Collaborations can be a cost-effective way for local governments to finance recreational facilities and their related programs. However, whenever entering into this type of relationship, a local government should have a basic understanding of the governing laws and be aware of common concerns that arise during collaboration negotiations.

Statutory Framework

Local governments are permitted to collaborate under Ohio law. RC 755.16 allows the cooperative funding of facilities and programs of a recreational nature, as long as the parties to the collaboration are political subdivisions. Under this statute, political subdivisions are defined as “any municipal corporation, township, township park district, county, or school district with any one or more of the same in any combination and a joint recreation district.” Specifically, the statute provides that the parties may jointly acquire, equip, operate and maintain parks, recreational facilities and community centers. Community centers are defined as facilities that: (1) are acquired, constructed, operated, or maintained by political subdivisions, school districts, or a joint recreation district; (2) may be used for governmental, civic, or educational operations or recreational activities; and (3) may be used only by the entities that acquire, construct, operate, or maintain them or by any other person upon terms and conditions determined by those entities. The statute allows the parties to appropriate money for these amenities and to contribute lands, money, personal property or services to the collaboration as may be agreed upon.

Common Considerations

To ensure that your interests are protected in the collaboration agreement, you should consider the following items when negotiating:

Contributions. Be sure to define the scope of the collaboration, such as the contributions to be made by the respective parties. Decide who will provide funds, property and/or services. Make sure to include any conditions relating to these contributions, e.g. annual appropriation, after-acquired property, etc.

Term. Define the term of the collaboration and determine whether extensions will be permitted.

Employees. Decide whether the parties’ employees will remain with their respective party or become employees of the collaboration. Consider how the collaboration will affect them for purposes of sovereign immunity.

Contracts with third parties. Determine if the joint entity will be contracting with any third parties to provide regular or periodic services, such as booster organizations or youth athletic leagues.

Insurance. Consider whether endorsements are needed for existing casualty and liability policies or if additional insurance is desired.

Daily operation and scheduling of the collaboration. Decide how the parties will handle daily operations - will this be done directly or delegated to staff such as parks and recreation director or school district athletic director, for example.

Evaluation. Consider when the parties will want to evaluate the collaboration.

Termination. Determine whether the parties can withdraw from the collaboration at will or only under certain conditions, such as following a specified notice period.

By thoroughly working through these considerations, you can ensure that all involved parties are protected and have an understanding of their relationship, ensuring a more successful collaboration.

Reprinted from Finley’s Ohio Municipal Service, with the permission of the publisher and copyright owner, West Group.