SECTIONS 81550-81553 - California Statutes

EDUCATION CODE

SECTION 81550-81553

81550. A community college district may, as lessee, enter into a
lease or lease-purchase agreement for equipment or service systems
with any person, firm, corporation or public agency. As used in this
article "equipment" includes (1) schoolbuses, (2) other motor
vehicles, (3) test materials, educational films, and audiovisual
materials, and (4) all other items defined as equipment or service
systems in the Community College Budget and Accounting Manual.

81551. Before a lease or lease-purchase agreement may be entered
into, the lessee shall comply with all applicable provisions for bids
and contracts prescribed by Article 3 (commencing with Section
81641) of Chapter 3 and by Section 20651 of the Public Contract Code.
Each contract shall show the total price for an outright purchase of
any item and also its total cost for the entire specified term of
the contract.

81552. The term of any lease or lease-purchase agreement shall not
exceed the estimated useful life of the item but in no event shall
the term exceed 10 years. A lease, but not a lease-purchase
agreement, may be renewable at the option of the lessee and the
lessor, jointly, at the end of each term at a rate not more than 7
percent annually above the rate set pursuant to the existing
agreement. In no event shall the combined period of the original
lease and renewals or extensions exceed 10 years. Any contract for
the lease or lease-purchase of equipment or service systems which was
in existence prior to the effective date of this act shall remain in
effect and such terms are hereby ratified.

81553. As a lessor, a community college district governing board is
authorized to let, or let with option to purchase, any land,
buildings, or equipment it determines is not needed for school
purposes for a term extending to the end of the expected nonuse of
the land, buildings, or equipment and under any conditions it deems
reasonable. All such leases and leases with options to purchase to
nonpublic agencies or individuals shall comply with the provisions of
Sections 81450, 81452, 81453, and 81454.