House Bill hb0567

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    Florida House of Representatives - 2001                 HB 567

        By Representatives McGriff, Harrell and Richardson






  1                      A bill to be entitled

  2         An act relating to state agencies leasing

  3         space; amending s. 255.25, F.S.; revising

  4         language with respect to the extension of

  5         certain existing leases by an agency; providing

  6         for direct negotiation with a building owner

  7         for leased space in certain areas without

  8         competitive bid requirements; providing an

  9         effective date.

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11  Be It Enacted by the Legislature of the State of Florida:

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13         Section 1.  Subsection (3) of section 255.25, Florida

14  Statutes, is amended to read:

15         255.25  Approval required prior to construction or

16  lease of buildings.--

17         (3)

18         (a)  Except as provided in subsection (10), no state

19  agency shall enter into a lease as lessee for the use of 5,000

20  square feet or more of space in a privately owned building

21  except upon advertisement for and receipt of competitive bids

22  and award to the lowest and best bidder. The Department of

23  Management Services shall have the authority to approve a

24  lease for 5,000 square feet or more of space that covers more

25  than 1 fiscal year, subject to the provisions of ss. 216.311,

26  255.2501, 255.2502, and 255.2503, if such lease is, in the

27  judgment of the department, in the best interests of the

28  state. This paragraph does not apply to buildings or

29  facilities of any size leased for the purpose of providing

30  care and living space for persons.

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    Florida House of Representatives - 2001                 HB 567

    783-101-01






  1         (b)  The Department of Management Services may approve

  2  extensions of an existing lease of 5,000 square feet or more

  3  of space if such extensions are determined to be in the best

  4  interests of the state, but in no case shall the total of such

  5  extensions exceed 11 months. If at the end of the 11th month

  6  an agency still needs space, it shall be procured by

  7  competitive bid in accordance with s. 255.249(2)(b) or, if an

  8  agency determines that it is in its best interest to remain in

  9  the space it currently occupies, the agency may negotiate a

10  replacement lease with the lessor if an independent market

11  analysis demonstrates that the rates offered are within market

12  rates for the space offered and if the cost of the new lease

13  does not exceed the cost of a comparable lease plus documented

14  moving costs. A present value analysis and the consumer price

15  index shall be used in the calculation of lease costs. The

16  term of the replacement lease shall not exceed the base term

17  of the expiring lease.

18         (c)  Any agency proposing to enter into a lease for

19  office space in an area designated as a community

20  redevelopment area (CRA) or part of the Front Porch Initiative

21  may, with the prior approval of the Department of Management

22  Services, directly negotiate with a building owner for leased

23  space within such area without the competitive bid requirement

24  of paragraph (a).

25         (d)(c)  Any person who files an action protesting a

26  decision or intended decision pertaining to a competitive bid

27  for space to be leased by the agency pursuant to s.

28  120.57(3)(b) shall post with the state agency at the time of

29  filing the formal written protest a bond payable to the agency

30  in an amount equal to 1 percent of the estimated total rental

31  of the basic lease period or $5,000, whichever is greater,

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    Florida House of Representatives - 2001                 HB 567

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  1  which bond shall be conditioned upon the payment of all costs

  2  which may be adjudged against him or her in the administrative

  3  hearing in which the action is brought and in any subsequent

  4  appellate court proceeding. If the agency prevails after

  5  completion of the administrative hearing process and any

  6  appellate court proceedings, it shall recover all costs and

  7  charges which shall be included in the final order or

  8  judgment, excluding attorney's fees. Upon payment of such

  9  costs and charges by the person protesting the award, the bond

10  shall be returned to him or her. If the person protesting the

11  award prevails, the bond shall be returned to that person and

12  he or she shall recover from the agency all costs and charges

13  which shall be included in the final order of judgment,

14  excluding attorney's fees.

15         (e)(d)  The agency and the lessor, when entering into a

16  lease for 5,000 or more square feet of a privately owned

17  building, shall, before the effective date of the lease, agree

18  upon and separately state the cost of tenant improvements

19  which may qualify for reimbursement if the lease is terminated

20  before the expiration of its base term. The department shall

21  serve as mediator if the agency and the lessor are unable to

22  agree. The amount agreed upon and stated shall, if

23  appropriated, be amortized over the original base term of the

24  lease on a straight-line basis.

25         (f)(e)  The unamortized portion of tenant improvements,

26  if appropriated, will be paid in equal monthly installments

27  over the remaining term of the lease. If any portion of the

28  original leased premises is occupied after termination but

29  during the original term by a tenant that does not require

30  material changes to the premises, the repayment of the cost of

31  tenant improvements applicable to the occupied but unchanged

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    Florida House of Representatives - 2001                 HB 567

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  1  portion shall be abated during occupancy. The portion of the

  2  repayment to be abated shall be based on the ratio of leased

  3  space to unleased space.

  4         Section 2.  This act shall take effect July 1, 2001.

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  6            *****************************************

  7                          HOUSE SUMMARY

  8    Provides that if a state agency leasing office space
      determines that it is in the agency's best interest to
  9    remain in the space it currently occupies at the end of
      the current statutory period which will then require
10    competitive bidding, the agency may negotiate a
      replacement lease with the lessor if an independent
11    market analysis demonstrates that the rates offered are
      within market rates for the space offered and if the cost
12    of the new lease does not exceed the cost of a comparable
      lease plus documented moving costs. Provides that any
13    agency proposing to enter into a lease for office space
      in an area designated as a community redevelopment area
14    or part of the Front Porch Initiative may, with the prior
      approval of the Department of Management Services,
15    directly negotiate with a building owner for leased space
      within such area without competitive bidding.
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