Regents Policy 8103: Policy on Capital Project Matters

Approved March 15, 2018

POLICY SUMMARY/BACKGROUND
The Finance and Capital Strategies Committee (Committee) of the Board of Regents (Board) provides strategic direction and oversight and makes recommendations to the Board on, among other things, matters pertaining to the University’s capital projects including capital budget requests, real estate transactions, and Long Range Development Plans (LRDP). This Policy on Capital Project Matters (Policy) is intended to work in conjunction with Bylaw 22.2 (d), which reserves to the Board the authority to approve or take action on certain capital project matters.

As amended on March 16, 2017, the Charter of the Finance and Capital Strategies Committee charges the Committee with reviewing and making recommendations to the Board regarding, among other things: capital planning and capital budget requests; state budget requests for capital; the Capital Financial Plan; sales, purchases, leases, and licenses of real estate and real property interests acquired or used for University-related purposes; Physical Design Frameworks; project design; and Long Range Development Plans (collectively, Capital Project Matters).

POLICY TEXT

For this Policy, University-related purposes means real estate and real property interests acquired for or used by the University for teaching, research, or public service. It specifically excludes real estate and real property interests held for investment purposes and managed by the Chief Investment Officer. All significant Capital Project Matters are reserved to the Committee and Board under Bylaw 22.2 (d). However, in the interest of operational efficiency of the University, the authority to approve or act on certain Capital Project Matters is deemed best exercised by the President and designees rather than the Board or its Committees. As provided by the California Environmental Quality Act (CEQA), the certification or adoption of environmental documents is undertaken at the level of the associated project approval. A project cannot be divided into separate phases for independent consideration. Phased work includes, but is not limited to, using the same contractor to perform similar modifications on multiple buildings, performing multiple projects over a period of years on the same building, constructing multiple buildings in a complex or separating work into several projects. In such cases, separate projects or phases will be considered part of the same budget, subject to the stated budget thresholds below. The Regents hereby delegate authority for certain Capital Project Matters and ancillary actions to the President of the University, as follows:


Transaction Type President's Maximum Authority

1.

Acquisition of real property consistent
with the approved Capital Financial Plan. Acceptance of gifts of real property
Approve transactions and execute agreements related to
acquisitions and gifts of real property valued up to and
including $70 million

2.

Acquisition of real property not consistent with the approved Capital Financial Plan
Approve transactions and execute agreements related to
acquisitions of real property valued
up to and including $20 million
3.
Budget or design for capital projects consistent with the approved Capital Financial Plan, accepted Physical Design Framework (PhDF), and approved Long Range Development Plan (LRDP). Consistency with PhDF and LRDP not required for off-campus projects for which there is no applicable PhDF or LRDP
Approve budget and design for capital projects up to and including $70 million
4.
Budget or design for capital projects not consistent with the approved  Capital Financial Plan or accepted Physical Design Framework (PhDF), but consistent with the approved Long Range Development Plan (LRDP).
Consistency with PhDF and LRDP not required for off-campus projects for which there is no applicable PhDF or LRDP
Approve budget and design for capital projects up to and
including $20 million
5.
Augmentation and scope change for acquisition of real property and budget for capital projects -original
approval by the President
Approve cumulative augmentations and scope changes up to $20 million, but in no event exceeding a total project cost (as augmented) of $70 million
6.
Augmentation and scope changes for acquisition of real property and budget for capital projects - original
approval by the Regents
Approve cumulative augmentations  and scope changes up to 15% of the original approval, but in no event exceeding a total augmentation of $20 million
7. Dispositions of real property
Approve transactions and execute disposition agreements related to real property valued up to and including $70 million
8.
Leases (including ground leases) and, if necessary, to the extent applicable, design of buildings developed pursuant to a lease
Approve and execute leases that:
(i) have a term of up to and including 20 years, excluding options when UC is Tenant but including options when UC is Landlord, and
(ii) have an initial base annual consideration up to and including $5 million. 
Approve design for buildings developed pursuant to such leases
9. Licenses
Approve and execute licenses pertaining to capital project matters
10.
Reimbursement agreements and stipend agreements ancillary to real
property transactions
Approve and execute such agreements where the University assumes an obligation to pay up to a cost of and including $20 million
11.
Third Party Indemnification (where the University assumes liability for
conduct of persons other than
University officers, agents, employees, students, invitees, and
guests)
In consultation with the General Counsel, approve and execute indemnification provisions in favor of state or federal permitting agencies where providing indemnification is a necessary condition to secure the relevant permit in order to proceed with the capital project matter
12.
Other Real Estate matters
Approve and execute: easements; rights of way; covenants, conditions, and restrictions; encumbrances; mineral rights; geothermal resources; documents required under the Subdivision Map Act or with respect to Subdivided Lands Act; miscellaneous real property documents; and other contracts and ancillary documents as necessary to implement real estate transactions
13.
Minor Long Range Development
Plan (LRDP) amendments
Approve Minor LRDP amendments. Minor LRDP amendments are defined as those that modify but preserve the fundamental planning principles and objectives of the previously adopted LRDP, and are limited to:
(i) modifying up to and including 30,000 gross square feet of allocated building space,
(ii)changing land use boundaries or designations for up to and including 4 acres of land, or
(iii) administrative corrections or changes
14.
Minor Physical Design Framework (PhDF) amendments
Accept Minor PhDF amendments. Minor PhDF amendments are defined as those that modify but preserve the fundamental planning principles and
objectives of the previously adopted PhDF
15.
Modification of previously adopted
or certified environmental document pursuant to the California Environmental Quality Act (CEQA)
Modify an environmental document certified or adopted by the Regents pursuant to CEQA so long as the modification does not result in new or increased significant environmental impacts
16.
Capital project matters approved by
the Regents
In consultation with the General Counsel, execute documents necessary in connection with Regents-approved capital project matters

COMPLIANCE/DELEGATION
Compliance with this Policy, including the University’s compliance with CEQA, shall be administered by the Office of the Chief Financial Officer (or successor), or as otherwise determined by the President. Authority for the negotiation, approval, and execution ofcertain Capital Project Matters may be further delegated to other University officials atthe President’s discretion.

NO RIGHT OF ACTION
This policy is not intended to, and does not, create any right or benefit, substantive orprocedural, enforceable at law or in equity by any party against the University ofCalifornia, or its Board of Regents, individual Regents, officers, employees, or agents.
PROCEDURES AND RELATED DOCUMENTS
N/A

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