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BOARD OF SUPERVISORS BUSINESS MEETING ACTION ITEM Date of Meeting: July 20, 2017 # 10k SUBJECT: ELECTION DISTRICT: FINANCE/GOVERNMENT OPERATIONS AND ECONOMIC DEVELOPMENT COMMITTEE REPORT: Vehicle Decal Requirement and County Assumption of Billing and Collection of Real and Personal Property Taxes for Incorporated Towns Countywide CRITICAL ACTION DATE: July 20, 2017 STAFF CONTACTS: H. Roger Zurn, Treasurer Robert S. Wertz, Jr., Commissioner of the Revenue Michael Chapman, Sheriff PURPOSE: The purpose of this item is to present the recommendations of the Finance/Government Operations and Economic Development Committee (FGOEDC) and the Treasurer to the Board of Supervisors (Board) regarding County assumption of billing and collection of taxes for five of the County s seven incorporated Towns. RECOMMENDATIONS: Finance/Government Operations and Economic Development Committee (FGOEDC): At the FGOEDC Meeting on July 11, 2017, the FGOEDC recommended (5-0) the Board convert the vehicle decal fee to a $25 vehicle license fee requirement effective July 1, 2018, and to instruct the Commissioner of the Revenue and County staff to bring forward a plan to continue enforcement of vehicle registration and personal property tax collection. The FGOEDC recommended (5-0) that the Board instruct staff and the Treasurer to negotiate a Memorandum of Understanding (MOU) between the incorporated Towns and the Treasurer to allow billing, collection and administration of Town real and personal property taxes as outlined in the July 11, 2017, FGOEDC Action Item, to include reimbursement to the County in the amount of its cost to operate the program. The FGOEDC further recommends to the Board to add a request for enabling legislation allowing billing, collection and administration of taxes on behalf of incorporated Towns to its legislative agenda. The FGOEDC further recommends the Board direct staff to plan to include 1.00 FTE for a Financial Control Specialist in the FY 2019 Budget and 1.00 FTE for a Collections Specialist in the FY 2020 Budget for the Office of the

Item 10k, FGOEDC Report: Vehicle Decal Requirement and County Assumption of Billing and Collection for Incorporated Towns Board of Supervisors Business Meeting July 20, 2017 Page 2 Treasurer contingent to enabling legislation and agreement of a MOU between the County and the incorporated Towns. The FGOEDC further recommended the Board authorize the expenditure of $220,000 and appropriate $120,000 of Fund Balance with $100,000 to be reimbursed by the participating Towns and that the remaining $100,000 in the PCI Capital Project be reallocated for this purpose. Treasurer: The Treasurer recommends that the County begin providing billing and collection for some incorporated towns effective tax year 2019 for real property and tax year 2020 for personal property and vehicle license fees. As part of the assumption of these responsibilities the Treasurer also recommends that the Board eliminate the vehicle decal requirement as well as increase the vehicle license fee to $30 effective July 1, 2018 (Fiscal Year 2019). BACKGROUND: On June 22, 2017, at the Board s Business Meeting, the Treasurer and the Commissioner of the Revenue presented a proposal to provide billing and collection for the incorporated towns. After discussion of the proposal, the Board voted (9-0) to send this proposal to the FGOEDC. The Loudoun County Treasurer and Commissioner of the Revenue are considering assuming responsibility for billing, collection, and administration of personal property and real property taxes for five of the seven incorporated Towns in the County as a service for taxpayers. Those five towns include: Leesburg, Lovettsville, Hillsboro, Middleburg, and Round Hill. The Towns of Hamilton and Purcellville have indicated they do not want to participate at this time. Assuming this responsibility provides a way for residents to receive one bill that incorporates both County and Town taxes. Currently, Town residents receive a tax bill from the County and from their respective towns with differing due dates and payment methodologies. The Commissioner of the Revenue currently assesses both real estate and personal property located within the Towns and provides a file for each town to download into their respective tax systems. This proposal would eliminate the need to send these files and the need to provide updates when real or personal property is bought or sold. This should improve the administration of assessments by potentially reducing errors and duplication. The Treasurer s Office currently bills all citizens for County real and personal property taxes. Under this proposal, the Treasurer will include the Towns taxes as an additional line item on the bill, with each line reflecting the proper tax and amounts corresponding to the respective jurisdiction. A single payment for all amounts billed would be made to the Treasurer of Loudoun County. The Treasurer will process these payments, properly account for and reconcile all monies, and then, on a monthly basis, remit the appropriate proceeds to each Town. If collection activities become necessary, the County Treasurer will undertake action to collect just as is done for taxes owed to the County. It is anticipated that this proposal will be implemented in two stages, with real property billing and administration beginning January 1, 2019, and personal property billing beginning January 1, 2020.

