SHARED SERVICES NJSA 40A:65-1 et seq. GPANJ Educational Symposium March 23, 2017

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1 SHARED SERVICES NJSA 40A:65-1 et seq GPANJ Educational Symposium March 23, 2017

2 Per NJSA 40A:65-4 Shared service or shared means any service provided on a regional, joint, interlocal, shared, or similar basis between local units, the provisions of which are memorialized by agreement between the participating local units, but, for the purposes of this act, does not include any specific service or activity regulated by some other law, rule or regulation.

3 Per NJSA 40A:65-4 Agreements for shared services. Any local unit may enter into an agreement with any other local unit or units to provide or receive any service that each local unit participating in the agreement is empowered to provide or receive within its own jurisdiction, including services incidental to the primary purposes of any of the participating local units.

4 Per NJSA 40A:65-5 Adoption of resolution to enter into agreement. 5. a. A local unit authorized to enter into an agreement under section 4 of P.L.2007, c.63 (C.40A:65-4) may do so by the adoption of a resolution. A resolution adopted pursuant to this section or subsection b. of that section shall clearly identify the agreement by reference and need not set forth the terms of the agreement in full. b. A copy of the agreement shall be open to public inspection at the offices of the local unit immediately after passage of a resolution to become a party to the agreement. c. The agreement shall take effect upon the adoption of appropriate resolutions by all the parties thereto, and execution of agreements authorized thereunder as set forth in the agreement.

5 Resolution AUTHORIZING A SHARED SERVICES AGREEMENT WITH ROBBINSVILLE TOWNSHIP FOR AUTOMOTIVE REPAIR SERVICES WHEREAS, with the adoption of Resolution on January 7, 2008, the Borough Council approved an Interlocal Service Agreement with Robbinsville Township for the provision of Automotive Repair Services, which has been renewed with the last renewal ending December 31, 2016; and WHEREAS, the parties desire to enter into a successor Shared Services Agreement to continue the provision of these services to the Borough by Robbinsville for a two-year period, January 1, 2017 through December 31, 2018; and WHEREAS, the Uniform Shared Services and Consolidation Act, N.J.S.A. 40:65-1 et seq. authorizes the approval of Shared Services Agreements by Resolution; and WHEREAS, funds for this expenditure will be made available in the 2017 budget; and WHEREAS, the continuation of this agreement is contingent upon the availability of adequate funding in the Borough s subsequent year s budgets. NOW, THEREFORE, BE AND IT IS HEREBY RESOLVED, by the Borough Council of the Borough of Hightstown, in the County of Mercer and State of New Jersey, as follows: 1. That the Mayor is hereby authorized to execute and the Borough Clerk to attest the Shared Services Agreement on behalf of Hightstown. 2. That, in accordance with the aforementioned agreement, Hightstown hereby designates Frank Gendron, Police Chief, or his appointee, to schedule and be responsible for all repairs to police vehicles and Ken Lewis, Superintendent of Public Works, to schedule and be responsible for all repairs to all other Borough-owned vehicles. 3. That, in accordance with the aforementioned agreement, no repair in excess of $350 shall be made by Robbinsville unless specifically authorized by the designated Hightstown Borough Representative. 4. That the continuation of this agreement is contingent upon the availability of adequate funding in the Borough s 2017 and each subsequent year s budget.

6 Agreement SHARED SERVICE AGREEMENT BETWEEN ROBBINSVILLE TOWNSHIP AND THE BOROUGH OF HIGHTSTOWN THIS SHARED SERVICE AGREEMENT is effective January 1, 2014, between the TOWNSHIP OF ROBBINSVILLE, a municipal corporation of the State of New Jersey, 1 Washington Blvd., Robbinsville, NJ, hereinafter referred to as Township and the BOROUGH OF HIGHTSTOWN, 156 Bank Street, Hightstown, NJ, hereinafter referred to as Borough. Witnesseth that: Whereas, the Borough of Hightstown desires to contract with the Township of Robbinsville for the provision of automotive repair services for the Borough of Hightstown s vehicles and equipment; and Whereas, the Township of Robbinsville is agreeable to providing automotive repair services to the Borough of Hightstown for a fee and certain specified conditions; and Whereas, the Uniform Shared Services and Consolidation Act, N.J.S.A. 40A:65-1 et seq., permits local units of this State to enter into a contract with any other local unit for the joint provisions within their combined jurisdictions of any service which any party to the agreement is empowered to render within its jurisdiction; and Whereas, the Township of Robbinsville and the Borough of Hightstown have authorized and approved of this Agreement by resolution duly adopted pursuant to N.J.S.A. 40A:65-5 of the Uniform Shared Services Consolidation Act; Now, Therefore, in consideration of the mutual agreements and covenants contained herein, the parties hereto agree as follows:

