Drafting an Interlocal Agreement

Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

Interlocal agreements are a legally binding tool that can be used by local government entities, organizations and other bodies to coordinate and collaborate on activities, services and projects. With the right agreement in place – carefully tailored to the specific needs of all parties involved – collaboration can be achieved, legal disputes minimized and those involved held accountable.

The Genie AI team fully understand the importance of getting interlocal agreements right - so much so that we have created the world’s largest open source legal template library. Drawing upon millions of data points, our AI system has been taught what constitutes a market standard interlocal agreement. And thanks to our community template library, anyone can access free templates for customizing high quality documents without paying a lawyer.

So how do you go about drafting an effective interlocal agreement? Firstly: ensure that all parties involved are adequately represented and that all relevant details are included within the document; consider their interests; make sure it is tailored to the project or activity at hand; and write it in plain language for everyone’s understanding. Secondly, if there is any risk of misunderstanding or dispute further down the line – then take steps to mitigate them from the outset.

The signing of an interlocal agreement is an important step in any collaboration process - but don’t take shortcuts! If you need help navigating this complex area then read on below for Genie AI’s step-by-step guide and find out how you can access our template library today!

Definitions (feel free to skip)

Purpose: The reason or goal of the agreement.
Parties: People or organizations involved in the agreement.
Scope: The range of issues covered by the agreement.
Duration: The length of time the agreement is valid.
Management: Who is responsible for overseeing and managing the agreement.
Dispute resolution: How disputes will be handled.
Amendments: Changes or updates to the agreement.
Tasks and responsibilities: Who is responsible for which tasks.
Obligations: Duties and responsibilities of each party.
Financial terms: Payment terms and conditions.
Legal remedies/sanctions: Consequences for not fulfilling their obligations.
Signatures/dates: Who signed the agreement and when it was signed.

Contents

• Discussion of the purpose of the agreement
• Identification of the parties involved
• Outlining the scope of the agreement
• Specifying the duration of the agreement
• Determining the management of the agreement
• Establishing any dispute resolution processes
• Setting a timeline for amendments
• Establishing a process for the parties to make amendments
• Establishing a timeline for when amendments must be made
• Allocating tasks and responsibilities
• Identifying who will be responsible for which tasks
• Determining what resources are available for each task
• Listing the obligations of each party
• Defining the duties and obligations of each party
• Clarifying the expectations of each party
• Discussing and defining the financial terms
• Outlining the payment terms and conditions
• Describing the payment method and frequency
• Describing any legal remedies or sanctions
• Defining any legal remedies available to parties
• Defining any sanctions that may be imposed
• Arrangement of signatures and dates of agreement
• Preparing a signature page
• Ensuring all parties have signed the agreement
• Recording the date the agreement was signed

Get started

Discussion of the purpose of the agreement

• Research and review the purpose of the agreement and its objectives
• Document the purpose of the agreement and the objectives that need to be met
• Discuss and agree on the scope of the agreement, the parties involved and the responsibilities of each party
• Make sure that all parties involved understand the purpose of the agreement and the objectives that need to be met
• When all parties are in agreement, the step will be completed and you can move on to the next step - Identification of the parties involved.

Identification of the parties involved

• Identify all parties who will be involved in the agreement.
• List each party’s name and contact information.
• Contact each party to discuss the agreement and answer any questions they may have.
• Once all the parties have agreed to participate and the contact information has been collected, you can move on to the next step.

Outlining the scope of the agreement

• Clarify the purpose and objectives of the agreement
• Describe the services, resources, and other agreements to be exchanged
• Assign responsibilities among the parties
• Identify any provisions that require approval of all parties
• Allocate costs, if applicable
• You can check this off your list when all parties have agreed on the scope of the agreement.

Specifying the duration of the agreement

• Set a specific start date and end date for the agreement and include it in the document
• Make sure to include a provision for the agreement to be reviewed on a regular basis and/or renewed if necessary
• Consider any special circumstances that might require an extension of the agreement duration
• Put in a clause that allows either party to terminate the agreement with a certain amount of notice
• Once all of the above items are included in the document, the duration of the agreement can be considered finalized and ready to move on to the next step

Determining the management of the agreement

• Identify who will be responsible for managing and administering the interlocal agreement.
• This could be a single entity, or multiple entities.
• Determine what type of authority each entity has in regards to the agreement.
• Establish processes for how decisions regarding the agreement will be made.
• Set up a timeline for when decisions should be made.
• Decide how often the agreement should be reviewed, and who is responsible for the review.
• When you have identified the management of the agreement, you can check this step off your list and move on to the next step.

