Bill Sims AMRRP Legal Advisor Arizona City Attorneys Summer Conference 2016 2 Lessons Learned from Yarnell Need correct indemnity Had it been written differently Prescott would have ID: 577391
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IGA Assistance Program and Law Enforcement Joint Dispatch IGA
Bill Sims, AMRRP Legal Advisor
Arizona City Attorneys
Summer Conference 2016Slide2
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Lessons Learned from Yarnell
Need correct indemnityHad it been written differently, Prescott would have had to indemnify the State for the State’s negligence
Need clear command & controlNeed to confirm insurance is availableRisk Pool undertook review of member IGAs - - hundreds of IGAs reviewedState Forestry IGAADOT IGAs
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Lessons Learned
Organizational StructurePreserving ImmunitiesCommand and ControlIndemnityInsuranceJoint Defense Agreement
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Organizational Structure
Create Independent Nonprofit under A.R.S. §11-952Be a vendorJointly act without creating nonprofitMulti-partiesTwo parties
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11-952
11-952. Intergovernmental agreements and contractsA. If authorized by their legislative or other governing bodies, two or more public agencies or public procurement units by direct contract or agreement may contract for services or jointly exercise any powers common to the contracting parties and may enter into agreements with one another for a joint or cooperative action or
may form a separate legal entity, including a nonprofit corporation, to contract for or perform some or all of the services specified in the contract or agreement or exercise those powers jointly held by the contracting parties.
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Independent Nonprofit
InsuranceIf in Risk Pool would have to join as memberIf not in Risk Pool, must procure insurance for the separate entityOrganizational CostsSeparate counselAudits
Articles and BylawsAnnual Reports7Slide8
Organizational Structure
Create Independent Nonprofit under A.R.S. § 11-952Be a vendorJointly act without creating nonprofitMulti-partiesTwo parties
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Simply Sell Service – as a Vendor
City of Phoenix Regional Dispatch ServicesNo indemnityReturn equipmentRepair equipment if damaged
Prescott Dispatch ServicesIndemnity based on fee paid and not based on liability9Slide10
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INTERGOVERNMENTAL AGREEMENTFOR THE
PHOENIX FIRE DEPARTMENTREGIONAL SERVICE SYSTEMTHIS AGREEMENT is made and entered inti this 1st day of July 2005, by and between the CITY OF PHOENIX, hereinafter referred to as “
Phoenix
” and the participating agencies of the
PHOENIX FIRE DEPARTMENT REGIONAL SERVICE SYSTEM
(“
System
”), hereinafter referred to as “
Members
” and listed in Appendix “A”, of this Intergovernmental Agreement, Titled
PHOENIX FIRED DEPARTMENT REGIONAL SERVICE SYSTEM MEMBER AGENCIES
”.
WHEREAS
, agreements for mutual assistance and intergovernmental cooperation in public safety areas, including operations and management of fire and police or the public safety related agencies have existed between municipalities and governmental jurisdictions; and
WHEREAS
, it is the desire of the municipalities, governmental jurisdictions, agencies and Fire Districts participating in this intergovernmental agreement, to work together for mutual benefit of our communities, the public and our personnel; and
WHEREAS
, Members desire to participate in the Phoenix Fire Department Regional Service System in order to more effectively provide emergency fire, medical and other services; and
WHEREAS
, Phoenix desires the participation of Members in the System to more effectively provide emergency fire, medical and other services;
NOW THEREFORE
, in consideration of the mutual promises and covenants herein contained, it is agreed by the parties as follows:Slide11
Simply Sell Service
City of Phoenix Regional Dispatch ServicesNo indemnityReturn equipmentRepair equipment if damagedPrescott Dispatch ServicesIndemnity based on fee paid and not based on liability
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Indemnification
In the event any litigation, claims or other costs being incurred by the City as a result of its operation of the Dispatch Center, then and in that event each Participating Agency shall share in the cost thereof pursuant to the formula as provided for in Article 5 above.
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Joint Action Without Creating Nonprofit – Two Parties
Snowflake-TaylorAllocate costIdentify real property and personal propertyGovernance – Advisory CommitteeBe careful to avoid liability caused by decisions of the committee
Could trigger E&O insurance requirements14Slide15
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Joint Action Without Creating Nonprofit – Two Parties
Snowflake-TaylorAllocate costIdentify real property and personal propertyGovernance – Advisory CommitteeBe careful to avoid liability caused by decisions of the committee
Could trigger E&O insurance requirements16Slide17
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Joint Action Without Creating Nonprofit – Two Parties
Cottonwood – Sedona Fire DistrictLimits liability to insurance – not necessarily a good ideaFlorence – Superior Joint DispatchMuch like a vendor selling services to one other party
But, adds Joint Defense Agreement19Slide20
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Joint Action Without Creating Nonprofit – Two Parties
Cottonwood – Sedona Fire DistrictLimits liability to insurance – not necessarily a good ideaFlorence – Superior Joint DispatchMuch like a vendor selling services to another party
Includes mediationBut, adds Joint Defense Agreement22Slide23
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Joint Action Without Creating Nonprofit – Multi-parties
Cochise County and Fire Districts and MunicipalitiesCommand and controlInformal joint defense agreementPreserve workers’ compensation immunities
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Joint Action Without Creating Nonprofit – Multi-parties
White Mountain Joint DispatchCreates a Board of DirectorsWhat happens if a 4-3 vote of the Board triggers liability causing event?Need E&O insurance
Don’t have overlapping and unnecessary insurance but require one of the participating agencies to take the lead: the County.28Slide29
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Preserve Immunities
Workers’ CompNoticeContract claimQualified and Absolute Immunity - - only if a public entityA.R.S. § 12-520.01 and A.R.S. § 12-520.02
Address Gross Negligence StandardA.R.S. § 12-715 – Donor of PropertyA.R.S. § 9-500.02 – EMTs providing emergency medical servicesForestry IGA
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Insurance
If you create a separate governing body, even without creation of nonprofit corporationE&O insuranceIf handle money, need crime insuranceIf housed in property not owned by one of the members, need property insuranceIf have independent employees, need separate workers’ compensation insurance
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Joint Defense Agreement
Ethical conflict rules prevailCounty Risk Pool and Cities & Towns Pool working on modelWorks until it fails, but worthwhile
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Indemnity
State ForestryADOT
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Questions?
Bill Sims2020 North Central Avenue, Suite 670
Phoenix, AZ 85004
602-772-5501
wjsims@simsmurray.com