Item 38 - Lease Agreement for the Santa Ana WORK Center

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Lease Agreement for the Santa Ana WORK Center June 6, 2023 Page 2 3 4 8 9 The WORK Center is a component of the City's economic development efforts by providing employment and training services and assisting Santa Ana based businesses in acquiring skilled employees. In fiscal year 2022-23, the WORK Center served 8,500 people and invested over $450,000 in direct vocational skills training. More than 2,500 clients received one-on-one assistance with their resumes and 65% of the participants were employed within three months after completion of the workforce program. In addition, the WORK Center’s business services team visited 187 Santa Ana businesses to promote customized training, recruitment services, and rapid response programs. On October 3, 2017, the City Council approved a five-year lease agreement at 801 W Civic Center Drive to house the Santa Ana WORK Center. As the primary recipient of WIOA funding, the City holds the master lease agreement and has sublet space to partner organizations that assist in the delivery of workforce services or offer support services that are a benefit to the WORK Center client. Those on-site partners are the Employment Development Department, Orange County Social Services Agency (SSA), Santa Ana Housing Agency, Department of Rehabilitation (DOR), and SER Jobs for Progress. Staff evaluated several alternate office locations and determined that the current location, office design, and property management at 801 W. Civic Center met the needs and supported the delivery of services best to the community (Exhibit 1). Under the terms of the lease, the City will be responsible for payment of the monthly rent. Partners who co-locate at the WORK Center will reimburse the City based on their direct occupancy and a percentage of the suite’s common area and office building common area charges, and shared operating costs (security, telecom, IT maintenance, and office cleaning). The co-located partners have informed staff that they would like to continue to offer services on-site and indicated their desire to sign a renewal to their sub lease agreements. SSA, SER Jobs for Progress, and the City’s Housing Authority expressed the desire to increase the number of staff delivering services on-site at the WORK Center. Authorization of the first amendment to the lease agreement will allow staff to finalize the sub lease agreements and Memorandum of Understanding (MOU) with EDD and SSA (Exhibit 2 and 3). The remaining partners SER, DOR, the Housing Authority, and Economic Development/WORK Center use the MOU as the primary document to reimburse the City for their portion of rent and shared costs associated in operating the WORK Center (Exhibit 4). Now that the lease terms have been finalized, the MOU boilerplate will be updated to reflect each partner’s direct and shared costs and signed by all parties. FISCAL IMPACT The City’s share of the monthly lease payment is budgeted and available in various Work Center grant program account (nos. 12318xxx-62500 WIOA Grant Rent Payments and 12418737-62500 SSA VT WEX Rent Payments). Upon completion of sub lease