Article 4. Sale Or Lease Of Real Property of California Education Code >> Division 1. >> Title 1. >> Part 10.5. >> Chapter 4. >> Article 4.
The governing board of any school district may sell any real
property belonging to the school district or may lease for a term
not exceeding 99 years, any real property, together with any personal
property located thereon, belonging to the school district which is
not or will not be needed by the district for school classroom
buildings at the time of delivery of title or possession. The sale or
lease may be made without first taking a vote of the electors of the
district, and shall be made in the manner provided by this article.
Notwithstanding Section 17455, the sale by the governing
board of any school district of any real property belonging to the
school district or the lease by that governing board, for a term not
exceeding 99 years, of any real property, together with any personal
property located thereon, belonging to the school district shall not
be subject to any other provision of this chapter, to Article 5
(commencing with Section 17485), or to Article 8 (commencing with
Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5 of the
Government Code, if all of the following conditions are met:
(a) The property is sold or leased to another local governmental
agency, or to a nonprofit corporation that is organized for the
purpose of assisting one or more local governmental agencies in
obtaining financing.
(b) (1) In the case of the sale of school district property
pursuant to this section, the school district, as part of that same
sale transaction, simultaneously repurchases the same property that
is the subject of the transaction.
(2) In the case of the lease of school district property pursuant
to this section, the school district, as part of that same lease
transaction, simultaneously leases back, for a term that is not
substantially less than the term of that lease, the same property
that is the subject of the transaction.
(c) The financing proceeds obtained by the school district
pursuant to the transaction described in this section are expended
solely for capital outlay purposes, including the acquisition of real
property for intended use as a schoolsite and the construction,
reconstruction, and renovation of school facilities.
Notwithstanding any other provision of this part, in
connection with a sale, sale back, lease, or leaseback of school
district property, no proceeds obtained by the school district from
the sale of the sale back or leaseback agreement, or interests
therein, or a debt instrument payable from payments under the sale
back or leaseback agreement shall be used for general operating
purposes of the school district.
(a) Notwithstanding Article 8 (commencing with Section
54220) of Chapter 5 of Part 1 of Division 2 of Title 5 of the
Government Code, the governing board of a school district seeking to
sell or lease real property designed to provide direct instruction or
instructional support it deems to be surplus property shall first
offer that property for sale or lease to any charter school that, at
the time of the offer, has projections of at least 80 units of
in-district average daily attendance for the following fiscal year,
and has submitted a written request to the school district to be
notified of surplus property offered for sale or lease by the school
district, pursuant to the following conditions:
(1) The real property sold or leased shall be used by the charter
school exclusively to provide direct instruction or instructional
support.
(2) If the charter school purchased real property pursuant to this
section and fails to comply with paragraph (1), or otherwise desires
to dispose of the real property, all of the following shall apply:
(A) The charter school shall immediately offer that real property
for sale to the school district that previously owned the property.
The charter school shall comply, in that regard, with all
requirements under this section that would otherwise apply to a
school district.
(B) If the school district does not desire to purchase that real
property from the charter school, the school district shall furnish a
list of charter schools that have requested notification of surplus
property pursuant to subdivision (a). The charter school that owns
the real property shall offer that real property for sale to the
charter schools on this list and comply with all requirements under
this section that would otherwise apply to a school district. In the
event the charter school selling property receives more than one
offer, the charter school may determine to which charter school it
will sell the property. The charter school purchasing the real
property shall comply with all provisions of this section.
(C) If that real property remains unsold pursuant to subparagraph
(A) or (B), the charter school selling the real property shall offer
that property for sale pursuant to Article 5 (commencing with Section
17485). The charter school shall comply with all requirements under
that article that would otherwise apply to a school district, except
that a sale price computed under subdivision (a) of Section 17491
shall be based upon the cost of acquisition incurred by the school
district that sold the property pursuant to this subdivision, rather
than that incurred by the charter school.
(D) If all or part of the real property remains unsold pursuant to
subparagraph (C), the charter school selling that real property
shall dispose of the remaining property pursuant to subdivisions (c),
(d), (e), and (f) of Section 17464. References in Section 17464 to a
school district shall mean the charter school selling the real
property.
(3) In the event, alternatively, of a lease of real property
pursuant to this subdivision, the failure by the charter school to
comply with paragraph (1) shall constitute a breach of the lease,
entitling the school district to immediate possession of the real
property, in addition to any damages to which the school district may
be entitled under the lease agreement.
