ITEM 1_attachment 3 (1)Exhibit D
Best Practice Suggestions
Suggest that joint powers agreements consider the following:
® Anticipate future growth and changes of communities when writing agreement or
contract
® Create "prenup"
® Create "exit clause" in the original agreement or contract that addresses
(1) whether the joint powers agreement remains in effect and if so under
what terms and conditions
(2) the distribution of all property or assets acquired by the joint powers
entity during the term of the agreement
(3) the effects on volunteer firefighter service pensions and benefits.
® Consider establishing a minimum period of time that must pass before a
municipality can withdraw from the agreement
® Consider requiring a notice period (no less than 12 months) before an entity may
withdraw from the agreement
® Consider defining that any withdrawal from the agreement will be effective on
December 31
® Consider the pros and cons of different types of board representation: equal
representation on the board or proportional representation to budget (voting share
is equal to budget share); and allow for flexibility
® Identify who will serve on the joint powers board and whether the individuals will
be elected or appointed municipal officials
® Consider having non -elected officials or community representatives on the board,
or citizen ex-officio members
® Specify that trustees on the joint powers board should serve with the best interest
of the public considered
® Identify who from the joint powers board will serve as trustees on the relief
association's board
® Identify who will ratify relief association benefit level and bylaw changes and pay
required contributions to the relief association
® Define and provide options of how surplus assets following a relief association
dissolution will be distributed to the municipalities that are party to the joint
powers agreement
® Establish a method or procedure for calculating the value of each contracting
party's operating contributions to the joint powers entity
® Specify when the budget will be adopted and ensure that enough time is permitted
for it to be implemented (considerations include certifying levies)
® Define and provide options of how any unfunded liability following a relief
association dissolution will be shared by the municipalities that are party to the
joint powers agreement
® Refer disputes to the Office of Administrative Hearings for resolution
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® Require an annual review of the agreement
® Be aware that the joint powers entity may have additional reporting and auditing
requirements
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