0150-10762-0000TRANSMITTAL

DATE08-02-16

COUNCIL FILE NO.TOCouncil

COUNCIL DISTRICTFROMMunicipal Facilities Committee 8

At its meeting of July 28, 2016, the Municipal Facilities Committee 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 Strategic Concepts in Organizing and Policy Education for space owned by the City at Old Fire Station 66, located at 1715 West Florence Avenue.

There is no impact on the General Fund as a result of the recommended actions.

(J Miguel A. Santana City Administrative Officer

Chair, Municipal Facilities Committee

MAS:KG:05170012c

Item #12City of Los AngelesCalifornia

DEPARTMENT OF GENERAL SERVICES

ROOM 701 City Hall South

1 1 \ EAST FIRST STREET LOS ANGELES, CA 90012

(213) 92S-9335 FAX NO. (213) 928-9515

TONY M. ROYSTERGENERAL MANAGER

ANDCITY PURCHASING AGENT

Ii

V

ERIC GARCETTI MAYOR

July 28, 2016

Honorable City Council City of Los Angeles c/o City Clerk Room 395, City Hall Los Angeles, CA 90012

Attention: Eric Villanueva, Legislative Assistant

REQUEST FOR AUTHORIZATION TO NEGOTIATE AND EXECUTE A NEW LEASE WITH STRATEGIC

CONCEPTS IN ORGANIZING AND POLICY EDUCATION,A NON-PROFIT ORGANIZATION AT OLD FIRE STATION 66

The Department of General Services (GSD) requests authority to negotiate and execute a lease with Strategic Concepts in Organizing and Policy Education (SCOPE) for approximately 9,776 rentable square feet of office space at Old Fire Station 66 located 1715 W. Florence Avenue, Los Angeles California.

BACKGROUND

SCOPE, a non-profit organization under Council Authority (CF 00-1408) has been operating in Old Fire Station No. 66 since 2001 and on holdover since April 2002. The organization provides services to help communities through job training and educational activities. Shelter at the subject location is provided to community residents in the event of an emergency.

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.

AN EQUAL EMPLOYMENT OPPORTUNITY - AFFIRMATIVE ACTION EMPLOYER

Di^O l&MeZ COCO

Honorable City Council July 28, 2016-2-

The lease agreement will contain the following:

TERMS AND CONDITIONS

LOCATION: 1715 W. Florence Avenue

LANDLORD; City of Los Angeles

Office spaceUSE:

SQUARE FEET: 9,776

TERM: 15 years

OPTION TERM: Two 5-year options

$0RENTAL RATE:

ADDITIONAL RENT: N/A

SECURITY DEPOSIT: No security deposit required

All utilities will be paid by TenantUTILITIES:

PARKING: 13 spaces

TENANTIMPROVEMENTS: All Tenant Improvements will be at the sole cost

of the Tenant

CUSTODIAL SERVICE: All custodial services will be at the sole cost of the Tenant

MAINTENANCE: All building maintenance to the Premises will be at the sole cost of the Tenant

Honorable City Council July 28, 2016-3-

PUBLIC BENEFIT

The CAO completed the attached Community Benefit Analysis (CBA) and recommends approval of the proposed terms and conditions of the Lease.

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 does not exceed the annual contributions in services from the non-profit Lessee.

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 SCOPE at Old Fire Station 66 under the terms and conditions substantially as outlined in this report.

Tony M. Royster General Manager

Attachment

Community Benefit Analysis for Proposed Non-Profit Lease

I. Proposed Lease Terms and Conditions

Facility Location: 1715 West Florence AvenueStrategic Concepts in Organizing & Policy Education (SCOPE), a non­profit 501 (c)3 organization________________ ___________________00-1408-S1 (Motion adopted June 22, 2016)

Lessee:

Council File Reference:

Space Assignment: Approximately 9,776 square feet

15-year term, with two 5-year options to renew. Approval of the renewal options at the existing rate will be at the discretion of the City.Term & Renewal Option:

$1.41 pers.f. (Monthly rate: $13,784; Annual rate: $165,408)Market Rate:

$0 per year during the first term, with rate under any renewal options to be subject to negotiation.Proposed Rental Rate:

Lessee shall be financially responsible for all applicable utility and custodial costs.Utilities/Custodial:

Lessee shall have full responsibility for the cost of any needed tenant improvements.Tenant Improvements:

rII. History and Current Services

SCOPE’S mission is to build grassroots power to eliminate the structural barriers to social and economic opportunity for low-income communities and communities of color.

