Campus Policy Number: 700-03
Agreements for Real Property
Policy Owner: Office of Real Estate Services
Effective Date: May 1, 2008
I. INTRODUCTION
The Office of Real Estate Services is responsible for the management of real property transactions involving acquisition, disposition, licensing of/for and leasing of/for the Riverside Campus and for the UC Riverside Foundation, with the exception of student housing, which is managed by Housing Services and University Extension. Real Estate Services acts as the property and asset manager for University-owned land and buildings located off campus having non-University tenants or mixed tenancy (non-University as well as University tenants). In addition, transactions involving Regents endowment properties and faculty housing assistance programs are coordinated through Real Estate Services. Responsibilities include but are not limited to negotiating, reviewing, drafting and preparing real property agreements for execution including lease agreements, license agreements, wireless communication and data connectivity agreements, easements, and ancillary documents relating to real property transactions. All such agreements, if not signed by the President, are signed by the Vice Chancellor of Academic Planning and Budget as delegated by the President and re-delegated by the Chancellor.
Certain License Agreements and Facility Use Agreements for temporary use of land by researchers, classroom space at school districts, use of convention centers for conferences and summer camps are handled by Purchasing. See attached chart outlining departmental responsibility for various University of California, Riverside Contracts, incorporated herein as Exhibit A.
A. Real Property Agreements Handled by the Office Real Estate Services (RES)
1. Lease Agreements – The Regents as Landlord
a) Retail leases (i.e. Bannockburn, UCR Commons)
b) Off-campus properties owned by The Regents or the UCR Foundation
c) Ground lease of land owned by The Regents or the UCR Foundation
2. Lease Agreements – The Regents as Tenant
a) Off-campus space for administrative offices
b) Off-campus space for laboratory/research
c) Off-campus lease space for warehouse purposes
3. Licenses – The Regents as Licensor
a) Event Parking Licenses - use of University paved parking lots or vacant dirt lots for an External Entity’s limited use. Please note that although parking lots are administered by Transportation and Parking Services or University Extension, RES assists in the development and processing of this type of license agreement.
b) Food and Specialty Vendor Contracts - use of retail space at Bannockburn, the Commons or the University Extension Center by an External Entity to provide services to the general University population.
c) Telecommunications Licenses - use of University telecommunications facilities and infrastructure and/or other properties by an External Entity (i.e. antennae site agreements, conduit and roof top agreements for wireless communications including voice, data and streamed multimedia).
d) ATM Service Licenses - use of University real property for the installation/housing of ATMs that are either outdoor installations or interior fixtures and owned and operated by an External Entity.
e) Construction Staging Licenses - use of paved parking lots or vacant dirt lots, separate from the corresponding construction site, by an External Entity in connection with University related construction projects.
f) Research Related Licenses - use of University real property for research related projects of either an External Entity or a joint program between the External Entity and the University.
g Miscellaneous Licenses - use of University real property not listed above as determined on a case by case basis by RES.
4. Licenses – The Regents as Licensee
a) Research License Agreements - use of an External Entity’s real property for purposes of staging or conducting a research activity, etc. in connection with University research.
b) Telecommunications License Agreements - use of an External Entity’s telecommunications facilities and/or other related properties by the University.
c) Storage License Agreements - use of an External Entity’s real property for purposes of storing research equipment or equipment connected with a University educational program. Please note this category does not include storage that can be accomplished via commercial means. UCR Purchasing handles agreements for private, commercial storage units.
6. Other agreements such as easements, purchase and sale agreements, options to purchase, ground leases and other agreements as may be necessary to facilitate the use of or acquisition/sale of real property interests.
II. DEFINITIONS
A. Easements. An easement, like a license, gives the permission of the owner to use or prevent the use of the owner’s real property. However, unlike a license, it transfers to the easement holder an interest in the real property that encumbers the record title. Easements are classified as either appurtenant (benefiting and transferable with a specific piece of real property) or in gross (personal to the grantee). An easement can be transferred. Unless otherwise specified, an easement is presumed to be permanent and non-exclusive.
