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56.803 Procedure when agency requests space.

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56.803 Procedure when agency requests space. (1) When an agency determines that it will need office or other space, the agency shall submit a request for the acquisition of the additional space to the Department for <br>Facilities Management in the Finance and Administration Cabinet. Except in the <br>case of an emergency as described at KRS 56.805(3), an agency shall submit its <br>space request in writing to the department. In the case of an emergency, an agency <br>shall communicate its space needs to the department pursuant to KRS 56.805(3) as <br>soon as an agency knows that it will need the space. If the commissioner of the <br>Department for Facilities Management determines that insufficient space has been <br>allocated to the agency making the request and that it is appropriate to lease <br>additional space for the agency making the request, the commissioner shall acquire <br>the space required by lease as provided by KRS 43.050, 48.111, and 56.800 to <br>56.823. (2) The Department for Facilities Management shall review each agency space request to determine whether space suitable to meet the agency's reasonable needs may be <br>available in a state-owned or occupied building. If it is determined that there is <br>suitable space available in a state-owned or occupied building, the commissioner <br>shall notify the agency. A copy of the notice shall be kept on file. (3) If it is determined that there is no suitable space available in a state-owned or occupied building, the department shall comply with the procedures set forth in this <br>section in the leasing of space, except as otherwise provided in KRS 43.050, <br>48.111, and 56.800 to 56.823. (4) The department shall draw up general requirement specifications for the space required. These general requirement specifications shall not be changed except, at <br>the discretion of the commissioner, when the lease process is initiated again <br>pursuant to paragraph (c) of subsection (15) of this section or pursuant to paragraph <br>(b) of subsection (16) of this section. The general requirement specifications shall <br>be kept on file. (5) (a) In soliciting the interest of lessors who have property to let in a county where space is sought, the department shall give adequate public notice to reasonably <br>inform persons having property to let within the county of the type of space <br>required, the general location of the property, and the number of square feet <br>needed. The notice may include posting on the Internet or newspaper <br>advertisements. Each notice shall contain general information concerning the <br>agency requirements for the space sought and shall state the last time, date, <br>and place that written responses shall be received. When it is anticipated that a <br>lease may be negotiated containing deviations or variations from the terms and <br>conditions of the state standard lease form prescribed by the Division of Real <br>Properties, within the department, any deviations or variations shall be stated <br>in the notice. (b) The Department for Facilities Management may use any means available to notify landlords that a notice has been given. (6) A property owner, or his representative, shall respond in writing on or before the time and date designated in the notice and shall state in the writing the type and location of the property, the name and address of the property owner, and the date of <br>availability of the property. The department shall deal only with individuals who <br>have submitted written responses on or before the time and date designated in the <br>notice. (7) All written responses received on or before the time and date designated shall be opened or downloaded at the same time, publicly read or posted, and kept on file by <br>the department. (8) Within ten (10) business days of the opening of written responses, the department shall transmit general requirement specifications to each person who submitted a <br>written response on or before the time and date designated. The same general <br>requirement specifications shall be transmitted to each person. The department shall <br>state whether a reverse auction will be used to determine any terms of the proposals <br>and shall specify the procedures for the reverse auction. (9) After the general requirement specifications have been transmitted, except as provided in paragraph (a) of subsection (13) of this section, the commissioner, and <br>department employees under his supervision, may negotiate with persons who <br>submitted written responses on or before the time and date designated. If in the <br>course of negotiations, a person proposes terms and conditions of lease different <br>from those contained in the state standard lease form which are determined to be in <br>the Commonwealth's best interest to accept, but no mention of the acceptability <br>thereof has been made in the notice given pursuant to subsection (5) of this section, <br>all other persons who submitted written responses on or before the time and date <br>designated shall be notified of the terms and conditions and shall be allowed to <br>incorporate the terms and conditions in written proposals when submitted pursuant <br>to subsection (12) of this section. A copy of each notice shall be kept on file. (10) The department shall inspect each space proposed to be leased to determine its suitability to the reasonable needs of the agency for whose use the property is <br>sought. The owner of the property, or the owner's representative, shall provide <br>access to the property for the inspection. A report of the findings about each <br>property inspected shall be submitted on a site evaluation form to the commissioner <br>of the department. Completed site evaluation forms shall be kept on file. (11) After the commissioner has reviewed the completed site evaluation forms, the commissioner shall inform each owner of property, or his representative, of the <br>steps necessary to bring the property up to general and specific requirement <br>specifications. The commissioner shall also invite each person to submit a written <br>proposal on a form created by the Department for Facilities Management. A copy of <br>the form shall be provided to each bidder. The department may require any terms of <br>the proposal to be the subject of a reverse auction. A written proposal shall <br>constitute a best and final offer. The department shall not