Metropolitan associations – a new form of cooperation among municipalities and counties

The Metropolitan Associations Law of 9 October 2015 contains solutions which in the future will affect the functioning of local governments and the quality of life of metropolitan residents. It facilitates more effective coordination of the activities of municipalities and counties in several spheres of activity, primarily through better organisation of public transport in metropolitan areas.

What conditions must be met

The Law makes it possible to create metropolitan associations as gatherings of local government units situated within a metropolitan area, that is, areas influenced by a city where a provincial governor or provincial assembly is located. Such a zone must feature strong functional ties and advanced urbanisation processes, and must also be inhabited by at least 500,000 residents. At the legislative work stage, the Sejm rejected an amendment by the Senate requiring a population of 350,000 people for the area of the metropolis, as a result of which several large cities, such as Białystok, cannot take advantage of the Law. The borders of individual metropolitan areas are established by the Council of Ministers by way of a regulation which states what municipalities comprise those areas.

Important

The creation of metropolitan associations in particular metropolitan areas requires a regulation of the Council of Ministers. A prerequisite for the issuance of such a regulation is a favourable opinion by councils comprising at least 70 per cent of the towns under county law situated within the borders of the metropolitan area, and by councils comprising at least 70 per cent of the municipalities which do not have town status under county law situated within the borders of the metropolitan area, and by councils comprising at least 50 per cent of the counties within which at least one municipality situated within the borders of the metropolitan area is located. It will also be necessary to conduct consultations with municipal residents and to obtain opinions from the relevant provincial assemblies and the provincial governor, although in these cases the Law does not state that those opinions (or the results of the consultations) must be positive.

A union which is not entirely voluntary

It results from the Law that a metropolitan association can only be created as part of an entire established metropolitan area, which raises the question of whether such an association is entirely voluntary. It may happen that municipalities or counties which, in the opinions they issue, do not express a willingness to take part in a metropolitan association may be forced to do so because of the will of the majority of the other local government units involved. It should be noted here that participation in a metropolitan association entails a local government unit participating in certain costs related to the operation of that association. In the context of the above restriction on the voluntary nature of that participation, doubts may arise as to whether those provisions can be reconciled with Article 165 par. 2 of the Constitution of the Republic of Poland setting out the principle of the autonomy of units of local government.

Transport above all

Pursuant to Article 12 of the Metropolitan Associations Law, a metropolitan association will carry out public tasks within the scope of forming zoning plans, developing the area of the association, jointly managing public transport plans within the area, cooperating in establishing the course of domestic and provincial roads within the area, and promoting the metropolitan area. The key role to be played by metropolitan associations, however, is organising public transport, because the performance of this task has been entirely excluded from the duties of municipalities and counties participating in and subject to a metropolitan association (pursuant to Articles 52 and 63 of the Law). A metropolitan association will therefore have to develop a transport plan for its area. As from the day the Law enters into force, existing transport plans developed by municipalities, counties and associations thereof will lose their validity. Further, a metropolitan association will be obliged to develop a single ticket tariff system for its area, and all municipal and county organisers of passenger transport within that area will be required to participate in that system (where they still wish to organise transport). These solutions may lead to a harmonisation and improvement in the quality of transport within metropolitan areas by establishing a single ticket type and adjusting transport schedules to take account of the entire metropolitan area. Up to now, large towns and suburban municipalities have organised public transport by means of multilateral agreements or ad hoc arrangements, which has meant that transport solutions have not formed a coherent system. Such solutions have been fairly complicated for residents, since some residents have the right to a common ticket, while others find themselves outside ticket zones. It is also worth pointing out the longevity of this legislative solution, which is more secure than bilateral or multilateral public transport agreements concluded between municipalities. An example of this is Wołomin, near Warsaw, where, as a result of a local conflict which has existed since 1 July 2013, the common ticket allowing passengers with a Warsaw transport ticket to travel on Mazowieckie Railways and Warsaw Commuter Railway trains has been revoked. Further, with additional funds from the state budget which on the basis of the Law can be obtained by a metropolitan association, there is a chance that the number of trains and commuter lines will increase, or that ticket prices will decrease, especially in Zone 2 ticket zones, so that travelling by public transport to the centre of a metropolis will be affordable for passengers. Another consequence of creating a metropolitan area will certainly be an increase in the reach of uniform metropolitan transport.

