RULE 017.00.08-001 - Minimum Standards and Criteria

RULE 017.00.08-001. Minimum Standards and Criteria

Arkansas

Building

Authority

MINIMUM STANDARDS & CRITERIA

AUGUST 1, 2008

SECTION ONE GENERAL/DEFINITIONS

1-100 SCOPE

This document shall be known as the Arkansas Building Authority Minimum Standards and Criteria (MSC). Copies of this manual may be obtained from Arkansas Building Authority (ABA). It may also be examined in the Office of the Secretary of State or at the Office of the Circuit Clerk in any county in the State. ABA maintains a website at "www.arkansasbuildingauthority.com". The MSC may also be reviewed or downloaded from this site. The purpose of this document is to establish standards and procedures as required by Ark. Code Ann. § 22-2-101 et seq. and by other applicable laws.

1-101 PURPOSE

ABA has various duties and responsibilities involving capital improvements, real estate transfers and leases. Capital improvements are overseen and managed in part by the Construction, Design Review and Building Operations Sections. The Real Estate Services Section oversees the state leasing of publicly or privately owned space as well as transfers of State real property.

1-102 FUNCTION

Although ABA has specific tasks, which it carries out on a daily basis, it also has within its organization the expertise to serve various state entities in the resolution of special problems relating to state-owned and leased buildings. Other functions of ABA are described by law and as determined by the Director or the Council, or both.

1-103 ORGANIZATION

(A) ABA functions under the guidance of the Council pursuant to Ark. Code Ann. § 22-2-101 et seq. which is also known as the "Arkansas Building Authority Act," and empowered to establish policies, guidelines, standards and procedures to guide and govern the agency, however in certain instances, ABA may promulgate rules of its own.

(B) The daily operation of the agency is administered by a Director who is appointed by the Governor and confirmed by the Senate. Four sections are established in the ABA with each section having duties as specifically assigned by law and with the administrator of each office being directly responsible to the Director. These sections are: the Building Operations Section, the Construction Section, the Real Estate Services Section and the Design Review Section. The Director may transfer the various duties and functions among the various sections of the agency and effect any other organizational or administrative changes that may be necessary to bring about the efficient and effective implementation of the applicable laws.

1-104 REGULATORY AUTHORITY

The authority of ABA and its Council to issue rules and regulations is established by Ark. Code Ann. § 22-2-101 et seq. and other applicable laws. All agencies within ABA jurisdiction are within the jurisdiction of the MSC, including Institutions of Higher Education who have entered into agreements with ABA pursuant to Ark. Code Ann. § 22-2-113(b) (1).

1-105 GRIEVANCE PROCEDURES

(A) If any person, organization or agency believes they have a non-employee related grievance with ABA due to ABA action(s) or omission(s), they should first attempt to resolve the grievance informally with the Administrator of the ABA Section involved. If this is not possible, the person believing himself to be aggrieved should send a letter to the Administrator explaining his grievance in as much detail as possible and requesting an audience with the Director.

(B) Within five (5) working days of receipt of this letter, the section head or designee must schedule a meeting with the alleged aggrieved person, the Director, the Section Administrator and all other parties directly involved, and notify the alleged aggrieved party and all other parties in writing of the date, time and location of this meeting. This meeting must be set within thirty (30) calendar days of receipt of the letter of grievance. The Director may, at his discretion, conduct the meeting as an informal meeting or a formal hearing. If the grievance cannot be satisfied in one meeting, the Director may schedule as many as three additional meetings within thirty (30) calendar days of the first meeting or he may ask that the grievance be heard at the next regularly scheduled meeting of the ABA Council. If the grievance cannot be resolved in four meetings, with the Director, then it must be submitted to the next regularly scheduled meeting of the Council. Any grievance taken to the Council must be heard according to the by-laws of the Council, and the procedures set forth in the Arkansas Administrative Procedures Act (Ark. Code Ann. § 25-15-201 et seq.).

1-106 DEFINITIONS

(A) As used within the entirety of the Minimum Standard and Criteria, masculine pronouns when used within the following sections shall also include the feminine and legal entities.

(1) Americans with Disabilities Act Accessibility definitions are located in § 2 -1000.

(2) Addendum/Addenda means a supplement or supplements to the bid documents, issued prior to the submission of bids, for the purpose of clarifying, correcting, deleting or adding to the bid documents previously issued.

(3) Agency means any state agency including state boards, commissions, agencies, departments, and institutions of higher learning, which are under the jurisdiction of ABA pursuant to Arkansas laws or regulations.

(4) Alteration means work performed to change the interior arrangement or other physical characteristics of an existing facility or installed equipment so that it can be adapted to a new use.

(5) Bid Documents means all documents associated with the bid process, which includes but are not limited to the advertisement, invitation to bid, instruction to bidders, the bid form, and the proposed contract documents including any addenda issued prior to the receipt of bids.

(6) Bid Formalities means requirements established by statute for bidding that shall not be waived.

(7) Bid Tabulation means a tabulation of all bids received, reflecting bidders name, address, license number (if applicable), amount of bid(s), receipt of bid bond, acknowledgement of addenda, and sub-contractors' names.

(8) Building or Facility means all or any portion of building, structures, equipment, roads, walks, parking lots, parks, sites, or other real property or interest in such property.

(9) Building Operations Administrator means the Arkansas Building Authority Building Operations Section Administrator.

(10) Building Operations Section means the Arkansas Building Authority Building Operations Section.

(11) Capital improvement means all lands, buildings, structures, utilities, on-site and off-site improvements, and other appertaining improvements, existing or future, and all construction, repairs, alterations, demolitions and renovations thereof which are undertaken, owned, operated, or otherwise managed by a state agency except those exempted by law or regulation. However, demolitions used within this meaning, pertains to the bidding/awarding/contracting of such projects and does not in any way abrogate the rules pertaining to the DFA M&R program.

(12) Change Order is defined as an amendment to the contract that is a written authorization executed by the Owner, Design Professional, Contractor, and approved by ABA to change the design or scope of work from the original plans, specifications, or other contract documents. This can include changes in price and time to complete the project. A change order must fall within the original capacity of the project. Upon proper execution and ABA approval, the change order modifies the original contract between Owner and Contractor and becomes part of the contract documents.

(13) Commissioning means a systematic process of ensuring that building systems perform interactively according to the design intent and the Owner's operational needs. This is achieved beginning in the design phase by documenting the design intent and continuing through construction, acceptance, and the warranty period with actual verification of performance, operation and maintenance (O&M) documentation verification and training of operating personnel. (See also re-commissioning and retro-commissioning)

(14) Competitive Bid means bidding by quote from a minimum of three (3) invited bidders for capital improvements where solicitation of bids by formal means is unnecessary due to the quote bid limit. Competitive bids may be solicited by mail, telephone, email, fax or in person by the purchasing agent.

(15) Construction means making or forming an improvement by combining parts, labor, or materials; the erection, alteration, or repair of a structure or physical object under the jurisdiction of ABA.

(16) Construction Administrator means the ABA Construction Section Administrator.

(17) Construction Section means the Arkansas Building Authority Construction Section.

(18) Contract Documents means those documents which comprise a contract in a capital improvement project including but not limited to the owner agency/contractor agreement, the general and supplementary conditions of the contract, plans or drawings or both, specifications, all addenda, modifications, and change orders together with any other items stipulated as being specifically included.

(19) Council means the Arkansas Building Authority Council.

(20) Design Professional means a person or firm who provides professional expertise in order to carry out a capital improvement. Design professionals may include but may not be limited to the following professionals: Planners (land, city, utilities, etc.), Architects, Landscape Architects, Surveyors (land), and Engineers (Consulting and Professional Engineers providing expertise in various licensed fields only that is, civil, electrical, mechanical, structural, sanitary, etc.).

