and Bob Hornik, OC permit staff Need to specify terms that qualify for required upgrade to FOG device in ordinance. As above, maybe not a big revenue generating fee. SDFs Water and Sewer SDFs As determined by consultant and adopted. Should be minimum of every five years. Marie, budget staff, consultants Need to clarify in ordinance when SDFs are charged for redevelopment of small parcels. Lots of parcels that are redeveloped never paid SDFs because 5 they were pre-enactment of such fees. Mapping Contractors provide some data but must verify accuracy, collect meter data, have consultant draw system and add attributes to GIS and to Utility Cloud None Tyrone, Marie, consultants We pay consultants to check data from contractors and enter features into mapping that is not reimbursed. Meter relocations Move meters at request of residents or developers, usually after separating combined water and sewer services $100 Tyrone, distribution division Highly recommend developing some type of cost recovery Should develop some type of cost recovery Could develop some type of cost recovery Good but need to clarify in ordinance when charged 1 DRAFT - Proposed Organizational Restructure for FY22 Budget Executive Summary This is a summary of the proposed re-organization and succession planning steps planned for inclusion in the upcoming FY22 budget, funds and board approval permitting. Direct reports to the town manager decrease from 10 to 5, thus simplifying the structure by having only five departments. Operations are better aligned by grouping functions that overlap and regularly interact together to improve opportunities for enhancing communication, problem-solving, streamlining, succession planning, and redundancy during absences/vacancies. Better use of town funds by delegating more responsibility to staff that are ready to take on additional responsibility, replacing vacant higher pay grade positions with more entry level staff to fill key needs, and bringing director-level positions more in line with an organization of Hillsborough’s size. This is all done without adding any net additional full-time employees (FTE’s). • Eliminated positions (3.8 FTEs) pay for changes: public works director, human resources director/town clerk, fire marshal/emergency management coordinator, fire inspections senior customer service representative (0.4) part-time fire inspector (0.4). Eliminating these positions, contracting fire inspection services to Orange County, and reassigning emergency management duties internally covers most or all the restructuring costs. • Position additions (2.0 FTE’s): o Facilities coordinator (reports to reclassified public space manager/sustainability manager). Provides relief to public works, public space, and all departments by taking on this work. Most division and department heads coordinate facility maintenance and repairs for their operations, which is highly inefficient. o Management analyst (reports to reclassified administrative services director). Primary support is to HR and budget but can assist town clerk and PIO operations. Fills in some of gaps created by loss of hours due to eliminating the HR director/town clerk and the assistant to the town manager/deputy budget director moving to administrative services director. Provides much needed redundancy within the department. A significant gap will still exist with HR and budget needing assistance, so further work must be done in the area in terms of resources, technology, prioritization, streamlining, and provide assistance in more affordable ways, such as an updated intern program. • Unfreeze planning technician that has been vacant since early 2020. It was frozen with many other positions due to concerns about the economic impacts from COVID-19. The FY22 re-organization fills this position to 1) keep up with the current workload in the planning department, and 2) succession planning by freeing existing planning staff to take on current duties, projects, and committee assignments currently handled by the assistant planning director/assistant town manager before her retirement. This gives her capacity to focus on key projects, plans, and other broader issues that fall more into the realm of this now larger department due to the addition of public works and sustainability responsibilities. It also allows time to create data sets, tracking models, and archives that will be helpful as the town continues to grow and make efficient use of available resources. This position must be filled for the retirement transition plan for the planning director/assistant town manager to be effective. Additional responsibility and reclassifications for the public works supervisor, economic development planner, public space manager, planning director/assistant town manager, HR analyst, HR technician/deputy town clerk, and assistant to the town manager/deputy budget director. Each position will go through the job description update/evaluation process and market analysis to determine new salary grade classifications and raises, assuming justifications support changes. 2 Authorized Structure, Span of Control, and Need to Adjust to a Growing Hillsborough The town board authorizes the number and types of positions in the organization annually by adopting the budget. The classification and pay plan establish pay grades (based on market analysis) by position type and is updated periodically when changes are needed – this is also approved by the town board. A generally accepted management rule on the number of people one person can effectively supervise is five to seven. The town manager has been supervising 10 and as many as 14 during the utilities’ director vacancy two years ago. This change occurred out of financial necessity during the Great Recession when about 15% of General Fund positions were eliminated, including the then assistant town manager/public works director, public works equipment operator, code enforcement officer, about six in the HPD (accreditation manager, analyst, community policing, and