consider a written <br>proposal unless it is submitted on a department form on or before the time and date <br>designated. (12) All written portions of the proposals submitted on or before the time and date designated shall be opened at the same time, publicly identified by the name of the <br>property owner and the location of the property, and kept on file. (13) Except pursuant to paragraph (b) of subsection (15) of this section, when the requirements of paragraph (a) of this subsection shall not apply, from the time that <br>written proposals are opened until the awarding of a lease, the department: <br>(a) Shall not negotiate or agree to changes in the terms of written proposals except to correct technical errors; (b) Shall log in all contacts between department employees and any person with an interest in the awarding of a lease. The log shall state the time, date, place, <br>and a summary of the substance of each contact. Each log entry shall be <br>signed by the department employee who was contacted. After the lease is <br>awarded, the log shall be kept as a department record. (14) (a) The commissioner shall assess the proposals, taking into account factors including, but not limited to: consultation with the head of the agency for <br>whose use the space is sought; the location and accessibility of the property to <br>the public; its condition and state of repair; its conformity with the <br>requirements of occupational health and safety regulations; its conformity <br>with applicable state fire, health, safety and sanitation requirements; the <br>proposed rental rates; utility and janitorial costs; agency moving costs; any <br>terms of the proposal determined through a reverse auction; and whether the <br>property proposed is in substantial conformity with the general and specific <br>requirement specifications. (b) The commissioner shall give preference to properties in areas which have received, within the previous five (5) year period, state community <br>development funds for revitalization if properties are offered at a competitive <br>rate and meet the provisions of paragraph (a) of this subsection. (15) The commissioner, relying exclusively on his assessment made pursuant to subsection (14) of this section, shall: <br>(a) Choose the best proposal in the interest of the Commonwealth; <br>(b) Be permitted to negotiate with a potential lessor if he was the only responsive and responsible potential lessor who submitted a proposal; or (c) Except as provided in paragraph (b) of this subsection, reject all proposals when none is in the Commonwealth's best interest to accept as assessed <br>according to the factors stated in subsection (14) of this section and may, at <br>his discretion, initiate the lease process again. (16) (a) The commissioner shall award or decline to award a lease to the potential lessor who submitted the best proposal pursuant to paragraph (a) of subsection <br>(15) of this section or who negotiated with the commissioner pursuant to <br>paragraph (b) of subsection (15) of this section. However, the commissioner <br>shall not award a lease to a potential lessor who negotiated with the <br>commissioner pursuant to paragraph (b) of subsection (15) of this section if <br>that potential lessor's proposal after negotiations was not in the <br>Commonwealth's best interest to accept as assessed according to the factors <br>stated in subsection (14) of this section, and the commissioner shall not award <br>a lease to a person other than a potential lessor prescribed in this paragraph. (b) If the commissioner declines to award a lease, he may, at his discretion, initiate the lease process again. (17) The commissioner shall put in writing the justifications for his decisions made pursuant to subsections (15) and (16) of this section. This writing shall be kept on <br>file. (18) The commissioner, all department employees under the commissioner's supervision who performed a site evaluation or negotiated a lease agreement under this section, <br>the head of the agency that will occupy the leased space, and all agency employees <br>who were directly involved with a site evaluation or lease negotiations shall sign <br>separate certificates, devised by the commissioner, which shall provide the <br>signatory with the option of certifying that, to the best of his knowledge, he is either <br>aware or unaware of circumstances which may constitute a violation of KRS 56.800 <br>to 56.823. The Department for Facilities Management shall keep the certificates on <br>file and shall inform state agencies of the legal requirements concerning lease <br>certification on an annual basis. (19) The department shall notify each person who submitted a written response on or before the time and date designated in the public notice pursuant to subsection (6) <br>of this section, but who was not awarded the lease, of the selected property to be <br>leased, and that the person has a right to examine the leasing records relevant to the <br>lease that was awarded. If the Capital Projects and Bond Oversight Committee, <br>pursuant to KRS 56.823(2), will review the awarding of a lease, each notice shall <br>state that fact. A copy of each notice shall be kept on file. (20) Prior to finalization of the lease, the department or the leasing agency shall inspect the property to ensure that any changes described in subsection (11) of this section <br>necessary to bring the property up to specifications have been completed in a <br>manner satisfactory to the agency or department. At the conclusion of the <br>inspection, the owner shall be advised in writing by the department either that the <br>property is approved for occupancy and the lease may be finalized, or that there <br>remain changes to be completed or corrected before the lease may be finalized. Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 63, sec. 10, effective July 15, 2010. -- Amended 2009 Ky. Acts ch. 78, sec. 45, effective June 25, 2009. -- Amended 2000 Ky. Acts <br>ch. 47, sec. 1, effective July 14, 2000; and ch. 63, sec. 2, effective July 14, 2000. -- <br>Amended 1998 Ky. Acts ch. 120, sec. 27, effective July 15, 1998; and ch. 539, <br>sec. 2, effective July 15, 1998. -- Amended 1992 Ky. Acts ch. 343, sec. 1, effective <br>July 14, 1992. -- Created 1990 Ky. Acts ch. 512, sec. 4, effective July 13, 1990. Legislative Research Commission Note (9/19/97). An erroneous reference to KRS 58.823 in subsection (3) of this statute has been corrected to read KRS 56.823 to <br>correct an inadvertent mistake in codifying 1990 Ky. Acts ch. 512, sec. 4.