Final - University & ASUCD Agreement on US Bank

8/9/2019 Final - University & ASUCD Agreement on US Bank

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An Agreement between the Division of Student Affairs and ASUCDConcerning the US Bank Proposed Corporate Partnership

And Related Corporate Sponsorship Activity

I. Overview

The university, through its division of Student Affairs, has endeavored to create amulti-dimensional partnership between itself and US Bank, as a means ofsecuring financial revenues for the campus (and student services specifically) ina manner which is philosophically and operationally viable. This effort began in2005 with the creation of a Request-For-Proposal (RFP), conducted through theuniversitys Business Contracts office. The RFP invited multiple banking partnersto submit a proposal for financial services on the campus. From that competitiveprocess, US Bank was selected as the most viable potential partner and contract

negotiations and consultations have been on-going since that time. Theseconsultations have included oversight and approval by the universitysCommercial Activities Group, and active involvement by the Campus Unions andRecreation Board (CURB), a student-majority committee with oversight of thestudent unions and related services, as well as the Presidents Office of ASUCD.The principal elements of the partnership include:

The creation of a branch bank in the Memorial Union;

A preferred placement of ATM machines on campus (though other banksand credit unions will also continue to be present on the campus);

Advertisements and signage featuring US Bank as a sponsor at selected

facilities and events; and Placement of the US Bank mark on student and employee identification

cards, with capacity for use of the card (at the users sole choice) as adebit card.

In exchange for these sponsorship benefits, the university will receive aminimum, guaranteed annual payment of $176,000 each year, for a period of tenyears. The annual payment has the ability to escalate over the term of theagreement, based upon the number of banking account activations that occur.The financial and operational terms of the partnership, including both thelimitations on the banks activities and the universitys ability and discretion in

managing the agreement, are delineated in the contract.

II. Good-Faith Agreement between Student Affairs and ASUCD

Both the university and ASUCD acknowledge that entering into any corporatesponsorship requires that an acceptable balance be achieved in appropriatelymanaging philosophic concerns with financial advantage. Both parties enter intothis good-faith agreement seeking to achieve this balance, fully recognizing the

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critical role of students as both partners and advocates in this enterprise. Bothparties also recognize ASUCDs role as the governing body and representative ofthe undergraduate student body, and acknowledge the additional roles of otherstudent governance groups, including CURB, as consultative bodies.

Further, both parties agree that this corporate sponsorship agreement has beencreated as a means of advantaging student services and that such partnershipsare intended to be philosophically appropriate, compliant with university policy,and based upon on-going consultation with students.

III. Specific Terms and Understandings

The following specific conditions are agreed to as understandings internal to theuniversity and are fully consistent with the contractual agreement between theuniversity and US Bank. They include:

A. Use of Minimum Guaranteed Annual Payment

Both parties acknowledge that specific benefits (hereinafter referred to asassets) are guaranteed in the contract to US Bank. These include suchitems as ATM or branch bank locations, signage, or sponsorship exposurein university facilities and at selected events. Both parties acknowledgethat distribution of a portion of the annual revenues to the university shallbe fairly and appropriately distributed to those campus entities that areresponsible for these assets.

Both parties also agree that distribution of a portion of the annual

revenues to the university shall also be fairly and appropriately distributedto a variety of student services, particularly as a means of ensuring theircontinued or enhanced service to students during a time of budgetaryreduction.

The specific allocation of revenues from the minimum annual payment of$176,000 shall include compensation for the required assets specified inthe contract, for a total of $72,500, as follows:

o $ 5,000 per year: Campus Recreation

o $15,000 per year: Memorial Union and Auxiliary Services

o $17,500 per year: Intercollegiate Athleticso $50,000 per year: Fountain and Vending Fund maintenance and

operation of fountain and vending spaces and partnerships

The remaining $88,500 of revenue from the minimum annual paymentshall be allocated to a variety of student services at the discretion of theVice Chancellor Student Affairs. The Vice Chancellor shall utilize the

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following criteria to guide the allocation process, such that funds wouldprimarily be awarded to:

o Student service departments whose operating budgets havethe least financial flexibility, diversity of fund sources or scope.

(e.g., units whose annual operating budgets are under $500,000,non-auxiliary units, units which generate less than $50,000 annuallyin fund raising);

o Student service departments whose mission focuses

primarily on campus climate and community development (e.g.,student life departments, departments that focus primarily onproviding services to under-represented or under-servedcommunities); and

o Student service departments whose mission focuses

primarily on providing direct academic support to students in waysthat focus on academic retention (e.g., tutoring or advising services,mentoring programs)

In addition, the Vice Chancellor shall consult with the CorporatePartnership Advisory Group (described in Section III.E. of this document),as well as other student governance groups (particularly the StudentServices and Fees Administrative Advisory Committee) regarding theannual allocation of these funds.