Item 10k, FGOEDC Report: Vehicle Decal Requirement and County Assumption of Billing and Collection for Incorporated Towns Board of Supervisors Business Meeting July 20, 2017 Page 3 As part of this proposal, the Treasurer believes that the administration of the Motor Vehicle License (decal) would not be feasible nor technically possible utilizing the current tax system and recommends eliminating the decal and its enforcement program, known as Project Fairness. At the Board Business Meeting on January 3, 2017, the Board directed (8-0-1: Saines absent) County staff to work with the Treasurer and the Sheriff to research the vehicle decal program and related enforcement and revenue issues. This analysis was contained in Item 7 on the July 11, 2017, agenda of the Finance/Government Operations and Economic Development Committee and is referenced in this item. ISSUES: There are several issues associated with the proposal for the Board to consider, including necessary legislative action, new costs, and new revenue to the County. Legislative Issues: Enabling legislation must be obtained from the General Assembly to allow the County to collect real and personal property taxes of the Towns and for the County to be compensated for the service. Consolidated billing and collection of vehicle license fees are allowed by the current Code of Virginia. 1 While waiting for enabling legislation, and in order to be able to start centralized billing and collection in 2019, Memorandums of Understanding will need to be negotiated and executed between the Towns and the Treasurer setting forth the terms and conditions of the billing and collection process, including payment to the County of set-up costs and compensation for the service, timing of remittance of revenue collected, and mechanisms for proper accounting of such funds, among others. Assuming enabling legislation is passed, all participating Towns must enact an ordinance or resolution granting the Treasurer authority to bill and collect real and personal property taxes owed to the Towns. Also, to enable centralized billing and collection, each participating Town will need to amend its tax related ordinances and business processes, as necessary, to align them with County tax ordinances and practices. Assuming enabling legislation is enacted, the Board will need to adopt a resolution and enact ordinances to allow the Treasurer to collect real and personal property taxes and vehicle license fees for the Towns. Anticipated New Revenue: To offset the cost assumed by the Treasurer s Office to provide this service to the Towns and their taxpayers, the Treasurer proposes that there be a 1.15 percent fee deducted from all funds collected by the Office on behalf of the Towns to cover the full costs of operating the program, as recommended by the FGOEDC at its July 11 meeting. The Office 1 The County would need to seek as part of its legislative agenda an amendment to Va. Code 58.1-3910 as the enabling legislation that will give authority to the County Treasurer to enter into agreements with the towns located within the County for the collection of real and personal property taxes owed to the respective towns by the County Treasurer.

