Could a Louisiana fire district fund a volunteer fire company and lease its trucks under a cooperative agreement?

Plain-English summary

Centerville's volunteer fire company and St. Mary Parish Fire Protection District No. 2 asked about their cooperative agreement. The district would fund the private nonprofit company for spending necessary or proper for fire prevention and control, and the company would account to the district for the money. The Attorney General considered the agreement valid because it served the fire-protection purposes of both entities.

The AG also approved the described member incentive plan, which paid more to members who participated more, and said the district could lease fire trucks belonging to the company under the same fire-protection arrangement. His answers concerned the proposed agreement and plan as described in the request.

Currency note

This opinion was issued in 2001. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

Could the public district fund the volunteer fire company?
The AG said a public body entering such an agreement must have a legal duty to provide the service. He found the described agreement valid, quoting its shared-purpose clause and the company's commitment to account for fire-protection funds.

Could volunteers receive different incentive payments based on activity?
The AG viewed the described plan as a fair way to provide higher remuneration to more active members.

Could the district lease trucks owned by the volunteer company?
The opinion said that lease would be valid in connection with the cooperative agreement's fire-protection purpose.

Background and statutory framework

The request described a public fire protection district formed under R.S. 40:1500 and a private nonprofit volunteer company. The AG applied the public-resources provision in Art. VII, Sec. 14 of the Louisiana Constitution. He stated that a public body must have a legal duty to provide the service, then cited the agreement's shared purpose and requirement that the company account for district funds used for fire prevention and control.

Citations and references

• R.S. 40:1500
• Art. VII, Sec. 14

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/01-0128

Original opinion text

April 19, 2001
OPINION 01-128

Peter Martin, Fire Chief
Centerville Volunteer Fire Dept.
P.O. Box 58
Centerville, LA 70522

Dear Chief Martin:

This office is in receipt of your request for an opinion of the Attorney General in regard to an agreement between St. Mary Parish Fire Protection District No. 2 and Centerville Volunteer Fire Department. You indicate The Centerville Volunteer Fire Company, a private, non- profit corporation was organized in November, 1960 with a nine man Board of Directors elected at the annual meeting of the Corporation. The St. Mary Parish Fire Protection District No. 2, a public corporation, was created in 1996 pursuant to R.S. 40:1500, and is authorized to perform all acts necessary for effective fire prevention and control for the protection of the property within the limits of the district.

You ask this office the following:

1. The District requests an opinion on a proposed Cooperative Endeavor Agreement between St. Mary Parish Fire Protection District No. 2 and Centerville Volunteer Fire Company (CVFC). You point out changes to the agreement will include a provision for renegotiations if ad valorem taxes are decreased, and a contract extension clause for the next ten years, after the current millage expires in 2005.

2. The Department requests an opinion on the incentive plan used by the Department.

3. Under the Cooperative Endeavor Agreement of March 10, 1997 the District Agrees to fund CVFC so that CVFC may be reimbursed for all amounts expended which are considered as necessary and proper for effective fire prevention or control, effective July 10, 1996. The District further agrees to fund CVFC for future amounts expended which are considered as necessary or proper for effective fire prevention or control throughout and during the existence of the said tax millage. CVFC agrees to utilize all funds received for purposes which are considered as necessary or proper for effective fire prevention or control and to be accountable to District for same. Can the District lease the fire trucks that the department owns?

Page 2

Chief Peter Martin
OPINION 01-128
Page 2

It appears that the Cooperative Endeavor Agreement is a valid agreement under Art. VII, Sec. 14, La. Const., This office has consistently expressed the opinion that the political subdivision must have a legal obligation or duty to provide the service for which the cooperative endeavor exists, and the provision of the Agreement clearly sets forth it is "to accomplish the respective purposes of each". Succinctly, the District agrees to funding CVFC for purposes of the Volunteer Fire Company and the District, and CVFC agrees to be accountable for the funding used in furtherance of its responsibilities for fire prevention and protection purposes..

In regard to your inquiry for an opinion of this office on the incentive plan, this office finds that the plan is designed to award the members on a basis of their activity so that the more active individuals receive more than those that are less active. This obviously establishes a fair system whereby those who do more are recognized for their participation by a higher remuneration.

In response to your third inquiry, we would restate our previous observation that the cooperative endeavor agreement is valid in fulfilling an obligation of both parties found "necessary or proper for effective fire prevention or control", and in this regard we would conclude it would be valid to have the District lease the fire trucks belonging to the Department.

We hope this sufficiently answers your questions, but if we can be of further assistance, do not hesitate to contact us.

Sincerely yours,

RICHARD P. IE;YOUB
Attorney General

By:____
BARBARA B. RUTLEDGE
Assistant Attorney General

RPI/bbr

OPINION 01-128

90-A-2 Public Funds - Loan,
Pledge or Grants
La. Const. Art VII, Sec 14

Page 3

Chief Peter Martin
OPINION 01-128
Page 3

The proposed Cooperate Endeavor
Agreement between Centerville
Volunteer Fire Co., and St. Mary Parish
Fire Protection District is a valid
agreement to accomplish the respective
purposes of each.

Peter Martin, Fire Chief
Centerville Volunteer Fire Dept.
P.O. Box 58
Centerville, LA 70522

Date Received: March 27, 2001
Date Released: April 19, 2001

BARBARA B. RUTLEDGE
Assistant Attorney General