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 Negotiation, Approval, and Execution of University-Related Real Property Rental Agreements (Leases) View/Print Document
October 21, 2009
From:   Chancellor Gene D. Block
To:   Administrative Vice Chancellor Sam J. Morabito
  1. UC DA 2231 (Negotiation, Approval, and Execution of University-Related Real Property Rental Agreements (Leases) to Chancellors, et al., 9/3/2009;
  2. Standing Orders of The Regents, Section 100.4 (cc) and (ff).
Supersedes:  UCLA DA 140.12 (Negotiation, Approval, and Execution of University-Related Real Property Rental Agreements (Leases)) to Vice Chancellor Morabito, 11/19/2007.

I hereby delegate to you, as Administrative Vice Chancellor, the authority to negotiate, approve and execute Rental Agreements (including subleases and excluding ground leases) relating to real property of the campus, as described in Standing Order 100.4 (cc) and (ff), and including authority to approve and execute ancillary documents, amendments or other modifications, in accordance with University policies, procedures and guidelines which may be established by the Office of the President, and provided that:

  1. the term of the Rental Agreement does not exceed 10 years, regardless of rent amount, excluding options when the University is the lessee, but including options granted by the University as the lessor;

  2. the Rental Agreement (1) is on a University standard form without material modifications, or (2) consideration for the initial year does not exceed $500,000, or (3) consideration for the initial year exceeds $500,000 and the Rental Agreement form has been reviewed and approved by the Office of General Counsel (OGC);

  3. the Rental Agreement is not a capital lease, or a lease-purchase or similar transaction by which the University will ultimately take title to the property;

  4. the Rental Agreement does not involve the assumption by the University of liability for the 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 maintain (see Regents Standing Order 100.4(dd)(9)), or as otherwise authorized by The Regents;

  5. the indemnity and insurance provisions of the Rental Agreement have been approved by the campus risk manager;

  6. the Office of the President Real Estate Services Group (RESG) and OGC must review and approve first right of offer or refusal or any purchase option language, if included in a Rental Agreement; and

  7. the campus lease practitioner shall complete and retain in the official lease file the attached checklist for Rental Agreements prepared pursuant to this delegated authority (“Lease/License Checklist”). The campus lease practitioner shall also send a copy of each fully executed Lease/License Checklist to RESG.
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 falls within your delegated authority. Exercise of Extension Options shall be executed on a form of lease amendment or other document approved by the OGC. The exercise of options in Rental Agreements approved by The Regents shall be governed by the terms of that approval.

Real property Rental Agreements, ancillary documents and amendments that do not meet the conditions set out in this delegation must be submitted for approval and execution in accordance with the Standing Orders of The Regents. The campus shall be the office of record for original executed Rental Agreements and amendments thereto executed pursuant to this delegation.

Annually, by July 31st, you shall certify and submit to RESG a report listing each Rental Agreement approved and executed pursuant to this delegation during the preceding fiscal year, including total lease space, total cost of leased space and average cost/square foot, and attest that all terms referenced in this delegation and the attached Lease/License Checklist have been satisfied.

This delegation is being issued due to the reissuance of the parent OP DA and there are numerous substantive changes to the delegation being superseded, including the term of the rental agreement (was 5 years, now 10 years); first year consideration (was $250,000, now $500,000); indemnity and insurance provisions must be approved by the campus risk manager; new Lease/License Checklist and annual report to the RESG. Any redelegation shall be in writing with a copy to me and those listed below.

Attachment: Lease/License Checklist

Executive Vice Chancellor & Provost
Associate Vice President, Capital Resources Management
General Counsel & Vice President, Legal Affairs
Universitywide Policy Coordinator
Manager, Administrative Policies & Delegations

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