FY 2014 IGA DOCUMENT SIGNED BY STATE.PDF

KR13-0101
INTERGOVERNMENTAL AGREEMENT
BETWEEN MARICOPA COUNTY AND THE STATE OF ARIZONA
REGARDING PAYMENT FOR SUPERIOR COURT JUDGES' BENEFITS
This Intergovernmental Agreement ("Agreement") is between the County of Maricopa, a
political subdivision of the state("County") and the State of Arizona, acting through the
Arizona Department of Administration, ("State") (collectively, "Parties").
STATUTORY AUTHORIZATION
1. A.R.S. §§ 11-251(34) and (50) authorize the County and A.R.S. §§ 38-651 through
38- 658 authorize the State to provide employee benefits through cafeteria plans.
2. A.R.S. §§ 11-951 et seq. authorize public entities to enter into intergovernmental
Agreements for the provision of services or for joint or cooperative action.
BACKGROUND
3. Up until certain statutory changes described below, Judges of the Superior Court
of Arizona in Maricopa County ("Judges") received half of their annual salaries
from the State and half from the County, and had the option of selecting employee
benefits provided by the State or those provided by the County. For the Judges
selecting State-provided benefits, the employees' contribution to benefits
payments was deducted from the portion of the salary paid by the State.
4. In the Forty-Ninth Legislature, Seventh Special Session, the Legislature enacted
House Bill 2006 as Laws 2010, chap. 6, § 2, with the following effect: A.R.S. §
12-128 was amended, effective June 15, 2010, to provide that in counties with a
population exceeding two million persons, the County shall pay one hundred
percent of the Judges' annual salaries. Thereafter, in the Forty-Ninth Legislature,
Second Regular Session, the Legislature enacted Senate Bill 1100 as Laws 2010,
chap. 238, § 3, which further amended A.R.S. § 12-128 to provide that the change
in funding shall begin in fiscal year 2010-2011. The general effective date for the
laws of the second regular session is July 29, 2010. Based on their best
interpretation of these laws, the Parties believe that the Legislature intended the
County to begin paying one hundred percent of the Judges' salaries for every pay
day after June 18, 2010. The Judges will continue to be State employees.
5. The Parties desire that the Judges continue to have the option to select between
State or County-provided benefits, and believe that this involves the exercise of a
joint, shared power between them.
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PURPOSE OF THE AGREEMENT
6. The purpose of this Agreement is to set forth the terms and conditions under which
the County will transmit to the State (or other designated party) payments for
employee benefits provided to Judges under the State's Benefit Options plan and
to delineate the options available to Judges and the obligations of the Parties with
respect to Judges benefits.
TERMS OF THE AGREEMENT
7. Responsibilities of the County:
a. The County hereby designates the State's Benefit Options plan as a Benefit
Plan as defined in the Maricopa County Cafeteria Plan (Amended and
Restated).
b. The County shall take all necessary steps to authorize Judges to change
benefits options during either the State's or the County's open enrollment
periods. If a Judge changes benefits during the State's open enrollment
period, the County's intention is that this shall be considered a qualifying
event for purposes of enrolling, changing or dropping coverage under
available County benefits plans. In addition, if a Judge has coverage
through his/her spouse, and changes coverage during the open enrollment
period of his/her spouse, the County intends that this shall be considered a
qualifying event for purposes of enrolling, changing or dropping coverage
under available County benefits plans.
c. The County shall collect the employee portion of the payment for
State-provided benefits as authorized by a salary reduction order executed
by each Judge electing to receive State-provided benefits ("Participating
Judge"). This shall include any authorized deductions for State-authorized
independent retirement plans such as 401(a) or 457 deferred compensation
plans.
d. Notwithstanding the Maricopa County Accident and Health insurance
Premium Plan (Second Amendment and Restatement), Participating
Judges shall not be eligible for any medical waiver payment(s) provided to
County employees who decline medical coverage.
e. On a bi-weekly basis, on or before the Friday of each pay week, the County
shall transmit to the State an amount that equals the total amount due for
each Participating Judge's employee benefits (with the exception described
in paragraph (f) below). These payments shall be made via check or
electronic fund transfer payable to the State's Health Insurance Trust Fund.
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The County shall continue making such payments each pay period until this
Agreement is amended or terminated.
f. Any payroll deductions that are made in connection with State-authorized
independent retirement plans shall be remitted by the County directly to the
retirement plan provider.
9. The County shall notify the State of changes to an eligible Judge's address
and any change in status affecting an eligible Judge's rights under the
Benefit Options plan.
h. The County shall provide the State annually (within fourteen days of the
start of the State's Open Enrollment period for Benefit Options)
demographic data for all eligible Judges. Demographic data includes each
Judge's annual salary, address, and dependent information.
i. The County shall provide the State the same demographic data about each
newly-appointed Judge within five days of the Judge's employment date.
