80A - JOINT WORK CENTER MOU - Laserfiche WebLink

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First Amended and Restated Phase II MOU with Partner Organizations at The WORK Center May 7, 2019 Page 3 Billing for rent and infrastructure costs will commence upon approval by City Council. The first billing will include a pro rata adjustment with full billing thereafter each month. Under the terms of the master lease, the base rent is scheduled to increase annually three percent. Recurring infrastructure expenses such as telephone, photocopier rental equipment and in -suite security will be evaluated annually with increased costs shared by the on -site partners based on the allocation method identified in the MOU. This action will give the City Manager authority to approve non - substantial amendments to the MOU's such as adjustments to the shared costs that may arise during the three year MOU term. The chart below reflects the shared occupancy by each co -located partner and their financial contributions to run the center: Partner Organization Sq. Ft. of Occupancy Year 1 Contribution (Rent, equipment and infrastructure) City of Santa Ana — WORK Center 44.59% $285,1472 Employment Development Department 43.58% 306,6833 County of Orange Social Services Agency 6.17% 35,747 SER — Jobs for Progress, Inc. 3.40% 15,392 Dept. of Rehabilitation 1.13% 7,235 Santa Ana Housing Authority 1.13% 7,235 TOTAL 100.00% $657,439 ' Amounts rounded to nearest dollar. Total includes share of initial infrastructure costs prepaid by the City in FY 2017-18. 3 Total includes share of initial infrastructure costs to be paid by EDD to the City in one lump sum in Year 1 only. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #2 Youth Education, Recreation, to objective #4 (Partner with groups and organizations to promote education, senior services, job training and development for all Santa Ana residents). FISCAL IMPACT The City Council approved the master lease agreement for the office space at 801 W. Civic Center Drive on October 3, 2017. Additionally, in FY 2017-18, the WORK Center paid all the initial infrastructure costs necessary to prepare the new center for occupancy. The WORK Center's share of the AJCC monthly operational costs are budgeted and available in the FY 2018-19 WIOA and Orange County Grant account (nos. 12318xxx-various and 12418xxx-various). Funds for the Work Center's share of the operational costs for future fiscal years will be included in each respective fiscal year budget to be approved by City Council on an annual basis. • I .