Minutes 02-17-2025-Joint Meeting w Hillsborough

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13 2. History and Status of Contracted Services (Permitting, Fire Marshal,Tax Collection) The Town of Hillsborough (Town) and Orange County (County) have historically worked together in a number of service areas to provide cooperative services to residents of the Town. By contracting with the Town to provide certain services, the County is able to take advantage of certain economies of scale to deliver the services at an overall lower cost to residents. The purpose of this item is to remind both boards of the various contractual arrangements between the Town and County, raise awareness of future renewal timelines, and provide a forum to discuss the sufficiency of current contracts and other options for future collaboration. The attached "Matrix of Town/County Agreements" includes a summary of the existing agreements and copies of the current agreements associated with: Fire Marshal services, Animal Control, Stormwater Fee billing & collections, Building Permits & Inspections, Solid Waste & Recycling and Erosion Control. In addition to those agreements, the County has long provided property tax billing and collection services on behalf of the Town. Finally, in 2022 the Town repealed its Minimum Housing Code and authorized Orange County to enforce the County's minimum housing standards within Town limits, but there is no specific contract for those services. North Carolina General Statute (NCGS) 160D-202(f)allows for the County to perform this service upon the request of the Town, so no formal agreement may be required. The Boards can discuss issues related to this item as necessary, and staff will be available at the meeting. Matt Efird,Assistant Town Manager, reviewed the following chart: Town of Hillsborough-Orange County Contracted Services Samicn Prawded ETtectiue Date Current Term End 0.emaininp 0.en ewala Cmm -naatinn Fire Marsha15ervices 7/1/2021 6/30/2026 35-year terms remaining $89,200 plus cc unty retention of tees i-$20,000) Ammsl Control 7/112024 513012025 An nual-..el $85,272 Stormwater Fee Billing&Collection 7/1/2016 6I3012026 'Upon written agreement ofthe Parties" 3%of collections-$22,506 in FY24 Builtlin Permits&Inspections 5/512015 1213112026 15-year term remainingExtended 12131116 and 12/31121 County retains permit tees Eros ion Control 10fV2012 i Until"town petitions,,Jer its own"Local Program"" County retains permit tees Minimum Heusing Code V1012022 NIA NIA N!A-no written agree ent ad.pted Solid Waste&Recycling 1230/2018 NfA In effect until terminated by written agreement County retains Solid Waste Programs Fee,Town pays tipping tee for landfill use Matt Efird said that the town repealed its Minimum Housing Code in 2022 with the thought that Orange County would take over that service. He said there has not been any formal agreement between the town and county to do so. He said that the authorization is in state statute for the county to take over the service, so now administration needs to work out how those services will be provided. He said that the town has a code enforcement contractor, and some elements of minimum housing code will be introduced to town board to consider for enforcement. Mayor Bell asked about fees that may need to increase depending on the scope of the services. He asked if those fees are reviewed annually. He asked how potential changes to scope are handled. Matt Efird said the cost varies by contract but the one that has the most cost to the town is the fire marshal service. He said there is a provision in the agreement for an annual review of the cost. He said there is an ongoing check on cost escalation, and they know what to expect. He said fees are the other way the county recovers costs. He said the county sets fees for the services that they administer. He said that the county recovers the cost of those services. He said each contract allows for review and adjustment. Kathleen Ferguson asked for clarification on non-recurring vehicle expenses. Matt Efird said part of it was start up costs, but after those one-time costs they were putting away funds each year so there was not another huge bump in the contract.