Property Management Past, Present, and Future Northwest Regional Right of Way Conference Vancouver, Washington October 27, 2015 Craig Sisson Leasing Program.

Property ManagementPast, Present, and Future

Northwest Regional Right of Way ConferenceVancouver, Washington

October 27, 2015

Craig SissonLeasing Program Supervisor

Michelle NewleanDisposal Program Supervisor

Property Management Objectives

Provide Effective Management and Security for all WSDOT Properties

Ensure Receipt of Fair Market Value for all Sales and Leases

Dispose of Property No Longer Needed by the Department

Eliminate Hazards/Public Nuisances on or Caused by WSDOT Land or Improvements

Activities in Property Management

• Disposal• Leasing (Displacee, Residential, Commercial,

Ground, Airspace, Wireless)• Rental Accounts• Facilities – Radio Sites• Inventory, Inspection, and Ongoing Management

of WSDOT Owned Properties

Leasing - RCW 47.12.120

Contacts: Randy Johnson (360) 705-7358

Leasing & Special Projects Manager

Craig Sisson (360) 705-7327Leasing Program Supervisor

Robin Curl (360) 705-6968Lease Review & Training Development

David Yoon (360) 705-7301Wireless & Facilities Leasing

• No Termination Provisions for Convenience – Forever Deals?

• Vague Use of Premises Language

• Insurance/Indemnification Language

• Mutual Benefits – Or Are They?

• Less Than Stellar Exhibit Maps

• Leasing Rights Granted by Permit or Other Instrument

Past Leasing Issues

Common Lease Types

• Residential Displacee Lease

• Commercial Displacee Lease

• Single Family Residential Lease

• Ground Lease

• Airspace Lease

• Wireless Leases

• Cooperative Agreement

Current Process

• Formal Request – Completion of Application

• Region Review

• Preparation of Lease Document

• Determination of Fair Market Value

• HQ Review of Document

• AAG/FHWA Review (if necessary)

• Finalization and Execution of Lease Document

Airspace Leasing – Most Common

Definition:

airspace (âr'spās'): that property at, above, or below the gradeline of all

completed highways, as well as the area alongside

the traveled way.

Airspace Lease (cont.)

Airspace Lease (cont.)

Airspace Lease (cont.)

Airspace Lease (cont.)

Functions

• Wireless – The use of WSDOT property for communications purposes such as commercial wireless, emergency services, and public safety.

• Radio – The use of private property leased by WSDOT for our communications needs.

• Facilities – The use of WSDOT Capital Facility properties (maintenance sites, pit sites, stockpiles sites, excess office space, etc.)

Wireless & Radio Leases

One of the most overlooked functions of WSDOT that serves the communications needs for WSDOT, State Patrol, Emergency Services and serves the State in time of crises and natural disasters.

• Access• RCW 47.04.045• Non-negotiable Lease

Language• Rent Schedule• The Problems of

Prorating• Rent Adjustments• Site Identification

Wireless in Right of Way

WSDOT Tower Impact

STEP 1 ANTENNA BASE RATE $175.00 Antenna Size Rate Enter ZoneAntenna Rate for Location

