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DPW Leasing/Property Transfer Overview
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DPW Leasing/Property Transfer Overview
AGENDA
• INTRODUCTIONS• PURPOSE OF SESSION• REVIEW:
– STATEWIDE CAPITAL AND FACILITIES PLAN (FACCAP) (PAT O’BRIEN – OPM)– REQUEST FOR SPACE PROCESS (BOB CODY – DPW)– INTERIM SPACE PROCESS (BOB )– NEW EXPANDED SPACE REQUEST FORM (BOB) – YOUR AGENCY’S RESPONSIBILITIES (SHANE MALLORY – DPW)– GENERAL PARAMETERS REGARDING LEASES (SHANE)
• DISCUSS LEASE PROCESS (SHANE – DPW)• DISCUSS 4B27 (SHANE)• DISCUSS LEASE COMPLIANCE (SHANE)• DISCUSS STATE STANDARD LEASE (SHANE)• DISCUSS ANNUAL INSPECTIONS of EMERGENCY EQUIPMENT AND FIRE SYSTEMS
(SHANE)• DISCUSS STATE’S/AGENCIES RESPONSIBILITIES TO REPORT TO LESSORS (SHANE)• QUESTION/ANSWER
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DPW Leasing/Property Transfer Overview
• 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 DPW meet your agencies’ real estate needs
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DPW Leasing/Property Transfer Overview
REVIEW OF THE
STATE FACILITY PLAN
PATRICK O’BRIEN
OFFICE OF POLICY AND MANAGEMENT
BUREAU OF ASSETS MANAGEMENT
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DPW Leasing/Property Transfer Overview
WHAT IS THE STATE FACILITY PLAN?
• Also known as FACCAP.
• 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 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.
• 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.
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DPW Leasing/Property Transfer Overview
STATE FACILITY PLAN – AGENCY TIMELINE• Late spring/early summer of even numbered years, agencies will receive a package of
information from OPM which includes: Form for each existing lease Form for new space requests Form to account for “missing” leases Forms for energy savings, building demolition, utilization of owned space etc.,
• Agencies required to: Check information provided on the forms, 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 by August 1st of each even numbered year.
• Failure to submit the information will result in the agency not being approved for square footage in the State Facility Plan.
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DPW Leasing/Property Transfer Overview
STATE FACILITY PLAN – AGENCY TIMELINE
• Late spring/early summer of even numbered years, agencies will receive a package of information from OPM which includes: Form for each existing lease Form for new space requests Form to account for “missing” leases Forms for energy savings, building demolition, utilization of owned space etc.,
• Agencies required to: Check information provided on the forms, 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 by August 1st of each even numbered year.
• Failure to submit the information will result in the agency not being approved for square footage in the State Facility Plan.
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DPW Leasing/Property Transfer Overview
STATE FACILITY PLAN – REPORT TIMELINE
• June-August (even numbered years) – Agencies prepare & submit requests for Plan.
• August-September – OPM works to ensure that submissions are complete & accurate.
• September – OPM provides copies of agency submissions to DPW
• 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.
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DPW Leasing/Property Transfer Overview
STATE FACILITY PLAN – INTERIM SPACE REQUESTS
• Interim Space Requests were formerly known as Emergency Certification Requests.
• Interim Space Requests are required when: An agency wishes to lease space, but is not approved for the space under the Plan, or An agency wishes to lease space which is in excess of their Plan approval by 10% or more,
• Interim Space Requests consists of: Completed DPW Level III Space Analysis 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, DPW 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.”
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DPW Leasing/Property Transfer Overview
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.
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DPW Leasing/Property Transfer Overview
STATE FACILITY PLAN - MAJOR PROBLEM AREAS (continued)• Technically, Interim Space Requests expire when the Plan expires, however, DPW and
OPM have jointly agreed that Interim Space Request will be good for 18 months from the date of OPM approval.
• 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.
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DPW Leasing/Property Transfer Overview
REVIEW NEW EXPANDED SPACE REQUEST FORM
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DPW Leasing/Property Transfer Overview
• REQUEST FOR SPACE FORM• New Leases
– If new space was not included in FACCAP a New and Expanded Space Form must be sent by the AGENCY to OPM for processing. Once returned – Agency should forward signed copy to Facilities Planning along with the draft of the RFS. We will work with you to complete the RFS and return it to you for your commissioner’s signature.
– If new lease is in FACCAP – fill out the rough draft of the RFS and send to Facilities Planning. We will review it and work with you to complete it for proper signatures.
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DPW Leasing/Property Transfer Overview
REVIEW REQUEST FOR SPACE PROCESS
BOB CODY (DPW PLANNING)
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DPW Leasing/Property Transfer Overview
• 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 Facilities Planning 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 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 ----- Pat O’Brien– When the existing lease is NOT in FACCAP (happens when the agency fails
to submit space request in each even year to OPM!) the 1st step is to have the agency fill out the New and Expanded Space Form. This form is sent by the AGENCY to their OPM budget analyst. Once received back from OPM, the AGENCY sends a copy to Facilities Planning along with the rough draft of the RFS for further processing.
