Kansas Legislative Research Department June 20, 2019

MINUTES

JOINT COMMITTEE ON STATE BUILDING CONSTRUCTION

May 2, 2019 Room 159-S — Statehouse

Members Present Representative J. R. Claeys, Chairperson Senator Rick Billinger, Vice-chairperson Senator Senator Senator Carolyn McGinn Senator Representative John Alcala Representative Eileen Horn Representative Marty Long

Members Absent Representative Michael Houser

Staff Present Shirley Morrow, Kansas Legislative Research Department David Wiese, Office of Revisor of Statutes

Conferees Bobby Kosmala, Deputy Director, Leasing and Real Estate, Office of Facilities and Property Management, Department of Administration

Others Attending No other attendees present.

Afternoon Session

Welcome

Chairperson Claeys called the meeting to order at 12:10 p.m. He recognized Representative Alcala for a motion. Representative Alcala moved, seconded by Representative Long, for a letter to the Attorney General be drafted asking him to review the leases entered into by the state agencies that were transitioned from the Docking State Office Building into leased spaces. Upon further discussion, Chairperson Claeys will write the letter to the Attorney General individually. The motion carried.

Department of Administration

Bobby Kosmala, Deputy Director, Leasing and Real Estate, Office of Facilities and Property Management, Department of Administration (DoA), presented the proposed lease for the Kansas Department for Children and Families (DCF) in Atchison, Kansas. The agency has been in its current location since July 1993; this location is not updated to current DCF safety and security standards and lacks adjacent parking for visitors and employees. In January 2018, DCF and DoA released a request for proposals (RFP) to search for suitable space to relocate DCF. The following terms were negotiated based upon the City of Atchison’s proposal:

● 11,071 square feet of space at a base rate of $12.95 per square foot for a term of 15 years;

● A five-year renewal option at the same rate, at the discretion of DCF;

● Safety features to protect employees and clients, such as secure interview rooms, an electronic access management system, a video surveillance system, panic buttons, on-site parking, and other office renovations to suit the functionality and needs of DCF;

● Landlord will paint high-traffic areas at year five of the lease and the entire building at year eight of the lease;

● Carpet and tile will be replaced at the beginning of year eight of the lease;

● All projects are to be completed at no additional cost to DCF;

● DCF subleases over 400 square feet of space to the Kansas Commission on Veterans Affairs Office (KCVAO) and has made an effort to provide adequate space in this lease for KCVAO so they can maintain a presence in the community; and

● An energy audit will be completed by the lessor after a year of occupancy has been established.

The DoA is supportive of this lease (Attachment 1).

Chairperson Claeys entertained questions, discussion, or motions. Senator Francisco expressed thanks to the DoA for adjusting the size of the facility in order to keep the lease base rate at about the same cost. Representative Horn asked what would be done with the results of the energy audit when completed by the lessor after a year of occupancy by DCF. Mr. Kosmala explained the audit manager is the Energy Star Manager Portfolio and the rating must comply with the national site and source median of that plan. If it does not, then the lessor would be asked to look at options and make recommendations to bring the rating in compliance with the national site and source median, such as nighttime set backs, energy efficient windows, and

Kansas Legislative Research Department 2 Joint Committee on State Building Construction Minutes for May 2, 2019 HVAC. This median is calculated dependent upon the size and location of the building and the types of energy used, e.g., total electric, gas, gas and electric.

Senator Billinger asked about the difference in the rates quoted on the Lease Comparison Sheet of $12.95 base rate per square foot and the annual estimated cost of $15.08 per square foot. Mr. Kosmala explained the base rate does not include utilities, trash pickup, or janitorial service costs. Such costs are added to the base rate to reflect total estimated costs per square feet. Senator Billinger suggested the total cost per square feet be included on future cover sheets for a total snapshot of the features of the lease. Mr. Kosmala acknowledged he would include that figure in future cover sheets.

In response to a question from Senator Hawk, Mr. Kosmala stated the location for KCVAO was included in the lease, but the KCVAO must decide to move with DCF into the new space. Mr. Kosmala said, to his knowledge, KCVAO is leaning toward the move with DCF, but has yet to make a final determination.

There were no further questions or discussion. Chairperson Claeys entertained motions regarding the lease. Senator Billinger moved, seconded by Senator Hawk, to accept the lease for the Atchison DCF office. The motion carried.

The Chairperson then turned the Committee’s attention to the lease for the Kansas Department of Revenue (KDOR) Driver’s License Examination (DLE) office in McPherson, Kansas.

The McPherson DLE office has been co-located with the Kansas Department of Transportation (KDOT) office since January 1993. In 2018, KDOR and the DoA released an RFP for a new lease. They received no responses. Later, KDOR did a second search and found one other lessor with a state agency lease in the area. A new lease was proposed for 1,800 square feet of space at a base rate of $11.65 per square foot for a period of five years plus an option for two five-year renewals at the discretion of KDOR. The annual estimated cost per square foot is $15.32. The new space will allow KDOR to increase the number of staff to improve both the safety and efficiency of this office. Other benefits include:

● Improved safety and security for staff and customers;

● Enlarged waiting area and better overall experience for customers;

● Reduced wait times, as they have seen a 10.0 percent increase in the number of applicants for each of the last three years;

● A dedicated storage space within the leased area so supplies and forms do not need to be replenished from nearby facilities;

● An additional examiner’s station to decrease wait times;

● The motorcycle testing next to the building will be located away from the flow of traffic. Currently, testing stops whenever someone enters the parking lot and the lot requires frequent upkeep by KDOR staff to keep the course safe from the sand and salt spilled in the lot due to the proximity of KDOT’s trucks and sand piles;

Kansas Legislative Research Department 3 Joint Committee on State Building Construction Minutes for May 2, 2019 ● The space was remodeled with new carpet and paint last year and other office renovations will be made to suit the functionality and needs of KDOR; and

● All carpet and paint will be replaced within the space at year eleven if the second renewal option is exercised.

The DoA supports adoption of this lease (Attachment 2).

Chairperson Claeys asked for comments, questions, or additional discussion. Senator Francisco commented she attended the dedication of the new DLE office in Lawrence and said there is another new DLE location in Leavenworth. She found the new facility layout and location to be very helpful and she would like for McPherson to have the same.

Senator Billinger moved, seconded by Senator Francisco, to accept the lease for KDOR’s DLE office located in McPherson. The motion carried.

Adjournment

The meeting adjourned at 12:23 p.m.

Prepared by Suzanne Nelson Edited by Shirley Morrow

Approved by the Committee on:

May 29, 2019 (Date)

Kansas Legislative Research Department 4 Joint Committee on State Building Construction Minutes for May 2, 2019