Chapter 15-600: Leases

The authority delegated to Chancellors, and subsequently to campus Contract and Grant Officers, to solicit and accept or execute certain extramural grants and contracts, does not include authority to sign agreements or contracts for leases, licenses, facilities construction or acquisition. These authorities are provided to Chancellors via various separate delegations and are further delegated within campuses to the offices responsible for these matters.

15-610 Equipment Leases

Rental and lease costs for equipment and other property are covered in Chapter 7, Section 7-214 of this Manual. Procedures for accounting for and recording property acquired via conditional sales contracts or lease-with-purchase options are detailed in BUS-29 Section IV. C. and Accounting Manual L-217-11 Accounting and Reporting for Leases and Installment Purchase Contracts.

In accordance with 2 CFR Section 215.44(a)(2) (formerly OMB Circular A-110), the University purchasing system must provide that where appropriate, an analysis is made of lease and purchase alternatives to determine

which would be the most economical and practical procurement....

Generally, this means that if the total lease cost to be charged to the sponsor(s) is more than the purchase price, the equipment should be purchased outright rather than rented (all other things being equal).

15-620 Real Property Leases

Under Bylaw 21.4 (q), the Chief Investment Officer is authorized to approve and execute on behalf of the Corporation contracts, real property rental agreements, and other documents pertaining to gifted real property held for investment purposes provided that base annual rent shall not exceed $500,000 for the initial year, and that, when the rent is aggregated over the lease term, the total base rent will not exceed $10 million.

Standing Order 100.4(cc) provides the President authority to approve and execute “real property rental agreements, leases, ground leases and other documents pertaining to the use of real property forUniversity-related purposes with a term of not more than twenty years.” Standing Order 100.4(ff)authorizes the President to:

….approve and execute licenses, easements, and rights-of-way with respect to (1) real property used or to be used for University-related purposes or (2) University-related real property to be used by others.

The President has delegated authority to Chancellors, LBNL Director, and the Vice President--Agriculture and Natural Resources to execute licenses for use of real property and University- related real property rental agreements (leases) that do not exceed ten years or $500,000 in the initial year.

Primary University guidance relating to the lease/purchase of, and construction on, real property is contained in the University Facilities Manual. When a lease agreement must be approved by The Regents before execution, the Facilities Manual guidelines should be followed. See also Chapter 7-214 for information on rental and lease costs allocable to sponsored agreements.