Committee Meeting

of


STATE LEASING AND SPACE UTILIZATION COMMITTEE



 

LOCATION:

Committee Room 12

State House Annex

Trenton, New Jersey

DATE:

November 18, 2002

9:30 a.m.



MEMBERS OF COMMITTEE PRESENT:


 

Assemblywoman Nellie Pou, Chairwoman

Senator Joseph Suliga

Robert Smartt

(Representing John E. McCormac)

 


ALSO PRESENT:

 


John A. MacCalus                              Andrew Hendry

Office of Legislative Services             Assembly Majority

Committee Aide                                   Committee Aide

 

Robert J. Shaughnessy, Counsel


Steven M. Sutkin

Deputy Director

Contract Administration

Division of Property Management and Construction

New Jersey Department of the Treasury                                                                                5

 

Bernard McLaughlin

Deputy Director

Property Management and Construction

Division of Property Management and Construction

New Jersey Department of the Treasury                                                                                8

 

Robert LaBate

Manager

Lease Negotiations

Division of Property Management and Construction

New Jersey Department of the Treasury                                                                              17

 

Francisco Ortiz

Assistant Director

Office of Real Estate

New Jersey Department of Human Services                                                                       23

 

Michael Lucash

Building Management Services Specialist 1

New Jersey Department of Environmental Protection                                                         35

 

rs: 1-41

 

 

 

 

 

 

 


                  ASSEMBLYWOMAN NELLIE POU (Chairwoman): Okay, once again, thank you very much, ladies and gentlemen. We’re going to begin our meeting.

                  John, if--

                  Now that we have Senator Joe Suliga here with us this morning--

                  Thank you very much.

                  John, if we could call the meeting to order, please?

                  Roll call.

                  MR. MacCALUS (Committee Aide): This is the State Leasing Committee meeting of November 18, 2002.

                  Roll call.

                  Senator Suliga.

                  SENATOR SULIGA: Here.

                  MR. MacCALUS: Assemblywoman Pou.

                  ASSEMBLYWOMAN POU: Here.

                  MR. MacCALUS: Deputy Treasurer Smartt.

                  DEPUTY TREASURER SMARTT: Here.

                  MR. MacCALUS: Okay, we have a quorum.

                  The notice of this meeting of the State Leasing Committee was provided to the Secretary of State, Courier Post, Star-Ledger, Trenton Times, and State House Press on November 7, 2002, in accordance with N.J.S.A. 10:4-6 to 10:4-21, known as the Open Public Meeting Act.

                  You may proceed.

                  ASSEMBLYWOMAN POU: At this time, we’re going to have our Committee reorganization. I’d like to ask for a motion for a Committee Chair.

                  SENATOR SULIGA: I nominate yourself, Madam Chairwoman, as the Chair.

                  DEPUTY TREASURER SMARTT: Second.

                  ASSEMBLYWOMAN POU: John.

                  MR. MacCALUS: Motion to approve the reorganization for the 210th Legislature under the Chair of Assemblywoman Pou.

                  Senator Suliga.

                  SENATOR SULIGA: Yes.

                  MR. MacCALUS: Assemblywoman Pou.

                  ASSEMBLYWOMAN POU: Yes.

                  MR. MacCALUS: Deputy Treasurer Smartt.

                  DEPUTY TREASURER SMARTT: Yes.

                  MR. MacCALUS: Motion carries.

                  ASSEMBLYWOMAN POU: Thank you very much.

                  Perhaps, maybe, we’ll just do some very brief introductions, at this moment, with regards to the members that are here.

                  I’m going to start with myself. I’m Assemblywoman Nellie Pou, acting as the Chairperson for today’s meeting. I represent the 35th Legislative District. And to my left--

                  Senator, would you--

                  SENATOR SULIGA: Sure. Senator Joseph Suliga from the 22nd Legislative District.

                  DEPUTY TREASURER SMARTT: Bob Smartt, Deputy State Treasurer representing Treasurer John McCormac.

                  ASSEMBLYWOMAN POU: To my right.

                  MR. HENDRY: Andrew Hendry, Assembly Democratic Office.

                  MR. MacCALUS: John MacCalus, Office of Legislative Services.

                  MR. SHAUGHNESSY: Good morning. Bob Shaughnessy, Division of Law and Public Safety, as Counsel to the Committee.

                  ASSEMBLYWOMAN POU: Thank you very much, gentlemen.

                  At this time, I’d like to make a motion to approve -- ask for a motion to approve the minutes from the January 3 meeting in 2003. (sic)

                  DEPUTY TREASURER SMARTT: So moved.

                  ASSEMBLYWOMAN POU: In 2002, excuse me. Let me just correct myself here. I’m way ahead of myself here.

                  DEPUTY TREASURER SMARTT: So moved.

                  SENATOR SULIGA: I’ll second it, but I’m not voting for it. I wasn’t at the meeting, so I can’t approve minutes.

                  ASSEMBLYWOMAN POU: Actually, I think we all have that same concern. However, John, if you would please do a roll call. It’s been moved and seconded.

                  Roll call.

                  MR. MacCALUS: Okay, a motion to approve the meeting minutes of January 3, 2002.

                  Senator Suliga.

                  SENATOR SULIGA: I’m going to abstain.

                  MR. MacCALUS: Assemblywoman Pou.

                  ASSEMBLYWOMAN POU: Yes.

                  MR. MacCALUS: Treasurer -- Deputy Treasurer Smartt.

                  DEPUTY TREASURER SMARTT: Yes.

                  MR. MacCALUS: Okay, the motion has failed.

                  SENATOR SULIGA: How does it fail? It’s two to one.

                  MR. MacCALUS: We have to have--

                  ASSEMBLYWOMAN POU: We have to have--

                  MR. MacCALUS: We have to have the entire -- all three votes.

                  SENATOR SULIGA: Well, what’s the difference if the minutes weren’t approved?

                  MR. MacCALUS: Nothing.

                  SENATOR SULIGA: Okay. (laughter)

                  ASSEMBLYWOMAN POU: Okay, if we can just begin with our agenda, with our first--

                  SENATOR SULIGA: Madam Chairwoman, just a point of clarification, so I understand. I’m new to this Committee.

                  Am I to understand that the only way these leases can be approved is if all three members vote yes?

                  MR. MacCALUS: That’s correct.

                  SENATOR SULIGA: Okay, thank you.

                  ASSEMBLYWOMAN POU: Thank you for that question. That helps to clarify a lot of things here.

                  If we could just move on to the first item.

                  John, if you would please indicate which one that is, and then I’ll be happy to recognize who we have before us.

                  MR. MacCALUS: Okay, I believe Steve Sutkin, who is the Deputy Director of the Division of Property Management and Construction, would like to give a brief presentation on the operation of the leasing portion of the State government, and then that will be followed by the individual leases that they have presented -- they are going to be presenting today.

                  ASSEMBLYWOMAN POU: Thank you very much.

                  MR. MacCALUS: Is that correct?

