House Bill hb1589

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    Florida House of Representatives - 2002                HB 1589

        By Representative Machek






  1                      A bill to be entitled

  2         An act relating to state facilities; amending

  3         s. 255.25, F.S.; authorizing the Department of

  4         Management Services to exempt certain

  5         replacement leases from a provision of law

  6         requiring uniform leasing procedures under

  7         certain circumstances; providing an effective

  8         date.

  9  

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

11  

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

13  Statutes, is amended to read:

14         255.25  Approval required prior to construction or

15  lease of buildings.--

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

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

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

19  except upon advertisement for and receipt of competitive bids

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

21  Management Services shall have the authority to approve a

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

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

24  255.2501, 255.2502, and 255.2503, if such lease is, in the

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

26  state. This paragraph does not apply to buildings or

27  facilities of any size leased for the purpose of providing

28  care and living space for persons.

29         (b)  The Department of Management Services may approve

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

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

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    Florida House of Representatives - 2002                HB 1589

    779-122-02






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

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

  3  an agency still needs that space, it shall be procured by

  4  competitive bid in accordance with s. 255.249(4)(b). However,

  5  an agency that determines that it is in its best interest to

  6  remain in the space it currently occupies may negotiate a

  7  replacement lease with the lessor if an independent

  8  comparative market analysis demonstrates that the rates

  9  offered are within market rates for the space and the cost of

10  the new lease does not exceed the cost of a comparable lease

11  plus documented moving costs. Notwithstanding the provisions

12  of paragraph (2)(c), the Department of Management Services may

13  exempt the replacement lease from the provisions of 60H-1.007

14  of the Florida Administrative Code if, upon complying with the

15  provisions of this paragraph, the cumulative cost of the new

16  lease is at least 10 percent less than the cost of a

17  comparable lease plus documented moving costs. A present-value

18  analysis and the consumer price index shall be used in the

19  calculation of lease costs. The term of the replacement lease

20  may not exceed the base term of the expiring lease.

21         (c)  Any person who files an action protesting a

22  decision or intended decision pertaining to a competitive bid

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

24  120.57(3)(b) shall post with the state agency at the time of

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

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

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

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

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

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

31  appellate court proceeding. If the agency prevails after

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    Florida House of Representatives - 2002                HB 1589

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  1  completion of the administrative hearing process and any

  2  appellate court proceedings, it shall recover all costs and

  3  charges which shall be included in the final order or

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

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

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

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

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

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

10  excluding attorney's fees.

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

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

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

14  upon and separately state the cost of tenant improvements

15  which may qualify for reimbursement if the lease is terminated

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

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

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

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

20  lease on a straight-line basis.

21         (e)  The unamortized portion of tenant improvements, if

22  appropriated, will be paid in equal monthly installments over

23  the remaining term of the lease. If any portion of the

24  original leased premises is occupied after termination but

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

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

27  tenant improvements applicable to the occupied but unchanged

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

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

30  space to unleased space.

31         Section 2.  This act shall take effect July 1, 2002.

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    Florida House of Representatives - 2002                HB 1589

    779-122-02






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  2                          HOUSE SUMMARY

  3  
      Authorizes the Department of Management Services to
  4    exempt described replacement leases entered into by state
      agencies from a uniform leasing procedure if the
  5    cumulative cost of the new lease is at least 10 percent
      less than the cost of a comparable lease plus the
  6    documented moving costs and the lease is otherwise in
      compliance with s. 255.25, F.S.
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