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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Amendment No. 1 to the Standard Lease between the City of Glendale and Babak B. Golbahar for the Verdugo Jobs Center (VJC) facility located at 1255 South Central Avenue to extend the Lease for an 18-month period from April 1, 2026 to September 30, 2027.
1. Introduction of Ordinance authorizing the City Manager, or his designee, to enter into and execute Amendment No. 1 to the Standard Lease, Contract No. 8002055, between the City of Glendale and Babak B. Golbahar for the Verdugo Jobs Center (VJC) facility located at 1255 South Central Avenue, Glendale, CA 91204 to extend the Lease for an 18-month period from April 1, 2026 to September 30, 2027.
COUNCIL ACTION
Item Type: Ordinance Introduction
Approved for March 3, 2026 calendar
EXECUTIVE SUMMARY
The Verdugo Workforce Development Board (VWDB) has a long-standing history of designing and implementing workforce services that create the workforce that employers need in the Verdugo Workforce Development Area, which consists of the Cities of Glendale, Burbank and La Cañada Flintridge. Since 1999, the VJC has been operating workforce services from its location at 1255 South Central Avenue.
The current lease for the VJC facility will expire on March 31, 2026. The proposed lease amendment extends the term of the lease from April 1, 2026 through September 30, 2027.
The price per square footage remains the same at $2.50 square foot, which equals $58,135 a month, $697,620 annually.
VWDB’s Full Board approved the use of Workforce Innovation and Opportunity Act funds to cover the costs associated with the lease amendment at their meeting on February 11, 2026.
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RECOMMENDATION
Introduce the Ordinance authorizing the City Manager, or his designee, to enter into and execute Amendment No. 1 to the Standard Lease, Contract No. 8002055, between the City of Glendale and Babak B. Golbahar for the Verdugo Jobs Center facility located at 1255 South Central Avenue to extend the Lease for an 18-month period from April 1, 2026, to September 30, 2027.
ANALYSIS
The Verdugo Consortium is a Joint Powers Agreement (JPA) comprised of the Cities of Glendale, Burbank, and La Cañada Flintridge. The Verdugo Workforce Development Board (VWDB) is the planning and policy body for the Consortium. Its purpose is to provide employment and training programs within the three cities and to allocate and award Workforce Innovation and Opportunity Act (WIOA) funds toward its goals. Through the JPA, the City of Glendale (City) has responsibility for the administration of all Consortium activities, including the execution of contracts, including the lease agreement for the Verdugo Jobs Center (VJC) facility. As the administrative entity for the Verdugo Consortium, the City Council on behalf of the City of Glendale approves all agreements.
Since 1999, the VJC has been operating workforce services from its location at 1255 South Center Avenue. This site is a 2-story, 23,254 square foot facility with office space, meeting/conference rooms and ample parking spaces that fulfills the program needs of the workforce section. The VJC consists of employment counseling, job search, job listings, self-service, workshops, business outreach, customized recruitment, and job training programs. The current lease (the “Lease”) for the VJC facility expires on March 31, 2026.
The lease negotiation has been a steady process since last year with the assistance of Overland, Pacific & Cutler, LLC (OPC), a real estate service company previously procured through the City of Glendale’s Community Development Department. Under the guidance of OPC and the assistance of City Attorney’s office, the terms of the lease were finalized with the property owner, Mr. Babak B. Golbahar.
Under the proposed Amendment No. 1 to the Lease (Amendment No. 1), the current lease rate remains the same at $2.50 a square foot, through the 18-month lease extension period from April 1, 2026 to September 30, 2027. This translates to a monthly rent payment of $58,135.00. Currently, the Workforce Section pays for forty-three percent (43%) of the monthly rent which equals $24,772.97 a month, and the State of California Employment Development Department (EDD) pays the remaining fifty-seven (57%) of the cost which equals about $33,362.03 a month. The Workforce Section does not anticipate any changes to EDD’s percentage contribution to the monthly rent in upcoming sublease negotiations, which is approximately for 9,451 square footage of the useable space. The VJC programs are part of an integrated workforce system with EDD. As a result, EDD has been co-located in the center for over twenty years.
All original terms of the lease remain in effect, including the owner’s responsibilities for interior improvement and building systems that include HVAC maintenance, roofing 9a3
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repairs, painting, flooring, and pest control. Staff will work with the owner to ensure ongoing accountability of these items.
During the Verdugo Workforce Development Board (VWDB) – Full Board meeting on February 11, 2026, the VWDB provided its approval to use Workforce Innovation and Opportunity Act (WIOA) funds to cover the costs of Amendment No. 1 for the monthly rent amount at the VJC as provided in Exhibit 1.
STAKEHOLDERS/OUTREACH
The VJC assists the most vulnerable populations. The VWDB promotes WIOA services to the Verdugo region. With established partnerships with organizations in the region, the VWDB will work collaboratively to promote WIOA services to those with limited access to services and with multiple barriers, so they are connected to WIOA programs offered at the VJC.
FISCAL IMPACT
Amendment No. 1 will extend the Lease for an 18-month period from April 1, 2026 to September 30, 2027 and will have an overall cost $1,046,430. The cost for the remaining three months of the fiscal year is $174,405, which was approved as a part of the FY 25-26 budget. The funding for future years will be requested as a part of the annual budget process. No new appropriation is being requested at this time. The City Council approved funding is outlined below:
Existing Appropriation
Amount Account String Funding Source
$174,405 GL: 47180-2060-CSP-0020-P0000-
PL: CSP01227AG-LEASES-0000-2060
Workforce Fund
Department Cost Center Program
Community
Services &
Parks
Projects
The State of California Employment Development Department is co-located in the center, and as a result pays fifty-seven percent (57%) of the cost. The Workforce Section does not anticipate changes to their contribution to the monthly rent in upcoming sublease negotiations.
ENVIRONMENTAL REVIEW (CEQA/NEPA)
Because no possibility exists that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA review under the common sense exemption set forth in 14 Cal. Code Regs. § 15061(b)(3). 9a4
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CAMPAIGN DISCLOSURE
In accordance with the City Campaign Finance Ordinance No. 5744, the names and business addresses of the members of the board of directors, the chairperson, CEO, COO, CFO, Subcontractors and any person or entity with more than ten percent interest in the company proposed for contract in this agenda item Report are attached in Exhibit
3. ALTERNATIVES TO STAFF RECOMMENDATION
Alternative 1: The City Council does not introduce the ordinance and authorize the City Manager to execute Amendment No. 1 to the Lease for Verdugo Jobs Center facility, resulting in the VJC ceasing workforce services at its location at 1255 South Center Avenue, and disrupting its ability to support vulnerable populations.
Alternative 2: The City Council may consider any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Submitted by:
Onnig Bulanikian, Director of Community Services & Parks Prepared by:
Judith Velasco, Workforce Development Administrator
Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
Exhibit 1: Amendment No. 1 to the Lease
Exhibit 2: VWDB Meeting Minutes 2-11-2026
Exhibit 3: Campaign Disclosure Form from Babak B. Golbahar Exhibit 4: Lease