7 1. Term. This Agreement shall be for a three-year term to take effect January 1, 2014 and expire December 31, Scope of Services. The Township shall provide automotive services to the Borough according to the terms and conditions set forth below: a. No vehicle/equipment repair in excess of $ shall be made by the Township unless specifically authorized by the designated the Borough representative. b. The Borough shall designate one (1) person and one (1) back up person to schedule and be responsible for authorization on all repairs. c. Minor road calls shall be performed by the Township during normal working hours and the hourly rate provided in 3a below, provided manpower and equipment is available and not being utilized in servicing /repair of Township vehicles. d. Minor emergency repairs, such as flat tires, will be performed on an immediate basis at the Township facility, (DPW garage) during normal business hours. 3. Fees. The Township shall charge the Borough for automotive services as follows: Labor rate of $60.00 per man hour 10% over Township cost for all repair parts and sublet parts. No charge will be made for parts which are supplied by the Borough. 4. Billing and Payment. The Township shall provide the Borough with itemized monthly billings of all repair costs. Payment shall be due from the Borough within 30 (thirty) days of the date of billing. 5. Liability. The Township and the Borough shall be responsible for acts of their own negligence consistent with the provisions of the New Jersey Tort Claims Act, N.S.J.A. 59:1-1 et seq., arising out of or related to performance of any activity under the terms of this Agreement. 6. Each party shall notify the other in writing sixty (60) days before expiration of this agreement if it desires to continue services and negotiate a new contract for the succeeding year.

employment, the agreement shall provide for the payment of a salary to the officer or employee and shall designate one of the local units as the primary employer of the officer or employee for the

8 Per NJSA 40A:65-6 Local units sharing services, designation of primary employer; rules, regulations. 6. a. In the case of an agreement for the provision of services by an officer or employee of a local unit who is required to comply with a State license or certification requirement as a condition of employment, the agreement shall provide for the payment of a salary to the officer or employee and shall designate one of the local units as the primary employer of the officer or employee for the purpose of that person's tenure rights. If the agreement fails to designate one of the local units as the primary employer, then the local unit having the largest population, shall be deemed the primary employer for the purposes of that person s tenure rights. b. A State department or agency with oversight over specific activities that are the subject of a shared service agreement may promulgate whatever rules and regulations it deems necessary to ensure that the service continues to be provided in accordance with the requirements of that department or agency.

9 Resolution Resolution BOROUGH OF HIGHTSTOWN COUNTY OF MERCER STATE OF NEW JERSEY AUTHORIZING A SHARED SERVICES AGREEMENT WITH ROOSEVELT BOROUGH FOR MUNICIPAL CLERK SERVICES WHEREAS, the Borough of Hightstown ( Hightstown ) and the Borough of Roosevelt ( Roosevelt ) wish to enter into a Shared Services Agreement for the provision of Municipal Clerk services by Hightstown to Roosevelt; and WHEREAS, the Uniform Shared Services and Consolidation Act, N.J.S.A. 40:65-1, et seq., authorizes the approval of Shared Services Agreements by Resolution; and WHEREAS, Hightstown and Roosevelt agree that Hightstown s current Municipal Clerk, Debra Sopronyi, possesses specialized skills, knowledge and expertise in the area of Municipal Government and is duly certified by the State of New Jersey to provide the statutory requirements for the position of Municipal Clerk; and WHEREAS, with the above in mind, the parties wish to enter into the attached Shared Services Agreement; and WHEREAS, the parties acknowledge and agree that they are associated for only the purposes set forth in the Agreement and that each is a public entity separate and distinct from the other. Hightstown: NOW, THEREFORE BE IT RESOLVED, by the Mayor and Council of the Borough of 1. That the Mayor is hereby authorized to execute and the Municipal Clerk to attest the attached Shared Services Agreement for the services of Municipal Clerk. 2. That a certified copy of this resolution and a copy of the attached Agreement shall be sent to the Department of Community Affairs, Division of Local Government Services. CERTIFICATION I hereby certify the foregoing to be a true copy of a resolution adopted by the Borough Council at a meeting held on June 2, Debra L. Sopronyi Borough Clerk

