© 2006 Thrun Law Firm, P.C. 1 Legal Aspects of Cooperative Arrangements Among School Districts

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Legal Aspects ofCooperative Arrangements

Among School Districts

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Legal Authority– Inter-Governmental Contracts Act – Act 35 of

1951– Urban Cooperation Act of 1967– Revised School Code

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Act 35 of 1951– Allows School Districts to enter into cooperative

arrangements “for the ownership, operation, or performance, jointly or by any 1 or more on behalf of all, of any property, facility, or service which each would have the power to own, operate or perform separately”

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Urban Cooperation Act of 1967– Authorizes Corporate Entity– Surer way of Shielding each Cooperating District

from the Cooperative’s and other School Districts’ Liabilities

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Revised School Code– Major Revisions of School Code of 1995– All Districts are “General Powers” Districts– RSC § § 11a(4) and 601a(2) includes Power to

“enter Into agreements or cooperative arrangements with other entities, public or private”

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Various Types of Cooperative Agreements– Purchase of Goods and Services– Ownership of Assets– Sale of Assets– Service Sharing– Staff Sharing

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Purchase of Goods and Services– Types of Goods and services

De-regulated Gas and Electricity Food and Beverage Bus Fuel Technology Energy Conservation Services

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Purchase of Goods and services (cont.)– Advantages

Negotiation Leveraging Stronger “Pro-District” Master Contract Reduced Legal Costs More Expert Staff Closer Monitoring Shared Enforcement

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Joint Ownership of Asset– Fiber Optic Networks– Joint Municipal / School Administration Buildings

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Sale of Assets– Otherwise Competition between Districts– Education Broadband Service Channels– Revenue Pooling

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Service Sharing – One District “Sells” Services to Another– Student Transportation– Information Technology– Maintenance– Business Services

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Staff Sharing – Districts Share Deployment of Service– Dual Superintendency Agreements– Any Administrative and Support Services

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Dual Superintendency– Incompatibility of Public Office– Need for Mechanism to Shield Superintendent

from Conflicts

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Any Administrative and Support Services– Concept of Federated School Districts vs

Consolidated School Districts Governance and Education Functions Remain Separate Administration and Support Functions Merged

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Structures of Administrative and Support Services Cooperatives– Separate Corporate Entity Employer– Single District Employer– Each District is Employer of its Employees

Pending Attrition

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Separate Corporate Entity– Employs all Non-Union Administrative and

Support Personnel– Separate Entity for Tax and Accounting Purposes

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One District Employs All Staff, with Cooperative Agreement Regarding Control over Deployment– Most Common

Districts Share Attrition Savings

– Semblance of Administration in Case Districts Separate

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Other Cooperative Partners– Municipalities

Administration Buildings Recreational Facilities and Libraries

– Community Colleges– Counties– Social Service Agencies

Alternative Schools

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Other Cooperative Partners (cont.)– Private Entities

Transportation School Management

– Partner has Transparent Compensation

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Contract Considerations– Financing and Risk Allocation– Respective Contributions of the Districts– Allocation of Costs Among Districts– Program Over-Sight

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Contract Considerations (Con’t)– Duration and Enforceability– Admission to Membership

Subsequent Admission Non School Districts, e.g. Charter Schools

– Representation and Governance Do This Item Last, Not First