others), plus more. This required the manager to take on supervision of additional operations. The current organizational structure (July 2020) is below but streamlined to only show direct reports to the manager. Three noteworthy positives of the change were 1) flattening the organization structure to minimize bureaucracy, 2) cost savings, 3) put all members of the management team on an even playing field, improved coordination, cooperation, communication, and for the most part created a strong team bond over the past 10 years. Negatives included too many preventable mistakes and missed opportunities due to the town manager not having the time, awareness, or focus to engage appropriately, especially when pulled in many different directions, as well as addressing complex and time consuming issues (e.g., personnel investigations, disciplinary/appeal processes, revenue bond issuances, budget development, recruitment/selection processes, water/sewer rate matters, etc.). Hillsborough has grown and the town government is now involved in a wider and more complex range of issues than it was 10 years ago. The current structure is struggling to manage these issues, especially due to our limited size in comparison to much larger neighbors in Carrboro, Chapel Hill, Durham, Mebane, and others in the Research Triangle region. Our organization is fortunate to have a solid bench of talented and motivated employees who care about the Hillsborough community. Still, we are spread thin, cannot afford to add new positions over the next few years, and must be thoughtful in looking at ways to better structure the organization to improve natural communication channels and leverage the talent we currently have. In addition, we’ve lost key and diverse staff that have been recruited by other organizations offering superior pay, benefits, and advancement opportunities. One of the biggest inefficiencies, from cost and communications standpoints, is having many small (1 to 5 person) units, with too many manager and director level positions. This can make an organization top-heavy and not leverage the advantages that key entry level positions bring to an organization in terms of cost effectiveness, diversity opportunities, and succession planning. Entry to mid-level positions can bring the most relief and work per dollar ratio of new hires to an organization by freeing other staff to focus on high priority issues by limiting the diversions that regularly prevent progress in organizations. 3 Current State – Key Vacancies, Interims, Pilot Projects, & Pending Retirements Since July the town has seen the departures of six critical and experienced staff due to retirements and career advancement opportunities. The human resources director/town clerk, public works director, finance director, fire marshal/emergency management coordinator, senior customer support specialist to the fire marshal, and water plant superintendent all left between August 2020 and February 2021. Losing five division and department head level positions for a small organization is a lot. All positions are currently being filled by interims as of mid-April. Other key retirements have taken place in recent years. The utilities analyst is retiring in May. Another 10 employees are eligible for retirement now or are seriously considering it within the next four years – all in key positions. Most notably, the planning director/assistant town manager is scheduled to retire in less than two years (February 2023). This position is involved in more issues (detailed and from a macro level) than any other position. Her then 32 years of experience will likely represent the largest knowledge loss the organization has experienced. Thus, part of the this proposed re-organization is succession planning to prepare current and future staff for her retirement. One example of how structure can improve communication and coordination is the recent pilot where public works was moved from the town manager (in December after the director’s retirement) to the planning director/assistant town manager. This grouped four operations that regularly interact under the same supervisory umbrella: planning, public space, stormwater, and public works. While these operations already worked well together on many issues, this move appears to have further improved communication. It’s provided opportunities for the public works supervisor to serve as the interim public works director and other staff in this department to take on additional responsibilities, grow professionally, make the organization more resilient, as well as creating more opportunities for improvements in the future. To make this work, the planning director/assistant manager also took on some of the public works director’s prior duties. Similar experiences are happening with the other interim positions held by the human resources analyst, human resources technician/deputy town clerk, financial analyst, utilities inspector, wastewater plan superintendent, and part-time fire inspector. Of the seven employees serving in interim positions, five have at least five years of experience with the town (e.g., 5, 14, 14, 14, and 18 years). While the town does not yet have a formal succession plan or guide, it is discussed regularly by departments. Action has gone on behind the scenes in a variety of ways to prepare for expected and unexpected vacancies. Getting started two years before the planning director/assistant town manager’s retirement is one example of this practice. The town manager was eligible for retirement 1 ½ years ago but has no immediate plans to retire. Updates to the organizational structure delegate more responsibility to staff, provide more redundancy, opportunities for career progression, make better use of the manager’s time, make it easier to find someone to fill the position when the current manager leaves or retires, makes the town less reliant on certain technical areas of expertise or familiarity by whoever is town manager, and creates a more manageable span of control. A