B. External Entity. An External Entity is an organization other than the University of California. Examples of external entities include but are not limited to the following: 1) government entities: city, county, state, or federal governments; 2) business entities: corporations; partnerships; sole proprietorships; limited liability companies; 3) charitable organizations; and 4) the various branches of the U.S. military.
C. Fixture. Items of personal property attached to real property in such a manner as to become real property and of a regulated and/or fiduciary nature.
D. Initiating Party. An Initiating Party is either a UCR department or program or an External Entity requesting preparation and issuance of a lease or license agreement.
NOTE: In the event the Initiating Party is an External Entity that requests the preparation and issuance of a license agreement but is not sponsored by a UCR department/program, as defined in Section V.B, a different procedure, not specifically addressed herein but available from Real Estate Services by request, will apply.
E. Lease Agreement. A lease is an agreement in which the landlord agrees to give the tenant the exclusive right to occupy real property, usually for a specific term and, in exchange, the tenant agrees to give the landlord some sort of consideration. A lease transfers to the tenant a leasehold interest in the real property and, unless otherwise provided in the lease, a lease is transferable and irrevocable.
F. License Agreement. A license gives the permission of the owner to an individual or an entity to use real property for a specific purpose. Unlike a lease, it does not transfer an interest in the real property. It is personal to the licensee and, typically, any attempt to transfer the license terminates it. It is (usually) revocable and can be either exclusive or non-exclusive. Definitions related to Licensing include:
1. Licensed Property/Licensable Property - real property owned by the University or an External Entity and the subject of the corresponding license agreement (i.e. developed outdoor land such as a paved parking lot; undeveloped outdoor land such as a vacant dirt lot; indoor space).
2. Licensee - an individual or entity granted permission via a written and properly executed agreement to use Licensable Property.
3. Licensor - an individual or entity granting permission to another individual or entity, via a written and properly executed agreement, to use Licensable Property.
4. Facility Use Agreement (FUA) - a short form license for very limited use of a facility.
Licenses are sometimes buried in other agreements, e.g. a memorandum of understanding (MOU). A separate license should be created whenever a right to use another party’s space, usually for a shorter term, is part of a larger relationship. The separate license should be attached as an exhibit to the more general agreement.
G. Personal Property - Movable property or any property which is not real property.
H. Real Property - Lands, buildings and fixtures as defined above.
III. POLICY
All transactions permitting the use of University real property by an External Entity or use of an External Entity’s real property by a UCR department/program require a fully executed agreement between The Regents of the University of California and the External Entity prior to the use of such property. No commitment may be made on behalf of the University, either orally or in writing, except by persons having formal delegations of authority for real property contract execution. Persons making unauthorized commitments may be held personally responsible for financial commitments.
The authority to acquire and/or dispose of real property owned by the University is delegated to the President or The Regents. All such transactions are handled by the University of California Office of the President, Real Estate Services Group (RESG) with the cooperation of the UCR Office of Real Estate Services. Transactions involving real property owned by the UCR Foundation are under campus authority. Real Estate Services works directly with the Development Office and the UCR Foundation with acquisition and sale transactions.
A. Agreements may require approval from the Office of the General Counsel, President, and/or The Regents. These agreements include but are not limited to the following:
1. Agreements written by outside entities may require General Counsel's approval
if negotiations to modify the language are unsuccessful.
2. Renewal of, or amendments to, existing, approved agreements that materially
change the terms and conditions may require General Counsel's approval.
3. Agreements that require the University to assume third party liability require Regental approval.
4. Agreements not within the approval authority delegated to the campus may require General Counsel’s and President’s approval. See Delegation of Authority, which is located on the UCOP Facilities Administration website and incorporated herein as Exhibit B.
B. Whenever possible, the University standard form of document is used in a real property transaction.
C. All agreements between The Regents and an External Entity that expose the University to any legal liability must be reviewed and approved by the UCR Director of Risk Management.
D. Unless real property is involved, agreements in support of research, instruction, or related sponsored activities should be directed to the Office of Research Affairs for review and approval.
