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Risk provisions for service contracts. <br />• Service provider indemnifies service purchaser. Use the "limited fo l n" indemnification <br />to avoid creating an uninsured liability; i.e., provider's indemnification responsibility is <br />limited to the amount of its coverage. <br />• Service provider carries liability insurance. <br />• Service purchaser is named as an additional insured. <br />Risk provisions for mutual aid agreements. <br />• Spell out procedures for requesting assistance. <br />o Who can make the request? <br />o To whom is the request addressed? <br />o Responder's discretion to respond. <br />• Clarify that the requesting party is in charge, and that the assisting party acts under the <br />requesting party's direction and control. <br />• Requesting party indemnifies the assisting party. Use the "limited t'orm" indemnification <br />provision to avoid creating an uninsured liability. <br />• Address work comp and equipment damage. <br />o Each party is responsible for work comp benefits for its own employees and for <br />damage to its own equipment, even if arguably caused by the other party's <br />negligence. <br />o Each party waives subrogation against the other. <br />Risk provisions for shared resource agreements. <br />• Clarify the parties' respective responsibilities. Who's responsible for <br />o Maintenance of the facility <br />o Supervision of activities in the facility <br />o Security <br />• Mutual indemnification provisions. Each party indemnifies the other for claims arising <br />from the first party's responsibilities. Use the "limited form" indemnification approach. <br />4. Other resources for joint powers activities. <br />If you're working on or considering an intergovernmental cooperative arrangement, give us a <br />call at LMCIT. We'll be glad to review and comment on drafts, provide sample or model <br />language for agreements, and help in any way we can. Here are some other resources: <br />LMCIT memos <br />• Liability Coverage for Joint Powers Agreements <br />• Risk Allocation and Coverage Issues for Joint Powers and Mutual Aid Agreements <br />• Combining Governmental Services <br />• Ten Things to Watch For When Entering Into Joint Powers Agreements <br />State Auditor's Best Practices Report — "Cooperative Efforts in Public Service Delivery" <br />PST - 6/06 <br />-18- <br />