INTERGOVERNMENTAL COOPERATION FOR SERVICE DELIVERY. Negotiating Intergovernmental Agreements. Matthew P. Dregne Stafford Rosenbaum LLP

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1 INTERGOVERNMENTAL COOPERATION FOR SERVICE DELIVERY Negotiating Intergovernmental Agreements Matthew P. Dregne Stafford Rosenbaum LLP

2 INTERGOVERNMENTAL COOPERATION Statutory Authority Section , Wisconsin Statutes (2) Subject to s (2), and in addition to the provisions of any other statutes specifically authorizing cooperation between municipalities, unless those statutes specifically exclude action under this section, any municipality may contract with other municipalities and with federally recognized Indian tribes and bands in this state, for the receipt or furnishing of services or the joint exercise of any power or duty required or authorized by law. If municipal or tribal parties to a contract have varying powers or duties under the law, each may act under the contract to the extent of its lawful powers and duties. A contract under this subsection may bind the contracting parties for the length of time specified in the contract. This section shall be interpreted liberally in favor of cooperative action between municipalities and between municipalities and Indian tribes and bands in this state. (3) Any contract under sub. (2) may provide a plan for administration of the function or project, which may include but is not limited to provisions as to proration of the expenses involved, deposit and disbursement of funds appropriated, submission and approval of budgets, creation of a commission, selection and removal of commissioners, and formation and letting of contracts.

3 JOINT OPERATION MODEL Government Structure Organizational Chart Village Board (7 Trustees) Village Board (7 Trustees) Town Board (3 Members) Town Board (3 Members) Joint Commission (8 Members) Department Head

4 SERVICE CONTRACT MODEL Governance Structure Organizational Chart Customer Customer City Council Department Head Customer Customer

5 SPECIAL ISSUES WITH JOINT COMMISSIONS What powers should be delegated to the joint commission? - Will the commission serve in an advisory capacity to the governing bodies of the member communities? - Will the commission have the power to enter contracts? Hire and fire? Establish compensation? Approve budgets? - Who owns the property? - Who is the employer, and therefore responsible as the employer? - How are liabilities to be apportioned among members?

6 SENIOR CENTER AGREEMENT COST ALLOCATION FIXED COSTS - Property Maintenance - 50% Senior Center Director - Nutrition Manager - Staff Training - Village Staff Costs CASE MANAGEMENT COSTS OUTREACH, INFORMATION AND ASSISTANCE AND OTHER PROGRAM COSTS COST ALLOCATION BASED ON POPULATION COST ALLOCATION BASED ON TIME SPENT ON CASES FROM EACH MEMBER COMMUNITY COST ALLOCATION BASED ON COMMUNITY USAGE DATA TRACKED BY "MY SENIOR CENTER" SOFTWARE

7 COST ALLOCATION METHODOLOGY 1. Fixed Costs. Fixed costs will be allocated on a per capita basis, based on the total number of residents who reside within that portion of the Oregon School District in the contributing community as of January 1 of each year. The population of the Village of Oregon will be the actual population as most recently reported by the Department of Administration. The population of the Village of Brooklyn will be the actual population of the Village of Brooklyn located in Dane County. For the other members, population will be calculated as follows: Total population of the community as most recently reported by the Department of Administration, multiplied by a fraction, the numerator of which is the number of dwelling units in that community that are located in the Oregon School District, and the denominator of which is the total number of dwelling units in that community. The number of dwelling units in the community, and within the school district portion of the community, will be determined based on the most current information available from Access Dane. For example, if the Town of Rutland has a total population of 2,000, and there are 500 dwelling units in the Oregon School District in the Town of Rutland, and there are 800 total dwelling units in the Town of Rutland, then the number of Town of residents who reside in that portion of the Oregon School District in the Town of Rutland would be 2000 multiplied by 500/800, resulting in 1,250 residents.

