Intermunicipal Agreements

Intermunicipal Agreements Overview

• Introduction • Options and Opportunities • Intermunicipal Agreements

– Legal Authority– Definitions– Participants

• Examples Around New York State

Tax Levy and Assessments

Village Taxes

School Taxes

Special Districts

Reprinted with permission from Roger K. Lewis

Shared Services?

IntermunicipalCooperation?

Cost of Local Government Services

• Efficiency and effectiveness • Reduced expenses based on economies

of scale • Minimize service duplication • Share resources or specialized skills• Use of best practices • Focus on services are most appropriate

to share

Cost

Why Work Together?

Obstacles to Cooperation

• Loss of local control • Loss of identity• Loss of authority • Increased travel for services• Fear of job loss • Political landscape

Cost Services

Equity Among Partners

Costs versus Community Values

Levels of Cooperation

DEVELOPING AN INTERMUNICIPAL AGREEMENT

Strategies for Cooperation

• Identify Opportunity• Understand the Program’s Feasibility • Negotiate Agreement • Build and Maintain Support• Anticipate Roadblocks

Types of Agreements

• Service agreements – Municipality provide services to another. Fees are

sometimes transferred through a swap of resources or exchange of services.

• Joint agreements – Municipalities work together to provide services.

The MOU vs The IMA

Memorandum of Understanding

• Agreement between two or more parties to work together on a project or meet an agreed upon objective

• Typically not binding

Intermunicipal Agreement

• Formal document committing two or more municipal parties to specific actions

• Typically a binding agreement

Why an IMA?• Protect the community • Clearly states tasks between partners• Eliminate misunderstanding and promote

fairness• Better facilitate changes in the arrangement• Promote continuity in program

Legal Authority

New York State Constitution Article IX, Section 1(c)Local governments shall have power to agree, ….. with one or more other governments …. to provide cooperatively, ….. any facility, service, activity or undertaking which each participating local government has the power to provide separately.

Legal Authority

General Municipal LawArticle 5-Gmunicipal corporations and districts shall have power to enter into, amend, cancel and terminate agreements for the performance among themselves or one for the other of their respective functions

Definitions• “Municipal Corporation”

– a county outside the City of New York, a city, a town, a village, a board of cooperative educational services, a fire district or a school district.

• “District”– A county or town improvement district for which

the county or towns

Definitions

• “Joint service”– … provision of any municipal facility, service,

activity, project or undertaking or the joint performance or exercise of any function or power which each … has the power … to provide, … , separately… ”

DEVELOPING AN INTERMUNICIPAL AGREEMENTS

Getting Started• One size does not fit all• Can customize agreements • May include service swaps, fees for service

and equipment exchange• Shared by contiguous and non- contiguous

municipalities and districts

Content• Nature of the Agreement • Scope of Service• Personnel• Service Charges• Liabilities of the Parties• Contract Term, Amendment and Termination

Content

• Identify involved local governments involved• Describe the service to be performed• Explain reasons for entering into the contract

and cite the statutory authority • Define key terms in the contract language

Scope of Service

• Performance standards for the proposed service

• Service availability and limitations• Provisions for increasing or reducing the level

of service

Establishment of a Joint Agency

If a joint body or agency will administer a joint service, the agreement should:•Specify the composition of that body•Method of selection of its members and officers, and their duties•Define authority and responsibilities of the joint agency•State the frequency of its meetings•Describe the rocedures for calling special meetings

Personnel

Options for staffing a joint body or agency • Each municipality contributes a portion of the

work force• Designation of one local government as

employer for all staff• Reimbursement for costs related to

employment of joint staff and admin costs

Personnel

• Civil Service Law §70(2)– Transfer of personnel upon the transfer of function

from one governmental entity to another

• Civil Service Law §70(5)– Specifically addresses transfer of police personnel

• Civil Service Law §83 through §83-g– Provides for the creation of a Police Advisory Board

when a dissolution/abolishment occurs

Property

Define ownership of property– Property acquired as “tenants in common” or

“undivided interest” – Property acquired by one participant, and

administered together; or– Title to the property as joint tenants

Disposition upon termination of the agreement

Service Charges

• Amount, times and method of payments• Charges may be levied as:

• flat rates (daily, weekly or otherwise),• actual “out-of pocket” expenses,• population,• assessed valuation, or• a combination of these and other factors

• Renegotiation of charges periodically during term

Liability of the Parties• Opportunity to negotiate and include

insurance requirements and indemnification– Hold Harmless/Indemnification Agreements– Insurance Procurement Agreements

• Review IMAs with insurance providers early• Review policies from partners to ensure

adequate coverage

Contract Term, Amendment and Termination

• General Municipal Law Section 119-o(2)(j)– Limited to a term of 5 years– Or to the useful life of a capital improvement for

which there is indebtedness

• An IMA must have terms to start, stop, and reauthorize

Contract Term, Amendment and Termination

• An IMA may be renewed by the governing bodies…– May NOT contain a clause that renders the IMA

automatically renewed unless terminated.– Renewal or extension must require an active,

comprehensive review by the participating governing bodies.

EXAMPLES OF JOINT PROGRAMS

Shared Highway Services

Ulster County•Increasing maintenance costs •Analysis identified options to combine space, service, or departments •AVL program for shared deployment of highway vehicles •Towns plowing roads for the county

Emergency Services Consolidation

Hamlin-Morton-Walker Fire District

• New regulations and standards demand greater efficiency

• Enhanced coordination and interoperability

Emergency Services

Town and Village of Saugerties

• Consolidated police departments

• No loss of coverage or service

• Savings for both Town and Village taxpayers

Shared InfrastructureTowns of Putnam and Ticonderoga•Joint sewer system •Addressed failing septic systems on Lake George•Median household savings of $367

Records ManagementSchuyler County•Shortages of space and personnel •Centralized facility •Savings in reduced operating costs•Better management of records

Other Examples

• Shared Fuel and Maintenance Facilities

• Administrative Services – Consolidated school

business office– Maintenance,

Purchasing and Technology Service

Other Examples

• Coordinated Courts Service

• Shared Utility/Utility Aggregation

• Zoning, Planning, Code Enforcement

• Economic Development • Transportation

LGE Program

Assists local governments develop and implement new opportunities for savings and service delivery efficiencies.

LGE Funding • Planning

–The maximum grant is $12,500 per municipality; up to a maximum of $100,000.

–50% State Funds/50% Local Fund

• Implementation–The maximum grant is $200,000 per municipality; up

to a maximum of $1,000,000–90% State Funds/10% Local Fund

Local Government Efficiency Program

99 Washington Ave, Suite 1015Albany, NY 12231

(518) 473-3355 • (800) 367-8488

http://www.dos.ny.govLGEProgram@dos.ny.gov