IV. PROCEDURES FOR LEASED REAL PROPERTY
Real Estate Services is the office responsible for all off-campus leased space. This includes review, negotiation, coordination, and processing with both internal and external entities for all UCR requests for leased space off-campus. This ensures that (i) appropriate approvals to proceed with leasing space off-campus are received; (ii) coordination of inspections conducted by UCR’s Environmental, Health & Safety (EH&S), Physical and Capital Planning and Office of Design and Construction are completed; (iii) all financial and business negotiations with external entities are conducted by Real Estate Services; (iv) an evaluation of fair market rents is completed; (v) appropriate approvals on the Standard Form Lease Agreement (SFLA) are obtained; and (vi) leased space is delivered to the department in a timely and satisfactory manner.
A. Time Frame
Time frames for execution of a lease agreement and occupancy of the premises after submission to Real Estate Services will be affected by which entity within the University system will be reviewing and/or executing the document and the following:
1. Complex lease agreements requiring review by several offices.
2. Lease agreements for space requiring special design and construction for specific uses.
3. Lease agreements for space requiring major tenant improvements prior to occupancy.
4. Lease agreements requiring approval of The Regents and/or execution at the Office of the President coordinated through the Real Estate Services Group (RESG) located at the Office of the President.
B. The Regents as Tenant
[See Procedural Flowchart for Leased Real Property – The Regents as Tenant incorporated herein as Exhibit C]
In this instance, The Regents of the University of California (The Regents) enters into an agreement with an External Entity as “Tenant”.
1. Responsibilities of the Initiating Party:
a) Completes an Off-Campus Space Request (OCSR) form, which is incorporated herein as Exhibit D, and submits it for approval to the department chair and appropriate dean or vice chancellor’s office. The appropriate office will then forward the approved OCSR to Real Estate Services.
b) Provides specific space requirements by completing a Space Planning Guide, which is incorporated herein as Exhibit E, and submitting it to Real Estate Services.
c) Coordinates the start-up utilities for the space with Physical Plant prior to occupancy. Please note that UCR Physical Plant monitors and authorizes payment of utilities for all UCR leased and owned properties.
d) Coordinates installation of all telecommunication and computer data needs and moving arrangements, including mail services and/or U.S. Post Office services with the appropriate departments (i.e. Computing and Communications, Physical Plant). This step is completed after the negotiated terms of the lease agreement are final and a move-in date has been set.
e) Cooperates with the Office of Real Estate Services on all matters related to completing a transaction.
f) Cooperates with Risk Management.
2. Responsibilities of the Office of Real Estate Services (RES):
a) Works with the Initiating Party on site selection for off-campus space once the OCSR has been signed by appropriate parties. RES will determine if the service of a broker will be needed to facilitate the request.
b) Coordinates site visits with the building representative and the Initiating Party.
c) Coordinates EH&S inspections (initial, tenant improvement and final) for selected sites. Prepares and sends appropriate letter(s) addressing the results of all inspections.
d) Coordinates with Design and Construction the required reviews, inspections, and certifications pertaining to the most recent UC Seismic Safety Policy, which is located on the UCOP Facilities Administration website and incorporated herein as Exhibit F, and any other reviews and/or inspections handled by Design and Construction such as ADA compliance.
e) Gathers lease comparables.
f) Negotiates all financial and policy matters with the External Entity, to include presentation of counter proposals to the External Entity.
g) Coordinates with Capital and Physical Planning and the Office of Design and Construction to obtain the Environmental Impact Classification in compliance with the California Environmental Quality Act (CEQA).
h) Coordinates with UCR Risk Management for a risk assessment after input provided by EH&S and Facilities Management.
i) Forwards indemnification/insurance language contained in agreements to the UCR Director of Risk Management for review and approval.
j) Prepares financial analysis for the transaction.
k) Prepares the lease agreement with the necessary terms and conditions, or reviews terms and conditions of the External Entity’s lease agreement, ensuring that all business arrangements are consistent with University policies and procedures, reviewing documents for format, content, and compliance.
l) Secures necessary approvals for changes in the SFLA from the Office of the President and/or the Office of the General Counsel of The Regents and coordinates any involvement with the Office of the President and/or the Office of the General Counsel of The Regents for legal matters pertaining to the transaction.
