COMMITTEE FOR VESSELS DONATED K035
Terms of Reference
PURPOSE:
To establish the University Boat Donations Committee (UBDC) which is
tasked to provide a systematic means to ensure proper acceptance,
maintenance and disposition of vessels donated to the University schools
or departments.
DEFINITIONS:
Vessel: Vessels of all types which are designed for use as conveyance on
or under water.
Membership UBDC: RSMAS Director of Development, Chairperson
Associate Dean of RSMAS
RSMAS Manager, Database and Financial Affairs (MDFA)
RSMAS Manager, Facilities and Technical Services
(MFTS)
Chairman, Ship Operations Subcommittee of RSMAS School
Council
University Real Estate Director (ex officio)
I. When an opportunity to receive a vessel occurs that has been defined
by the owner's written intention to consider donation, it will be the
responsibility of the head of the University component that is the
possible beneficiary of the donation to notify the chairperson of the
UBDC. Upon such notification, it will be the responsibility of the
Committee Chairperson to convene the UBDC (three committee members
will constitute a quorum) and evaluate the potential donation and
prepare a written report. The written report will be submitted to
the head of the University component that is the potential
beneficiary of the gift. Where a consensus does not exist on the
recommended course of action, the Chairperson will forward the
written recommendations of both minority and majority members of the
committee.
For every proposed donation, the report must contain:
A. Estimated or BUC Book range of values of the vessel.
B. Projected brokerage fees for sale and acceptance of vessel.
C. Projected annual costs of ownership, including dockage,
insurance, transfer of title and registration, interest, upkeep
and operating costs.
D. Projected costs of repair.
E. Estimated period of retention of vessel.
The report must compare the sum of above items B, C and D with 75% of
item A. Unless the difference between these two quantities is at
least $5,000, acceptance is not to be recommended. All vessels
proposed for donation to the University shall be examined and/or
surveyed prior to acceptance.
All prospective donations with an estimated value of $25,000 or more
must be surveyed (appraised) by at least one University selected
independent professional marine surveyor and a representative of
RSMAS. The same independent surveyor will not be used for more than
three successive surveys. Vessels with an estimated value of less
than $25,000 must be examined and appraised by the RSMAS Manager,
Facilities and Technical Services. Such appraisals or estimates are
not to be communicated to the donor, but are used only for internal
valuation purposes. Vessels in this value range may also be surveyed
by a University selected independent professional marine surveyor.
All expenses related to this activity will be borne by the school or
department receiving the vessel, and all such expenses shall be
charged to the account established for the vessel.
Upon approval of a UBDC recommendation for acceptance, the head of
the University component that is the potential beneficiary of the
donation will sign the recommendation to be forwarded by the
chairperson of the UBDC to the University Gift Review Committee for
approval of the vessel. The recommendation will contain the economic
analysis of the consequences of acceptance of the donation.
It is anticipated that situations will occur where it is not possible
to follow procedures outlined herein because fewer than three
principals of the UBDC and/or the Dean of RSMAS are not available.
Under such circumstances, the remaining members of the UBDC will
undertake to follow the procedures listed herein. If the Dean of
RSMAS is unavailable, the Associate Dean or the senior available
division chairperson of RSMAS will make the necessary decisions.
II. Period of Retention
It shall be the policy of the University to divest itself of donated
vessels which are not appropriate for a general research use as
rapidly as possible. In general, when a donated vessel has been
accepted and has been found to be inappropriate for research
purposes, the UBDC will submit a disposition plan to the Senior Vice
President for Business & Finance or his/her designee recommending
when the vessel should be put up for sale. Unless unusual
circumstances exist, all vessels in this category will be disposed of
in less than 12 months.
III. Maintenance
The UBDC will decide, after consideration of the recommendations of
the RSMAS Manager, Facilities and Technical Services, where and how
the vessel is to be stored (i.e., dry indoor storage, covered wet
storage, outside wet storage or dry outdoor storage). RSMAS Manager,
Facilities Technical Services, will be responsible for supervising
the maintenance of all vessels and will make recommendations to the
UBDC for all expenses in excess of $1,000 for approval. All such
charges, including pro rata shares of maintenance personnel salaries,
shall be charged to the account established for each vessel.
A quarterly report will be provided to the head of the University
component that is the beneficiary of the donated vessel and the
University Real Estate Director concerning the material condition of
all vessels in the category.
IV. Use
All requests for use of donated vessels will be submitted in writing
to the UBDC for consideration and action. Requests shall be limited
to University programs and shall include funds for operation and
maintenance costs and personnel responsibilities pertinent to
operation and maintenance of the vessel while in use.
