Breaking the Cycle

There's a place in just about every county in New York State where we could step from one jurisdiction to another by crossing the road. Yet, the same services and equipment are maintained by each municipality. Shared service agreements offer opportunities for both local and state road agencies to maximize their resources and save money.

Legal authority

Legally towns and villages can do together whatever is legal to do separately. Under the New York State constitution, Article IX, Section 1(c), and implemented by Article 5-G Municipal Cooperation of the General Municipal Law, local governments are constitutionally authorized to enter into agreements with one or more other local governments . . .

"…to provide cooperatively, jointly or by contract any facility, service, activity project or undertaking which each participating local government has the power to provide separately".

http://assembly.state.ny.us/leg/?cl=48&a=14

Barriers to intermunicipal sharing

Human beings can always find reasons not to do something, even when it's a good idea. Indeed, there are impediments to creating shared service agreements. Perceptions of what is "lost" and what is "gained" by one municipality over another can be the largest barrier to working together. If we can promote the idea that there is opportunity for a win-win situation, then possibilities open up to us. Experience has shown that most of these problems can be overcome.
Barriers include the following:

• Fear of job loss if services are combined between a town and a village
• Fear of loss of control
• Fear of loss of identity of community
• Fear of the unknown, which may be driven by inexperience in building partnerships, or a lack of understanding of legal issues.

Benefits to sharing services

Just as there are barriers to sharing services, there are benefits. The benefits may take time and persistence to be realized. Benefits include the following:

• Use of equipment among municipalities which they could not afford alone
• Use of the latest technology or equipment model
• Access to expertise from the partner highway department
• Opportunity for collaboration and building trust in community
• Cost savings (savings must be considered over time, not just as a one-time event)

Case studies

Agreements exist between counties and towns, towns and villages, the NYSDOT and local municipalities for snow and ice control, insurance coverage, purchasing, equipment loans, bridge maintenance, and more. Here are a few examples of successful agreements:

1. In 1994 three municipalities in Tompkins County jointly purchased a shoulder machine. The Towns of Lansing and Dryden and Tompkins County purchased the machine after a written agreement was in place. Neither of the towns could afford to purchase the machine alone. The agreement is written in plain English, and all of the municipal attorneys approved it. There is provision for percentage of ownership based on miles of road, maintenance and repairs, scheduling and availability, insurance, settling of disputes, and termination of the agreement.

2. The Town of Cortlandt, the Village of Buchanan, and the Village of Croton-on-Hudson in Westchester County, agreed to share purchasing services. Cortlandt is authorized for any bid for material or merchandise to include the three municipalities in public notifications and advertisements.

3. Town of Mount Hope in Orange County has a written agreement with three other towns for the purchase and use of a stone chip spreader. These Town Superintendents of Highways have traditionally helped one another. They purchased a used spreader. They estimated how many weeks each summer they all would need use of the machine, and determined that sharing it would work. Writing the agreement, consulting with their town boards, and review by town attorneys took around seven months. Renting the equipment was costing the town an average of $4,500 annually. In the first year one town saved $1,500 and the second year over $4,000.

4. The Town of Morristown in St. Lawrence County, reports that many of the highway departments in their 32 towns, 13 villages, one city, and county help each other through hand-shake agreements. However, there is a consortium of four towns and two villages which jointly purchased a paver and a roller, and paid off the cost within three years. It is estimated that before the joint purchase the town spent $4,000-$5,000 annually for paving services provided by the county. Now the costs are around $800 per year.

5. In 1998 the Rome City School District agreed to lease a former elementary school to the City of Rome for the purpose of operating the City's Police Station. The City is renovation the existing Police State, and will use the school temporarily.

6. When drug and alcohol testing became mandatory for drivers of commercial vehicles, Yates County's towns, villages, and county administration joined efforts to contract for testing services. Economy and efficiency resulted from their efforts.

7. In 2000 the South Jefferson Central School District agreed to furnish summer recreation activities to children of the Village of Adams. The school district already provides these services to other towns and villages in Jefferson County.

Reaching beyond the handshake agreement

Many highway departments share equipment, services, and crews without a formal written agreement. If the arrangement has worked for years on a handshake, why change it?

A written agreement is a good idea for several reasons.

First, it protects you and your agency in case of litigation. There are more lawsuits these days than ever before.

Second, a written agreement clearly states the tasks and arrangements between the parties.

Third, a written agreement eliminates misunderstanding and ensures fairness between municipalities.

Fourth, it facilitates changing the arrangements.

Fifth, an agreement enables continuity from one highway official to another as elections or retirements cause changes in personnel.

Getting started with a formal agreement

Do you have an informal arrangement now and are thinking of formalizing it?
Do you have a project that lends itself to sharing resources, and are looking for a partner?
Does your highway department need equipment that it just cannot afford on its own?
Can you get more efficiency by combining snow plow routes with another agency?
Is there an existing fuel depot nearby the highway garage that you could share?
Would a joint purchase of winter salt, paving materials, or sign blanks save time and money?

Here are some tips for getting started with an interagency agreement:

• Find a willing partner. Ask yourselves what each can do best to provide help to the other.
• Determine the benefits and liabilities of such an arrangement.
• Decide what you will do if it doesn't work.
• Talk to highway officials and others whose agreements have been successful.
• Identify one small project, such as equipment sharing for hauling stone or salt and sand.
• Keep your board involved. Start with the highway committee or liaison person from your board. Their participation from the beginning can mean the difference between success and failure of the project, and they can help with public opinion.
• Communicate with the public, and let them know how the sharing project is good for everyone.
• Develop a written document that all parties can agree on, and have your municipal attorneys review it.

Avoid these missteps:

• Beginning with a large project that might lead to failure
• Leaving out your board members in the planning process
• Believing that what the public doesn't know won't hurt them (and you!)

Build on small successes. For example, try planning for a joint paving project, hauling materials, or purchasing commodities. If your first project goes well, think of others. Work up to larger and more complex arrangements, like joint purchase of equipment.

Resources

The Cornell Local Roads Program has sample copies of agreements for highway-related services in its lending library that you can request free of charge. Some topics include equipment and materials (e.g., renting, leasing, borrowing, exchanging); equipment purchase; fuel facilities; snow and ice control; and stream management.

(607-255-8033) or clrp@cornell.edu

For more information:

The following organizations have information on shared service agreements for cities, villages, and towns.

NY Conference of Mayors
for cities and villages, 518-463-1185

NYS Association of Counties
518-465-1473, info@nysac.org

Association of Towns
for towns, 518-465-7933, cheryl@nytowns.org

Toni Rosenbaum, M.Ed. is Associate Director of the Cornell Local Roads Program