m) Secures signature of the authorized University party on the Lease Approval Form. A sample is incorporated herein as Exhibit G.
n) Secures signature of the authorized University representative and the authorized representative for the External Entity on the final lease document.
o) Distributes the fully executed lease agreement and Lease Approval Form to the Initiating Party, Dean’s and/or Director’s office, the Office of the President and any other department involved in performing the terms and conditions of the lease agreement.
p) Maintains all original agreements and ancillary documents as the office of record.
q) Enters the terms and conditions of the lease agreement in the lease database system.
r) Coordinates receipt of certificates of insurance as described in the agreement from both the External Entity and the UCR Director of Risk Management.
s) Coordinates accounts receivable and accounts payable with the appropriate parties to ensure that funds associated with transactions facilitated by the Office of Real Estate Services are received and/or disbursed according to the agreement and once received, properly allocated to the Chancellor or campus department/program.
C. The Regents as Landlord
Transactions involving the use of University real property by an External Entity require a lease agreement between The Regents and the External Entity. The Regents (Landlord) on behalf of a UCR department/program conveys to an External Entity (Tenant) an exclusive right to occupy and use a specific University-owned real property on a temporary basis.
1. Real Estate Services is responsible for leasing of University-owned land or building space to external entities, which entities may (as Tenants) be subject to possessory interest tax as determined by the County Assessor. In addition, Real Estate Services acts as the property and asset manager for University-owned land and buildings located off-campus having non-University tenants or mixed tenancy (non-University as well as University tenants).
2. Departments should direct all inquiries regarding leasing of University real property to external entities to Real Estate Services at which time they will be advised of the necessary process and procedure required for the specific transaction.
3. On-campus educational or research facilities, in general, are leased to non-profit organizations conducting instruction, research, or healthcare functions.
4. University facilities leased to private, for-profit entities are handled through Real Estate Services. Any lease revenues from such activities will go to the designated campus department or program.
5. Real Estate Services coordinates with Capital and Physical Planning and the Office of Design and Construction matters regarding environmental review and planning concerns involved with lease transactions with The Regents as landlord.
D. Administrative Responsibilities
1. Renovations, Repairs and Alterations – All proposed facility related changes to leased properties as described in the lease agreement, regardless of the fund source, are to be negotiated and coordinated by RES. Renovations, repairs and alterations at leased facilities are subject to requirements beyond those on campus, which may include obtaining City of Riverside building permits, inspections by City building inspectors, liability issues and compliance with City codes. It is in the best interest of the University that work at off-campus leased facilities be approved and accomplished by the External Entity and coordinated through RES. RES will coordinate the required approval by the External Entity and the EH&S review and approval of plans for all renovations, repairs and alterations to University-occupied space.
2. Lease Renewals – RES is responsible for negotiating and coordinating the renewal of lease terms for all off-campus leased space. RES will contact the department representative four to six months prior to the required lease renewal notification date as described in the lease agreement to discuss renewal of the lease agreement. RES will negotiate the new lease terms, including financial terms, and process the appropriate documents memorializing the agreement.
3. Lease Terminations - RES will contact the department representative approximately four months prior to the notice date as written in the lease agreement to determine when the department plans to vacate the premises. RES will coordinate all aspects of vacating the premises including a final inspection to ensure that the vacated premises have been left in a condition consistent with the lease terms and satisfactory with the landlord.
4. Lease Administration - Any questions arising from occupancy of off-campus leased space are to be directed to RES for coordination and/or resolution.
5. Ancillary Documents - It is the responsibility of RES to process and/or review all ancillary documents in connection with lease agreements under its jurisdiction.
6. Related Administration
a) Certificate(s) of Insurance - RES requests and monitors all Certificates of Insurance updates evidencing the External Entity’s and the University’s insurance coverage as required in the lease agreement.
b) Ancillary Documents - It is the responsibility of RES to process and/or review all ancillary documents in connection with lease agreements under its jurisdiction.
c) Prepares tax exemption claim forms as required by the lease agreement.
