Document 6505645

A “How To” Guide to Shared
Services and Cooperation
Overview
In this “How To” guide, you will learn:
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Presented
By
Richard Blafield and Daniel Acquilano
Office of the State Comptroller
Thomas P. DiNapoli
State & Local Government Accountability
Andrew A. SanFilippo
Executive Deputy Comptroller
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Local Governments in NYS
Legal framework
Why shared services
Opportunities for cooperation
The “How To” of shared services
Best practices
Goals and objectives
What OSC can do for you
Local Government & School Accountability
Steven J. Hancox
Deputy Comptroller
Local Governments in New York State
General Purpose Governments
Other Government Entities
Counties (outside of
NYC)
57
Special Purpose Units
604
240
Cities
62
Local Government
Public Authorities
Towns
932
Villages
556
1,607
Special Purpose Governments
School Districts
844
Other Service Structures
Town Special Districts
7,272
County Special Districts
144
699
Fire Districts
871
Library Districts
181
Special Districts
78
7,416
Total
11,696
1,829
What can we share? Who can share?
Legal Framework
The “What” and “Who” of Shared
Services
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Article 5G of GML allows municipalities to
perform various activities cooperatively
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Any function that a municipal corporation or district
can perform individually.
Each participant must have statutory authority, aside
from article 5-G, to perform this function.
“Municipal Corporations” & “Districts” may enter into
cooperative agreements
How are cooperation agreements
entered into?
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Must comply with requirements relating to “a public
hearing, a mandatory or permissive referendum,
consents of governmental agencies, or other
requirements…”
General Municipal Law
Section 119-o (2)
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The agreement should be put in
writing.
Why Shared Services?
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Why Shared Services?
Often easier to achieve and frequently
less costly to implement
Can accomplish many of the same
objectives
Maintains local control and autonomy
Makes future organizational changes
easier
Why Should We Cooperate?
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Avoid duplication of services
Save money
‰ Provide economies of scale
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Cost Avoidance
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Infrastructure needs
New employee contracts
Building lease renewal
New building
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Implementing energy savings
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Save on telephone lines and utilities
Traffic light example
Gross purchasing
Maintain fiscal health
Improve service delivery
Enhance efficiency
Cost avoidance
Degrees of Cooperation
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Complete consolidation/dissolution
Departmental consolidation
Shared services
Joint facilities
Joint purchasing
Equipment sharing
Handshake agreements
Local Government Service Areas
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Shared Services: Opportunities for
Cooperation
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General Government
Public Safety
Health
Transportation
Economic Assistance
Culture / Recreation
Home & Community Services
Laying the Groundwork
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Best if you do some homework first:
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The “How To” of Shared Services
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Strategic Planning
Capital Planning
Asset Management Planning
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Regional Planning
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How Do We Get Started?
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Conduct a Needs Assessment
Conduct a Shared Services Study
Reach an Intermunicipal Agreement
Implementation
Inventory equipment
Inventory other assets
Identify replacement needs overtime
Establish forums
Visioning
Conduct a Needs Assessment
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Identify opportunities
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Can an existing public service be provided more cost
effectively or efficiently through a shared service
agreement? If so:
Find a partner or partners
Think regionally
Are there municipalities in the area already sharing
services in this area?
What is the “true cost” of the
service being considered?
Research what others have done
Conduct a Shared Services Study
Conduct a Shared Services Study (cont’d)
Steps to follow:
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Stakeholder identification
Develop mission statement and goals
Identify viable options for accomplishing stated
goals
Design a process to accomplish the stated goals
Select realistic programs
Start with an easy project
Study options thoroughly and weigh all options
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Conduct a Shared Services Study (cont’d)
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Maintain a cooperative spirit
Brief newly elected officials
Watch for “striking moments”
Keep momentum going
Leverage expertise
Reaching an Agreement
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Implementation
When a study results in recommendations that each
governing board agrees to pursue, an implementation
committee or team should be appointed. Some key
issues the committee needs to address:
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How will the costs and revenues be allocated among the
participants?