(4) The school district, and each of the entities authorized to
receive offers of sale pursuant to this article or Article 5
(commencing with Section 17485), has standing to enforce the
conditions set forth in this subdivision, and shall be entitled to
the payment of reasonable attorney's fees incurred as a prevailing
party in any action or proceeding brought to enforce any of those
conditions.
(b) A school district seeking to sell or lease real property
designed to provide direct instruction or instructional support it
deems to be surplus property shall provide a written offer to any
charter school that, at the time of the offer, has projections of at
least 80 units of in-district average daily attendance for the
following fiscal year, and has submitted a written request to the
school district to be notified of surplus property offered for sale
or lease by the school district. A charter school desiring to
purchase or lease the property shall, within 60 days after a written
offer is received, notify the school district of its intent to
purchase or lease the property. In the event more than one charter
school notifies the school district of their intent to purchase or
lease the property, the governing board of the school district may
determine to which charter school to sell or lease the property.
(c) The price at which property described in this section is sold
pursuant to this section shall not exceed the school district's cost
of acquisition, adjusted by a factor equivalent to the percentage
increase or decrease in the cost of living from the date of purchase
to the year in which the offer of sale is made, plus the cost of any
school facilities construction undertaken on the property by the
school district since its acquisition of the land, adjusted by a
factor equivalent to the increase or decrease in the statewide cost
index for class B construction, as annually determined by the State
Allocation Board pursuant to Section 17072.10, from the year the
improvement is completed to the year in which the sale is made. In
the event a statewide cost index for class B construction is not
available, the school district shall use a factor equal to the
average statewide cost index for class B construction for the
preceding 10 calendar years. In no event shall the price be less than
25 percent of the fair market value of the property described in
this section or less than the amount necessary to retire the share of
local bonded indebtedness plus the amount of the original cost of
the approved state aid applications on the property. The percentage
of annual increase or decrease in the cost of living shall be the
amount shown for January 1 of the applicable year by the then current
Bureau of Labor Statistics Consumers Price Index for the area in
which the schoolsite is located.
(d) Land that is leased pursuant to this section shall be leased
at an annual rate of not more than 5 percent of the maximum sales
price determined pursuant to subdivision (c), adjusted annually by a
factor equivalent to the percentage increase or decrease in the cost
of living for the immediately preceding year. The percentage of
annual increase or decrease in the cost of living shall be the amount
shown for January 1 of the applicable year by the then current
Bureau of Labor Statistics Consumers Price Index for the area in
which the schoolsite is located.
(e) The sale or lease of the real property of a school district,
as authorized under subdivision (a), shall not occur until the school
district advisory committee has held hearings pursuant to
subdivision (c) of Section 17390.
(f) This section shall only apply to real property identified by a
school district as surplus property after July 1, 2012. A school
district selling or leasing surplus property is not required to offer
that property to a charter school pursuant to this section on or
after July 1, 2016.
(g) The construction of a school building, as defined in Section
17368, located on real property purchased by a charter school
pursuant to this section shall comply with the design and
construction requirements pursuant to Article 3 (commencing with
Section 17280) and Article 6 (commencing with Section 17365). The
reconstruction or alteration of, or an addition to, a school
building, as defined in Section 17368, located on real property
purchased by a charter school pursuant to this section is required to
comply with the design and construction requirements pursuant to
Article 3 (commencing with Section 17280) and Article 6 (commencing
with Section 17365) only if the building complied with those sections
on the date the real property was purchased by the charter school.
(h) A charter school selling real property obtained pursuant to
this section shall use the proceeds only for capital outlay,
maintenance, and other facility-related costs.
(a) Notwithstanding Article 8 (commencing with Section
54220) of Chapter 5 of Part 1 of Division 2 of Title 5 of the
Government Code, the governing board of a school district complying
with Section 101238.2 of Title 22 of the California Code of
Regulations and seeking to sell or lease real property it deems to be
surplus property and for which a charter school has not accepted an
offer to purchase or lease pursuant to Section 17457.5, may first
offer that property for sale or lease to a contracting agency, as
defined in Section 8208, pursuant to the following conditions:
(1) The real property sold or leased shall be used by the
contracting agency, or by a successor in interest to the contracting
agency, exclusively for the delivery of child care and development
services, as defined in Section 8208, for a period of not less than
five years from the date upon which the real property is made
available to that agency, or successor in interest, pursuant to the
sale, or, in the event of a lease, until the real property is
returned to the possession of the school district, whichever occurs
earlier.
