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Overview of Authority to Contractin the CaliforniaStateUniversity (CSU)
- Purchase of Personal Property for the CSU
The Trustees have authority to purchase personal property (Educ. Code § 89036).
A.Purchases Other than Electronic Data Processing (EDP) and Telecommunications
1.Trustees may purchase such personal property WITHOUT the involvement or approval of the Department of General Services (Educ. Code § 89036(a)(2); Pub. Cont. Code § 10430(a)).
2.The purchase procedures contained in the State University Administrative Manual (SUAM) govern the procurement. These procedures "include competitive means for obtaining best value while complying with legislative intent regarding competitive bids or proposals, as it is expressed in Article 3 (commencing with Section 10300) ... of the Public Contract Code." (Educ. Code § 89036(a)(2))
3.Delegation of Procurement authority:
a.Trustees may delegate this authority (Educ. Code § 89035)
b.Trustees have delegated purchasing authority to the Chancellor (Standing Orders of the Board of Trustees (S.O.), Chapter II).
c.Chancellor has delegated procurement authority to the campuses (Executive Order (E.O.) No. 775) requiring that The California State University Policy Manual for Contracting and Procurement be followed.
B.EDP Purchases
1.Trustees may purchase EDP goods WITHOUT the supervision or approval of the Department of General Services (Educ. Code § 89036(a); Pub. Cont. Code § 12100.5).
2.Trustees have developed policies and procedures maintained in SUAM that further the legislative policies expressed in sections 12100 through 12113.5 (Pub. Cont. Code § 12100.5).
3.Delegation of procurement authority:
a.Trustees may delegate this authority (Educ. Code § 89035)
b.Trustees have delegated purchasing authority to the Chancellor (S.O., Chapter II).
c.Chancellor has delegated procurement authority to the campuses (E.O. No. 775) requiring that The California State University Policy Manual for Contracting and Procurement be followed.
C.Telecommunications Purchases
Trustees may comply with the same procurement procedures as apply to EDP purchases “except to the extent [they are] uniquely applicable to electronic data processing acquisitions” (Pub. Cont. Code § 12120). The Trustees assume the functions of the Department of Finance and the Department of General Services with regard to procurement of telecommunications goods (Pub. Cont. Code § 12120).
- Gift of Personal Property to the CSU
A.Trustees may accept on behalf of the State any gift or bequest (gift by will) of personal property (Educ. Code § 89720).
B.Delegation of Personal Property Gift Acceptance Authority:
1.Trustees may delegate this authority (Educ. Code § 89035).
2.Trustees have delegated authority to accept gifts of personal property to the Chancellor (S.O., Chapter II).
3.Chancellor has delegated authority to accept gifts of personal property to the Presidents. The Presidents may further delegate this authority to their designees (E.O. No. 676).
C.Due diligence is required prior to acceptance to ensure that the gift will aid in carrying out the primary functions of the campus and the California State University as specified in Education Code § 66010.4(b) (Educ. Code § 89720; E.O. No. 676).
- Sale or Exchange of Personal Property Belonging to the CSU
A.Trustees may sell or exchange property (Educ. Code § 89048(d); see also § 89036). This authority may be exercised WITHOUT authorization from the Department of General Services (compare Gov’t Code § 14674 with Educ. Code § 89048).
B.The Sale or Exchange:
1.May be made only when it is in the best interests of the CSU (Educ. Code § 89048(d))
2.Must be for “consideration based on fair market values” (Educ. Code § 89048(d))
C.Delegation of Authority:
1.Trustees may delegate this authority (Educ. Code § 89035).
2.Trustees have delegated authority to the Chancellor (S.O., Chapter II).
3.Chancellor has delegated authority to the campuses (E.O. No. 409).
- Care, Restitution, Sale, or Destruction of Unclaimed, Lost, or Abandoned Property in Possession of the CSU
A.Trustees may provide for care, restitution, sale, or destruction of unclaimed, lost, or abandoned property in possession of the CSU. Any regulation must include:
1.Property must be held for at least 6 months;
2.Thereafter property may be sold at public auction to the highest bidder;
3.Notice of auction must be given in a newspaper of general circulation at least 5 days prior to auction.
Trustees may dispose of any such property upon which no bid is made at the auction (Civ. Code § 2080.9).
B.Delegation of Authority
1.Trustees may provide by resolution or regulation, thus, may delegate (Civ. Code § 2080.9).
2.Trustees have delegated authority to the Chancellor (Tit. 5, Cal. Code Regs. §§ 42375 and 42376).
a.Delegation incorporates required provisions (above).
b.Delegation requires that money received from the sale be used for scholarships and loans to students enrolled at the campus.
