f (Miguel A. Santana City Administrative Officer Chair, Municipal Facilities Committee

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1 TRANSMITTAL COUNCIL FILE NO. TO DATE Council FROM Municipal Facilities Committee 5 COUNCIL DISTRICT At its meeting of May 26, 2016, the Municipal Facilities Committee (MFC) adopted the recommendations of the attached Department of General Services (GSD) report, which is hereby transmitted for Council consideration. Adoption of the report recommendations would authorize GSD to execute a non-profit lease between the City of Los Angeles and the Jewish Vocational Service for property owned by the City located at 1623 South La Cienega Boulevard. There is no impact on the General Fund as a result of the recommended actions. f (Miguel A. Santana City Administrative Officer Chair, Municipal Facilities Committee MA S:KG: c

2 TONY M. ROYSTER GENERAL MANAGER AND CITY PURCHASING AGENT City of Los Angeles CALIFORNIA r*u* Agenda Item #7 DEPARTMENT OF GENERAL SERVICES.Room 701 City mall South 11i east First Street Los Angeles, CA (213) FAX No. (213) ERIC GARCETTI MAYOR May 26, 2016 Honorable City Council City of Los Angeles c/o City Clerk Room 395, City Hall Los Angeles, California Attention: Eric Villanueva, Legislative Assistant REQUEST FOR AUTHORIZATION TO NEGOTIATE AND EXECUTE A NEW LEASE WITH THE JEWISH VOCATIONAL SERVICE. A NON-PROFIT ORGANIZATION The Department of General Services (GSD) requests authority to negotiate and execute a new Lease for the Jewish Vocational Service (JVS) a non-profit organization located at 1623 South La Cienega Boulevard in Los Angeles, California. BACKGROUND The JVS is a non-profit organization offering a variety of services through job training, mentoring and education programs, combined with career guidance and employer partnerships. The organization has operated various programs from the aforementioned site for more than thirty (30) years. The proposed Tenant is aware of the City's mandatory ordinance requirements including the Living Wage Ordinance and will conform accordingly upon notification by City staff. The proposed lease agreement will contain the following: TERMS AND CONDITIONS LOCATION: LANDLORD: 1623 South La Cienega Boulevard, Los Angeles, CA City of Los Angeles AN EQUAL EMPLOYMENT OPPORTUNITY - AFFIRMATIVE ACTION EMPLOYER

3 Honorable City Council -2- May 26, 2016 USE: Office space SQUARE FEET: 4,785 TERM: OPTION TERM: RENTAL RATE: ADDITIONAL RENT: SECURITY DEPOSIT: UTILITIES: PARKING: TENANT IMPROVEMENTS: CUSTODIAL SERVICE: BUILDING MAINTENANCE: Ten (10) Years 3 - Five (5) year options to renew $0 per year N/A No security deposit required All utilities will be paid by Tenant N/A Any tenant improvements will be made by Tenant All custodial service will be provided by Tenant Tenant agrees to keep and maintain the interior and exterior of the premises including the roof in good condition and repair PUBLIC BENEFIT The CAO completed the attached Community Benefit Analysis (CBA) and recommends approval of the proposed terms and conditions of the Lease. As summarized in the MFC Report and detailed in the attached CBA, the total community benefit includes staff, direct client services, and the operational budget. The total CBA is $2,005,493 annually, which includes dedicated staff at $1,561,845.51; direct client services at $82,214; operational Budget at $361,433. The market value for leased space is $172,260 annually. The community benefit of $2,005,493 annually exceeds the market value of $172, 260 for the leased space by $1,833,233. As outlined in the attached CBA, the proposed Lease is consistent with the City s proposed Non-Profit Leasing Policy wherein the rental value of the space significantly exceeds the annual contributions in services from the non-profit Lessee.

4 Honorable City Council -3- May 26, 2016 FISCAL IMPACT No revenue will be generated from this lease to the General Fund. RECOMMENDATION That the Los Angeles City Council authorize the Department of General Services to negotiate and execute a new lease agreement with the Jewish Vocational Service to operate a non-profit organization at 1623 La Cienega Boulevard, Los Angeles, CA under the terms and conditions substantially as outlined in this report. Tony M. Royster General Manager Attachment

