Administrative Policies and Procedures Manual - Policy 6040: Commercially Owned and Operated Equipment on University Property

Date Originally Issued: 07-01-1994
Revised: 07-01-2003, 08-01-2006, 12-09-2020

Authorized by RPM 8.1 ("Special Use of University Facilities")

Process Owner: Associate Vice President for Institutional Support Services

1. General

The University may rent space to external contractors who wish to install and operate tenant owned unstaffed equipment that will provide service and convenience to members of the University community. Such equipment includes, but is not limited to, automatic teller machines, pay telephones, washing machines, dryers, postal vending machines, and distribution racks for publications. This policy does not apply to equipment leased and operated by the University. Outdoor vendors providing other services are subject to UAP 2160 ("Outdoor Vendors").

2. Authority

The Director of University Business Services must approve, in advance, all leases, permits, use agreements, and licenses (hereafter referred to as leases). Business Services should consult with the offices of University Facility Planning Department, University Real Estate, University Purchasing Department, and University Counsel, as necessary. The Executive Vice President and Chief Executive Officer for Health Sciences should be consulted for leases affecting the Medical Center.

3. Procurement

When the Director of Business Services determines there is a need for unstaffed equipment, the University will follow the procurement code in selecting contractors. Leases shall be awarded to contractors according to the procurement process.

3.1. Evaluation Criteria

After the solicitation process is completed, the Director of Business Services will evaluate all contractor requests using the following factors.

3.1.1. Purpose

The purpose of the proposed equipment must be to provide service and convenience to students or other members of the University community.

3.1.2. Location

The proposed location of the equipment will be based on the following factors:  

• The location must be convenient for students and other University users.
• The equipment must not interfere with normal traffic patterns.
• Security and lighting must be adequate.
• The equipment must be easily accessible to all users, including the disabled.
• The location of the equipment must not adversely affect the beauty and tranquility of the University environment.

• The equipment will not interfere with University operations normally conducted in that location.

In the case of mobile equipment, all locations must be identified in the request to the Director of Business Services.

3.1.3. Placement of Equipment

The placement of equipment must comply with University policies and other applicable regulations and requirements. The size of the equipment must be appropriate to the location and the service being provided. This applies to equipment integrated into a building, equipment that does not require alterations to a building, or mobile equipment outside a building. Proposed alterations to University property must be approved by the Facility Planning Department in consultation with the University Facilities Management Department and the University Campus Planning Committee when necessary.

The University reserves the right to determine the location of the equipment; size of the equipment; number of items in a location; and installation, appearance, and upkeep standards.

4. Lease Terms and Conditions

Although specific lease provisions will vary according to the type of equipment, the following general terms and conditions apply to all leases. Exceptions to these conditions must be in the best interest of the University and approved by the Senior Vice President for Finance and Administration.

4.1. Alterations

The tenant is responsible for all costs incurred in altering University property for the purpose of installing the equipment. When the lease expires or is terminated, the tenant is responsible for restoring the property to its original condition.

4.2. Insurance

The tenant must maintain adequate insurance as determined by the Director of the Purchasing Department.

4.3. Building Permit or Other Approval

The tenant is responsible for obtaining any required building permits or other governmental approval, at the tenant's expense.

4.4. Rental Rate

The rental rate paid to the University may be a fixed fee, or it may be based on volume usage (a per-transaction fee scale), as determined by the University.

5. Revenue

Revenues derived from leases are institutional, rather than departmental. Auxiliary operations and student organizations may be allowed to keep portion of the revenue. The Senior Vice President for Finance and Administration will determine the distribution of revenue from leases.