CREIGHTON ELEMENTARY SCHOOL DISTRICT NO. 14

Revenues from School-Owned Real Estate

Purpose:

To outline the proper management of revenues generated from the rental, lease, or sale of school-owned real estate in accordance with Arizona law.

Rental or Lease of School-Owned Real Estate:

1. Revenue Collection:
   • All revenues collected from the rental or lease of school-owned real estate shall be deposited into the Civic Center fund.
2. Usage of Funds:
   • Monies in the Civic Center fund shall be used for the purposes authorized under state statutes and school district policies.

Sale of School-Owned Real Estate:

1. Revenue from Sales:
   • Revenues from the sale of school-owned real estate shall be deposited as per the allowable uses under state law.
2. Compliance with Statutes:
   • The sale and management of proceeds shall comply with the guidelines established by the Arizona Revised Statutes, ensuring proper allocation and use of these funds to benefit the district's financial and educational goals.

Legal References:

This policy adheres to the following Arizona Revised Statutes (A.R.S.):

• A.R.S. 15-342 – Powers and duties of school district governing boards.
• A.R.S. 15-1102 – Civic center school fund.
• A.R.S. 15-1105 – Leasing school property.
• A.R.S. 15-1106 – Sale of school property.

School Properties Disposition

Purpose:

To establish procedures for the sale, lease, or disposal of school property, ensuring compliance with Arizona law and Board policy.

Sale or Lease of Property:

1. Eligibility for Sale or Lease:
   • The Board may sell or lease school property to the state, county, city, another school district, or a tribal government agency if it is required for public purposes, provided that:
     • The sale or lease does not affect the normal operation of any school within the District.
     • The District complies with Policy FCB (Retirement of Facilities) and A.R.S. 15-189 (Charter Schools).

Disposition of Surplus Materials:

1. Determining Fair Market Value:
   • The District shall assess the fair market value of any excess or surplus property.
   • Disposal shall be through competitive sealed bids, public auction, trade-in, or state surplus property per A.R.S. 15-342.
2. Alternative Disposal Methods:
   • If competitive methods are impractical, alternative methods such as appraisal or barter may be used, provided the District determines the process is advantageous.
   • Payment for surplus property must be made via certified checks, cashier’s checks, Postal Money Orders, or cash unless otherwise approved by the District.

Disposition of Learning Materials and Equipment:

1. Nonprofit Donation:
   • The Board authorizes the Superintendent to establish procedures for donating surplus or outdated learning materials to nonprofit community organizations if the cost of sale equals or exceeds the estimated market value of the items.
2. Sale to Charter/Private Schools:
   • The District may sell used equipment to charter or private schools before pursuing other means of disposal.

Competitive Sealed Bidding:

1. Public Notice:
   • A notice of sale shall be available at least ten (10) days before the opening of bids.
   • Prospective bidders shall receive notices per A.A.C. R7-2-1023.
2. Bid Opening and Award:
   • Bids shall be opened publicly, and the award will go to the highest responsive and responsible bidder unless the District deems the bid disadvantageous, in which case it may resolicit bids or negotiate for a higher sale price.
3. Auctions:
   • Auctions must be advertised twice in a county newspaper, with at least seven (7) days between publications. All sale terms must be available to the public 24 hours prior to the auction.

Trade-In for Credit:

• Disposal via trade-in for vendor credit must be approved if the trade-in value exceeds the expected sale value of the property.

Restrictions on Employee/Board Member Purchases:

• Employees and Board members involved in the purchase, disposal, or maintenance of surplus material may not purchase or influence the purchase of such property.

State Surplus Property Manager:

• The District may enter an agreement with the State Surplus Property Manager for property disposal in accordance with A.R.S. 41-2601 and the Arizona Procurement Code.

Donation of Surplus Items:

• The Board may donate surplus learning materials, equipment, and furnishings to nonprofit organizations if the cost of sale equals or exceeds the market value.

Offer to Sell:

• The Board may offer outdated learning materials or equipment for sale at posted prices to currently enrolled students before offering them to the public.

Adopted: September 14, 2017

Legal References:

• A.R.S. 15-189 – Charter schools.
• A.R.S. 15-341 – General powers and duties of school district governing boards.
• A.R.S. 15-342 – Disposition of surplus property.