2005 California Education Code Sections 81360-81384 Article 4. Sale or Lease of Real Property

81360.  The governing board of a community college district may sell
any real property belonging to the district or may lease for a term
not exceeding 99 years, any real property, together with any personal
property located thereon, belonging to the 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.
81361.  The governing board of any community college district which
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 such officer or employee as the governing board may
designate, the power to enter into leases, for and in behalf of the
district, of any real property of the district, with respect to which
real property the district has received only one sealed proposal
which conforms with the existing standard rate or rates, from a
responsible bidder and no oral bid which would meet the requirements
of Section 81371.
81363.  The funds derived from the sale or from a lease with an
option to purchase shall be used for capital outlay or deferred
maintenance; provided, however, that the proceeds of property sold or
leased in accordance with subdivision (a) or (b) of Section 81363.5
may be deposited in the general fund of the district if, prior to the
sale or lease, the community college district governing board has
determined that the district has no anticipated need for additional
sites or building construction for the five-year period following the
sale or lease.
81363.5.  Except as provided for in Article 9 (commencing with
Section 81190) of Chapter 1, the sale or lease with an option to
purchase of real property by a community college district shall be in
accordance with the following priorities and procedures.
   (a) First, 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 such article is applicable.
   (b) Second, the property shall be offered for sale or lease with
an option to purchase, at fair market value;
   (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,
and to any public housing authority in the county in which the
property is situated; and
   (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 for
charitable purposes on or after January 1, 1980, 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 district, or if there is
no such newspaper, then in any newspaper of general circulation that
is regularly circulated in the 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.
   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 such publication dates, are sufficient.  The written notice
required by paragraph (1) of this subdivision shall be mailed no
later than the date of the second published notice.
   The entity desiring to purchase or lease the property shall,
within 60 days after the third publication of notice, notify the
community college district of its intent to purchase or lease the
property.  If the entity desiring to purchase  or lease the property
and the 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
district receives offers from more than one entity pursuant to this
subdivision, the school district governing board may, in its
discretion, determine which of the offers to accept.
   (c) Third, the property may be disposed of in any other manner
authorized by law.
81364.  Any lease may be made upon such consideration or for such
rental, as is authorized by the action of the governing board.
81365.  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.
81366.  In lieu of the declaration of intention to lease real
property provided in Section 81365, the governing board of a
community college 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.
81367.  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.
81368.  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.
81369.  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 such newspaper, then one having a general
circulation in the district; or if there is no such newspaper, then
in one having a general circulation in a county in which the district
or any part thereof is situated.
81370.  (a) 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.  Except as provided in subdivision (b), 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.
   (b) Notwithstanding subdivision (a), the governing board of any
community college district may apply to the Board of Governors of the
California Community Colleges for a waiver of the requirement that
the governing board accept the highest responsible bid for the sale
or lease of real property.  The board of governors may grant a waiver
pursuant to this subdivision if it determines that the waiver is in
the best interests of the community college district.
81371.  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.
81371.5.  Notwithstanding any other provision of this article, the
board of governors may authorize the governing board of any community
college district within Orange County to enter into a negotiated
sale of real property owned by the district if that governing board
previously opened the bidding process two or more times to sell the
real property and did not accept any bids.
81372.  The governing board by majority vote may adopt a rule
delegating to an officer or employee of the district the authority to
perform the duties required to be performed by the governing board
under Sections 81370 and 81371.  If such rule is adopted, the
resolution required in Section 81365 shall specify, in lieu of the
public meeting of the governing board to be held at its regular place
of meeting, the place at which the designated officer or employee
will receive and open sealed proposals to purchase or lease and will
call for oral bids.
   All other provisions of this article not in conflict with the
delegation of this authority are applicable.  However, the final
acceptance of a bid, or rejection of all bids, shall be made by the
governing board at a public meeting.
81373.  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 81367, 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.
81374.  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.
81375.  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.
81376.  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
contract to be performed concurrently therewith.
81377.  Nothing in Sections 81360 to 81363, inclusive, shall prevent
the governing board of a community college district from acquiring,
leasing or subleasing property pursuant to Section 1261 of the
Military and Veterans Code.
81378.  The governing board of a community college 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 such terms and conditions as may be
agreed upon by the governing board of the district and the lessee
thereof for a period not exceeding five separate or consecutive
calendar days or portions thereof in each fiscal year.
81378.1.  (a) The governing board of a community college 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
academic activities, upon the terms and conditions agreed upon by the
governing board and the lessee for a period of more than five days
but less than five years, as determined by the governing board.  The
fair market value of the lease of any buildings, grounds, or space
therein, together with any personal property located thereon, let
pursuant to this section shall not exceed twenty-five thousand
dollars ($25,000) per year, as certified by the governing board.
Prior to executing the lease, the governing board shall include in an
agenda of a meeting of the board open to the public a description of
the proposed lease and an explanation of the methodology used to
establish the lease rate and for determining the fair market value of
the lease.
