R23.  Administrative Services, Facilities Construction and Management.
R23-21.  Division of Facilities Construction and Management Lease Procedures.
R23-21-1.  Purpose and Authority.
	(1)  As provided in Subsection 63G-6-208(2), this rule establishes procedures for the procurement of leasing of real property.
	(2)  The Building Board's authority to adopt rules for the activities of the Division is set forth in Subsection 63A-5-103(1)(e).
	(3)  The statutory provisions governing the procurement of leasing of real property by the Division are contained in Title 63G, Chapter 6; Title 63A, Chapter 5; and Title 4, Chapter 1.

R23-21-2.  New Leases.
	A.  Agency Request and Justification
	An agency requesting leased space must submit a request and justification statement to the Division of Facilities Construction and Management (DFCM) preferably at least six months before the required date of occupancy.  A space utilization program should be prepared by the agency.  Assistance is available, if needed, from the staff of the DFCM.  The staff of DFCM, along with the agency, will review the program and criteria for the space requested.
	The justification statement should include the following:
	Planned agency use
	Present agency location
	Proposed area or location of new lease
	Any options that should be considered
	Lease term
	Present lease rate and what services are included
	Present square footage
	Requested square footage
	B.  Securing Space
	If a new lease is required, an advertisement will be prepared by DFCM and competitive proposals will be solicited to comply with the State Procurement Code.  Proposals will be reviewed jointly by the DFCM staff and the agency.
	The review will include compliance to codes that are required by state and federal laws.
	C.  Negotiations
	DFCM will negotiate, or may allow the agency to participate in the negotiations, so that space can be leased in the best interest of the agency and the state.
	D.  Lease Agreements
	A standard lease agreement has been prepared for use by DFCM.  An approved alternate may be used.  The lessor, agency, and staff of DFCM should be involved in the preparation of the final written lease agreement.
	E.  Lease Approval and Processing
	The lease will be distributed for approval signatures of the Lessor, the Agency Budget Officer, the Agency Director, the Attorney General, and DFCM.
	The lease will be recorded by DFCM on a computerized lease file for updating, renewal and control.
	Approval of the Division of Finance is required to establish a payment schedule and issue a contract number.

R23-21-3.  Renewal of Leases and Options.
	DFCM will notify each agency at least six months in advance as to the expiration date of the lease.  DFCM will consult with the agency on whether to renew an existing lease or seek new space.  This will be based on space requirements and needs of the agency.
	If the agency decides to renew a lease, they must submit a request to the Division of Facilities Construction and Management at least 120 days prior to the expiration date.  If the leased space is conducive to the agency needs, then long-term leasing should be considered.  Previously outlined procedures shall be followed for lease renewals and options that agencies may wish to exercise.

R23-21-4.  Lease Advertisement Procedures and Specifications.
	The Procurement Code requires that any agency wanting to lease new space must advertise for competitive proposals.  Listed below, and in the following attachments, are the advertisement requirements of the Division of Facilities Construction and Management (DFCM).
	A.  Parties interested in submitting a proposal must complete a Schedule A, which is an Offeror/Lessor Proposal Sheet, and submit to DFCM before the advertised deadline.
	B.  The agency must submit to DFCM a Schedule B, which contains the Specifications for Advertisement of Space which DFCM will send to interested parties upon request.  The advertisement will run for a period of three consecutive weekends.  Materials required for advertisement must be received by DFCM no later than noon on Monday in order for the advertisement to be in the paper the following weekend.

R23-21-5.  Non-State Tenants Utilizing State-Owned Space.
	A.  Request and Justification
	A non-state or private company requesting to lease space in a state-owned facility must submit a request and justification statement to the Division of Facilities Construction and Management (DFCM) with reasonable notice prior to required date of occupancy.  The criteria to evaluate the request of the non-state or private company shall include the following:
	Planned use of the space
	Proposed area or location of the lease
	Any options that should be considered
	Lease term
	Lease rate and what services are included
	Requested square footage
	Projected use by a state agency of the space requested
	B.  Securing Space
	Proposals will be reviewed jointly by the DFCM staff and the Agency.
	Available space should be included in the master plan of all state agencies that is presented to the Utah State Building Board.
	C.  Negotiations
	DFCM will negotiate, or may allow the agency(ies) to participate in the negotiations, so that state-owned space can be leased in the best interest of the state and at such rates that are consistent with similar private facilities taking into consideration such things as location, etc.
	D.  Lease Agreements
	Using a standard lease agreement as prepared for use by DFCM, the non-state tenant, state agency using proposed facility, and staff of DFCM shall be involved in the preparation of the final written lease agreement.
	E.  Lease Approval and Processing
	The lease will be distributed by DFCM for approval signatures and processing.

KEY:  leases, leasing services
Date of Enactment or Last Substantive Amendment:  March 3, 1995
Notice of Continuation:  September 7, 2017
Authorizing, and Implemented or Interpreted Law:  63A-5-103 et seq.