DPW Leasing/Property Transfer Overview

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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 OBRIEN OPM)
• REQUEST FOR SPACE PROCESS (BOB CODY DPW)
• INTERIM SPACE PROCESS (BOB )
• NEW EXPANDED SPACE REQUEST FORM (BOB)
• YOUR AGENCYS 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 STATES/AGENCIES RESPONSIBILITIES TO
  REPORT TO LESSORS (SHANE)

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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 OBRIEN
• 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
• OctoberJanuary - 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 leasesuch 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 dont need to report
  it.
• Weve been at this location for years so I dont
  need to report it.
• My budget analyst knows we have this location so
  I dont need to report it.
• I was approved for this space under the old
  Plan, so I dont need to request it again.
• I wont be using State funds to pay for the
  lease so I dont 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
  commissioners 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 OBrien
• 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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Step 1
FASCAP (5 yr..)
Agency Identifies Need Submits Requests
OPM Reviews Approves
Approval
EM Request
Approval
RFS Not Approved
RFS Approved
DPW Planning Reviews Approves Request
Request for Space (RFS)
Not approved if square footage gt 10
New Lease Step 2
Lease Renewal Only Step 2
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Step 1 New Lease
DPW Facilities Planning Reviews, recalculates
RFS Level 3 based on OPM approved staffing
Agency Identifies Need
Agency Signs RFS
DPW Facilities Planning Either reviews or
prepares RFS and Level 3. Checks to ensure State
Owned space is NOT available
If no Emergency Certification is required
DPW Facilities Planning Administrator Signs RFS,
the DPW Commissioner Signs RFS
DPW Facilities Planning Sends Approved RFS to
Leasing
If RFS has vacant/projected positions, DPW
forwards to OPM Budget
OPM - Budget Reviews Approves
Emergency Certification Request
OPM - Asset Mgt. Reviews Approves if not in
FACCAP or more than 10 of space is requested
Approved RFS
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Step 2 Lease Renewal Option
DPW Leasing
DPW Bid/Contracts Receives responses,
summarizes them for Leasing
Responses from LLs
Advertise Request if 2,500 sq.ft. or over
Proposals from LL.
Comptroller
Agency
DPW Leasing
DPW Bid/Contracts Receives Ad from DPW, places
ad and receives responses
Rent Control Card
SPRB
Lease Renewal
Resolve Issues
Advertising
Landlords (LL) Submit Proposals
Renewal OK
Lease Renewal Not OK
Rent Control Card
DPW Leasing End
Landlord
Lease Renewal Letter
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Step 2 New Lease
DPW Facilities Planning Approves Space Request
Approved Space Request Form
DPW Security Conducts Audit In Parallel on
Selected Site
DPW Leasing Prepares ad
DPW Leasing
DPW Leasing DPW Agency Visit Sites Picks Site
DPW Bid/Contracts Advertises, receives LL
Proposals
DPW Leasing Negotiates Lease Fit-Out
Agency
Landlord
DPW Leasing sends letter informing of agencys
need
Mayor
IT Web-site
Board of Realtors
As Built Prelim Design
Agency Reviews/Modifies Approves Plans
DPW Leasing (Estimating, compiling costs)
Step 3
Landlord
Resolve Issues
Signed Lease
Agency Design Est. Or LL Designs
DPW prepares forwards standard lease
Financial Affidavit
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Step 3 New Lease (Cont)
DPW D. Comm./ Comm.
SPRB Visit site, etc.
Signed Lease
Resolve Issues Re-write Lease
Signed Lease OK/Not OK
Signed lease OK/Not OK
Resolve Issues
DPW Leasing
DPW Leasing
Agency
Signed Lease
Resolve Issues
Resolve Issues Re-write Lease
OPM
Signed Lease AG Check list
AG Approve Lease for Form (Content)
Signed Lease
OK
Not OK
Step 4
Signed Lease OK
Resolve Issues
DPW Leasing
DPW Leasing
Signed Lease
Signed Lease OK
Resolve Issues
Resolve Issues
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Step 4 New Lease (Cont)
Agency
DPW Leasing Prepares Rent Control Card
Rent Control Card
Move-in coord, Space Planning, Data, T-Com, Etc..
Landlord
Day to Day Issues
Annual Inspection
Unresolved LL/Agency Issues
DPW Leasing (Facil. Mgt. If Reqd)
Comptroller
Fit-out is Completed DPW/Agency Approve/sign off
Rent Control Card Sent by Agency, last step
Town Hall
End/ Lease Notice Recorded
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DPW Leasing/Property Transfer Overview

• DISCUSS 4B27
• Discussing your agencys 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 AGENCYS RESPONSIBILITIES
• Provide timely accurate information throughout
  entire process
• Sign all documents correctly
• Deliver all documents to DPW directly
• Please do not discuss your agencys real estate
  needs outside of DPW or your Agency
• Read your lease (s), understand your obligations
  and the lessors obligations, CALL US WHEN IN
  DOUBT
• If you dont 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!