structure change should improve the frequency and quality communication, ability to streamline, innovate, and identify and solve problems faster by grouping similar operations together. Right Sizing Operations: Offices v. Divisions v. Departments As mentioned earlier, the town currently has many high-level positions that supervise a small number of people, in some cases no people. To make best use of the town’s resources similar services should be grouped under the same operational umbrella. Director level positions, often classified as a department head, should have a larger number of personnel under their overall supervision. While there are no hard rules on this, the number should at least near 10 on the lower end for an organization our size, but in most cases be larger than this. Under the proposed re-org the five directors would have approximately the following number of FTE’s under their responsibility: police chief (31), utilities director (31), community services (18), administrative services (13), and finance (9.65). For context, the table below shows the size of the division leads with the largest number of personnel, as well as the smaller divisions, even after adjustments under the proposed re-organization. These are all critical positions due to the 4 technical expertise and responsibility of duties. Even though they manage smaller numbers of employees they are still appropriately classed at the manager or officer level. Division leads with the largest numbers of personnel: Division leads, after reorganization, with smallest numbers of personnel: • Utility system supervisor (14) • Police patrol lieutenants (10 each) • Public works manager (8.5) • Water plant superintendent (7) • Wastewater plant superintendent (6) • Planning manager (4.5) • Police investigations lieutenant (4) • HR manager (3) • Fleet Supervisor (3) • PIO (3) • Police administration lieutenant (3) • Public space manager (3) • Budget director/IT (2) • Stormwater & Environmental Services Manager (2) 5 Proposed Positions Reclassified or Requiring Re-evaluation of Job Description/Classification This is due to being assigned greater responsibility enabling the elimination of other positions and/or taking on additional duties. Current Position Reclassified Comments Public Works Supervisor Public Works Manager 14 years of service with the town, many as a supervisor or lead. Has effectively served as the interim for six months. Prepared for the transition by former director for 1+ years. Economic Development Planner Planning & Economic Development Manager 5 ½ years with the town, prior experience in the Morrisville and Raleigh planning departments. Has already taken on being the primary point of contact for development inquires of all scales. Shared office with Margaret for about 3 years which provided an opportunity to gain significant knowledge and familiarity with the annexation process and the informal history surrounding Collins Ridge and redevelopment of Daniel Boone. Public Space Manager Public Space & Sustainability Manager Served as the town’s lead on sustainability in recent years. Major part of the comprehensive plan focuses on sustainability. Job description and title needs updating to reflect this additional responsibility and town priority. Planning Director/ Assistant Town Manager Assistant Town Mgr./ Community Services Director Reflects broader responsibilities of the expanded department and other boarder duties that have been take on in recent years. Allows more delegation of daily operations to prepare for the transition. She can then focus on accomplishing key tasks before retirement that leverage her expertise. HR Analyst HR Manager Served as interim director since departure of Katherine Cathey in August. Excellent work in terms of quality, quantity, efforts to streamline town practices, and strong familiarity with HR-laws, policies, and functions. HR Technician/ Deputy Town Clerk Town Clerk/HR Technician Served as interim town clerk since August. Completed all requirements for the Certified Municipal Clerk & N.C. Municipal Clerk designations – 147 hours of training. Participating in key training and professional organizations to continue growth and access to key resources. Assistant to the Town Mgr./ Deputy Budget Director Administrative Services Director 7 years with the town. When first hired provided support to HR, PIO, budget, and town manager. Has regularly worked or provided support in all these areas. Strong in general HR management, exceptional with budget & performance mgt. Knows organization, community, and employees. Community Services Department & Succession Planning for Margaret’s Retirement Creating a Community Services Department allows Hillsborough to bundle a variety of small divisions that all provide direct service to the community and limit the number of small departments. Planning and Public Works have regularly functioned as the departments where new initiatives and activities were bundled to “buy time” until a full department was needed. Combining streets, sanitation, stormwater maintenance, and cemetery together sidestepped the need for 4 field-oriented divisions. Land development, economic development, transportation planning, park planning, housing, addressing, GIS, and code enforcement were bundled within Planning until recently. Stormwater and fire inspections have hovered in close proximity to both departments since these functions were brought in house as well. Returning to a contract arrangement with Orange County for fire inspections allows this department to be “right-sized.” We have some thoughts on creating opportunities within public works for staff to specialize and grow, but those should not create formal reorganization needs. The activities of public works, planning, stormwater/environmental services, and public space/sustainability are all now on roughly equal footing in terms of effort and importance. Gathering them in a single department allows the identified division heads to continue to employ their technical