KRS 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 4 3.050,

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 pro cess 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 lessor s 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 th e 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 de partment, 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 w riting 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 wi th 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 poste d, 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 de signated. 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 writte n 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 i nterest 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 th e 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 p roposed 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 fi nal 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, whe n 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 conformi ty

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 revital ization 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, rejec t 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, th e 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 interes t 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 lea se, 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 i nvolved 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 t o 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.