What Is a Joint Powers Agreement?

One of the most misunderstood concepts in contract law is the joint powers agreement. Many people don't understand how this complex relationship between, for example, a city and a school district, can affect their daily lives.

Definition

The Law.com dictionary defines a joint powers agreement as "a contract between a city, a county and/or a special district in which the city or county agrees to perform services, cooperate with, or lend its powers to the special district or other government entity."

Reasons

A joint powers agreement can help keep failing districts from losing any necessary services they may need. It may provide the district with electricity, gas, water or even police and fire protection, but it varies.

Control

Both the ruling power and the special district have some control over the joint powers agreement, but it varies with each contract. Often, there is a controlling board made up of people from both the ruling power and special district.

Benefits

Each side of the joint powers agreement gets benefits that depend on the agreement. Usually the ruling power gets money and some control over the special district, while the special district gets the benefits of assistance.

Example

In a typical joint powers agreement, a city may help one of its suburbs to keep schools open by providing money, books, desks or anything else needed. The suburb might then allow the city to bulldoze some local businesses to make way for a more efficient mall.

References

• Joint Powers Agreement: Legal Dictionary
• Frequently Asked Questions on Joint Powers Agreement: ND Department of Public Education
• Joint Powers Agreement: Law Dictionary