11.2.3. Leases

Leases can be broken down into categories. There are Payable or Receivable leases. There are leases of Buildings and Properties or leases of equipment. There are operational and capital leases. This introduction to leases will give some general guidelines in dealing with different types of leases.

Leases of Buildings and Properties

Whether you are dealing with a Payable (you need to lease space) or a Receivable (someone has requested to lease space) the first contact you need to make is with the Facilities Department. Facilities is located on the 6th floor at City Centre. The Director is Jenny Hannah. Facilities is responsible for all lease negotiations. Facilities also files all property tax exemption claims for KCSOS. They need to be aware of all leases regarding buildings and properties.

Facilities will work with the department and Schools Legal to prepare or review a lease on behalf of KCSOS. When they have a lease document, they will submit it to the Business Office for workflow reviews and approvals.

The Business Office will then be responsible for obtaining internal signatures and sending the signed document to the vendor or customer. Occupation of the site should not begin until all parties have approved and signed the lease document.

The Business Office will make a schedule for payment or receipt of payment over the life of the lease. Business Office will notify the appropriate Director when lease is about to expire to allow time for renewal, renegotiation, or cancellation as the Department deems appropriate.

Equipment Leases

An equipment lease should begin by obtaining quotes; a bid; or a piggy-back contract. Depending on the type of lease and the origination (quote or bid) you may or may not have to send a Purchase Order to order the equipment from the vendor.

If a lease will be necessary to finance the equipment the lease needs to either be imported into Workflow (Laserfiche), or brought to the Business Office, for approval and signature prior to the equipment being delivered.

If lease is with a new vendor or finance company (new being a vendor that we do not currently have a lease arrangement with), it may take several weeks to get all needed approvals, so please allow enough time for approval in your schedule.

The Business Office will notify the requesting department or vendor when the lease document has been signed so that arrangements can be made for the delivery.

Once the equipment has been delivered, the signed lease document will be sent to the vendor or finance company for processing. The Business Office will make a schedule for payments for the life of the lease and will encumber for each FY prior to the first payment due for that year.