A “How To” Guide to Shared Services and Cooperation Overview In this “How To” guide, you will learn: 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 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 Article 5G of GML allows municipalities to perform various activities cooperatively 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? 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) The agreement should be put in writing. Why Shared Services? 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? Avoid duplication of services Save money Provide economies of scale Cost Avoidance Infrastructure needs New employee contracts Building lease renewal New building Implementing energy savings Save on telephone lines and utilities Traffic light example Gross purchasing Maintain fiscal health Improve service delivery Enhance efficiency Cost avoidance Degrees of Cooperation Complete consolidation/dissolution Departmental consolidation Shared services Joint facilities Joint purchasing Equipment sharing Handshake agreements Local Government Service Areas Shared Services: Opportunities for Cooperation General Government Public Safety Health Transportation Economic Assistance Culture / Recreation Home & Community Services Laying the Groundwork Best if you do some homework first: The “How To” of Shared Services Strategic Planning Capital Planning Asset Management Planning Regional Planning How Do We Get Started? 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 Identify opportunities 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: 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 Conduct a Shared Services Study (cont’d) Maintain a cooperative spirit Brief newly elected officials Watch for “striking moments” Keep momentum going Leverage expertise Reaching an Agreement 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: 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 Start off on the “right foot” Look for early successes Pick the low hanging fruit Develop a written agreement Communicate! Deal directly with problems CELEBRATE!!! Develop a Written Agreement Authorized by Governing Boards Communication 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 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 Learn from failures Address “turf” issues Anticipate challenges Develop strategies It is OK to Learn from Failures Tips learned from failures: If an idea is so fragile that it might shatter when faced with a problem it is likely not a sound one. 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 Municipal budgets and financial reports Outside consultants Municipal associations State Agencies 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 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) Did you accomplish your objective? Not always cost savings Compare current situation with end product? Document existing situation Criteria used to measure effectiveness of shared service Evaluate results of shared service (did it meet expectations?) Examples of Objectives 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: Open Book New York Released September 23, 2008 Track New York's Stimulus spending Local government data State contracts State Agency spending 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 Help identify process and options Provide technical assistance Data Annual Financial Report By Demographic Cost Savings Audits Share “Best Practices” Publications Local Government Management Guides 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) Legal assistance Check-lists Hands-on case studies Shared services training Thank You For Shared Services Training, e-mail the OSC Local Official Training Unit at [email protected] or call 518-4730005 Open Book New York Your Money New York Local Government Leadership Institute Shared Services Library Division of Local Government and School Accountability [email protected]