S T E V E N M. S U T K I N: Good morning.

                  I only have about a five minute presentation to present.

                  On behalf of the Division of Property Management and Construction--

                  ASSEMBLYWOMAN POU: Steve, if I can ask you to please speak into the mike so that we can all hear you--

                  MR. SUTKIN: Sure.

                  ASSEMBLYWOMAN POU: Thank you very much.

                  MR. SUTKIN: Am I carrying?

                  ASSEMBLYWOMAN POU: Yes, the red light means it’s on -- you’re on, rather.

                  MR. SUTKIN: Okay, thank you.

                  On behalf of the Division of Property Management and Construction in the Department of Treasury, and pursuant to the requirements of New Jersey statutes annotated 52:18A-191, our leasing statute, I’m pleased to present a number of lease initiatives for your consideration.

                  By way of brief introduction, the Division of Property Management and Construction is the division within the State government that’s responsible for the procurement and administration of leases within the State. Typically, we are the tenant, occasionally we are the lessor. But that’s an entirely different process that goes before the State House Commission. What we present to you today are situations with the State as the tenant.

                  We obtain these leases to further the legislative programmatic and human resource needs of all State departments, some State colleges; in addition to the judicial branch, which has it’s own authority -- but we have a cooperative arrangement with them, and they utilize our administrative processes. In fact, the first one on your agenda is a judicial lease, down in Atlantic City, that we’ll have an opportunity to discuss.

                  These spaces that we lease are not only for State employees, but also for private citizens in the case of, for example, DYFS needs, public defender needs, and other such needs where the public visits the State and utilizes its services. We also administer the State Central Rent Account in the approximate amount of $160 million.

                  For your information, our Division is also responsible for the procurement of construction work on State-owned buildings and also responsible for building management. We have approximately 40 buildings in our portfolio, and we’re responsible for the building maintenance of those buildings. We’re also responsible for the conveyance of certain real property interests that are disposed of. And, again, that goes before the State House Commission for final approval. The combined portfolio of the construction and leasing efforts under our responsibility is several hundred million dollars annually.

                  Now, as we go through the leasing process, we’re going to use some terms that we throw about every day. If there’s any questions that you don’t know what we’re talking about, because we use our own internal bureaucratic parlance, just please stop me and ask a question.

                  When we talk about term leases that we advertise, typically we’re looking for a 10-year term lease, and typically we put in two five-year renewals. This is pursuant to recommendations we got in a master plan that was produced a little while back, and we can discuss that if you wish.

                  The Division also works closely with the Attorney General’s Office.

                  Let me backtrack. When we talk about month-to-month leases, those are the leases where the term had expired, and now we’re occupying on a month-to-month basis. And that has its own legal ramifications.

                  The Division works closely with the Attorney General’s Office to procure all leases in accordance with a very detailed set of State statutes, regulations, and internal Treasury policies. It’s an extensive and detailed process that requires many steps, and the result is our appearance here.

                  I’d like to introduce to you our Director, Edmund Jenkins. To my right is Bernard McLaughlin, another Deputy Director in the Division. To my left is Bobbie Schott; and also, going to be assisting in the presentation, is Bob LaBate, who is the Manager of the Lease Procurement Unit. I, personally, am a Deputy Director in the Division. I’m the contracting officer. I come here after a 10-year service in the Department of Law and Public Safety, Division of Law.

                  Now I’m prepared to present to you, for your consideration, the proposed leases that are in your binder. I would say to you that some of them you’d look at and you’d say, “Well, these aren’t leases. These are usage of an antenna on a State building.” But we take a very conservative approach to what we’re authorized to do, and so, therefore, every time we enter into any of these kinds of agreements, we come to you for your approval.

                  I’m asking Bernie McLaughlin, to my right, just to discuss with you -- a short one or two minute presentation on some of the planning and programmatic processes that we’re going through right now to help the fiscal crisis and to help consolidate State’s spaces.

                  Thank you.

B E R N A R D Mc L A U G H L I N: Good morning.

                  SENATOR SULIGA: Good morning.

                  ASSEMBLYWOMAN POU: Good morning.

                  MR. McLAUGHLIN: Given the current fiscal crisis, DPMC has adopted a very proactive posture in the performance of our duties. Our planning committee meets regularly with all agencies to review upcoming lease terminations to develop strategies to present when SPRs, space planning requests, are developed.

                  This effort is helped by the space ordinance we completed this spring, which identified underutilized space in all State-owned buildings and lease locations. When the early retirements took place, they were added to this pool of available space. And through the regular meetings we held with the agencies, we’ve been able to place many terminated or month-to-month leases in existing space, for considerable cost avoidance. In addition, we were able to place the new Counterterrorism Unit in existing space at no additional cost, and we anticipate the same for the Office of the Public Advocate.

                  Recognizing the potential savings in the depressed office rental market, we’re able to get language included in the current budget that enables us to renegotiate existing leases if financial benefits to the State results. You’ll see examples of this today, and many more are in progress as we speak.

                  Our goal is to maximize available fiscal resources in placing agencies in the space they need to fulfill their goals and their obligations to constituents. We take this goal seriously, and we are pursuing it aggressively.

                  Steve will now review with you some of the initiatives that have been developed from this process.

                  MR. SUTKIN: Unless there’s any questions, we’re ready to go to the lease initiatives.

                  SENATOR SULIGA: Yes, Madam Chairwoman, I have a few questions. They’re general, so I get familiar with the process.

                  You said a few hundred million dollars. I mean, how much exactly does the State expend each year on leases?

                  MR. SUTKIN: Our lease-- The Central Rent Account budget is $160 million, maybe $161 million. Somewhere in that neighborhood.

                  SENATOR SULIGA: You also get involved in the purchasing of State property? In other words, we obviously have State buildings we own that we purchase from individuals. Is your Department also involved in that?

                  MR. SUTKIN: So far, I have not been-- I know we’re involved in the disposal, and we discuss -- we’re consulted by the Treasurer’s Office whenever there’s an initiative.

                  SENATOR SULIGA: So you’re not the department that actually, if we want to purchase a building, would purchase it.

                  MR. SUTKIN: We are consulted. Seeing that I haven’t been involved in it, I can’t-- To be honest, I don’t know.

                  MR. McLAUGHLIN: I think we help to develop the initiatives. We make recommendations where, perhaps, purchasing rather than renting would be appropriate. And then, depending upon the resources the State has and what vehicle they choose, whether it’s through bonding or otherwise, that would go through another agency.

                  SENATOR SULIGA: It seems that with $160 million in leases, that would probably be an appropriate way to start going. I mean, obviously, for Legislative offices, we lease them, because we may not be in business in two or four years. So, obviously, the State is not going to purchase offices for us. But we have a lot of consistency of employees. I’ve been in the Legislature now for nine years, and I’ve seen -- I don’t see that much change in our employee ratio and in the departments. Obviously, we’re going to have those needs, and it’s probably long-term. If you have the $160 million -- to use that as payments on bonds and actually own the facilities -- as opposed to leasing the facilities, because, obviously, the lease has a profit built in for the landlord. I’m just saying I don’t know who I would go to or talk to to explore those opportunities.