V. PROCEDURES FOR LICENSED REAL PROPERTY
All requests or inquiries regarding the licensing of real property should be directed to the Office of Real Estate Services (RES). No commitment may be made on behalf of the University, either orally or in writing, except by persons having formal delegations of authority for real property contract execution.
A. Time Frame
The time frame for processing a license agreement varies due to the responsiveness and availability of all parties. Ideally, the full execution of a basic license agreement may take from four to six weeks. A license that requires 1) review and/or approval by the Office of the President, the Office of the General Counsel of The Regents, The Regents in the case of a Regents’ item or a governmental entity; 2) preparation of an Initial Environmental Study or an Environmental Impact Report (not to be confused with an Environmental Impact Classification); or 3) analysis of any physical planning issue(s) will extend the time frame to approximately two to six months.
Transactions concerning the restricted access, use and/or occupancy of University real property by an External Entity require a license agreement between The Regents of the University of California (The Regents) and the External Entity. The Regents (Licensor) on behalf of a UCR department/entity conveys to an External Entity (Licensee) limited and revocable rights to access, use and/or occupy a specific real property owned by the University. See Procedural Flowchart for Licensed Real Property—The Regents as Licensor, incorporated herein as Exhibit H.
A license activity requiring the preparation of a license agreement by RES and concerning the use of University developed or undeveloped lands or facilities by an External Entity must be sponsored by a UCR department/program. The purpose of such sponsorship is to ensure the proposed activity is in the best interest of the University and surrounding community. It is the responsibility of the sponsoring department/program to: i) ensure the proposed activity is either directly or indirectly beneficial to the University; adheres to all University policies and undergoes an adequate evaluation process prior to submission to RES and ii) serve as liaison between the University and the Licensee and iii) assume the role of internal advocate for the proposed activity.
1. Responsibilities of the Sponsoring Department
a) The sponsoring department/program shall contact RES to facilitate the licensing transaction and complete an Information Sheet (The Regents as Licensor), incorporated herein as Exhibit I. The Information Sheet provides RES with basic information about the parties and the proposed license activity. Detailed information, if required, will be provided in the negotiation process.
b) The sponsoring department/program shall act reasonably and responsibly with respect to its support of the proposed use which must be within the scope and mission of the University. If the sponsoring department/program is negligent with respect to such responsibility, the UCR Director of Risk Management will look to the sponsoring department/program to cover all or a portion of the economic losses that may result from such negligence.
c) In the event the proposed activity involves the use of property that relates to an overall benefit to the Campus and/or the community, but is not directly involved with an existing University activity, the Executive Vice Chancellor and Provost will be asked to assume the responsibilities of sponsorship.
2. Responsibilities of Real Estate Services. It is the responsibility of RES to prepare and submit the draft license agreement to the following offices and/or entities, as appropriate, for their respective reviews:
a) Initiating Party - review terms and conditions of the proposed license agreement for accuracy.
b) EH&S - on occasion, EH&S may conduct general health and life safety inspections for a proposed license activity concerning University real property (i.e., public assembly, tents, pyrotechnics, fires, etc.).
c) Office of Design and Construction - Design & Construction may conduct seismic and ADA reviews or other types of reviews and/or inspections for a proposed license activity concerning University real property.
d) Physical Plant - Physical Plant notification and/or approval may be required depending on the nature of the proposed license activity.
e) Physical and Capital Planning - Capital Planning reviews the proposed license activity with respect to its impact on the environment and/or the campus plans and for the purposes of controlling the use of University land. The review will require the preparation of an Environmental Impact Classification and possible subsequent documentation depending upon the complexity of the request.
f) Governmental & Community Relations - reviews the proposed license activity with respect to its impact on governmental and community relations.
g) Transportation and Parking Services - reviews the proposed license activity with respect to its impact on campus and community traffic and parking.
h) Campus Police Department - reviews the proposed license activity with respect to safety and protection of the campus community population and property.
i) Risk Management - reviews any proposed license agreement to ensure that the insurance and indemnification language is appropriate for the licensing activity.
j) Office of General Counsel of The Regents or Campus Counsel as appropriate - reviews the proposed license agreement with respect to legal form.
