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CEDC Certifications 2003/03/18Robert E. Hager E -mail: rhager@njdhs.com Mr. Jim Witt City Manager City of Coppell 255 Parkway Boulevard P. O. Box 9478 Coppell, Texas 75019 Dear Mr. Witt: NICHOLS, JACKSON, DILLARD, HAGER & SMITH, L.L.P. Attorneys & Counselors at Law 1800 Lincoln Plaza 500 North Akard Dallas, Texas 75201 (214) 965 -9900 Fax (214) 965 -0010 E -mail NJDHS @ NJDHS .c om March 18, 2003 RE: CEDC Certifications from School District ROBERT L. DILLARD, JR. (1913 -2000) H. LOUIS NICHOLS LAWRENCE W. JACKSON OF COUNSEL Via Facsimile 972- 304 -7063 and U.S. First Class Mail You have asked us to provide you with a legal opinion concerning the ability of the Coppell Education Development Corporation ( "CEDC ") to consider not making a grant to a school district that does not provide us with enrollment information. In responding to this question, we have reviewed the Articles of Incorporation, the Bylaws of the Corporation, as well as the "Better Jobs Act" being Section 379A.001 et seq. of the TEXAS LOCAL GOVERNMENT CODE. There is no specific requirement under the statute. The grant policy and the Bylaws of the CEDC requires that in order to make an equitable distribution each school district that is located within the geographical jurisdiction of the City of Coppell submit enrollment information by February 1st of each calendar year in order to make an equitable division of the funds for grant purposes. Under the Bylaws of the Corporation, the Corporation is required to annually propose a budget and a distribution of its funds in accordance therewith. If a school district does not certify to the CEDC enrollment information upon which it can base a budget decision, the Corporation must exclude that school district from consideration. The Corporation cannot make a grant unless funds are budgeted, otherwise it would violate its own "grant policy" and Bylaws. As a result, we would recommend for any school district that does not provide enrollment numbers, that they would be excluded from grant consideration. If enrollment information is not provided, the Corporation is obligated to by -pass it for grant consideration. Mr. Jim Witt March 18, 2003 Page 2 We hope this answers your question. If you have any other issues involving this matter, please feel free to contact us at your convenience so that we may address them. REH /cdb Very truly yours, NICHOLS, JACKSON, DILLARD, By: HAGER & S ' ` , LLP 7" / Robert E. Hager NICHOLS, JACKSON, DILLARD, HAGER & SMITH, L.L.P. 54513