48-2222. Leases of medical clinic and equipment; provisions; cancellation for failure to pay rent; release; auction; notice

A. A lease of a district-owned medical clinic and its equipment executed by the board of directors of the district, shall:

1. Extend for a term to be determined by the board, but not less than five nor more than ten years.

2. Be executed for the purpose of providing ambulatory medical services.

3. Provide for a rental upon terms and in an amount which will provide a fair return to the district on its investment and be sufficient to meet part or all of the payments of principal and interest of bonds issued under this article.

B. If a lessee of the medical clinic and its equipment fails to make the payment of rental immediately required by the lease, the board of directors of the district shall cancel the lease for such failure. If then unable to lease the medical clinic and its equipment to a lessee qualified under the provisions of this article at a rental sufficient to provide a fair return to the district and meet part or all of the payments of principal and interest on any bonds issued by the district, the board may, at public auction, offer to lease the medical clinic and its equipment to the highest responsible qualified bidder for such terms as the board prescribes, and shall lease the medical clinic and its equipment to the bidder who bids the highest rental for the prescribed period and who also agrees to provide the services required by this article. The board of directors may, at any time, implement a plan to provide ambulatory medical services on its own accord.

C. If the board of directors determines that an auction should be held, notice of the auction shall be given in a newspaper of general circulation within the district at least once each week for four weeks immediately preceding the auction.