(2) In the event that the contracting agency, or any successor in
interest, fails to comply with the condition set forth in paragraph
(1), that agency, or successor in interest, that purchased the real
property, is required immediately to offer that real property for
sale pursuant to this article and Article 5 (commencing with Section
17485) and to sell the property pursuant to those provisions. The
agency, or its successor in interest, shall comply, in that regard,
with all requirements under those provisions that would otherwise
apply to a school district, except that a sale price computed under
subdivision (a) of Section 17491 shall be based upon the cost of
acquisition incurred by the school district that sold the property
pursuant to this subdivision, rather than that incurred by the
contracting agency or its successor in interest. In the event,
alternatively, of a lease of real property pursuant to this
subdivision, the failure by the contracting agency, or any successor
in interest, to comply with paragraph (1) shall constitute a breach
of the lease, entitling the school district to immediate possession
of the real property, in addition to any damages to which the school
district may be entitled under the lease agreement.
(3) The school district, and each of the entities authorized to
receive offers of sale pursuant to this article or Article 5
(commencing with Section 17485), has standing to enforce the
conditions set forth in this subdivision, and shall be entitled to
the payment of reasonable attorneys' fees incurred as a prevailing
party in any action or proceeding brought to enforce any of those
conditions.
(b) No sale or lease of the real property of a school district, as
authorized under subdivision (a), may occur until the school
district advisory committee has held hearings pursuant to subdivision
(c) of Section 17390.
(c) This section is in addition to, and shall not limit the
requirements of, Article 5 (commencing with Section 17485), but this
section may be used with regard to property that the governing board
of a school district may retain under Section 17490.
The sale of real property pursuant to this article shall be
subject to the provisions of Article 8 (commencing with Section
54220) of Chapter 5 of Part 1 of Division 2 of Title 5 of the
Government Code.
(a) Notwithstanding subdivision (c) of this section or
Sections 17456, 17457, and 42133, the West Contra Costa Unified
School District, formerly known as the Richmond Unified School
District, may enter into an agreement to lease any real property
pursuant to Section 17456 and may use the financing proceeds from the
agreement to terminate the Lease-Purchase Agreement, dated May 1,
1988, between the Richmond Unified School District Financing
Corporation and the Richmond Unified School District. However, any
property that has been leased, rented, sold, or otherwise utilized
pursuant to Section 41470 may not be leased pursuant to this section.
(b) The West Contra Costa Unified School District shall notify the
Controller at the time the district enters into a lease agreement
pursuant to subdivision (a). That notice shall set forth a schedule
of the rental payments payable under the lease agreement and shall
include the name and address of the trustee to whom the right to
receive the rental payments has been assigned.
(c) Upon written notification by the trustee that the school
district has not made one or more of the rental payments required by
the terms of the lease, the Controller shall pay to the trustee from
Section A of the State School Fund the defaulted rental payment. That
payment by the Controller shall not exceed the amount of any
apportionment entitlement of the district to moneys in Section A of
the State School Fund, less any payments required in that fiscal year
to repay any state loans made to the district. The Controller shall
withhold the amount of any payment made under this subdivision,
including reimbursement of the Controller's administrative costs as
determined under a schedule approved by the California Debt Advisory
Commission, from subsequent apportionments to the West Contra Costa
Unified School District from Section A of the State School Fund.
(d) Nothing in this section shall be construed to obligate the
state to make any payment to, or on behalf of, the West Contra Costa
Unified School District from Section A of the State School Fund in
any amount, pursuant to any particular allocation formula, or to make
any other payment to, or on behalf of, the district, including, but
not limited to, any payment of those rental payments.
(e) Any apportionments made by the Controller pursuant to
subdivision (c) shall be deemed to be an allocation to the West
Contra Costa Unified School District for purposes of subdivision (b)
of Section 8 of Article XVI of the California Constitution, and for
purposes of Chapter 2 (commencing with Section 41200) of Part 24.