Establishing any dispute resolution processes

• Decide on a process for resolving disputes: This could include having one or both parties to the agreement submit the dispute to mediation or arbitration, or both parties could agree to use a different dispute resolution process that they mutually agree on.
• Determine the decision-making process for the dispute resolution process: Will both parties be involved in the decision-making process?
• Specify the dispute resolution process in the interlocal agreement: It is important to include the process in the agreement to ensure that all parties are aware of the process and expectations for resolution.
• Once the dispute resolution process has been established, finalize the interlocal agreement.

How you’ll know when you can check this off your list and move on to the next step: Once the dispute resolution process has been established and included in the interlocal agreement, you can move on to the next step.

Setting a timeline for amendments

• Discuss the timeline for amendments to the interlocal agreement with the other parties.
• Make a decision on the timeline for amendments that all parties can agree on.
• Include the agreed-upon timeline for amendments in the interlocal agreement.
• Check the timeline for amendments off your list and move on to the next step.

Establishing a process for the parties to make amendments

• Decide how the parties will communicate when proposing and discussing amendments to the agreement.
• Establish a process for the parties to make amendments, such as through a formal written request.
• Outline the process for the parties to review and approve amendments, such as through a majority or unanimous vote.
• Specify who is responsible for notifying the other party when amendments are proposed and approved.
• Set a timeframe for when amendments must be completed.

You will know you have completed this step when you have outlined the process for the parties to make amendments, set a timeframe for amendments to be completed, and specified who is responsible for notifying the other party when amendments are proposed and approved.

Establishing a timeline for when amendments must be made

• Determine the length of time the agreement should be in effect
• Discuss and agree on a timeline for when amendments must be made
• Create a specific timeline for when each party must submit an amendment and when the other party must respond
• Outline the process that should be followed if either party does not meet the amendment timeline
• Specify the consequences of not meeting the timeline for submitting or responding to amendments
• Incorporate the timeline and process for amendments into the agreement
• When all parties have agreed to the timeline and process, the step is complete and you can move on to the next step

Allocating tasks and responsibilities

• Break down the roles and responsibilities for each party in the interlocal agreement
• Assign any specific tasks that each party is responsible for in the agreement
• Make sure that all tasks are clearly delineated and that each party understands their individual roles
• Once all roles and tasks are assigned, create a written record of the agreement
• When the written record is complete, you have allocated tasks and responsibilities and can move on to the next step.

Identifying who will be responsible for which tasks

• Identify which government entity is responsible for each task associated with the agreement.
• Consider who will be the primary contact for each task and how to best coordinate.
• Determine which entity will provide the necessary resources for each task.
• Make sure each entity is aware of their responsibilities, who to contact with questions, and which resources are available to them.
• When all tasks have been assigned and each entity is aware of their responsibilities, you can check this step off your list and move on to the next step.

Determining what resources are available for each task

• Review the objectives and tasks identified in the previous step and list out the necessary resources required to complete each task.
• Determine what resources are available to each party and assign those resources to the appropriate tasks.
• Make sure to consider other parties’ resources and capabilities in order to maximize the efficiency of the agreement.
• Once you have determined the resources available to each task, you can move on to the next step.

Listing the obligations of each party

• Identify the resources each party can commit to the agreement
• Identify the roles and responsibilities of each party
• Outline what each party can and cannot do
• Identify the rules, regulations, and procedures that each party must follow
• Establish timelines for completion of tasks
• Identify how disputes will be resolved
• Determine the duration of the agreement

You can check off this step when you have listed all the obligations of each party that are necessary for the agreement.

Defining the duties and obligations of each party

• Create a list of the duties and obligations of each party in the agreement
• Outline the specific duties and obligations that each party will undertake
• Review the list to ensure that the duties and obligations have been thoroughly and accurately outlined
• When the duties and obligations of each party have been clearly defined, it is time to move on to the next step.

Clarifying the expectations of each party

• Contact the other party to discuss what each expects from the agreement
• Ask questions to better understand the other party’s goals and expectations
• Take notes on the other party’s expectations and goals
• Evaluate if your expectations and goals are in line with the other party’s
• Make any necessary changes to ensure both parties are in agreement
• Once both parties have agreed on what’s expected from the agreement, you can check off this step and move on to discussing and defining the financial terms.

