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Final - University & ASUCD Agreement on US Bank

Final - University & ASUCD Agreement on US Bank

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Published by ericafperez

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Published by: ericafperez on Aug 04, 2010
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08/04/2010

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An Agreement between the Division of Student Affairs and ASUCDConcerning the US Bank Proposed Corporate PartnershipAnd 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 of securing 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 theuniversity’s 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 contractnegotiations and consultations have been on-going since that time. Theseconsultations have included oversight and approval by the university’sCommercial 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 President’s 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 selectedfacilities and events; and
Placement of the US Bank mark on student and employee identificationcards, with capacity for use of the card (at the user’s 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 bank’s activities and the university’s ability and discretion inmanaging 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 ASUCD’s role as the governing body and representative of the undergraduate student body, and acknowledge the additional roles of other student 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 as“assets”) 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 annualrevenues to the university shall also be fairly and appropriately distributedto a variety of student services, particularly as a means of ensuring their continued 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 Athletics
o
$50,000 per year: Fountain and Vending Fund – maintenance andoperation 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 focusesprimarily 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 focusesprimarily 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 bedistributed 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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