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INTERGOVERNMENTAL AGREEMENT Between THE OFFICE of the ARIZONA ATTORNEY GENERAL, ARIZONA DEPARTMENT OF ADMINISTRATION and the SUPERIOR COURT OF ARIZONA in MARICOPA COUNTY and MARICOPA COUNTY THIS AGREEMENT is made and entered into by and between the Office of the Arizona Attorney General, the Department of Administration, and the Superior Court of Arizona in Maricopa County, hereinafter referred to as “the State,” and Maricopa County, Arizona, a political subdivision, hereinafter referred to as “the County” (collectively, “the Parties”). WHEREAS, the Attorney General is responsible for providing legal services to state agencies pursuant to A.R.S. § 41-192 and the Arizona Department of Administration, Risk Management Division, is responsible for handling state employee workers’ compensation claims pursuant to A.R.S. § 41-621 and the Maricopa County Risk Management Department is responsible for handling county employee workers’ compensation claims pursuant to A.R.S. § 11-981. The Parties are authorized to enter into this Agreement pursuant to A.R.S. § 11-952; and WHEREAS, this Agreement is a continuation of the same arrangement amongst the Parties - without lapse - as set forth in the Intergovernmental Agreement dated June 21, 1995, as amended on January 17, 2007; and WHEREAS, the Parties agree that this Agreement will be a cost effective measure for both Parties; NOW, THEREFORE, IT IS MUTUALLY AGREED by and between the Parties as follows: 1. PURPOSE Case law has determined that certain agencies and functions once considered to be within the purview of County government do in fact fall under the control 1 and responsibility of the State. See State v. Pima County Adult Probation Dep’t, 147 Ariz. 146 (App. 1985). Until 1986, the County afforded workers’ compensation coverage and related legal representation to these agencies and functions. It is the purpose of this Agreement to provide that these services be afforded by the County rather than by the State. 2. SCOPE This Agreement is intended to provide that the County in place of the State shall administer a workers’ compensation program on behalf of the State with respect to employees of the Superior Court of Arizona in Maricopa County (including Juvenile Court Centers, Adult Probation Department, Law Library, Court Department of Administration & Office of the Jury Commissioner, Conciliation Court, Office of Clerk of the Superior Court, and Automated Court System, hereinafter referred to as “affected agencies”). The County shall be responsible for (i) obtaining and administering workers’ compensation coverage, including, but not limited to, case management and payment of claims; (ii) representation in all workers’ compensation actions; and (iii) all legal advice and representation relating to workers’ compensation issues. The Superior Court agrees to promptly report all work-related illnesses and accidents/injuries relating to employees of the affected agencies to the County’s Risk Management Department. The Superior Court also agrees to make every reasonable effort to return injured employees of affected agencies to modified duty following a work-related accident/injury. The County reserves the right to inspect the affected agencies of Superior Court’s premises and operations and give reports to the Superior Court on the safety conditions found at the worksites of affected agencies, but is not obligated to conduct any such inspections or provide any such reports. 3. TERM OF AGREEMENT The term of this Agreement is ten (10) years, beginning July 2, 2016 and ending July 1, 2026, unless terminated earlier pursuant to paragraphs 4, 8, 10, or 13 below. This Agreement shall become effective as of the date it is fully executed by the Parties. Not less than thirty (30) days prior to the expiration of this Agreement the Parties shall confer with each other, as well as with those 2 agencies affected by this Agreement, and determine if written consent to continue the Agreement will be forthcoming. 4. CANCELLATION Either Party may elect to cancel this Agreement. Prior to notice of cancellation, the cancelling party must advise and confer with the other Party. Notice of cancellation of this Agreement shall be given to the other Party in writing no less than sixty (60) days prior to the effective date of the cancellation. 5. COVERAGE AND PAYMENT The County agrees to include the affected agencies in its insurance and/or self- insurance programs and to cover all workers’ compensation losses according to the terms of its program. The affected agencies shall contribute, as do other departments of County Government, from their budgets to the County insurance/self-insurance program an amount calculated by the County’s Risk Management Department or designee based upon the affected agencies’ loss history and actual salary adjusted by the National Council on Compensation Insurance (NCCI) classification system. The amount of said contribution, the determination of what constitutes a covered event of an employee, and the disbursement of funds contributed shall be the sole prerogative of the County according to and consistent with the policies which govern its insurance/self- insurance program. The County will provide an identical coverage for those agencies as would the State, for workers’ compensation. 