What is a Inter Authority Agreement, and why is one needed?

4.46  Where local authorities undertake a joint project, it will be necessary to set out how the costs of the project are to be shared, what happens if one of the authorities pulls out of the project, and how to deal with disputes between the participating authorities. This is normally spelled out in a legally-binding IAA which would also normally cover issues including:

•  Preparation of annual business plans to support the joint working;

•  How sites will be dealt with;

•  Any lead authority arrangements; and

•  Intellectual property ownership.

4.47  WIDP have prepared a pro-forma IAA (joint committee model) which provides a basis for authorities to develop their own project specific IAAs.

4.48  Note that an IAA is sometimes also referred to as a Joint Working Agreement but its acronym is confusing with the new Joint Waste Authority ("JWA") model and the term "IAA" is therefore used for clarity throughout this document and in relation to pro formas to refer to any inter authority agreements between councils.

4.49  One of the key areas which will need to be addressed in the IAA is how costs are to be shared. The appropriate methodology for this may change through the life of the project. For example, it may be that the constituent authorities agree to share the costs of the procurement process according to a simple formula, such as sharing equally between each of the participating authorities. However, once a contract has been let for a long term contract for the provision and operation of residual waste treatment facilities, it may be appropriate to share the contractor's charges in proportion to the volume of waste which each authority delivers to the residual waste treatment facility.