8. Responsibilities of the State:
a. The State shall take all necessary steps to authorize Judges to change
benefits options during either the State's or the County's open enrollment
periods. If a Judge changes benefits during the County's open enrollment
period, the State's intention is that this shall be considered a qualifying
event for purposes of enrolling, changing or dropping coverage under
available State benefits plans.
b. The State shall notify the County of (1) which Judges are eligible Judges
and (2) the total amount due to the State per bi-weekly pay period for each
Participating Judge based on each Participating Judge's benefit enrollment
for each benefit category (excluding amounts withheld for contribution to
individual retirement plans). The State shall break down the amount due by
(i) employee pre-tax contribution, (ii) employee post-tax contribution, and
(iii) employer contribution. The State shall further specify the amount, if any,
attributed to contributions to (a) a dependent care flexible spending account
("FSA"), (b) health savings account ("HSA"), and (c) individual retirement
accounts.
c. The State shall notify the County prior to the effective date of any changes
to the bi-weekly amount due for any Participating Judge as a result of
changes in (1) benefit costs or (2) the Participating Judge's benefit
elections.
d. The State shall use the funds received from the County pursuant to this
Agreement to provide benefits selected by the Participating Judges, in the
same fashion as for other State employees who participate in Benefit
Options.
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e. The State shall be responsible for all communications with the eligible
Judges concerning their State-provided benefits.
9. Judges are permitted to select from all benefits options offered by the State or the
County, including but not limited to: medical plans (and corresponding pharmacy
and behavioral health plans), dental plans, life insurance, accidental death and
dismemberment insurance, and any other voluntary benefits offered to State or
County employees. Judges may elect dual coverage for any benefits they
choose; however, Judges are only eligible for one employer-paid contribution in
each benefit category and may only participate in either County or State 401(a) or
457 plans.
10. Judges are permitted to enroll in FSAs established at either the State or the
County, but not both. Judges who choose a high-deductible health plan (HDHP)
with a Health Savings Account (HSA) are not eligible to participate in a general
healthcare FSA per IRS regulations.
11. Judges are also limited to one HSA, which may be established at either the State
or the County, but not both.
12. This Agreement shall become effective as of the date it is approved by the
Maricopa County Board of Supervisors and the Director of the Arizona Department
of Administration and may be recorded with the Maricopa County Recorder. The
Agreement shall remain in effect until terminated as set forth below or June 30,
2014, whichever comes first. Either Party may terminate this Agreement by
delivering a notice of termination to the other Party. The notice shall contain a date
certain for such termination, which date must be at least thirty (30) days after the
date the notice is given to the other Party. In addition, the Parties can terminate this
Agreement at any time by mutual agreement.
13. To the extent permissible under A.R.S. §§ 41-621 et seq. and 11-981 and not
prohibited by A.R.S. § 35-154, each Party does hereby indemnify and hold
harmless the other Party, including any of the Parties' departments, agencies,
officers, employees, elected officials or agents, from any and all liability which is
the result of the intentional conduct, negligence, or omission of the indemnifying
Party, its departments, agencies, officers, employees, elected officials or agents,
in connection with the performance of their respective responsibilities under this
Agreement.
14. This Agreement shall be subject to the provisions of A.R.S. § 38-511. The parties
may cancel this Agreement without penalty or further obligation pursuant to A.R.S.
§ 38-511. The Parties each represent that, as of the date of execution of this
Agreement, they are not aware of any facts or circumstances which would give rise
to a cancellation right in favor of any Party pursuant to A.R.S. § 38-511.
15. The Parties warrant that they are in compliance with A.R.S. § 41-4401 and further
acknowledge that:
a) Any contractor or subcontractor who is contracted by a Party to perform
work related to this Agreement shall warrant their compliance with all
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federal immigration laws and regulations that relate to their employees
and their compliance with A.R.S. § 23-214(A);
b) That any breach of the warranty, shall be deemed a material breach of
the contract that is subject to penalties up to and including termination of
the contract;
C) The Parties retain the legal right to inspect the papers of any contractor
or subcontractor employee who performs work related to this Agreement
to ensure that the contractor or subcontractor is complying with the
warranty above and that the contractor agrees to make all papers and
employment records of said employee available during normal working
hours in order to facilitate such an inspection;
d) Nothing in this Agreement shall make any contractor or subcontractor an
agent or employee of the Parties to this Agreement.
16.1t is understood that each of the parties shall comply with the provisions of State
Executive Order 2009-9, Title VI of the Civil Rights Act of 1964, as amended,
Section 504 of the Rehabilitation Act of 1973, as amended, and the Americans with
Disabilities Act, as amended.
17. This Agreement does not imply authority to perform any tasks, or accept any
responsibility, not expressly stated in this Agreement.
18. This Agreement does not create a duty or responsibility unless the intention to do
so is clearly and unambiguously stated in this Agreement.
19. This Agreement contains the entire agreement of the parties and may not be
changed orally. Any change, modification or extension of this Agreement must be
in the form of a written amendment to this Agreement signed by duly authorized
representatives of both Parties.
20. This Agreement has been arrived at by negotiation and shall not be construed for
or against any Party.
21. The Parties agree that all of the conditions set forth herein are material to this
Agreement and a breach of any condition is a breach of this Agreement.
