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Combining Governmental Issues to Consider With the budget crisis affecting virtually every aspect of governmental service in Minnesota, many cities are looking at intergovernmental cooperative arrangements as a possible gray to provide services less expensively, more effectively, or both. planning and negotiating an agreement to shm or combine services is a big task and there are many aspects to consider. Under the joint powers law 47 1.59, cities can enter intergovenunental agreements with virtually any other governmental entity — other cities, counties, towns, special districts, service cooperatives, even the state itself For simplicity "s sale, we'll just refer to cities in this memo, but the ame issues arise and the same principles apply regardless of ghat types of governmental units are involved. This memo identifies many of the issues (we won't promise that we've identified all of the issues) that need to be addressed. In some cases, the solutions for some of these issues may be non - controversial and obvious to everyone: m another situation though, the samc issue might turn out to be the deal- breaker. In all cases, the decisions about how best to arrange cooperative services need to be made and supported among elected officials and city administration, as well as the general public. Structure and governance The joint powers law allows political subdivisions to cooperate in a wide variety of ways. There are three basic structural models: a consolidated service approach; a .service contract approach; or a mutual aid approach. Consolidated service. Under the consolidated service approach, two or more cities agree under the joint powers law to create a j oint board consisting of one or more representatives from each of the participating cities. Each city provides fmaneial support to the ,point board. In turn the board employs the necessary staff, owns or leases the equipment, and manages the operations; Service contract Under the service contact approach, one city maintains and manages the operation and the other city simply purchases services from the first city. Typically, the agreement will specify the level and type of service to be provided, performance standards, and so on.