skills and experience to the greatest benefit while the assistant town manager provides some of the guidance and organizational support to ensure these operations continue to work well as a team and all head in the same direction supporting one another. These divisions are also 6 linked and interconnected in a way that requires close communication and teamwork. This aspect has improved recently and must continue for the town to be successful. While planning and stormwater both review new development, public works must provide services in new neighborhoods and public spaces are what knit our community together. Keeping all four aspects closely connected and working together is critical for a successful community. Additionally, growing concerns over climate change and our expanding and aging facilities require meaningful attention from the public space division in the from the facilities coordinator. Economic development and tourism. A quick look at the reclassification chart might beg the question of whether the economic development planner position will need to be filled. When this position was created nearly six years ago, there was a significant need to organize the activities of the Tourism board and Tourism Development Authority to ensure these boards responsible for spending tax dollars were well supported. Since that time, processes have been formalized and streamlined, the town has moved to annual contracts with many of our partners and regular pattern of advertising and promotion has been implemented. In the short-term staff expect to manage the remaining work with available resources (especially with the return of the planning technician) or perhaps the need for a part-time person in the future. During the pandemic, development activity has not slowed and if anything has ramped up. Unfreezing the planning technician position allow the planner and senior planner to work on more than basic permitting. This position also provides some needed administrative support to the department, again, allowing the technical experts to apply their knowledge to appropriate work. The planner and planning technician will both be trained on addressing, which a critical role the town plays on to ensure all emergency providers in the county have accurate information. The four-person planning team will work more closely and interchangeably on development review. With the changes at the state level for planning regulation, space must be created to allow planning staff to focus on this new working environment. Identifying a new leader and brining on additional resources is well-timed in this changing environment. New ideas partnered with institutional history will help Hillsborough head in the best direction. Affordable housing and transportation planning are two aspects of general land use planning that the town will have to make some decisions about soon. Our partners in the county and region, all with larger population bases, have at least one and usually more staff specializing in these topics. Staff is not recommending staff expansion for Hillsborough. This difference in available effort is highly challenging and places staff in a difficult position. The two topics are certainly important to the community. However, without significant local resources, it is unlikely the town can influence these topics in any meaningful way. Since our region values collaboration, the town is often asked to actively participate in regional discussions on these topics. That participation takes staff time away from other work. Staff also cannot participate in a meaningful way when the town does not have programs or funding like our neighbors. Stormwater and public space started in the same situation and each has become a division. The two areas have specialized terminology, outside funding sources, and generally require either regular participation or years of marginal participation to be reasonably fluent in the language and landscape. In the short term, staff suggests the assistant manager retains affordable housing and transportation planning responsibility for these topics until a better solution is found. Code enforcement remains a challenging assignment to make. Town Code nuisance provisions straddle land use and public works. Many of the code provisions see no active enforcement by any staff. Violations of the development code are addressed by planning staff. The minimum housing code is a stand-alone document. Planning staff have responded to these complaints over the years. Minimum housing regulations are authorized in the same section of the General Statutes as planning, zoning, and building inspection. This is highly technical field that town staff are not adequately trained to address. Staff have inquired with Orange County to cover this responsibility under our existing inspections agreement. The agreement comes up for renewal in December. The planning director/assistant town manager plans to retire at the end of February 2023. The most effective way to transfer her institutional knowledge is to allow others to take on more responsibility while she remains available 7 for guidance and historical reference. Examples already implemented include: identifying the public space manager as the lead on the future train station development, identifying the economic development planner and public space manager as co-leads on the comprehensive sustainability plan, routing basic inquiries to the planner, and routing development inquires to the economic development planner. These last two were done at the end of February this year via an email to routine contacts in the department and has gone smoothly. The town is rapidly approaching build-out due to both limited utility capacity and the urban services area. We also have initiatives that will provide new perspectives on the town’s future in the coming months (additional utility information and the comprehensive sustainability plan). In the coming years, these with be crucial policy discussions for the town. In preparation, the