22. In the event of a material breach of any of the provisions of this Agreement, the
non- defaulting Party may terminate this Agreement by delivering written notice to
the defaulting Party specifically setting forth the nature of the breach. Upon being
served with such notice, the defaulting Party shall have sixty (60) days in which to
cure said breach. If said breach has not been cured within the sixty (60) days, then
this Agreement shall be deemed terminated as set forth in the notice, and both
Parties hereto shall perform their respective obligations up to the effective date of
such termination.
23. The failure of either Party to insist in any one or more instances upon the full and
complete performance of any of the terms and provisions of this Agreement to be
performed by the other Party or to take any action permitted as a result thereof
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shall not be construed as a waiver or relinquishment of the right to insist upon full
and complete performance of the same or any other covenant or condition either in
the past or in the future. The acceptance by either Party of sums less than may be
due and owing at any time shall not be construed as an accord and satisfaction.
24. The substantive laws of Arizona (without reference to any choice of law principles)
shall govern the interpretation, validity, performance and enforcement of this
Agreement. The Parties further agree to cooperate in all ways reasonable and
necessary to comply with the applicable statutes, including amending this
Agreement as needed in the future and making any refunds or payments that
might be required to bring the Parties into full compliance with applicable law.
25. Nothing in this Agreement is intended to create any third party beneficiary rights
and the State and County expressly state that this Agreement does not create any
third party rights of enforcement.
26. This Agreement may be executed in any number of counterparts, all such
counterparts shall be deemed to constitute one and the same instrument, and
each of said counterparts shall be deemed an original hereof.
27. If the last day of any time period stated herein shall fall on a Saturday, Sunday or
legal holiday in the State of Arizona, then the duration of such time period shall be
extended so that it shall end on the next succeeding day which is not a Saturday,
Sunday or legal holiday.
28. Time is of the essence in this Agreement.
29. Except as expressly provided herein, no party may delegate or assign its rights or
responsibilities under this Agreement without prior written approval of the other
party and any purported assignment or delegation in violation of this provision shall
be void.
30. Any and all notices required or permitted under this Agreement shall be given in
writing and personally delivered or sent by registered or certified mail, return
receipt requested, postage prepaid, or by a recognized overnight delivery service,
addressed as follows:
Notice to the State shall be addressed as follows:
Brian McNeil
Director, Arizona Department of Administration
100 North 15th Avenue
Phoenix, Arizona 85007
with copies to:
Marie lssacson
Assistant Director, Human Resources Division
Arizona Department of Administration
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100 North 15th Avenue
Phoenix, Arizona 85007
Rex NowIan
Section Chief Counsel
Administrative Law Section
Office of the Attorney General
1275 West Washington Street
Phoenix, Arizona 85007
The notices to the County described in paragraph 8 of this Agreement shall be
addressed as follows:
Portia Lomax
Payroll and Employee Records Manager
Maricopa County
301 West Jefferson Street, 2nd Floor
Phoenix, Arizona 85003
plomax@mail.maricopa.gov
All other notices to the County shall be addressed as follows:
Tom Manos
County Manager
301 West Jefferson Street, 10th Floor
Phoenix. Arizona 85003
and
Maricopa County Board of Supervisors
Attn: Clerk of the Board
301 West Jefferson Street, 10th Floor
Phoenix, Arizona 85003
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with copies to:
Christopher M. Bradley
Director, Maricopa County Department of Employee Benefits and Health
301 West Jefferson Street, Suite 3200
Phoenix, Arizona 85003
Maricopa County Attorney's Office
Civil Services Division
234 N. Central Ave., Suite 1100
Phoenix, Arizona 85004
Notice shall be deemed given upon hand or courier delivery or three (3) business days
after deposit in the United States mail.
End of Agreement - Signature Page Follows
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SIGNATURE PAGE
MARICOPA COUNTY STATE OF ARIZONA
Approved and Accepted by: Approved and Accepted by:
Andrew Kunasek, Chairman Date
Board of Supervisors Arizona Department of Administration
Attest by:
Clerk of the Board of Supervisors Date
(continued on next page)
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COUNTY ATTORNEY APPROVAL
Pursuant to A.R.S. § 11-952, I hereby state that I have reviewed the proposed
Intergovernmental Agreement and declare the Agreement to be in proper form and within
the powers and authority granted to the Parties by their respective governing bodies
under the laws of the State of Arizona.
WILLIAM MONTGOMERY
MAR1COPA COUNTY ATTORNEY
By:
Date
(Print Name)
ATTORNEY GENERAL INTERGOVERNMENTAL AGREEMENT DETERMIN1ATION
Attorney General Contract No. " " 1 ti , which is an Agreement
between public agencies, has been reviewed pursuant to A.R.S. § 11-952 by the
undersigned Assistant Attorney General, who has determined that it is in the proper form
and is within the powers granted under the laws of the State of Arizona to those Parties to
the Agreement represented by the Attorney General.
Dated this q44of 2013
THOMAS C. HORNE
Attorney General
Assistant Attorney General
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