Item 10k, FGOEDC Report: Vehicle Decal Requirement and County Assumption of Billing and Collection for Incorporated Towns Board of Supervisors Business Meeting July 20, 2017 Page 4 projects that this revenue, based on the five towns that have indicated interest, would be approximately $206,000 per year based on the Town s budget documents. Anticipated New One-time and Recurring Costs: There are several costs to consider in evaluating this proposal, including staffing costs, operating and maintenance costs, and costs associated with reprogramming the County s tax assessment and billing system (PCI). The Treasurer proposes that the County contribute 50 percent and the Towns each contribute a prorated share of the remaining 50 percent for programming changes to PCI. The estimated total cost for system programming is $200,000 based on preliminary discussions with the vendor; however, the actual cost may be less. The County s contribution should not exceed $100,000. One-time Program (Implementation) Costs Item One-time Cost PCI Programming $200,000 Town Contributions for System Programming $(100,000) Total One-time Cost to County $100,000 Workload increases in the Office are anticipated to include Town tax billings on 17,013 real estate parcels and 49,973 new personal property accounts, billed twice per year. This additional workload will result in the need for two additional positions (2.00 FTE). The anticipated costs, including the addition of a financial control specialist and a collection specialist, are shown below: Recurring Program Costs Item Annual Cost Fiscal Year Financial Control Specialist (1.00 FTE) $94,000 2019 Collection Specialist (1.00 FTE) $67,00 2020 Operating and Maintenance Lockbox and banking fee increases Postage increases Audit $45,200 2019 Total Annual Recurring Costs $206,200 Total Anticipated New Revenue $206,200 Net Impact to Local Tax Funding $0 Elimination of the County Motor Vehicle Decal Program and Project Fairness: As part of the administration of the County and Town process, the Treasurer believes that the administration of the Motor Vehicle License (decal) would not be feasible or technically possible utilizing the current tax system. As such, the Treasurer recommends that the County eliminate the requirement to obtain and display motor vehicle decals effective July 1, 2018. The enforcement of vehicle decals is known as Project Fairness and is staffed by two deputies in the Sheriff s Office (2.24 FTE) and an administrative position in the Treasurer s Office (1.00

Item 10k, FGOEDC Report: Vehicle Decal Requirement and County Assumption of Billing and Collection for Incorporated Towns Board of Supervisors Business Meeting July 20, 2017 Page 5 FTE). The salaries of the two Sheriff s deputies are funded through personal property tax associated with Project Fairness enforcement actions, while the Treasurer s position is funded through general revenue. While the Department of Management and Budget s analysis projects a slight drop off in personal property collections for new vehicles coming into the County, there is sufficient general revenue to support the salaries of those deputy positions. Further, it should be understood that Project Fairness revenue is essentially general revenue as it represents primarily property tax revenue that would have been otherwise uncollected. Should the vehicle decal and Project Fairness be eliminated in FY 2019, the Board has a few options with what to do with the 3.24 FTE in the Treasurer s Office and the Sheriff s Office; all three positions are filled. The positions themselves could be reassigned to other programs within both Offices. If reassigned, the administrative position in the Treasurer s Office would be used to absorb additional workload related to the support of Town billing and collections and to continue to support the Office s ticketing functions. If reassigned, the Sheriff has indicated the positions, which are sworn personnel, would be reallocated to the Crisis Intervention Team Assessment Center (CITAC) should the decal requirement be eliminated. The LCSO provides deputy coverage at the CITAC; beginning in FY 2018, this coverage will be provided through use of overtime staffing. Redeployment of two deputies to the CITAC will add consistency to this coverage; having staff assigned to the CITAC will also reduce the use of overtime to staff the CITAC beginning in FY 2019. The deputy positions could also be reassigned to the Executive Detail to bolster security at the Government Center and the Shenandoah Building. Should the Board move forward with eliminating the decal program after FY 2018, it should be pointed out that Project Fairness, which is an enforcement mechanism for the decals, does not need to stay in place. If the Board eliminates vehicle decals, the Board could decide to maintain Project Fairness through the end of FY 2018 or to end the program prior to June 30, 2018, and reallocate those positions at the time the program is ended. The Treasurer is recommending the Project Fairness remain in place through the end of FY 2018. During its discussion of enforcement mechanisms on July 11, 2017, the FGOEDC requested the Commissioner of the Revenue and staff return with options to continue enforcement of vehicle registration and personal property tax payment. The Sheriff s Office indicated that its deputies would support Project Fairness until other enforcement mechanisms are identified. During the Board s discussion on June 22, 2017, it was suggested that rather than reassigning the two deputy positions from Project Fairness to a different program, the employees of those positions could be used to address vacant positions in the Sheriff s Office. Staff is interpreting this suggestion as an intention to eliminate these two deputy positions from the Sheriff s budget. All positions within the Sheriff s Office are allocated to a specific division, such as Patrol, Court Security, Criminal Investigations Division, Adult Detention Center, Executive Detail, School Resource Officers, or Project Fairness; this is true regardless of whether or not the position is filled or vacant. Should Project Fairness be discontinued as a program, then the Board will need to either accept the recommendation of the Sheriff to move these two positions to another