B. Use of Escalated Annual Payment

Both parties acknowledge that the annual payment to the university mayincrease above the guaranteed minimum payment, over the term of thecontract, based upon the number of banking accounts that are activated.The specific terms of the rate of escalation are defined in the contract. Asbanking account activations are a function of consumer behavior, theprobability, eventuality and timing of any increases cannot be exactlypredicted.

If and as such escalations occur, both parties conceptually agree thatdistribution of a portion of the escalated annual payment shall be

distributed to those campus entities that are responsible for contractassets. They also conceptually agree that a portion of the escalatedannual payment shall be distributed to a variety of student services,according to the criteria indicated in Section III.A. Based upon this good-faith understanding, funds are intended to be distributed as follow:

The first $37,500 of any escalated funds shall be distributed to the assetholders as the total valued level of compensation originally identified for

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the specified assets. This is equivalent to additional funding above theguaranteed minimum level to include:

o $ 5,000 per year: Campus Recreation

o $15,000 per year: Memorial Union and Auxiliary Services

o $17,500 per year: Intercollegiate Athletics

Additional escalated funds up to a total annual payment of $300,000 shallbe distributed equally as follow:

o 50% of all funds to a variety of student services, according to the

criteria in Section III.A.; ando 50% of all funds to the Fountain and Vending Fund, for use in the

maintenance and development of student lounges and vendingareas.

Escalated funds beyond a total annual payment of $300,000 shall bedistributed at the discretion of the Vice Chancellor Student Affairs, forpurposes which are supportive of student services and of direct benefit tostudents. The Vice Chancellor Student Affairs shall consult with theCorporate Partnership Advisory Group, as well as with other studentgovernance entities as previously indicated, regarding the use of thesefunds.

C. Recognition of Corporate Involvement and Sponsorship

Both parties acknowledge that in addition to the level of corporate

sponsorship recognition present on identified assets (facility signage,ATMs, etc.), sponsorship recognition associated with programs, events orinitiatives may be possible or advantageous, and is managed at thediscretion of the university. As part of this discretion, both parties agreethat the dynamic nature of the university environment and the politicalsensitivities of student constituencies influence the appropriateness ofincluding corporate marks or language on program materials. As such,Student Affairs agrees to the following principles:

o It will display corporate marks or sponsorship language on assets

defined and required in Exhibit A of the contract;

o For any use of US Bank marks or recognition language onprograms, events or initiatives beyond those required in Exhibit A, itwill seek the advice and counsel of Student Affairs departmentdirectors, whose programs are recipients of US Bank funding. Thisconsultation is intended to ensure the appropriateness or type ofsponsorship recognition to be included. It is understood that directors

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will, in turn, consult with student users or student employees regardingsuch representations; and

o It will consult with the Corporate Sponsorship Advisory Committeeregarding the overall conceptual use of US Bank marks or language

generally on student service programs, events or initiatives.

D. Corporate Sponsorship Advisory Committee

Both parties agree that on-going consultation with student constituenciesis essential both to the success of this partnership and to other potentialcorporate relationships that may be considered in the future. Suchconsultations are in addition to any required by university policy or practice(e.g., Commercial Activities Group) and are intended to reflect the uniqueperspectives of students. As such, Student Affairs will work with severalexisting student governance entities to form a Corporate Sponsorship

Advisory Committee, which will provide advice and counsel regardingcorporate sponsorship principles, use of funds, social responsibility,corporate recognition, and other related topics. Consistent with otherstudent governance entities, the group will be advisory to the ViceChancellor Student Affairs. It shall be a student-majority committee,composed of representatives from the following entities:

o Associated Students, UC Davis;

o Graduate Student Association;

o Law Student Association;

o Student Services and Fees Administrative Advisory Committee;o Campus Unions and Recreation Board; and

o Commercial Activities Group (liaison)

F. Student Meeting Space

As part of the contract, US Bank will operate a smallbranch bank within the Memorial Union, thus requiring the relocation offunctions currently met by the existing East Conference Room. Bothparties agree that one of the central purposes of the student union is to

provide space for student meetings and programs and want to ensure thatadequate replacement space for the East Conference Room is provided.To that end, both parties agree to work together to assess student usagetrends and needs regarding student meeting rooms, lounges, and informalareas, and, to partner in providing additional meeting room opportunitiesboth within the student unions and across the campus.

Accordingly, both parties agree to:

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o Evaluate data regarding studentmeeting room usage rates for meeting rooms and lounges and developa range of strategies for maximizing usage;

o Host a series of student focus groupsand planning sessions with architects regarding meeting space designoptions for the Memorial Union Expansion Project, Phase I. Suchsessions will occur between March and June, 2009; and

o Ensure that future planning for theMemorial Union Expansion Project, Phase II (current east wing of thefacility) include student consultation (as well as representatives fromany existing student services located in this area) regarding thepotential for including student meeting, lounge and service space in therenovation.

Additionally, while not a requirement of the contract, Student Affairs willwork with US Bank to encourage the employment of UC Davis students atthe branch bank.

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Documents

Final - University & ASUCD Agreement on US Bank