Procurement Training
Los Angeles Community Colleges
Presented by:
Business Services Division
Office of General Counsel
College Procurement Specialists
June/July 2008
1
Welcome / Introductions
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Presenters:
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Anne Diga, Associate Counsel
Jim Watson, Contracts & Purchasing Manager
Fabbee Bunag, Contracts Analyst
College Procurement Specialists
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Michele Burrus
Ramona Divinagracia
Kim Hoffmann
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Audience self-introductions
 Housekeeping items
2
Agenda
Background and purpose
 Structure of new policies and
procedures
 Statutes and other authorities
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3
Agenda (Cont’d)
Presentation of New Procedures
 04-00 Procurement Overview and Policy
 04-01 Procurement Responsibilities and
Organization
 04-02 Methods and Types of Procurement
Transactions
 04-03 Micro-Purchases
 04-04 Small Purchases
 04-05 Medium Purchases
 04-06 Large Purchases
4
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04-07 Short Term Agreements/Contracts for
Services04-08 Procurement of Special and
Professional Services
04-09 Bid Protests and Appeals
04-10 Cooperative Purchases
04-11 Lease of Equipment
04-12 License of Software and other
Intellectual Property
04-13 Non-Competitive Procurement
04-14 Acceptance of Loaned and Donated
Personal Property
5
Agenda (Cont’d)
04-15 Authorization to Pay
 04-16 Purchasing Card
 04-17 Receiving and Acceptance of
Procured Items
 04-18 Invoicing and Payment
 04-19 Suppliers/Vendors
 04-20 Procurement Considerations for
Specially Funded Programs
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6
Agenda (Cont’d)
Miscellaneous Procurement Topics
• Template agreements
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Key contractual terms
Property Agreements for Use of Facilities
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Civic Center Permits/Permits for Use
7
Background and Purpose
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Procurement: “The act of
obtaining, attainment,
acquisition….”
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Contract: “An agreement
between 2 or more persons
which creates an obligation to
do or not do a particular
thing.”
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Procurement contract:
“A government contract with
a…supplier of goods under
the terms of which a sale is
made to the government.”
8
Background and Purpose (Cont’d.)
History of Decentralization
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2000: Board delegates contracting authority (Board Rule 7100 et seq)
2000: Chancellor delegates authority to College Presidents (Board Rule
Admin Reg B-19)
2000: Training by BSD, OGC
2001: Purchasing regions created; CPSs hired
2001-02: Presidents delegate to VPs of Administrative Services
2001: Launch of purchasing card
2002: Implementation of SAP Financial and Purchasing System
2005: Launch of Business Policies and Procedures Project
2008: Adoption of New Procurement Policies and Procedures
http://www.laccd.edu/
9
Background and Purpose (Cont’d.)
Purpose of Training:
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Unveil new district-wide written
procurement policy and procedures
In-service new administrators and
staff
Refresher to continuing
administrators and staff
Not for bond and construction related
purchases
Not focused on SAP training
10
21 New Procurement Policies and
Procedures
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Organized to Follow the Procurement
Lifecycle of a Purchase with additional
procurement related issues
Purchase- Receiving- Payment
11
Procurement Procedures
Development Team
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Fabbee Bunag, DO Contracts Analyst
Michele Burrus, College Procurement Specialist
Anne Diga, Associate General Counsel
Ramona Divinagracia, College Procurement Specialist
Jeanette Gordon, Chief Financial Officer
Allan Hansen, Director of College Facilities – West Los Angeles
Mark Henderson, Manager of Information Systems – Pierce College
Kim Hoffmann, College Procurement Specialist
Bruce Hurt, Receiving Supervisor - Valley
Kelly Ryan, Accounting Assistant – City College
Kenneth Takeda, Vice President of Administrative Services - Pierce
Ann Tomlinson, Vice President of Administrative Services – Harbor College
Jim Watson, DO Contracts Manager
Tania Yanes, Facilities Administrative Assistant – Trade Tech College
Mayra Zelaya, Purchasing Supervisor, City College
12
Policy Objectives
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04-00 Procurement Overview and Policy
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Comply with laws, board rules and regulations
governing procurement for LACCD
Encourage competition in order to obtain best
pricing and terms, superior products and customer
services
Provide all suppliers equal opportunity to participate
– No favoritism, fraud, abuse, corruption
Efficiency of resources
Timely delivery of products and services
13
Common Definitions (04-00)
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Bid
Bid Threshold
Board approval/ratification
Invitation for Bids (IFB) (RFB)
Proposal
Request for Proposal (RFP)
Request for Qualifications
Solicitation of Quotes
And others…..
14
Types of Procurement
- “Solicitation of Quotes” (Campus or CPS)
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Not formal bidding, best business practice
Obtained prior to purchase
Informal pricing quotes not required but best business practice for purchases less than
2500; 2500 or greater a minimum of three quotes required; 5,000 up to bid threshold a
minimum of 3 written quotes
- “Request for Qualifications“ (RFQ) (District)
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- “Request for Proposals” (RFP) (District)
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Not formal bidding, best business practice
Respondents ranked by qualifications
Price is negotiated with highest ranked respondent
Not formal bidding, best business practice
Respondents submit qualifications, technical proposal and price
Award based on most advantageous offer, all factors considered, not price alone