10 Agreement SHARED SERVICES AGREEMENT This AGREEMENT made this, 2014, by and between BOROUGH OF HIGHTSTOWN 148 North Main Street Hightstown, New Jersey (hereinafter referred to as Hightstown ) AND BOROUGH OF ROOSEVELT 33 North Rochdale Avenue Post Office Box 128 Roosevelt, New Jersey (hereinafter referred to as Roosevelt ) WHEREAS, Hightstown and Roosevelt (hereinafter collectively referred to as the Parties ) wish to encourage inter-municipal cooperation; and WHEREAS, Roosevelt is in need of Municipal Clerk services and the Parties recognize that shared service agreements may yield certain economies and efficiencies to the residents of the Parties in the delivery of the services; and WHEREAS, N.J.S.A. 40:48-5 authorizes a municipality to contract with any public or private entity for the provision of any service which the municipality itself could provide directly; and

11 WHEREAS, the Uniform Shared Services and Consolidation Act, N.J.S.A. 40A:65-1 et seq., authorizes local units of this State to enter into a contract with any other local unit or units for the joint provision within their several jurisdictions of any service which any Party to the agreement is empowered to render within its own jurisdiction; and WHEREAS, Hightstown and Roosevelt agree that Hightstown s current Municipal Clerk, Debra Sopronyi ( Sopronyi ), possesses specialized skills, knowledge and expertise in the area of Municipal Government and is duly certified by the State of New Jersey to provide the statutory requirements for the position of Municipal Clerk; and WHEREAS, the Parties have each duly authorized their proper officials to enter into and execute this Agreement. NOW, THEREFORE, BE AND IT IS HEREBY AGREED by and between the Parties as follows:

12 Hightstown shall provide statutorily required municipal clerk services to Roosevelt pursuant to a mutually agreed upon schedule, with a maximum of ten (10) hours of service per week to be provided by Sopronyi on site at Roosevelt. With respect to emergent matters, access to Sopronyi by telephone or shall not be restricted to the office hours agreed upon. Sopronyi shall perform the duties of municipal clerk of Roosevelt in accordance with applicable statutes of the State of New Jersey in the same manner as if she were employed by Roosevelt and shall observe appropriate confidentiality in the performance of her duties. These duties shall include, but not be limited to, the duties set forth in N.J.S.A 40A:9-133e and N.J.S.A. 26:8-11 as to Local Registrar. Sopronyi shall maintain her full time status as an employee of Hightstown and shall not be considered an employee of Roosevelt. Hightstown shall be responsible for direct salary compensation to Sopronyi and continue to pay all indirect expenses regarding salary compensation, including but not limited to payroll taxes, pension, worker s compensation and health care coverage. The services referenced herein shall be performed by Hightstown at the following rates: $35, annually. Effective January 1, 2015, the rate shall increase by two percent (2%).

13 Payment shall be made by Roosevelt to Hightstown on a quarterly basis, due on March 31 st, June 30 th, September 30 th and December 31 st. Despite the fact that payments are quarterly, payment shall only be due for services for time actually performed, and will be pro-rated on that basis. For instance, if payment is due for a quarter on June 30 th, and the Agreement is terminated in accordance with Paragraph 7 effective April 30 th, then only payment through April 30 th shall be due. Each party hereby agrees to release, indemnify, defend and hold harmless the other party, its agents, officers and employees, from and against any and all claims, demands, losses, expenses, attorneys fees, cause of action, judgments, lawsuits, proceedings, damages, and liability which may be asserted or claimed and which relate in any way to, or arise in any way from, any acts or omissions of the negligent party, its agents, officers and employees, resulting from this Agreement. This Agreement is being entered into pursuant to the provisions of the Uniform Shared Services and Consolidation Act, N.J.S.A. 40A:65-1, et seq. It is understood that by this Shared Services arrangement Sopronyi is not being appointed by Roosevelt for a term as provided in N.J.S.A. 40A:9-133, et seq., or acquiring any tenure or time toward tenure in the position of municipal clerk of Roosevelt, but rather, her services as municipal clerk are controlled by this Agreement. Further, Sopronyi is not being appointed for a term as Registrar of Vital Statistics, but rather, her services as Registrar of Vital Statistics are controlled by this Agreement. The term of this Agreement shall be through December 31, 2015, with the right to renew upon such terms and conditions as are agreed upon by the Parties at that time. Prior to that time, either Party may terminate this Agreement upon thirty (30) days advance written notice without penalty.