(21) Design Review Section means the Arkansas Building Authority Design Review Section.

(22) Director means the Director of Arkansas Building Authority.

(23) Element means and includes but not limited to an architectural or mechanical component of a building, facility, space, or site, e.g. telephone, curb ramp, door, drinking fountain, and seating.

(24) Final Completion means the agency, with ABA approval, acceptance of a project from the contractor or Lessor upon certification by the design professional, if applicable, that the project is complete and in accordance with the contract documents; final acceptance is confirmed by making the final payment unless otherwise stipulated at the time of making such payment or by letter of notification and rent commencement in leasing situations.

(25) Formal Bid, as used within the Construction Section, means a bid that has been solicited through published plans and specifications in accordance with statutory requirements including; legal advertising stating a bid time, bid date, and bid opening at a published location; bond requirements; wage determination (if applicable), etc. Formal Bid, as used within the Real Estate Services Section means a bid that has been solicited through published specification and criteria, advertised notice stating a bid time and date for a bid opening at a published location.

(26) Formalities means any procedural, administrative, or clerical requirements not required by statute. Formalities may be waived where such waiver is in the best interest of the agency or state. Formalities in bid documents, which contain the word "shall" may be waived where such waiver is in the best interest of the agency and not required by statute.

(27) Improvements means a change or addition that improves the original intended purpose, performance or appearance of an existing facility or equipment.

(28) Intent to Award means a letter to the contractor who has the successful bid for a project stating that it is the owner's intent to award him a contract. Intent to award letters may be issued to assist contractors in obtaining performance bonds prior to issuance of a contract.

(29) Maintenance Work means the repair, but not the replacement, of existing facilities or equipment when the size capacity, type or extent of the existing facility or equipment is not thereby changed or increased.

(30) Minimum Standards and Criteria - and other like phrases means those standards and criteria relating to bidding and requests for proposals, construction, design, maintenance, roofing, transfers of property, including but not limited to the purchasing or selling of property, and leasing of state agencies' capital improvements or leasing of private properties to state agencies or entities as adopted by the Council after appropriate deliberation and where advisable, public hearings, or notice to interested persons and organizations. The Arkansas Building Authority Minimum Standards and Criteria is also referred to as the "MSC."

(31) MSC means the Arkansas Building Authority Minimum Standards and Criteria.

(32) Notice to Proceed means a written notice to proceed with prosecution of the work on a specific project in accordance with an ABA approved contract.

(33) Performance Specification means a specification which generally describes the characteristics of the item required, e.g. the style, type, quality, character, economy of operation and purpose to be served by the item and the results required of the item provided. It does not restrict the bidder to a specific brand, make, or manufacturer, nor does it tell the Contractor how to achieve the required result.

(34) Proprietary Specifications means a specification that limits or restricts the bidder to two (2) sources only for a product or service. Specifications are considered proprietary when:

(1) Only two (2) manufacturers or suppliers can provide an acceptable product or system and where no substitutions are allowed;

(2) Only one manufacturer can provide an acceptable product or service but two (2) or more vendors or suppliers can compete to provide the product or system.

(35) Real Property means building(s) or land(s) or both; real estate.

(36) Real Estate Services Section means the Arkansas Building Authority Real Estate Services Section.

(37) Real Estate Services Administrator means the administrator of the ABA Real Estate Services Section.

(38) Re-Commissioning means the process of re-verifying the performance of building systems that have been commissioned previously to ensure the systems continue to operate according to the design intent or current operating needs. Re-commissioning may be initiated periodically or in response to building renovation or a change in usage.

(39) Retro-Commissioning means the process of commissioning existing building systems that were not commissioned when originally constructed. It is a process to ensure building systems perform interactively according to the design intent and/or meet the Owner's current operational needs. This is achieved by documenting the design intent where possible and the current operational needs measuring the existing performance, implementing necessary operational and/or system modifications, followed by actual verification of performance, operation and maintenance (O&M) documentation verification, and training of operating personnel.

(40) Repair: The necessary work to restore a facility component or fixed asset to its intended use.

(41) Request for Proposals means all documents, whether attached or incorporated by reference, utilized for soliciting proposals for negotiated work or services.

(42) ABA means Arkansas Building Authority.

(43) Shall as written in the pages of the Arkansas Building Authority Minimum Standards and Criteria denotes a mandatory requirement. Formalities in bid, requests for proposal, or request for qualification documents, which contain the word "shall", may be waived where such waiver is in the best interest of the agency and not a requirement by law.

(44) Site means a parcel of land bounded by a property line or a designated portion of a public right-of-way.

(45) Site Improvements means various improvements including but not limited to landscaping, paving for pedestrian and vehicular ways, outdoor lighting, recreational facilities, and similar site additions.

(46) Split Purchases means dividing a capital improvement purchase into various components to avoid bidding procedures.

(47) Standard Professional Services Contract means the agreement, along with any initial or subsequent attachments or amendments, between the agency and the design professional pursuant to Ark. Code Ann. § 19-11-1001.

(48) Sole Source means a product, item of equipment, service or combination of these which is available from only one manufacturer, vendor or provider in an area to the exclusion of others (e.g. within the constraints of the particular project whether geographic, time, material, software support, or other). If products, equipment, or services are franchised to only one vendor in an area, the vendor would be considered a Sole source for such products, equipment or services specified for the project.

(49) State Architect means the ABA State Architect.

(50) State Engineer means the ABA State Engineer.

(51) Substantial Completion means the project contracted for or a designated portion thereof, is sufficiently complete, in accordance with the contract documents, so the owner agency may occupy the work, or designated portion thereof, for the use for which its is intended despite minor defects to be corrected or minor incomplete aspects of the work.

(52) Work means all labor, materials, equipment, and other services necessary to perform the complete services, or any separate identifiable part thereof, or to provide the completed product required by the Contract. In construction, work includes, but is not limited to performing services, furnishing labor, furnishing and incorporating materials and equipment into the construction to provide the entire completed construction, or the various separately identifiable parts thereof, as required by the contract documents.

(B) Questions relating to these definitions should be addressed to the administrator of the Section involved.

SECTION FOUR

BUILDING OPERATIONS

4-100 INTRODUCTION

The following minimum maintenance standards & criteria are established pursuant to Ark. Code Ann. § 22-2-101 et. seq. These standards are designed to address the areas of management, maintenance and operation of all public buildings and capital improvements in order to provide a clean, safe and comfortable working environment for employees and the public of the State of Arkansas. Any reference to the words "the Section" within Section Four shall mean the Building Operations Section

4-101 PREVENTIVE MAINTENANCE REQUIREMENTS

(A) In an effort to sustain safe and comfortable working environment in state owned buildings, the following requirements shall be performed pursuant to applicable state and federal laws and regulations; and in a manner deemed appropriate by the Agency director responsible for the maintenance and operations of the state owned building:

(1) Work Authorization System: The Building's Maintenance Office shall maintain a formal written work-order system.

(2) Equipment Inventory: Building maintenance offices shall have a complete written inventory of building equipment requiring regular maintenance attention. This inventory should include, but should not be limited to air conditioning machines, boilers, pumps, fans, air compressors and other building service system components.

(3) Technical Library: Each building maintenance office shall maintain a library of as-built (record) drawings which show structural, architectural plan, mechanical systems, electrical systems, site details and manufacturers operating manuals necessary to operate and maintain the physical plant.