1)Criteria for eligibility shall be established by the campus.
2)Pending disbursement, money may be invested by State Treasurer per Gov't Code § 16430 with interest earnings used for scholarships and loans.
3.Chancellor has delegated authority to the campus (E.O. No. 60).
- Purchase of Services for the CSU
The Trustees have authority to enter into agreements for the furnishing of services to the Trustees (Educ. Code § 89036)
A.Services Other than EDP Services, Telecommunication Services, and Services in Connection with a Construction Project
1.Trustees may enter into contracts for the purchase of services WITHOUT the supervision or approval of the Department of General Services (Educ. Code § 89036(a)(2); Pub. Cont. Code § 10430(a))
2.Delegation of Authority:
a.Trustees may delegate this authority (Educ. Code § 89035).
b.Trustees have delegated this authority to the Chancellor (S.O., Chapter II).
c.Chancellor has delegated this authority to the campuses (E.O. No. 775).
B.EDP Services
1.Trustees may purchase EDP services WITHOUT the supervision or approval of the Department of General Services. (Educ. Code § 89036(a); Pub. Cont. Code § 12100.5)
2.Trustees have developed policies and procedures maintained in SUAM that further the legislative policies expressed in sections 12100 through 12113. (Pub. Cont. Code § 12100.5)
3.Delegation of procurement authority:
a.Trustees may delegate this authority (Educ. Code § 89035).
b.Trustees have delegated this authority to the Chancellor. (S.O., Chapter II).
c.Chancellor has delegated this authority to the campuses (E.O. No. 775) requiring that The California State University Policy Manual for Contracting and Procurement be followed.
C.Telecommunications Services
Trustees must comply with the same procurement procedures as apply to EDP services “except to the extent [they are] uniquely applicable to information technology acquisitions” (Pub. Cont. Code § 12120). The Trustees assume the functions of the Department of Finance and the Department of General Services with regard to procurement of telecommunications services. (Pub. Cont. Code § 12120)
D.Services in Connection with a Construction Project (Professional Services)
1.Trustees may enter into service agreements in connection with a construction project. (Pub. Cont. Code §§ 10707, 10701)
2.Approval by the Department of General Services is NOT required (Pub. Cont. Code § 10295), since such contracts are entered under the CSU Contract Law. (Pub. Cont. Code § 10700 et seq.)
3.Delegation of Authority:
a.Trustees may delegate this authority (Pub. Cont. Code § 10701(c)).
b.Trustees have delegated this authority to the Chancellor. (S.O., Chapter II).
c.Chancellor has delegated this authority to the campuses as follows:
E.O. No. 793 (superseding E.O. No. 668): campus may execute service agreements in connection with a construction contract. Office of General Counsel review is required (PCC 10820).
- Furnishing of Services by the CSU
The Trustees may enter into contracts for the furnishing of services by the Trustees (Educ. Code § 89036). The California Constitution’s prohibition against making gifts of public funds requires that the Trustees receive correlative value for services performed (California Constitution, Article 16, Section 6).
A.Approval of the Department of General Services is NOTrequired. (Educ. Code § 89036(a)(2); Pub. Cont. Code § 10430(a))
B.Delegation of Authority:
1.Trustees may delegate this authority (Educ. Code § 89035).
2.Trustees have delegated this authority to the Chancellor (S.O., Chapter II).
3.Chancellor has delegated to the campuses authority to furnish services "when applicable provisions of law and policy are followed" (E.O. No. 750).
C.Money received for services must be deposited in the State Treasury and credited to the appropriation or fund charged for the cost of the work (Gov’t Code §11259).
- Miscellaneous Services
A.Motor Vehicle Inspections
1.The Trustees, without Department of General Services involvement, may inspect all motor vehicles owned by the Trustees or under their jurisdiction. Inspections must be provided for in the appropriate administrative manual of the CSU (Educ. Code § 89031.5).
2.This authority has been delegated to the Chancellor (S.O., Chapter II) and by the Chancellor to the campuses (E.O. No. 371)
3.SB 1757, Gov’t Code §13332.09 (c) & (f) (2) require CSU to submit purchase requests and contracts to DGS to determine the necessity. DGS may collect a fee for this service from CSU.
- Construction on CSU Campuses
A.The Trustees have authority to enter into construction contracts WITHOUTapproval of the Department of General Services (Pub. Cont. Code §§ 10295, 10700 et seq.).