k) Office of the President - reviews the proposed license agreement if the agreement falls under Regental or Presidential Delegation. In the event a license agreement falls under Regental Delegation, the agreement will be submitted as a Regents Item which requires special processing both on the campus and UC systemwide levels. The Real Estate Services
Group (RESG) at the Office of the President processes all license agreements reviewed by the Office of the President.
l) Government Agency(ies) - On occasion, a government agency will need to review a proposed license agreement for purposes of approval and/or informational input.
m) Licensee and/or Licensee’s (External Entity’s) representative
As determined by UC policy, RES shall submit a license agreement for execution on behalf of The Regents to the appropriate University representative.
C. The Regents as Licensee
RES handles license agreements that involve the use of an External Entity’s real property by the University. Examples of such license agreements are as defined in Section V. B.2 above. RES does not handle agreements for: i) use of an External Entity’s medical or clinical space on a limited basis, both time wise and space wise or ii) service agreements where University employees provide services to an External Entity at the entity’s location. See Procedural Flowchart for Licensed Real Property—The Regents as Licensee, incorporated herein as Exhibit J.
1. Responsibilities of the Initiating Party
a) Initial Request - Prior to commencement of the proposed license activity, the Initiating Party shall notify RES of the proposed license activity and request the preparation of a license agreement or, in the case where a license agreement has already been prepared by the External Entity, the review and processing of the license agreement on behalf of the University. To ensure an appropriate license agreement is prepared, reviewed and processed in a timely manner, it is recommended that the Initiating Party provide such notice to RES at the onset of any discussions of the proposed license activity between the Initiating Party and the External Entity.
b) Information Sheet - In the case where RES is to prepare a license agreement and upon notification of the proposed license activity, RES will send an Information Sheet (Regents as Licensee), incorporated herein as Exhibit K, to the Initiating Party. The form must be completed in its entirety by the appropriate representative of the Initiating Party and signed by the department chair or equivalent to indicate acknowledgement and approval of the proposed license activity. In the case where the license agreement has already been prepared by the External Entity, RES may still request acknowledgement and approval of the proposed license activity in some written form.
c) Negotiations - If RES is to draft a license agreement and depending upon the nature of the proposed license activity, formal negotiations between the parties may be required to determine the more detailed terms and conditions of the proposed license activity. The Initiating Party and RES will negotiate such terms and conditions.
d) License Approval Form - At the election of RES, a completion and routing of a License Approval Form-Regents as Licensee, incorporated herein as Exhibit L, may be required before the license agreement is submitted for the signature process. Approval signatures on this form indicate the acceptance of all terms and conditions of the proposed license agreement and all financial obligations.
e) It is the responsibility of the Initiating Party to ensure all provisions of the license agreement are fulfilled pursuant to its terms and conditions, including those of a fiduciary nature.
2. Responsibilities of Real Estate Services - RES will submit the proposed license agreement, whether prepared by RES or the External Entity, to the following office and/or entities as appropriate, for their respective reviews:
a) Initiating Party - reviews terms and conditions of the proposed license agreement for accuracy.
b) EH&S - may conduct general health and life safety inspections if a building owned by the External Entity is to be used by the University for a proposed license activity.
c) Office of Design & Construction - may conduct seismic and ADA reviews or other types of reviews and/or inspections if a building owned by the External Entity is to be used for a proposed license activity.
d) Physical Plant - Physical Plant notification and/or approval may be required depending on the nature of the proposed license activity.
e) Capital and Physical Planning - may review the proposed license activity with respect to its impact on the environment. The review will require the preparation of an Environmental Impact Classification and possible subsequent documentation depending upon the complexity of the request. In most cases, however, this task will be conducted by the External Entity.
f) Governmental & Community Relations - reviews the proposed license activity with respect to its impact on governmental and community relations.
g) Risk Management - reviews any proposed license agreement to ensure that the insurance and indemnification language is appropriate for the licensing activity.
h) Office of the General Counsel of The Regents - reviews the proposed license agreement with respect to legal form.
i) Office of the President - reviews the proposed license agreement if the agreement falls under Regental or Presidential Delegation. In the event a license agreement falls under Regental Delegation, the agreement will be submitted as a Regents Item which requires special processing both on the campus and UC system wide levels. The Real Estate Services Group (RESG) at the Office of the President processes all license agreements reviewed by the Office of the President.
j) Government Agency(ies) - On occasion, a government agency will need to review a proposed license agreement for purposes of approval and/or informational input.
k) Licensor and/or Licensor’s (External Entity’s) representative will review a draft prepared by RES or review any revisions resulting from the University’s review.