Discussing and defining the financial terms

• Establish the costs for each party, who will pay for what, and who will be responsible for any associated fees
• Ensure that the costs are reasonable and within the budget of each party
• Discuss any additional financial responsibilities and associated costs
• Identify any potential cost savings or other financial incentives that may apply
• Specify the payment schedule and payment methods
• Record the financial agreement in the interlocal agreement
• Ensure that all parties are in agreement with the financial terms before moving on to the next step

Outlining the payment terms and conditions

• Determine the length of the agreement, including the start and end dates
• Identify the payment amount, including the total amount and any additional fees or expenses
• Decide on the payment schedule, such as monthly or quarterly payments
• Determine any penalties for late payments
• Identify any additional payments, such as for additional services or materials
• Include provisions for termination of the agreement in the event of non-payment

Once all the payment terms and conditions have been outlined and agreed upon, you can move on to the next step: Describing the payment method and frequency.

Describing the payment method and frequency

• Establish the payment method, such as cash, check, or electronic transfer.
• Determine the payment frequency, such as monthly, quarterly, or annually.
• Specify any other information necessary to process the payment, such as account numbers, addresses, etc.
• Include the payment method and frequency in the interlocal agreement.
• Once payment method and frequency are established and included in the agreement, you can move on to the next step.

Describing any legal remedies or sanctions

• Determine if either party may be entitled to legal remedies or sanctions should they fail to meet the agreed upon terms.
• Consider the potential remedies that may be appropriate, such as injunctions, restraining orders, or other legal action.
• Describe the available legal remedies or sanctions in the agreement, such as the court of jurisdiction and any other applicable laws.
• List the legal remedies or sanctions that both parties agree to should either party fail to meet the terms of the agreement.
• Include any additional provisions that may be necessary to enforce the legal remedies or sanctions.

Once this step is completed, you can check it off your list and move on to the next step: ### Defining any legal remedies available to parties.

Defining any legal remedies available to parties

• Determine which legal remedies are available to each party and document them in the interlocal agreement.
• Consider remedies such as the right to sue for breach of contract or pursue an injunction in the event of a violation.
• Make sure to clearly define how and when the remedies can be accessed by the parties.
• When completed, you can move on to the next step of defining any sanctions that may be imposed.

Defining any sanctions that may be imposed

• Determine what sanctions should be imposed if a party fails to meet the obligations of the agreement.
• Consider the scope of the sanctions and what would be most appropriate under the circumstances.
• Include the terms of the sanctions in the interlocal agreement.
• When the terms of the sanctions have been included in the agreement, this step can be checked off the list.

Arrangement of signatures and dates of agreement

• Ensure that the parties to the interlocal agreement are listed and that their respective authorities to enter into the agreement are stated.
• Determine the effective date for the agreement.
• Agree upon who will sign the agreement on behalf of each party.
• Make sure that each party is represented by their own signature.
• All signatures should be dated.
• You know you can check this off your list and move on to the next step once the signatures and dates of agreement have been arranged.

Preparing a signature page

• Gather all signature pages from the parties involved in the agreement
• Ensure the signature page includes the names and titles of the authorized representatives from each party
• Confirm that all signature pages are identical and contain the same information
• After all signature pages have been completed, you can check this off your list and move on to the next step, which is ensuring all parties have signed the agreement.

Ensuring all parties have signed the agreement

• Obtain original signatures from all parties
• Make sure that all signatures are dated
• Check that the signatures are from authorized representatives
• Have each party keep a copy of the signed agreement
• Once all parties have signed the agreement, you have completed this step and can move on to the next step.

Recording the date the agreement was signed

• Have all parties sign the agreement before recording the date
• Note the date of signing in the appropriate section of the agreement
• Make sure each party has a copy of the signed agreement
• Check that all the parties are in agreement with the date of the agreement
• Once all parties have signed and the date is recorded, the agreement is finalized and can be implemented

FAQ:

##Q: What is an interlocal agreement?
Asked by David on 2 April 2022.
A: An interlocal agreement is a contract between two or more local government entities or public agencies. This type of agreement is used to address a wide variety of issues, such as sharing resources, providing services, and establishing boundaries between jurisdictions. The terms of an interlocal agreement are generally negotiated and agreed upon by the parties involved, and can be either short-term or long-term in nature.

###Q: What types of issues can be addressed by an interlocal agreement?
Asked by David on 2 April 2022.
A: An interlocal agreement can address a range of issues, such as sharing resources, providing services, and establishing boundaries between jurisdictions. It can also be used for tax-sharing agreements, cooperative purchasing arrangements, and the sharing of personnel and equipment.

