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

2. © 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

3. © 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”

4. © 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

5. © 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”

6. © 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

7. © 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

8. © 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

9. © 2006 Thrun Law Firm, P.C. 9 Joint Ownership of Asset – Fiber Optic Networks – Joint Municipal / School Administration Buildings

10. © 2006 Thrun Law Firm, P.C. 10 Sale of Assets – Otherwise Competition between Districts – Education Broadband Service Channels – Revenue Pooling

11. © 2006 Thrun Law Firm, P.C. 11 Service Sharing – One District “Sells” Services to Another – Student Transportation – Information Technology – Maintenance – Business Services

12. © 2006 Thrun Law Firm, P.C. 12 Staff Sharing – Districts Share Deployment of Service – Dual Superintendency Agreements – Any Administrative and Support Services

13. © 2006 Thrun Law Firm, P.C. 13 Dual Superintendency – Incompatibility of Public Office – Need for Mechanism to Shield Superintendent from Conflicts

14. © 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

15. © 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

16. © 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

17. © 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

18. © 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

19. © 2006 Thrun Law Firm, P.C. 19 Other Cooperative Partners (cont.) – Private Entities Transportation School Management – Partner has Transparent Compensation

20. © 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

21. © 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