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2000-16 Cooperative Drug Agency Agreement

December 20, 2000

TO:    County Clerks, County Treasurers, County Prosecutors, County Sheriffs, County Controllers and Administrators, and City Councils, Village Councils and Township Boards and Local Law Enforcement Agencies

FROM:    Richard L. Baldermann, Administrator
                  Local Audit and Finance Division

SUBJECT:    Cooperative Drug Agency Agreements

The sample agreement, attached to our August 24, 1999 numbered letter (No. 99-5), has raised concerns about the length of the agreement.

Section 5 of the Urban Cooperation Act of 1967 (MCL 124.505) states that a joint exercise of power pursuant to that act shall be made by contract or contracts in the form of an inter-local agreement. The section lists matters that may be included in the agreement, which are:

(a) The purpose of the inter-local agreement or the power to be exercised and the method by which the purpose will be accomplished or the manner in which the power will be exercised.
(b) The duration of the inter-local agreement and the method by which it may be rescinded or terminated by any participating public agency prior to the stated date of termination.
(c) The precise organization, composition, and nature of any separate legal or administrative entity created in the inter-local agreement with the powers designated to that entity.
(d) The manner in which the parties to the inter-local agreement will provide for financial support . . .
(e) The manner in which funds may be paid to and disbursed by the agency.
(f) A method or formula for equitably providing for and allocating revenues.
(g) Personnel.
(h) The fixing and collecting of charges, rates, rents, fees . . . and the making and promulgation of necessary rules and regulations and their enforcement.
(i) The manner in which purchases shall be made and contracts entered into.
(j) The acquisition, ownership, custody, operation, maintenance, lease, or sale of real or personal property.
(k) The disposition, division, or distribution of any property acquired.
(l) The manner in which any surplus money shall be returned.
(m) The acceptance of gifts, grants, assistance funds, or bequests.
(n) claims for federal or state aid.
(o) The manner of responding for any liabilities and insuring against any such liability.
(p) The adjudication of disputes or disagreements.
(q) The manner in which strict accountability of all funds shall be provided for and the manner in which reports, including an annual independent audit, of all receipts and disbursements shall be prepared and presented to each participating party to the inter-local agreement.
(r) The manner of investing surplus funds or proceeds of grants, gifts, or bequests.
(s) Any other necessary and proper matters agreed upon by the participating public agencies.

The following table includes sample language (NOT required language) for an inter-local agreement in the first column and reference to the provision in Section 5 of the Urban Cooperation Act as well as comments in the second column.

Section 5 reference
And Comments
WHEREAS, the participating entities (cities, townships, counties, villages, state agencies, and federal agencies) ("participating entities") enter into this agreement pursuant to the Urban Cooperation Act, MCL 124.501 et seq.; 

WHEREAS, the participating entities are desirous of establishing a cooperative task force by combining their investigative services, manpower, and/or resources for the purpose of enforcing narcotic and/or controlled substance laws and deterring related criminal activity; and

WHEREAS, the participating entities do not intend by this agreement to establish this task force or its command board as a separate legal or administrative entity under Section 7 (1) of the Urban Cooperation Act, MCL 124.507 (1) and have not therefore provided for or otherwise established such an entity by the terms of this agreement.

THEREFORE, in consideration of the mutual interest, obligations and promises herein contained, the participating entities hereto agree as follows:

124.505(a) Purpose

An agreement could also include other cooperative law enforcement activities and State and Federal grant activities.




The participating entities enter into this agreement to create the ________ for the purpose of combining their efforts toward the enforcement of narcotic and controlled substance laws in the State of Michigan.

An agreement could also include other cooperative law enforcement activities and State and Federal grant activities

A Command Board shall be formed which will consist of the administrative heads, or their representatives, of the police agencies of the participating entities contributing law enforcement personnel to ________. The Command Board shall meet on matters concerning the day to day operations of the team. A quorum shall consist of a simple majority of the members present and voting.

124.505(c) Organization

Additional structure of the board, functions and procedures may be included here or in separate by-laws, such as:
1. Chairman
2. Vice Chairman
3. Secretary
4. Meetings
5. Meeting Frequency
6. Bill approval
7. Vacancies
8. Etc.


The Command Board shall adopt by-laws for the operational policies and procedures to be implemented and followed by ____________.

