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© 2006 Thrun Law Firm, P.C.1
Legal Aspects ofCooperative Arrangements
Among School Districts
© 2006 Thrun Law Firm, P.C.2
Legal Authority– Inter-Governmental Contracts Act – Act 35 of
1951– Urban Cooperation Act of 1967– Revised School Code
© 2006 Thrun Law Firm, P.C.3
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”
© 2006 Thrun Law Firm, P.C.4
Urban Cooperation Act of 1967– Authorizes Corporate Entity– Surer way of Shielding each Cooperating District
from the Cooperative’s and other School Districts’ Liabilities
© 2006 Thrun Law Firm, P.C.5
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”
© 2006 Thrun Law Firm, P.C.6
Various Types of Cooperative Agreements– Purchase of Goods and Services– Ownership of Assets– Sale of Assets– Service Sharing– Staff Sharing
© 2006 Thrun Law Firm, P.C.7
Purchase of Goods and Services– Types of Goods and services
De-regulated Gas and Electricity Food and Beverage Bus Fuel Technology Energy Conservation Services
© 2006 Thrun Law Firm, P.C.8
Purchase of Goods and services (cont.)– Advantages
Negotiation Leveraging Stronger “Pro-District” Master Contract Reduced Legal Costs More Expert Staff Closer Monitoring Shared Enforcement
© 2006 Thrun Law Firm, P.C.9
Joint Ownership of Asset– Fiber Optic Networks– Joint Municipal / School Administration Buildings
© 2006 Thrun Law Firm, P.C.10
Sale of Assets– Otherwise Competition between Districts– Education Broadband Service Channels– Revenue Pooling
© 2006 Thrun Law Firm, P.C.11
Service Sharing – One District “Sells” Services to Another– Student Transportation– Information Technology– Maintenance– Business Services
© 2006 Thrun Law Firm, P.C.12
Staff Sharing – Districts Share Deployment of Service– Dual Superintendency Agreements– Any Administrative and Support Services
© 2006 Thrun Law Firm, P.C.13
Dual Superintendency– Incompatibility of Public Office– Need for Mechanism to Shield Superintendent
from Conflicts
© 2006 Thrun Law Firm, P.C.14
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
© 2006 Thrun Law Firm, P.C.15
Structures of Administrative and Support Services Cooperatives– Separate Corporate Entity Employer– Single District Employer– Each District is Employer of its Employees
Pending Attrition
© 2006 Thrun Law Firm, P.C.16
Separate Corporate Entity– Employs all Non-Union Administrative and
Support Personnel– Separate Entity for Tax and Accounting Purposes
© 2006 Thrun Law Firm, P.C.17
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
© 2006 Thrun Law Firm, P.C.18
Other Cooperative Partners– Municipalities
Administration Buildings Recreational Facilities and Libraries
– Community Colleges– Counties– Social Service Agencies
Alternative Schools
© 2006 Thrun Law Firm, P.C.19
Other Cooperative Partners (cont.)– Private Entities
Transportation School Management
– Partner has Transparent Compensation
© 2006 Thrun Law Firm, P.C.20
Contract Considerations– Financing and Risk Allocation– Respective Contributions of the Districts– Allocation of Costs Among Districts– Program Over-Sight
© 2006 Thrun Law Firm, P.C.21
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