8 COST ALLOCATION METHODOLOGY 2. Case Management. Case management costs will be allocated based on the prior three year average (to be phased in until we get to a rolling three year average based on August 1 to July 31) amount of time actually spent on case management for each community. This will require Senior Center staff to keep track of the time they spend on each case. If the prior three year average (to be phased in) resulted in total case management time allocated 50 percent for Village of Oregon residents, 15 percent for Village of Brooklyn residents, 15 percent for Town of Rutland residents, and 20 percent for Town of Oregon residents, then case management costs would be allocated 50/15/15/20 for the next year.

9 COST ALLOCATION METHODOLOGY 3. Outreach, Information and Assistance and Other Program Costs. The Senior Center has begun using a new software program called "My Senior Center," which tracks the use of the Senior Center by residents of each community, and tracks various outreach and information services provided by senior center staff. Outreach and other program costs will be allocated based on the average number of units the software shows the Senior Center was used by residents of each community during the past three years (to be phased in), with units multiplied by the assigned values shown on Exhibit A. If prior years resulted in the center being used 50 percent by Village of Oregon residents, 15 percent by Village of Brooklyn residents, 15 percent by Town of Rutland residents, and 20 percent by Town of Oregon residents, then Outreach and other program costs would be allocated 50/15/15/20 for the next year. [Uncompensated use by residents of nonparticipating communities will be excluded from the allocation calculation. Services provided to another community in exchange for in-kind contributions would need to be approved by the parties].

10 EXHIBIT A OREGON AREA SENIOR CENTER ACTIVITIES FUNDED BY USAGE RECORDED ON MY SENIOR CENTER SOFTWARE Unit Value Service or Activity 5 Adult Day Program 4 Information and Assistance Outreach by Case Managers Support Groups: A) Caregiver Support B) Diabetic Support Guest Speakers/Informational Programs Loan Closet Professional Consultations (Lawyers, Energy Assistance, etc.) Shopping 3 Wellness Blood Pressure Screening UW Extension Nutritional Visits Foot Care: A) General B) Diabetic Chair Massage Reflexology Exercise Classes 2 Volunteerism Fund Raisers Health Support Group Leaders Reception Kitchen Help Administrative Support RSVP Drivers: A) Meals B) Appointments (Doctor, Dentist, etc.) 1 Education Community Ed. Classes Job Search Classes Computer Classes 1 Recreation Weekly Card Groups Art/Craft Groups Entertainment Silver Threads Bingo Card Parties Day Trips Computer Lab Use

11 Village of Shorewood Hills Fire/EMS Service Delivery Options

12 Terms of a City / Village Agreement Annual Base Rate of $395,000 Twenty to Fifty Year Term Known annual adjustments based on MFD budget and a 50/50 Equalized Value and Population Formula Village residents would be charged Madison resident rates for EMS transports (usually covered by insurance) City of Madison will provide personnel and apparatus for Community Outreach (Public education events, 4 th of July Parade, etc.) Ambulance Stand-by at Fireworks Village representation on issues related to complaints of service

13 The Village would gain by contracting with Madison Service provided 24/7/365 Initial response of 24 personnel for a structure fire Paramedic level ambulance service Reasonable and predictable costs Capital cost savings could benefit other Village services MFD can provide service to the Village without adding personnel or equipment: o SHFD: 102 fire calls in 2012 o SHEMS: 145 EMS calls in 2012 o MFD: 20,541 EMS calls and 5,869 fire calls in Fire Stations within 3.5 miles

14 The Village may lose by contracting with Madison A degree of its autonomy Personalized, extra services after an emergency History and familiarity with residents and businesses 24 hour point of contact for non-emergency calls Access to resident house keys may be reduced or eliminated Public Education visits to the Fire Station (MFD has excellent educators that will visit facilities) The July Fourth Celebration & Fireworks o Can the 600+ man-hours provided by SHFD be replaced by other volunteers?