Item 10k, FGOEDC Report: Vehicle Decal Requirement and County Assumption of Billing and Collection for Incorporated Towns Board of Supervisors Business Meeting July 20, 2017 Page 6 program, such as CITAC, Patrol, the Executive Detail, etc., or eliminate the positions. Should the Board decide not to reassign the deputy positions, then the Reduction In Force (RIF) process will be triggered since the positions are currently filled. This means that the two deputies will receive RIF notices and will be afforded the rights and opportunities that the RIF process provides, one of which could be assignment into a vacant position. Other options include placement in other departments in different positions the employee(s) may be qualified for, or a release from employment with a limited severance payment essentially equal to about two (2) months of pay (See Attachment 1, Reduction in Force Policy). Elimination of Motor Vehicle Decals, Potential Revenue Impacts: Estimating the impact of the elimination of vehicle decals is difficult due to the lack of specific data regarding vehicle personal property collection rates. Anecdotal evidence from comparator jurisdictions suggests that the County would experience a one to two year lag in collecting tax revenue from vehicles that would have otherwise been discovered by Project Fairness. This lag is estimated to be between $2 and $5 million in personal property tax revenue over the first two years. Based on the reported experience of several other large jurisdictions that have eliminated the decal requirement, staff anticipates that the associated revenue risk is likely in the low end of this range. Further details of staff s analysis can be found in Item 7. The Board has the option to increase the license fee from $25 to $30 to recover potential revenue losses associated with the elimination of the motor vehicle decal. Changing the license fee from $25 to $30 for cars and trucks would generate an estimated $1.5 million in additional revenue beyond the anticipated $7.4 million the County would collect in FY 2019 under the current program structure. There is potential for the County to incur up to $20,000 in one-time reprogramming costs if adjustments are made to the license fee and if the County administers the fees for incorporated Towns. FISCAL IMPACT: The net ongoing fiscal impact of assuming responsibility for Town billing and real and personal property tax administration is estimated to be partially offset by contributions from the Towns of 1.15 percent of the total tax bill collected. This estimation assumes that five of the seven incorporated Towns participate in the program. There are one-time technology costs associated with implementing this program that includes $200,000 in PCI reprogramming costs to accommodate Town billing. The County would contribute $100,000, which is currently available within the PCI project budget. The Towns would contribute the additional $100,000 proportionately. Should the proposed positions be added to the Treasurer s Office in FY 2019 and FY 2020, recurring revenue from the Towns will cover the cost to operate the program. Should Project Fairness be eliminated and the three positions associated with this program maintained, the costs can be absorbed by general revenue in the General Fund.