- “Invitation for Bids” (IFB) or “Request for Bids” (RFB) (District)
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Formal advertisement in newspaper of general circulation for specified period of time
Bids submitted sealed
Public bid opening
Award to lowest responsible and responsive bidder
15
Statutes and Other Authorities
State (29 California Codes)
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Public Contract Code, Education Code,
Government Code, others
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LACCD
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Board Rules, Administrative Regulations
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Welcome to California –www.ca.gov
http://www.laccd.edu/about%5Fus/
Miscellaneous external:
Grant application and guidelines
 Case law
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16
Statutes and Other Authorities
(Cont’d)
Admin.
Regulations
Board Rules
California Codes – Education Code,
Public Contract Code,
Government Code, Labor Code, et.,
(Case Law)
17
Statutes and Authorities (Cont’d)
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Public Contract Code Sections
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100, 101, 102 - Objectives, efficiency, encourage competition
3400 – Specific brand or trade name “equal or better”
20651-20662 Community Colleges
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22000 et seq, (CUPCAA)
Education Code Sections
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20651 – Formal bid threshold
20654 – Emergency defined
20657 – No Bid Splitting
81644 – Duration of Contracts
81655 – Delegation of Authority to Contract, Personal Liability for
malfeasance
81656 – Delegation of Authority to Purchase, Personal Liability for
malfeasance
88003.1 – Personal Services Contracts – No contracting out of classified
work with exceptions
Government Code Sections
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53060 – Professional/Specialized Services
18
Statutes and Other Authorities
(Cont’d)
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Board Rules - Chapter VII, Article I –
Contracting
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Board Rules 7100 – 7101.15
7100 – Board Responsibility for Contracts
7100.10 Delegation of Authority
7100.11 Emergency Contracts
7100.15 Ratification of Transactions
7100.16 Rejection of Bids
7100.17 Advertisement of bids
7101 – 7101.15 Administration of Contracts
7102 – 7102.14 Rules for Purchasing
7103 – 7103.17 Facilities Related Contracts for Public Projects
http://www.laccd.edu/board_rules/documents/Chapter%20VII/Ch.
%20VII%20-%20Article%20I.doc
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19
Statutes and Other Authorities
(Cont’d.)
Administrative Regulations
 B-19 – Delegation of Authority to College
Presidents
College Presidents, Deputy Chancellor,
Executive Director of Facilities Planning and
Development, Director of Business Services
 College Presidents can delegate to VP’s of
Administrative Services
 LACCD - About Us - Administrative
Regulations
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20
Exercise #1 Delegation of Authority
A) Dee, Director of College Facilities, at Sunrise
Community College would like to repair the
baler/trash compactor on campus. She
receives a quote in the amount of $7,000 from
Bob’s Baler Repair. She asks Fran Facilities
Aide to enter and print a Facilities Order in
SAP. Dee signs the FOF and sends it off to
Bob. Is Dee in compliance with B-19? Are
there other issues of concern?
21
Exercise #2 Delegation of Authority
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Sally SFP Director at West Pierce Community
College would like to host the end of the year
program banquet at a nearby hotel next to the
college. She contacts the Airport Hilton to
determine whether a banquet room is
available for the event. The Hilton event
planner confirms that the event date is
available. Sally is sent a reservation
confirmation agreement which she signs and
returns to the Hilton.
22
04-01 Procurement Responsibilities
and Organization
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A. College Purchasing Office
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Handles purchases up to <$5,000 at a
centralized location
Southwest and Harbor fully decentralized
 Trade Tech partially decentralized
 College Plant Facilities Office handle facilities
related procurement up to <$125,000
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23
04-01 Procurement Responsibilities
and Organization (Cont’d)
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Region-based College Procurement
Specialists
City*, Southwest, Harbor—Michele Burrus
 East*, West, Trade Tech —Kim Hoffmann
 Valley*, Mission, Pierce—Ramona
Divinagracia
*College where CPS has office
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24
04-01 Procurement Responsibilities
and Organization (Cont’d)
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District Office – Contracts and Purchasing Section
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Jim Watson, Contracts and Purchasing Manager
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Non-construction related property leases
Personal and Professional Services
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Fabbee Bunag, Contracts Analyst
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Leases of equipment
Software licenses
Personal and Professional Services
Curtis Paltza, Contracts Analyst
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Personal and Professional Services
Non-construction related property leases
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District and non-district property
Vending machines, pay phones
Marilyn Huff, Purchasing Agent
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Handles all Formal Bids for purchases and purchases at the District
Office
Updates SAP Vendor list
25
Current Structure/Policies (cont.)
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Purchasing
Responsibility by
Threshold:
 College: Micro and
Small purchases ($04,999)
 Region: Medium
purchases ($5,000statutory threshold-$72,400)
 District Office: Large
Purchases + not
specifically delegated
District:
$72,400+
and not
specifically
delegated
Region: $5,000-$72,400