Charters, either long or short term, shall be executed on the
standard University charter agreement as approved by the University's
legal counsel. Recommendations for proposed charters shall be made
to the Associate Vice President for Business Services by the Dean of
RSMAS for final business and insurance review and for execution of
the charter agreement.
V. Disposition
The UBDC shall establish the advertised selling price for each vessel
based on surveys, BUC's Boat Directory and the recommendations of the
RSMAS Manager, Facilities and Technical Services. They shall also
establish the minimum acceptable price for each vessel, prior to the
time it is advertised for sale. Any offer received below the minimum
established price shall be referred to the Vice President for Real
Estate or the Associate Vice President for Business Services for
decision, except for vessels of $5,000 or less value, and then this
decision may be made by the head of the University component that
received the donation.
A reimbursement for actual expenses with fully loaded overhead will
be made, as appropriate, to the school's or department's University
account in which the expenses were incurred, or to account 898744 -
RSMAS Building and Equipment Fund.
VI. Staff Responsibilities
A. RSMAS Manager, Facilities and Technical Services
1. On-site inspection of proposed donation, including
arrangements for outside surveys as required.
2. Recommendations to UBDC following above.
3. Arrangements for pickup and delivery of donations.
4. Recommendation of storage facility for donation.
5. Supervise upkeep and maintenance.
6. Assist in preparation of listing for sale of donation.
7. In conjunction with the appropriate Development officer,
handle inquiries from brokers or direct buyers of donated
yachts.
8. Present all offers with recommendations to UBDC.
9. Arrange trial runs and surveys for possible sales. Notify
Risk Management and Real Estate offices of date for trial
run.
10. Arrange for inventory and condition survey prior to any
charters.
B. RSMAS Development Officer
1. Keep records of contacts with prospective donors, including
tax information, letters of acknowledgement/thanks.
2. Prepare memo for signature of Dean of RSMAS or of the head
of the University component that is the beneficiary of the
donation to be forwarded to University Gift Review
Committee for acceptance approval of vessels offered to the
University as gifts.
3. Alert Risk Management office via phone when the gift of
vessel has been approved by Gift Review Committee.
4. Receive deed of gift, title, registration or U.S. Coast
Guard documentation from donor (donor's release letter to
U.S. Coast Guard in latter case) and transmit original
documents to Real Estate office.
5. Establish account for donation via the school's or
department's business officer, and inform Real Estate
office of account numbers.
6. Prepare a gift transmittal memo to the Deans and Vice
President for Real Estate or Associate Vice President for
Business Services via Vice President, Development, advising
acceptance of vessel and receipt of documentation.
Appropriate copies will be sent to the Controller's Office,
the Development Affairs office, the UBDC, the Real Estate
office and the Risk Management office.
7. Maintain complete records on all vessels given to the
University, including documentation, correspondence, memos,
surveyors' reports, appraisals, all expenses charged to
each vessel, sales agreements, etc.
8. Maintain and update brokerage listings and handle all
mailings of yachts listed for sale; forward a copy of any
advertisement or mailing (specifications) to Real Estate
office.
9. Route all checks on sale/charters via Business Services
office and Real Estate manager.
C. Real Estate Director
1. Maintain records of all expenditures against all donated
vessels and report semi-annually to the Vice President for
Real Estate and the RSMAS business officer.
2. Process all titles, registrations, and documents received
with donated vessel to ensure proper transfer to the
University.
3. Coordinate with Risk Manager to assure that vessel is
properly insured on day of receipt. Check insurance
coverage any time donated vessel is chartered or needed for
trial run.
4. Maintain inventory of all vessels and yachts held for sale
as to status, ie: for sale at given price, advertised for
sale on given date, being held pending listing for sale,
for charter only, etc. Update and distribute list to UBDC
and to the Risk Manager.
5. Prepare bill of sale and appropriate documents necessary
for completing sales transaction to purchaser when sale is
approved. Prepare charter party agreements as required.
Have all foregoing documents properly executed by
appropriate University officials.
6. Maintain record of all sales for archive files. Report
gross proceeds of every sale to the UBDC, Vice President
for Real Estate, and Manager of Database and Financial
Planning (as appropriate), indicating separately all
expenses, including finder's fees, brokerage commissions,
applied salaries, dockage, survey costs, etc.
7. Notify RSMAS prior to May 15 and November 15 each year to
obtain financial information from RSMAS Manager, Database
and Financial Affairs.
