General Service Enterprise
Seat of Government Lease Procedures for Leases in Polk or Contiguous Counties
Leasing generally occurs in the following contexts:
1.
An agency located on the Capitol Complex expands
a program or establishes a new program, which necessitates additional space. In the first
two cases, the Department of Administrative Services, General Services
Enterprise takes a leadership role and plays an active part in the location of
leased space, negotiation of a lease, and coordination of the physical move.
In the third case, the Department of
Administrative Services, General Services Enterprise assists the agency with
regard to leasing and offers collocation opportunities, if such exist in the
city or county where the agency wishes to locate. (See,
This
document outlines, defines and delineates the roles and responsibilities of the
leasing agency and the Department of Administrative Services, General Services
Enterprise for offices identified in the first and second scenario.
The
agencies' role in leasing properties in the first and second scenario consists
of the following elements:
2.
The Department of Administrative Services,
General Services Enterprise plans renovation or restoration of a building and
must relocate agencies temporarily off the Capitol Complex.
3.
An agency opens a "field" office at a location
other than in the city of
The Department
of Administrative Services, General Services Enterprise' role in leasing
properties in the first and second scenario consists of the following steps:
Step 1. Decision Factors
The Department
of Administrative Services, General Services Enterprise receives a request for
additional office space from an agency.
The decision to lease property is determined by the state agency and the
Department of Administrative Services, General Services Enterprise when
additional office space is not available on the Capitol complex, or when
program requirements necessitate a need for a field office.
The agency's decision to lease
property or to expand/reduce square footage is determined by a multitude of
factors. These factors include, but are
not limited to: legislative mandate, customer base, federal, state, and county
program driven requirements, or an increase in the agency's FTE's to meet its
respective mission. The agency is
responsible for justifying the need for leased office space.
Step 2. Guidelines
and Standards
The Department of Administrative
Services, General Services Enterprise has developed space allocation standards
and guidelines (see attachment B). These standards assist the department in
determining the amount of square footage required for personnel space, as well
as, special facilities within the space. Office standards may vary due to space availability, growth potential,
acoustics, and specific needs of personnel, program requirements, equipment
used, and the type of office furniture used.
An agency
representative completes and submits to the Department of Administrative
Services, General Services Enterprise a space analysis form (see attachment A) to determine
appropriate square footage requirements and any special needs
requirements.
Step 3. Factors
and Criteria Considered for Locating Lease Space
The Department
of Administrative Services, General Services Enterprise meets with the agency's
representative to discuss and encourage collocation opportunities, facility
requirements, agency programmatic objectives, time frames and deadlines.
The method for
locating available lease space varies. The following methods are generally used to obtain lease space: Request
for Proposals, referrals by peers or community partners, downtown redevelopment
corporations, Realtors, and personal knowledge. Note: State agencies do not pay any finder fees to Realtors
Step 4. Selection Criteria
The Department
of Administrative Services, General Services Enterprise and the agency select
the specific office site to be leased based on a multitude of factors and
criteria.
Selecting the geographical
location of the leased facility is based on the varied program requirements of
each individual department. The following
criteria are considered when selecting a location:
Collocation Opportunities - When possible, an attempt to
collocate agencies is pursued in an effort to reduce costs. Costs can be reduced by sharing reception
areas, conference rooms, receiving areas, restroom facilities, break rooms,
communication systems, computer systems, fax/copier/mail centers, common
janitorial services, and support personnel. Collocating facilities also promotes economy and efficiency by better
coordinating the delivery of services to the general public throughout the
state and allowing easier centralized public access to the various services
offered by state government. These
locations are generally in downtown areas and close to mass transit and major
highways.
Urban Redevelopment Areas or Revitalization Areas - When possible, the agency considers locating in economically depressed neighborhoods in order to stimulate revitalization of the area.
Federal Program Requirements Agencies
administering federally funded programs may be required to observe specific
guidelines and parameters. For example,
an agency may be required to collocate in an existing federal facility or
locate within a program specified geographical boundary.
Program Requirements - Agencies administering
county funded programs may be required to observe specific guidelines and
parameters. Again, an agency may be
required to collocate in an existing county facility or locate within a program
specified geographical boundary.
State Program Requirements - Authorities established under
the Code of Iowa, or issued Executive Orders, may play a role in establishing
certain criteria for geographical locations. For example, some agencies may be required to locate in large
geographical areas.
Proximity to Critical Facilities - Agencies'
program requirements may mandate locating within a specified boundary to
critical facilities, such as, courthouses and other municipal buildings.
Convenient Location to Customer Base - Certain
agencies are often located in specific targeted areas and neighborhoods to
better serve their clientele.
Mass Transit - Due to the
nature of certain agencies' services, those agencies are often required to
locate on a public transportation route for convenience and accessibility of
their clientele.