B.The Trustees may delegate this authority (Pub. Cont. Code § 10701(c)) and have delegated it to the Chancellor (S.O., Chapter II).
C.A construction contract, the estimated cost of which does not exceed the value of a minor capital outlay project set pursuant to Pub. Cont. Code § 10108 (currently $400,000), need not follow all of the provisions of the CSU Contract Law (Pub. Cont. Code § 10705, first paragraph) but must be competitively bid if over $5,000 (Pub. Cont. Code § 10705, second paragraph). Authority to enter into construction contracts when the estimated project cost does not exceed $400,000 has been delegated to the campus WITHOUT the need to obtain Office of General Counsel approval (E.O. No. 793).
D.A construction contract, the estimated cost of which exceeds $400,000, is subject to all of the provisions of the CSU Contract Law (Pub. Cont. Code § 10705). Authority to directly manage these contracts has been delegated to the campuses (E.O. No. 672). This authority includes the authority to enter into the agreement. The contract, however, is not effective until it is reviewed and signed off by the Office of General Counsel (Pub. Cont. Code § 10820; Executive Order No. 793).
E.SUAM § 9700 et seq. sets out procedures for the preparation and administration of campus-delegated public works contracts.
F.Competitive bidding resulting in an award to the lowest responsible bidder is not required for:
1.Design-build contracts (Pub. Cont. Code § 10708) and Construction Manager at Risk, where "a contractor [is] chosen by a competitive bidding process that employs selection criteria in addition to cost."
2.Energy efficiency projects (Pub. Cont. Code § 10709) where contracts are let "through competitive means."
3.Emergency contracts (Pub. Cont. Code §§ 10722, 1102) where contracts may be awarded based "upon informal bids." All emergency contracts shall be reported to the DOF annually
- Sale or Exchange of Real Property Belonging to the CSU (Trustees as Seller)
A.The authority to sell often includes restrictions concerning the conditions under which the sale may occur and directions concerning where the proceeds of the sale may be deposited and how they may be spent.
B.Rule: the Director of General Services may execute grants to real property when the sale or exchange is authorized by law, usually in a special codified or uncodified statute, if no other state agency is specifically authorized (Gov’t Code § 14664; State Administrative Manual, Sections 1380, 1382; see also Gov’t Code § 11005.2).
C.Examples:
1.Sales authorized by law:
a.Codified statutes:
Education Code § 90420 (Ratcliffe Stadium)
Education Code § 90440 (San FranciscoDowntownCenter)
b.Uncodified statutes:
Stats. 1976, Ch. 1391 (Corporate Yard at San José)
2.Exchanges authorized by law:
Stats. 1971, Ch. 845, repealed in Stats. 1975, Ch. 1185
Stats. 2001, Ch. 402 (CSU Channel Islands: lemon grove for entry property)
Stats. 2001, Ch. 726 (CSUN: Zelzah Court for PrairieStreetSchool site)
D.Exceptions:
In the following instances, the Board of Trustees rather than the Director of General Services has been authorized to sell or exchange real property.
1.The Trustees may sell or exchange real property received by gift (Educ. Code § 89720). The sale or exchange must comply with Education Code §§ 89720 and 89720.5. This authority has been delegated by the Trustees to the Chancellor in Standing Orders, Chapter II. Any sale or exchange of gifted real property must be reported annually by January 5 of each year to the California Postsecondary Education Commission, the Joint Legislative Budget Committee, and the Department of Finance (Educ. Code § 89720).
2.The Trustees may sell or exchange real property acquired from revenue generated by the CSU parking and housing programs to a recognized CSU auxiliary organization subject to the conditions stated in Education Code § 89048(f). This authority has been delegated by the Trustees to the Chancellor in Standing Orders, Chapter II.
3.Cal Poly land may be sold or exchanged by Trustees with the consent of the Director of Finance (Educ. Code § 90406). Trustees may delegate this authority to the Chancellor by special resolution (for example, see Main Minutes, pp. 4386 and 4387).
4.CSU, MontereyBay housing improvements to land may be sold by Trustees (Educ. Code § 89010). This authority has been delegated by the Trustees to the Chancellor, the Senior Vice Chancellor for Business and Finance, and their designees (RFIN 01-98-01, Minutes of 1/28/98 Meeting of the BOT, pp. 6480-6481).
5.The Trustees may sell interests in real property included within land comprising Camarillo State Hospital that are not needed for campus purposes (Educ. Code § 89009(c)).
E.Surplus lands transferred to the Department of General Services may be disposed by the Department of General Services (Gov’t Code § 11011; State Administrative Manual §§ 1381-1381.6).
