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December
16, 2011
Governor Signs
Municipal Partnership Act <=
/span>
By Scott G. Smith
On Tuesday, December 13, 2011, Governor Snyder signed
Public Act 258, the "municipal partnership act" (the
"MPA") and its tie-barred companion, Public Act 259, th=
at
modifies the Public Employment Relations Act to accommodate the M=
PA and
changes in other local government cooperation statutes also appro=
ved
that day. While in many ways similar to other local government
cooperation statutes, the MPA offers some unique features:
- =
The
MPA offers flexibility in the structure of a joint venture w=
ith
another local government (defined to mean county, city, vill=
age
or township). The joint venture can be a separate entity or =
have
another type of structure.
- =
Service
consolidations can occur under the MPA despite limiting local
charter or ordinance provisions. For example, some local
charters require the city to have its own fire department or
require a certain fire millage to be used only in support of=
the
city's fire department. Such provisions might otherwise limit
the ability to consolidate services.
- =
The
MPA provides the ability for the joint venture to levy up to=
5
mills, though that ability was carefully crafted to ensure t=
he
governing bodies of all participating municipalities and the
affected voters in each participating municipality approve t=
he
levy. It was also written to ensure the millage levied by the
joint venture and each participating local government does n=
ot
together exceed the applicable constitutional and statutory
millage caps for each participating local government. <=
/o:p>
- =
Agreements
under the MPA are not subject to referendum.
- =
The
decisions as to whether or not to enter into a joint endeavo=
r,
the procedures for entering into a joint endeavor and the
identity of the other parties to a joint endeavor are prohib=
ited
subjects of bargaining. Existing local government employers =
and
the unions representing their employees may, but are not
required to, bargain over terms of a contract for a joint
endeavor so that the contract could (if all the other parties
agreed), but would not have to, include terms dealing with
employment transition issues.
- =
If the
parties to a contract for a joint endeavor decide to provide=
a
service none of them already provides, they will need to obt=
ain
competitive bids for that service.
Clark Hill worked with the cities of Wyoming and Gra=
nd
Rapids to draft the MPA and to work with legislative leaders, uni=
ons,
business groups and others to shape its final language and promote
its adoption.
Collective Bar=
gaining
Rights of Public Employees Affected by Municipal Consolidations
By Scott G. Smith
On Tuesday, December 13, 2011, Governor Snyder signed
Public Act 261 amending 1988 PA 57 that allows intergovernmental
agreements for emergency services, Public Act 262 amending 1967
(extra session) PA 8 that addresses intergovernmental transfers of
functions, and Public Act 263 amending 1967 (extra session) PA 8,=
the
Urban Cooperation Act. All of these bills removed controversial
language in these statutes that some claimed required the payment=
of
the highest compensation to transferred public employees when con=
solidating
municipal services.
The amendments are nearly identical in language and =
all
have the same effects which are generally summarized as follows:<=
o:p>
- =
Management
rights are expressly addressed.
- =
The
contents or language of the intergovernmental contracts resu=
lting
from the statute is a "permissive" rather than a
mandatory subject of bargaining.
- =
An
agreement pursuant to the statute will take effect at least =
180
days before any employment, functions or equipment is
transferred pursuant to the agreement.
- =
Subject
to certification and decertification rights under the Public
Employment Relations Act (the "PERA"), employees w=
ho
are transferred shall be represented by their current unions=
and
any conflicts (resulting from multiple claims of representat=
ion
or due to the lack of representation of some employees who w=
ish
to be represented) that are not resolved by a voluntary mutu=
al
agreement will be addressed by a representation election
conducted by the Michigan Employment Relations Commission
(MERC).
- =
The
current collective bargaining agreements covering transferred
employees will remain in effect until the earlier of its
collectively bargained modification or 6 months after the
transfer occurs (i.e., a year after the effective date of the
agreement). Any MERC representation election does not affect
this 6 months' time period.
- =
Collective
bargaining of an agreement with the new employer has to begi=
n at
least 6 months before the transfer of employment occurs.
- =
Nothing
within any of the new statutes requires a public entity or j=
oint
system to assume a collective bargaining agreement between
another public entity and its employees. <=
/li>
- =
In the
absence of a mutual agreement, there will be a merged single
seniority list covering all employees from the participating
municipalities to be used for such things as initial
assignments, layoffs, recalls, and job bidding. Disputes abo=
ut
this list will be heard by a single arbitrator appointed by
MERC.
Public Act 259 and Public Act 260, approved by the
Governor on the same day, make the PERA subject to the terms of t=
hese
new statutes and make a public employer's decision to consolidate
public employees or services, and to renegotiate existing bargain=
ing
agreements upon consolidation, a prohibited subject of collective
bargaining.
If you have any questions regarding any of the above
information please contact your Clark Hill municipal attorney.
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