15 Cost Comparisons (Current Fire/EMS Budget is about $500,000) Contract with MFD: $380,000 base Madison would receive: o ambulance transport fees o plan review fees o occupancy permit fees The base and revenues would total about $500,000 Little or no property tax implications Sustaining Village service: $800,000 in wages and benefits $250,000 per year for a new fire station $1.2M annual budget $1,500 tax increase in local property tax for an average Village home

16 Shorewood Hills City of Madison Fire Service Agreement 1. Fee for City Services. A. Services to be provided Beginning January 1, 2014 and thereafter. For the years beginning January 1, 2014, the Village shall pay the City for services each year an amount calculated based in part on the previous year's City Fire Operating Budget, and in part on the previous year's City Fire Debt Service Payment, as described in this subsection.

17 Shorewood Hills City of Madison Fire Service Agreement (1) The Village payment for a given year based on the City Fire Operating Budget shall be the sum of two parts, one part based on the Equalized Value of the Village and the Equalized Value of the City for the year before the given year, and one part based on the Population of the City and the Population of the Village for the year before the given year, as follows: (a) The part based on equalized values ("Part EO") shall be calculated as follows: i. divide the Equalized Value of the Village for the year before the given year by the Equalized Value of the City for the year before the given year; ii. multiply the result by the City Fire Operating Budget for the year before the given year; iii. multiply the result by the fixed ratio 0.39; iv. divide the result by 2. In algebraic notation: Part EO = [(EVV / EVC) x CFOB x 0.39] / 2.

18 Shorewood Hills City of Madison Fire Service Agreement (b) The part based on population ("Part PO") shall be calculated as follows: i. divide the Population of the Village for the year before the given year by the Population of the City for the year before the given year; ii. multiply the result by the City Fire Operation Budget for the year before the given year; iii. multiply the result by the fixed ratio 1.30; iv. divide the result by 2. In algebraic notation: Part PO = [(POV / POC) x CFOB x 1.30] / 2.

19 Participation in Budget Process Village of Shorewood Hills contract for Fire and EMS Service: Payment Schedule and Invoice. Beginning in 2013, the City shall send an invoice to the Village on or before October 30 each year, setting forth the total payment that is due from the Village to the City for the following year pursuant to this subsection. The invoice shall show the City s calculations used to arrive at the Village payment, and shall state the City Fire Operating Budget, City Fire Debt Service Payment, Equalized Values of the City and Village, and Populations of the City and Village used in the calculations. Half of the Village's payment for a given year shall be paid by May 15 of the given year, and half shall be paid by September 15 of the given year. Payment shall be made to: City Treasurer - City of Madison 210 Martin Luther King Jr. Blvd. Room 107 Madison, WI If the Village does not pay an invoice by the due date, the City shall provide the Village written notice of breach and ten (10) business days to cure. If the Village fails to cure by remitting full payment within 10 business days from the date of the notice, the City may immediately terminate the Agreement or impose a late fee of one percent (1%) of the amount owed, per month or portion thereof that the invoice in question remains unpaid.

20 Participation in Budget Process Oregon Senior Center Agreement 1. Budget preparation and approval. A. A proposed draft budget for the Senior Center will be prepared by the Senior Center Director, for review and comment at a joint meeting of the participating members governing bodies, in September each year. Following that meeting, the Senior Center Director will prepare a proposed final budget for review by the Village Board. The Village Board will have the final authority to approve the budget, as part of the Village's regular, annual budget process. B. The budget shall include only projected fixed costs, case management costs, and outreach, information and assistance and other program costs. C. As part of the annual budget process, the Village will provide a 5-year senior center capital improvement plan to the participating members.

21 Participation in Budget Process Oregon Senior Center Agreement 2. Year-to-year budget cap. A. The net Senior Center costs in the budget for a given year may not exceed the net Senior Center costs budgeted for the prior year by more than ten percent, unless the governing bodies of three of the four parties to the agreement consent. If three of the four parties to the agreement do not consent, and the Village of Oregon approves a budget in which the net Senior Center costs exceed the prior year's net costs by more than ten percent, then the net budgeted Senior Center costs in excess of said ten percent shall be paid by the Village and shall not be allocated to the other parties.

