Utah Code 63A-5b-802. Leasing responsibilities of the director
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(1) The director shall:
Terms Used In Utah Code 63A-5b-802
- Agency: means a board, commission, institution, department, division, officer, council, office, committee, bureau, or other administrative unit of the state, including the agency head, agency employees, or other persons acting on behalf of or under the authority of the agency head, the Legislature, the courts, or the governor, but does not mean a political subdivision of the state, or any administrative unit of a political subdivision of the state. See Utah Code 63A-1-103
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- Director: means the division director, appointed under Section
63A-5b-302 . See Utah Code 63A-5b-102 - Division: means the Division of Facilities Construction and Management created in Section
63A-5b-301 . See Utah Code 63A-5b-102 - Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- High-cost lease: means a real property lease that:(2)(a) has an initial term including any agency optional term of 10 years or more; or(2)(b) will require lease payments of more than $5,000,000 over the term of the lease, including any agency optional term. See Utah Code 63A-5b-801
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Leasing agency: means a department, commission, board, council, agency, institution, officer, corporation, fund, division, office, committee, authority, laboratory, library, unit, bureau, panel, or other administrative unit of the state. See Utah Code 63A-5b-801
- Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
- Property: includes both real and personal property. See Utah Code 68-3-12.5
- Significant lease terms: includes the duration of the lease, the frequency of the periodic payments, a renewal clause, a purchase option, a cancellation clause, a repair and maintenance clause, and a restriction on use of the property. See Utah Code 63A-5b-801
- State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
(1)(a) prepare and submit a yearly request to the governor and Legislature for a designated amount of square footage by type of space to be leased by the division for that fiscal year;(1)(b) lease, in the name of the division, all real property space to be occupied by a leasing agency;(1)(c) in leasing space:(1)(c)(i) use a process consistent with the best interest of the state, the requirements of the leasing agency, and the anticipated use of the property; and(1)(c)(ii) comply with any legislative mandates contained in the appropriations act or other legislation;(1)(d) apply the criteria contained in Subsection (1)(f) to prepare a report evaluating each high-cost lease at least 12 months before the lease expires;(1)(e) evaluate each lease under the division’s control and apply the criteria contained in Subsection (1)(f), as applicable, to evaluate the lease;(1)(f) in evaluating leases:(1)(f)(i) determine whether the lease is cost-effective when the needs of the leasing agency to be housed in the leased facilities are considered;(1)(f)(ii) determine whether another option such as construction, use of other state-owned space, or a lease-purchase agreement is more cost-effective than leasing;(1)(f)(iii) determine whether the significant lease terms are cost-effective and provide the state with sufficient flexibility and protection from liability;(1)(f)(iv) compare the proposed lease payments to the current market rates, and evaluate whether the proposed lease payments are reasonable under current market conditions;(1)(f)(v) compare proposed significant lease terms to the current market, and recommend whether these proposed terms are reasonable under current market conditions; and(1)(f)(vi) if applicable, recommend that the lease or modification to a lease be approved or disapproved;(1)(g) based upon the evaluation, include in the report recommendations that identify viable alternatives to:(1)(g)(i) make the lease cost-effective; or(1)(g)(ii) meet the leasing agency’s needs when the lease expires; and(1)(h) upon request, provide the information included in the report to:(1)(h)(i) the leasing agency benefitted by the lease; and(1)(h)(ii) the Office of the Legislative Fiscal Analyst.
(2) The director may:
(2)(a) subject to legislative appropriation, enter into a facility lease with a term of up to 10 years if the length of the lease’s term is economically advantageous to the state; and
(2)(b) subject to legislative appropriation, enter into a facility lease with a term of more than 10 years if the length of the lease’s term is economically advantageous to the state.