College: $0-4,999
26
04-02 Methods and Types of
Procurement Transactions
A. Methods – Competitive vs. Noncompetitive, miscellaneous
 B. Types of Transactions
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Micro purchases $< or = $2,500
Small purchases $2,501 up to $4,999
Medium purchases $5,000 up to formal bid
threshold (currently, $72,400)
Large purchases $72,400 and greater
Special/Professional Services
Rentals, Leases and Licenses of
Equipment/Software
27
04-03 Micro Purchases
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Entered by college in SAP database
<$2,500 purchases of supplies, equipment and
services
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SFP purchases may have lower $ threshold required by the
grant
Recommended best business practice to obtain
competitive pricing, but not required to solicit quotes.
Approval required by Vice President Administrative
Services in SAP
Purchase Order (PO) signed by College President or
Vice President of Administrative Services
28
04-04 Small Purchases
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Entered by college in SAP database
$2501 up to $5,000 purchases of supplies, equipment
and services
Approval of Vice President of Administrative Services;
PO signed by College President or Vice President of
Administrative Services
Must solicit at least a minimum of three (3) quotes
*Record of solicitation kept in original transaction
file
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Internet research
Catalog
Vendor contact
 E-mail, telephone, fax
29
04-05 Medium Purchases
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$5,000 up to bid threshold ($72,400)
For all procurements at or over $25,000 the EPLS needs to be
searched with a screen print saved with the original documents
whether SFP or general funds.
A minimum of (3) three written quotes required and must be
submitted with PR/RFC
Entered by college and processed by College Procurement
Specialist (CPS) as Purchase Requisition (PR) (goods) or
Request For Contract (RFC) (services)
PR requires conversion by college into PO
RFC requires conversion by CPS into Contract Order (CO)
Approved by Vice President and CPS
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Decentralized colleges may include approval by Department Head,
Dean, Director or other VP’s
30
Exercise #3 Types of Purchases
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South Bay Community College would like to
purchase athletic football equipment in the
amount of $50,000. Abby Athletic Director
supplied a purchase request with one quote
from Acme Sporting Goods. Patty Purchasing
Aide should do the following:
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A) Process request
B) Contact Athletic Director for a minimum of two
additional quotes
C) Check Acme Sporting Goods catalog to verify
price quote submitted by Abby.
31
04-06 Large Purchases
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$72,400 or greater
Purchase contract cannot exceed 3 years
Handled solely by the District Contracts and
Purchasing Section
PO or Contract approved and signed by DO
Purchasing Agent or Contracts Manager
Public Contract section 20651 requires formal
sealed bids using process identified in
Education Code section 81641
Formal bid process
32
04-06 Large Purchases (Cont’d)
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Formal Bid Process (IFB)
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Advertisement for two weeks
Bid Package
Pre-bid conference (optional/mandatory)
Sealed bid submission
Bid Opening
Bid Evaluation
Award to responsive/responsible lowest bidder
Agenda item for Award of Procurement
33
10 Minute Break
34
04-07 Short Term Agreements and
Contracts for Services
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Services defined
 Provision of labor as distinguished from goods.
 Personal Services – Routine labor for which NO special
training, education, certification or license is required.
 Professional/Specialized Services  Government Code section 53060
 Legal, Administrative, Auditing, Payroll Processing, Design
and Engineering, Medical and other specialized services
requiring high level of independent judgment, expertise
and discretion.
Cannot contract out classified work – Education Code
Section 88003.1
35
Personal Services – Contracting Out
of Classified Work
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Education Code Section 88003.1
General prohibition to contract out classified
work, except when:
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Clear demonstration of cost savings
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Code provides specific formula in making cost savings
analysis
Services not otherwise available
Highly specialized and cannot be performed by
college or district employees
Services pursuant to a contract or lease for
purchase of real property
Emergency
36
04-07 Short Term Agreements and
Contracts for Services (Cont’d)
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Short Term Agreements (STA)
 Requires three written quotes
 Services one year or less
 STA can only be amended through RFC and handled by
CPS
 STA cannot be amended for term beyond a year or
amount to exceed $5,000.
 Valued at $5,000 or less including tax and delivery charges
 STA must be Board ratified within (60) calendar days of
entering into the transaction. Send copy of STA to CPS for
submission to Board for ratification.
 Agreements must be approved and signed by College
President or Vice President of Administrative Services
37
04-07 Short Term Agreements and
Contracts for Services (Cont’d)
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Contracts for Services
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Personal Services for multiple years up to $72,400.
Requires three written quotes
Contract initiated by RFC and entered into SAP by
the College
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If renewal or amendment, require reference to existing
contract number.
Contracts below $72,400 are ratified by Board.
$72,400 or greater require prior authorization.
Contract cannot exceed 5 years
Limit Order Agreements
38
04-08 Procurement of Specialized or
Professional Services
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Government Code section 53060 defines special and