                  MR. SUTKIN: Over the past few years, there have been some examples of that through the New Jersey Building Authority. There’s a new 192,000-square-foot building being constructed in Hamilton for a State laboratory facility that we won’t be renting. There’s a new State Police troop barracks going on at the same site.

                  Several of the buildings that are State-owned within the central Trenton area were Building Authority initiatives. I believe the DEP building down at 401, 501 East State Street, and a couple of the other buildings down on State Street-- So we utilize the Building Authority funding mechanism for bonds, and that’s an ongoing process.

                  MR. McLAUGHLIN: There was also -- we just presented, last week in our capital budget presentation, an initiative to either build or purchase a facility in Hammonton, which could consolidate nine leases and would have a significant savings in rent and a relatively short payback period.

                  There’s also been a number over the years, I think -- looking back over the last 10 to 12 years -- the amount of leases the State has, has -- and Bob will bear me out -- I think, reduced by over 50 percent.

                  SENATOR SULIGA: Okay, I’d like to see-- Can I get, through the Chair-- I’d like to see, in the last 10 years, the analysis of what we spent on leases, State leases -- over the last 10 years.

                  MR. McLAUGHLIN: Very good.

                  SENATOR SULIGA: And hopefully that $160 million will be less than what was 10 years ago.

                  MR. McLAUGHLIN: Definitely.

                  SENATOR SULIGA: Thank you.

                  MR. SUTKIN: I would also, just to add one more thing-- We did, recently, construct a building in Asbury Park that’s now housing -- I believe it opened last year -- and it houses the Division of Taxation. It has the Office of Family Assistance for families from 9/11, and also the Department of Military and Veterans’ Affairs.

                  SENATOR SULIGA: And one last question, so I understand who’s in the audience-- Is this-- How many are staff members with the State? So the majority -- and the others, I assume, are representing landlords. Are any of those here?

                  MR. SUTKIN: I can say that many of these--

                  SENATOR SULIGA: Are these all staff members?

                  MR. SUTKIN: Many of these are from the agency for whom we’re obtaining the lease space. And in the event that you had--

                  SENATOR SULIGA: Oh, from the agencies, okay.

                  MR. SUTKIN: Right, and if you had a programmatic question that we couldn’t field, we would defer to the agency to speak on that.

                  SENATOR SULIGA: Very good. Thank you.

                  Thank you, Madam Chair.

                  ASSEMBLYWOMAN POU: Thank you, Senator Suliga.

                  Just a follow-up to Senator Suliga’s question. The representatives that are here, from each of those agencies, are within those respective municipalities or counties that we’re now going to be taking into account for -- some of the action taken here today, that’s being proposed today?

                  MR. SUTKIN: I think that most of the representatives are agency -- part of the management of the agency that have staff in those particular municipalities. And they can speak to the issues.

                  ASSEMBLYWOMAN POU: Okay.

                  DEPUTY TREASURER SMARTT: Madam Chairwoman.

                  ASSEMBLYWOMAN POU: Yes, Deputy Treasurer.

                  DEPUTY TREASURER SMARTT: If I could just, for a minute--                   There’s a document that you gave to the Committee. If you could just refer to that -- explain what that is for the Committee’s use, both at the meeting and afterwards, I’d appreciate it.

                  MR. SUTKIN: Should I discuss it? Would you prefer for me to discuss it now?

                  DEPUTY TREASURER SMARTT: Just briefly, just what it is.

                  MR. SUTKIN: What we tried to do, since the Committee is comprised of new members, is to just give you a very general outline of the process that we go through. Of course, there’s a lot more details, and sometimes these leases take several months into over a year, because of all the competition and the meetings and the approvals.

                  But if you look at the first page, the first page gives you a bullet form of what follows below it. There is the planning process, in which we work with the agency to identify their space needs and the programmatic needs. And part of that is, they hand in a document called a Space Planning Request. That’s a statutorily required document. And on that document, they fill in certain information. Right now, we’re putting a lot of effort into making sure that those Space Planning Requests conform with important State policies, such as Smart Growth Initiatives and other initiatives, to make sure they’re placed in the proper location, not just for the program, but for other important State policies.

                  Then there’s the competitive process, which is dictated by statute. We have to advertise. We advertise. Ultimately, we have to seek the most competitive proposal, and there’s a lot of weighing, because, as you know, all pieces of real estate are unique. It’s not like the lowest price, where you look at objective standard, which is the lowest price. Every building is a little bit different. So there is some weighing that takes place. And to the extent there is a dispute, we handle it in-house, and we have a-- We’ll have a hearing if there’s facts on an issue. If there’s no facts on an issue, we’ll decide it based on paper submissions before we present it here.

                  Then there’s the approval process, of which this is the most important part. We need to get the SLSUC’s, the Committee’s approval of the lease terms and the requirements. And then, after that, the contractor -- the lessor engages in construction. Of course, when you think of it practically, you’re not going to get a potential lessor undertaking a lot of construction, a lot of architectural fees, a lot of legal fees, when they know that they still have to get another approval and this Committee may say no.

                  So we present to you the essential terms of the lease, the price, square footage, all the information you have before you. When we get your approval, we go back to the landlord, and then we start driving towards the point of occupancy. That’s the fourth one. And then the fifth one is, obviously, occupancy.

                  Now, behind that is a breakdown, a little bit more of what these bulleted points discuss. And I’d be happy to address any questions you might have either now or after this Committee meeting.

                  ASSEMBLYWOMAN POU: Thank you.

                  Any further questions? (no response)

                  Okay, why don’t we proceed with our first lease agreement?

                  MR. SUTKIN: The first lease agreement we present for your review is NPL, which is Notice of Proposed Lease, 3864. It’s for the judiciary in Atlantic City. As I mentioned, we obtain these spaces on behalf of the judiciary through a cooperative agreement that we have with that branch of government. The details -- the submission are included. I don’t know if you want me to go through each one, Madam Chairwoman.

                  ASSEMBLYWOMAN POU: Actually, just for the purpose of today’s meeting -- if we can just go through, maybe, the first one. Let’s see how that-- And then, maybe we can just move along each of them as we go along. If there’s any particular question that any one of us have, with regards to any of the other agreements, we’ll so point that out.

                  But for the purpose of the exercise, let us go through, at least, the first one so that we have an understanding as to what’s the process and what’s the procedure that takes place for each of the agreements. Okay?

                  MR. SUTKIN: Okay. Now, if you take the first one, which I don’t know if it’s so good an example, because it’s an exception-- (laughter)

                  ASSEMBLYWOMAN POU: We can do that or another, but let’s do the exception first, since you’ve pointed that out. And then we’ll go on to a more basic one.

                  MR. SUTKIN: Okay. Now this one is an exception because it’s county-owned space. And when we have county-owned space, we don’t have--

                  ASSEMBLYWOMAN POU: I’m sorry, Steve. Are we working on the NPL 3864?

