Bill Text: MI SB1086 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: Local government; intergovernmental affairs; intergovernmental transfers of employees and responsibilities; revise contents of contracts. Amends sec. 5 of 1967 (Ex Sess) PA 7 (MCL 124.505).
Spectrum: Partisan Bill (Republican 6-0)
Status: (Engrossed - Dead) 2010-06-30 - Referred To Second Reading [SB1086 Detail]
Download: Michigan-2009-SB1086-Engrossed.html
SB-1086, As Passed Senate, February 10, 2010
SUBSTITUTE FOR
SENATE BILL NO. 1086
A bill to amend 1967 (Ex Sess) PA 7, entitled
"Urban cooperation act of 1967,"
by amending section 5 (MCL 124.505), as amended by 1985 PA 10.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5. A joint exercise of power pursuant to this act shall
be made by contract or contracts in the form of an interlocal
agreement which may provide for:
(a) The purpose of the interlocal agreement or the power to be
exercised and the method by which the purpose will be accomplished
or the manner in which the power will be exercised.
(b) The duration of the interlocal agreement and the method by
which it may be rescinded or terminated by any participating public
agency prior to the stated date of termination.
(c) The precise organization, composition, and nature of any
separate legal or administrative entity created in the interlocal
agreement with the powers designated to that entity.
(d) The manner in which the parties to the interlocal
agreement will provide for financial support from the treasuries
that may be made for the purpose set forth in the interlocal
agreement, payments of public funds that may be made to defray the
cost of such purpose, advances of public funds that may be made for
the purposes set forth in the interlocal agreements and repayment
of the public funds, and the personnel, equipment, or property of 1
or more of the parties to the agreement that may be used in lieu of
other contributions or advances.
(e) The manner in which funds may be paid to and disbursed by
any separate legal or administrative entity created pursuant to the
interlocal agreement.
(f) A method or formula for equitably providing for and
allocating revenues, including, in the case of an authorized
undertaking that is publicly owned at the time the interlocal
agreement is entered into or becomes publicly owned during the time
the interlocal agreement is in effect, revenues derived by or
payable to any participating party or any other public agency which
revenues directly or indirectly result from that undertaking,
whether the revenues are in the form of ad valorem taxes on real or
personal property, taxes on income, specific taxes or funds made
available by the state in lieu of ad valorem property taxes or
local income taxes, any other form of taxation, assessment, levy,
or impost, or any money paid under or which revert from a tax
increment financing plan. The interlocal agreement may also provide
a method or formula equitably providing for and allocating revenues
derived from a federal or state grant or loan, or from a gift,
bequest, grant, or loan from a private source. The interlocal
agreement may also provide for a method or formula for equitably
allocating and financing the capital and operating costs, including
payments to reserve funds authorized by law and payments of
principal and interest on obligations. Each method or formula shall
be established by the participating parties to the interlocal
agreement on a ratio of full valuation of real property, on the
basis of the amount of services rendered or to be rendered, on the
basis of benefits received or conferred or to be received or
conferred, or on any other equitable basis, including the levying
of taxes or assessments on the entire area serviced by the parties
to the interlocal agreement, subject to such limitations as may be
contained in the constitution and statutes of this state, to pay
those capital and operating costs.
(g) The manner of employing, engaging, compensating,
transferring, or discharging necessary personnel, subject both to
the provisions of applicable civil service and merit systems, and
the following restrictions:
(i) The employees who are necessary for the operation of an
undertaking created by an interlocal agreement, shall be
transferred to and appointed as employees subject to all rights and
benefits. These employees shall be given seniority credits and sick
leave, vacation, insurance, and pension credits in accordance with
the records or labor agreements from the acquired system. Members
and beneficiaries of any pension or retirement system or other
benefits established by the acquired system shall continue to have
rights, privileges, benefits, obligations, and status with respect
to
such the established system. The political subdivisions to
which
the functions or responsibilities have been transferred shall
assume the obligation of any transportation system acquired by it
with regard to wages, salaries, hours, working conditions, sick
leave, health and welfare, and pension or retirement provisions for
employees. If the employees of an acquired system were not
guaranteed sick leave, health and welfare, and pension or
retirement pay based on seniority, the political subdivision shall
not be required to provide these benefits retroactively.
(ii) An employee who is transferred to a position with the
political subdivision shall not, by reason of the transfer, be
placed in any worse position until a new labor agreement is in
place with respect to worker's compensation, pension, seniority,
wages, sick leave, vacation, health and welfare insurance, or any
other benefits that the employee enjoyed as an employee of the
acquired system.
(iii) Nothing in this act requires that the political
subdivision pay to employees the highest wages and benefits
previously paid to any of the employees or their preexisting
bargaining units.
(iv) Notwithstanding subparagraph (iii), all existing and expired
labor contracts with an acquired system shall be assumed by the
political subdivision and remain in effect until a new labor
agreement is in place.
(h) The fixing and collecting of charges, rates, rents, fees,
loan repayments, loan interest rates, or other charges on loans,
where appropriate, and the making and promulgation of necessary
rules and regulations and their enforcement by or with the
assistance of the participating parties to the interlocal
agreement.
(i) The manner in which purchases shall be made and contracts
entered into.
(j) The acquisition, ownership, custody, operation,
maintenance, lease, or sale of real or personal property.
(k) The disposition, division, or distribution of any property
acquired through the execution of such interlocal agreement.
(l) The manner in which, after the completion of the purpose of
the interlocal agreement, any surplus money shall be returned.
(m) The acceptance of gifts, grants, assistance funds, or
bequests and the manner in which those gifts, grants, assistance
funds, or bequests may be used for the purpose set forth in the
interlocal agreement.
(n) The making of claims for federal or state aid payable to
the individual or several participants on account of the execution
of the interlocal agreement.
(o) The manner of responding for any liabilities that might be
incurred through performance of the interlocal agreement and
insuring against any such liability.
(p) The adjudication of disputes or disagreements, the effects
of failure of participating parties to pay their shares of the
costs and expenses, and the rights of the other participants in
such cases.
(q) The manner in which strict accountability of all funds
shall be provided for and the manner in which reports, including an
annual independent audit, of all receipts and disbursements shall
be prepared and presented to each participating party to the
interlocal agreement.
(r) The manner of investing surplus funds or proceeds of
grants, gifts, or bequests to the parties to the interlocal
agreement under the control of a legal or administrative entity
created under section 7.
(s) Any other necessary and proper matters agreed upon by the
participating public agencies.