   (b) The governing board shall give public notice prior to taking
any action pursuant to subdivision (a).  The notice shall include a
description of the governing board's intended action.  The notice
shall be printed once a week for three successive weeks prior to the
board meeting described in subdivision (a) in a newspaper of general
circulation that is published at least once a week.
   (c) The governing board shall include as a condition in any
agreement to let any buildings, grounds, or space therein, together
with any personal property located thereon, a provision that the
agreement shall be subject to renegotiation and may be rescinded
after 60 days' notice to the lessee if the governing board determines
at any time during the term of the agreement that the buildings,
grounds, or space therein subject to the agreement are needed for
academic activities.  Any revenue derived pursuant to the agreement
shall be retained for the exclusive use of the community college
district whose buildings, grounds, or space therein are the basis of
the agreement and shall be used to supplement, but not supplant, any
state funding.  Any buildings, grounds, or space therein, let by the
district shall be included as space actually available for use by the
college in any calculations related to any plan for capital
construction submitted to the board of governors pursuant to Chapter
4 (commencing with Section 81800) or any other law.
   (d) The authority of a governing board under this section does not
apply to the letting of an entire campus.
   (e) The use of any buildings, grounds, or space therein, together
with any personal property located thereon, let by the governing
board pursuant to this section shall be consistent with all
applicable zoning ordinances and regulations.
81379.  In addition to any other authority to lease real property,
the governing board of a community college district, by a two-thirds
vote of its members, may lease, for a term not exceeding three
months, district property having a residence thereon, which cannot be
developed for district purposes because of the unavailability of
funds.  The lease shall be upon such terms and conditions as the
parties thereto may agree and may be entered into without complying
with any provisions in this code except as provided in this section.
81380.  The governing board of a community college 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 such
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
inure to the district reflecting the fair market value of the
property, or its fair rental value, as the case may be.
   (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.
81381.  The governing board of a community college district may
lease property in an adjoining district for garage, warehouse, or
other utility purposes or may purchase property in an adjoining
district for such purposes and may dispose of such property in the
same manner as property within the boundary of the district is
purchased and disposed of.
   The power of eminent domain shall not be applicable and such
acquisitions by purchase shall be subject to the approval of the
governing board of the community college district in which the
property is located.
81382.  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.
81383.  Notwithstanding Section 81360, the sale by the governing
board of any community college district of any real property
belonging to the community college 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 community college district shall not be subject to
Part 49 (commencing with Section 81000) 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 for a qualified community college facility.
   (b) (1) In the case of the sale of community college district
property pursuant to this section, the community college 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 community college district
property pursuant to this section, the community college 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 community college
district pursuant to any transaction described in this section are
expended solely for capital outlay purposes relating to a qualified
community college facility, including the acquisition of real
property for intended use as a site for a qualified community college
facility and the design, planning, acquisition, construction,
reconstruction, and renovation of qualified community college
facilities.
   (d) For purposes of this section and Section 81384, the term
"qualified community college facility" means real and personal
property, improvements, and related facilities that are determined in
a resolution of the governing board of the community college
district to satisfy each of the following requirements:
   (1) The facilities will (A) assist the community college district
in reducing energy and resource consumption while creating a safer
and healthier learning environment and (B) operate as energy and
resource efficient buildings by taking cost-effective measures
similar to those described in the Green Building Action Plan
promulgated by the Governor for facilities owned, funded or leased by
the state.
   (2) The facilities are affordable for the community college
district as set forth in estimated annual summary budgets of the
community college district that include the estimated costs of
financing the facilities during the estimated duration of the
financing demonstrating that the reasonably anticipated expenditures
during each fiscal year shall not exceed the reasonably anticipated
revenues for that fiscal year.
81384.  When a community college district enters into a sale or
lease of community college district property pursuant to Section
81383, the community college district shall, as a part of the sale
contract or lease, authorize the chancellor and Controller to
withhold from its annual apportionment the amount of funds necessary
to satisfy its annual payment obligation under the sale contract or
lease. The agreement shall include authorization to withhold this
amount and specify the amount to be withheld. The authorization shall
have precedence over other expenditure obligations of the community
college district. The chancellor, directly or through his or her
agent, shall certify the amounts, by district, to the Controller. The
Controller shall withhold the amount so reported for each community
college district and shall, acting on behalf of each community
college district, transfer the appropriate amount from Section B of
the State School Fund to or upon the order of the issuer of bonds (or
the lender on short-term loans) for the purpose of payment of the
debt service obligation for the bonds (or short-term loan) sold for
capital outlay purposes relating to a qualified community college
facility pursuant to Section 81383. Only the annual apportionments of
those community college districts that have authorized the
chancellor and the Controller to act pursuant to this section shall
be affected by this section, and the annual apportionments of all
other community college districts in the state shall remain
unchanged. For purposes of this section, short-term loans shall
include, but are not limited to, loans made by the Pooled Money
Investment Board pursuant to Section 16312 of the Government Code in
connection with the financing of a qualified community college
facility.