Item 10k, FGOEDC Report: Vehicle Decal Requirement and County Assumption of Billing and Collection for Incorporated Towns Board of Supervisors Business Meeting July 20, 2017 Page 7 One-time technology costs associated with implementing the decal change includes $20,000 in PCI reprogramming costs. Staff believes the impact to revenue from the elimination of motor vehicle decals may be approximately $2 million over the first two years. The fiscal impact of increasing the license fee from $25 to $30 is an estimated additional $1.5 million in additional revenue. ALTERNATIVES: 1. Do not allow Treasurer to assume billing and collection of real and personal property taxes and motor vehicle license fees for the Towns; maintain the Decal program and Project Fairness within the County; and maintain the $25 vehicle license fee for cars and trucks in the County. 2. Allow the Treasurer to assume billing and collection of real and personal property taxes and motor vehicle license fees for the Towns; maintain the Decal program through the end of FY 2018; and eliminate Project Fairness at a date to be determined. DRAFT MOTIONS: 1. I move the recommendation of the Finance/Government Operations and Economic Development that the Board of Supervisors convert the vehicle decal fee to a $25 vehicle license fee requirement effective July 1, 2018 and to instruct Commissioner of the Revenue and County staff to bring forward a plan to continue enforcement. I further move the recommendation of the Finance/Government Operations and Economic Development that the Board of Supervisors instruct staff and the Treasurer to negotiate a Memorandum of Understanding (MOU) between the incorporated Towns and the Treasurer to allow billing, collection and administration of Town real and personal property taxes as outlined in the July 20, 2017 Board of Supervisors Business Meeting Action Item, to include reimbursement to the County in the amount of its cost to operate the program. I further move the recommendation of the Finance/Government Operations and Economic Development that the Board of Supervisors add a request for enabling legislation allowing billing, collection and administration of taxes on behalf of incorporated Towns to its legislative agenda. I further move the recommendation of the Finance/Government Operations and Economic Development that the Board of Supervisors direct staff to plan to include 1.00 FTE for a Financial Control Specialist in the FY 2019 Budget and 1.00 FTE for a Collections Specialist in the FY 2020 Budget for the Office of the Treasurer contingent to enabling legislation and agreement of a Memorandum of Understanding between the County and the incorporated Towns.

Item 10k, FGOEDC Report: Vehicle Decal Requirement and County Assumption of Billing and Collection for Incorporated Towns Board of Supervisors Business Meeting July 20, 2017 Page 8 OR I further move the recommendation of the Finance/Government Operations and Economic Development that the Board of Supervisors authorize the expenditure of $220,000 and appropriate $120,000 of Fund Balance with $100,000 to be reimbursed by the participating Towns and that the remaining $100,000 in the PCI Capital Project be reallocated for this purpose. 2. I move an alternate motion. ATTACHMENT: 1. HR Policy Handbook, 9.3 Reduction In Force

Chapter 9: Non-Disciplinary Separations Chapter approved by BOS: December 20, 1995 Page 5 9.3 REDUCTION IN FORCE * 9.3.01 General Requirements (A) (B) (C) (D) (E) A reduction in force is initiated by either Board of Supervisors' direction or County Administrator recommendation to the Board of Supervisors that a reduction in force may be necessary due to adverse economic conditions, workload factors, reductions in services, or department reorganizations in which responsibility, duties and/or lines of authority are changed for more effective operation. A reduction in force will be limited, as determined by the County Administrator. Departments with personnel administered under these regulations may be required to provide input concerning a reduction in force. Such input may include descriptions of programs, functions and/or positions anticipated to be affected by a reduction in force, impact on services, assistance with development of implementation recommendations, or other needed information. The Code of Virginia preserves as a non-grievable management prerogative the right to manage the affairs and operations of government to include retention of employees. The following factors may also be considered during implementation of a reduction in force: (1) The best interests of the County in terms of maintaining essential services and programs and minimizing a reduction of effectiveness and efficiency; (2) Appropriate alternatives to reduction in force, such as: reduction in employee work hours, reduction of and/or a combining of services and/or positions, reassignment of employees and a reorganization of functions and positions within or among departments; 9.3.02 Identification of Affected Positions The Board of Supervisors and/or County Administrator must identify programs, functions and/or positions to be reduced. Department Heads may be requested to participate in recommendations regarding the identification of programs, functions and/or positions to be reduced. * Revised December 2, 2008 ATTACHMENT 1

