AN
ACT Relating to long-term leases of real estate on behalf of state agencies;
and reenacting and amending RCW 43.82.010.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
43.82.010 and 1994 c 264 s 28 and 1994 c 219 s 7 are each reenacted and amended
to read as follows:
(1)
The director of general administration, on behalf of the agency involved, shall
purchase, lease, lease purchase, rent, or otherwise acquire all real estate,
improved or unimproved, as may be required by elected state officials,
institutions, departments, commissions, boards, and other state agencies, or
federal agencies where joint state and federal activities are undertaken and
may grant easements and transfer, exchange, sell, lease, or sublease all or
part of any surplus real estate for those state agencies which do not otherwise
have the specific authority to dispose of real estate. This section does not
transfer financial liability for the acquired property to the department of
general administration.
(2)
Except for real estate occupied by federal agencies, the director shall
determine the location, size, and design of any real estate or improvements
thereon acquired or held pursuant to subsection (1) of this section.
Facilities acquired or held pursuant to this chapter, and any improvements
thereon, shall conform to standards adopted by the director and approved by the
office of financial management governing facility efficiency unless a specific
exemption from such standards is provided by the director of general
administration. The director of general administration shall report to the
office of financial management annually on any exemptions granted pursuant to
this subsection.
(3)
The director of general administration may fix the terms and conditions of each
lease entered into under this chapter, except that no lease shall extend
greater than twenty years in duration. The director of general administration
may enter into a long-term lease greater than ((five)) ten years
in duration upon a determination by the director of the office of financial
management that the long-term lease provides a more favorable rate than would
otherwise be available, it appears to a substantial certainty that the facility
is necessary for use by the state for the full length of the lease term, and
the facility meets the standards adopted pursuant to subsection (2) of this
section. The director of general administration may enter into a long-term
lease greater than ten years in duration if an analysis shows that the
life-cycle cost of leasing the facility is less than the life-cycle cost of
purchasing or constructing a facility in lieu of leasing the facility.
(4)
Except as permitted under chapter 39.94 RCW, no lease for or on behalf of
any state agency may be used or referred to as collateral or security for the
payment of securities offered for sale through a public offering. Except as
permitted under chapter 39.94 RCW, no lease for or on behalf of any state
agency may be used or referred to as collateral or security for the payment of
securities offered for sale through a private placement without the prior
written approval of the state treasurer. However, this limitation shall not
prevent a lessor from assigning or encumbering its interest in a lease as
security for the repayment of a promissory note provided that the transaction
would otherwise be an exempt transaction under RCW 21.20.320. The state
treasurer shall adopt rules that establish the criteria under which any such
approval may be granted. In establishing such criteria the state treasurer
shall give primary consideration to the protection of the state's credit rating
and the integrity of the state's debt management program. If it appears to the
state treasurer that any lease has been used or referred to in violation of
this subsection or rules adopted under this subsection, then he or she may
recommend that the governor cause such lease to be terminated. The department
of general administration shall promptly notify the state treasurer whenever it
may appear to the department that any lease has been used or referred to in
violation of this subsection or rules adopted under this subsection.
(5)
It is the policy of the state to encourage the ((collocation)) colocation
and consolidation of state services into single or adjacent facilities,
whenever appropriate, to improve public service delivery, minimize duplication
of facilities, increase efficiency of operations, and promote sound growth
management planning.
(((5)))
(6) The director of general administration shall provide coordinated
long-range planning services to identify and evaluate opportunities for ((collocating))
colocating and consolidating state facilities. Upon the renewal of any
lease, the inception of a new lease, or the purchase of a facility, the
director of general administration shall determine whether an opportunity
exists for ((collocating)) colocating the agency or agencies in a
single facility with other agencies located in the same geographic area. If a
((collocation)) colocation opportunity exists, the director of
general administration shall consult with the affected state agencies and the
office of financial management to evaluate the impact ((collocation)) colocation
would have on the cost and delivery of agency programs, including whether
program delivery would be enhanced due to the centralization of services. The
director of general administration, in consultation with the office of
financial management, shall develop procedures for implementing ((collocation))
colocation and consolidation of state facilities.
(((6)))
(7) The director of general administration is authorized to purchase,
lease, rent, or otherwise acquire improved or unimproved real estate as owner
or lessee and to lease or sublet all or a part of such real estate to state or
federal agencies. The director of general administration shall charge each
using agency its proportionate rental which shall include an amount sufficient
to pay all costs, including, but not limited to, those for utilities,
janitorial and accounting services, and sufficient to provide for contingencies;
which shall not exceed five percent of the average annual rental, to meet
unforeseen expenses incident to management of the real estate.
(((7)))
(8) If the director of general administration determines that it is
necessary or advisable to undertake any work, construction, alteration, repair,
or improvement on any real estate acquired pursuant to subsection (1) or (((6)))
(7) of this section, the director shall cause plans and specifications
thereof and an estimate of the cost of such work to be made and filed in his or
her office and the state agency benefiting thereby is hereby authorized to pay
for such work out of any available funds: PROVIDED, That the cost of executing
such work shall not exceed the sum of twenty-five thousand dollars. Work,
construction, alteration, repair, or improvement in excess of twenty-five
thousand dollars, other than that done by the owner of the property if other
than the state, shall be performed in accordance with the public works law of
this state.
(((8)))
(9) In order to obtain maximum utilization of space, the director of
general administration shall make space utilization studies, and shall
establish standards for use of space by state agencies. Such studies shall
include the identification of opportunities for ((collocation)) colocation
and consolidation of state agency office and support facilities.
(((9)))
(10) The director of general administration may construct new buildings
on, or improve existing facilities, and furnish and equip, all real estate
under his or her management. Prior to the construction of new buildings or
major improvements to existing facilities or acquisition of facilities using a
lease purchase contract, the director of general administration shall conduct
an evaluation of the facility design and budget using life-cycle cost analysis,
value-engineering, and other techniques to maximize the long-term effectiveness
and efficiency of the facility or improvement.
(((10)))
(11) All conveyances and contracts to purchase, lease, rent, transfer,
exchange, or sell real estate and to grant and accept easements shall be
approved as to form by the attorney general, signed by the director of general
administration or the director's designee, and recorded with the county auditor
of the county in which the property is located.
(((11)))
(12) The director of general administration may delegate any or all of
the functions specified in this section to any agency upon such terms and
conditions as the director deems advisable.
(((12)))
(13) This section does not apply to the acquisition of real estate by:
(a)
The state college and universities for research or experimental purposes;
(b)
The state liquor control board for liquor stores and warehouses; and
(c)
The department of natural resources, the department of fish and wildlife, the
department of transportation, and the state parks and recreation commission for
purposes other than the leasing of offices, warehouses, and real estate for
similar purposes.
(((13)))
(14) Notwithstanding any provision in this chapter to the contrary, the
department of general administration may negotiate ground leases for public
lands on which property is to be acquired under a financing contract pursuant
to chapter 39.94 RCW under terms approved by the state finance committee.