(4) Plant Logs: All buildings with central heating and cooling systems shall implement the use of daily logs to record boiler and water chiller operations. Logs should indicate the unit number and location of the equipment and in addition be initialed and dated. The building maintenance official is responsible for development of log forms to the building's specific mechanical and electrical systems. Information on the log sheet shall include but is not limited to steam pressure, sight glass on boilers, water temperature (out and return), blow down, chemical test, safety valve test, low water test, pumps checked, and the night set back status for boilers; the date and time for air temperature for ambient space, the compressors' oil level/temperature reservoir/leaving the cooler/pressure, the gears' oil level/temperature, chillers' water temperature in/out, refrigerators' level/pressure/temperature, the condensers' water temperature in/out and refrigerators' pressure for chillers.

(5) Equipment Maintenance Records: Building maintenance offices shall have a preventive maintenance program on all equipment requiring regular maintenance attention. This program should consist of written schedules of regular preventive maintenance assignments and documentation reflecting maintenance is being performed on a regular basis. Building maintenance offices shall also maintain adequate records of repair history of major components of equipment. In addition, if the Owner Agency utilizes maintenance contracts or extended warranties on equipment or materials, (beyond the one year contractor warranty for new construction), the maintenance offices shall maintain a list of the contacts (name and phone numbers) for the warranties along with a description of what the contract or warranty covers and the expiration date of the warranty. Maintenance staffs are expected to implement timely repair and maintenance procedures that are adequate to preserve the serviceability of all building systems.

(6) Chemical Water Treatment: All buildings with central heating and cooling systems shall use a water treatment program to prevent corrosion, scale, and algae build-up. Each building maintenance office shall maintain a record of water test analysis performed on a monthly basis during the respective heating and cooling seasons.

(7) Painting: Facilities shall be painted on an as needed basis to preserve surfaces against deterioration.

(8) Roof Maintenance: Maintenance offices shall inspect all building roofs on a periodic basis and maintain a record of those inspections. Built-up roofs shall be inspected twice a year. All roofs shall be inspected immediately after severe weather events. Maintenance staffs are expected to repair or cause to be repaired on a timely basis and implement maintenance procedures of roofs, roof drains, scuppers, base flashing, and gutters that are adequate to prevent deterioration of the roof and building.

(9) Masonry Maintenance: Masonry walls will be water-proofed, caulked, repainted and repaired with sufficient frequency to preserve surfaces and maintain a reasonably attractive appearance.

4-102 BUILDING CLEANING AND GENERAL BUILDING MANAGEMENT

(A) The following requirements and schedules shall be performed pursuant to applicable state and federal laws and regulations; and in a manner deemed appropriate by the Agency director responsible for the maintenance and operation of the state owned building:

(1) Building Cleaning: All buildings shall be cleaned with adequate frequency and diligence to protect the public health, and maintain the aesthetics of interior surfaces.

(2) Emergency Procedures: All buildings shall have an evacuation procedure to follow in the event of fire, bomb threats, or other emergencies. Building management shall conduct a fire drill at least once each year. Evacuation plans shall be posted in conspicuous locations along all evacuation routes to allow occupants and visitors to quickly determine the nearest path of egress in an emergency.

(3) Landscape Maintenance: All maintenance offices shall maintain grounds, malls, plazas, walks, parking lots, and streets in a manner designed to preserve the state's investment in landscaping.

(4) Energy Management: All building management offices shall have in place an ongoing energy management program, designed to operate the facility/facilities in an efficient and economical manner. Set points should be inspected on an as needed basis but no less than once per quarter.

4-103 BUILDING RULES AND REGULATIONS:

(A) Each Owner Agency Director shall be responsible for developing and administering the building rules and regulations for his building and property. The rules and regulations should be provided to the building tenants in a written and bound form. The following requirements and schedules shall be performed pursuant to applicable state and federal laws and regulations; and in a manner deemed appropriate by the owner Agency director responsible for the maintenance and operation of the building.

(1) Parking: Parking should not be allowed in fire lanes.

(2) Weapons: Pursuant to Arkansas Code Annotated § 5-73-306(10) concealed weapons are prohibited to be carried into any state office. Law Enforcement, Law Enforcement Retirees, and Parole Board Members who meet the criteria under Ark. Code Ann. § 5-73-301 et seq. (Law Enforcement), § 12-15-202 (Law Enforcement Retirees) and § 16-93-209 (permits issued to Parole Board Members) may carry a concealed handgun onto state property. This prohibition does not affect items considered to have historic, archival or educational purposes and have been approved by the director of the agency where the item will be stored or exhibited.

(3) Alcoholic Beverages and Controlled Substances: No alcoholic beverages or controlled, non-prescribed substances are allowed inside the building or on property grounds. Alcoholic beverages should not be allowed on the property (building or grounds) except as authorized by state laws, regulations or governor's directives.

(4) Disturbances: No conduct shall be allowed which creates a loud or unusual noise or nuisance; or which obstructs the usual use of entrances in an emergency; or in any manner creates a security or safety risk or endangers the safety of the building tenants or the public.

(5) Posting and Distribution of Materials: No signs shall be posted in the common or public areas of the building except as authorized by Building Operations officials.

(6) Assembly: Agency Heads, or Designees, reserve the right to: limit the number of persons entering their office area; demand that the premises be vacated and, if needed, call authorized Law Enforcement Officers to assist in such.

(7) Preservation of Property: The improper disposal of rubbish on property; the willful destruction of or damage to property; the theft of property; the creation of any hazard on property; the throwing of articles of any kind from or at the building or climbing on any part of a building or structure shall be prohibited.

(8) Persons entering ABA buildings and facilities shall upon request:

(i) sign in by providing both full (not initials) first and last name; and

(ii) provide proper identification.

(iii) Entry may be refused to anyone not in compliance with (i) or (ii), or both.

SECTION FIVE

REAL ESTATE SERVICES

5-100 PURPOSE

This manual has been compiled to provide every state agency, board or commission with written standards for the most economical and efficient utilization of space and with written procedures to be followed in leasing that space. Any reference to the words "the Section" within Section Five shall mean the Real Estate Services Section.

5-101 REAL ESTATE SERVICES RESPONSIBILITY

Pursuant to the Arkansas Building Authority Act (Ark. Code Ann. § 22-2-102 et seq.), the Real Estate Services Section of ABA is the leasing agency for all state agencies (agencies, boards, commissions and institutions of higher education).

(A) The Section has the responsibility to act as the leasing agent for all state agencies, and component parts thereof, acting either as Lessor or Lessee, including space in all private sector and public buildings.

(B) The Section shall with input from the agency, evaluate, determine and approve the needs of the Agency. The Section shall locate appropriate rental space, and act as the agent for the Agency in negotiation of the lease for such rental space.

(C) Pursuant to Ark. Code Ann. § 22-2-114(a) (2), all state agencies shall execute and enter into leases with the Section when so requested for the leasing or renting of space and facilities in any public buildings.

(D) Any Agency or component thereof, making a request for lease space shall submit justification to the Section in written form with the signature of the agency's Director or an authorized designee thoroughly outlining information which includes but is not limited to the Agency division(s) to occupy the space, the date of the request and the date the space is needed, the name and phone number of the agency contact person, the type of space needed, location needs, special location factors, terms desired, budgeted amounts for rents, operational costs, and anticipated moving expenses, alterations or special requirements, and parking requirements. This written request shall be submitted ninety (90) days prior to the date the space is needed and shall contain the following additional information:

(1) List of positions to occupy the space and the functions of each position by state employment grade.

(2) List of special requirements such as telecommunications room, library, hearing room, conference room, etc. and the function of those requirements. List any other pertinent information that would affect the planning of the space needs and the efficient operation of the Agency, including special HVAC requirements, i.e. ventilation for specific areas.