Facility Requirements - All potential leased facilities
must meet federal, state and local building codes, the Iowa Occupational Safety
and Health Act, Life Safety Codes, and accessibility under the
Facility Limitations - Some major factors in determining a potential lease location
are fair market value, overall move costs, equitable lease terms and targeted
occupancy dates. An equally important
factor is the availability and cost consideration of communications to the
facility, including both telephone and data. Additionally, leased properties must
have adequate security and enough parking to accommodate the general public, as
well as, agency staff. Landlords must also be responsive to the agencies needs.
Step 5. Lease Negotiations
The Department of Administrative Services, General Services Enterprise negotiates for the
required space and general lease terms with the prospective Landlord. The following guidelines are used to ensure the state receives the most favorable terms:
Industry Sources - Quarterly reports indicating the amount and percentage of
Class A, B, and C office space leased in the city of
Comparison of Similar Facilities
and Leases - Review of available and existing properties on the market and conduct site
evaluations to ensure the state receives the best available market rate.
Buy-Down of Lease Rate with
Extended Term - A considerable factor in the rate per square foot is based
on the length of a lease. Typically, the
longer the lease term the lower the rate.
Additional Considerations - Other
factors evaluated in the cost per square foot of a lease include the Tenant
Improvement Allowance or build-out costs, building operating expense costs, the
age of the facility, parking availability and costs.
Early/Timely Negotiation of Leases - New leases should be negotiated thirty to sixty days prior
to commencement of the lease to allow time for design, build-out of tenant
improvements, installation of modular office furniture and installation of
communication and data equipment. Negotiations for lease renewals should be completed six months prior to
commencement of the lease to allow for relocation if negotiations are
unsuccessful.
Step 6 ADA Accessibility
When negotiating a lease, lease renewal or lease addendum, an American with Disabilities (ADA) assessment must
be conducted on the proposed office space. The Department of Human Rights, Division of Persons with Disabilities
representative in cooperation with a Department of Administrative Services,
General Services Enterprise representative conducts a physical site inspection
to ensure compliance with federal and state laws on accessibility (see attachment C). The Department of Human will then prepare a
letter indicating any structural alterations that may be required and
restrictive time frames of when those alterations are to be completed. Written approval from the Division of Persons with Disabilities must be submitted with the lease, lease renewal, or lease
addendum indicating that the proposed facility has been inspected and complies
with
There must be an updated letter attached to any lease, lease
renewal, or lease addendum (see
example attachment D).
A current
Step 7. Preparation and Execution of Lease
Contract
The lease agreement, lease renewal, or lease amendment is prepared using the standard
lease agreement format with minor modifications. The standard lease templates were developed
in cooperation with the Attorney General's Office and Department of
Administrative Services, General Services Enterprise' Legal Counsel (see attachment F).
The Department of Administrative
Services, General Services Enterprise prepares the lease contract and attaches
the appropriate exhibits to the lease. The Attorney General's Office or the Department of Administrative
Services, General Services Enterprise' Legal Counsel reviews the final lease
prior to execution of the contract. The
contract is then reviewed and approved by the agency representative as well as
the Landlord. The Landlord, the
authorized agency representative, and the Director of the Department of
Administrative Services, General Services Enterprise executes the lease
contract respectively.
Leases in the Seat of Government
are between the Landlord and the Department of Administrative Services, General
Services Enterprise on behalf of the state agency. Each party to the lease shall possess one of
the fully executed Leases.
Step 8. Supervise and Manage Build-out/Tenant Improvements
of Lease Facility
The Department of Administrative Services, General Services Enterprise coordinates and manages the build-out and
tenant improvement process from construction to tenant's occupancy. There are two major components to this
process. The first component involves the coordination and management of the architectural and construction process. The Department of Administrative Services, General Services Enterprise' role in the construction process includes the following elements:
The second component involves
coordination and supervision of the state contractors responsible for final
design, furniture procurement, installation of modular furniture, installation
of data and communication lines and equipment and the move or physical
relocation of the agency. The Department
of Administrative Services, General Services Enterprise' role in this process
includes the following elements:
Additional Lease Duties &
Responsibilities of the Department of Administrative Services, General Services
Enterprise
Additional Lease Duties &
Responsibilities of the Leasing Agency
For an illustrated flowchart of the lease process.
NOTE: The Department of Administrative Services, General Services Enterprise procures lease space at the Seat of
Government for all Executive Branch agencies, departments, boards and
commissions, except for the Board of Regents. The Board of Regents has separate leasing authority under the Code of
Iowa. These procedures are not intended to apply to the Legislative Branch or Judicial Branch of government.
ATTACHMENTS:
Space Allocation Form
- Attachment A
Space
Standards/Guidelines - Attachment B
State Leased/Owned
Building Access Survey Form - Attachment C
Example of Division
of Human Rights Letter - Attachment D
Executive Order 46
and Governor's Directive - Attachment E
Standard Lease Agreement Format - Attachment F