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THE SANDBOX RULES BASICS OF INTERGOVERNMENTAL AGREEMENTS

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THE SANDBOX RULES BASICS OF INTERGOVERNMENTAL AGREEMENTS

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  1. THE SANDBOX RULES BASICS OF INTERGOVERNMENTAL AGREEMENTS Andrew J. McGuire

  2. Authorization to enter into IGAs • A.R.S. § 11-951 – The “Public Agency” Players • The federal government or any federal department or agency; Indian tribes; any state, including all departments, agencies, boards and commissions of any state; counties, school districts, fire districts, cities, towns, all municipal corporations, and any other political subdivisions of any state

  3. Authorization for IGAs • A.R.S. § 11-952(A) • Authorized by each public agency’s governing body • Contract or agreement for services or joint exercise of common power • Even if all contracting parties are public agencies, an intergovernmental agreement can only be used when each of the agencies has the power to perform the services or action contemplated in the contract pursuant to which they agree to allocate responsibilities between them. Op.Atty.Gen. No. I84-135, 1984 WL 61334

  4. Requirements for IGAs • A.R.S. § 11-952(B) - Agreement shall specify: • Duration • Purpose • Financing/budgets (remember budget law) • Method for termination: disposing of property • If SLE to be formed, organization, composition, title and nature of entity • Any other necessary and proper matters

  5. Requirements for IGAs – cont. • A.R.S. § 11-952(C) – Cannot relieve any public agency of any obligation or responsibility imposed on it by law • A.R.S. § 11-952(D) and (E) - Review by attorney for agency (proper form and within powers and authority); not applicable to federal or other state

  6. Requirements of IGAs – cont. • A.R.S. § 11-952(F) – Approved by ordinance or resolution or “otherwise pursuant to the laws applicable to the governing bodies of the participating agencies” • A.R.S. § 11-952(G) - May be extended perpetually, but each extension may not exceed the duration of the previous agreement

  7. Requirements of IGAs – cont. • A.R.S. § 11-952(H) – No payment allowed until fully-approved written contract in place • A.R.S. § 11-952(I) - A person who authorizes payment of any monies in violation of this section is liable for 120% of the monies paid plus legal interest from the date of payment

  8. Common types of IGAs; Considerations • Premises/Facility Use – i.e. joint training (GRPSTC), recreational programs (w/schools) • Workers/People – i.e. SROs, signal technicians, building inspectors – Remember to add workers’ compensation provision - A.R.S. § 23-1022(D) • Employee is deemed to work for both public agencies; main employer pays • Must post notice of above (A.R.S. § 23-1022(E)) • Services – i.e. elections (Maricopa County), solid waste (Glendale landfill), human services (SWFAC)

  9. Less Common Forms of IGAs • Pooling of Resources A.R.S. § 11-952.01 (A) – Property, fidelity and liability insurance and claims (B) – Workers’ compensation (C) – Life, health, or disability insurance and claims (D) – Property and liability losses associated with construction projects

  10. Separate Legal Entities – A.R.S. § 11-952.02 • Can be formed by cities, towns, counties and certain special districts • Is a political subdivision of the State • Governmental and proprietary powers • Constitutional rights and immunities • Governing body - elected officials from one or more of the participating public agencies

  11. Separate Legal Entities – A.R.S. § 11-952.02 • Powers: • Contract for an “undertaking” • Purchasing, constructing, leasing or acquiring real or personal property, works or facilities • Improving, reconstructing, extending or adding to property, works or facilities owned by SLE • “Any program of development” related to above • Providing utility services, including buying, leasing, acquiring extending existing facilities

  12. Separate Legal Entities – A.R.S. § 11-952.02 • Issue revenue bonds, even if one party has no bonding authority for undertaking • Payable only from revenues of undertaking • Not included in debt limit

  13. Separate Legal Entities – A.R.S. § 11-952.02 • Not Authorized: • Condemnation of another political subdivision or PSC • Public Agency exercising a power or engaging in a business not otherwise allowed • Statutory constraints • TITLE 34 • 11-952(C)

  14. Questions?

  15. Thank you! Andrew J. McGuire Gust Rosenfeld, P.L.C. One East Washington Street, Suite 1600 Phoenix, AZ 85004-2553 (602) 257-7664 amcguire@gustlaw.com