Authority to Negotiate and Execute Real Property Rental Agreements and Leases
(Delegation of Authority SCDA-BUS0010)
I. Delegation Summary
Delegated To: Vice Chancellor--Business and Administrative Services
Scope of Delegation: This delegation provides authority to
negotiate and execute (sign) real property rental agreements and leases on
behalf of The Regents of the University of California. Please see below for restrictions and
exceptions
Delegated By: Chancellor M.R.C. Greenwood
Effective Date: June 13, 2001
II. Detailed Delegation
Effective immediately, the Vice Chancellor--Business and Administrative Services is authorized to negotiate, and within the following parameters to approve and execute, contracts relating to rental of real property of the campus when such contracts:
1. pertain only to the use of facilities for academic, research, or public service programs of the University or for related administrative support activities of the University;
2. have: (i) an initial term that does not exceed 5 years, and (ii) a total term, including options, that does not exceed 10 years;
3. have: (i) a base annual rent (exclusive of operating expenses and all concessions to the University) that does not exceed $250,000 for the initial year, and (ii) annual rent increases for subsequent years that are limited to the greater of either (a) the actual annual percentage increase in the Consumer Price Index for All Urban Consumers (CPI-U all items), or (b) an average annual rate of increase over the lease term that does not exceed 10%; and are not constituted as a lease-purchase transaction or a lease transaction with a purchase option;
4. do not involve the assumption by the University of liability for conduct of persons other than University officers, agents, employees, students, invitees, and guests, except that this restriction does not apply if under the agreement the University assumes responsibility for liability resulting from the condition of leased property which the University is obliged to maintain; and
5. are written on a University Standard Lease Form without significant modification or on a form that has been approved by the General Counsel.
Real property rental agreements and leases that do not meet the conditions listed in A1. to A.5 must be submitted to the President, the President and the Chairman of the Board, or The Regents for approval and execution, in accordance with the Standing Orders of The Regents.
The authority provided by this delegation is broad and should be exercised with discretion. Therefore, redelegation should be limited to appropriate levels of authority. Any redelegation shall be in writing with a copy to the Assistant Vice President—Facilities Administration, the Special Assistant—Coordination & Review, and the General Counsel and Vice President for Legal Affairs.
Real Property Lease/Rental: A written agreement which creates a relationship of landlord and tenant and conveys to the tenant complete control over real property (land, building space, residence, trailer, etc.) for a specified time period.
III. “Supersedes” Notification
This delegation of authority supersedes campus delegation
no. SCDA-BUS0007, dated July 2,
1998, from the Chancellor to the Vice
Chancellor--Business and Administrative Services and the Director—Materiel
Management on this subject.
IV. Getting Help
The campus Business
Contracts Office can respond to questions about this delegation of authority.
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If you need help with ... |
Contact
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interpreting this delegation |
Business Contracts Office x9-4533 or Real Estate Specialist x9-4747 |
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V. Authority/References
Authority to make this delegation is documented as follows :
UCOP Delegation DA2116, Negotiation, Approval, and Execution of Campus-Related Real Property Rental Agreements, President to Chancellors, et al., April 5, 2000.
Bylaws and Standing Orders of the Regents of the University of California:
Bylaw No. 21.3, Duties of the Secretary
Standing Order No. 100.4, Duties of the President
University of California Lease Administration Manual
UCSC Policy BUS0001, Responsibility for Business Contracts
UCSC Procedure BUS0002, Administration of Business Contracts
UCOP Delegation DA1058, Execution of Agreements, President to
Chancellors, et al., December 30, 1991.
SCDABUS0003, Authority to Negotiate and Execute Certain Business Contracts and Agreements, Chancellor to Vice Chancellors, July 1, 1997.
VI. Copies
Special Assistant--Coordination and Review
General Counsel and Vice President for Legal Affairs
Senior Vice President--Business and Finance