(a) The governing board of any school district that has, by
majority vote, established a standard rate or rates for the lease
pursuant to this article of its real property may, by majority vote,
delegate to the officer or employee as the governing board may
designate, the power to enter into any lease, for and on behalf of
the district, of any real property of the school district, with
respect to which real property either the district has received only
one sealed proposal that conforms with the existing standard rate or
rates, from a responsible bidder, and no oral bid that would meet the
requirements of Section 17473, or the lease is to be entered into
pursuant to Section 17480.
(b) The governing board of any school district may, by majority
vote, delegate to such officer or employee as the governing board may
designate, the power to enter into any lease, permit, or agreement
for the use by the district of buildings or other facilities if the
use is to be granted to the district without charge.
(a) The funds derived from the sale of surplus property
shall be used for capital outlay or for costs of maintenance of
school district property that the governing board of the school
district determines will not recur within a five-year period.
Proceeds from a lease of school district property with an option to
purchase may be deposited into a restricted fund for the routine
repair of district facilities, as defined by the State Allocation
Board, for up to a five-year period. In addition, the proceeds from
the sale or lease with option to purchase may be deposited in the
general fund of the district if the school district governing board
and the State Allocation Board have determined that the district has
no anticipated need for additional sites or building construction for
the ten-year period following the sale or lease with option to
purchase, and the district has no major deferred maintenance
requirements. Proceeds from the sale or lease with option to purchase
of school district property shall be used for one-time expenditures,
and may not be used for ongoing expenditures including, but not
limited to, salaries and other general operating expenses.
(b) The proceeds may also be deposited into a special reserve fund
for capital outlay, for costs of maintenance of school district
property that the governing board determines will not recur within a
five-year period, or for the future maintenance and renovation of
schoolsites if the district governing board and the State Allocation
Board have determined that the district has no anticipated need for
schoolsites or building construction or major deferred maintenance
projects for a ten-year period following the sale or lease with
option to purchase. Proceeds deposited in the special reserve fund
shall not be available for general operating expenses as provided in
Section 42842.
(c) The State Allocation Board, in consultation with the
department, shall adopt regulations that govern the use of proceeds
pursuant to this section for one-time expenditures and define ongoing
expenditures for purposes of subdivision (a).
(d) Notwithstanding a determination by the State Allocation Board
pursuant to subdivision (a) that a school district has no anticipated
need for additional sites or building construction for the ten-year
period following the sale or lease with option to purchase of surplus
school property, the district may apply for new construction or
modernization funding pursuant to this chapter if both of the
following conditions are satisfied:
(1) Five years have elapsed since the date upon which the sale or
lease with option to purchase was executed.
(2) The State Allocation Board determines that the district has
demonstrated enrollment growth or a need for additional sites or
building construction that the district could not have easily
anticipated at the time the board made its original determination
that the district had no anticipated need for the ten-year period
following the sale or lease with option to purchase.
(a) The State Allocation Board may establish a program
that requires a school district, county office of education, or
charter school that sells real property that was purchased with or
modernized with, or on which improvements were constructed that were
funded with, any moneys from a state school facilities funding
program, to return to the State Allocation Board the moneys the
school district, county office of education, or charter school
received from the state school facilities funding program for the
purchase, modernization, or construction if all of the following
conditions are met:
(1) The real property is not sold to a charter school pursuant to
Section 17457.5, a school district, a county office of education, or
an agency that will use the property exclusively for the delivery of
child care and development services pursuant to Section 17458.
(2) The proceeds from the sale of the real property are not used
for capital outlay.
(3) The real property was purchased, or the improvements were
constructed or modernized on the real property, within 10 years
before the real property is sold.
(b) The moneys to be returned to the State Allocation Board under
this section are those received within 10 years before the real
property is sold.
(c) If a portion of the real property is sold, a proportionate
amount of funds received from a state school facilities funding
program shall be returned to the State Allocation Board under this
section based on the percentage of the real property sold.
The board shall reduce an apportionment of hardship
assistance awarded to a school district pursuant to Article 8
(commencing with Section 17075.10) by an amount equal to the amount
of any proceeds from the sale of surplus property used for a one-time
expenditure of the school district pursuant to Section 17462.5 for
five years following the expenditure.