                  MR. SUTKIN: Yes.

                  ASSEMBLYWOMAN POU: Okay, we’re all with you.

                  MR. SUTKIN: This is county-owned space. And when we have county-owned space, it does not require the full advertisement. So we make an evaluation: Is the county offering us space at a competitive price. And if it is a competitive price, then we’ll engage in the lease with the county. Now, they’re already in this space, and this is our new five-year lease for the judiciary in this location.

                  ASSEMBLYWOMAN POU: I’m sorry, thank you.

                  Just a point of clarification, since this is our first meeting, are we looking to vote on each and every one of them, as each of the agreements come up, before we proceed to the next agreement? Is that the appropriate way to follow through with the--

                  MR. MacCALUS: That’s, historically, Chairwoman, that’s what we’ve done. We’ve gone one, by one, by one, by one.

                  ASSEMBLYWOMAN POU: That’s fine. I just want to, before we move on to the next one-- I imagine, then, you’re looking for a motion so that we can move on to the next one.

                  MR. SUTKIN: Yes.

                  ASSEMBLYWOMAN POU: Very well. In that case, I need a motion to move -- to approve the NPL Number 3864 lease agreement.

                  DEPUTY TREASURER SMARTT: So moved.

                  ASSEMBLYWOMAN POU: Second.

                  Roll call.

                  MR. MacCALUS: On the motion to approve NPL 3864, Senator Suliga has left proxy to vote in the affirmative, yes.

                  Assemblywoman Pou.

                  ASSEMBLYWOMAN POU: Yes.

                  MR. MacCALUS: Deputy Treasurer Smartt.

                  DEPUTY TREASURER SMARTT: Yes.

                  MR. MacCALUS: Okay, the motion has passed.

                  ASSEMBLYWOMAN POU: Thank you.

                  Next agreement, please.

                  MR. SUTKIN: The next item on the agenda is NPL 3885, for the Department of Treasury, and Health -- public defender and consumer report. It will be two agencies in this leased space, the public defender, as well as the Department of Health. This is one that was advertised. We received very little response in the area, on the catchment area. However, we did get a responsive proposal from the location at 66 Hamilton Street. And we’re able to negotiate on favorable terms. If there’s any questions--

                  ASSEMBLYWOMAN POU: Actually, I do. This being from my hometown of Paterson and in my district, I’d like to just ask, in terms of -- I’m familiar with our public defender’s office and where the Department of Health is at. Is this not in one of our county buildings?

R O B E R T La B A T E: This is not a county-owned building. This is a privately owned building.

                  ASSEMBLYWOMAN POU: So did the Department of Health move from-- Is this a new lease location for the Department of Health?

                  MR. LaBATE: No, this is the existing location. The public defender and Health are both in this building right now.

                  ASSEMBLYWOMAN POU: I’m sorry?

                  MR. LaBATE: The public defender and the Department of Health are both in this building right now.

                  ASSEMBLYWOMAN POU: How long was that arrangement?

                  MR. LaBATE: Just from the lease number, I’m going to say it probably goes back to the ’80s. It’s been under the--

                  ASSEMBLYWOMAN POU: The Department of Health?

                  MR. LaBATE: It’s consumer support. It’s a Medicaid -- senior services Medicaid office.

                  ASSEMBLYWOMAN POU: Okay, now I understand. I’m looking at it as the actual environmental piece, but you’re talking about the Medicaid office.

                  MR. LaBATE: Yes.

                  ASSEMBLYWOMAN POU: Very well. Okay.

                  Thank you very much.

                  Any questions? (no response)

                  Okay, if not, I will--

                  MR. SUTKIN: I just wanted to add, just for clarification, that there’s another Medicaid office in Paterson behind Tab Number 12, and that’s the Medicaid office, and we’ll be discussing that. That’s operated through the Department of Human Services.

                  ASSEMBLYWOMAN POU: Oh, okay.

                  MR. SUTKIN: What happened, I think, about five years ago, there was a reorganization, where they took the Medicaid aspect that was all within Human Services, and they took the one that applied to elderly services and put that in the Department of Health. And this is the situation with the lease space catching up to the programmatic requirements.

                  ASSEMBLYWOMAN POU: I see. Thank you very much for that clarification. That will certainly answer a lot of questions when we come to that agreement -- “Didn’t we already do this?” Very well.

                  Motion to accept NPL 3885?

                  DEPUTY TREASURER SMARTT: So moved.

                  ASSEMBLYWOMAN POU: Second.

                  MR. MacCALUS: Okay, approval of NPL 3885. On the motion to approve, Senator Suliga votes yes, in proxy.

                  Assemblywoman Pou.

                  ASSEMBLYWOMAN POU: Yes.

                  MR. MacCALUS: Deputy Treasurer Smartt.

                  DEPUTY TREASURER SMARTT: Yes.

                  MR. MacCALUS: Okay, it has been approved.

                  ASSEMBLYWOMAN POU: Next agreement, please.

                  MR. SUTKIN: The next item for consideration is NPL 4277 for the Department of Treasury, Division of Taxation. This is for warehousing space for the Division of Taxation. It’s a location that we’re already in. And as Bernie mentioned to you, we have new authority, under the recent appropriation act, to renegotiate leases in the soft market. And this is one where we actually did the renegotiation. This is the results of it. It shows a $17,000-per-year savings on the lease.

                  ASSEMBLYWOMAN POU: Any questions (no response)

                  If not, I will entertain a motion to move -- to approve NPL 4277.

                  DEPUTY TREASURER SMARTT: So moved.

                  ASSEMBLYWOMAN POU: Second.

                  MR. MacCALUS: To approve NPL 4277, Senator Suliga votes yes, by proxy.

                  Assemblywoman Pou.

                  ASSEMBLYWOMAN POU: Yes.

                  MR. MacCALUS: Deputy Treasurer Smartt.

                  DEPUTY TREASURER SMARTT: Yes.

                  MR. MacCALUS: Okay, motion is carried.

                  ASSEMBLYWOMAN POU: Next agreement, please.

                  MR. SUTKIN: The next agreement for your consideration appears behind Tab Number 4. It is NPL Number 4474. It’s for the Department of Law and Public Safety’s Juvenile Justice Commission. These are circumstances where we were able to get out of certain month-to-month leases on Bear Tavern Road and consolidate numerous JJC programs into one space at a very cost-effective square-footage rate, which I believe was $12 a square foot, inclusive.

                  MR. McLAUGHLIN: Gross.

                  MR. SUTKIN: Gross, which are very favorable terms in this market -- even in this market. And I, therefore, present it for your consideration.

                  ASSEMBLYWOMAN POU: I’ll entertain a motion to approve NPL 4474.

                  DEPUTY TREASURER SMARTT: So moved.

                  ASSEMBLYWOMAN POU: Second.

                  MR. MacCALUS: Okay, for approval of NPL 4474, Senator Suliga votes yes, in proxy.

                  Assemblywoman Pou.