Matters to be considered for inclusion in the by-laws:
1. Budgeting
2. Investigation reports
4. Service of warrants
5. News releases
6. Equipment
7. Request for assistance
8. Etc.

All participating entities shall maintain at least one (1) full time police officer assigned to exclusively work in drug law enforcement with ________.

Each law enforcement officer assigned to ________ by his/her participating entity's police agency shall remain an agent of that participating entity's police agency. Said participating entity and officers assigned to ________ agree to conform to all operating procedures established by MSP, Criminal Investigative Division Policy Book, specifically including but not limited to, the handling of narcotic cases, confidential informants, evidence, and forfeiture procedures.

Personnel costs for sworn law enforcement officers assigned to ________, including wages, overtime, insurance, and other fringe benefits shall be provided for and paid by the participating entity supplying such personnel. The exception would be those personnel funded through grants.

124.505(g) Personnel

This section may also include finances and/or equipment in addition to or rather than an officer.


The Michigan Department of State Police shall appoint a __________Commander who shall have the authority, as designated by the Department of State Police and the Command Board, to coordinate the operation of ________________. The Commander will arrange for the training of participating police personnel, for the control and accounting of expenditures and property, and for the filing of a monthly report of ___________activity to each Command Board member.


Liability insurance and/or legal representation in civil suits for alleged tortious conduct and/or civil rights violations against _______personnel, a participating entity, and/or a participating entity's representative on the Command Board is the individual responsibility of each participating entity and a participating entity may provide liability insurance and/or legal representation for itself, for its personnel on ___________and/or for its representative on the Command Board.

A judgment for actual and/or punitive damages resulting from a finding of tortious conduct or violation of civil rights, against a participating entity's personnel, a participating entity itself and/or a participating entity's representative on the Command Board, may be paid by the participating entity which supplied the personnel against whom a judgment entered and/or which appointed the representative against whom a judgment entered No participating entity, ____________personnel or Command Board representative is liable for or required to satisfy a judgment against another participating entity, that entity's personnel on ______________ or that entity's representative on the Command Board. Further, ______________shall not indemnify assigned personnel, a participating entity, or its appointed representative to the Command Board for any claim or judgment referred to herein.

124.505(o) Liability

Any duly sworn police officer, while assigned to ________ and while working in furtherance of the purposes and activities of ________, shall have the same powers, duties, privileges and immunities as are conferred upon him/her as a police officer in his/her own jurisdiction, and in any jurisdiction within the State.


All property seized by ________ pursuant to MCL 333.7521 et seq., as amended, shall be maintained and handled pursuant to Michigan State Police guidelines under Michigan State Police Department policies, and will be recorded on the prescribed MSP forms. Property will be controlled, inspected, and disposed of according to MSP procedures.

When property is seized pursuant to said forfeiture act, an officer assigned to ________ seizing the property shall use the standard Michigan State Police Narcotics Forfeiture Forms. The Michigan State Police will be the Quartermaster and custodian of all property seized by ________ and will receive and maintain said seized property under MSP policies.

In the event that property seized by ________ is subsequently forfeited to the Command Board, the property will be disposed of in accordance with MCL 333.7524. All property forfeited to the Command Board and the proceeds from the sale of said property, shall be used to enhance law enforcement efforts pertaining to the Controlled Substance Act.

In the event that it is necessary to file judicial forfeiture proceedings, the ________ County Prosecutor shall file forfeiture proceedings for property seized by ________. Said forfeiture proceedings shall be instituted in the name of the ________ County Prosecuting Attorney.

The ________ County Prosecuting Attorney, by and through his/her designated assistant prosecuting attorney, working in conjunction with the ________ Commander, shall have the authority to establish sale prices, negotiate real estate transactions, accept bids, make counter-offers, sign deeds and other documents associated with the sale of real estate forfeited to the Command Board.

124.505(h) Rules and regulations

If other cooperative law enforcement activities are included in the agreement, additional language to address other law enforcement statutory and forfeiture provisions must be included.