(3) List of storage requirements. Requests not containing this information shall be returned to the Agency without action. The Section shall locate appropriate space and negotiate a lease between the facility owner and the Agency. If space is available in a public building, the lease will be negotiated for placement in the public building. If space is not available in a public building, then the Section shall obtain adequate space in a privately owned facility. It is unlawful for agencies to enter into any lease negotiations with any building owner or manager without the approval of the Section (See Ark. Code Ann. § 22-2-114(a)(1). If such negotiations take place, the lease shall not be ratified. If the Agency requests the lease document be ratified, the Agency shall be required to appear before the ABA Council at the next regular meeting to explain their actions and the reasons for ratification.

(E) Standards for the utilization of space and the allocation of space to state agencies have been adopted by the Council and are a part of these standards as found in Section 5-104. These standards shall be used as a basis for all planning, leasing of space, allocation of space, or advising state agencies on leasing considerations. When available, the Design Review Section may provide or assist in space planning services through the Section.

(F) The Council has adopted a standard lease form for leasing of privately owned facilities and a standard form for leasing of ABA owned properties. Copies of these forms are located at the end of this section.

(G) Preferences to leased property within a Central Business District shall be granted pursuant to Ark. Code Ann. § 22-2-114(a)(5)(A). The Section shall grant preferences in accordance with applicable laws and in the following manner:

GUIDELINES FOR CONSIDERATION OF LEASE PROPERTIES:

(1) Establish a rating system for Evaluation:

5 - Excellent "As is" condition meets applicable codes and compliance; premises can easily conform to state's need and meets space criteria.

4 - Very Good Some modifications are necessary for occupancy but are reasonable and achievable; can conform to the state's need and criteria.

3 - Acceptable Numerous modifications and building system replacement or upgrade are necessary to meet codes and compliance, but achievable. Some compromise may be necessary in space planning to satisfy need.

2 - Fair Extensive modifications required to meet criteria; space planning for maximum efficiency of space will be compromised; restricting flexibility

1 - Not Acceptable Modifications required far exceed the feasibility to conform. Structurally inferior and not adaptable to meet the space need and criteria.

(2) Survey Area for Available Properties:

Upon receipt of space request, the Real Estate Section shall conduct a visual survey and consult the Available Space Database maintained by the Section for properties available for Lease. The Section may choose to advertise the space through the local newspaper and/or ABA web page (www.arkansasbuildingauthority.com).

(3) Evaluate Property:

(a) Survey all properties by visual inspection and assess condition of building systems;

(b) Obtain plans or specifications from the property owner if available;

(c) Determine property's ability to conform to space need;

(d) Compile a summary of modifications required to conform to state needs.;

(4) Obtain Proposal:

(a) Provide property owner a summary of observed modifications (additional modifications may be necessary with more extensive inspection);

(b) Provide property owner a description of the space request and provide specifications and floor plan if available;

(c) Obtain a lease proposal inclusive of the initial recommended modifications and lease criteria; and

(d) Confirm terms with property owner/agent.

(5) Rating Properties by Categories:

(a) Divide the available properties into one of two categories:

(1) Located within the Central Business District (CBD)

(2) Located outside the CBD (non-CBD)

(b) Rate the properties according to the established rating system in 1.

(c) The following factors should be taken into consideration:

(1) Cost-effectiveness by the State to meet the space criteria

(2) Level of compromise by the State to meet the need

(3) Restrictions or impairments in use or access

(d) Determine the highest rated property for each category (CBD/non-CDB)

(6) Comparison of Proposals

The highest rated CBD and non-CBD properties will be compared. If the CBD property meets all criteria and does not restrict or impair the services for which the lease is intended or the rental rates are justified in a non-CBD location, the CBD property will be granted the preference.

Nothing in the above and foregoing section will prevent the State from leasing with a non-CBD property owner in accordance with Ark. Code Ann. § 22-2-114(a)(5)(A).

(H) The Section may utilize a Request for Proposal (RFP) selection process when locating lease options in response to an Agency's request for lease space in excess of 5,000 square feet and for a term up to six (6) years. The Section will advertise through local newspapers and the ABA Website, such leasing needs; and will provide RFP packages to any property owners or managers interested in submitting a proposal in response to the RFP inquiry. This procedure awards based on selected criteria evaluation. Those proposals submitted with the proposed physical address found within the Central Business District (CBD) of the requested city shall earn the maximum weighted value for the "Location" criteria of the evaluation portion of the RFP selection process unless otherwise stated. The lease award shall be given to the proposal which, in the opinion of the Section and the Agency, serves the best interests of the State and is in accordance with applicable laws and regulations. Nothing in this section shall prohibit the Section from negotiating directly with a Lessor without utilizing the RFP process if it determines that it is in the State's best interest to do so.

(I) The Section may also utilize a formal bid procedure for the leasing of new construction(contract is between the private lessor and the prime contractor) when locating lease options in response to an Agency's request for lease space in excess of 10,000 square feet and for a term of ten (10) years. The bidding and award of contracts under the public works laws do not apply. The Section will advertise this request for formal bids through local newspapers and the ABA Website and will provide formal bid packages to any interested party. This is a two step process:

(1) the site submittal(s) and approval(s); and

(2) submission of a bid consisting of a price per square foot. Bidders who obtain an option to purchase of sites they propose in step #1 above, shall obtain ownership of the property pursuant to the time frame established within the bid criteria upon acceptance of their bid. The State reserves the right to reject any or all bids and to waive any formalities. At the public bid opening, the Section shall open and compare the bids and thereafter award the lease to the lowest responsible bidder, but only if it is the opinion of the Section and the Agency that the best interests of the State would be served thereby and in accordance with applicable laws and regulations. Nothing in this section shall prohibit the Section from negotiating directly with a Lessor without utilizing the bid process if it determines that it is in the State's best interest to do so.

5-102 DETERMINATION BY ABA OF DESIRABILITY OF AVAILABLE SPACE

(A) Square Footage: A comparison of the square footage required to satisfy Agency needs with the square footage available in a given facility. Space leased shall be no more than 5% less nor 15% greater than stated Agency needs. Square footage required shall be determined according to the § 5-104 of this document.

(B) Analysis of Building Facilities: An analysis of the quality and condition of building facilities such as elevators, toilets, parking, public traffic areas, location relative to associated agencies, mechanical systems, availability of storage and proximity to the other related offices of association.

(C) Operation cost of occupying the space for the term of the lease:

(1) Annual square foot cost of the leased space;

(2) Cost of interior modifications or TI Allowance (tenant improvement) provided by Lessor.

(3) The availability of all utility services and their estimated cost, if not included in the lease through utility history, if available by the Lessor.

(4) Cost of janitorial services if not included in the lease.

(5) Any other factors which would affect the actual cost to the Agency, i.e. parking, additional electrical requirements, custom furniture and fixtures, etc.

(D) Time factors affecting need for space.

(E) Capacity to accommodate future need of the Agency for space and services.

(F) Handicapped Accessibility and Special Accommodations: All buildings leased or rented in whole or in part for use by the state under any lease or rental agreement entered into shall be in accordance with the contractual terms and applicable accessibility guidelines. In all instances in which a Lessee employs an individual or individuals who require an emergency evacuation auxiliary aid to safely exit state-owned property during emergency situations, the Lessee is required to, and is solely responsible for obtaining, maintaining and training in the use of the said auxiliary aid. Any necessary installation of said device shall be coordinated with the approval of the Lessor.

(G) All leases shall be made pursuant to the Governor's Executive Order 98-04. Disclosures shall be made pursuant to the order and all necessary forms shall be completed and sent to the Section.

(1) All Lessors and Lessees shall be required to complete a disclosure certification form regarding their utilization of services of any real estate broker(s) for any and all lease negotiations.

