das leasing/property transfer workshop june 10, 2014

1

DAS Leasing/Property Transfer Workshop

June 10, 2014

2

DAS Leasing/Property TransferWorkshop

AGENDA

• INTRODUCTIONS • PURPOSE OF SESSION• REVIEW:

– CURRENT STATEWIDE CAPITAL AND FACILITIES PLAN (FACCAP) – 2013-2018 – REQUEST FOR SPACE PROCESS – INTERIM SPACE PROCESS – YOUR AGENCY’S RESPONSIBILITIES – GENERAL PARAMETERS REGARDING LEASES

• DISCUSS 4B27 • DISCUSS LEASE COMPLIANCE • DISCUSS ANNUAL INSPECTIONS of EMERGENCY EQUIPMENT AND FIRE SYSTEMS • DISCUSS STATE’S/AGENCIES RESPONSIBILITIES TO REPORT TO LESSORS • QUESTION/ANSWER

3


• PURPOSE OF SESSION IS;

• To ensure you are fully informed about the leasing/property transfer process• To reduce the amount of time the process takes

• To ensure all of us are in compliance with statutes• To help DAS meet your agencies’ real estate needs

4


REVIEW OF THE STATE FACILITY PLAN

PAUL HINSCH OFFICE OF POLICY AND MANAGEMENT

BUREAU OF ASSETS MANAGEMENT

5


• Review the OPM Spreadsheets submitted to each Agency

• For costs, use actual numbers for existing leases and estimates for new locations, estimates are as follows:

» Electric - $2.50 p.s.f.» Janitorial - $1.50 p.s.f.» Gas - $1.25 p.s.f.» R.E Taxes - $.25 p.s.f. above a base year» Security - $.25 p.s.f.» Window Cleaning - $.10 p.s.f.» Trash - $.10 p.s.f.» Plus Tenant Improvements (check with your leasing agent)

6


WHAT IS THE STATE FACILITY PLAN?• Mandated by CGS 4b-23 - “The state facility plan shall be used as an advisory

document for the leasing of property for use by state agencies and departments and for related capital projects.”

• Any State agency wishing to make use of leased space to meet its facility needs must be approved for the necessary square footage and costs under the Plan.

• If the agency is not approved for the necessary costs & square footage under the State Facility Plan, then the agency may not legally enter into a lease.

• OPM is required to prepare the State Facility Plan on a biennial basis. YOU WILL BE RECEIVING THE SPREAD SHEET THIS SUMMER DUE BY SEPTEMBER 1ST.

• The Plan goes into effect July 1st of each odd-numbered year and remains in effect until June 30th of the following odd-numbered year.

• PLEASE NOTE OPM HAS STATED THAT AGENCIES WILL BE ALLOWED 220 SQ.FT. PER PERSON (THIS IS A GENERAL TARGET TO BE USED WHEN RELOCATING TO NEW SPACE). IT IS PART OF THE NEW PLAN.

7


STATE FACILITY PLAN – AGENCY TIMELINE• Summer of even numbered years, agencies will receive an email of information from

OPM which includes: Spreadsheet of each existing lease Spreadsheet for new space requests Spreadsheet for building demolition,

• Agencies required to: Check information provided on the spreadsheets, and Correct any errors, and Provide any missing information and update request based on future projections.

• Agencies are required to submit the information to OPM, with a copy to DAS, September 1st of each even numbered year (THIS YEAR).

• Failure to submit the information will result in the agency not being approved for square footage in the State Facility Plan.

8


STATE FACILITY PLAN – REPORT TIMELINE• July-September (even numbered years) – Agencies prepare & submit requests for Plan to

OPM with a copy to DAS.• September – OPM works to ensure that submissions are complete & accurate.• October–January - Agency submissions are forwarded to OPM budget analyst who is

responsible for making cost and square footage recommendations in conjunction with preparation of the State Budget.

• February 15th (odd-numbered years) – OPM is required to submit to the State Properties Review Board (SPRB) a Proposed State Facility Plan.

• March 1st – SPRB required to makes recommendations regarding the Plan to OPM.• March 15th – OPM required to present the Plan to the General Assembly.• March-June – General Assembly passes an operating and capital budget• July 1st – State Facility Plan goes into effect.

9


STATE FACILITY PLAN – INTERIM SPACE REQUESTS• Interim Space Requests are required when:

An agency wishes to lease space, but is not approved for the space, or funds under the Plan, or

An agency wishes to lease space which is in excess of their Plan approval by 10% or more (including costs),

• Interim Space Requests consists of: Completed DAS Request for Space Form (RFS) Letter from agency head to the Secretary of OPM requesting approval of the Interim

Space Request• Once the Secretary has approved the Interim Space Request, DAS may then

begin the space acquisition process.• CGS 4b-23(k) states “No action may be taken by the state to lease…such

additional facilities unless the secretary makes such a determination.”• The forms are on the OPM website

10


STATE FACILITY PLAN – MAJOR PROBLEM AREAS• Failure to submit all of the required information.• Failure to submit information by the required deadlines.• Failure to account for all leased locations;

“Its an existing lease, so I don’t need to report it.” “We’ve been at this location for years so I don’t need to report it.” “My budget analyst knows we have this location so I don’t need to report it.” “I was approved for this space under the old Plan, so I don’t need to request it again.” “I won’t be using State funds to pay for the lease so I don’t need to submit it for the Plan.” “We started the leasing process when the old Plan was in effect.”