As determined by UC policy, RES shall submit a license agreement for execution on behalf of The Regents to the appropriate University representative.
D. Administrative Responsibilities
All proposed changes to licensed properties as described in the license agreement are to be negotiated and coordinated by RES.
1. Renewal of an Existing License Agreement - Renewal of an existing license agreement can be accomplished by either an amendment or a new license agreement (i.e., a renewal license agreement). The same essential procedure required for lease renewal (Section IV. D.2.) is required for license renewal. However, the procedure for a renewing a license agreement will be less extensive unless major changes in the terms and conditions have occurred.
2. Amendment to an Existing Agreement - In addition to extending an existing license agreement, an amendment is also used to document revisions of the terms and conditions in an existing license agreement. An amendment can be processed and executed at any time during the term of the license agreement.
3. Termination - On rare occasion, a party may choose to terminate an existing license agreement prior to the expiration date stated in the agreement. All terminations must be implemented in accordance with the appropriate term(s) of the existing license agreement.
4. Related Administration
a) Certificate(s) of Insurance - RES requests and monitors all certificate(s) of insurance evidencing the External Entity’s and the University’s insurance coverage as required in the license agreement.
b) Ancillary Documents - It is the responsibility of RES to process and/or review all ancillary documents in connection with license agreements under its jurisdiction.
VI. FINANCIAL POLICIES
A. The Regents as Licensor
1. User Fees - Depending on the nature of the license agreement, a fee may be charged to the Licensee as consideration for the use of the University real property. All fees shall cover the University costs of providing such use which shall be determined by RES and/or the Initiating Party. Prior to the full execution of the license agreement, the Initiating Party may be required to confirm in writing, by means of a License Approval Form—The Regents as Licensor, incorporated herein as Exhibit M, that the amount of such fee is acceptable. The basis of the user fee is not considered a recharge activity. However, a user fee may include recharge activity fees.
2. License Agreement Costs - In the event the approval process for a license agreement requires review by UCR’s Environmental Health & Safety and/or Design & Construction departments, the Initiating Party will be responsible for all costs incurred for review and inspection of the University real property. The responsibility for any other costs associated with processing the license agreement will be determined on a case by case basis at the time of such processing.
3. Possessory Interest Tax - The Licensee may be liable for payment of possessory interest taxes related to its use of University real property.
B. The Regents as Licensee
1. Fees - Depending on the nature of the license agreement, a fee may be required as consideration for the use of the external real property. Such fee shall be the financial responsibility of the Initiating Party. Prior to the full execution of the license agreement, the Initiating Party will be required to confirm in writing, by means of a License Approval Form—The Regents as Licensee that it accepts the responsibility of paying such fee per the terms of the license agreement.
2. License Agreement Costs - In the event the approval process for a license agreement requires review by UCR’s EH&S and/or Design & Construction Departments, the Initiating Party will be responsible for all costs incurred for review and inspection of the External Entity’s real property. The responsibility for any other costs associated with processing the license agreement will be determined on a case by case basis at the time of such processing.
VII. REFERENCES
Delegation of Authority: 2117, 2140, and 2118 dated 4/5/2005, 11/3/2003, and 4/5/2005 respectively, "Negotiation, Approval, and Execution of Real Property Agreements," from the President of the University to the Chancellor.
Delegation of Authority: 2117, 2140, and 2118: dated 7/14/2005, "Negotiation, Approval, and Execution of Real Property Agreements," from the Chancellor to the Vice Chancellor of Academic Planning and Budget.
Regents Standing Order 100.4 (cc) Duties of the President of the University
Regents Bylaw 21.2 General Counsel