professional services
Examples of special services include financial,
auditing, legal, architectural/engineering, insurance
brokerage, payroll issuance and preparation, and
other administrative matters where service provider
must be specially trained.
Special services/professional services are exempt
from formal bidding
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Recommended best business practice is to solicit Request for
Proposals (RFP) or Request for Qualifications (RFQ)
Requires Professional Services Agreement to be signed by
both service provider and District/College. Signature obtained
from service provider first.
39
Exercise #4 – Contracting Out for
Services
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West Valley Community College is planning
graduation ceremonies. The College
customarily provides sign language
interpreters for large public events and
ceremonies such as this one. Victoria Vice
President issues a short term agreement to
Selective Sign Works for three interpreters to
provide services throughout the graduation at
a total cost of $2,000. Is this appropriate?
40
Exercise #4 – Short Term Agreements
and Contracts for Services
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South Harbor CCD has just implemented a
new payroll processing system. Unfortunately,
the pay stubs generated from the system
reverse print the payroll information on the
stub making the information unrecognizable to
employees. South Harbor would like to hire a
system software programmer who is able to
troubleshoot the problem and fix the
misprinted pay stubs. What solicitation
process does South Harbor need to undertake
in order to contract for these services?
41
O4-09 Bid Protests and Appeals
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Affords bidders/proposers the ability to be
heard if they believe fair treatment in the
procurement process has not been provided to
them.
 Purchases below statutory threshold:
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Written protest filed with Vice President of
Administrative Services within 2 business days of
award notification
Purchases at or above statutory threshold:
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Written protest filed with Director of Business
Services within 5 business days of award
notification
42
04-10 Cooperative Purchases
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Public Contract Code section 20652 – piggyback of
personal property (not services)
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Board must make finding of best interest to piggyback if
purchase is over statutory threshold
County of Los Angeles – copiers, janitorial supplies
Public Contract Code sections 20653 and 10290
provides the ability to piggyback personal property and
services under contracts specifically awarded by the
Department of General Services
Western States Contracting Alliance – HP, Dell, Apple and
Gateway computers; Grainger for maintenance supplies and
equipment
 California Multiple Award Schedule – Tractors, forklifts,
service vehicles
-Hard copy of valid contract must be provided by initiators
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43
04-11 Lease of Equipment
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Handled by the DO Contracts and Purchasing
Section ONLY
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Requestor must provide original lease documents
provided by finance company and equipment
proposal from supplier
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Lease must be made in accordance with
Education Code section 81550
 Fixed lease term greater than one (1) year up
to ten (10) years
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One (1) year or less requires a rental agreement
which is handled by the College
44
04-12 License of Software and other
Intellectual Property
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A license provides a non-exclusive right to use
an asset.
 A license of software is an agreement.
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Beware of on-line downloadable software
Terms and Conditions of on-line software
agreement should be reviewed and approved by
the Vice President of Administrative Services prior
to installation.
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Requires evaluation and screening by local Information
Technology department prior to download and acceptance
of use.
45
04-13 Non-Competitive Procurement
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A. Educational Materials – Education Code section
81651
B. Food/Cafeteria Supplies – Public Contract Code
section 20660
C. Emergency Contract – Public Contract Code
section 20654
D. Cooperative Purchases – Public Contract Code
section 20652
E. Single Source – No statutory authority for sole
source. Refers to a market condition in which only
one supplier or service provider exists. Therefore, a
competitive process is impossible or impracticable.
Refer to sole source evaluation procedure.
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Specification of brand name/trade name “equal or better”
- Public Contract Code section 3400
46
04-14 Acceptance of Loaned or
Donated Personal Property
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Education Code sections 71046 and 72205
 Donor responsible for specifying value for their
tax purposes
 Donations must be evaluated prior to
acceptance or delivery to campus
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College Information Technology department should
screen IT related equipment
College Facilities Department should screen all
equipment requiring electrical or utilities connection
Donations cannot be for illegal purposes
47
04-14 Acceptance of Loaned or
Donated Personal Property (Cont’d)
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Donation Form or Donation Agreement must be
approved by the College President and Vice
President of Administrative Services prior to receipt
of property.
Equipment donations must be sent to Receiving
Department for appropriate asset tagging.
Board must ratify within 60 days of acceptance of
donation items.
Donations of cash or cash equivalents are handled
by the Chief Financial Officer.
48
Exercise # 5 - Donations