Principles of organisation

The Law grants a metropolitan association legal personality. For the performance of the public tasks foreseen in the Law, a metropolitan association will be able to create separate organisational units, to conclude understandings with local government units or government administrative authorities, and to conduct business activities (although only such as do not extend beyond the realm of public purpose tasks). A metropolitan association will also be able, on the basis of the Associations Law, to create an association with local government units and other metropolitan associations, with the proviso that there must be at least three founders of such an association (similarly to the creation of associations by municipalities, counties or provinces on the basis of laws concerning municipal, county and provincial governments).

Authorities of an association

The authorities of a metropolitan association will be an assembly and a three-person management board. The assembly will comprise two delegates from each local government unit (in the case of a municipality – the mayor and a municipal councillor, in the case of a county – the county administrator and a county councillor). The management board of a metropolitan association will be elected by the assembly, where a member of the management board cannot at the same time be a member of a local government unit, a mayor or deputy thereof, or a provincial governor or vice governor. The authority of the assembly of an association includes adopting resolutions on: the development strategy of the association, the statute of the association, framework studies of conditions and directions for zoning, the association’s budget, appointing and recalling the treasurer of the metropolitan association (upon a motion by the management board), and adopting resolutions on matters concerning assets of the association. Within the last of the above-mentioned areas, the assembly will be able to decide on bonds issues. The assembly will not only be a constitutive body, but will also be the body which exercises supervision over the association. As results from Article 23 of the Law, that supervision will be exercised by an audit committee appointed by the assembly, where the committee will comprise delegates of local government units (where the chairperson and vice chairperson of the assembly will not be eligible to sit on the committee). The duties of the audit committee will include issuing opinions on the association’s budget and submitting motions to the assembly on granting or not granting the management board a discharge from liability for the performance of its duties.

Adoption of resolutions

Resolutions of the assembly of a metropolitan association will in principle be adopted by a qualified majority of votes, where the requirement to obtain a qualified majority is met when votes in favour of the adoption of a resolution are cast by a majority of the local government units of which the association is composed, or by that number of municipalities whose residents comprise a majority of the population of the metropolitan area.

Important

Each local government unit is entitled to one vote. For the needs of determining a majority in voting, the legislator has foreseen a situation in which two delegates of a given unit vote differently – in such a case it will be deemed that that particular local government unit abstained from voting. The duties of the management board constituting the executive body of a metropolitan association will include: carrying out resolutions of the association’s management board, managing the property of the association, adhering to the budget, and exercising management control over organisational units created by the metropolitan association. Resolutions of the association will be adopted in principle by a simple majority of votes in an open ballot, in the presence of at least two members of the management board. The duties of the management board will be carried out with the assistance of the metropolitan office, to which office the relevant provisions concerning the marshall’s office will apply.

Under control

The activities of a metropolitan association will of course be subject to control, to be exercised by the prime minister and by the relevant provincial governor. Pertaining to financial matters, supervision over an association will be exercised by the relevant regional court of auditors. The income of a metropolitan association will consist of: contributions from municipalities in the metropolitan area, a share of personal income tax from natural persons residing within the area of the metropolitan association, income obtained by metropolitan budget units and inflows from metropolitan budgetary establishments, subsidies from the state budget, and subsidies from local government budgets.

Important

The Law enters into force on 1 January 2016, while the first metropolitan association will not be created before 1 July 2016, and will be able to begin carrying out its duties as from 1 January 2017, as results from Article 8 par. 2 of the Law.

Source
Rzeczpospolita