Transit Agency Intergovernmental Agreements: Common Issues and Solutions (2012) / Chapter Skim
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5 of an MOU may be relevant in interpreting an MOU, the party's actions are not relevant to establish that a binding agreement has been made.19 B Purpose of Enabling Laws The purpose of the enabling laws for IGAs is "to permit local governmental units to make the most efficient use of their powers by enabling them to cooperate with other localities…to provide services and facilities in a manner and pursuant to forms of governmental organization that will accord best with…the needs and development of local communities."20 The states' intent is "to increase the efficiency and effectiveness of local governments by authorizing them to contract, to the greatest possible extent, with one another and with agencies of the state."21 Many of the acts also are clear that the laws are to be construed liberally.22 An Illinois court has stated that "when local governments cooperate…the courts are not to strictly construe the statutory grants of authority under which they act."23 C
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From page 6... ...
6 or service that each agency that is a party to the agreement is authorized to exercise individually.31 As held by an Illinois court, governmental units may exercise only those powers granted to them by the state constitution or by statute, together with such implied powers as are essential to carry out their express powers.32 A power to cooperate intergovernmentally may 31 ALA.
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From page 7... ...
7 viding the service or function is authorized to provide for itself.43 There are other state laws or doctrines that may limit the use of IGAs.44 For example, IGAs may be limited by "general state constitutional limits on government power, such as the anti-delegation doctrine, the prohibition of special commissions, the prohibition of special legislation, restrictions on government subscription of stock, public purpose requirements, debt limitations, and the general state requirement that local governments not contract away their police power…."45 E Applicability of Enabling Acts to Transit Agencies The enabling laws that were located for the digest are sufficiently broad to apply to transit agencies.
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From page 8... ...
8 a political subdivision of this state and is authorized by the laws of the other state or province.61 G Administration of an Agreement State law may authorize the use of an IGA to form a separate legal entity, including a nonprofit corporation,62 or the creation of an "interlocal advisory board" to implement the agreement.63 If so, an agreement may have to state "[t]
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From page 9... ...
9 "[t] he terms of each agreement shall establish a process for withdrawal from such agreement and shall require that the agreement be reviewed at least once every five years by the body that approved the agreement to assess the effectiveness of such agreement…."77 Enabling acts may provide that they are renewable,78 but the extension of the term may be limited.79 In at least one state the law provides that if a party refuses to renew an agreement,80 the remaining parties may continue the IGA.81 Many of the enabling laws require that an IGA include provisions regarding payment for services, facilities, equipment, or other property or resources;82 the apportionment of the parties' responsibility83 and of any fees or revenue owing to the parties;84 and the method of holding, returning, and/or disposing of any property belonging to the parties on the agreement's termination.85 Some of the statutes mandate that an IGA provide for the transfer of personnel necessary for the agreement 86 while preserving employment benefits.87 Depending on a state's enabling law, an IGA may provide for the transfer of possession or title to property;88 financial support for and/or financing of the matter being undertaken by the IGA;89 or the budget for the IGA.90 The law may prohibit any party from incurring debt that would become the responsibility of any other party.91 Under some enabling laws, an agreement may include a provision for insurance and/or the in STAT.
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From page 10... ...
10 some states requiring a public hearing as part of the approval process.98 In some states it is necessary to file an agreement with the appropriate local or state authority.99 State law may require that the state attorney general approve an agreement100 but provide that the attorney general's failure to approve an agreement within 30, 60, or 90 days is to be deemed to be an approval.101 J Use for Joint Procurement A feature in some state codes that is of interest to transit agencies is the one allowing the use of IGAs for procurement.
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From page 11... ...
11 or provide that there must be an opportunity to comment regarding the use of an IGA rather than competitive bidding.108 K Use Authorized by the FTA Part V of Federal Transit Agency (FTA)
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