IGA Assistance Program

Scott Barber, AMRRP PresidentBill Sims, AMRRP Legal Advisor

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Lessons Learned from Yarnell

• Need correct indemnity• Had it been written differently, City would have had to

indemnify the State for the State’s negligence

• Need clear command & control• Need to confirm insurance is available

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State Forestry Response

• Send IGAs to Fire Chiefs• Replace prior indemnity where each party responsible

for its bad acts• Now cities/towns could be contractually obligated to

indemnify State for State’s partial negligence• Increased insurance requirements when insurance for

wildland firefighting is challenging

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Many Upstream IGAs

• ADOT• Forestry• Department of Homeland Security• Border Patrol• Department of Motor Vehicles• County Flood Control Districts

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IGA Assistance Program

• Review indemnity provisions• Evaluate insurance requirements• Suggest efficient organizational structure• Recommend joint defense arrangements when viable

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Impact

• Mutual Aid Agreement – Hazardous Materials Disposal• Joint Dispatch Agreement• State Forestry IGA

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Mutual Aid Agreement• Four cities set up joint process for collecting and

disposing hazardous materials.• As written:

• Lead cities primarily liable• Insurance limited• Mutual indemnity results in four law firms if third-party claim is

brought• Fixes

• Get vendor to provide the insurance• If can’t, put one lead city in charge with insurance covering all

parties• All four parties pay• Agree to Joint Defense Agreement 8

Joint Dispatch Agreement

• County and Local Cities/Towns/Fire Districts• County to lead, provide funds and assume nearly all

responsibilities• County would likely be liable for all liability

• Indemnity could have resulted in fourteen different law firms responding to third-party claims• Fixes

• Create separate non-profit entity who would manage the dispatch center

• The non-profit would obtain insurance to protect the participating public agencies

• Avoids armies of lawyers fighting over claims. 9

State Forestry IGA

• Make sure the IGA comes to Council for approval• Insist on mutual indemnity• Not one-sided

• Obtain adequate insurance

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How to Proceed

• Address imbalance of negotiating leverage• Get State to revise indemnity language• Adopt new legislation

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Audit All IGAs in Areas of Risk

• IGA’s govern and allocate the risk.• The State is trying to shift the risk to you.• Don’t stumble into liability.

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Land Use Assistance Life Line (LUAL)Bill Sims, Sims & Murray

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HISTORICAL ORIGINS –HISTORY OF LAND USE CLAIMS

Land Use Liability Frequency Experience as of 12/31/03

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5

10

15

20

25

30

35

40

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

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2000

2001

2002

2003

Years

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er o

f L

and

Use

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ims

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COMPLICATING FACTORS

• Municipal budget shortfalls.• Bear market hurts development projects.• Greater public scrutiny.• Complex intersection of legal constraints.

LUAL Update

• Provides Risk Pool members free legal advice• Land use laws• Zoning

• Types of matters• Development Agreements• Plats• Zoning disputes

• Until now, relatively quiet• Does not replace your attorney; meant to assist your

attorney 16