Summary of Compliance with Committee Recommendations

Recommendation

Status

Comments

OPM must analyze FACCAP lease requests to determine if buying or constructing a facility would be an economical alternative to leasing. Whenever necessary, OPM may order a feasibility study be completed by DPW. The findings of OPM's analysis shall be included in FACCAP along with the number of years the specific space need has been met through leasing.

Partial

OPM reports it does, on occasion, request a feasibility study when it is warranted. However, OPM does not believe this type of analysis is feasible or meaningful in all cases.

OPM shall assume all responsibilities for initially processing requests for space including the dispatching of advance expiration notices. OPM shall establish and monitor turn around times for notices.

Full

OPM is now the first point of contact for space requests. An informational sheet containing all the required data as well as instructions was developed and sent to all agency heads. The information contained in the sheet must be provided to and approved by OPM before DPW starts its leasing process.

State agencies should deal directly with OPM in requesting space. Once OPM has granted its approval, the request should be forwarded to DPW to continue the space acquisition process.

Partial

As stated above, OPM has assumed an upfront role in the leasing process. It has worked with DPW to improve and streamline the leasing process.

DPW must evaluate the state's space standards guidelines and update the space standards manual by January 1, 2003

Partial

A consulting firm has been contracted to review the existing standards and develop new standards.

DPW must update its leasing manual to accurately reflect the agency's current policies and procedures. DPW should develop specific time standards for the various procedural steps within each phase of the lease process and promulgate regulations accordingly.

Partial

DPW is in the process of streamlining its process by eliminating and combining steps. It intends to update its lease manual and promulgate regulations to reflect practice upon completion of these tasks.

DPW must redesign and integrate the current lease tracking instruments into a system that includes lease status reporting for all property agents and measures adherence to standards established for all critical points in the process. A monthly management report should be prepared to compare processing times to the standards. The report shall include documented explanations for all transactions not meeting the standards and what action is planned to get transactions back on schedule.

Partial

DPW is working with DOIT to develop an RFP for a computerized facilities asset management system. The system would contain a leasing module that would allow tracking and status reporting. The RFP is in the final stages of review.

OPM's approval at the lease proposal stage should only be for proposals exceeding preauthorized levels.

Partial

OPM continues to work with DPW to streamline the leasing process and will monitor results of procedural revisions.

DPW shall conduct a formal training needs assessment of all leasing and property agents including but not limited to their ability to conduct negotiations and evaluate alternatives. Training shall be provided as needed.

Full

DPW has conducted a training needs-assessment in 2002. An extensive training program has been identified to include three classes. Training will be implemented subject to budget constraints.

DPW and the Attorney General's Office must finalize standardized lease language by March 31, 2002.

Full

A standardized lease was finalized March 2002.

DPW shall hire a director for its space acquisition function who will assume a quality control position. A formal quality control system shall be established to provide a review of all real estate transactions before they are sent outside the unit.

Partial

The director of Facilities Operations has assumed management responsibility for the Leasing Unit until budgetary situation permits filling the position.

The lease management function shall be strengthen and removed from current leasing agents and instead a position be created to deal with these issues. The lease compliance officer will have primary responsibility for:

· Handling lease management issues raised by client agencies;

· Conducting an annual inspection of leased property for conformance with terms of the lease; and

· Providing an annual statewide compliance report based on their inspections to leasing agents, the State Properties Review Board (SPRB), OPM, and the attorney general's office.

Full

These functions have been assumed by a DPW Building Superintendent.

DPW shall develop tools to flag potential lease renewals and establish a system to monitor the number of month to month leases that includes the length of time and reason a lease has been in holdover status.

Full

DPW has created a spreadsheet indicating all holdover status leases and is working with various agencies to put leases in place. The list has been reviewed by OPM.

DPW must annually remind client agencies through written notice or other formal means that existing state law prohibits disclosure of state real estate needs or interests with outside parties.

Full

DPW will annually remind client agencies that existing law prohibits disclosure of state real estate needs or interest with outside parties.

DPW should increase client agency awareness that even casual routine communications with owners can weaken the state's negotiating power.

Full

DPW will periodically remind its clients of this requirement.

DPW should formalize its initiative of allowing real estate representatives the opportunity to conduct presentations to the leasing unit.

Full

DPW has continued contact with various real estate representatives and meets with them, when appropriate. Moreover, several provide periodic updates on market conditions within the state.

The state shall develop standards and criteria for defining surplus and marginal use property and improve its long range planning.

Full

OPM, in conjunction with DPW and Office of the Comptroller, has developed standards and criteria for defining surplus and marginal use property. These standards will become part of the JESTIR property database in the next system update.

The existing statutory deadlines shall be eliminated and be replaced with realistic and reasonable guidelines developed by OPM. The guidelines should be established no later than September 1, 2002.

Partial

Legislation authorizing this change died during the 2002 session. However, OPM reports it intends to develop new guidelines to replace the statutory deadlines by the end of the calendar year.

DPW, in conjunction with OPM, shall establish a monitoring system to track the disposition process from beginning to end. Information from this system should be included in DPW's annual report to the SPRB and the legislature.

Full

A tracking system for property disposition activities has been developed in conjunction with OPM.

DPW must update its property acquisition and disposition manual to reflect the department current policies and procedures. Regulations shall be promulgated as needed.

Partial

DPW reports that the property acquisition and disposition manual will be updated in conjunction with the leasing manual.

DPW shall develop a standardized format for documenting any negotiations with property owners. In addition, the documentation should include an analysis of purchase alternatives and reasons why the subject property was chosen.

None

DPW states it will implement this recommendation as time and resources permit.

The DPW statutes shall be amended to reflect policy regarding the use and disclosure of appraisals for DPW real estate transactions.

None

DPW states it will implement this recommendation as time and resources permit.

The State Properties Review Board shall be granted authority to request, at its discretion, additional appraisals to assist in its review process.

None

Legislation authorizing this change died during the 2002 session.

DPW shall adopt a formal process for the selection and inclusion of new appraisers to be used in its real estate transactions.

None

DPW states it will implement this recommendation as time and resources permit.

All DPW responsibilities relating to leased facilities and property acquisition must be organized into one separate dedicated unit.

Partial

The Request for Space process was transferred to the Facilities Management Unit. However, property acquisition continues to be a separate function.

DPW must establish better information tracking and take steps to improve its quality control with a goal of zero errors in the statutorily required reports.

Full

The responsibility for the DPW Annual Report was transferred to Facilities Management. Several administrative review and checks were implemented to improve quality and accuracy.

The State Properties Review Board should be empowered to sign all leases prior to their final execution. SPRB shall review each lease for compliance with its decisions. All leases differing materially from the terms of SPRB decisions must be reported to the State Auditors Office for further investigation. Parties involved in transactions determined to be out of compliance should be held accountable and subjected to strict penalty and disciplinary action.

Partial

Legislation authorizing this change died during the 2002 session.

However, the new standard lease document has few variable fields. Leasing personnel are only allowed to enter the business terms of the lease. The agent, supervisor and director and the Attorney General's office all review and sign-off the document for compliance with the State Properties Review Board approval.