Notwithstanding Section 17462, a school district having an
average daily attendance of less than 10,001 in any fiscal year may
deposit any and all interest earned on the funds derived from the
sale in that fiscal year of surplus property into the general fund of
the school district for any general fund purpose, subject to the
following conditions:
(a) Before that deposit, the school district shall submit to the
State Allocation Board a capital outlay plan for the school district
for a period of five years following that sale, together with a
declaration of the finding by the governing board of the school
district that the school facilities needs of the school district can
be met over that five-year period without funding or other assistance
from any state school facilities funding program. No later than the
date upon which that initial five-year period concludes, the school
district shall submit to the State Allocation Board a capital outlay
plan for the school district for the subsequent five-year period.
(b) Before the decision to place that interest money into the
school district's general fund, the governing board of the school
district shall consider the extent to which it is necessary or
appropriate to expend that money to meet the school district's needs
relative to capital outlay, facilities, modernization, and deferred
maintenance. In addition, as to any interest money deposited into the
school district's general fund pursuant to this section, the
governing board of the school district shall consider the extent to
which it is necessary or appropriate to expend the money to meet the
school district's needs relative to ongoing maintenance before
expending that money for any other purpose.
(c) A school district that deposits interest into its general fund
pursuant to the authority set forth in this section shall not be
eligible during the 10-year period described in subdivision (a) for
funding or other assistance under Chapter 12 (commencing with Section
17000) or Chapter 14 (commencing with Section 17085) of Part 10, or
any other state school facilities funding program.
(d) If a school district seeks state funding pursuant to Chapter
12 (commencing with Section 17000) of Part 10, Chapter 14 (commencing
with Section 17085) of Part 10, or any other state school facilities
funding program, on or after the expiration of the 10-year period
specified in subdivision (c), any state funding received by the
school district from the program shall be reduced by any remaining
funds derived from the sale of that surplus property by the school
district and any unencumbered interest earned on those funds.
Except as provided for in Article 2 (commencing with Section
17230) of Chapter 1, the sale or lease with an option to purchase of
real property by a school district shall be in accordance with the
following priorities and procedures:
(a) First, the property shall be offered for sale or lease
pursuant to Section 17457.5 to any interested charter school for
purposes of providing direct instruction or instructional support.
(b) Second, the property shall be offered for park or recreational
purposes pursuant to Article 8 (commencing with Section 54220) of
Chapter 5 of Part 1 of Division 2 of Title 5 of the Government Code,
in any instance in which that article is applicable.
(c) Third, the property shall be offered for sale or lease with an
option to purchase, at fair market value in both of the following
ways:
(1) In writing, to the Director of General Services, the Regents
of the University of California, the Trustees of the California State
University, the county and city in which the property is situated,
to any public housing authority in the county in which the property
is situated, and to any entity referenced in paragraph (2) that has
submitted a written request to the school district to be directly
notified of the offer for sale or lease with an option to purchase
the real property by the school district.
(2) By public notice to any public district, public authority,
public agency, public corporation, or any other political subdivision
in this state, to the federal government, and to nonprofit
charitable corporations existing on December 31, 1979, and organized
pursuant to Part 3 (commencing with Section 10200) of Division 2 of
Title 1 of the Corporations Code then in effect or organized on or
after January 1, 1980, as a public benefit corporation under Part 2
(commencing with Section 5110) of Division 2 of Title 1 of the
Corporations Code. Public notice shall consist of at least publishing
its intention to dispose of the real property in a newspaper of
general circulation within the school district, or if there is no
newspaper of general circulation in the school district, then in any
newspaper of general circulation that is regularly circulated in the
school district. The notice shall specify that the property is being
made available to all public districts, public authorities, public
agencies, and other political subdivisions or public corporations in
this state, and to other nonprofit charitable or nonprofit public
benefit corporations.
(d) Publication of notice pursuant to this section shall be once
each week for three successive weeks. Three publications in a
newspaper regularly published once a week or more often, with at
least five days intervening between the respective publication dates
not counting the publication dates, are sufficient. The written
notice required by paragraph (1) of subdivision (c) shall be mailed
no later than the date of the second published notice.
(e) The entity desiring to purchase or lease the property shall,
within 60 days after the third publication of notice, notify the
school district of its intent to purchase or lease the property. If
the entity desiring to purchase or lease the property and the school
district are unable to arrive at a mutually satisfactory price or
lease payment during the 60-day period, the property may be disposed
of as otherwise provided in this section. In the event the school
district receives offers from more than one entity pursuant to this
subdivision, the school district governing board may determine which
of these offers to accept.
(f) Fourth, the property may be disposed of in any other manner
authorized by law.