Chapter 9: Non-Disciplinary Separations Chapter approved by BOS: December 20, 1995 Page 6 9.3.03 Identification of Affected Positions with Multiple Incumbents Identification of employees who may be affected by a reduction in force is based on retention priority, which is reflected in a document termed the employee retention register. The employee retention register is developed by Human Resources in consultation with departments. Employees are separated by retention priority (those with the lowest priority or number of retention points are separated first) until the workforce by department/division/section/position/working title as appropriate is reduced to the number of positions required as directed by the Board of Supervisors. Under no circumstances will persons affected by a reduction in force or a reduction in hours be determined on a voluntary basis. Employees assigned to another classification on an acting basis, though temporary in nature, must be identified by their regular/probationary position classification. Whole positions may be eliminated or hours may be reduced based on recommendation from the Department Head to the County Administrator, whose decision is final. Employees whose hours are to be reduced are also affected by retention priority described herein. Calculating Retention Points for Affected Positions with Multiple Incumbents (A) Working Title or job function, (upon request of the department, if necessary to further distinguish intended positions of the service being reduced); (1) Vacant positions must be eliminated by department/division/section/position/working title as appropriate before probationary or regular employees in the same identified position, section, division and department are separated. (2) Temporary positions with Multiple Incumbents must be separated first. Temporary employees are separated in order of priority of need as determined by the Department Head and are separated under the provisions of Chapter 10.5. (3) Regular positions with Probationary Employees must be separated next (before any regular employees, including those whose hours are being reduced). Length of service determines the order of separation of probationary employees, i.e. longer length of service holds higher retention priority. Probationary employees are separated under the provisions of Chapter 10.6. (4) Regular positions with Non-Probationary Incumbents are separated last, including those whose hours are being reduced. The order of separation of regular employees is based on retention points (higher points having higher retention priority).

Chapter 9: Non-Disciplinary Separations Chapter approved by BOS: December 20, 1995 Page 7 (B) Retention points are calculated, to a fixed date determined by the County Administrator, for regular employees using the following formula: (1) Each full month (i.e. Jan. 1- Jan. 31) of County service as a regular employee equals one retention point. Former service as a regular employee is counted only if the break in service is 26 weeks or less. Service is counted equally for full-time and part-time employees. Any length of leave time (with or without pay), is counted toward retention points. Probationary service is included when calculating retention points. Previous documented service with another employer shall be included if the employer subsequently became absorbed into the County system. (2) Each full month of full-time previous temporary service equals one retention point. (3) The County has provided procedures for the removal of employees for unsatisfactory performance and for disciplinary reasons; therefore, it will be assumed that all employees, unless otherwise noted, are serving in a satisfactory manner. If two or more regular employees in an affected position with multiple incumbents have the same number of retention points, priority on the retention register is determined by: (a) (b) (c) Length of regular County service shall determine priority, with longest County service having highest priority. If there is a tie in the length of regular County service, the tie is broken by length of regular service in current position, with longest service in current position having highest priority. If there is a tie in the length of service in position, the Department Head must determine the priority order, based on the Department Head's assessment of each employee s overall performance, to include review of employee s personnel files, performance levels, and assessment scores. If the Department Head is unable to resolve the matter, the final determination must be made by the County Administrator.

Chapter 9: Non-Disciplinary Separations Chapter approved by BOS: December 20, 1995 Page 8 9.3.04 Exemption from Retention Priority for Positions with Multiple Incumbents (A) (B) When it is determined that there is a revenue shortfall in a fee-offset childcare program provided at a specific location, (i.e. Preschool, CASA, YAS), the Department Head may request the retention priority be based on the specific program and location first, then further identified by the methods in section 9.3.03 regarding affected positions with multiple incumbents. 2 A Department Head may determine that an employee who holds a regular position with multiple incumbents is essential to the efficient operation of the agency in which he/she is employed because of special skills, knowledge or abilities. The Department Head may wish to retain the employee in preference to an employee with higher retention points. The Department Head shall file a written request with the County Administrator setting forth, in detail, the specific skills, knowledge and abilities possessed by the employee and the reasons why the employee is essential to the effective operation of the agency. If the County Administrator approves the request, the employee may be retained. 9.3.05 Employees in a Leave Status Employees who are on any paid leave (e.g. workers compensation, STD, LTD), Family and Medical Leave, Leave Without Pay or Military Leave are considered active employees and shall be treated as if they were in their positions. If their positions are not being eliminated/hours reduced, they may not be used as placement options for other employees impacted by the reduction in force. 9.3.06 Employee Separation Notice (A) (B) The County Administrator must send an Employee Separation Notice to each regular employee who is affected by the reduction in force. The separation date must provide regular employees with thirty (30) calendar days notice prior to separation. The Employee Separation Notice must be mailed by certified mail to the employee's home address contained in the employee's official personnel file. A second copy shall be hand delivered by the department head to the employee. The Employee Separation Notice must contain: (1) Date and hour separation is effective. (2) Recognition of employee's service to the County. (3) Departure procedures and transition assistance information. 2 Revised January 4, 2011