5 Community Benefit Analysis for Proposed Non-Profit Lease Faclllty Location: Lessee: i - mt A*'- and Conditions ±j^k^kss&t&c s 1623 S. La Cienega Blvd., Los Angeles, CA Jewish Vocational Service (JVS), a non-profit 501 (c)3 organization Council Ffle Reference: (Motion Adopted March ) Space Assignment: Term & Renewal Option: Market Rate: Proposed Rental Rate: Utillties/Custodial: Tenant Improvements: o iseqlii Mission: Vision/Values: Background / History: Approximately 4,785 square feet 10-year term, with three 5-year options to renew. Approval of the renewal options at the proposed rental rate wmj be art the discretion of the City. $3.00 pers.f. (Monthly rate: $14,355; Annual Rate $172,260) $ 0 per year during the first term, with rate under any renewal options to be subject to negotiation. Lessee shall be financially responsible for all applicable utility and custodial costs. Lessee shall have full responsibility for the cost of any needed tenant improvements. x* -.. V JVS Los Angeles offers hope and opportunity to a diverse community through job training, mentoring and education, combined with expert career guidance and employer partnerships, transforming lives and empowering individuals to achieve dignity and independence. The intent of the agency is to provide people with the ability to earn their own living. All services, programs and related business enterprises are focused toward that end. JVS was founded in 1931 to flghl workplace discrimination and help Jewish refugees fleeing the political upheaval in Europe find jobs and begin new lives. The Los Angeles chapter is a non-profit, non-sectarian organization, serving over 30,000 individuals in the City and County of Los Angeles each year. JVS programs help people of all faiths and backgrounds navigate the changing job market and overcome barriers to employment. JVS continually adapts and expands services to address the evolving needs of the workforce, responding to economic, social and cultural changes with innovative programs and partnerships.. Community Benefits Analysis Page 1 of 3

6 Community Benefit Analysis for Proposed Non-Profit Lease JVS programs are tailored to meet the special needs of various target groups that include: displaced workers; new entrants into the workforce; recent refugees/immigrants; veterans; at-risk older youth/early adults (ages 18-24); individuals with cognitive, developmental and/or emotional disabilities; and targeted counseling and mentoring services geared towards promoting career success for women. Serving nearly 30,000 individuals annually, JVS provides high! quality programs related to job seeking, career planning, skills assessment, training and retraining Los Angeles County residents with a focus on strategies that make an impact on the economic security of individuals and that are sustainable in the long-term. Current program services include: YOUTH/YOUNG ADULTS: Educational/vocational programs for high-risk/high-need youth; a program for at-risk girls in under-privileged middle and high schools; and youth-led intergenerational learning for technology literacy. JVS focuses on helping youth stay in school, obtain diplomas/geds, become employment-ready, and find jobs. I : Current Services: CAREER DEVELOPMENT: Assistance for people with barriers to employment, such as: long-term unemployment, mature workers, refugees and those impacted by the traumas and limitations associated with poverty through training, coaching, career counseling, job search support, placement, and retention services. VOCATIONAL TRAINING: JVS defines a path out of poverty by offering opportunities with career growth potential: BankWork$ banking industry training; HealthWorks Certified Nursing Assistant training; ApartmentWorks Apartment Maintenance training; and English-as-a-Second-Language program. DISABILITY and ASSESSMENT: Job coaching/training and employer advocacy for people living with physical, emotional and/or cognitive disabilities, career counseling, and job development vocational evaluation. REFUGEEE/IMMIGRANT: Provides new immigrants with assistance in navigating employment by developing vocational English language skills, identifying transferable work experience, and assisting with the American system of resumes and job interviews. Community Benefits Analysis Page 2 of 3

7 Community Benefit Analysis for Proposed Non-Profit Lease ^*' K Be W fc. 4. VETERANS: JVS helps veterans transition from military to civilian life through career coaching, identifying transferable skills, access to ail JVS training/literacy programs, job placement/netentlon services, peer support, and mental health resources/referrals. A. Value of Dedicated Staff: $1,561, Value of Direct Services: Calculated as 32 home healthcare aides earning an average hourly wage of $11.21 per hour for 25 hours a week, and 19 staff members earning an average hourly wage of $28.41 per hour for hours a week, converted Into annual terms (x 52 weeks). The associated cost of fringe benefits is $302,558. B. Value of Other Direct Client Services: $82,214 Training expenses, program fees and supplies. Value of Operational Budget: Total Community Benefit: Market Value for Leased Space C. Value of Operational Budget $361,433 Includes: Office expenses, supplies and equipment; staff mileage; building maintenance; advertising; utilities. $ annuaflv (=A+B+C above) $172,260 annually * (* calculated as: average market rate of $ 3.00 per s.f. multiplied bv assigned space of 4,785 s.f. multiplied bv 12 months = $172,260) Benefits Finding & Recommended Action. Community benefits estimated at $2,005,493 million annually exceeds the market value of $172,260 for the leased space by $1,833,233. The proposed lease is consistent with the City's proposed Non Profit Leasing Policy in that the rental value of the space is exceeded/significantly offset by the annual contributions in services from the non-profit lessee. The proposed terms are recommended for approval. 03jMpo 11/ Date Analyst Chief AsSwntCAO Community Benefits Analysis Page 3 of 3