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

© 2006 Thrun Law Firm, P.C.1

Legal Aspects ofCooperative Arrangements

Among School Districts


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

1951– Urban Cooperation Act of 1967– Revised School Code


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”


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

from the Cooperative’s and other School Districts’ Liabilities


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”


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


Purchase of Goods and Services– Types of Goods and services

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


Purchase of Goods and services (cont.)– Advantages

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


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


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


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


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


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

from Conflicts


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


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

Pending Attrition


Separate Corporate Entity– Employs all Non-Union Administrative and

Support Personnel– Separate Entity for Tax and Accounting Purposes


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


Other Cooperative Partners– Municipalities

Administration Buildings Recreational Facilities and Libraries

– Community Colleges– Counties– Social Service Agencies

Alternative Schools


Other Cooperative Partners (cont.)– Private Entities

Transportation School Management

– Partner has Transparent Compensation


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


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

Documents

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