DA 2118

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OFFICE OF THE PRESIDENT
1111 Franklin Street
Oakland, California 94607-5200
Phone: (510) 987-9074
Fax: (510) 987-9086
http://www.ucop.edu

April 5, 2000

CHANCELLORS
LABORATORY DIRECTORS
VICE PRESIDENT--AGRICULTURE AND NATURAL RESERVES

Delegation of Authority--Negotiation, Approval, and Execution of Licenses for Use of Real Property

Standing Orders of the Regents 100.4(ff) and (jj) authorize the President to negotiate the sale, purchase, and receipt by gift or lease of real properties for campus-related purposes, and to approve and execute licenses, easements and rights of way with respect to real property held or acquired for campus-related purposes, when the consideration does not exceed $10 million or when such instruments are revocable with 120 days' notice.

Effective immediately, subject to the language of these Standing Orders and to policies and procedures which may be established by the Senior Vice President--Business and Finance, you are delegated authority to negotiate, and within the following parameters, to approve, and execute, licenses of real property including Facilities Use Agreements and other forms of agreement that are equivalent to licenses of real property (except those licenses relating to real property held as an investment of the Corporation), when such contracts:

1.
are (i) revocable on not more than 120 days' notice, or (ii) provide utility services to the campus exclusively, regardless of revocability, or (iii) are limited in the length of term and consideration as follows:

a.
the initial License term does not exceed five years,

b.
the total term (including options) does not exceed 10 years, and

c.
the base annual consideration (exclusive of operating expenses and all concessions to the University): (i) does not exceed $250,000 for the initial year, and (ii) annual increases in the consideration for subsequent years is limited to either: (a) the actual annual percentage increases in the Consumer Price Index for all Urban Consumers (CPI-U all items), or (b) an average annual rate of increase over the license term that does not exceed 10%; and

2.
are not for the purpose of facilitating third-party development of projects on campus for gift, sale, or lease to the campus;

3.
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 licensed property which the University is obliged to maintain; and

4.
are written on a University Standard Form without significant modification or on a form that has been approved by the General Counsel.

License agreements that do not meet these conditions 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.

If the University's licensing of a facility as Licensee results in that facility's use as a primary work location for a University employee, or for continuous classroom, residential or other use by the University for a period in excess of twelve months, regardless of the initial term, then the License shall be subject to compliance with all of the health and safety standards applicable to a lease with the University as tenant, including the Seismic Safety Policy. A responsible University employee should review each facility subject to a license and make a determination that no University employee, student, or invitee will be placed in unreasonable risk as a result of use of the facility subject to the License or other use agreement, even when the facility will not serve as a primary work location or for continuous classroom, residential, or other use.

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. Campus shall be the office of record for original execution copies of real property license agreements and amendments thereto made under this delegation, except for recorded documents returned to the University, which shall be retained by the Secretary of The Regents. The Real Estate Services Group is available to consult on real property license agreement negotiation matters.

This delegation supersedes Delegation of Authority 0849 issued on December 18, 1984 to Chancellors, the Senior Vice President--Administration, and the Vice President--Agriculture and Natural Resources on this same subject.

Richard C. Atkinson
President

cc:
Members, President's Cabinet
Special Assistant Gardner
Principal Officers of The Regents