planning director/assistant town manager plans to work on various projects that might assist these discussions. Some planned projects include GIS analyses that help track land uses at the parcel level, clearer information about our tax base, identifying sources for Hillsborough-specific market information, and building out local datasets. Additionally, creating an accessible electronic archive of development information is necessary to free up space and allow the destruction of paper records. Community Services Department Proposed Organizational Structure 8 Proposed Re-Alignment of Administrative Services-Related Operations Creating an administrative services department was the most common recommendation made by stakeholders, although the composition varied. Many positions in the administrative operations are linked and rely on each other regularly. Examples include: • The interim town clerk also performs HR duties. Most small-town clerks perform other duties as well. • The interim HR director (being filled by the HR analyst) provides support to the safety officer. • PIO office produces meeting minutes via staff and a contractor, responds to public information requests and other queries from the public, helps with public notices, yet the town clerk is involved in these activities, too. • Fleet and safety/risk management regularly interact after accidents involving vehicles/equipment due to insurance filings, claims, and repairs. They also coordinate when new vehicles/equipment are acquired to place them on the town insurance. • Fleet plays a key role in the budget process each year as vehicle and equipment replacements are big expenses. While out of date, in prior years fleet and budget teamed to maintain conditional analysis for every piece of equipment to guide replacement scheduling. Fleet serves all town operations, as do the other related administrative operations, thus it’s like IT from a service provision perspective. • Multiple suggestions were made to put fleet under the community services umbrella or assistant town manager. This would also be a reasonable option. There is a connection with sustainability as the town’s fleet is a significant carbon producer. Currently there are limited options for significant carbon reduction in the fleet. The town regularly purchases the lower end of the power scale to meet needs in the field, hybrid and electric for various vehicle options are currently being considered. The fleet supervisor is aware of and supportive of transitioning to more environmentally friendly vehicles, monitors the applicability of options for town operations. The public space & sustainability manager can easily continue sharing new information and opportunities with fleet located under administrative services. • The budget director served as the IT coordinator before the IT manager position was added in 2020. • The assistant to the town manager/deputy budget director spends most of her time on budget, performance measurement, strategic planning, and the community survey. She’s the budget lead for the Water/Sewer Fund and previously prepared the General Fund. She often assists with personnel, emergency management, and community matters when management level involvement is needed. She’s led the Hillsborough Town Government Academy for the public since it started. Although this has not yet been explored the public information office has expressed interest in taking leadership for this program to expand outreach and build a larger network of residents to share information in the community. Eliminating the high salary grade HR director/town clerk position funds: 1) a more entry level management analyst position providing technical support to all aspects of the department and redundancy for key positions, and 2) the reclassifications of the three staff taking on more responsibility. Back up is a current concern if there is an absence or vacancy beyond a long vacation for all the positions in this department. Placing all administrative related operations in the same department eases communication and coordination, as well as creates opportunities to address gaps and innovate, such as with the overlap of issues with the clerk and PIO. The management analyst will fill gaps to primarily support HR and budget functions but will assist all parts of the administrative operations. To maximize effectiveness of the position and assistance provided to the operations, the administration team can collaborate to identify peak workflows so the management analyst can be assigned to staff 9 during these busy times, whether it’s monthly or annually, to smooth out the load during the busiest times. For example the clerk may need help monthly with the agenda and someone to back-up the position when she’s out, HR (open enrollment, employee surveys, training, awards, back-up payroll processing, monthly support to the safety officer), budget (peak times, be the budget lead for one of the major funds, budget amendments, etc. Having another person (intern or analyst) trained to make posts and review the website would be an asset to the PIO. While it would be great to create new positions, the town is simply not in the position to afford more personnel at this time. The management analyst is a viable option to maximize resources without adding more positions. This is done by assigning more responsibility and reclassifying positions with green highlight in the administrative services org chart below. The town has regularly used graduate interns from Master of Public Administration (MPA) programs (there are five within a 45-minute drive of Hillsborough) over the years, but not on a consistent basis. Prior interns have completed significant projects and took regular responsibilities. This is more likely when they have longer tenures thus gaining greater experience and familiarity with the organization. Some had long tenures, over 1 ½ years or most of their time as a student. If the organizational reorganization is approved, the administrative services