Peter Painting Supervisor at Valley Tech
College accepts a donation of 100
gallons of super gloss paint from LOL
Paint Company. Upon delivery of the
paint cans to the College, Peter inspects
the label on the paint cans and
determines that the paint is lead-based.
How should Peter have handled this
donation?
49
One hour - Lunch Break
50
04-15 Authorization to Pay
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Used in highly limited circumstances for purchase of items not
competitively procured such as library and instructional
resources.
Library books, pamphlets, motion picture film, instructional
software, testing and audio visual materials.
Requires ratification by Board of Trustees within 60 calendar days
of commencement.
Information is gathered by Accounts Payable and calendared for
board ratification by Business Services
Not to be confused with Authorize Payments and Confirmation
Purchase Order
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Authorize Payments handled only by CPS and Business Services
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Mechanism to obtain board authorization for reimbursement
Confirmation Purchase Order not allowed.
51
04-16 Purchasing Card
Currently under construction by special
task force appointed by Deputy
Chancellor.
 Addresses issues identified in Cal Card
Audit.
 New and revised procedures are being
recommended for Cal Card uses.
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52
04-17 Receiving and Acceptance of
Procured Items
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The receiving process begins when the vendor delivers procured
or leased items to the College. Once an item is received by the
College, it begins the obligation, liability and accountability for the
item.
Specialty items such as information technology equipment or
building systems component should be inspected by IT staff or
Facilities staff prior to acceptance.
Receiving Department must do the following:
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Inspect goods for quantity and condition
Match the packing slip to the purchase document
Report any discrepancies in item delivery
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Wrong shipment of goods
Partial delivery/Incorrect quantity
Defective conditions
53
04-17 Receiving and Acceptance of
Procured Items (Cont’d)
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Receiving is responsible for completing receipt
of goods via MIGO transaction in the SAP
database system, tagging assets and
communicating with requestors that items
have been delivered to College.
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Specially funded assets require additional color
coded inventory tags. (See Asset Management
Procedures for more specific details.)
When item is picked up, requestor should
sign-off acceptance of purchased item.
54
04-18 Invoicing and Payment
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Final step in completing the three way match process
in the procurement lifecycle.
Purchase ->Receiving->Payment
 Invoice of Goods/Invoice for Services
-Invoices are sent to College directly for review, approval and
entry. Invoices are matched directly to signed purchasing or
contract documents. Determine whether discounts can be
applied to payments made within 30 days.
-Payments to vendor is typically the final opportunity to question
incorrect shipment, damaged, goods, price or other such
adjustments.
-All purchases and contracts must be approved by the Board
within 60 days of commencement.
-A copy of a fully signed contract must be received prior to
payment.
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55
Getting Vendors Paid
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Vendor entry
 http://www.laccd.edu/business_services/vendor_
docs/create_vendor_form.xls
Document entry
Release of transaction
Execution of contract
Deliverables
Receiving
Invoice
Warrant
Board reporting
56
04-19 Suppliers, Vendor Database
and Evaluation
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“Suppliers” also referred to as “vendors” are the outside businesses from
which the College/District purchases materials, supplies, equipment and
services it needs to operate and do business. ( No district employees
may engage in business with the College/District outside of their
employment contract.)

