Real Estate Services & Strategies
Real estate responsibilities
- Section 2.01: Responsibilities of Campus Real Estate Departments
- Section 2.02: Responsibilities of Real Estate Services Group
- Section 2.03: Responsibilities of Coordination and Review
- Section 2.04: Responsibilities of General Counsel
- Section 2.05: Responsibilities of Office of the Secretary of the Regents
- Section 2.06: Responsibilities of Risk Management
- Section 2.07: Responsibilities of Planning & Design
- Section 2.08: Responsibilities of Facilities Management and Construction
- Section 2.09: Responsibilities of Other Associated Departments
Section 2.01: Responsibilities of Campus Real Estate Departments
Each campus and laboratory has the primary responsibility for negotiating all financial and business terms of each transaction in keeping with terms and conditions prevalent in the relevant market area. The campus and laboratory leasing staff coordinates with campus and laboratory Environmental Health and Safety, Facilities Maintenance, Risk Management, and other departments to ensure that the proposed leased facility has been built and maintained to applicable federal and state codes and University policies. The campus and laboratory leasing staff is also responsible for adhering to the its Long Range Development Plan as well as to the department's long-term space stacking plans. The real estate department is responsible for development of a space needs criteria with which it assesses proposals for relocation, construction, and expansion requests. It maintains a lease document transaction file containing fully executed originals, a statement of programmatic need, property selection procedures, and a comparable property analysis. It provides information to RESG regarding new leases, amendments and other modifications to leases, as well as projections of future leasing activity. It reviews the request for leased space and performs the necessary due diligence on the leased space.
When the campus or laboratory leases Regents' owned property or subleases property leased to The Regents (thereby creating a possessory interest), it is required, on behalf of the University, to report to the local county assessor the creation of the taxable possessory interest within sixty (60) days after the creation of that interest (Section 480.5 of the California Revenue and Taxation Code).
Section 2.02: Responsibilities of Real Estate Services Group
The Real Estate Services Group (RESG) in the Office of the President is responsible for policy administration, and review of all non-standard form lease documents and all lease documents outside the authority of the campus/laboratory. RESG coordinates lease review with other system-wide offices and assists campus and laboratory personnel in lease negotiations for lease of off-campus property for University uses and is the liaison between campus and laboratory real estate personnel and other Office of the President departments. RESG assesses the business risks of real estate documents based on the economic and programmatic aspects of the transactions as they effect the University, conformance with University policies, deviations from standard University lease covenants, critical negotiating points, and conformity to delegated authority. RESG is responsible for the negotiation of all Lease Purchases or Leases with Purchase Options. RESG is also responsible for the review, coordination, editing, and approval of all real estate related items submitted for Regental action.
RESG prepares needed system-wide financial analyses of lease contracts and maintains corporate data systems for consolidated management reporting of financial, physical, and other business terms of all lease transactions. RESG develops standard documents and procedural guides, maintains the University's Lease Administration Manual, and provides consultation and training to campuses and laboratories by sponsoring conferences for campus real estate personnel.
Section 2.03: Responsibilities of Coordination and Review
The Office of Coordination and Review has responsibility for the preparation of the President's agenda and schedule of Regent's meetings. Toward that end, C&R is the first dissemination point and the final review point within the Office of the President for Regents' items and materials before they are printed in final form and mailed to The Regents. C&R edits for substance, style, format, etc. and verifies coordination of all Regents' agenda items and materials Universitywide: from the campuses, Laboratories, and Office of the President. C&R then prepares and duplicates these materials in their final edited form, appropriate format, sequence, number of copies, etc., for presentation to The Regents.
Section 2.04: Responsibilities of General Counsel
The Office of the General Counsel's responsibilities include providing legal analysis and recommendations for structuring non-standard lease transactions and reviewing agreements submitted by RESG. The Office of the General Counsel, with RESG, develops standardized leasing forms, such as the Standard Form Lease Agreement and Standard Form Lease Amendment for use throughout the University. Further, the Office of the General Counsel provides review and consultation on other related legal questions and documents such as assignments of lease, attornment agreements, and licenses.
General Counsel attorneys are also available to negotiate with attorneys representing landlords and lenders. The Office of the General Counsel also reviews the Regents Item.
Campus counsel may approve a non-standard addendum when the local counsel has real estate expertise and/or the item is minor in nature.
Section 2.05: Responsibilities of Office of the Secretary of the Regents
Lease documents approved by The Regents are executed by the Secretary of the Regents. This procedure also applies when an original lease, approved by The Regents, contains language specifically giving the Secretary authority to approve amendments or ancillary documents. In this case, the amendment or ancillary document would be reviewed and approved by RESG and General Counsel, if appropriate, then forwarded to the Secretary's office for execution.
Section 2.06: Responsibilities of Risk Management
The Office of Risk Management (OPRM), within the Office of the President, is responsible for providing uniform interpretation, operation, and administration of the University's Risk Management Program. It manages the University's self-insurance programs, negotiates and purchases insurance, coordinates matters pertaining to loss control and occupational health, and resolves claims against the University.
OPRM provides standard-form insurance language for use in lease agreements and assists the Office of the President and campuses and laboratories in the development and review of alternate language. OPRM works in conjunction with the campuses to resolve matters related to contract language through Campus and Hospital Risk Managers and advises on the types of coverage available under the University's programs. OPRM serves as a resource and consultant to local offices in contract negotiations and negotiates directly with lessors and lessees upon request from RESG.
Certificates of insurance for coverage under the self-insurance programs required by lease agreements are issued by Campus and Hospital Risk Managers. Certificates for Office of the President leases and insurance programs are issued by OPRM.
Regents' items pertaining to leasing are directed to OPRM by RESG for review of matters pertaining to risk management, i.e. insurance, indemnification, and occupational health.
Section 2.07: Responsibilities of Planning & Design
Planning & Design, within the Office of the President, provides policy oversight for campus long range development plans and environmental compliance. The office oversees University compliance (including national laboratories) with the California Environmental Quality Act, National Environmental Policy Act, and related planning and environmental laws such as the Coastal Act and Historic Preservation Act. The office advises and assists campuses in the preparation of and revision of Long Range Development Plans (as required by the Standing Orders of the University) and all other physical planning issues. It is the office's responsibility to review environmental documentation for all CEQA actions requiring Regental approval.
Section 2.08: Responsibilities of Facilities Management and Construction
Facilities Management and Construction, within the Office of the President, is responsible for providing uniform interpretation and application of all laws, codes, rules, regulations, ordinances and standards concerning construction and management of facilities. State and local building codes, California State Law Title 24, California Health and Safety Code, National Fire Protection Association Standards, Federal Occupational Safety and Health Act, California Environmental Quality Act and the Americans with Disabilities Act must be analyzed and interpreted for their impact on lease activity and subsequently disseminated to the campuses. The unit enforces University Seismic Safety Policy and reviews tenant improvement packages at the request of RESG.
Section 2.09: Responsibilities of Other Associated Departments
From time to time the terms and conditions negotiated in a lease will necessitate review by other departments in the Office of the President.
Clinical Services Development - As referenced in Bylaw 12.7, Committee on Hospital Governance, for Regents Items requesting approval to lease space for a campus' Medical Center or for those leases containing affiliation agreements with medical institutions or other medical functionaries, RESG will request review and approval by the Clinical Services Development.
Office of University and External Relations - When a project involves a Project Planning Guide (PPG), it will be coordinated with the department of Policy Analysis and Capital Planning of the division of Office of University and External Relations.