5-103 ABA POLICY FOR LEASING

(A) Pursuant to Ark. Code Ann. § 22-2-114(a)(1), no Agency, board, or commission may renew or negotiate a lease, the Section is the responsible leasing agent for all state agencies.

(B) Requests for lease action (whether lease renewals or request for new or additional space) shall be submitted to the Section at least ninety (90) days prior to the effective date of the space request or change is needed. The Request shall be submitted to the Section and shall include the information indicated in paragraph 5-101(D) of this document. This information should be as complete and accurate as possible since it will be used to determine space allocation to the Agency.

(C) All leases for real property, including but not limited to offices, parking, storage, warehouses, land, antenna and towers must be approved by the Section and require a Lease Number assigned by the Section. The approved lease number must be used by all agencies.

The only exception shall be for short term use of facilities. Memorandums of Understanding or other type of agreements should be utilized. Examples of these types of agreements that are exempt from the Section approval are:

(1) Classrooms (from 1-9 months)

(2) Per Seat Fees

(3) Per Semesters

(4) School Years (9 months)

(5) Short Term Specialty Classes

(6) Golf, Bowling, Gyms, Spa's for classes

(7) Conference/Meeting Rooms (from 1-10 days)

(8) Workshop/Seminars

(9) Fair Booths

(10) Testings

(11) Graduations

(12) Ball Fields (including seasonal rentals)

(13) Short-term Storage (less than 1 year)

(14) Modular Units (less than 1 year)

(a) Memorandum of Understanding Exemption: Lease of modular units (portable buildings) for a period of 1 year or more shall be submitted to the Section in the same manner as traditional office space and shall require ABA approval. ABA recommends the lease of modular units should be planned on a temporary basis and not be utilized as a long term or permanent use of space. Examples of temporary use are as follows: utilization for disaster relief, while a facility is undergoing a capital improvement, temporary classroom space due to over-enrollment or temporary use for a site specific special program.

(D) Lease space will be provided to or negotiated for agencies on the basis of the Agency's submittal of the completed request for lease space with an authorizing signature and the Agency's justification for the existing need.

(E) Space in public buildings shall be negotiated pursuant to Ark. Code Ann. § 22-2-114. The number of moves will be kept to a minimum and efforts will be made that functional area remain as contiguous space.

(F) All leases may be terminated on thirty (30) days written notice to the Lessor if State or Federal appropriations of funds are insufficient for the Agency to continue the operations for which the leased premises are being used.

(G) When negotiating rental rates, the State will not exceed the rental rate prevailing in the community for comparable facilities. Annual square foot price limits will be based on current market conditions in a locality, and rental rates will vary from city to city in the state. State policy for rental rates will reflect the state's position as a prime tenant. New Leases shall be supported by documentation which will reflect the lease rates available for comparable facilities in the market at the time the new lease was negotiated.

(H) It is preferable for the private sector Lessor to furnish all utilities except telephone/data and to furnish janitorial service. Private sector Lessors shall be required to provide maintenance of the building and building systems in all circumstances. However, in those instances involving consideration in the nature of a public advantage, in which the lease is negotiated in favor of the State in such instances as a significant reduction in rent or an exchange-in-services arrangement, or both, the requirement that the private sector Lessor provide all maintenance for the building and building systems, or casualty insurance may be exempted if it is determined to be in the best interests of the State.

(I) All State Agencies must receive invoices submitted by the Lessor to process rental vouchers. While rent may be paid monthly or quarterly, prior ABA approval is required for annual payment(s) and shall be reflected in the lease.

(J) Rentable area shall be computed by the standard method of floor measurement as adopted by the Building Owners and Managers Association International. ANSI 265 1-1980, as amended.

(K) Rental overlap, between the beginning date of a new lease for different premises and the last date of occupancy for existing premises, shall be held to a minimum and shall only occur when moving arrangements require an overlap.

(L) The Section will serve as contact between the Agency and Lessor or as the contact between the Agency and the tenant when the Agency is the Lessor in all matters pertaining to the lease prior to lease execution. Agencies shall be permitted to contact the Lessor for day-to-day issues, including but is not limited to invoices/payments, routine maintenance and repairs, and annual inspections. Agencies shall report any and all non-routine maintenance and repair issues to the Section. The Section shall act as the liaison between the two parties should lease interpretation and terms enforcement become necessary.

(M) Whenever possible, the Section shall lease space requiring only renovations necessary to accommodate the requesting Agency. Renovations shall always be held to the absolute minimum necessary to allow the Agency to function in the leased space. When renovation is necessary, the cost of such renovation shall be borne by the Lessor except when such renovation is to accommodate specific agency functions, which would be of no use or value to future tenants. It is the policy of the State to encourage the Lessor to provide any special alterations and improvements required to make the space suitable for the requesting agency, and to recapture this expenditure over the term of the lease as part of the rent. Lump sum payment by the State for improvements shall require prior approval of ABA. After the initial lease is in place and during the lease term, if the Agency requests tenant improvements, these guidelines must be adhered to:

(1) Request for Lease Action form containing information in 5-101(D);

(2) For work estimated under $5,000.00, the requirements in (1) must be approved by the Section;

(3) For work whereby the agency contracts (outside of the Lease Agreement and payment is not made through rent) for the work directly with a Contractor and is estimated over $5,000.00 but less than $20,000.00, the requirements in (1) must be approved by the Section and the Agency must submit it to the Section along with: a bid tabulation of three (3) competitive bids in which all taxes, permit fees are inclusive in the bids; bid specifications and drawings; any disclosure forms required under Executive Order 98-04; any required bonds and the purchase order. Any required notice of legal advertising must be made in accordance with Arkansas laws and rules; and

(4) All work whereby the agency directly contracts (outside of the Lease Agreement and payment is not made through rent) for the work with a prime contractor and is estimated over $20,000.00 must be formally bid in accordance with Arkansas laws and regulations including but not limited to the public works laws. The requirements found in (3) above apply and must be submitted to the ABA Construction Section.(1) Through (4) only can occur after the lease has been amended to allow the State to make these alterations if the current lease does not authorize these type improvements. All of #1, #2, and #3 and #4 would apply when the State pays a lump sum for the work to a contractor, not to the Lessor. The State can contract directly with the Lessor only when the Lessor held that right in the State approved lease or in an amendment. In these circumstances, the Agency would use sole source purchasing procedures. This method is the least desirable. However, situations may occur where there is no other alternative.

(5) If the Lessor cannot or will not provide for design professional services, the selection of such professionals shall be the responsibility of the Agency. (See the selection process in Section Six). Plans and specifications shall be made pursuant to Ark. Code Ann. § 22-9-201, which requires observation by registered design professionals for certain levels of expenditures.

(N) Modular office space leased and occupied by state agencies for one (1) year or more are considered leased space. Requests for this type of temporary space should be processed in the same manner as requests for new or additional space. (See § 5-103(C)(14)(A))

(O) Pass-through escalation clauses in which the State agrees to pay all increases in property taxes, services, and/or utilities shall not be negotiated, nor approved. Escalations shall be pre-determined and negotiated with the original lease agreement.

(P) Information concerning leases shall be released pursuant to the Arkansas Freedom of Information Act.

(Q) When space has been located which meets the requested criteria, the Section shall negotiate and prepare for signature the standard State lease agreement. The agreement shall be signed by Lessor, Lessee, and approved by ABA. No lease document is valid unless signed by the proper ABA authorities. The Section shall ensure distribution of lease copies to the Lessor and Lessee.

(R) Agencies may enter into leases for residential dwellings or apartment-type facilities for use as living quarters, no lease, except for use as living quarters, shall be entered into which the premises is located in residential dwellings or in apartment type dwellings. (Example: A room in a residence cannot be leased as office space.)