A. Sourcing – Process of identifying multiple suppliers promotes healthy
competition for the College/District’s business leading to lower prices,
higher quality, better after-sale service and improved value for its dollar.
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B. Vendor Database – Maintained by Procurement Vendor Maintenance

New vendors and corrections to existing vendor information must be
requested through the “Create Vendor Form”
 http://www.laccd.edu/business_services/vendor_docs/create_vendor_for
m.xls


Vendor Maintenance verifies whether vendor appears on the “Excluded Parties List
System” maintained by the federal government.
Vendor must have an existing record in SAP prior to purchase entry.
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04-20 Procurement Considerations for
Specially Funded Programs (SFP)




Procurement with SFP funds requires additional monitoring and
oversight to ensure purchases are made within grant and grantor
agency guidelines.
Difficult to establish a set of procedures encompassing every
nuance of the multitude of grant agreements in place.
A. Award of SFP Funds
 Prior to setting up an SFP budget for procurement, SFP
program director must receive a written award letter or offer
from the grantor agency.
B. Establish a Budget Cost Center
 Forward documents to District Budget Office. Work
Breakdown Structure (WBS) code assigned by the District
Accounting Office upon receipt of various documents
identified. DO Budget Office establishes matching fund center
to WBS.
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04-20 Procurement Considerations for
Specially Funded Programs (Cont’d)

