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AGO Opinions with Topic: OFFICE OF FINANCIAL MANAGEMENT
AGO 2008 No. 10 >  November 3, 2008
PUBLIC WORKS AND IMPROVEMENTS - STATE BUDGET - OFFICE OF FINANCIAL MANAGEMENT - STATE TREASURER
Interpretation of budget language authorizing construction on the “Wheeler Block” site in Olympia

1. The maximum occupancy cost per square foot provision of subsection (8) of the capital budget authorization for the “Wheeler Block” development applies only to the “office building” component of the proposed project. 2. In calculating the occupancy cost per square foot on the “Wheeler Block” project, the calculation may be performed on both a square foot and a per employee basis, but it is not necessary to perform both calculations on the same structures. 3.  The lease rate adjustment that is to be performed based on “level of service” should take into account differences in essential systems and general services that are typically provided to office tenants. 4.  The total cost of the “Wheeler Block” facilities to be financed will effectively be limited by a guaranteed maximum price development agreement. 5.  With respect to the Office of Financial Management (OFM) certification referred to in the budget authorization for the “Wheeler Block” project, the Legislature assumes that OFM will properly exercise its discretion in making the certification; the law does not permit the state Treasurer to reject the certification as “inaccurate.” 6.  A properly drafted financing contract that complies with RCW 39.94 and which is accompanied by (1) a properly drafted Finance Committee resolution and (2) properly drafted transaction and offering documents will not create state indebtedness; the use of 63-20 financing would not change this result. 7.  Facilities that are constructed under properly authorized and structured “63-20 financings” do not constitute “public works” under RCW 39.04.

 

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