                  ASSEMBLYWOMAN POU: Yes.

                  MR. MacCALUS: And Deputy Treasurer Smartt.

                  DEPUTY TREASURER SMARTT: Yes.

                  MR. MacCALUS: Motion’s carried.

                  MR. SUTKIN: The next item on the agenda appears behind Tab 5. It is lease number 4494. It’s for the Department of Treasury’s Division of Revenue. Now, it’s only for a two-year, temporary lease for the Division of Revenue for additional space needs, pending their long-term needs -- a new facility being either built for them or the facility that they occupy now at the Mill Hill in Trenton, here, being renovated. And we have a capital request to renovate that building in now. But this is for two-year temporary needs for them.

                  ASSEMBLYWOMAN POU: I’ll entertain a motion to move for approval on NPL 4494.

                  DEPUTY TREASURER SMARTT: So moved.

                  ASSEMBLYWOMAN POU: Second.

                  MR. MacCALUS: Okay, for the approval of NPL 4494, Senator Suliga votes yes, in the proxy.

                  Assemblywoman Pou.

                  ASSEMBLYWOMAN POU: Yes.

                  MR. MacCALUS: Deputy Treasurer Smartt.

                  DEPUTY TREASURER SMARTT: Yes.

                  MR. MacCALUS: Motion carries.

                  ASSEMBLYWOMAN POU: Next agreement, please.

                  MR. SUTKIN: This one bears a little explanation. The next three lease proposals are all linked. NPL 4496 -- the next one bears the same number, 4496, and the following one is 4497.

                  Just by way of background, the State’s public defender’s office and DYFS office in the county seat of Sussex, in Newton, were co-located in county-owned space. The county had plans for that county-owned space, and they requested our consideration to relocate so they could further their own needs for that space. We agreed, and we put out an advertisement for lease space located at 20 East Clinton Street, in Newton, and that location is under construction. There was a lot of back and forth, frankly, between us and the landlord, that took a while to iron out the most favorable terms for the State.

                  In the interim, the county-owned space had to be abandoned, and the new space was not occupiable yet. So, what we did was, we were able to locate, for the public defender’s office, space in their old courthouse, right there in the middle of the municipality of Newton. And we found some temporary space for the DYFS office.

                  The 4497, which is the third of the three that are linked, is approval for the State to use the county’s courthouse. Now that space, because there’s been a little time between meetings -- that space has already been occupied and abandoned. The county has to occupy-- The county is going to be renovating that building.

                  ASSEMBLYWOMAN POU: I’m sorry, would you repeat that, please? Which one is abandoned?

                  MR. SUTKIN: The public defender was in the county courthouse, the old courthouse, that needs to be renovated. It’s about 150 years old. So we had a six-month temporary lease there. That lease has expired already. And now we are -- the public defender is back to co-locating with DYFS in temporary space -- what’s known as the Shelby Building. I believe it’s suitable space. But they’re all there, now, pending completion of the construction project for the long-term fix, which is already an approved lease.

                  So that just -- so if I could summarize, the 4496 is for DYFS to go into the temporary space that they’re in now, pending completion. The second 4496 is for the public defender to go into this same space. And the third one was for the public defender to go into the courthouse, which they’re now out of. (laughter)

                  ASSEMBLYWOMAN POU: Any questions.

                  DEPUTY TREASURER SMARTT: There are no questions, but I see we have a representative of DYFS back in the back. Could you just explain for a minute, for the benefit of the Committee, the process that we went through to look for locations, alternate locations, in the area and how that worked between us and the Department?

F R A N C I S C O O R T I Z: My name is Francisco Ortiz.

                  ASSEMBLYWOMAN POU: I’m going to ask, if the person is going to speak, if you could please come forward for the benefit of our transcriber, so that we can record your comments accordingly.

                  DEPUTY TREASURER SMARTT: I know you don’t have prepared remarks, because you weren’t expecting this. I apologize.

                  MR. ORTIZ: It’s quite all right.

                  Good morning. My name is Francisco Ortiz. I work with the Department of Human Services. And in that capacity, I work with the members of the Division of Property Management and Construction in securing and maintaining our leases.

                  We received notification at the beginning of the year that we had to vacate that space. We, in fact, were being evicted by the county. And we worked very hard with the members of the Division of Property Management and Construction, particularly Mr. Smartt and Bernie McLaughlin and Ed Jenkins, in trying to find an emergency location that we can put these folks in. We exhausted all our available resources trying to find space in State-owned hospitals. We did an extensive search in trying to find other -- in other communities -- the space that we could house these people in. And unfortunately, we couldn’t find anything. And the best deal was this Shelby Building, which was right next door. And back -- you know, the neck-breaking speed to try to find the space and get it renovated all within 30 days-- So it was a lot of work in getting the State through, and hopefully we can avoid it in the future.

                  ASSEMBLYWOMAN POU: Thank you very much for your remarks. Thank you so very much.

                  At this time, I’d like to entertain a motion to -- on agreement NPL 4496; subsequent to that, NPL 4496, as also -- and NPL 4497, combined for us to approve all three.

                  DEPUTY TREASURER SMARTT: So moved.

                  ASSEMBLYWOMAN POU: Second.

                  MR. MacCALUS: Okay, on the motion to approve NPL 4496, 4496 Amendment 1, and 4497, Senator Suliga has left a proxy vote of yes.

                  Assemblywoman Pou.

                  ASSEMBLYWOMAN POU: Yes.

                  MR. MacCALUS: Deputy Treasurer Smartt.

                  DEPUTY TREASURER SMARTT: Yes.

                  MR. MacCALUS: The motion’s carried.

                  ASSEMBLYWOMAN POU: Thank you.

                  Next agreement, please.

                  MR. SUTKIN: The next agreement appears behind Tab Number 9. It’s for the Department of Law and Public Safety, the State Police, and it’s for them to occupy some space in Camden for a temporary period of one year, to be occupied by personnel involved in the Camden Anti-Crime Partnership.

                  Are there any questions related to this proposal? (no response)

                  ASSEMBLYWOMAN POU: I’ll entertain a motion to approve NPL 4500.

                  DEPUTY TREASURER SMARTT: So moved.

                  ASSEMBLYWOMAN POU: Second.

                  MR. MacCALUS: Okay, on the motion to approve as recommended NPL 4500, Senator Suliga has left a proxy vote of yes.

                  Assemblywoman Pou.

                  ASSEMBLYWOMAN POU: Yes.

                  MR. MacCALUS: And Deputy Treasurer Smartt.

                  DEPUTY TREASURER SMARTT: Yes.

                  MR. MacCALUS: Okay, motion is carried.

                  ASSEMBLYWOMAN POU: Next agreement, please.

                  MR. SUTKIN: The next item appears behind Tab Number 10. It’s NPL 4502. It’s for the Office of Administrative Law in the Department of Treasury. This is a temporary relocation pending resolution of the long-term needs of the Office of Administrative Law, which we’re addressing currently. It’s a two-year interim rental agreement to keep the court system operational. They had to abandon the previously occupied space. It was unsuitable for a variety of reasons that we can go into if need be. Approval of this action is requested.

