Property (Real)

Effective Date: 12/15/00

Policy Statement 3: Rental of Space To/From the University


All Funds

All University departments must follow the policies outlined below when renting off-campus space, whether rental payment is to be made from State Funds, Contract and Grant Funds, or any other funds under the custody and control of the University.


Use of Overhead Funds for Rent

When a department has been awarded a grant which pays the on-campus overhead rate and the department anticipates the use of Overhead Funds to cover the rent, a written request to provide Overhead Funds for this purpose must be transmitted through the appropriate channels (i.e. Dean, Vice Chancellor and ultimately to the Vice Chancellor for Administration and Finance). If the request is approved, the Vice Chancellor for Administration and Finance notifies the Comptroller of approval, the Comptroller notifies the AVCAF - Business Services and provides the appropriate account number for the disbursement of the funds.


Additional Space

Any department requiring additional space should first determine through its regular administrative channels (through department head, dean, etc.), whether University owned space is available. To rent space, when a University-owned space is not available, the department completes a "Lease Request Form" (obtained from the AVCAF - Business Services) and submits the completed form to the AVCAF - Business Services.


Property Department

All requests for the rental of space, regardless of the source of funding must be referred to the AVCAF - Business Services, the only University section delegated the responsibility for negotiating for off-campus rental space.


Commitments

In cooperation with the department requesting space, the AVCAF - Business Services will locate space and determine rental costs. The Department may explore rental possibilities but must not make or imply any commitment. Commitments can be made only by the AVCAF - Business Services after approval has been received from the appropriate University board(s) and the Governor and Council of State as necessary.

When space satisfactory to the requesting department is located, the following steps are necessary to complete the leasing:


$5,000 or Less; Lease 3 Years or Less

In those cases where the annual rental rate is $5,000 or less, and the duration of the lease is three years or less, the AVCAF - Business Services will prepare the lease agreement and secure the signatures of the Lessor and of the Vice Chancellor for Administration and Finance, to whom this authority has been delegated.


$5,001-$25,000; Lease not to exceed 3 Years

In those cases where the annual rate is more than $5,001 but not more than $25,000 and the duration of the lease shall not exceed three (3) years, the AVCAF - Business Services will prepare and submit the necessary Department of Administration forms, and secure the approvals of the Vice Chancellor for Administration and Finance, the Chancellor, and the Department of Administration. A State Property Officer will execute the lease.


More than $25,000; Lease exceeding 3 Years

In most cases where the annual rental rate is more than $25,000 and/or the duration of the lease is more than three years (in accordance with G.S. 146-25.1), the requesting department, the AVCAF - Business Services and the University's Facilities Planner will prepare a set of specifications detailing the space requirements. These will be reviewed by the State Property Office after which the need for space is advertised in the local newspaper for five consecutive days, giving a specific cut-off date for the receipt of bids. The bid receipt date must be at least seven days after the last day the ad appears in the newspaper. The State Property Office and the AVCAF - Business Services will inspect the spaces offered by bidders, after which the space at the lowest rental rate, which meets the required specifications, will be selected for recommendation for approval. The AVCAF - Business Services obtains approval of the Vice Chancellor for Administration and Finance, the Chancellor, the Department of Administration, the Governor and Council of State; and in those instances where the annual rental rate exceeds $25,000, approval is obtained from the East Carolina University Board of Trustees.

In those instances where the annual rental exceeds $50,000, approval by the Board of Governors is also necessary. Because of the lengthy bidding process, a lead time of at least six months is needed before space can actually be occupied.


Service and Maintenance Work in Leased Facilities

No alterations or permanent improvements requiring the use of State/University funds or State employees are permitted in leased facilities. Service calls on University and state-owned equipment by authorized State/University personnel are permitted.

 

University Rental Property

In those few instances where the University rents property to others, all details and arrangements are handled by the AVCAF - Business Services.


Telecommunications Transmission Facilities

A. Purpose

To establish the criteria by which East Carolina University will evaluate and make decisions concerning the placement of private and public telecommunications transmission facilities (“TTFs”) on its campus.