14 This Agreement shall be interpreted in accordance with the rights of the Parties hereto and shall be governed by the laws of the State of New Jersey. Any dispute regarding the terms of this Agreement shall be venued in New Jersey Superior Court, Monmouth County. The rights, duties and obligations of this agreement may not be assigned without either Party s prior written consent and it is agreed that a failure or delay in the enforcement of any of the provisions of this agreement by either Party shall not constitute a waiver of those provisions. The Parties acknowledge and agree that they are associated for only the purposes set forth in the agreement and each is a public entity separate and distinct from the other. This Agreement sets forth the entire agreement between the Parties concerning the subject matter hereof and shall only be modified or amended by an instrument in writing signed by both Parties. This Agreement shall be binding upon the Parties and their legal representatives, successors and assigns. IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their respective officers duly authorized, and to be duly attested, and to have their respective corporate seals affixed hereunto, and have caused this Agreement to be dated as of the day and year first written above.

15 Per 40A: a. An agreement made pursuant to section 4 of P.L.2007, c.63 (C.40A:65-4) shall specify: (1) the specific services to be performed by one or more of the parties as agent for any other party or parties; (2) standards of the level, quality, and scope of performance, with assignment and allocation of responsibility for meeting those standards between or among the parties; (3) the estimated cost of the services throughout the duration of the agreement, with allocation of those costs to the parties, in dollar amounts or by formula, including a time schedule for periodic payment of installments for those allocations, and in the case of a shared service agreement between pilot municipalities, an estimate of the cost savings anticipated to be achieved by the local units that are the parties to the agreement. The specification may provide for the periodic modification of estimates or formulas contained therein in the light of actual experience and in accordance with procedures to be specified in the agreement; (4) the duration of the agreement, which shall be 10 years, unless otherwise agreed upon by the parties, but in no case shall the duration of any agreement between pilot municipalities be less than two years; and (5) the procedure for payments to be made under the contract. b. In the case when all of the participating local units are municipalities, the agreement may provide that it shall not take effect until submitted to the voters of each municipality, and approved by a majority of the voters of each municipality voting at the referendum. c. The agreement may provide for binding arbitration or for binding fact-finding procedures to settle any disputes or questions which may arise between the parties as to the interpretation of the terms of the agreement or the satisfactory performance by any of the parties of the services and other responsibilities required by the agreement.

16 d. For the purposes of sections 4 through 13 of P.L.2007, c.63 (C.40A:65-4 through C.40A:65-13), any party performing a service under a shared service agreement is the general agent of any other party on whose behalf that service is performed pursuant to the agreement, and that agent-party has full powers of performance and maintenance of the service contracted for, and full powers to undertake any ancillary operation reasonably necessary or convenient to carry out its duties, obligations and responsibilities under the agreement. These powers include all powers of enforcement and administrative regulation which are, or may be, exercised by the party on whose behalf the agent-party acts pursuant to the agreement, except as the powers are limited by the terms of the agreement itself, and except that no contracting party shall be liable for any part or share of the cost of acquiring, constructing, or maintaining any capital facility acquired or constructed by an agent-party unless that part or share is provided for in the agreement, or in an amendment thereto ratified by the contracting parties in the manner provided in sections 1 to 37 of P.L.2007, c.63 (C.40A:65-1 et al.) for entering into an agreement. e. Except as the terms of any agreement may explicitly or by necessary implication provide, any party to an agreement entered into pursuant to section 4 of P.L.2007, c.63 (C.40A:65-4) may enter into another agreement or agreements with any other eligible parties for the performance of any service or services pursuant to sections 1 to 37 of P.L.2007, c.63 (C.40A:65-1 et al.). The participation in one agreement shall not bar participation with the same or other parties in any other agreement. f. Payment for services performed pursuant to an agreement shall be made by and to the parties, and at such intervals, as shall be provided in the agreement. g. In the event of any dispute as to the amount to be paid, the full amount to be paid as provided in subsection a. of this section shall be paid; but if through subsequent negotiation, arbitration or litigation the amount due shall be determined, agreed or adjudicated to be less than was actually so paid, then the party having received the payment shall forthwith repay the excess. L.2007, c.63, s.7; amended 2013, c.166, s.6.

