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Northern Arizona University
Purchasing Policy and Procedure
Off-campus Property Leases
POLICY:
LEASE JUSTIFICATION
University departments lease space off-campus when:
- appropriate on-campus space is not available,
-or-- the program must be located elsewhere in the state.
This policy and procedure assumes a department seeking a lease has received approval from its respective vice president/provost, that a lease is necessary under particular circumstances and the funding for the lease has been approved. It further assumes the department has decided a lease is a better option than buying a facility. Once these decisions are made, this policy and procedure outlines the steps to be taken to obtain the lease.
RESPONSIBILITIES OF THE USER DEPARTMENT
Real property leases are negotiated agreements and involve one or more real properties that have been selected by the user for their location and features.
The user department must fund the total costs of using off-campus space. The cost of the lease typically includes base rent, maintenance charges, insurance, utilities, and custodial services.
Costs that are not part of the lease include, but may not be limited to, telephones, computer lines, tenant improvements and remodeling, furniture, signage, and the capability to dial five digit internal telephone numbers and access Computer Services from an off-campus location.
Note also that many aspects of a lease are negotiable and that such things as maintenance, utilities, and custodial services may be provided by the landlord, by a University department, or by a third party.
Regardless of how these services are provided, the user department is responsible for paying for them. If such services are provided by the landlord, these costs will be reflected in the lease payment; if provided by a University department, they will be charged back to the user department; and if provided by a third party, the user department should take action to ensure all needed services are coordinated to meet the expected move-in date, following normal procurement procedures.
RESPONSIBILITIES OF Purchasing Services
Purchasing Services will assist the user to negotiate the lease with the prospective landlord. Purchasing will review and obtain the necessary approvals for the lease format and language, obtain the user department's approval of the lease terms, obtain necessary signatures and keep a copy of the lease on file. Purchasing will handle any lease questions or discrepancies, and act as a liaison between the user department and the landlord. A report of all property leases will be prepared annually and submitted to the Board of Regents.
Purchasing Services also handles the buying of goods and services associated with the lease. Thus, the purchase of furniture or the securing of a third party custodial contract is handled through Purchasing Services.
Purchasing Services reviews requisitions (RXs) submitted for support payments made to a landlord under a lease.
RESPONSIBILITIES OF FACILITIES MANAGEMENT
For on-campus facilities, Facilities Management provides building maintenance, grounds maintenance, building repair, utilities, and custodial service. Such services are not provided for off-campus leased space. In rare cases, a user department may be able to contract for grounds maintenance and custodial services from Facilities Management for lease facilities adjacent to the campus.
RESPONSIBILITIES OF TELECOMMUNICATIONS AND COMPUTING SERVICES
Telecommunications and Computer Services may be able to provide telephone access and access to administrative computer systems to off-campus leased space. The user department should contact Telecommunications and Computer Services to determine the feasibility and cost of providing such services to the proposed lease space.
PROCEDURE:
USER DEPARTMENT
- Obtain the approval of appropriate vice president/provost for the off-campus lease.
- Submit a requisition (RX) for the lease and for any associated utility or service requirements. The requisition for the lease must include a precise description of the property and the property location.
- Send a copy of the proposed contract (if one has been received) with reference to the RX document. If no contract has been received Purchasing Services will obtain/develop one.
Purchasing Services/USER
Negotiate final lease agreement.
Purchasing Services
- Obtain required contract signatures.
- Generate purchase orders following normal purchasing procedures.
- Send contract copies to lessor and user department.
- Report lease (as required) to Board of Regents.