department can work on identifying tasks that would provide relief to current staff, free the management analyst to provider even greater assistance to the various divisions, especially HR and budget. MPA and other interns are likely the most affordable and a flexible way to add needed skillsets. Whether to Include Financial Services as part of the Administrative Services Department Multiple suggestions were made in the two re-org related surveys to put administrative and financial services all under one umbrella. This was seriously considered as there is a lot of interaction between finance (accounting & billing), budget, HR, payroll, risk management (the insurance and fixed asset connections), surplus property (fleet disposal responsibilities and finance fixed asset records). Combining these operations would bring total staff to almost 23. Combining this range of services under one grouping could justify putting all this under an assistant manager or department head/assistant manager. This is an option going forward, but the manager feels is likely too 10 much change at this time and the operations are connected closely enough to keep it as one department. Especially as we’re in the process of hiring a new finance director. As with all other departments, financial services are also stretched, and the new director will need time to work with the staff and assess options to address this challenge. Quite a few suggestions were made to either put finance under budget or vice versa. If budget was moved under the finance director, it would likely require hiring one (1.0) additional FTE due to the assistant to the town manager/deputy budget director’s role in the proposed re-organization (described below) as it requires less staffing and provides more back-up to several key positions. In addition to the cost savings, it’s important to remember the town manager is the budget officer by statute. Most key decisions and implementation of top board priorities involve the budget, three-year financial plan, CIP, and strategic plan. Therefore, directions and decisions are made weekly due departmental mid-year adjustments, redirection of resources resulting in budget amendments and other changes that emerge unexpectedly. Due to so much interaction and decision-making taking place throughout the year, further distancing the manager from budget staff does not seem efficient. This could change in the future depending on conditions and personnel. Also factoring into the decision, nothing is more important nor more sensitive than how the public’s tax and rate dollars are handled, safeguarded, recorded, reported, and managed. If/when issues arise regarding anything related to internal controls, overall financial condition of the various funds, or anything about the integrity of the person in that position, having the finance director reporting directly to the town manager is advantageous. If finance does not report to the manager, it should report to an assistant manager. Further Consideration • Public works. With the public works supervisor taking on additional duties to become the public works manager, yet still maintaining many prior responsibilities, will necessitate some new job descriptions in the department to allow for existing employees to take on more responsibility. These changes have not yet been determined but would be brought back to the board for consideration, along with the other proposed changes. All require position assessments and market analysis to ascertain if new pay ranges are required to match the updated job descriptions. The eliminated public works director duties are partially being absorbed by the new public works manager and reclassed assistant town manager/community services director. Public works has requested an additional equipment operator (1.0 FTE) for FY23 that will require serious consideration, especially with the new homes in Collins Ridge likely adding the equivalent of a full route or day of solid waste collection. • Margaret Hauth’s retirement. The reclassification of the economic developer planner to planning manager, thereby supervising this operation, and doing so more than 1 ½ years before the current director’s retirement, and starting to delegate other key responsibilities to staff goes a long way towards preparing for this transition. Still, this does not completely fill the void and responsibilities currently handled. Ideally, the replacement for her updated position will take place before she leaves to aid in that part of the transition as well, since she wears so many “hats” in the organization. When starting recruitment to fill this position, the organization can assess whether this position would continue with the current duties/title, change to community services director only, or consider other unknow options given the circumstances at that time. Margaret has increasingly taken on greater responsibility during her 30 years with the town, regularly serves as acting town manager, and thus this additional responsibility is currently appropriate. It may or may not be best to have the assistant town manager duties included as part of the director’s job description at that time due to a variety of factors that can’t be answered today. This will likely be evaluated in the fall of 2022 with organization-wide input. • Emergency Management. The fire department is usually the lead for emergency management in small to medium sized cities, large cities have stand-alone emergency management departments. ORFD is a separate organization run by the Orange Rural Fire Board whose service area is 64 square miles. While there is strong 11 cooperation and coordination with ORFD, the town still needs to manage most events it encounters. Hillsborough has been able to manage the small to medium scale weather and other events encounter over the past 20+ years. We are overdue for a major event, especially with weather events increasing in frequency and severity. Thus, work is needed on enhancing organization-wide capabilities. Chief