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CEDC Certifications 2003/03/06214 965 0010 MHR 06 2003 17:06 FR NICHOLS JACKSON DILLA4 965 0010 TO 9723047063 P.01 NICHOLS, JACKSON, DILLARD, HAGER & SMITH, L.L.P. 1800 Lincoln Plaza 500 North Akard Dallas, Texas 75201 (214)965 -9900 (214)965 -0010 FAX FACSIMILE COVER SHEET PLEASE DELIVER THE FOLLOWING TO: NAME: Jim Witt, City Manager COMPANY: City of Coppell FAX NO.: 972 - 304 -7063 DATE: March 6, 2003 FROM: Robert E. Hager TRANSMITTED BY: Cindy Brown NUMBER OF PAGES (including Cover Sheet): COMMENTS: CEDC Certifications from School District THE INFORMATION CONTAINED IN THIS FACSIMILE IS ATTORNEY PRIVILEGED AND CONFIDENTIAL INFORMATION INTENDED FOR THE USE OF THE INDIVIDUAL OR ENTITY NAMED ABOVE. IF THE RECIPIENT IS NOT THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISTRIBUTION, DISSEMINATION OR COPYING OF THIS COMMUNICATION IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED TIEIS IS ERROR, PLEASE NOTIFY US IMMEDIATELY BY PHONE AND RETURN THE ORIGINAL MESSAGE TO US AT TIIE ABOVE ADDRESS VIA THE U.S. POSTAL SERVICE. ' A r ► TO MAYult AND COUNCIL MAR 06 2003 17:06 FR NICHOLS JACKSON DILLA4 965 0010 TO 9723047063 P.02 Robert E. Hager E -mail: rhager @njdhs.com Mr. Jim Witt City Manager City of Coppell 255 Parkway Boulevard P. 0. 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.com March 6, 2003 RE: CEDC Certifications from School District ROBERT L. DILLARD. JR. (1913.2000) H. LOUIS NICHOLS LAWRENCE W. JACKSON OF COMAE. 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 that under the law or Articles of Incorporation and Bylaws that require a school district to certify numbers. The "investment" and/or grant policy 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 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 could exclude that school district from consideration until such time as that information was provided. If the information is provided, the Corporation may wish to amend its budget accordingly. 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 at least until such time as that information was made available. If such information is not forthcoming then the Corporation, under its own Bylaws, would be obligated to enact a budget and under its grant policy to exclude the non school district. MAR 06 2003 17:06 FR NICHOLS JACKSON DILLA4 965 0010 TO 9723047063 P.03 Mr. Jim Witt March 6, 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. REHlcdb Very truly yours, NICHOLS, JAC HAGER & By: Robert E. Hager ILL RD, NICHOLS, JACKSON, DILLARD, HAGER & SMITH, L.L.P. ** TOTAL 54513