The Iga: a Smart Approach for Local Governments

• Publication year: 2000
• Pages: 73
• Citation: Vol. 29 No. 6 Pg. 73

29 Colo.Law. 73 Colorado Lawyer 2000.

2000, June, Pg. 73. The IGA: A Smart Approach For Local Governments

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73

Vol. 29, No. 6, Pg. 73

The Colorado Lawyer
June 2000
Vol. 29, No. 6 [Page 73]

Specialty Law Columns
Government and Administrative Law News
The IGA: A Smart Approach For Local Governments
by George J. Cerrone, Jr

Colorado local governments are developing a better and smarter way to serve the public interest: they are using intergovernmental agreements ("IGAs"). Using IGAs is better than engaging in time-consuming and resource-wasting litigation, and it is smarter1 because local decisionmakers can retain and exercise authority over local matters. This article describes the history of IGAs and explains the rules used to create IGAs

Definition of an IGA

In general, an IGA is a formal contract made between local governments and other levels of government that allows these governments to carry out common functions or services or jointly operate common facilities.2 For the purposes of this article, local governments include governments of general jurisdiction, such as counties, cities, and towns, and governments of restricted jurisdiction, such as special districts.3

IGAs are formal written documents subject to certain rules There are two primary types of IGAs: joint-action IGAs and separate-entity IGAs. Joint-action IGAs allow participating governments, acting as individual entities, to carry out activities for their mutual benefit, such as arranging for and exchanging fire protection services.4 Separate-entity IGAs create, by contract, wholly independent authorities to perform functions, provide services, or operate facilities such as acquiring, storing, treating, and distributing water for the participating localities.5 Both types of IGAs are described further below.

Historical Background

Governments have always arranged certain matters, from demarcating spheres of influence to formalizing trade arrangements. The most common modern example is a treaty made among sovereign nations. The U.S. Articles of Confederation and U.S. Constitution could be viewed as IGAs made by several states to combine into one nation.Interstate compacts made between individual states in the United States address issues as varied as migratory birds and water allocation.6

In 1964, in Four County Metropolitan Capital Improvement District v. Board of County Commissioners,7 the Colorado Supreme Court rejected one of the first major efforts of local governments to cooperate and share powers and responsibilities.8 In this case, based on statute9 and electoral approval, the metropolitan Denver district collected taxes for capital improvements from participating entities for their respective governments. Once the improvements were made, titles were conveyed to the respective entities. The Court held this form of cooperation unconstitutional because it infringed on the home rule powers of the cities involved.10

On November 3, 1970, partly in response to the Court's rejection of metropolitan cooperation in the Four County case, the Colorado electorate adopted § 18 to Article XIV of the Colorado Constitution. Section 18 removes any constitutional prohibition against governments cooperating and contracting with one another.

In May 1971, the Colorado General Assembly enacted authorizing and enabling legislation.11 IGAs in the form of grant agreements, such as Community Development Block Grant Agreements between local governments and the United States, predate CRS §§ 29-1-201 et seq., the first major statutory provision concerning IGAs. These grant agreements are still used today.12 Prior to the statute, Denver contracted with neighboring local governments for water and sanitary sewer services, including the complete operation of the contracting entities' systems.13 In May 1974, the General Assembly passed the Local Government Land Use Control Enabling Act ("Act"), the other major statutory provision concerning IGAs, which authorized local governments to enter into Comprehensive Development Plan ("CDP") IGAs, a type of joint-action IGA.14

The rules concerning making and entering into IGAs are particular and must be followed. These rules are discussed below.

IGA Formalities

IGAs are contracts and, for the most part, subject to traditional contract laws. However, IGAs are governed by special rules concerning proper parties, mandatory substantive provisions, appropriate processes of execution and approval, and other matters of form.

Parties

Possible parties to an IGA include agencies and departments of the Colorado state government and the U.S. government, Colorado political subdivisions, and adjoining state political subdivisions. For IGA purposes, a "political subdivision" can be a county, city and county, city, town, service authority, school district, local improvement district, law enforcement authority, or city or county housing authority. A political subdivision also can be any water, sanitation, fire protection, metropolitan, irrigation, drainage, or other special district or any other kind of municipal, quasi-municipal, or public corporation organized pursuant to law.15

The inclusion in CRS § 29-1-202 of "any political subdivision of an adjoining state" is noteworthy. The definition is broader than...