56.803 Procedure when agency requests space. - Kentucky Statutes

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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
Facilities Management in the Finance and Administration Cabinet. Except in the
case of an emergency as described at KRS 56.805(3), an agency shall submit its
space request in writing to the department. In the case of an emergency, an agency
shall communicate its space needs to the department pursuant to KRS 56.805(3) as
soon as an agency knows that it will need the space. If the commissioner of the
Department for Facilities Management determines that insufficient space has been
allocated to the agency making the request and that it is appropriate to lease
additional space for the agency making the request, the commissioner shall acquire
the space required by lease as provided by KRS 43.050, 48.111, and 56.800 to
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
available in a state-owned or occupied building. If it is determined that there is
suitable space available in a state-owned or occupied building, the commissioner
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
section in the leasing of space, except as otherwise provided in KRS 43.050,
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
the discretion of the commissioner, when the lease process is initiated again
pursuant to paragraph (c) of subsection (15) of this section or pursuant to paragraph
(b) of subsection (16) of this section. The general requirement specifications shall
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
inform persons having property to let within the county of the type of space
required, the general location of the property, and the number of square feet
needed. The notice may include posting on the Internet or newspaper
advertisements. Each notice shall contain general information concerning the
agency requirements for the space sought and shall state the last time, date,
and place that written responses shall be received. When it is anticipated that a
lease may be negotiated containing deviations or variations from the terms and
conditions of the state standard lease form prescribed by the Division of Real
Properties, within the department, any deviations or variations shall be stated
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
availability of the property. The department shall deal only with individuals who
have submitted written responses on or before the time and date designated in the
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
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
written response on or before the time and date designated. The same general
requirement specifications shall be transmitted to each person. The department shall
state whether a reverse auction will be used to determine any terms of the proposals
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
department employees under his supervision, may negotiate with persons who
submitted written responses on or before the time and date designated. If in the
course of negotiations, a person proposes terms and conditions of lease different
from those contained in the state standard lease form which are determined to be in
the Commonwealth's best interest to accept, but no mention of the acceptability
thereof has been made in the notice given pursuant to subsection (5) of this section,
all other persons who submitted written responses on or before the time and date
designated shall be notified of the terms and conditions and shall be allowed to
incorporate the terms and conditions in written proposals when submitted pursuant
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
sought. The owner of the property, or the owner's representative, shall provide
access to the property for the inspection. A report of the findings about each
property inspected shall be submitted on a site evaluation form to the commissioner
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
steps necessary to bring the property up to general and specific requirement
specifications. The commissioner shall also invite each person to submit a written
proposal on a form created by the Department for Facilities Management. A copy of
the form shall be provided to each bidder. The department may require any terms of
the proposal to be the subject of a reverse auction. A written proposal shall
constitute a best and final offer. The department shall not consider a written
proposal unless it is submitted on a department form on or before the time and date
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
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
written proposals are opened until the awarding of a lease, the department:
(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,
and a summary of the substance of each contact. Each log entry shall be
signed by the department employee who was contacted. After the lease is
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
whose use the space is sought; the location and accessibility of the property to
the public; its condition and state of repair; its conformity with the
requirements of occupational health and safety regulations; its conformity
with applicable state fire, health, safety and sanitation requirements; the
proposed rental rates; utility and janitorial costs; agency moving costs; any
terms of the proposal determined through a reverse auction; and whether the
property proposed is in substantial conformity with the general and specific
requirement specifications. (b) The commissioner shall give preference to properties in areas which have received, within the previous five (5) year period, state community
development funds for revitalization if properties are offered at a competitive
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:
(a) Choose the best proposal in the interest of the Commonwealth;
(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
according to the factors stated in subsection (14) of this section and may, at
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
(15) of this section or who negotiated with the commissioner pursuant to
paragraph (b) of subsection (15) of this section. However, the commissioner
shall not award a lease to a potential lessor who negotiated with the
commissioner pursuant to paragraph (b) of subsection (15) of this section if
that potential lessor's proposal after negotiations was not in the
Commonwealth's best interest to accept as assessed according to the factors
stated in subsection (14) of this section, and the commissioner shall not award
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
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,
the head of the agency that will occupy the leased space, and all agency employees
who were directly involved with a site evaluation or lease negotiations shall sign
separate certificates, devised by the commissioner, which shall provide the
signatory with the option of certifying that, to the best of his knowledge, he is either
aware or unaware of circumstances which may constitute a violation of KRS 56.800
to 56.823. The Department for Facilities Management shall keep the certificates on
file and shall inform state agencies of the legal requirements concerning lease
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)
of this section, but who was not awarded the lease, of the selected property to be
leased, and that the person has a right to examine the leasing records relevant to the
lease that was awarded. If the Capital Projects and Bond Oversight Committee,
pursuant to KRS 56.823(2), will review the awarding of a lease, each notice shall
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
necessary to bring the property up to specifications have been completed in a
manner satisfactory to the agency or department. At the conclusion of the
inspection, the owner shall be advised in writing by the department either that the
property is approved for occupancy and the lease may be finalized, or that there
remain changes to be completed or corrected before the lease may be finalized. Effective: July 15, 2010
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
ch. 47, sec. 1, effective July 14, 2000; and ch. 63, sec. 2, effective July 14, 2000. --
Amended 1998 Ky. Acts ch. 120, sec. 27, effective July 15, 1998; and ch. 539,
sec. 2, effective July 15, 1998. -- Amended 1992 Ky. Acts ch. 343, sec. 1, effective
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
correct an inadvertent mistake in codifying 1990 Ky. Acts ch. 512, sec. 4.