                  ASSEMBLYWOMAN POU: The major concern was the life safety hazards? We don’t have to get into all the details, but was there anything outside of that particular area for safety purposes?

                  MR. SUTKIN: It wasn’t driven by the area, it was driven by the biddability of the space.

                  ASSEMBLYWOMAN POU: Okay, motion to approve NPL 4502.

                  DEPUTY TREASURER SMARTT: So moved.

                  ASSEMBLYWOMAN POU: Second.

                  MR. MacCALUS: Okay, on the motion to approve NPL 4502, Senator Suliga has voted yes, in the proxy.

                  Assemblywoman Pou.

                  ASSEMBLYWOMAN POU: Yes.

                  MR. MacCALUS: And Deputy Treasurer Smartt.

                  DEPUTY TREASURER SMARTT: Yes.

                  MR. MacCALUS: Motion is carried.

                  ASSEMBLYWOMAN POU: Next agreement, please.

                  MR. SUTKIN: Yes, thank you.

                  The next agreement appears behind Tab Number 11 in your book. It’s NPL 4504. It’s for the consolidation of certain Department of Environmental Protection units in the northern regional field offices. This is one that we very recently reached a successful negotiation with the landlord. And, therefore, we attempted to get all the Ts crossed and Is dotted in preparation for meeting with the Committee. We’re almost there.

                  There is certain additional information that we would require from the proposed lessor. The disclosure statement-- All the owners are disclosed; however, there is an issue related to their percentage of ownership, which we’re still tracking down. So with that, we’re compelled to ask you for conditional approval pending receipt of the adequate disclosure statement, which we’ll run by the Attorney General’s Office, and then we’ll have everything done that’s required without having to wait for a convening of the next Committee meeting.

                  ASSEMBLYWOMAN POU: How long is the conditional approval -- usually stand for? What’s the time frame involved?

                  MR. SUTKIN: I think conditional approvals are something-- There’s not much of a track record because it’s not, frankly, something that we’ve done, too much. I anticipate within the next two weeks or so we should have a fully complete disclosure statement. I can tell you that no lease would ever be signed without the adequate disclosure statement. We’ve already worked that out with Bob Shaughnessy’s associates in the Division of Law.

                  ASSEMBLYWOMAN POU: So if we were to approve this agreement, it would not require having to come back before this Committee for any further approval later. It’s just being approved on condition that all the requirements are being met as so stated.

                  MR. SHAUGHNESSY: That’s correct, Madam Chair, that’s correct. If you wanted to put a time limit on it, you could, but if that condition is not met, then it wouldn’t go into effect, your approval wouldn’t be effective.

                  ASSEMBLYWOMAN POU: So, in essence, it’s really not necessary for us to do that at this point.

                  MR. SHAUGHNESSY: Well, I think the recommendation is that it’s a conditional approval subject to receipt of a satisfactory disclosure statement. And that’s fully within this Committee’s parameters to make such a conditional approval.

                  ASSEMBLYWOMAN POU: Very well.

                  Any questions?

                  DEPUTY TREASURER SMARTT: Could you, when you get those remaining documents, and they’ve been reviewed and approved by the Attorney General’s Office, circulate them to the Committee members and to the Committee staff?

                  MR. SUTKIN: Absolutely.

                  ASSEMBLYWOMAN POU: Thank you.

                  Motion to entertain NPL 4504.

                  DEPUTY TREASURER SMARTT: So moved.

                  ASSEMBLYWOMAN POU: Second.

                  MR. MacCALUS: Okay, on the motion of NPL 4504, to approve conditionally upon receipt of all necessary documents, Senator Suliga has voted yes, in the proxy.

                  Assemblywoman Pou.

                  ASSEMBLYWOMAN POU: Yes.

                  MR. MacCALUS: And Deputy Treasurer Smartt.

                  DEPUTY TREASURER SMARTT: Yes.

                  MR. MacCALUS: The motion is carried.

                  ASSEMBLYWOMAN POU: Please continue.

                  MR. SUTKIN: The next item for your consideration is NPL 9032, appearing behind Tab 12 in your binder. It’s the one that we mentioned before, in Paterson, for the Department of Human Services, Division of Medical Assistance. It’s down the street from the other lease -- 100 Hamilton Plaza.

                  ASSEMBLYWOMAN POU: Thank you.

                  Motion to -- entertain a motion to approve NPL 9032.

                  DEPUTY TREASURER SMARTT: So moved.

                  ASSEMBLYWOMAN POU: Second.

                  MR. MacCALUS: Okay, on the motion to approve NPL 9032, Amendment Number 2, Senator Suliga has left a yes, in the proxy.

                  Assemblywoman Pou.

                  ASSEMBLYWOMAN POU: Yes.

                  MR. MacCALUS: And Senator -- Deputy Treasurer Smartt.

                  DEPUTY TREASURER SMARTT: Yes. Thanks for the promotion, John. (laughter)

                  MR. MacCALUS: The motion’s carried.

                  I’m sorry?

                  DEPUTY TREASURER SMARTT: Thanks for the promotion.

                  MR. MacCALUS: Oh, okay. Any time.

                  ASSEMBLYWOMAN POU: Please, next agreement.

                  MR. SUTKIN: The next item for your consideration is Number 13 in your binder. It’s NPL 2142. By the way, these are all interim lease agreements, not long-term lease agreements.

                  The first one is for the Department of Corrections, Division of Parole. They are presently on a month-to-month lease. As I mentioned before, when the term expires, we’re on what’s known as a month-to-month lease. That has certain risks of the landlord, in fact, doubling the rent, or eviction. The legal process is: They serve the demand letter, and then either they want us out, or we can negotiate terms.

                  In this case, the landlord just wants an increase in rate, because the lease has been around for a while, to reflect inflationary impact. And it’s a reasonable increase, and, therefore, we recommend it for consideration and approval pending resolution of the long-term needs of the parole office.

                  ASSEMBLYWOMAN POU: Motion to approve NPL 2142?

                  DEPUTY TREASURER SMARTT: So moved.

                  ASSEMBLYWOMAN POU: Second.

                  MR. MacCALUS: On the motion to approve, as recommended, NPL 2142, Senator Suliga has left a yes vote, by proxy.

                  Assemblywoman Pou.

                  ASSEMBLYWOMAN POU: Yes.

                  MR. MacCALUS: And Deputy Treasurer Smartt.

                  DEPUTY TREASURER SMARTT: Yes.

                  MR. MacCALUS: The motion is carried.

                  ASSEMBLYWOMAN POU: Steve, before we continue, are all the interim lease agreements that are listed here all falling under the same type of concern, and are they all on a month-to-month agreement?

                  MR. SUTKIN: The second question, no, they’re not all on a month-to-month.

                  ASSEMBLYWOMAN POU: Okay, then in that case-- I’m sorry.