22 Participation in Budget Process Oregon Senior Center Agreement 3. Budget coordination and billing. A. The Village of Oregon will provide each party with a preliminary, estimated amount of that party's Senior Center contribution for the next year on or about August 15 each year. B. The Village of Oregon will use reasonable efforts to give notice to the other parties that the budget cap may be exceeded by the last Monday in September. C. The other parties will notify the Village of Oregon whether they consent to exceeding the year-to-year budget cap as soon as possible, and not later than the first Monday in November. D. The Village of Oregon will provide notice of the final Senior Center budget and cost allocation as soon as practicable after the Village approves the Village budget. E. 1/3 is due on or before January 15, 1/3 on or before May 15, and 1/3 on or before September15. The Village of Oregon will send a bill at least 20 days before each of the scheduled payments.

23 It's about cooperation The Parties recognize that after the effective date of this Agreement, the City may, from time to time, find that it is necessary to levy special charges for current services or special assessments for public improvements under Madison General Ordinances 4.09 and Wis. Stats , or (and all subsequent amendments and additions) against Village properties based upon fire protection and/or emergency medical services provided by the City under this Agreement. Any special charges or special assessments under this Section shall be apportioned to and collected from Village property owners in the same manner as properties in the City, and shall not in any respect discriminate against Village properties because they are in the Village. Village property owners shall have all the same protections and rights as property owners in the City subject to the same special charges or special assessments. The Village hereby approves such future charges or levies, under Wis. Stats and the Village s resolution approving this Agreement constitutes the Village s resolution required by In the event that this blanket pre-approval provision is invalidated by a court of competent jurisdiction, the Village further agrees to the extent that it may lawfully do so, that it shall timely approve such special cost or special assessment levy by separate resolution pursuant to said statute.

24 Big changes are possible: Section 1. Chapter 4 of the Municipal Code of the Village of Shorewood Hills, entitled Fire Department, is repealed. Section 2. Chapter 6 of the Municipal Code of the Village of Shorewood Hills, entitled Emergency Medical Service, is repealed.

25 Jurisdictional lines can be overcome: "Citizens of Madison" shall also mean Citizens of the Village of Shorewood Hills.

26 Transfers of regulatory authority are possible and may be useful: City of Madison General Ordinances. Except as expressly provided in this section, City of Madison General Ordinances (MGO) Chapters 34 and 40, and as they may be amended, are hereby adopted and incorporated by reference in this Code. Sections 34.01(10) and (11), MGO are not adopted.

27 Transfers of administrative authority are possible and may be useful: Authority of the City of Madison Fire Chief. The Chief of the Madison Fire Department and the Chief s designee is authorized to issue permits, licenses, and notices or orders to correct violations pursuant to this section and any other Village ordinances relating to fire prevention, and to take any other action to enforce this section that he or she could take to enforce Chapters 34 and 40, MGO.

28 Transfers of enforcement authority are possible and may be useful: Issuance of Citations. Any village law enforcement officer may issue a citation for the violation of any ordinance. Any law enforcement officer employed by any other Wisconsin law enforcement agency, while acting pursuant to Wis. Stat , or while acting pursuant to an intergovernmental agreement between the Village and such other law enforcement agency, may issue a citation for the violation of any ordinance. In addition, the following officials are hereby authorized to issue citations for enforcement of any provisions of this Code that are directly related to their official duties: (a) The Fire Chief of the City of Madison, his or her designated Chief Officers and Department Officers assigned to Fire Prevention and Investigation Divisions. Madison Fire (b) (c) (d) (e) (f) (g) (h) Village Building Commissioner. Village Zoning Administrator. Village Building Inspector. Village Plumbing Inspector. Village Electrical Inspector. Village Weed Commissioner. Village Administrator.