state buildings

With $700K spent, new Reelfoot Lake State Park building may be torn down rather than finished

State officials are tentatively planning to demolish an interpretative visitors center that has been under construction at Reelfoot Lake State Park rather than complete it, reports the Commercial Appeal. That comes 18 months after a ceremonial groundbreaking, expenditure of up to $700,000 in taxpayer dollars and an audit indicating possible bidding improprieties in awarding a construction contract.

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Legislature could leave JLL when it vacates the Legislative Plaza this fall

It’s at least possible that Chicago-based Jones Lang LaSalle, “Gov. Bill Haslam’s favorite real estate management-services provider, “ won’t get the contract for janitorial and maintenance services at a renovated Cordell Hull State Office Building when the General Assembly move there this fall, reports Andy Sher.

Senate Speaker Randy McNally and House Speaker Beth Harwell confirmed to the Times Free Press that JLL has no automatic lock on a contract for services at the 1950s-era Cordell Hull building when a $116 million renovation is complete.

“We have decided to put it out for bid, and of course, they can bid and other companies might bid,” McNally said. “But we’re looking, you know, for the best deal we can get.”

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Former TRA headquarters sold for $8.9M — $8.5M for state, $400K for auction company

The Nashville building that was for years home to the Tennessee Regulatory Authority, previously known as the Public Service Commission, was sold at auction Wednesday for just over $8.9 million, according to the Nashville Post. Included was an adjacent parking lot.

The state Department of General Services says via email the state gets $8.5 million of the money. The rest of the $8,925,000 price goes to the real estate company handling the sale.

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State officials give final approval to five-year outsourcing contract with JLL

News release from Department of General Services

The State of Tennessee has executed a five-year contract with Jones Lang LaSalle (JLL) to provide statewide facilities management services.  The contract is effective today (May 26, 2017).

JLL was selected following a two-year multi-step procurement process led by the state’s Central Procurement Office that included representatives from higher education, general government and the legislature.

As we have consistently said, the contract will protect the livelihoods of current state facilities management employees, and is another tool for state departments and institutions to use to keep their expenses low, reducing the need for cost and tuition increases.

To view the contract, (go HERE.)

 Contract Background and Highlights

 ·         The State of Tennessee began to look at opportunities in professional facilities management services after studying results from 10 million square feet of state-owned office buildings currently under a similar arrangement in which taxpayer savings of about $26 million were achieved over three years. An additional third-party inspection of the cost analysis upheld forecasted savings if the program were expanded to more state buildings.

·         Participation by state agencies and institutions is voluntary.

·         The contract includes strict provisions that JLL will retain all current state facilities employees (provided they pass a background check and drug screening).

·         JLL will provide compensation equalization for every employee that is transitioned to ensure that they are made whole at the time of transition.

·         Tennessee’s facilities management program implemented in 2013 is considered innovative nationally, receiving awards from the National Association of State Procurement Officials (NASPO) in 2014 and from the National Association of State Chief Administrators (NASCA) in 2015.

Today the state is also announcing Charles Burkett as the contract governance executive.  A Memphis native, Burkett is a 41-year veteran of the financial services/ banking industry, and most recently a member of the University of Memphis leadership team serving as advisor to the president.  In his role at the university, Burkett was responsible for a range of strategic initiatives including implementation of quality improvement measurements of student satisfaction and managing residence life and dining.

In his new contract governance role, he will be responsible for ensuring the overall oversight of the statewide contract to ensure best service across all stakeholders, and for serving as the main point of contact for interested entities that would like to request a quote for service.

Burkett is a former member of the state’s FM Steering Committee, and will continue to serve as a liaison between the statewide contract with JLL and committee members, which will transition in name to Board of Advisors. Representatives on this advisory committee are from higher education and general government leadership.

Note/UPDATE: The Nashville Post reports Burkett will be paid $95 per hour under a contract, which would be $197,600 for a full year of 40-hour week – more than $20,000 more than his salary at the University of Memphis. Further:

He (Burkett) also was a member of the Facilities Management Steering Committee, which oversaw the secretive two-year process that resulted in JLL’s contract. Roberson said the steering committee will transition to a “Board of Advisors” overseeing the contract.

Roberson said the membership of the new board of advisors could be shaken up, but as it currently stands it consists of the head of the Department of Customer Focused Government, Terry Cowles (salary: $150,000); Bob Oglesby, the commissioner of the Department of General Services (salary: $159,996); Mike Perry, the head of procurement in General Services (salary: $147,900); Larry Martin, the commissioner of the Department of Finance and Administration (salary: $190,260); Brock Hill, a deputy commissioner of the Department of Environment & Conservation (salary: $146,532); Russ Deaton, the deputy executive director of the Tennessee Higher Education Commission (salary: $155,004); Rick Nicholson, the budget analysis director for the Senate (salary: $110,220); and David Miller, the CFO of the UT system (salary: $310,000). TBR has not had a member on the committee since Warren Nichols left for a new job at the beginning of the year but is expected to appoint someone soon.

Outsourcing update: Discontented legislators, JLL satisfaction survey questioned, etc

Some state legislators are not satisfied with Department of General Services Commissioner Bob Oglesby’s response to their request for an economic impact statement on the impact of a new contract for outsourcing management of more state buildings — or with Jones Lang LaSalle’s performance under its current, more limited contract. So  reports the Nashville Post in reviewing the status of Gov. Bill Haslam’s privatization efforts.