The City of ________ shall be the custodian of all seized and forfeited monies for purposes stated under MCL 333.7524. All such money received by the City of ________ shall be placed in a "Drug Law Enforcement Fund 265 Account." The City shall establish two such accounts: (1) A "Pending" non-adjudicated forfeiture account in which shall be placed all seized (except evidence) monies prior to settlement or judicial adjudication. Monies shall not be disbursed from said "Pending" account unless the City receives an Administrative Order, a Stipulation of Out-of-Court Settlement, a Judgment of Forfeiture, or a Court Order authorizing the release of said monies; (2) A "Revenue" account which shall contain forfeited monies, proceeds from the sales of forfeited real and personal property, a court ordered restitution receipts, and any other miscellaneous income received by ________ or the Command Board.

Property forfeited to the Command Board and used by ________ to enhance drug law enforcement shall be inventoried and otherwise accounted for by the City (the information may come directly from the task force) on an ongoing basis.

All existing funds and/or property in the possession of ________ shall be transferred and utilized pursuant to and in accordance with the terms of this Agreement.

124.505(h) Rules and regulations

Separate fund accounting for State and Federal grants, other type forfeitures, money, etc. is required.
1. Auto Theft
2. Omnibus Forfeiture
3. Etc.
Any restrictions in the related MCL sections will govern the disposition of forfeiture money under those acts.


The City of ________ shall perform those functions and exercise those powers and responsibilities set forth at MCL 333.7524 and is to receive funds obtained pursuant to MCL 333.7524, but only for the purposes specified under this agreement.

The City of ________, as the custodian of the seized and forfeited funds and property, shall comply with the terms of MCL 333.7524a with respect to the annual reports and audits required under that statute which pertain to the receipt and disbursement of forfeited property. Audit findings shall be submitted to each of the participating entities under this agreement.

The City of ________ shall also prepare and submit to each participating entity under this agreement, at the beginning of each fiscal year, a proposed line item budget. The proposed budget shall include proposed allocation in response to requests for drug law enforcement support from each participating entity. This budget shall be adopted by the City of ________ no later than May each year and submit the same to the participating entities for informational purposes.

Not withstanding any contrary provision, the City of ________ is to adopt a budget which provides for the payment of appropriated expenses from the drug forfeiture property received pursuant to MCL 333.7524 prior to the expenditure of monies.

Payments for the budgeted or appropriated expenses shall be made after receipt of appropriate documentation verifying the expenditures. 

124.505(h) Rules and regulations 
MCL 124.505 (i) Purchases

Separate fund accounting for State and Federal grants, other type forfeitures, money, etc. is required.
1. Auto Theft
2. Omnibus Forfeiture
3. Etc.
Any restrictions in the related MCL sections will govern the disposition of forfeiture money under those acts.

Specific expenses should be covered in the by-laws and comply with the applicable statutory provisions.



Any participating entity may withdraw from this agreement by providing not less than thirty (30) days prior written notice to each of the participating entities. The agreement may be terminated by joint action of all the participating entities at any time.


In the event that any participating entity withdraws from this agreement, any assets which have been retained by the City of ________ shall remain in the custody of the City and shall be disposed of as provided herein.


In the event of a complete termination of this agreement, any remaining assets shall be distributed to each of the participating entities. That distribution shall be proportionate to the number of law enforcement positions allocated, excluding grant funded positions, plus the proportionate amount of funds provided, if any, to the cooperative drug law enforcement effort in the preceding twenty-four (24) months by participating entities.



Date: _________ _______________________________
Michigan Department of State Police
Date: _________ _______________________________
County Board of Commissioners
Date: _________ _______________________________
 County Board of Commissioners
Date: _________ _______________________________
County Board of Commissioners
Date: _________
Mayor, City of ________
Date: _________ _______________________________
Township Supervisor
Date: _________ _______________________________
Federal Bureau of Investigation


Although the county sheriff(s), county prosecutor(s) and local police chief(s) are not parties to the agreement and aren't required to sign the agreement, they may sign as acknowledgement of their role as described in the agreement.

Date: _________ ______________________________

 County Sheriff Department

Date: _________ ___________________________________

 County Sheriff Department

Date: _________ ___________________________________

County Sheriff Department

Date: _________ ___________________________________

City of ________ Police Department

Date: _________ ___________________________________

Township Police Department

Date: _________ ___________________________________

County Prosecutor's Office

Date: _________ ___________________________________

County Prosecutor's Office

Date: _________ ___________________________________
County Prosecutor's Office