(S) All leased premises for agencies not located within a state-owned building must be identified with a separate address for each defined premises. Leased premises shall not be shared with any private entity or use, other than for official state or public purposes. The leased premises shall have a separate entrance from any other place of business unless the premises is supported by funding, such as grant programs, stipulated by an agreement with other entities which includes but is not limited to agencies and political subdivisions. All non-state Lessors or Sublessors shall state within the Lease Agreement their ownership or subletting rights of the leased premises.

(T) While lease agreements may reflect that office furnishings or equipment is being utilized or shared, the lease for such commodities may only be made with approval from the Department of Finance and Administration. Such reflections in the lease agreement for the premises must be identified through an itemized inventory and attached as a lease exhibit. Lease agreements, which combine the use of the premises and commodities, are discouraged and should only be done if it is in the best interest of the State. The use of separate lease agreements for such commodities is encouraged.

(U) Agencies entering into Memorandum of Understandings for the purpose of planning temporary space in the event of disasters shall submit the executed agreement to the Section even though ABA is not a party to the agreement. Agencies shall provide immediate notification to ABA upon activation of the agreement due for disaster relief.

5-104 ABA SPACE ALLOCATION STANDARDS FOR LEASE SPACE

(A) Private Offices

Area

(1) Commissioner or Department Director

240

(2) Deputy Commissioner or Deputy Director

200

(3) Departmental Division Director or Administrator

180

(4) Chief Departmental Fiscal or Personnel Officer

160

(5) Section Head

140

(6) Professional or Technical

120

(7) Line Staff positions requiring private office due to job function

100

(B) Reception and Public Areas

Area

(1) Receptionist + 4 Visitors

120

(2) Receptionist + 6 Visitors

160

(3) Receptionist + 8 Visitors

220

(4) Receptionist + 10 Visitors

240

(5) Public counter per work station

75

(C) Open Area Work Stations

Area

(1) Clerical

48

(2) Clerical with reference

60

(3) Clerical with side chair

64

(4) Clerical with reference and side chair

80

(D) Conference, Meeting and Hearing Rooms

Area

Based on 20 s.f. per person

  

(1) Consultation or Interview (2 - 4 people)

80

(2) 14 to 16 people

300

(3) 18 to 20 people

375

(4) 22 to 24 people

450

(5) 36 to 38 people

600

(E) Auxiliary Space

Area

(1) File Room (per file cabinet)

10

(2) Copier Room (per copier)

175

(3) Information Technology Room (minimum)

32

(4) Employee Break room (based on serving at the same time)

  

Up to 5 people

120

6 to 10 people

180

11 to 15 people

220

(F) Service Areas

Area

(1) Janitorial Closet

24

(2) Electrical Closet (minimum clearance as required by building codes)

(3' clearance in front of equipment & 12' above)

(3) Telecommunications Closet (minimum)

32

(4) ADA Unisex Restroom (minimum dimensions)

7'6" x 6'

(5) Mechanical space

See below

(G) Circulation

Corridor and circulation space, toilet rooms, stairs, elevators and separate mechanical space should not exceed 25% of the total building area. Ratio of net leasable area to gross building area should result in a building efficiency of 75% - 85%.

5-105 ABA LEASE FORMS 1 & 2

Arkansas Building Authority

Lease Term:

STATE OF ARKANSAS

Annual Rent: $

COUNTY OF PULASKI

Square Feet:

Standard Lease Form 1

Rate:$

Approved by Attorney General

Type: New -:

August 2008

Worked By:

  

Agency: County:

  

Lease #:

STATE OF ARKANSAS LEASE AGREEMENT

This Lease is made this day of ___________, 20___, by which Lessor leases the PREMISES to Lessee through ABA, Lessee's Leasing Agent.

For the purposes of this Lease Agreement the following definitions apply:

"LESSOR" means: LESSOR'S NAME, individual, partnership or corporation

"LESSEE" means: STATE AGENCY AND PERMANENT ADDRESS, an agency of the State of Arkansas.

"ABA" means the Real Estate Services Section of Arkansas Building Authority. By law ABA is the leasing agency for LESSEE. Arkansas Code Annotated § 22-2-114. BA is not an additional LESSEE and therefore shall not owe any rent.

"PREMISES" means the property which is the subject of this Lease which is further described in paragraph #1.

1. DESCRIPTION OF PREMISES:

Approximately 0,000 square feet of type of space located at street address; all situated in the City of city name, County of county name, Arkansas.

2. TERM:

The initial term will begin on _________ and end on __________ . The LESSEE may elect to extend the term not more than ninety (90) days upon the same terms by written notice to LESSOR, not less than thirty (30) days before the end of the initial term.

3. RENT:

The LESSEE agrees to pay $ ________ per calendar month on or before the tenth (10) day of each such period, upon invoice from the LESSOR, apportionable on a daily basis at $ ______, such amount to be paid to LESSOR at:

4. UTILITIES AND SERVICES:

The LESSOR will furnish the following utilities and services:

___ - Electricity ____ - Elevator Service

___ - Gas ____- Trash Removal

___ - Water and Sewer ____ - Janitorial Services and Supplies ___

- Lamps, tubes, ballast and replacements

5. MAINTENANCE, REPAIR AND REPLACEMENT:

The LESSOR shall maintain the leased PREMISES, including the building and all equipment, fixtures, and appurtenances furnished by the LESSOR under this Lease, in good repair and tenantable condition, except in case of damages arising from the acts of the LESSEE'S agents or employees. For the purpose of so maintaining said PREMISES and property, the LESSOR may at reasonable times, and with the approval of the authorized LESSEE representative in charge, enter and inspect the same and make any necessary repairs hereto. The LESSOR shall be responsible for maintaining all structural supports and exterior walls of the building, including windows, doors, and passageways from the lobby, street and parking areas leading to the leased property, and the adjacent sidewalks and entrance lobby, in good order and repair, and free of snow, ice, rubbish and other obstructions. LESSOR shall provide lawn and plant maintenance and shall provide monthly pest control service. LESSOR shall maintain in good working order and repair all plumbing, toilet facilities and other fixtures and equipment installed for the general supply of hot and cold water, heat, air-conditioning (including monthly maintenance and filters).

6. FAILURE TO PERFORM:

The covenant to pay rent and the covenant to provide any service, utility, maintenance, or repair required under this Lease are dependent. If the LESSOR shall breach any of the conditions required to be performed by it under this Lease, LESSEE may cure such breach and deduct the cost thereof from rent subsequently becoming due hereunder. If LESSOR fails to correct a deficiency within thirty (30) days after written notice from ABA and LESSEE, or within an appropriate shorter period stated in the notice, in the event of a deficiency constituting a hazard to the health and safety of the LESSEE'S employees, property, or any other person, ABA and LESSEE may elect to terminate this Lease.

7. DAMAGE BY FIRE OR OTHER CASUALTY:

LESSOR shall bear the risk of loss by fire or other casualty and shall maintain fire and extended coverage insurance to the full replacement value of the PREMISES. If the PREMISES are destroyed by fire or other casualty, this Lease will immediately terminate. In case of partial destruction or damage, so as to render the PREMISES unsuitable for the purposes for which they are leased, as determined by LESSEE and ABA, the LESSEE, may terminate the Lease by giving written notice to the LESSOR through ABA, within fifteen (15) calendar days thereafter; if so terminated, no rent will accrue to the LESSOR after such partial destruction or damage; and if not so terminated, the rent will be reduced proportionately by supplemental agreement hereto effective from the date of such partial destruction or damage.

