Page 12 - Surplus Checklist
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for three successive weeks before the meeting where the bids are opened in a newspaper of
                   general circulation within the county in which the District is located.  (Ed. Code § 17469.)

                   The governing board of a District that intends to sell surplus real property must also make
                   efforts to notify the former owner from whom the District acquired the property 60 days in
                   advance of the meeting at which the resolution will be considered.  (Ed. Code § 17470.)  Also,
                   special rules may apply to property that was acquired by eminent domain, including that the
                   former owner may have to be offered a right of first refusal in certain circumstances.  (Civ.
                   Proc. Code § 1245.245.)

                   Optional:  Although not required by law, the District may wish to obtain a preliminary title
                   report to determine if there are any exceptions in the report which would affect the bid
                   process.  Also, the preliminary title report should be made available to prospective bidders
                   who may require the report as part of their due diligence process before submitting a bid.

                   CEQA Compliance:  The District should give consideration to the application of the California
                   Environmental Quality Act (“CEQA”).  Generally, a sale or lease of property is exempt from
                   detailed CEQA review if it can be said with certainty that there is no possibility that the sale
                   or lease will have a significant environmental effect.  (Cal. Code Regs., tit. 14, § 15061(b)(3).)
                   The District may adopt a Notice of Exemption at the same time it adopts the resolution
                   described above.  (Id., § 15062.)

               VII. Competitive Bidding
                   At the public Board meeting where the bids are opened (in open session), the Board must do
                   the following (Ed. Code §§ 17472, 17473):

                      Open, examine, and declare all sealed proposals which have been received by the Board.

                      Call for oral bids.

                      Either accept the highest responsible bid (after deducting the commission, if any) which
                       conforms to all terms and conditions specified in the resolution of intention to sell or
                       lease the property, or reject all bids.

                      If an oral bid is the highest bid, it does not need to be accepted unless it exceeds the
                       written bids by at least 5%.

                      The bid may be accepted at an adjourned meeting of the Board within ten days of the bid
                       opening.  (Ed. Code § 17475.)

                   The District may seek a waiver of the competitive bidding requirements from the State Board
                   of Education.  (Ed. Code § 33050.)  In recent years, the State Board has been granting some
                   waivers of the competitive bidding requirement, particularly where a district intends to sell
                   property to a developer, including when the sale is contingent on the developer’s obtaining

               {SR540206}                                  Checklist for Sale or Lease of School District Surplus Property   11
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