• State Facility Plans expire on June 30th of each odd-numbered year, and all approvals in those plans expire at the same time.

• Only those approvals in the current State Facility Plan, or approved Interim Space Requests, can legally be acted upon.

11


STATE FACILITY PLAN - MAJOR PROBLEM AREAS (continued)• Technically, Interim Space Requests expire when the Plan expires, however, DAS and

OPM have jointly agreed that Interim Space Request will be good for 18 months from the date of OPM approval. Data should still be entered in the Plan.

• It is possible that your space request will not be approved under the Plan or you will be approved for a lesser square footage and/or cost.

• In such cases, an Interim Space Request approval is still required before a lease can be entered into by an agency.

• There are no “special circumstances” or “really important” projects that negate State law.

• To legally enter into a lease your agency must either:– Be approved for the cost and square footage under the current State Facility Plan, or– Have an Interim Space Request that has been approved within the previous 18 months

• Providing information that is complete, accurate and on time is the best way to ensure that the leasing process proceeds as quickly as possible.

12


STATE FACILITY PLAN – QUESTIONS?

Paul Hinsch

Office of Policy and ManagementBureau of Assets Management

(860) [email protected]

13


REVIEW REQUEST FOR SPACE PROCESS

14


• REQUEST FOR SPACE FORM• Existing Leases

– 18 month notice letter is sent to agency stating lease end date. The old RFS form is included (if available) in this package.

– The agency must fill out the RFS form as a rough draft and return it to Leasing for basic review. We will call you back to discuss any details and explain what other info is required to complete the form.

– If the amount of space or cost is less than 10% over the amount in FACCAP, we can proceed with the commissioner signatures. If it is more than 10% over the amount in FACCAP – an interim space request is needed.

– The interim space request form ----- Paul Hinsch– When the existing lease is NOT in FACCAP (happens when the agency fails

to submit space request in each even year to OPM!) the agency must follow the Interim Space Request Process outlined earlier.

15


REVIEW INTERIM SPACE REQUEST PROCESS• These cover letters are required when the agency is seeking more square footage than

it is approved for under the current State Facility Plan. They are on the OPM website.• Sample ISR Letter #1 - To be used when an agency needs to exceed State Facility

Plan square footage approval by more than 10%.• Sample ISR Letter #2- To be used when the space request was not submitted for

inclusion in the State Facility Plan.• Sample ISR Letter #3 - To be used when a space request was submitted for inclusion

in the State Facility Plan, but not approved.• Required Cover Sheet - To be used as a cover sheet when submitting an interim space

request submitted to OPM.

• Interim Funding Requests (IFR)• Required when the agency is seeking lease funding beyond what it is approved for

under the current State Facility Plan.• Sample IFR Letter

16


GENERAL PARAMETERS REGARDING LEASES/PROPERTY TRANSFER:

• Leasing/Property Transfer does not solicit bids, but rather request for proposals

• Once advertised we can look at anything

• A new lease is necessary if an existing lease is expiring and there is no renewal option or it is a new location

• A purchase and sale agreement will be necessary on a transfer

• The leasing process, and to a lesser extent property transfer, is based on statutes, policies and procedures

• The leasing/property transfer process is not negotiable, it must be followed

17


DISCUSS 4B27Discussing your agency’s real estate needs with anyone outside your agency and DAS,

jeopardizes the leasing/property transfer process

• Can result in the elimination of a prospective site

• Will result in slowing everything down

• May result in having to start over again

• Confuses prospective lessors/buyers/sellers

• Violation of 4B27 is a class A misdemeanor

18


YOUR AGENCY’S RESPONSIBILITIES:

• Provide timely accurate information throughout entire process

• Sign all documents correctly

• Deliver all documents to DAS directly

• Please do not discuss your agency’s real estate needs outside of DAS or your Agency

• Read your lease (s), understand your obligations and the lessor’s obligations, CALL US WHEN IN DOUBT

• If you don’t hear from DAS, call us

19


Discuss Lease Compliance

• Ensures Lessor is in compliance with lease

• Ensures user agency is in compliance with lease

• Ensures both parties are in compliance with life/fire safety, codes, etc.

20


Annual Inspections of Emergency Equipment and fire systems

Agencies must:

• Perform fire drills – a minimum of two per year

• Self inspect fire extinguishers, date and initial tag, monthly

• Self inspect emergency lighting, monthly

21


AGENCIES’ RESPONSIBILITIES UNDER STATE STANDARD LEASE

• Notify Leasing:

– Give prompt notice of damage or other casualty to Leasing so we can inform lessor

– of any water penetration IMMEDIATELY– Of any matter/issue regarding the lease (i.e., lessor not performing duties,

etc…)

22


Annual Inspections of Emergency Equipment and fire systemsLESSORS must:

• Annual alarm testing by licensed alarm equipment contractor (annual is minimum, may need to be more frequent, depending on type of occupancy)

• Annual inspection of sprinkler systems by licensed contractor

• Annual fire extinguisher service by licensed contractor

• Proof of all should be sent to Gary Faraci at 713-5674

23


REVIEW PROPERTY TRANSFER PROCESS


QUESTIONS/ANSWERS

THANK YOU FOR COMING!

das leasing/property transfer workshop june 10, 2014

Documents

new plan

state agencies

state agency

facility needs

facilities plan faccap

opm spreadsheets

check information

statutesto help das