Mission:

SCOPE envisions a more resilient and equitable Los Angeles that meets concrete indicators of poverty reduction, community health and civic engagement. SCOPE believes that in order to achieve this vision, those who are most directly affected by structural inequality should themselves be actively involved in defining and implementing effective strategies for achieving systemic change.

Vision:

For over 20 years, SCOPE has successfully advocated for policies and programs that create employment and training opportunities for workers. SCOPE’S initiatives have resulted in thousands of quality career opportunities for disadvantaged communities.

Background / History: Since 2006 the organization has focused on civic engagement. SCOPE’S outreach infrastructure allows SCOPE to conduct civic engagement programs that reach an average of 29,000 individuals annually.

SCOPE, in partnership with the US Green Building Council-LA and other organizations, is currently re-envisioning its South Los Angeles facility as

Community Benefits Analysis - SCOPEPg. 1 of 3

Community Benefit Analysis for Proposed Non-Profit Lease

a Community Resilience Hub. The goal of the Hub is to make the South Los Angeles community more resilient to the impacts of climate change, natural disasters, poverty, poor health, and unemployment. The transformation has the potential to serve as a national model for strengthening local communities overburdened by pollution and poverty. SCOPE is engaging local residents to envision and plan an upgrade and redesign of the space.

SCOPE’S programs promote the interests of low-income communities through organizing and leadership development, civic engagement, workforce development, strategic research and movement building. These local-based programs are replicable at the state and national levels, with a focus on four primary strategies:

• SCOPE provides training and capacity building to social justice organizations and community residents in order to build a movement for working families capable of responding to the challenges of regionalism and globalization.

• SCOPE works to increase the civic participation of low-income communities to become active participants in public policy-making that affects their lives. This also includes outreach to community residents and small businesses to educate them on policies and programmatic resources that provide health, environmental, and energy saving benefits.

• SCOPE builds strategic alliances among diverse communities that link local social and economic conditions with regional initiatives. •

• SCOPE equips families in poor and disadvantaged communities with the strategic research and analysis, educational tools, and technologies they need to understand the nature of structural economic problems, enabling them to develop proactive solutions that address their issues and needs.

Current Services:

} III. Community Benefit Analysis

A. Value of Dedicated Staff: $ 709,000

Calculated as five staff earning an annual wage of $63,000, four staff earning an annual wage of $52,000, two staff earning an annual wage of $25,000 and four staff earning an annual wage of $34,000.

(5x$63,000 + 4x$52,000 + 2x$25,000 + 4x$34,000) = $709,000Value of Direct Services.

B. Value of Other Direct Client Services: $ 32,425• Community meetings and trainings, child care, translation and

interpreting services

Community Benefits Analysis - SCOPEPg. 2 of 3

Community Benefit Analysis for Proposed Non-Profit Lease

C. Value of Operational Budget: $305,789Value of Operational Budget: Includes: Operational expenses, maintenance, utilities, insurance,

training, and outreach activities.

D. Value of Additional Offsets: $300,000 - $600,000

Additional Offsets / In­Kind Services:

Includes the estimated value of capital improvements that SCOPE plans to make to the subject property, to include upgrades to the electrical and plumbing systems, energy efficiency measures, interior space modifications and upgrades and landscaping.

Total Community Benefit: $1.347.214 - $1.647.214 annually (=A+B+C + D above)

$165.408 annually*Market Value for Leased Space (* calculated as: average market rate of $1.41 per s.f. multiplied bv assigned

space of 9776 s.f. multiplied bv 12 months = $165,408)

The total community benefits estimated between $1.35 - $1.65 million annually, exceed the market value of $165,408 for the leased space by over $1.18 million annually.

Benefits Finding & Recommended Action. The proposed lease is consistent with the City’s proposed Non-Profit

Leasing Policy in that the rental value of the space is exceeded by the annual contributions in services from the non-profit lessee. The proposed terms are recommended for approval.

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Chief Assistant CAODate Analyst m

Community Benefits Analysis - SCOPEPg. 3 of 3