Hampton has mentioned an HPD command staff person could become the coordinator for town emergency management functions as this could align with other priorities he’s working on in the department. This concept is worth exploring since the current system needs to be updated and made more sustainable by creating better systems, coordination, periodic drills/training, and become less reliant on certain people. The town manager has regularly served as the incident commander for major events over the past 23 years, but it is hard to find the time needed to take the town’s preparations and systems to the next level, so this is another opportunity for succession planning. • Budget staff overload. On the surface it appears like budget is staffed by 2.0 FTE’s - that does not paint an accurate picture. Prior to hiring the IT manager about three-quarters of the budget director’s time was spent on IT. The IT manager has lessened that load significantly, but a sizeable portion of the budget director’s time is still spent on IT. The assistant to the town manager/deputy budget director also leads or is heavily involved with the following responsibilities: strategic plan, assistance with HR/personnel matters, citizen’s academy, updating the town’s emergency response plans, bi-annual community surveys, and committee assignments (e.g., GARE – both county and Hillsborough racial equity efforts, Family Success Alliance, Food Council, and the county data collaborative). The budget staff seems to be in a perpetual state of just trying to get through the next task or crisis, but each year brings a new set of challenges. Both staff members work significant hours year-round, regularly working nights, late nights, weekends, and holidays – this is NOT sustainable and has been going on for many years now. The temporary part-time budget technician position was eliminated last year due to COVID. The town’s finances have become increasingly complex over the years with budget staff continually playing a larger role. The finance department policy change to require purchase orders for all purchases, even 2 cents, in an attempt to comply with the controversial and highly inefficient LGC guideline has magnified the demand and volume of budget amendments and need to respond quickly to departments and finance. Efforts are underway to find better ways to manage this in terms of policy and ERP system update. The turnover in Finance in recent years and continually changing and more restrictive policies that require more immediate, real-time responses. There is little time to work on ways to streamline, improve efficiency, performance detailed analyses, justifications, and proof work to the level that is needed. Staff hopes the new software will assist with some of this, but this challenge seems to be bigger than any efficiencies we anticipate gaining. No other document or plan in the town gets more regular scrutiny than the budget. Thus, its vital sufficient resources are provided to create a high-quality and usable document, ensure staff redundancy, minimize mistakes, seek opportunities to stretch funds, and allow for adequate analysis without making staff work excessive hours for years. Management Team Composition With ten people regularly attending the management team/agenda meetings often take longer than necessary. It’s harder to have productive discussions with so many participants. To better use available time and limit energy spent on lower priority items, the management team has spent less time on updates and more deliberating key policy issues the last two years. The manager feels strongly that the number of members on the team needs to be reduced. Adding more members pushes the function of this group in the wrong direction. Four options are identified below: • Option A. The proposed reorganization accomplishes this decreasing the number from 10 to 8. this. The five director positions would be members of the team: community services, police, utilities, finance, and administration. The PIO and budget director (who would operate at a division level in the re-org) would remain 12 due to 1) their long tenures with the town and on the management team (about 15 years each), 2) existing relationships/chemistry with current team members, 3) the PIO is involved in many aspects of each department and ALL emergency/high priority situations, and 4) budget impacts all operations year round. As key issues arise, any town employee can be brought in to participate in management team discussions and updates. Recent updates on the comprehensive plan and branding initiative are two examples of key staff (economic development planner and public space manager) updating and engaging with the management team. • Option B. Reduce the management team to six: the five department directors plus the town manager. As referenced above, key staff can be brought in to attend the monthly meetings as needed, such as when key topics are discussed, critical issue updates, and/or broader participation is needed on a topic. • Option C. Second circle of organizational leadership meetings. There is a need to involve and enhance communication with other key division level staff on organization wise issues as well. During the early stages of the pandemic the Management Team Plus group was formed. This included all management team members, plus many division heads, and other key staff. If key issues arise the Management Team Plus or whatever the expanded leadership group (Mgt Team+) can always be called together for a meeting. There could be regularly scheduled meetings a few times per year if clear purposes, benefits, and a structure can be identified. • Option D. A combination of the above or other ideas that may emerge from further input and discussion. Again, this is a draft and requires additional input from staff and affected operations to further refine the proposal. The manager is open to alternative suggestions to address gaps, concerns, questions, as well as find more effective ways to structure the organization.