Board of Visitors minutes :: October 4, 2003 :: University of Virginia Library

Chapters 995 and 933 of the 1996 Virginia Acts of Assembly (House Bill No. 884 and Senate Bill No. 389, respectively) provide that, subject to certain conditions established in subsection 2 of § 23-77.4 of the legislation, operating leases entered into by the University of Virginia on behalf of the University of Virginia Medical Center shall be exempt from § 2.2-1149 of the Code of Virginia and from any rules, regulations and guidelines of the Commonwealth's Division of Engineering and Buildings in relation to leases of real property from others. Contracts entered into by the University on behalf of the Medical Center are also exempted from § § 2.2-1155 and 23-4.1 of the Code of Virginia in relation to leases of Medical Center real or personal property to others. Exercise of this autonomy in entering into operating leases is to be in compliance with policies, procedures and guidelines adopted by the Board of Visitors which are to direct that competition be sought to the maximum practical degree, that all costs of occupancy are to be considered, and that the use of the space to be leased is necessary and is efficiently planned. Subsection C of § 4-5.08 of the 1996-98 Appropriation Act delegates to the University as a whole the authority granted the Governor and the Commonwealth's Department of General Services ("DGS") in § 2.2- 1149 of the Code of Virginia regarding operating leases for the University other than the Medical Center. This latter delegation supplants the supervisory role of DGS which is established pursuant to § 2.2-1149, the provisions of which have been implemented by policies, procedures and guidelines promulgated by DGS pursuant to this section of the Code of Virginia. This authority has since been continued through 2002- 04 by subsequent legislative action. This latter delegation of authority is subject to certain conditions, the foremost of which is that the Board of Visitors must develop and submit policies, procedures and guidelines governing operating leases by the University for approval by the Secretaries of Finance and Administration by September 1, 1996. More recently § 4-5.08 of the 2003 Appropriation Act extended the delegated authority approved in § 4-5.08 of the 1996 Appropriation Act to include 1) leases of University real or personal property to others and 2) capital leases to the University as a whole provided that such capital leases have been specifically authorized by the Governor

or the General Assembly pursuant to the Appropriation Act and have been reviewed and approved by the Treasury Board.

The following provisions of this policy statement constitute the adopted Board of Visitors policies, procedures and guidelines required by the enabling legislation regarding operating and capital leases entered into by the University on behalf of the Medical Center or on behalf of any other part of the University.