(4) Status of pay and benefits. (5) Reemployment procedures. Chapter 9: Non-Disciplinary Separations Chapter approved by BOS: December 20, 1995 Page 9 (6) Statement of severance payment. In addition to the thirty (30) calendar day notice prior to separation which includes benefits, regular employees will receive a severance payment equivalent to one (1) months salary (authorized annual salary divided by 12). Benefits are not included as part of the severance payment. Employees are not required to be present at work after receiving an Employee Separation Notice. Regular employees whose original position's hours are reduced in excess of 20% shall have the option to resign by the effective date of the reduction of hours and be entitled to the severance package. Employees who exercise the option to resign are not subject to reemployment provisions as set forth in 9.3.09. 9.3.07 Transfer of Affected Employees Typical recruitment procedures may be suspended, as necessary, and the County shall attempt to reassign employees affected by a reduction in force in a manner which results in the least possible adverse affect upon the employee. Management considerations shall take precedence over an employee s desire in reassignment actions. Regular employees who have received Employee Separation Notices must be given priority consideration when applying for transfer to any vacant County position for which they meet minimum requirements. Priority consideration will occur as follows: (A) (B) (C) Employees are responsible for requesting a transfer by completing an online County application form for advertised positions. Human Resources will process these applications and forward them to the appropriate Department Head within two (2) working days of receipt. Within ten (10) calendar days of receipt of applications from HR, Department Heads or hiring managers conducting interviews, will interview these employees and the Department Head will inform the County Administrator or designee if the employee was hired or not hired. The decision of the Department Head is final. Employees who transfer to another position do not have the option of resigning and receiving the severance package. (D) If transfer of an affected employee results in a demotion, salary will be calculated according to new hire procedures. Employees who accept a transfer resulting in a demotion will remain in the retention register for their previous position and may be eligible for repromotion if their previous position becomes available, until such time as the retention register expires.

Chapter 9: Non-Disciplinary Separations Chapter approved by BOS: December 20, 1995 Page 10 9.3.08 Transition Assistance Employees being separated as a result of a reduction in force will be provided the opportunity for transition assistance through an informational session(s) provided by Human Resources. The transition assistance session will include information related to County job vacancies, pay, benefits and the Employee Assistance Program. 9.3.09 Reemployment Employees who have been separated, demoted or had their hours reduced through a reduction in force must be reemployed under the following conditions and process. Available vacancies must not be filled until all separated employees from the same position have been given reasonable notification of an offer of reemployment and the opportunity to accept or reject such an offer. (A) (B) (C) (D) (E) (F) (G) (H) Employees are reemployed in reverse order of retention, i.e. those with highest number of retention points are reemployed first and employees are only reemployed in their previous position. Each employee will be offered only one reemployment opportunity. If an employee rejects an offer of reemployment, he/she forfeits all reemployment or repromotion opportunities. Employees are eligible for reemployment for 26 weeks following the date of separation, demotion, and/or reduction in hours. The retention register will be created and maintained by Human Resources and will indicate the order of reemployment as described herein. A written copy of the reemployment notice shall be mailed by certified mail to the employee's last address in his/her official personnel file. It is the responsibility of the employee to notify Human Resources of address changes while eligible for reemployment. Following receipt of the certified reemployment notice, the employee is given five (5) working days to respond to the offer. If the employee does not respond within five (5) working days (no later than ten days from the date the notice is sent via certified mail), the employee with the next highest retention points in the reemployment register will be offered reemployment. If an employee is reemployed within 26 weeks from his/her date of separation, the County will follow the reinstatement procedures detailed in 5.6.04. Reemployment rights for employees on Military Leave are detailed in the Uniformed Services Employment and Reemployment Rights Act (USERRA).