                  MR. SUTKIN: The next one is.

                  ASSEMBLYWOMAN POU: Okay.

                  MR. SUTKIN: The next one is similar circumstances.

                  ASSEMBLYWOMAN POU: All right. I was trying to see which ones were similar so that we can proceed accordingly. But if not, then I’ll just take them individually. Why don’t we just go on to the next one, NPL 2616.

                  MR. SUTKIN: I think that the next one is the only one that fits the same factual pattern. There was a demand letter for the Department of Labor’s Employment Services. It’s month-to-month. It’s pending the long-term resolution of Labor’s programmatic requirements in those areas. And it’s an increase, a slight increase, in the monthly rental agreement. And it’s the same circumstances as 13.

                  ASSEMBLYWOMAN POU: Okay, do I hear a motion to approve NPL 3940?

                  DEPUTY TREASURER SMARTT: So moved.

                  ASSEMBLYWOMAN POU: Oh, I’m sorry, it’s 2616.

                  DEPUTY TREASURER SMARTT: So moved.

                  ASSEMBLYWOMAN POU: Second.

                  MR. MacCALUS: Okay, on the motion to approve NPL 2616, Senator Suliga has left a yes, in the proxy.

                  Chairwoman Pou.

                  ASSEMBLYWOMAN POU: Yes.

                  MR. MacCALUS: And Deputy Treasurer Smartt.

                  DEPUTY TREASURER SMARTT: Yes.

                  MR. MacCALUS: Motion is carried.

                  ASSEMBLYWOMAN POU: Next agreement.

                  MR. SUTKIN: Yes, just in the interest of consolidation, the next two items, 15 and 16, 3940 and 4450, respectively, are similar circumstances. These are for the Department of Human Services, Division of Youth and Family Services, DYFS. The first one is a two-year lease agreement for Morris County for DYFS’s programmatic needs; and the second one, 4450, is a one-year interim lease for DYFS’s office in North Brunswick, which actually has a reduction grant. I present those for your consideration.

                  And I would just like to note, in the interest of full disclosure, it’s an additional 1,410 square feet on the first one, 3940.

                  ASSEMBLYWOMAN POU: Any questions? (no response)

                  Motion to accept NPL 3940 and NPL 4450.

                  DEPUTY TREASURER SMARTT: So moved.

                  ASSEMBLYWOMAN POU: Second.

                  MR. MacCALUS: Okay, on the motion to approve, as recommended, NPL 3940 and 4450, Senator Suliga has left a yes vote, by proxy.

                  Chairwoman Pou.

                  ASSEMBLYWOMAN POU: Yes.

                  MR. MacCALUS: And Deputy Treasurer Smartt.

                  DEPUTY TREASURER SMARTT: Yes.

                  MR. MacCALUS: The motion is carried.

                  ASSEMBLYWOMAN POU: Next agreement.

                  MR. SUTKIN: This is also-- I’m sorry, it appears behind Tab Number 17 in your binder. It’s NPL 4456, for the record. This is a leasing action for the Division of Motor Vehicles, and it’s a two-year extension in which they’re-- It’s an interim lease. They’re already in occupancy. There’s a slight rental increase due to the demand letter from the lessor, which arose from the expiration of the term.

                  We looked at this lease. We thought it’s actually a very good idea, because they have about a year-and-a-half remaining on the lease. And by then, the programmatic needs of DYFS -- of DMV can be addressed.

                  ASSEMBLYWOMAN POU: I’m sorry for that interruption. I was really just trying to get a feel, in terms of would some of the proposed changes that are being looked at at the DMV, how would this really fall into place -- the fact that you’re now looking at an interim, two-year extension of the current lease. I assume this is working along -- it’s in concert with some of the future plans that they have. Is that right?

                  MR. SUTKIN: I think it works out well, because my recollection is that this two-year period doesn’t start today, it started back in March when we occupied the facility, and this will run to March 2004. Now, with the review of DMV’s offices, I don’t think a year-and-a-half is a bad amount of time to estimate when those programmatic changes will start to take effect, in terms of offices. So I think it’s very consistent with the requirements.

                  ASSEMBLYWOMAN POU: Any questions? (no response)

                  Motion to move NPL 4456.

                  DEPUTY TREASURER SMARTT: So moved.

                  ASSEMBLYWOMAN POU: Second.

                  MR. MacCALUS: Okay, on the motion to approve, as recommended, NPL 4456, Senator Suliga has left a yes vote by proxy.

                  Chairwoman Pou.

                  ASSEMBLYWOMAN POU: Yes.

                  MR. MacCALUS: And Deputy Treasurer Smartt.

                  DEPUTY TREASURER SMARTT: Yes.

                  MR. MacCALUS: The motion is carried.

                  ASSEMBLYWOMAN POU: Next agreement, please.

                  MR. SUTKIN: The next item appears behind Tab 18. It’s NPL 2574. It’s for DEP’s Bureau of Air Monitoring. This is a very limited space.

                  What’s the space, Bob?

                  MR. LaBATE: Three hundred square feet.

                  MR. SUTKIN: It’s only 300 square feet. It’s a location where they’ve been doing a lot of air studies and tests, which would be subject to ill-effect if they were moved. It’s a very limited engagement. It’s a new five-year lease. I would recommend it for the Committee’s approval.

                  ASSEMBLYWOMAN POU: What’s the cost of that lease agreement?

                  MR. LaBATE: The first year cost is $6,500.

                  ASSEMBLYWOMAN POU: And did you say it was on Tab 17?

                  MR. LaBATE: Eighteen.

                  MR. SUTKIN: Eighteen.

                  ASSEMBLYWOMAN POU: Eighteen.

                  Any questions? (no response)

                  Motion to approve NPL 2574?

                  DEPUTY TREASURER SMARTT: So moved.

                  ASSEMBLYWOMAN POU: Second.

                  MR. MacCALUS: Okay, on the motion to approve NPL 2574, Senator Suliga has left a vote of yes, by proxy.

                  Chairwoman Pou.

                  ASSEMBLYWOMAN POU: Yes.

                  MR. MacCALUS: And Deputy Treasurer Smartt.

                  DEPUTY TREASURER SMARTT: Before we finish, is there someone from DEP who can describe exactly what the equipment is and how this works -- what the facility is?

                  Thank you.

M I C H A E L L U C A S H: Michael Lucash, New Jersey Department of Environmental Protection.

                  We have sites all over the state that just house equipment and no staff. This particular location has been in existence for 20-some-odd years, where it collects data for attainment of Federal standards. Staff report there just to check equipment and gather data.

                  ASSEMBLYWOMAN POU: So it’s a storage location mostly.

                  MR. LUCASH: No, it’s a location that has computer and air sampling collection equipment.

                  ASSEMBLYWOMAN POU: Okay, thank you very much.

                  DEPUTY TREASURER SMARTT: And it’s about 300 square feet, you said.

                  MR. LUCASH: Yes.

                  MR. MacCALUS: Deputy -- I guess we can continue where we were. Deputy Treasurer Smartt.