8. ALTERATIONS:

The LESSEE may attach fixtures and install signs in or to the PREMISES with LESSOR'S approval, which shall not be unreasonably withheld. Such fixtures and signs shall remain the property of LESSEE and may be removed from the PREMISES within a reasonable time after the termination of this Lease provided the LESSEE shall restore the PREMISES to a condition as good as at the beginning of this Lease, ordinary wear and tear excepted.

ABA, acting as agent for LESSEE, may during the course of this Lease negotiate with LESSOR for other improvements to be made in the PREMISES. No additional cost or fee for services or work will be charged by LESSOR without the prior written authorization of ABA.

9. TERMINATION:

In addition to other remedies provided herein, the LESSEE may terminate this Lease by thirty (30) days written notice to LESSOR by ABA if the LESSEE'S funds are insufficient for it to continue the operations for which the PREMISES are being used.

10. SPECIAL PROVISIONS:

(a) LESSOR shall be responsible that this facility conforms to the Arkansas Fire Prevention Code, as amended, Arkansas State Plumbing Code, The National Electrical Code, and any other state and local laws, codes, authorities, etc., applicable to the leased facility including the Arkansas adopted Americans with Disabilities Act Accessibility Guidelines for Buildings and Facilities (ADAAG).

(b) Failure to make any disclosure required by Governor's Executive Order 98-04, or any violation of any rule, regulation, or policy adopted pursuant to that Order, shall be a material breach of terms of this contract. Any LESSOR, whether an individual or entity, who fails to make the required disclosure or who violates any rule, regulation, or policy shall be subject to all legal remedies available to the LESSEE.

(1) The LESSOR shall prior to assigning this Lease with any person or entity, for which the total consideration is greater than $25,000, requires the assignee to complete a Contract and Grant Disclosure and Certification Form. The LESSOR shall ensure that any contract agreement, current or future between the LESSOR and an assignee for which the total consideration is greater than 25,000 shall contain the following:

Failure to make any disclosure required by Governor Executive Order 98-04, or any violation of any rule, regulation or adopted pursuant to that Order, shall be a material breach of the term of this Sublease. The party who fails to make the required disclosure or who violates the rule, regulation, or policy shall be subject to all legal remedies available to the LESSEE.

(2) The LESSOR shall transmit to the agency a copy of the Contract and Grant Disclosure and Certification Form completed and signed by the assignee and a statement containing the dollar amount of the Sublease. The LESSOR shall transmit to ABA a copy of the disclosure form within ten (10) days of entering into any agreement with assignee.

(3) The terms and conditions regarding the failure to disclose and conditions which constitutes material breach of contract and rights of termination and remedies under the Executive Order 98-04 are hereby incorporated within.

(c) The LESSOR hereby acknowledges that insert real estate broker firm or individual is/was the LESSOR'S sole agent(s) for these lease negotiations and states that the named broker(s) is/are licensed by the State of Arkansas for such transactions.

(d) The State shall not be responsible for the payment of any taxes or assessments for the PREMISES.

(e) ADD ADDITIONAL SPECIALIZED PROVISIONS HERE

11. MISCELLANEOUS:

(a) The Lease and any modifications or amendments to it will not be valid without the written approval of ABA.

(b) This Lease shall benefit and bind the parties hereto and their heirs, personal representatives, successors and assigns.

(c) The LESSEE may terminate this Lease by written notice from ABA to LESSOR upon the taking by eminent domain of any part of the PREMISES. This provision does not prevent the LESSEE from claiming or recovering from the condemning authority the value of LESSEE'S leasehold interests.

(d) Nothing in this Lease shall be construed to waive the sovereign immunity of the STATE OF ARKANSAS or any entities thereof.

(e) This Lease contains the entire agreement of the parties.

Executed by the parties who individually represent that each has the authority to enter into this Lease.

LESSOR LESSEE

By: ____________________________ By: _________________________________

Date: __________________________ Date: _______________________________

ARKANSAS BUILDING AUTHORITY As Agent for

By: ____________________________ By: ________________________________

Name, Administrator of Real Estate Services Name, Director

Date: __________________________ Date: _______________________________

Arkansas Building Authority

Lease Term:

STATE OF ARKANSAS

Annual Rent: $

COUNTY OF PULASKI

Square Feet:

Standard Lease Form 2

Rate: $

Approved by Attorney General

Type: New

August 2008

Worked By:

  

County: Agency: Lease #:

STATE OF ARKANSAS LEASE AGREEMENT BETWEEN STATE AGENCIES

This Lease is made this day of ___________, year, by which Lessor leases the PREMISES to Lessee.

For the purposes of this Lease Agreement the following definitions apply:

"LESSOR" means: ARKANSAS BUILDING AUTHORITY, permanent address, an agency of the State of Arkansas.

"LESSEE" means: STATE AGENCY AND PERMANENT ADDRESS, an agency of the State of Arkansas.

1. DESCRIPTION OF PREMISES:

Approximately ______ square feet of office space located in the ________ Building at ________________ ; all situated in the City of city name, County of county name, Arkansas, further described as follows:

2. TERM:

The term of this Lease will begin on date and end on date, unless the term shall be sooner terminated as hereinafter provided.

3. RENT:

The LESSEE agrees to pay to LESSOR the sum of $ ___________ per calendar annum, payable in monthly installments of $ ___________, apportionable on a daily basis at $ ____________ Such amount to be paid to LESSOR at: address, Little Rock, AR 72201.

This Lease will commence on the date which the LESSEE shall have commenced business operations upon the leased PREMISES. In the event that the term of the Lease shall commence on a day other than the first day of the calendar month, the LESSEE shall pay, upon the commencement date of the term, a portion of the fixed annual rental described in the foregoing provision, prorated on a daily basis.

4. UTILITIES AND SERVICES:

It is understood that the rental paid by the LESSEE is for the purposes of reimbursing the LESSOR for providing maintenance and repair of all mechanical and structural systems, janitorial service, utilities, pest control, security, trash removal, grounds, including applicable parking areas, maintenance, insurance, and all other expenses normally associated with the maintenance and operation of the lease PREMISES. LESSOR may seek additional reimbursements from LESSEE for "after-hour call outs" of ABA Building Operations Personnel due to acts or omissions by LESSEE'S employees, representatives or invitees.

5. ALTERATIONS:

The LESSEE may attach fixtures and install signs in or to the PREMISES with LESSOR'S approval, which shall not be unreasonably withheld. Such fixtures and signs shall remain the property of LESSEE and may be removed from the PREMISES within a reasonable time after the termination of this Lease provided the LESSEE shall restore the PREMISES to a condition as good as at the beginning of this Lease, ordinary wear and tear excepted. Any subsequent requested space alterations, attaching fixtures, and erecting additions after the initial construction has been completed and accepted by the LESSEE shall be the responsibility of the LESSEE. No services or work will be performed for which an additional cost or fee will be charged by LESSOR without the prior written authorization of the LESSEE.

6. ADDITIONAL PROVISIONS:

LESSOR and LESSEE mutually agree that the following additional provisions are hereby added to become a part of this Lease Agreement:

(a) LESSOR shall bear the risk of loss by fire or other casualty and shall maintain fire and extended coverage insurance to the full replacement value of the PREMISES. If the PREMISES are destroyed by fire or other casualty, this Lease will immediately terminate. In case of partial destruction or damage, so as to render the PREMISES unsuitable for the purposes for which they are leased, as determined by LESSOR, the LESSOR, may terminate the Lease by giving written notice to the LESSEE, within fifteen (15) calendar days thereafter; if so terminated, no rent will accrue to the LESSOR after such partial destruction or damage; and if not so terminated, the rent will be reduced proportionately by supplemental agreement hereto effective from the date of such partial destruction or damage.

(b) LESSEE agrees to accept the lease PREMISES in "as is" condition. All modifications will be at the expense of the LESSEE.