17 OTHER REGULATIONS 40A:65-8 Preservation of seniority, tenure, pension rights for law enforcement officers. 40A:65-9 Awarding of public contracts. If any local unit performs a service on behalf of one or more other local units that are parties to an agreement that utilizes a private contractor to perform all or most of that service, or all or most of a specific and separate segment of that service, then that local unit shall award the contract for the work to be performed by a private contractor under the agreement in accordance with the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.). 40A:65-10 Approval of award of contract. 10. In the event that any authority, board, commission, district, joint meeting, or other body created by one or more local units proposes to enter into a contract under sections 1 to 37 of P.L.2007, c.63 (C.40A:65-1 et al.), whereby that entity agrees to have performed on its behalf services, the cost of which shall equal one-half or more of the total costs of the services being performed by that entity immediately prior to the adoption of the proposed contract, then the contract shall require approval by resolution of the governing body of each local unit which created the entity or which has become a participant therein subsequent to its creation. L.2007, c.63, s.10.

18 40A:65-11 Employment reconciliation plan included in agreement; conditions. 40A:65-12 Provision of technical advice by Public Employment Relations Commission. The Public Employment Relations Commission is specifically authorized to provide technical advice, pursuant to section 12 of P.L.1968, c.303 (C.34:13A-8.3), and mediation services to integrate separate labor agreements into single agreements for the shared service agreement. The commission may order binding arbitration, pursuant to P.L.1995, c.425 (C.34:13A-14a et al.), to integrate any labor agreement. L.2007, c.63, s.12.

19 40A:65-13 Construction of power to share services. It is the intent of the Legislature to facilitate and promote shared service agreements, and therefore the grant of power under sections 1 through 35 of P.L.2007, c.63 (C.40A:65-1 through C.40A:65-35) is intended to be as broad as is consistent with general law. L.2007, c.63, s.13.

40A:65-16 Provisions of joint contract. 40A:65-17 Preservation of seniority, tenure, pension rights of law enforcement officers 40A:65-18 Applicability of terms of existing labor contracts.

40A:65-22 Certification of costs and expenses by management committee. 40A:65-23 Termination of joint contract. 40A:65-24 Existing joint meeting, public school jointure unaffected.

20 40A:65-16 Provisions of joint contract. 40A:65-17 Preservation of seniority, tenure, pension rights of law enforcement officers 40A:65-18 Applicability of terms of existing labor contracts. 40A:65-19 Employment reconciliation plan; provisions. 40A:65-20 Constitution, appointment of management committee 40A:65-21 Apportionment of operating costs by management committee. 40A:65-22 Certification of costs and expenses by management committee. 40A:65-23 Termination of joint contract. 40A:65-24 Existing joint meeting, public school jointure unaffected. 40A:65-25 Findings, declarations relative to municipal consolidation 40A:66-2 Findings, declarations relative to municipal shared services energy authority. Debra Sopronyi, RMC, CMC, QPA, CMR Borough Clerk/Administrator , ext. 620

[Second Reprint] SENATE COMMITTEE SUBSTITUTE FOR. SENATE, No. 533 STATE OF NEW JERSEY. 215th LEGISLATURE ADOPTED FEBRUARY 27, 2012

[Second Reprint] SENATE COMMITTEE SUBSTITUTE FOR SENATE, No. STATE OF NEW JERSEY th LEGISLATURE ADOPTED FEBRUARY, 0 Sponsored by: Senator DONALD NORCROSS District (Camden and Gloucester) Senator STEVEN