(g) This section shall become operative January 1, 1988.
(a) As used in this section, the terms "district," "special
education local plan area," and "county office" have the same meaning
as prescribed by Part 30 (commencing with Section 56000).
(b) The governing board of a school district that adopts a
resolution of intent to lease vacant classrooms shall first offer to
lease the classrooms for special education programs that are provided
by either other districts that comprise part of the special
education local plan area in which the leasing district is included
or by the county office having jurisdiction over the leasing
district, to the pupils of the leasing district, in whole or in part.
(c) Upon adoption of the resolution, the governing board shall
notify, in writing, other districts or the county office, as
specified in subdivision (b), of its intent to lease vacant
classrooms. The notice shall describe the vacant classrooms, shall
specify that the lease shall not exceed a term of 99 years and that
the lease payment and other terms of the lease are subject to
negotiation, and shall state that the offer to lease is valid for no
more than 60 days after receipt thereof.
(d) Notwithstanding Section 17466, the governing board may include
in its resolution a time for a public meeting of the governing board
to be held at its regular place of meeting at which sealed proposals
to lease will be received and considered, and, notwithstanding
Section 17469, may post copies of the resolution and publish notice
of the adoption of the resolution. However, the governing board shall
not act on any proposal prior to the first of the following
conditions occurring:
(1) Receipt from the county superintendent or the public education
agency, as appropriate, of its intent to lease the classrooms or of
its intent not to do so.
(2) Expiration of the 60-day period prescribed by subdivision (c).
(e) An entity desiring to lease the vacant classrooms shall,
within 60 days from receipt of the notification, inform the governing
board, in writing, of its intent to lease or not to lease the
classrooms.
(f) (1) The lease payments and other terms of the lease for vacant
classrooms leased to other districts or to the county office, as
specified in subdivision (b), shall be negotiated by the entity
desiring to lease the vacant classrooms and the governing board. Any
entity eligible to lease vacant classrooms pursuant to this section
and any governing board may negotiate lease payments prior to the
availability of the vacant classrooms.
(2) The lease payments shall not exceed the district's actual
costs for maintenance, operation, and custodial services for the
leased classrooms.
(3) If more than one governing board offers to lease classrooms,
the entity desiring to lease such classrooms may elect to negotiate
either individually with each district, or jointly, with some or all
of such districts. If the entity elects joint negotiations, the lease
payments shall not exceed the participating districts' average
actual costs for maintenance, operation, and custodial services for
the leased classrooms.
(g) If the governing board and the entity desiring to lease the
classrooms are unable to complete negotiations for the lease and
arrive at a mutually satisfactory lease within the same 60-day period
that the entity has to inform the governing board of its intent to
lease or not lease, the governing board may lease the classrooms in
accordance with the provisions of this article.
(h) If vacant classrooms are available in both operating and
nonoperating schools, the governing board, prior to adopting a
resolution of intent to lease, shall consider which school would
provide the environment least restrictive to the needs of handicapped
pupils or individuals with exceptional needs, as appropriate, for
whom the county superintendent or public education agency provides
special education programs.
Before ordering the sale or lease of any property the
governing board, in a regular open meeting, by a two-thirds vote of
all its members, shall adopt a resolution, declaring its intention to
sell or lease the property, as the case may be. The resolution shall
describe the property proposed to be sold or leased in such manner
as to identify it and shall specify the minimum price or rental and
the terms upon which it will be sold or leased and the commission, or
rate thereof, if any, which the board will pay to a licensed real
estate broker out of the minimum price or rental. The resolution
shall fix a time not less than three weeks thereafter for a public
meeting of the governing board to be held at its regular place of
meeting, at which sealed proposals to purchase or lease will be
received and considered.
In lieu of the declaration of intention to lease real
property provided in Section 17466, the governing board of any school
district having an average daily attendance of 400,000 or more as
shown by the annual report of the county superintendent of schools
for the preceding year may publish a notice three times in a period
of not less than 15 days in a newspaper of general circulation
published in the district. The notice shall describe the property
proposed to be leased in such manner as to identify it and shall
specify the minimum rental and terms upon which it will be leased.
The notice shall fix a time not less than 15 days thereafter for a
public meeting of the governing board to be held at its regular place
of meeting at which proposal to lease will be received and
considered.
