Local governments cooperate through agreements to share services, facilities and personnel. Authority comes from statute and its limits matter.
Statutory basis. Intergovernmental cooperation acts generally permit units to jointly exercise any power each could exercise separately. A unit cannot acquire a power it does not have by contracting with one that does.
Common subjects. Fire and emergency services, dispatch, police mutual aid, water and sewer, assessing, building inspection, recreation, road maintenance and joint purchasing.
Terms that matter. Scope of services and standards; cost allocation methodology and the mechanism for adjusting it; ownership of jointly acquired assets and disposition on termination; employment status of shared personnel and which unit is the employer for liability, benefits and collective bargaining; insurance and indemnity, bearing in mind that governmental immunity varies by function; term, withdrawal notice and the consequences of withdrawal.
Liability allocation. Indemnity between governmental units is permitted in most states but should be drafted with attention to statutory limits on indemnifying another party’s negligence.
Authorities and joint boards. Where the arrangement is substantial, a separate authority with its own governance may be preferable, and the statutes authorising them prescribe formation, powers and dissolution.
Approval. Board or council resolution by each participant, and publication or filing where required.