Amplifier/ODU

Number of units Unit Total Amplifier total Antenna Total

1A ENTER SIZE FACTOR OF ANTENNA 1 NONE 0 ZONE 4 $0.00 No 6 $0.00 $0.00 $0.001B ENTER SIZE FACTOR OF ANTENNA 2 NONE 0 ZONE 6 $0.00 No 3 $0.00 $0.00 $0.001C ENTER SIZE FACTOR OF ANTENNA 3 NONE 0 ZONE 1 $0.00 No 1 $0.00 $0.00 $0.001D ENTER SIZE FACTOR OF ANTENNA 4 NONE 0 ZONE 1 $0.00 No 1 $0.00 $0.00 $0.001E ENTER SIZE FACTOR OF ANTENNA 5 NONE 0 ZONE 1 $0.00 No 1 $0.00 $0.00 $0.001F ENTER SIZE FACTOR OF ANTENNA 6 NONE 0 ZONE 1 $0.00 No 1 $0.00 $0.00 $0.00 ODU/RRU/ 1G ENTER SIZE FACTOR OF ANTENNA 7 NONE 0 ZONE 1 $0.00 No 1 $0.00 $0.00 $0.00 (Out Door Unit (TX/RX))1H ENTER SIZE FACTOR OF ANTENNA 8 NONE 0 ZONE 1 $0.00 No 1 $0.00 $0.00 $0.001I ENTER SIZE FACTOR OF ANTENNA 9 NONE 0 ZONE 1 $0.00 No 1 $0.00 $0.00 $0.00 2-WAY Standard Antenna1J ENTER SIZE FACTOR OF ANTENNA 10 NONE 0 ZONE 1 $0.00 No 1 $0.00 $0.00 $0.00

Total Tower impact summary $0.002-WAY YAGI

STEP 2 ODU and Modem (RRU)ENTER FLOOR/RACK SPACE RATE

2A Select space use $1,000.00 TOWER TOP ZONE 62B Multiply # racks, outdoor cabinets, site size 1.00

TOTAL FLOOR OR SPACE RATES Space Subtotal $1,000.002C ADD ADDITIONAL GROUND SPACE SQ FT Additional sq total $0.00 120 TO 140 ZONE 5

EQUIPMENT FLAT RATE FEE TX/RX Flat rate costs $0.00 CELLULAR ARRAY2D ENTER TRANCEIVER- RECEIVER EQUIPMENT (TX/RX) COUNT TX/RX Subtotal $0.002E ENTER GPS or RECEIVE ONLY Units (50% TX or TX/RX units) GPS Subtotal $0.00

# EQUIPMENT TIMES FLAT RATE PER UNIT Equipment Subtotal $0.00 90 TO 119 ZONE 4

TOTAL FLOOR/SPACE RATE $1,000.00

50 TO 89 FT ZONE 3 Panel Antenna Sector AntennaSTEP 33a ENTER Road fees or other misc fees $0.003b ENTER POWER FEE - IF NEEDED $0.00

5 TO 49 FT ZONE 2

SUBTOTAL ANTENNAS, SPACE, MISC $1,000.00

ROOF OR OTHER ZONE 1STEP 44A SELECT SITE CLASS, ONE to FIVE Site Class 1 LARGE MICROWAVE SMALL MICROWAVE

SUBTOTAL TIMES SITE CLASS FROM STEP 6 $1,100.004B SELECT LOCATION MODIFIER Heavy urban

TOTAL: SITE, LOC, ANTENNAS, SPACE, +MISC, $1,210.00

STEP 55A ENTER TYPE OF LEASEE COMMERCIAL LIST Type

$1,210.00 Type Multiplier5B SELECT lease Year 2015

Tenant Total $1,415.53 per month$16,986.35 per year RACK 2X RACK 3X RACKS Out door Cabinet SHELTER

Land, facility and/or shelter impact

User Designation

LEASE RATE CALCULATOR

RW < 200SF - Utility Pole application

Miscellaneous fees

Site Class/Location Multiplier

Antenna description

Tower Zones

Rent Calculator

When it Goes Terribly Wrong!

“…even the most carefully prepared plans often go wrong.”

~Otto Friedrich

These Are NOT WSDOT Sites!

• FY 2011: $3,981,117.43

• FY 2012: $3,629,478.33

• FY 2013: $4,332,756.52

• FY 2014: $4,839,934.95

• FY 2015: $5,235,070.26

• Also Received an Additional $12,178,378 in Completed WSDOT Projects from Sound Transit Over FY 2014 and 2015.

Past Revenue

• Increased Revenue to Help Budget Challenges

• Review and Update Existing Leases

• Cure Encroachment Issues We Know Exist on Highways

• Increased Training Opportunities

Leasing In The Future!

