DAS Leasing/Property Transfer

Workshop
June 10, 2014

DAS Leasing/Property Transfer

Workshop
AGENDA

INTRODUCTIONS
PURPOSE OF SESSION
REVIEW:
CURRENT STATEWIDE CAPITAL AND FACILITIES PLAN (FACCAP) 2013-2018
REQUEST FOR SPACE PROCESS
INTERIM SPACE PROCESS
YOUR AGENCYS RESPONSIBILITIES
GENERAL PARAMETERS REGARDING LEASES
DISCUSS 4B27
DISCUSS LEASE COMPLIANCE
DISCUSS ANNUAL INSPECTIONS of EMERGENCY EQUIPMENT AND FIRE SYSTEMS
DISCUSS STATES/AGENCIES RESPONSIBILITIES TO REPORT TO LESSORS
QUESTION/ANSWER

DAS Leasing/Property Transfer

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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

DAS Leasing/Property Transfer

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REVIEW OF THE
STATE FACILITY PLAN
PAUL HINSCH
OFFICE OF POLICY AND MANAGEMENT
BUREAU OF ASSETS MANAGEMENT

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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)
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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
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RELOCATING TO NEW SPACE). IT IS PART OF THE NEW PLAN.

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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.

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

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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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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.
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STATE FACILITY PLAN QUESTIONS?

Paul Hinsch
Office of Policy and Management
Bureau of Assets Management
(860) 418-6429
paul.hinsch@ct.gov

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REVIEW REQUEST FOR SPACE PROCESS

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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.

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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

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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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DISCUSS 4B27
Discussing your agencys 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

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YOUR AGENCYS RESPONSIBILITIES:
Provide timely accurate information throughout entire process
Sign all documents correctly
Deliver all documents to DAS directly
Please do not discuss your agencys real estate needs outside of DAS
or your Agency
Read your lease (s), understand your obligations and the lessors
obligations, CALL US WHEN IN DOUBT
If you dont hear from DAS, call us
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DAS Leasing/Property Transfer Workshop

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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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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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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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 Gary Faraci at 713-5674
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REVIEW PROPERTY TRANSFER PROCESS

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QUESTIONS/ANSWERS

THANK YOU FOR COMING!