OR if alterations are made that are specific to the Lessee's operations conditional language can be added to state:

(1) Alterations shall remain the property of the LESSEE.

(2) Alterations shall be removed by LESSEE within thirty (30) days upon Lease termination or expiration, unless alterations are accepted in writing by ABA.

(3) LESSEE shall restore the PREMISES in a condition as good as at the beginning of the Lease term; ordinary wear and tear excepted.

(c) This Lease shall benefit and bind the parties hereto and their heirs, personal representatives, successors and assigns.

(d) Nothing in this Lease shall be construed to waive the sovereign immunity of the STATE OF ARKANSAS or any entities thereof.

(e) In all instances in which a LESSEE employs an individual or individuals who require an emergency evacuation auxiliary aid to safely exit the PREMISES during an emergency situation, the LESSEE is required to, and is solely responsible for obtaining, maintaining, and training in the use of said auxiliary aid. Any necessary installation of said device shall be coordinated and approved by the LESSOR. This requirement shall apply in all instances regardless of whether the disabled individual or individuals are employed at the time of the execution of this Lease, are hired and employed after execution of this Lease, or a current employee regardless of hire date becomes disabled so as to require an emergency evacuation auxiliary aid.

(f) LESSEE shall not sublease nor assign this Lease without the written approval of the LESSOR.

(g) This Lease contains the entire agreement of the parties.

7. BUILDING RULES:

The LESSEE agrees to cooperate with LESSOR in enforcing the Building Rules attached hereto and incorporated herein by reference as Exhibit "A". In the case that LESSEE is notified by LESSOR of Building Rule infractions committed by LESSEE'S employees or invitees, LESSEE agrees to take prompt and appropriate action to correct such violations.

8. RELOCATION

Nothing in this Lease shall be construed to prohibit or lessen LESSOR'S authority to relocate LESSEE, therefore when requested by LESSOR, LESSEE agrees to execute and enter into a lease or an amended lease with LESSOR or other public entity for the leasing of space in any public buildings as deemed by the LESSOR to be in the best interests of the State.

Executed by the parties who individually represent that each has the authority to enter into this Lease:

LESSOR: LESSEE:

ARKANSAS BUILDING AUTHORITY

By: _________________________________ By: __________________________

Name, Title, Real Estate Services Section

Date:________________________________ Date:__________________________

By:_________________________________

Name, Director

Date:_________________________________

SECTION SIX

REAL PROPERTY TRANSFERS

6-100 REAL PROPERTY OFFER AND ACCEPTANCE (PURCHASE)

(A) All Agency real estate transactions, unless exempted, involving transfers of property ownership are governed by Ark. Code Ann. § 22-6-601. Agencies should review this code provision. Agencies have several duties under this law in regards to requests and notifications prior the purchase or sale of properties. Transfers of ownership include, purchases, sales, donations, transfers of like property, and transfers between state entities. Any and all questions pertaining to real estate transfers should be directed to the Real Estate Services Section Administrator. Agencies may contact the Real Estate Services Administrator for a copy of quick reference guides for the purchase or sale of property.

(B) Agencies shall obtain an appraisal of the property for all real estate transactions. Appraisers shall be properly licensed in accordance with Arkansas laws and regulations. Once the services are obtained, Agencies shall give notice to the ABA Director.

(C) All offers and acceptances should state that it shall be conditional upon approval by the Governor. All offers and acceptances and applicable documents shall be delivered to the Real Estate Services Section. The section shall make a recommendation to the Director. Agencies may request advice and counsel of the Attorney General's office for the purchase of property. The Real Estate Services Section may assist agencies in making the conditional offer and acceptance and in obtaining the necessary review and/or approvals. Once the applicable documents are received by ABA, the ABA Director will transmit his recommendation to the Governor. Once a determination is made by the Governor and transmitted to the ABA Director, the ABA Director shall forward it to the Agency.

(D) It is preferable that all offers and acceptances be reviewed by the Real Estate Services Section Administrator prior to the Agency's execution of the document. A copy of the appraisal shall accompany the offer and acceptance at this stage of the review. ABA shall notify the Agency of its review of the offer and acceptance as well as notify the Agency of the property's flood plain status. All offers and acceptance shall contain the appropriate language pursuant to EO98-04.

(E) The Real Estate Services Section is responsible for reviews and approvals of lease-purchases of property in accordance with Ark. Code Ann. § 22-2-114 and any other law or regulation.

(F) Guidelines regarding the sale and purchase of properties are available by contacting the Real Estate Services Administrator.

(G) Prior to any offer of purchase or receipt of any property regardless as to the form of transfer, agencies shall request to a review of the floodplain status of the property pursuant to § 6-500 et seq.

6-101 CLOSING OF REAL PROPERTY (PURCHASE/SALE)

(A) Purchase: Buyer and seller shall be responsible for their respective closing costs. As soon as practical after closing the deed shall be filed by the Agency receiving the real property in the proper county clerk's office. Agencies are encouraged to review Ark. Code Ann. § 26-60-601 regarding exemptions from revenue stamps; Ark. Code Ann. § 22-5-411 regarding the filing of deed with the State Land Commissioner; and Ark Code Ann. § 25-16-706 regarding Seller's responsibility regarding purchase of a title commitment.

(B) Sale: The Real Estate Services Administrator may assist state agencies in coordinating the closing of property. Buyer and seller are responsible for their respective closing costs. Closing is expected to be within 30 days of the bid opening or acceptance date.

6-102 EXEMPTION FROM REAL PROPERTY TAXES

The Agency, if purchasing property that has been previously taxed, should request an exemption from the county tax assessor for real property taxes as soon as possible after closing and recording of the deed and abstract if such a request is necessary.

6-103 SALE OF REAL PROPERTY

All sales of real property owned by agencies shall be made pursuant to Ark. Code Ann. § 22-6-601. This code provision should be reviewed for questions concerning governor's approval, appraisals, appraiser's oaths, advertising, bid bonds, bid openings and award of contract through a bid process as well as remaining fund balances from the receipt of monies. Agencies should consult Ark. Code Ann. § 22-6-113 concerning the state's retention of mineral interests in any sale of state real property.

6-104 PROTEST

Any bidder or prospective bidder who is aggrieved in connection with the specifications, solicitation for or award of a sale of land pursuant to Ark. Code Ann. § 22-6-601(g)(h), has the right to protest to the Real Estate Services Administrator. The protest shall be submitted in writing within five (5) work days after the bid opening and identify the project by bid number or with sufficient detail to identify the project, and shall with specificity set for the allegations of the acts or omissions related to the protest. ABA shall endeavor to resolve protests promptly.

6-105 ABA REAL PROPERTY DATABASE

(A) All agencies including the Arkansas Department of Transportation and Highways, the Arkansas Game and Fish Commission shall provide to ABA a list of Agency owned real properties by December 31, 2001. Information shall:

(1) Include, but is not limited to the legal description of the property, the physical address of the property, if available; the existing use of the property or future use if no current use exists; amount of acreage; square footage of structures located on the property and the types of structures on the property, including but not limited to office building, residence, tower and recreational facilities.

(B) Right of Ways and Easements shall be exempted from the listed information.

(C) Provide the information to the Real Estate Services Section through a Microsoft Access 97 (or higher) or Microsoft Excel 97 (or higher) spreadsheet. Agencies should consult with the Real Estate Services Administrator for the specified fields. Agencies who cannot provide the information in this format shall seek prior approval of the Real Estate Services Administrator Section for another format.

(D) Agencies shall update this information by notifying the Real Estate Services Section upon any transfer of real property. Written notification to ABA shall be within 10 working days of the transfer.

(7/17/2008)

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