The governing board by majority vote may adopt a ruling delegating
to such officer or employee of the district as the board may
designate, authority to perform the duties prescribed in this
section.
Bids received under this section shall be received, accepted, or
rejected in accordance with the provisions of this article.
If, in the discretion of the board, it is advisable to offer
to pay a commission to a licensed real estate broker who is
instrumental in obtaining any proposal, the commission shall be
specified in the resolution. No commission shall be paid unless there
is contained in or with the sealed proposal or stated in or with the
oral bid, which is finally accepted, the name of the licensed real
estate broker to whom it is to be paid, and the amount or rate
thereof. Any commission shall, however, be paid only out of money
received by the board from the sale or rental of the real property.
Notice of the adoption of the resolution and of the time and
place of holding the meeting shall be given by posting copies of the
resolution signed by the board or by a majority thereof in three
public places in the district, not less than 15 days before the date
of the meeting, and by publishing the notice not less than once a
week for three successive weeks before the meeting in a newspaper of
general circulation published in the county in which the district or
any part thereof is situated, if any such newspaper is published
therein.
(a) The governing board of a school district that intends to
sell real property pursuant to this article shall take reasonable
steps to ensure that the former owner from whom the district acquired
the property receives notice of the public meeting prescribed by
Section 17466, in writing, by certified mail, at least 60 days prior
to the meeting.
(b) The governing board of a school district shall not be required
to accord the former owner the right to purchase the property at the
tentatively accepted highest bid price nor to offer to sell the
property to the former owner at the tentatively accepted highest bid
price.
Whenever it is proposed to lease real property and the
governing board unanimously determines in the resolution that in its
opinion, the monthly rental value of the property does not exceed the
sum of fifty dollars ($50), the resolution need not be posted and
may, before the date of the meeting, be published in two successive
issues of a weekly newspaper or in five successive issues of a daily
newspaper. The newspaper in which the notice is published shall be
one published in the district and having a general circulation there;
or if there is no newspaper, then one having a general circulation
in the district; or if there is no newspaper, then in one having a
general circulation in a county in which the district or any part
thereof is situated.
At the time and place fixed in the resolution for the
meeting of the governing body, all sealed proposals which have been
received shall, in public session, be opened, examined, and declared
by the board. Of the proposals submitted which conform to all terms
and conditions specified in the resolution of intention to sell or to
lease and which are made by responsible bidders, the proposal which
is the highest, after deducting therefrom the commission, if any, to
be paid a licensed real estate broker in connection therewith, shall
be finally accepted, unless a higher oral bid is accepted or the
board rejects all bids.
Before accepting any written proposal, the board shall call
for oral bids. If, upon the call for oral bidding, any responsible
person offers to purchase the property or to lease the property, as
the case may be, upon the terms and conditions specified in the
resolution, for a price or rental exceeding by at least 5 percent,
the highest written proposal, after deducting the commission, if any,
to be paid a licensed real estate broker in connection therewith,
then the oral bid which is the highest after deducting any commission
to be paid a licensed real estate broker, in connection therewith,
which is made by a responsible person, shall be finally accepted.
Final acceptance shall not be made, however, until the oral bid is
reduced to writing and signed by the offeror.
In the event of a sale on a higher oral bid to a purchaser
procured by a licensed real estate broker, other than the broker who
submitted the highest written proposal, and who is qualified as
provided in Section 17468 of this code, the board shall allow a
commission on the full amount for which the sale is confirmed.
One-half of the commission on the amount of the highest written
proposal shall be paid to the broker who submitted it, and the
balance of the commission on the purchase price to the broker who
procured the purchaser to whom the sale was confirmed.
The final acceptance by the governing body may be made
either at the same session or at any adjourned session of the same
meeting held within the 10 days next following.
The governing body may at the session, if it deems such
action to be for the best public interest, reject any and all bids,
either written or oral, and withdraw the property from sale or lease.
(a) (1) If the governing board has complied with the
provisions of this article, and no proposals are submitted or the
proposals submitted do not conform with all terms and conditions
specified in the resolution of intent to lease, the governing board
may within one year thereafter, or one year after the passage of 30
days from the rejection of a public entity's nonconforming proposal,
as appropriate, lease such real property, together with any personal
property located thereon, to any lessee, at a price not less than
fair market value in accordance with any terms and conditions agreed
upon by the governing board and the lessee, except that the term of a
lease shall not exceed three years. Sections 17461, 17464, and 17466
to 17469, inclusive, and Sections 17471 to 17473, inclusive, shall
not apply to the lease.