The University has established a procedure to consider requests by commercial telecommunications firms (ex. cell towers) and by federal, state and local governments (ex. radio antennas in support of emergency services), hereby referred to as lessor.

Such placements shall not compromise the University’s primary mission to promote a safe and supportive environment for the academic success of every student and protect our facilities and resources in a responsible manner.

B. Policy

1) Site selections for TTFs must be approved by the appropriate Vice Chancellor, ECU Facilities Services, University Property Office, the Chancellor’s Executive Council and the Executive and Audit Committee of the ECU Board of Trustees.

2) All “new” TTFs (those in existence will be “grandfathered” for the term of their current lease agreement) will be handled in accordance with State property guidelines for the disposition of real property by lease.

3) Sites for commercial TTFs shall be awarded on a periodic basis via a Request for Proposal (RFP) process. Based on the highest and most responsive proposal, first selection of designated sites will be awarded. Co-location of two or more firms pre site shall be promoted, and a State of North Carolina lease agreement shall be used. Public site request shall be reviewed on a case by case basis at the discretion of the University. No bids are required.

4) No site shall be considered unless its impact to ECU facilities, campus appearance and security is reviewed and/or verified and approved. All TTFs placed on ECU property must have a detailed engineering review with drawings by an engineer licensed in the State of North Carolina and these drawings must be approved by ECU Facilities Engineering and Architectural Services.

5) All TTFs must satisfy all legal, safety, and health requirements set forth by federal, state and local codes and regulations.

6) All installations must be architecturally and aesthetically compatible with the designated site at the sole discretion of the University.

7) Installation and location shall not disrupt normal University activities as determined by the University.

8) The lessor shall bear all responsibility and related costs for liability and maintenance arising from the installation and its operation. This includes, but is not limited to, upkeep, repair and appearance of towers or antennas or related appurtenances with a provision for removal of all said structures at lease termination.

9) Lessor must provide demonstrated record at other similar site installations of compliance with contractual agreements and adherence to regulatory standards. In the event of the lessor’s bankruptcy or failure to adhere to the lease terms, a sufficient bond, escrow or indebtness insurance policy is required to be in effect for the term of the lease with up to date verification provided to the University. This is intended to cover any unpaid damages to site, cost of removing the TTFs and returning the site to its previous condition that the lessor may fail to honor.

10) Proceeds from the lease of State property must revert back to the State. Proceeds from the lease of auxiliary property must revert to the appropriate University auxiliary.

11) A standard State of North Carolina lease agreement shall govern all leases and take precedence in all matters. The lease shall require indemnification of the State, its agencies, employees, or agents by the lessor for any contingent liability arising from the operation of the TTFs.

12) The lessor may not access the property without sufficient prior notice and approval by the officially designated building administrator. All access to sites must have an ECU escort. Any after-hour access to the site will be charged an after-hour service rate for escort or assistance by University personnel.

13) The University reserves the right, prior to the conclusion of its stated term, to terminate the lease for cause including but not limited to inadequate maintenance and non-adherence to the terms of the lease agreement. Revisions by the lessor to the standard lease, except for changes required due to site specific concerns, shall not be accepted.

14) The University Property Officer shall be Contract Administrator on behalf of East Carolina University.

15) The lessor will be responsible for removing the installation and all appurtenances, returning the site to its previous condition at the conclusion of the lease.

C. Desired Outcome

Fair and consistent criteria with which to evaluate the appropriateness of placing TTFs on University property in a manner that does not detract from the primary mission of the University.

D. Implementation Summary

1) Site selection must be prior approved by the appropriate Vice Chancellor, ECU Facilities Services, University Property Office, the Chancellor’s Executive Council, and the Executive and Audit Committee of the ECU Board of Trustees.

2) All required approvals shall be obtained by the University Property Officer.

3) RFP shall be advertised, issued and awarded by the State Property Office.

4) ECU Facilities Engineering and Architectural must approve all engineering plans.

5) Leases shall be managed by the University Property Officer.