Property Management Disposal

Contacts: Michelle Newlean (360) 705-7332

Disposal Program Supervisor

Eva Betts (360) 705-6944Surplus-Western Washington

Risa Foley (360) 709-8229Surplus-Eastern Washington

Jeff Bill (360) 705-6937Statewide Disposal Appraisals

Disposal

Risa is a Nana!

Disposal

Welcome to the Disposal Team Ms. Laura Marie!

Dedicated Disposal Staff Contacts: Sharon Caudill (206) 440-4171

Northwest Region

Herb Dick (360) 357-2797Olympic & Southwest Regions

Jennifer Hoff (509) 577-1662North Central, South Central, & Eastern Regions

Brad Berry (360) 705-7323Right of Way Plans

Adopted Staff- Bill Moody & Brent Bergquam Appraisals

Disposal

• 2008 Legislative Directive

Surplus all department owned properties no longer needed for a highway purpose– Initially identified 384 potential surplus

properties– There have been 1,200 potential surplus

properties identified to date

Disposal

• Double the number of properties to market• Bring in an additional $3 million per year in

revenue

How is Disposal going to

achieve these goals?

Disposal Goals

• DISPOSAL REVIEWPast-Separate review in the regions and HQ

Present-Region review that includes HQ staff

• PLAN REVIEW (indicate property is surplus & show size)

Past-Regions completed their own revisions

Present-Dedicated HQ Plans employee

• APPRAISALPast-Random assignments based on availability

Present-Dedicated HQ Disposal Appraiser/Region Appraiser Assistance/Contracting Private Appraisers

Disposal Process Changes

• APPRAISAL continuedPast-Value Memos for properties valued at $25,000 and lessPresent-Pilot Project through FHWA to allow Value Memos for properties valued at $50,000 or less

• 60 DAY NOTICEPast-Mailed notices and waited Present-Email notices and request a waiver if not interested

• FHWA REVIEW (surplusing along interstate or conveying for less than fair market value)

Past-Mail package and wait for approvalPresent-Submit package electronically and use SharePoint Site to track requests

Disposal Process Changes

• AUCTIONSPast-Two auctions per year (May and October)Present-Three auctions per year (February, May, and October)

• AUCTION-DATE PROJECTIONPast-Whatever properties were “ready” went to auctionPresent-Project auction date for each property and make those a priority

• AUCTION-PROPERTY POSTINGSPast-HQ handled posting all properties with “For Sale” signs

Present-Team Effort-Regions, HQ, and others help with posting

Disposal Process Changes

• AUCTION NOTIFICATIONPast-Mailed auction brochure to mailing list (1,700 + people)Present-Email auction notification, mail post cards, and direct

interested parties to our website

• AUCTION WEBSITE (www.wsdot.wa.gov/realestate/auction)

Past-Minimal informationPresent-Interactive Google map with unsold auction properties

that are available and upcoming properties

• AUCTION ADVERTISINGPast-Advertise for two consecutive weeks at least two weeks prior

to the auction in BOTH the classified and legal section of a newspaper of general circulation in the area in which the property is locatedPresent-Statute modified last legislative session to allow the

department to select most appropriate advertising method

Disposal Process Changes

•AUCTION STRUCTUREPast-Sealed bid auction

Present-Sealed bid auction

•AUCTION BIDDINGPast-If not hand delivered, bids sent to a PO Box using special colored envelopePresent-If not hand delivered, bids must be sent to street address using Fed Ex or UPS (no USPS)

•AFTER AUCTION OFFERSPast-For properties over $10,000, publish legal notice giving

general public 10 days to submit a counterofferPresent-This statutory requirement was removed during the last

legislative session

Disposal Process Changes

Disposal-Properties to Market

• FY 2009 $4.1 million

• FY 2010 $1.5 million

• FY 2011 $5.4 million

• FY 2012 $3.6 million

• FY 2013 $3.6 million

• FY 2014 $5.5 million

• FY 2015 $6.7 million

Disposal-Revenue

• $13.5 million in unsold auction properties

• An additional $2.2 million

in properties placed on hold

• 500 properties currently in review

Disposal Struggles

Disposal-Future

Questions?