(2) The governing board may by majority vote delegate an officer
or employee of the district, or any other third person, to secure a
lessee and to negotiate the terms and conditions of the lease.
However, the lease shall not be executed unless the governing board
by majority vote, at a public meeting, approves the lease.
(3) If a public entity has submitted a nonconforming proposal, the
governing board shall not take any action pursuant to this
subdivision until 30 days after the rejection of the proposal.
(b) Subdivision (a) shall not apply if a public entity has
submitted a proposal that does not conform with all the terms and
conditions specified in the resolution of intent to lease, and if the
public entity requests, in writing, within 30 days from the
rejection of its proposal, that the governing board lease the real
property, subject to the resolution of intent, in accordance with
this article.
Any resolution of acceptance of any bid made by the
governing body authorizes and directs the president of the governing
body, or other presiding officer, or the members thereof, to execute
a deed or lease and to deliver it upon performance and compliance by
the purchaser or lessee of all the terms or conditions of his or her
contract to be performed concurrently therewith.
Nothing in Sections 17455 to 17542, inclusive, shall prevent
the governing board of any school district from acquiring, leasing
or subleasing property pursuant to Section 1261 of the Military and
Veterans Code.
The governing board of any school district may, without
complying with any other provision of this article, let in the name
of the district any buildings, grounds, or space therein, together
with any personal property located thereon, not needed for school
classroom buildings upon any terms and conditions as may be agreed
upon by the governing board of the district and the lessee thereof
for a period not exceeding 30 separate or consecutive calendar days
or portions thereof in each fiscal year.
In addition to any other authority to lease real property,
the governing board of a school district, by a two-thirds vote of its
members, may lease, for a term not exceeding three months, school
district property having a residence thereon, which cannot be
developed for district purposes because of the unavailability of
funds. The lease shall be upon any terms and conditions that the
parties thereto may agree and may be entered into without complying
with any provisions in this code except as provided in this section.
The governing board of a school district may, with the
approval of the county board of supervisors, sell or lease any
building of the district together with the site upon which the
building is located, without complying with any other provisions of
this article, provided that the county board of supervisors finds
that all of the following conditions exist:
(a) The sale or lease is to be made to an incorporated nonprofit
tax-exempt community or civic organization with a membership
comprised predominantly of persons residing in the community in which
the building and site are situated.
(b) The building is not suitable for school purposes.
(c) The building has an historic value and its preservation and
utilization for the benefit of the community will best be ensured by
sale or lease to an organization specified in subdivision (a).
(d) The sale or lease is to be executed for a consideration to
enure to the school district reflecting the fair market value of the
property, or its fair rental value, as the case may be, except that
the sale may be executed for a consideration that is less than the
fair market value of the property if all of the following conditions
exist:
(1) More than 50 percent of the buildings on the site have been
designated as historically significant by the State Historical
Resources Commission.
(2) For a period of 25 years, commencing with the date that
possession of the property is transferred, the building or buildings
designated pursuant to paragraph (1) shall be used and maintained for
public benefit as an historical resource, and the site shall
otherwise be available for public access and use, including, but not
limited to, park and recreational uses. Any violation of this
condition shall result in the automatic reversion of title to the
property so transferred, without remuneration, to the transferor
school district. The condition set forth in this paragraph does not
prohibit any use of the site that is necessary or appropriate to its
use and maintenance for historical purposes.
(3) The consideration paid is equal to or greater than the sum of
the actual cost of the acquisition of the property by the school
district and the actual cost of any capital improvements made to the
property.
(e) Adequate provision has been made in connection with the sale
or lease transaction to protect the district against all civil
liabilities which might arise in connection with any use of the
building and site.
The failure to comply with the provisions of this article
shall not invalidate the transfer or conveyance of real property to a
purchaser or encumbrancer for value.
The governing board of any school district, constituting the
governing body of an elementary district, a high school district, or
any two of those districts, may sell any building, structure, or
other fixture, belonging to one of its respective districts to
another district governed by it, for an amount to be fixed by the
governing body, without advertisement for or receipt of bids or
compliance with any other provisions of this code.
Whenever any property is sold under this section it shall be
removed from the premises of the district selling it within 60 days
from the date of the sale.