(a) Ordinance or resolution.--A local government may enter into intergovernmental cooperation with or delegate any functions, powers or responsibilities to another governmental unit, local government or authority as defined in section 5602 (relating to definitions) upon the passage of an ordinance or resolution by its governing body. If mandated by initiative and referendum in the area affected, the local government shall adopt such an ordinance or resolution.

(b) Compliance by authorities.--An authority as defined in section 5602 may not share or be delegated any function, power or responsibility through an agreement under this subchapter unless the function, power or responsibility is authorized by both the law under which the authority was created and the powers or purposes of the authority contained within its articles of incorporation.

(c) Council of governing bodies.--An intergovernmental agreement creating a council or consortium of governing bodies or similar entity separate from the organizing governing bodies may not be entered into unless by ordinance. A municipality may join an existing intergovernmental cooperation agreement of other municipalities whereby such an entity was created by resolution or by ordinance.