Shared Services and Regional Collaboration General Government Steering Committee January 12, 2016 Rick Morse, Associate Professor UNC School of Government

During the recession, we saw local government outsource services and re- engineer others. In the next twenty years, we’ll see local governments use more and more innovative approaches to address their communities’ challenges. They’ll work more collaboratively with other cities and counties, to further leverage economies of scale. You’ll see more partnerships between government, nonprofits, and the private sector. Because as our challenges get more complex, we need more nuanced responses, beyond the traditional boundaries of local government. (Bob O’Neill, Executive Director, ICMA) The Future of Local Government

“Regional Collaboration” Municipal-County, County-wide or Multi-county… – Grants, contributions – Resource sharing – Cooperative purchasing – Service contracts – Joint operations – Joint facilities/assets – Transfer of functions – Merged departments – (New) Joint entities

SERVICE PROVIDER VS SERVICE PRODUCER

Chapter 160A, Article 20, Section 461 Any unit of local government in this State and any one or more other units of local government in this State or any other state (to the extent permitted by the laws of the other state) may enter into contracts or agreements with each other in order to execute any undertaking. The contracts and agreements shall be of reasonable duration, as determined by the participating units, and shall be ratified by resolution of the governing board of each unit spread upon its minutes (emphasis added).

Why Regional Collaboration? Economies of scale (budget savings) Boundary-crossing problems/issues Leveraging strengths Improve service delivery Source of innovation Reduce duplication, improve coordinated effort, achieve “functional consolidation”

Collaborative Challenges Time (and other resources) Turf – Psychology of community – Control, accountability Trust

Case Example – Lee County “Functional Consolidation” between Sanford and Lee County 1986 feasibility study by Chamber of Commerce Over three decades, many functions have been consolidated through various means “The result has eliminated duplication and allows both entities to provide efficient, high-quality services to residents” (Hal Hegwer, Sanford City Manager)

Various Mechanisms Service contracts – Tax collection – Fire protection Merged departments – GIS / Tax Mapping – Planning/Zoning/Comm unity Development – Building Inspections Transfer of functions – 911 Dispatch (city) – Animal Control (county) – Parks & Rec (county) – Water & Sewer (city) New entity – Sanford Area Growth Alliance (public-private partnership)

“Preconditions” for Success LEADERSHIP (aka “champions”) – From the “top” – From staff Trust, reciprocity, transparency – Trust: years to build, seconds to break – Communicate w/ stakeholders throughout Clear goals, measurable results Patience

Getting Started (see Zeemering & Dalabbio, 2013) 1.Create a team or task force to to explore opportunities. 2.Build on the strengths of participating governments. 3.Consider pilot projects that can reduce risk and provide an opportunity for “small wins.” 4.Carefully clarify and document roles and responsibilities with partners. 5.Be flexible and leave room for revising agreements as necessary.

Are you a collaborative leader?  Do you come across as someone who prefers to be the source of all new ideas?  Do others see you as someone who typically wants to find the answers to problems and challenges on your own?  How do you react when others’ perspective on an issue is very different from yours? Is that an irritation to be avoided? An inconvenience to be overcome? An asset to be used?  When you’re working on an issue with others, how likely are you to ask if there's anyone else with a stake in the issue?  When you’re trying to influence others, how much do you tend to push your own ideas, and to what extent do you use pull to invite other into the discussion? Russ Linden, 2002

Additional Resources “Interlocal Cooperation, Shared Services, and Regional Councils” by Ricardo S. Morse, in County and Municipal Government in North Carolina (UNC School of Government, 2014) A County Manager’s Guide to Shared Services in Local Government by Eric Zeemering & Daryl Delabbio (IBM Center for the Business of Government, 2013)