Real Estate and Leasing Services Module 17
Addressing the services and steps for state leasing, this module covers statutory requirements, certification processes, rental payments, and disposal of state property. Learner outcomes include understanding Title 74 statutes, space allocation, and state agency support.
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Real Estate and Leasing Services Module 17 1
Overview State Leasing, the services they supply and the specific steps required when any new or additional space is required by your agency will be addressed in the slides. Also included will be a discussion of the necessary forms and how an appropriate amount of space is determined. 2
Learner Outcomes Students will: Recall that Title 74 is where the statutes reside for State Leasing and that OMES shall make all necessary contracts by or on behalf of the state. Recall the net usable square feet are allowed per qualified staff plus any special needs. Recognize what is required to begin the state leasing process. Recognize what should be submitted after receiving certification from the Governmental Technology Applications Review Board that the space need could not be eliminated or reduced through telework. Recall when rental payments commence. 3
Our Mission Support state agencies by providing quality real estate services and serve as stewards of the state s assets. OMES authority for the assignment of state owned or privately leased space and award of such contracts can be found in Title 74. 4 4
Services Inventory of state property. Leasing Services Space leases. Surface leases. REALS-managed building leases. Acquisition services. Disposal services. Mineral interests. Easements. Continuing contract management assistance for all REALS administered contracts. 5 5
Inventory of State Assets REALS created and maintains a comprehensive list of all of the property owned or leased by the state. This inventory list is published online. The REAL Property Asset report includes: Numbers At-A-Glance. Highlighted Properties. Agency Profiles. County Profiles. Report of Underutilized Properties. Report of 5% Most Underutilized Properties. Real Property Inventory List. Transportation and Turnpike Rights-of-Way. Mineral Interests. Personal Property Inventory. 6 6
Process to Dispose of Property Title 74 61 O.S. 327 Unless procedures for state agency real property transactions are otherwise specifically provided by for law, no state agency shall sell, lease, exchange, or otherwise dispose of such real property subject to its jurisdiction, or lease, purchase or otherwise acquire real property subject to its jurisdiction, except as provided for in this section. As used in this section, state agency means any department, board, commission, institution, agency or entity of state government. 7 7
Types of Disposal Public Auction or Sealed Bid Auction. Request for Proposal. Historic. State Capitol Complex. Located within a campus owned by the state. Liquidation. Must be approved for liquidation by the Long-Range Capital Planning Commission. If there are two unsuccessful sealed bid or public auctions, the property then goes into liquidation. Interagency or Interlocal Transfer. 8 8
Space Lease Authority 74 O.S. 63 - The Director of the Office of Management and Enterprise Services shall have authority to purchase all material and perform all other duties necessary in the construction, repair and maintenance of all buildings under its management or control, shall make all necessary contracts by or on behalf of the state for any buildings or rooms rented for the use of the state or any of the officers thereof and shall have charge of the arrangement and allotment of space in such buildings among the different state officers except as otherwise provided by law. 74 O.S. 94 - Except as otherwise provided by law, the Office of Management and Enterprise Services shall have full and complete authority to designate quarters for every department of state government, and to determine what space shall be allotted. 73 O.S. 163 - In order to prevent any defaults or threatened defaults in the payment of said bonds, the Authority [OCIA] is hereby authorized and empowered, in cooperation with the Office of Management and Enterprise Services , to require state departments and agencies to be housed in a building and to pay rent for the use and occupancy of said building. 9
Space Acquisition After receiving GTARB certification that the space need could not be eliminated or reduced through telework, an agency submits a Space Request to REALS. The Real Property Specialist processes the Space Request. After the space allocation is approved, REALS assists the agency in determining if any state-owned space is available to satisfy the space requirement. If no state-owned space is available, the agency is given assistance with the space procurement process, including: Advertising. Evaluating space. Selecting space. Ensuring space requirements are met. Negotiating the contract. Drafting and executing the contract. 10
Space Requests Space standards are not designed to entitle employees to a given amount of space. They assist REALS in determining space needs, and include a standard allotment per full-time employee. The standard is 150 net usable square feet for qualifying employee (typically 150 per (FTE)full time employee), plus any special space needs. Special space includes: Conference rooms. Storage. Equipment (e.g, fax machines, copiers). Break rooms. Safes. Reception area. Evidence rooms. 11
Contracts Leases are not valid until they are signed by the agency director, the property owner and OMES REALS. Rental payments commence after the contract is executed and the agency occupies the space. Leasing has standard contracts with standard terms and conditions that are favorable to the state. 12
Terms and Conditions Leasing forms required. One year lease with options to renew. Asbestos inspection Department of Labor. Fire and Safety inspection State Fire Marshal. Scaled Floor Plan verify the space. Documentation of payment of ad valorem taxes. Liability insurance. ADA compliant. No rental deposits. No open rates or rental escalation. Permanent improvements prohibited. 13
Contract Management Contact renewals. Purchase orders. REALS processes approximately 750 purchase orders for privately leased space annually, totaling approximately $34 million. Lease agreement renewal contracts. Contract amendments. Deficiencies and issues. Dispute mediator. 14
Easements O.S. 61.322 - The Director of the Office of Management and Enterprise Services is hereby authorized to grant easements, rights- of-way, and enter into contracts authorizing the construction and maintenance of telephone, electric transmission and distribution lines, railroad lines, telegraph lines and pipelines across any state lands under the management of said director, and all lands set apart for the use and benefit of any state agency, department, or institution including all lands set apart for use of colleges, universities, hospitals and eleemosynary institutions. REALS manages a historical listing of over 300 easements for agencies under its authority. Easements are researched, mapped and processed by the customer service representative assigned to the project. An application is requested for all easements and surveys and appraisals are required. 15
Surface Leases Title 74 OS 61 323. Authority for OMES to temporarily lease surface lands. REALS manages over 3,400 acres of surface-leased land for the state agencies under its authority. A customer service representative is assigned to oversee the project throughout the entire process. Surface leases are leased through sealed bid auction. 16
Mineral Interests OMES approves, executes and records the mineral agreements along with managing the process for easements, right-of-way agreements, surface leases and right-of-entry permits for oil and gas pipelines and remediation activities. OMES currently holds an Interagency Agreement with the Commissioners of the Land Office for the management of the mineral interests under its authority. OMES approves, signs and records the oil and gas leases and seismic testing permits. 17
Real Property Acquisition Services Title 74 O.S. 61 61-327 Unless procedures for state agency real property transactions are otherwise specifically provided by for law, no state agency shall sell, lease, exchange, or otherwise dispose of such real property subject to its jurisdiction, or lease, purchase or otherwise acquire real property subject to its jurisdiction, except as provided for in this section. As used in this section, state agency means any department, board, commission, institution, agency or entity of state government. Ensure space acquisition is consistent with rules on space allocation, as appropriate. Analyze request for purchase and recommend Long Range Capital Planning Commission(LRCPC) review, as needed. Evaluate property for appropriateness and identify additional properties for consideration as needed. Negotiate or assist with negotiation of contract. Facilitate closing process. 18
Contract Real Estate and Leasing Services Melissa Milburn Melissa.Milburn@omes.ok.gov Director, Real Estate and Leasing Services 522-0367 Carie Carman Carie.Carman@omes.ok.gov Deputy Director 521-6158 Ramona Parker, Real Estate Specialist Space Requests and Purchase Orders 521-3819 inforeals@omes.ok.gov 19
