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Recommendation to authorize City Manager to execute any and all documents necessary for a lease between the State of California and the City of Long Beach for office space at the Torrance Career Center located at 1220 Engracia Avenue, Torrance, California, for a four-year term, at the fixed monthly base rent of $2,020.36. (Citywide)
DISCUSSION
As the Workforce Investment Board's administering agency, the Workforce Investment Network (Network) administers the federal Workforce Investment Act (WIA), American Recovery and Reinvestment Act (ARRA), and other employment and training funds awarded annually and throughout the year. Those funds support job-training programs and business services delivered by five One-Stop Career Centers and selected community-based organizations to assist local residents in updating skills, transitioning from a lay-off, and filling skills gaps with businesses in the local economy.
On June 23, 2009, City Council authorized the City Manager to execute all documents with the State of California (State) to accept Workforce Investment Act grants totaling $6,224,466. This initial allocation represents the Network's local share of funds to administer business and employment services for the Program Year covering the period of July 1, 2009 through June 30, 2010 for the workforce area consisting of Lomita, Long Beach, Signal Hill, and Torrance.
In order to better serve Torrance and Lomita, the Network has maintained a satellite presence of approximately four staff at the Torrance Career Center (Site), which is owned and operated by the State Employment Development Department (State). In partnership with the State, Network staff provides an array of integrated employment, training, and recruitment services for employers and job seekers.
Network staff is currently housed at the Site under a temporary Premises Use Permit (PUP), whereby either party can terminate the PUP with thirty (30) days' written notification. While both parties were in negotiations for a permanent Lease, no rental payments were being made under the PUP. In order to secure the Site for long-term use, a proposed Lease has been negotiated containing the following major terms and conditions:
Lessor: State of California.
Lessee: City of Long Beach.
Premises: The leased premises shall consist of approximately 1,906 net usable square feet of office space located at 1220 Engracia Avenue, Torrance.
Length of Term: Four-year term commencing on October 1, 2009 and terminating on September 30, 2013.
Early Termination Option: Either party shall have the option to terminate the Lease at any time effective on or after September 30, 2011, by giving thirty (30) days' written notification.
Rent: The monthly base rent shall be $1.06 per net usable square foot ($2,020.36 per month) and is based upon the Lessee's share of the operating costs.
This letter was reviewed by Deputy City Attorney Gary J. Anderson on January 29, 2010 and Budget and Performance Management Bureau Manager David Wodynski on January 28, 2010.
TIMING CONSIDERATIONS
City Council action is requested on February 16, 2010. in order to finalize and execute the Lease in a timely manner.
FISCAL IMPACT
Annual base rent is estimated at $24,244 for FY 10. Sufficient funds to cover rental payments are currently appropriated in the Community Development Grants Fund (SR 150) in the Department of Community Development (CD). There is no impact to the General Fund.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
DENNIS J. THUS
DIRECTOR OF COMMUNITY DEVELOPMENT
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APPROVED: |
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PATRICK H. WEST |
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CITY MANAGER |