C. Establish an SFP Agreement
Original approved and signed RFC
 RFC entered in SAP database
 Copy of the BTA with Master Data Form
 Original Award Letter
 Original Grant Agreement with Instructions
*For existing SFP Agreement, provide original SAP
contract number.
*All multi-campus grant agreements must be handled
by the District Office Contracts Section

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Template Agreements

Initial offering of
Terms and
Conditions must be
our template
agreement
 Contain Districtapproved language
 Contracts Manager
administers/updates
 Please do not
change
www.laccd.edu
Faculty & Staff
Intranet
(District Network Only)
Contract Forms
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Key Contractual Terms









Contractor responsibility
 Deliverables
 Timing
Indemnity provisions
Insurance
Warranty
Payment terms / schedule
Venue; choice of law
Maximum duration
Exclusivity
Non-Collusion Affidavit
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Key Contractual Terms (Cont’d)

Signature authority
 Acceptance of contractor agreements
 Reimbursables
 Rights of termination

Default

Non-Discrimination
 Audit rights
 Ownership/licensing of developed product
(intellectual property) – Rights in Data
62
Basic Insurance Considerations

Template language should not be modified
 Identifies types of insurances required depending on
services rendered and dollar threshold for coverage
 Identifies rating level of insurance as B++ minimum
and licensed to do business in California
 District identified as additional insured
 Risk Management must review insurance submitted
 Request to provide proof of District insurance and add
entity as additional named insured should be made
with Risk Management.
63
Exercise #6 – Contract Terms
Libby Librarian at Van de Kamp Community
College would like to lease three new copiers
for the library on campus. Libby receives a
confirmation proposal in the amount of
$27,000 from Copiers R Us. Libby signs the
confirmation proposal and sends it back to the
vendor. Copiers R Us ships the equipment to
the campus and forwards Libby the financing
and maintenance agreement for the copiers.
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Exercise #6 - Contract Terms
(Cont’d)

A. The following terms appear on the financing agreement with CNB Bank:
1. Cancellation – This Lease cannot be cancelled.
2. Choice of Law – Any legal claims legal proceedings arising out of this
Agreement shall be subject to the laws of the State of Minnesota.
3. Forum/Venue - Any legal claims or proceedings shall be brought in the State
of Minnesota.
4. Insurance – District/College shall provide requisite insurance to cover loss of
the equipment up to the limits deemed acceptable by CNB Bank.
5. Remedies – District/College sole remedy under the Agreement for breach of
the lease terms shall not exceed the annual payments under the lease.
6. Term – The term of the lease shall be for 15 years.
7. Indemnity – College must defend and indemnify Copies R Us for any claims,
losses or damages arising out of or related to College’s use of the copier under
the Contract.
8. Authorization Approval – The signatories on the contract are authorized to bind
the organization to the terms and conditions of the contract.
65
Property Use Agreements

Use of District’s property

Lease vs. license



Exclusive vs. Non-Exclusive Use
Civic Center Permits
Permits for Use / film permits
Leases up to 14 days – No bidding, separate or consecutive
days in annual year.
 Leases less than $25,000 AND less than 5 years – No bidding
 Joint occupancy leases – handled by Facilities Planning &
Development
 Other public agencies or private schools
 Leases of personal property
 Process summary
http://www.laccd.edu/board_rules/documents/Chapter%20VII/Ch
.%20VII%20-%20Article%20II.doc

66
Questions????
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THE END
Thank you for your time and attention.
Please pass your training surveys
to the front of room.
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