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DPW Leasing/Property Transfer Overview
REVIEW INTERIM SPACE REQUEST (EMERGENCY CERTIFICATION) PROCESS
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DPW Leasing/Property Transfer Overview
DISCUSS LEASE/PROPERTY TRANSFER PROCESS
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DPW Leasing/Property Transfer Overview
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
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AgencyIdentifies Need Submits
Requests
OPMReviews & Approves
Step 1
FASCAP (5 yr..)
Approval
EM Request
Approval
DPW PlanningReviews & Approves Request
RFS Approved
RFS NotApproved
Request for Space (RFS)
Not approved if square footage > 10%
Lease Renewal OnlyStep 2
New LeaseStep 2
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Step 1New Lease
AgencyIdentifies Need
DPW Facilities Planning
Either reviews or prepares RFS and Level 3. Checks to ensure State Owned
space is NOT available
OPM - BudgetReviews & Approves
If RFS has vacant/projectedpositions, DPW forwards to OPM Budget
DPW Facilities Planning
Reviews, recalculates RFS & Level 3based on OPM approved staffing
AgencySigns RFS
DPW Facilities Planning
Administrator Signs RFS, the DPWCommissioner Signs RFS
OPM - Asset Mgt.Reviews & Approves if not in FACCAP or
more than 10% of space is requested
Emergency Certification Request
DPW Facilities Planning
Sends Approved RFS to Leasing
If no Emergency Certificationis required
Approved RFS
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DPW Leasing
DPW Bid/ContractsReceives Ad from DPW, places ad
and receives responses
Comptroller
AdvertiseRequest if 2,500 sq.ft. or over
Proposals from LL.
Res
pons
es f
rom
LL
s
Step 2Lease Renewal Option
Agency
SPRB
Lease Renewal Resolve Issues
DPW Leasing
“End”
Renewal OK
LandlordLease Renewal Letter
Rent Control Card
Landlords (LL)Submit Proposals
Advertising
DPW Bid/ContractsReceives responses, summarizes
them for Leasing
DPW Leasing
Rent Control Card
Lease RenewalNot OK
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Step 2New Lease
DPW Leasing
DPW Leasing
DPW & Agency Visit Sites &Picks Site
DPW Facilities Planning
Approves Space Request
IT Web-site Board of Realtors
Mayor
DPW Bid/Contracts
Advertises, receivesLL Proposals
Agency
DPW LeasingNegotiates Lease
& Fit-Out
Landlord
DPW Leasing
(Estimating, compiling costs)
AgencyReviews/Modifies& Approves Plans
Agency Design & Est. Or LL Designs
LandlordAs BuiltPrelim Design
Financial Affidavit
Signed Lease
Step 3
Approved Space Request Form
DPW SecurityConducts Audit
In Parallel on Selected Site
DPW LeasingPrepares ad
DPW Leasingsends letter informing of agency’s need
DPW prepares& forwards standard lease
Resolve Issues
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Step 3New Lease (Con’t)
DPW Leasing
Agency
Signed Lease OK Not OK
DPWD. Comm./
Comm.
DPW Leasing
Signed LeaseOK/Not OK
OPM
Signed Lease
DPW Leasing
Signed LeaseOK
SPRBVisit site, etc.
Signed Lease
Resolve Issues
Signed lease OK/Not OK
DPW Leasing
AGApprove Lease for
Form (Content)
Signed Lease & AG Check list
ResolveIssuesRe-writeLease
Signed Lease OK
Step 4
SignedLease Resolve
IssuesRe-writeLease
Resolve Issues
Resolve Issues
Resolve Issues
Resolve Issues
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DPW Leasing
Prepares Rent Control Card
Step 4New Lease (Con’t)
Agency
Comptroller
Rent Control Card
Landlord
DPW Leasing
(Facil. Mgt. If Req’d)
AnnualInspection
Unresolved LL/Agency Issues
Move-in coord, SpacePlanning, Data, T-Com, Etc..
Day to Day Issues
Town Hall
End/ Lease NoticeRecorded
Rent Control CardSent by Agency, last stepFit-out is Completed
DPW/Agency Approve/sign off
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DPW Leasing/Property Transfer Overview
DISCUSS 4B27
Discussing your agency’s real estate needs with anyone outside your agency and DPW, 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
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DPW Leasing/Property Transfer Overview
YOUR AGENCY’S RESPONSIBILITIES:
• Provide timely accurate information throughout entire process
• Sign all documents correctly
• Deliver all documents to DPW directly
• Please do not discuss your agency’s real estate needs outside of DPW 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 DPW, call us
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DPW Leasing/Property Transfer Overview
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.
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DPW Leasing/Property Transfer Overview
DISCUSS STATE STANDARD LEASE
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DPW Leasing/Property Transfer Overview
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
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DPW Leasing/Property Transfer Overview
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…)
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DPW Leasing/Property Transfer Overview
Annual Inspections of Emergency Equipment and fire systems
LESSORS 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 Dave Maura at 713-7260
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DPW Leasing/Property Transfer Overview
QUESTIONS/ANSWERS
THANK YOU FOR COMING!