DA 2140

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

November 3, 2003

CHANCELLORS
LABORATORY DIRECTORS
VICE PRESIDENT--AGRICULTURE AND NATURAL RESOURCES

Delegation of Authority--Negotiation, Approval, and Execution of University-Related Real Property Rental Agreements (Leases)

Standing Orders of the Regents 100.4 (cc) and (ff) authorize the President to negotiate, approve and execute contracts, real property rental agreements, and other documents pertaining to the use of facilities for University-related purposes (Rental Agreements). Effective immediately, subject to the 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, to approve, and to execute Rental Agreements (including subleases) within the following parameters.

1. When the term of the Rental Agreement, excluding any option term to be exercised by the University as tenant, does not exceed 5 years; or, when the University is the landlord, the term of the Rental Agreement does not exceed 5 years, and the total term including options does not exceed 10 years;
   
   
2. When the annual base rent does not exceed $250,000 for the initial year of the Rental Agreement, as adjusted pursuant to Standing Order 100.4 (cc) each November 1 (commencing November 1, 2000);
   
   
3. The annual rent increases for subsequent years shall be limited to either: (i) the actual annual percentage increases in the Consumer Price Index for all Urban Consumers (CPI-U all items), or (ii) an average annual rate of increase over the lease term that does not exceed 10%;
   
   
4. When the Rental Agreement does 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 Rental Agreement, the University assumes responsibility for liability resulting from the condition of leased property that the University is obliged to maintain¹, or as otherwise authorized by The Regents²;
   
   
5. When the Rental Agreement is not a lease-purchase or similar transaction by which the University will ultimately take title to the property; and
   
   
6. When the Rental Agreement is written on a University standard form lease agreement without substantial changes, or has been approved as to form by the General Counsel.

In cases in which the University is the tenant, you are delegated authority to exercise any option to extend the term of a Rental Agreement (Extension Option), provided that the terms of the option conform to the conditions set forth in paragraphs 1 through 6 above. An Extension Option is deemed to be a new Rental Agreement for purposes of determining whether the term of the option and the annual base rent fall within the Chancellor's authority. This authority shall also apply to the exercise of Extension Options in Rental Agreements executed after January 18, 2001 under the authority of the President. Exercise of Extension Options shall be executed on a lease amendment or other document approved by the Office of General Counsel (OGC). The exercise of options in Rental Agreements approved by The Regents shall be governed by the terms of that approval.

You are further delegated the authority to approve and execute ancillary documents, amendments or other modifications to a Rental Agreement as delegated to the President, provided that such documents (i) do not materially modify the terms of the Rental Agreement or increase the University's obligations thereunder, and (ii) conform to the standards and procedures established by the Real Estate Services Group (RESG) and the OGC, or have been approved as to form by the OGC.

Real property Rental Agreements, ancillary documents and amendments that do not meet the conditions set out in this delegation 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.

Each campus shall be the office of record for original executed Rental Agreements and amendments thereto made pursuant to this delegation; however, a copy of each executed Rental Agreement and amendment shall be transmitted to the RESG, Office of the President. RESG is available to consult on real property rental agreement negotiation matters.

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.

This delegation supersedes Delegation of Authority 2116 issued on April 5, 2000, to Chancellors, Laboratory Directors, and the Vice President--Agriculture and Natural Resources on this same subject.

Robert C. Dynes
President

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

¹ Regents' Bylaw 21.3(2)(dd)

² Authorization to Indemnify the Federal Government in Regard to University Use of Federal Land," September 17, 1998