Real Estate

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                     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.