What will the scope of the shared service be?
How will potential liabilities be handled?
Who will own property and employ staff?
Will implementation of the idea require a referendum or
can you simply seek citizen input?
What is the best time to begin implementation?
Watch-out for the ease of informality
Allocate costs fairly
Share total costs
Set up a positive cash flow
Avoid over dependence on grants
Deal directly with problems
Learn from failures
Address turf issues
Recognize historical animosities
Communicate throughout
First, come to an agreement on how to make
a decision
Involve all stakeholders
Address issues/concerns
Be flexible
Communicate agreement to all stakeholders
Best Practices
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Start off on the “right foot”
Look for early successes
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Pick the low hanging fruit
Develop a written agreement
Communicate!
Deal directly with problems
CELEBRATE!!!
Develop a Written Agreement
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Authorized by Governing Boards
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Communication
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Revenue and cost allocation
Fiscal officer designee
Frequency and method of reporting
Care, custody and control of equipment and/or
facilities; liability
Term of Agreement; How to amend and renew
Keep stakeholders informed
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Avoid appearance of secrecy
Publicize meetings and circulate agendas
Keep minutes and distribute
Agree on reporting requirements
Consider public information forums
Leverage web technology
Sample intermunicipal agreements online:
http://www.dos.state.ny.us/lgss/sharedservices/IMAs/IMApage.html
Deal Directly With Problems
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Learn from failures
Address “turf” issues
Anticipate challenges
Develop strategies
It is OK to Learn from Failures
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Tips learned from failures:
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If an idea is so fragile that it might shatter when
faced with a problem it is likely not a sound one.
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Be prepared for all meetings
Don’t proceed without agreement from all
stakeholders
Agree on how decisions will be made
Don’t under communicate
Don’t rely on informal agreements
Resources Available
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Municipal budgets and financial reports
Outside consultants
Municipal associations
State Agencies
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Office of the State Comptroller
Department of State
Office of Real Property Services
Bureau of Municipal Police
Fire Prevention and Control
Defining Success
Defining Success - Goals & Objectives
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Develop a mission statement
Develop long and short-term goals
Serve as a guidepost throughout the study
Sustain successes
Defining Success - Goals & Objectives
(cont’d)
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Did you accomplish your objective?
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Not always cost savings
Compare current situation with end product?
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Document existing situation
Criteria used to measure effectiveness of shared
service
Evaluate results of shared service (did it meet
expectations?)
Examples of Objectives
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How Can OSC Help?
To avoid duplication of services
To share efficiencies
Cost and property tax reduction
Economic development
Ability to offer new services or enhance revenues
Cost avoidance
Environmental concerns
Open Book New York
Open Book New York (cont’d)
Open Book New York allows users to examine:
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Open Book New York
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Released September 23, 2008
Track New York's Stimulus spending
Local government data
State contracts
State Agency spending
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One municipality or class-wide aggregate data
Side by side comparisons with other local governments
Retrieve up to 6 years of data at once from 1996 - 2008
Revenues and Expenditures
Functional Areas
Visit Open Book New York at:
http://www.openbooknewyork.com/
Great for quickquick-reference data checks…
checks…
Shared Services Resources from OSC
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Help identify process and options
Provide technical assistance
Data
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Annual Financial Report
By Demographic
Cost Savings Audits
Share “Best Practices” Publications
‰ Local Government Management Guides
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Shared Services in Local Governments
Capital Planning
Research Reports
Shared Services Among New York’s Local Governments
Cracks in the Foundation: Local Government Infrastructure and Capital
Planning Needs
Technical Assistance
‰ Phone
‰ Field visits
Shared Services Resources from OSC
(cont’d)
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Legal assistance
Check-lists
Hands-on case studies
Shared services training
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Thank You
For Shared Services Training, e-mail the OSC Local Official
Training Unit at localtraining@osc.state.ny.us or call 518-4730005
Open Book New York
Your Money New York
Local Government Leadership Institute
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Shared Services Library
Division of Local Government and
School Accountability
localtraining@osc.state.ny.us