25A - AGMT - WORK CENTER PARTNER

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MOU with Home Ownership OC at the WORK Center July 16, 2019 Page 2 negotiations as well as to provide oversight of how the One Stop services are delivered within the local area. Home Ownership OC, a 501(c)(3) non-profit organization expressed an interest to enter into an MOU and co -locate with the WORK Center (219 Square Feet). The organization focuses on providing free foreclosure prevention programs. Programs include credit and budget coaching, homebuyer coaching, foreclosure prevention and post purchase coaching. These services complement the WORK Center's current workforce programs specifically by counseling laid -off workers who are concerned about making mortgage payments while unemployed. The MOU will have an effective date of August 1, 2019. Billing for rent and infrastructure costs will commence upon approval by City Council. 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 Home Ownership OC and their financial contributions to run the center: Partner Organization Sq. Ft. of Year 1 Contribution 1 Occupancy (Rent, equipment and infrastructure) Home Ownership OC 1.13% $6,781 ' Year 1 contribution rounded to nearest dollar and based on assumption of a move in date of August 1, 2019 — June 30, 2020. it also includes share of initial infrastructure costs prepaid by the City in FY 2017-18. 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. On May 7, 2019, the City Council approved the first amended and restated Phase II Memorandum of Understanding with co -located partner organizations at the WORK Center and authorized reimbursement from partners in the estimated amount of $1,280,530. 25A-2