6. INDEMNIFICATION The Arizona Department of Administration, the Superior Court and the County (each party as “Indemnitor”) agree to defend, indemnify, and hold harmless the other party (as “Indemnitee”) from and against any and all claims, losses, liability, costs, or expenses (including reasonable attorney’s fees) (hereinafter collectively referred to as “Claims”) arising out of bodily injury of any person (including death) or property damage, but only to the extent that such Claims which result in vicarious/derivative liability to the Indemnitee are caused by the act, omission, negligence, misconduct, or other fault of the Indemnitor, its officers, officials, agents, employees, or volunteers. The State of Arizona is 3 self-insured per A.R.S. § 41-621 and the County is self-insured per A.R.S. § 11- 981. 7. MAINTAINING AND PRODUCING RECORDS Pursuant to A.R.S. §§ 35-214 and 35-215, the County shall retain, and shall require all of its subcontractors to retain for inspection and audit by the State all books, accounts, reports, files, and other records relating to the bidding and performance of this Agreement for a period of (5) five years after its completion. All records shall be subject to inspection and audit by the State of Arizona at reasonable times. Upon request by the State of Arizona, the County shall produce the original of any or all such records at an office designated by the State of Arizona. 8. CANCELLATION FOR CONFLICT OF INTEREST Pursuant to A.R.S. § 38-511, the State, its political subdivisions or any department or agency of either may, within three years after its execution, cancel any Agreement, without penalty or further obligation, made by the State, its political subdivisions, or any of the departments or agencies of either if any person significantly involved in initiating, negotiating, securing, drafting or creating the Agreement on behalf of the State, its political subdivisions or any of the departments or agencies of either is, at any time while the Agreement or any extension of the Agreement is in effect, an employee or agent of any other Party to the Agreement in any capacity or a consultant to any other Party of the Agreement with respect to the subject matter of the Agreement. 9. USE OF ARBITRATION The Parties to this Agreement agree to resolve all disputes arising out of or relating to this Agreement through arbitration, after exhausting applicable administrative review, to the extent required by A.R.S. § 12-1518, except as may be required by other applicable statutes. 10. NON-AVAILABILITY OF FUNDS Every payment obligation of the Parties under this Agreement is conditioned upon the availability of funds continuing to be appropriated or allocated for the payment of such obligation. If funds are not allocated and available for the 4 continuance of the Agreement, this Agreement may be terminated at the end of the period for which funds are available. No liability shall accrue to any Party in the event this provision is exercised, and no Party shall be obligated or liable for any future payments or for any damages as a result of termination under this paragraph. 11. GOVERNING LAW This Agreement shall be governed, construed, and enforced in accordance with the laws of the State of Arizona. 12. NON-DISCRIMINATION The Parties shall comply with Executive Order 2009-9, which mandates that all persons, regardless of race, color, religion, sex, age, or national origin shall have equal access to employment opportunities, and all other applicable state and Federal employment laws, rules, and regulations, including the Americans with Disabilities Act. The Parties shall take affirmative action to ensure that applicants for employment and employees are not discriminated against due to race, creed, color, religion, sex, national origin or disability. 13. VERIFICATION REGARDING COMPLIANCE with A.R.S. § 41-4401 The Parties warrant compliance with all Federal immigration laws and regulations relating to employees and warrants its compliance with Section A.R.S. § 23-214, Subsection A. (That subsection reads in part: “After December 31, 2007, every employer, after hiring an employee, shall verify the employment eligibility of the employee through the e-verify program.”) A breach of a warranty regarding compliance with immigration laws and regulations shall be deemed a material breach of the Agreement and the violating party may be subject to penalties up to and including termination of the Agreement. 14. AMENDMENTS AND MODIFICATIONS This Agreement may be amended or modified at any time by mutual agreement. No agent, employee or other representative of either party is empowered to alter any of the terms of the Agreement, unless done in writing and signed by the 5 authorized representatives of both Parties. APPROVED AND ACCEPTED BY: Maricopa County State of Arizona ___________________________ ______________________________ Denny Barney Office of the Arizona Attorney General Chairman, Board of Supervisors Date: Date: ___________________________ _______________________________ Maricopa County Risk Arizona Department of Administration Management Department Risk Management Department Date: Date: ___________________________ Superior Court of Arizona in Maricopa County Date: ATTESTED TO: _________________________________________ Clerk of the Maricopa County Board of Supervisors Date: APPROVED AS TO FORM: ___________________________ _____________________________ Maricopa County Attorney Office of the Arizona Attorney General Date: Date: 6