                  DEPUTY TREASURER SMARTT: Yes.

                  MR. MacCALUS: Yes, and the motion is carried.

                  ASSEMBLYWOMAN POU: Next agreement, please.

                  MR. SUTKIN: Yes, the next item on the agenda is Number 19, NPL Number 4061, for the Department of Law and Public Safety’s Division of State Police. It’s known as the Unisys Hangar in Mercer County. This is a location that we’re presently in. It was one of the initiatives that we undertook, in accordance with our authority, to reduce rental terms and negotiate with the landlord we currently have. It’s obviously one of the few locations you can-- There’s not many hangers, so you want to occupy the ones that are available. This is one we’re already in, and it’s a new five-year term lease effective at this time.

                  ASSEMBLYWOMAN POU: Any questions? (no response)

                  I’d like to entertain a motion for NPL 4061.

                  DEPUTY TREASURER SMARTT: So moved.

                  ASSEMBLYWOMAN POU: Second.

                  MR. MacCALUS: On the motion to approve, as recommended, 4061, Senator Suliga has voted yes, in the proxy.

                  Chairwoman Pou.

                  ASSEMBLYWOMAN POU: Yes.

                  MR. MacCALUS: And Deputy Treasurer Smartt.

                  DEPUTY TREASURER SMARTT: Yes.

                  MR. MacCALUS: The motion is carried.

                  ASSEMBLYWOMAN POU: Next agreement, please.

                  MR. SUTKIN: The next item for your consideration is item Number 20, it is NPL 4451. It is for multiple departments and multiple agencies at 379 West State Street. It’s for parking needs. It’s a lot that’s on East State Street. It will satisfy long-term area needs within the city of Trenton, and was the subject of negotiation for a cost-savings of $18,000 per year from the previous agreement. I present it for your consideration.

                  ASSEMBLYWOMAN POU: Motion to approve.

                  DEPUTY TREASURER SMARTT: So moved.

                  ASSEMBLYWOMAN POU: Second.

                  MR. MacCALUS: On the motion to approve, as recommended, NPL 4451, Senator Suliga has left a yes vote by proxy.

                  Chairwoman Pou.

                  ASSEMBLYWOMAN POU: Yes.

                  MR. MacCALUS: And Deputy Treasurer Smartt.

                  DEPUTY TREASURER SMARTT: Yes.

                  MR. MacCALUS: Motion is carried.

                  ASSEMBLYWOMAN POU: Next agreement, please.

                  DEPUTY TREASURER SMARTT: Before we do the next one, just-- In going back over my notes, I just wanted to call to the Committee’s attention, I guess, the fourth one we did -- the Juvenile Justice Commission at Spruce Street. Just a couple of things for the record.

                  I hate to ask a former DAG a lead-in question, but could you describe the occupancy standards of the building when the administration began?

                  MR. SUTKIN: The situation was such that we had a department going into that space that we found, subsequently, did not need that space. We undertook an audit, around the turn of the administration of all State departments, to make a decision -- how much space that we were leasing was unoccupied.

                  Now, in the normal course of leasing, whether it’s commercial or public, there’s going to be a vacancy percentage. Not every space can be occupied, because it’s a dynamic human resource situation. But in this circumstance, we found that the department -- it was our determination from the audit -- did not need the space, and we were left with a situation where we had a lease, the department didn’t need it, and we had to scramble to find a department that was better suited in that facility.

                  We canvassed all the departments to find out who needed it. We evaluated all of our month-to-month leases in the area, and we worked cooperatively with the Department of Law and Public Safety’s JJC, Juvenile Justice Commission, to back them out of month-to-month leases and get them into this space. That was an initial 10,000 square feet of space. We found that the lessor had a contiguous 18,000 square foot of available space that we further utilized to consolidate JJC’s program and get them out of month-to-month leases.

                  For some reason, I don’t know the reason, but these are very favorable terms. It’s $12 a square foot, and it will satisfy the State’s long-term needs in that area, and the department’s.

                  DEPUTY TREASURER SMARTT: Do I understand, also, there was no rent paid on this building while it was vacant.

                  MR. SUTKIN: Yes, Bob LaBate here, to my right, was able to negotiate terms such that, during the period that the lease was not occupied, we paid no rent. Rather, we put the extended term to the back of the lease, which we would have had to pay anyway. So this is some of the hard work by Bob that paid off for the State.

                  DEPUTY TREASURER SMARTT: Thank you.

                  ASSEMBLYWOMAN POU: How long was it unoccupied, by the way?

                  MR. LaBATE: It was unoccupied for about five months.

                  ASSEMBLYWOMAN POU: Five months.

                  MR. SUTKIN: Our obligation to occupy it was, I believe, in January, and we moved JJC in, when, Bob?

                  MR. LaBATE: In June.

                  MR. SUTKIN: In June.

                  ASSEMBLYWOMAN POU: So that was a significant savings to us by the negotiation that you were able to do. But what was-- Do we have any indication of what that savings was?

                  MR. LaBATE: About $12,000 a month.

                  ASSEMBLYWOMAN POU: Wow, that’s quite a lot.

                  Okay, thank you very much.

                  Any further questions? (no response)

                  In that case, I think we were on our next item, which is--

                  MR. SUTKIN: The next item is the last item, Madam Chairwoman. It’s NPL Number 4498. It appears behind Tab 21. It is a five-year antenna lease agreement for the State Police that arises from the tragedy on 9/11, where we had antennas, I believe, on the World Trade Towers. They came down, and we’re in need of antenna service.

                  We looked at Jersey City, right across the Hudson, and we found a suitable location to place an antenna on one of the higher rooftops that will serve the State Police’s needs.

                  ASSEMBLYWOMAN POU: Any questions? (no response)

                  If not, I’d like to entertain a motion for NPL 4498.

                  DEPUTY TREASURER SMARTT: So moved.

                  ASSEMBLYWOMAN POU: Second.

                  MR. MacCALUS: On the motion to approve NPL 4498, Senator Suliga has left a yes, by proxy.

                  Chairwoman Pou.

                  ASSEMBLYWOMAN POU: Yes.

                  MR. MacCALUS: Deputy Treasurer Smartt.

                  DEPUTY TREASURER SMARTT: Yes.

                  MR. MacCALUS: The motion is carried.

                  ASSEMBLYWOMAN POU: Thank you very much.

                  I’d like to take this opportunity to thank the members of the Committee, Senator Joe Suliga and Deputy Treasurer Bob Smartt.

                  And thank you so very much for helping us to move this along so quickly and smoothly.

                  MR. SUTKIN: Thank you.

                  ASSEMBLYWOMAN POU: Thank you.

                  Motion to adjourn.

                  DEPUTY TREASURER SMARTT: So moved.

                  ASSEMBLYWOMAN POU: Second.

                  MR. MacCALUS: All in favor? (affirmative response) (laughter)

                  So moved.

                  ASSEMBLYWOMAN POU: Thank you.

 

(MEETING CONCLUDED)