###Q: Are there any specific requirements for drafting an interlocal agreement?
Asked by David on 2 April 2022.
A: Generally speaking, the requirements for drafting an interlocal agreement vary from jurisdiction to jurisdiction. In general, however, the agreement should include a clear statement of purpose that outlines the scope of the agreement, as well as any legal considerations involved in the arrangement. Additionally, it should include specific provisions that address each party’s rights and responsibilities under the agreement.

###Q: What are the benefits of an interlocal agreement?
Asked by David on 2 April 2022.
A: Interlocal agreements can provide many benefits to local governments and public agencies involved in them. These agreements can help streamline operations and reduce costs by providing access to shared resources and personnel; they can also help facilitate collaboration between jurisdictions by establishing clear rules for cooperation and coordination. Additionally, they can provide legal clarity and certainty to all parties involved in the arrangement.

###Q: Are there any risks associated with an interlocal agreement?
Asked by David on 2 April 2022.
A: While an interlocal agreement can provide many benefits to local governments and public agencies involved in them, there are also potential risks associated with these types of agreements. These risks include potential disagreements between parties over terms and conditions of the agreement; potential conflicts of interest; conflicts over liability; and potential breaches of contract. It is important for all parties involved in an interlocal agreement to understand these risks before entering into a contractual arrangement.

###Q: What types of disputes may arise from an interlocal agreement?
Asked by David on 2 April 2022.
A: Disputes that may arise from an interlocal agreement may include disagreements over terms and conditions of the agreement; conflicts over liability; disputes over performance obligations; or breaches of contract. Additionally, disputes may arise from disagreements over interpretation or enforcement of the terms of the agreement, or from changes in circumstances that require modification or termination of the contract.

###Q: How can I ensure my interlocal agreement is legally binding?
Asked by David on 2 April 2022.
A: To ensure that your interlocal agreement is legally binding, it is important to consider a few key factors when drafting it. These include ensuring that all parties understand their rights and obligations under the contract; that all necessary details are included; that all parties have given their informed consent; and that all applicable laws are followed during negotiations and execution of the contract. Additionally, it is important to have a written document which outlines all aspects of the contract so that it is easily enforceable in court should any disputes arise in future.

###Q: Do I need to have my interlocal agreement reviewed by a lawyer?
Asked by David on 2 April 2022.
A: While it is not required for you to have your interlocal agreement reviewed by a lawyer prior to execution, it is highly advisable to do so before entering into a legally binding contract with another party or parties. Having your document reviewed by experienced counsel ensures that all necessary details are included in your contract so that your rights are protected throughout its duration; additionally, this review process can help identify any potential conflicts with applicable laws or potential liabilities associated with your contract prior to its execution.

###Q: How often should I review my interlocal agreement?
Asked by David on 2 April 2022.
A: It is important to review your interlocal agreement regularly – at least once every few years – to ensure that all provisions remain relevant and up-to-date with changing laws or regulations pertaining to your particular industry or sector. Additionally, reviewing your document periodically will help ensure that all parties remain aware of their rights and obligations under the contract and allow you to identify any areas where modifications may be necessary due to changing circumstances or new developments in technology or other areas relevant to your business model or sector.

###Q: Does an interlocal agreement need to be signed?
Asked by David on 2 April 2022.

A: Yes – for an interlocal agreement to be legally binding, it must be signed by all parties involved in the arrangement with their informed consent before its execution. Additionally, each party should retain a copy for their records for future reference should any disputes arise during its duration.

Example dispute

Suing under an Interlocal Agreement

• A plaintiff may raise a lawsuit referencing an interlocal agreement when they believe they have been wronged by another party that is a signatory of the agreement.
• The plaintiff must prove that the defendant party has violated the terms of the interlocal agreement and that the violation has caused them harm.
• The plaintiff must provide evidence to demonstrate how the violation of the interlocal agreement has caused them harm and why they are entitled to compensation.
• The plaintiff must identify what specific terms of the interlocal agreement were violated and how they were violated.
• The plaintiff must be able to demonstrate that the damages they are seeking are directly related to the violation of the interlocal agreement.
• The plaintiff should also be able to demonstrate that the damages they are seeking are reasonable.
• If the plaintiff can successfully prove that the defendant violated the terms of the interlocal agreement and caused them harm, they may be awarded compensation for their damages.
• Depending on the severity of the violation, the court may also order the defendant to comply with the interlocal agreement or face additional penalties.

Templates available (free to use)

Interlocal Agreement

‍