CEDC Request 2002/08/01Robert 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.com
August 1, 2002
ROBERT L DILLARD. JR. (1913-2000)
H. LOUIS NICHOLS
LAWRENCE W. JACKSON
OF COUNSEL
RE: Coppell Education Development Corporation interpretation of Article IV,
Section 8(b) of the Bylaws
You have asked that we provide you with a legal opinion regarding our interpretation of
Article IV, Section 8(b) of the Bylaws of the Coppell Education Development Corporation
(CEDC). Specifically, you are requesting that we provide you with an opinion as to whether or
not a charter school, which maintains its administrative and teaching facility in Irving, Texas
(Valley Ranch), would qualify for funding application grants to the CEDC.
As we have previously opined to you in a letter dated May 8, 2002, a charter school is
considered a publicly funded institution for the purposes of State law. The underlying statute
under 379A, TEXAS. LOCAL GOVERNMENT CODE, provides that a municipality may enter into
agreements with accredited educational institutions for use of scholarship money as well as
contract with both public and private entities for performance of the duties and responsibilities as
permitted under the enabling legislation. In addition, we reviewed the Articles of Incorporation
of the CEDC, the appropriate ordinances and the election ballot propositions. The proposition
indicated that the funds generated from the sales tax adopted under § 379A may be used for
"educational programming" in preparing a future workforce. There are not any words of
limitation in the statute or ballot language which would specifically preclude the inclusion of
charter schools. We have considered the Articles of Incorporation, which provided under its
purposes in Section 4.01:
4.01 the purpose or purposes for which the Corporation is organized
for the purpose of financing programs to publicly funded institutions through the
Coppell Education Development Corporation for the promotion of literacy,
foreign language and career technology for a skilled workforce, as authorized by
Section 379A of the TEXAS LOCAL GOVERNMENT CODE, as amended."
FOR Iv A .DED TO
.AYOR AND COUNCIL
1 ` A TC.. '" -- ems_
Mr. Jim Witt
August 1, 2002
Page 2
Likewise, there were not any words of limitation to specifically exclude a charter school. Section
4.02 of the Articles does include the word "district ", which would indicate that public institutions
are to be funded by those independent school districts located within the corporate limits of the
City. However, there is not strong enough language in the Articles to preclude a charter school as
that term is defined and interpreted under the State law.
We cite the enabling legislation, the ballot language and the Articles of Incorporation to
provide a backdrop for interpretation and the intent of the Board of Directors and the City in
adopting the Bylaws. The Bylaw provisions which is in question specifically states:
B. All grants made by the Board of Directors shall be made .to publicly
funded institutions in proportion to the number of students of each publicly funded
institution located with the corporate limits in accordance with total enrollment
figures as of January 15 of each calendar year."
The question then becomes, does the charter school, which is physically located in Irving, constitute
a "publicly funded institution located in the corporate limits" of the city. In interpreting this
provision it is clear it was the intent that the provision was to include traditional independent school
districts with boundaries located within the corporate limits of the City of Coppell. Under normal
circumstances, the Carrollton- Farmers Branch, Lewisville, and Coppell Independent School
Districts are included as being "publicly funded institutions located within the corporate limits ". A+
strict interpretation would lend itself to the conclusion that if an independent school district
boundary were located within the corporate limits of the City, it would be eligible for funding based
on the formula provided in the Bylaws. The Charter for North Hills does establish boundaries as
the Cities of Coppell, Irving and Farmers Branch. Under the State statutes and regulations adopted
thereunder, a charter school does not have boundaries to serve those communities as stated in its
charter and contract. Also, enrollment is premised on residents within such boundary provided by
Charter and contract with the State of Texas. Hence, we would conclude that the boundaries of the
North Hills Charter School are within the City of Coppell and would be eligible for funding as a
public institution located within the City of Coppell.
We hope this has been instructive. If you have further questions or have additional
information, please provide the same to us at your earliest convenience.
REH /cdb
"Section 8. Powers. A
Very truly yours,
NICHOLS, JACKSON, DILLARD,
Bv.
HAGER : t H, .P.
Ie.O.d
Robert E. - * er
NICHOLS, JACKSON, DILLARD, HAGER & SMITH, L.L.P
49466
July 18, 2002
Mr. Robert Hager
Nichols, Jackson, Dillard, Hager & Smith
1800 Lincoln Plaza
500 N. Akard Street
Dallas, Texas 75201
Dear Robert:
` - s p
'I�Jim Witt
/ City Manager
JW:kb
11
cc: CEDC
T H E •C 1 T Y •O F
COFPELL
RE: Legal Opinion of Publicly Funded Institutions
On behalf of the Coppell Education Development Corporation (CEDC), I would like you to
review and provide us a legal opinion regarding Section 8B of the Bylaws of the CEDC.
Those Bylaws need to be reviewed with regard to the question of whether or not publicly
funded institutions outside the City of Coppell may receive funding from the CEDC.
I would appreciate a response by August 14, 2002 regarding this question.
255 PARKWAY * P.O.BOX 478 * COPPELL TX 75019 * TEL 972/462 0022 * FAX 972/304 3673