An excerpt:

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Comptroller poses 53 questions on JLL outsourcing contract, awaits answers

State Comptroller Justin Wilson’s office has run a proverbial fine-toothed comb through the governor’s potential building management contract with Chicago- based Jones Lang LaSalle, reports the Times Free Press.

The contract is valued at an estimated $1.9 billion over a five-year period, the amount state and higher education facilities are expected to pay for operating their buildings.

As a result of the review, Wilson said in an interview, administration officials have “already indicated to me they will make changes. Now what they are exactly I don’t know.”

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42 legislators ask delay in outsourcing; contract signing ahead of schedule

A week or so after 42 state legislators called for a delay in finalizing higher education outsourcing plans, Jones Lang LaSalle officials signed the company’s contract with the state ahead of schedule.

The Times-Free Press initially reported on the legislators’ letter to Gov. Bill Haslam’s outsourcing czar, Terry Cowles. It asks “that the outsourcing process wait until the General Assembly is able to study and understand the effects on our public services, economy, and state workers.”

The Nashville Post reported Tuesday in an overview of recent outsourcing developments that JLL officials actually affixed their signatures to the contract document on Friday, a week earlier than planned.

The contract is under review by the comptroller’s office before the state can officially sign off on it, but that review could be complete by the end of the day Friday, according to comptroller spokesperson John Dunn. The state’s bond counsel is also reviewing the contract to insure compliance. According to Dunn, that office has been asked to expedite its review but no firm time frame for its completion exists.

But criticism is pouring in from legislators and students, as letters and complaints fly to and fro, and University of Tennessee at Knoxville students held a large protest on Monday.

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State sells 119-acre Nashville prison site for $12.1M

Rogers Group Inc. has paid the State of Tennessee $12.1 million for the 119-acre vacant former Charles Bass Correctional Complex property in West Nashville, reports The Tennessean.

The Nashville-based provider of crushed stone, sand and gravel, asphalt and highway construction declined to comment on its purchase of for the site, which sits across Richland Creek from its REOStone quarry on Robertson Avenue.

…A new quarry is among possibilities for the property, which could also be used for offices and warehouse, maintenance and/or river transportation-related activities.

Earlier this year, Rogers Group made the highest offer of $12.5 million among six suitors for the site at 7177 Cockrill Bend Blvd. The 119-acre location includes the shuttered 162,700-square-foot former medium-security correctional complex.

The property borders the Cumberland River and a pair of industrial buildings. It is a half-mile from the John C. Tune Airport in an area with many warehouses and light industrial businesses.

Old TRA/PSC/PUC building to be sold at auction by state

More than two acres of state-owned property in downtown Nashville, formerly used by the Tennessee Regulatory Authority (previously known as the Public Service Commission and soon to be known again by its ancient label of Public Utilities Commission), is being sold at auction on June 21, reports The Tennessean.

Chattanooga-based Compass Auctions & Real Estate LLC will oversee the auction… (of) two tracts on the north side of James Robertson Parkway and Gay Street … (including) a 45,294 square foot office building on the roughly 1.18 acres at 460 James Robertson Parkway (that) once housed the Tennessee Regulatory Authority (and)… the 0.87-acre parking lot site (nearby) will be offered in two separate, but adjoining, parcels and as a whole.

David Roberson, a spokesman for the state’s Department of General Services, said state law allows sale of properties by auction. “Because this is a high-profile property, we decided an auction would produce the highest and best price for Tennessee taxpayers,” he added.

Justin Ochs, vice president of national development for auction and real estate company Compass, said the property located near the NewsChannel 5 Network headquarters is already drawing interest from across the country.

“Downtown Nashville has become a place where families want to live and businesses want to operate,” he said.

Note: The TRA, once a major player on the Tennessee political scene under the name Public Service Commission, has become somewhat incidental in the overall lay of the state governmental landscape in the last couple of decades and is deemed no longer worthy of having a headquarters building (probably appropriately). The agency’s name is also being changed again in its days of dwindling significance to its original name — or, well, pretty close to it. See previous post HERE.

Haslam budget booster amendment: Surplus money for new state library, roads

With his tax package now approved by the legislature, Gov. Bill Haslam Tuesday proposed some changes to the 2017-18 state budget plan he presented back in February.

Maybe the most notable revisions are the addition of $55 million in supplemental one-time funding (from the current budget surplus) on road projects — beyond what is envisioned in his tax bill, which includes higher gas and diesel fuel taxes — and $40 million towards the $98 million needed to build a new state Library and Archives building, advocated for years by Secretary of State Tre Hargett.

Both of those proposals are virtually guaranteed approval of the legislature as lawmakers get into serious work on the budget next week. The publicly-released documents don’t say which road projects get the new advance funding (but one could speculate that projects in the districts of legislators who voted no on his proposl might not be a high priority). It also appears that the governor is leaving about $125 million in surplus money for legislators to distribute as they, collectively, decide how to spend.

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ABOUT THIS BLOG

Former Knoxville News Sentinel capitol bureau chief Tom Humphrey writes about Tennessee politics, government, and legislative news.

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