F.Contracts for sale of real property by CSU must include language regarding possibility of reversion to state if property is later found to contain a Native American burial ground and a statute is enacted requiring reversion (Educ. Code § 89048.5).
G.Any sale or exchange of real property will require that the CSU update, by July 1 of each year, the deletion or change to its real property holdings in the statewide inventory of real property maintained by the Department of General Services (Gov't Code § 11011.15(b)).
- Purchase of Real Property for the CSU (Trustees as Buyer)
A.With the consent of the Trustees, the Public Works Board selects and acquires interests in real property (Gov’t Code § 15853). Acquisitions may be by agreement or by condemnation (Gov’t Code § 15854).
B.Every contract for the acquisition of an interest in real property must be approved by the Department of General Services (Gov’t Code § 11005).
C.Property for state university sites within two air miles of an airport boundary may not be acquired until the requirements of Government Code § 15854.5 have been satisfied.
D.Administrative guidelines are contained in State Administrative Manual, §§ 1352 and 1353 et seq.
E.Acceptance of the real property by the State is evidenced by execution of a Certificate of Acceptance in the form required by Government Code Section 27281.
1.The Public Works Board, for purchases it makes, will fill it out and execute it.
2.The Chancellor may accept interests in real property on behalf of the Board of Trustees (S.O., Chapter II).
3.The Certificate of Acceptance and the Grant Deed are recorded.
F.The Chancellor may accept interests in real property on behalf of the Board of Trustees (S.O., Chapter II).
G.Exceptions from Public Works Board and Department of General Services action:
1.Trustees may purchase interests in real property from moneys received as gifts including moneys received from the sale of gifted real property. Any restrictions placed on the gifts must be honored (Educ. Code § 89720). (Should the Trustees desire to improve real property from gift proceeds, approval by the Director of Finance of the expenditure of the proceeds is required (Educ. Code § 89724(b)).)
2.Trustees may purchase real property with revenues generated by CSU parking and housing programs. Reporting and relocation assistance requirements apply (Educ. Code § 89048(g)).
3.Trustees with the consent of the Director of Finance may purchase real property for use by Cal Poly from proceeds of the sale of Cal Poly property (Educ. Code § 90406).
4.For each of the exceptions, the Chancellor may act on behalf of the Board of Trustees (S.O., Chapter II).
H.Any purchase of real property will require that the CSU update, by July 1 of each year, the addition to its real property holdings in the statewide inventory of real property maintained by the Department of General Services (Gov't Code § 11011.15(b)).
- Gift of Real Property to the CSU
Although authority to accept gifts of real property is stated in the permissive "may," it is clear that a gift of real property must (shall) be accepted before it may belong to the CSU. Acceptance is a requirement to CSU ownership to ensure that the gift will be of benefit to the CSU.
A.Trustees may accept on behalf of the state any gift or devise (a gift by will) of real property (Educ. Code § 89720).
B.Delegation of Real Property Gift Acceptance Authority:
1.Trustees may delegate this authority (Educ. Code § 89035).
2.Trustees have delegated authority to accept real property gifts to the Chancellor (S.O., Chapter II).
3.Chancellor has delegated to the Presidents authority to accept gifts. The Presidents may further delegate this authority to their designees (E.O. No. 676).
4.Acceptance may occur only after due diligence has been performed to ensure that the gift will aid in carrying out the primary functions of the campus and the CSU as specified in Education Code § 66010.4(b) (Educ. Code § 89720 and E.O. No. 676).
C.Any gift of real property will require that the CSU update, by July 1 of each year, the addition to its real property holdings in the statewide inventory of real property maintained by the Department of General Services (Gov't Code § 11011.15(b)).
- Lease of Real Property Belonging to the CSU (Trustees as Lessor)
A.Trustees may lease CSU property (Educ. Code §§ 89046, 89036).
B.Delegation of Leasing Authority:
1.Trustees may delegate this authority (Educ. Code § 89035).
2.Trustees have delegated authority to execute leases to the Chancellor (S.O., Chapter II).
3.Chancellor has generally delegated this authority to the campuses with four exceptions (e.g., leases of 20 or more years) requiring approval in the Office of the Chancellor (E.O. No. 669).
- Lease of Real Property for the CSU (Trustees as Lessee)
A.Trustees may enter into agreements for the furnishing of facilities for the Trustees (Educ. Code § 89036).
B.Trustees may enter leases (as lessee) WITHOUTthe review or approval of any other state agency (Educ. Code § 89048(e)).