MEMORANDUM

TO:	Roger L. Stancil,  Town Manager
FROM:	Kenneth C. Pennoyer, Director of Business Management Brian Curran, Chief of Police Karen Rose, Human Services Coordinator
SUBJECT:	Human Services Agencies application process
DATE:	October 15, 2008 REISSUED:  October 27, 2008

PURPOSE

The purpose of this memorandum is to provide a recommendation for consolidation of the outside agency performance agreement application process conducted during the annual budget process.

BACKGROUND AND DISCUSSION

There are two procedures through which the Town of Chapel Hill determines the need for establishing performance agreements with outside agencies.  There is a formal procedure for human service agencies administered by the Human Services Advisory Board (HSAB) through a needs identification, annual application, review and allocation process and an informal process of requests made directly to the Town Council. For the current fiscal year the HSAB recommended performance agreements with 39 human service agencies representing a total of $250,000 in allocations.  In addition, the Town also established performance agreements with 13 human services, arts, affordable housing and economic development agencies that did not participate in a formal application process.  The dollar amount of these agreements totaled $562,500. 

At the April 28, 2008 Council meeting, the HSAB, at the request of the Council, provided a report on the process for reviewing requests from outside agencies.  Specifically, the Council sought input on agencies that approach the Council directly for support and those that do not fit the criteria of human services.

 The Human Services Advisory Board recommended that all requests for human service performance agreements go through the Board’s application process.  In addition, the Board requested that for human service agencies that have performance agreements that did not go through the HSAB process, that those funds be added to the pool of funds available to the HSAB for performance agreements.

With respect to outside agencies that do not fit the human service criteria, the Board recognized the importance of these agencies and the value of using a standard application process, but they also recognized that this would require an expansion of the Board’s authority.  There is concern that expanding the Board’s scope beyond their current charge to include the review of non-human service agency organizations would require specific direction from the Council concerning funding priorities and evaluation criteria for specific types of agencies and that this additional responsibility may require additional resources.  Alternatively, it was suggested that a common application process be used and non-human service agency applications be referred to the appropriate advisory board for evaluation and recommendations.   

The Town of Chapel Hill, the Town of Carrboro and Orange County government coordinate the application process for nonprofit agencies seeking to enter performance agreements with each respective government.  The three governments use a common application form, require the same attachments and coordinate the deadline for submission. Staff and human service board chairs from the three governments hold a joint annual meeting with nonprofit agencies at the beginning of the budget cycle.  The purpose of the meeting is to distribute information about the application process; share priorities identified by each of the governments for the next fiscal year and discuss expected outcomes. Following submission of applications, each agency attends a hearing to present its proposal and respond to questions. The Chapel Hill and Carrboro Human Services Boards hold joint hearings for the agencies applying to both towns.  Discussions about recommendations for performance agreements are conducted separately from the other governments.

The coordination of the application process with the other governments is valuable and should be continued. The application process has evolved and improved through the years and provides a system that helps to ensure accountability from the nonprofit agencies. In addition, this coordination allows the governments to share associated costs, information and assists the outside agencies in providing essential services to the residents of our communities.

The HSAB has a tested and proven process for evaluating human service agencies.  The current application process can be easily adapted to other types of agencies seeking Town support to establish performance agreements with the Town.  A common process for outside agency application and evaluation would provide better support for performance agreement decisions and would add structure to the overall process.

The following recommendations are based on the HSAB’s recommendations from their April 28^th memo and subsequent conversations with the Board and staff.

• All outside agencies seeking to establish a performance agreement with the Town should be required to complete an application and submit supplemental information as required for human services agencies including audit or financial statements, tax forms etc.
• The current application form used for human service agencies should be adapted for use by the other outside agencies.
• The scope of the HSAB’s review of applications and recommendations on performance agreements should remain limited to human service related programs only.
• Human service agencies and programs that currently have performance agreements with the Town that were established outside the application process that should be considered by the HSAB include:

Friends of the Chapel Hill Senior Center

Joint Orange/Chatham Community Action Agency

Orange County Senior Center

Orange County Retired Senior Volunteer Program

• The funding for the performance agreements with these four groups should be moved into the human service budget to prevent any agencies from experiencing a sudden reduction in funding.
•  Exceptions to the application process should be identified at the beginning of the application process cycle.
• Applications from outside agencies that do not fit the charge of the HSAB should be forwarded to another Town board or commission for review and recommendations.
• Existing Town boards with related functions should be identified and trained to provide this review.

RECOMMENDATION

Staff recommends that Council direct the Manager to implement the process outlined above, creating a consolidated application process for review of all outside agency performance agreements for the FY2009-10 budget process. 

ATTACHMENTS

1. Memo from HSAB to Council April 28, 2008 (p. 4).