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HomeMy WebLinkAboutE-7 Staff Report - Options Lease RenewalCONSENT ITEM E-7 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: MIKI CARPENTER, COMMUNITY RESOURCES DIRECTOR DATE: OCTOBER 19, 2020 SUBJECT: APPROVAL OF LEASE AGREEMENT WITH OPTIONS FOR LEARNING LOCATED AT 328 N. ORANGE PLACE, AZUSA, CA BACKGROUND: Since July of 2002, the City of Azusa has leased space and the modular trailers previously utilized by the City to run the Head Start Program, to the Head Start Grantees. On January 1, 2014, a four and ½ year lease extension was approved with the Head Start Grantee, Options for Learning. The lease expired on June 30, 2018, and has been operating on a month to month basis since. This action renews the lease for three years with two one-year extensions available, in writing. RECOMMENDATION: Staff recommends that City Council take the following actions: 1)Approve a three-year Lease, with two potential one-year extensions, to Options for Learning for Space and Modular Trailers at 328 N. Orange Place; and 2)Authorize the City Manager to execute the Lease Agreement, in a form acceptable to the City Attorney, on behalf of the City. ANALYSIS: Options for Learning, as the Head Start Grantee, has been leasing space and modular trailers previously utilized by the City, since January of 2014. The original Lease expired in June of 2018 and the Lease has continued on a month to month basis since. In an effort to bring all existing contracts/leases into compliance with our Policies, we have discussed the Lease terms with Options for Learning and have mutually agreed to extend the Lease for three years, allowing for two additional, one-year extensions in writing if so desired by both the City and Options for Learning. Options for Learning provides a half-day preschool program that operates on a school year calendar and a full-day/full-year preschool program for working parents or parents who are attending college classes. APPROVED CITY COUNCIL 10/19/2020 Options for Learning Lease Renewal October 19, 2020 Page 2 Children enrolled in the program are ages three and four. All of the families enrolled at the Memorial Park Center meet federal poverty guidelines. Families are placed on the waiting list for both programs with the lowest income families ranked highest. Options for Learning also enrolls a limited number of children with disabilities whose family income may exceed the federal poverty guidelines. Recruitment efforts focus on enrolling families who live in Azusa although they cannot deny enrollment to families living in adjacent communities. Options for Learning provides preschool services to families in those adjacent areas and their goal has always been to provide programs to children and their families in their own neighborhood. The current funding for the program is from the Federal Office of Head Start with supportive funding from the California Department of Education. There are some residence requirements attached to the Head Start funding. Options for Learning has maintained a current business license and proper insurance coverage throughout the lease period. Options for Learning remains committed to continuing and enhancing collaboration between our program and City staff and resources. The families enrolled in their program have benefitted from programs the City has developed to support low income families and children. Options for Learning has developed a successful way of sharing information with families regarding City resources, which includes sharing flyers and written information, City staff providing presentations for parents during monthly parent meetings, and providing City staff the opportunity to do appropriate outreach activities with their enrolled families. The collaboration has been used as an example of how funding can be maximized to provide community resources to families and how other partners can also increase their outreach to community members. Based on the service Options for Learning provides to qualifying Azusa residents, and the collaboration efforts, the Lease amount has consistently remained at $1 per year. Staff recommends maintaining Lease terms during this new Lease period. FISCAL IMPACT: There is minimal fiscal impact associated with this action. Options shall pay the City a rent of one (1) dollar per year. Prepared by: Reviewed and Approved: Nikki Rosales Miki Carpenter Senior Management Analyst Director of Community Resources Reviewed and Approved: Sergio Gonzalez City Manager Attachment: 1) Lease Agreement LEASE AGREEMENT BETWEEN THE CITY OF AZUSA AND OPTIONS FOR LEARNING 1. Parties and Date. This Lease is made and entered into this 20th day of October 20, 2020, between the City of Azusa, a California municipal corporation (“City”) and Options for Learning, a California non-profit corporation (“Options”). City and Options are sometimes individually referred to herein as “Party” and collectively as “Parties”. 2.Recitals. 2.1 Premises. City is the owner of the real property located at 328 N. Orange Place in the City of Azusa, California, described in Exhibit “A” attached hereto (“Premises”). On these Premises are four modular building that were purchased and installed using federal dollars and as such are recognized by both parties to be the full responsibility of Options as the Head Start grantee. 2.2 Purpose of Lease. City desires to lease the Premises to Options and Options desires to lease the Premises from the City, for due and adequate consideration, the receipt and sufficiency of which are acknowledged by the Parties and further described in the Lease for the educational and recreational purposes set forth herein. 2.3 Designeee of Grantee for Head Start program. Options has been designated by the Office of Head Start to be the Head Start grantee for the City of Azusa, which required the issuing of a federal Notice of Award. The Notice of Award was effective January 1, 2014. The City and Options acknowledge that the four modular trailers (but not the “administrative office building” on the Premises), and the materials in the four modular trailers, were purchased with Head Start funds, and the federal Head Start program retains ultimate ownership. As of January 1, 2014, ownership of these modular trailers and their contents has been the property of the Head Start grantee, for as long as Options is funded to operate the Head Start Program in Azusa. 3.Terms. 3.1 Rent. During the term of this Lease, Options shall pay City a rent of One Dollar ($1.00) per year. The annual rent payment shall be paid on or before July 30 of each year. 3.2 Term. The term of this Lease shall be for three (3) years, commencing October 20, 2020, and ending October 19, 2023. If Options and City mutually agree in writing, this Lease may be extended for two (2) separate, one-year terms. This Lease is terminable on thirty (3) days’ written notice given at any time by either party to the other. Attachment 1 3.3 Use of Premises. Options shall use the Premises exclusively for educational and recreational purposes under the Head Start Program as administered by Options, which Program is more particularly described in Exhibit “B” attached hereto. Options shall not use or permit the Premises to be used for any other purpose without the prior written consent of City. Options shall not commit, or cause to be committed any of the following upon the Premises: (i) waste, (ii) any public or private nuisances, or (iii) any activity which may be prohibited by any fire or casualty insurance policy maintained by the City. 3.4 Complaince with Law. Options shall ot use the Premises, nor permit anything to be done in or upon the Premises which will in any way conflict with any Federal, State or local law, statute, ordinance, ordinance or governmental rule or regulation now in force or which may hereafter be enacted or promulgated. Options shall comply with all such laws, statutes, ordinances and governmental rules, regulations or requirements. 3.5 Alterations, Improvements and Additions. Options may make any alterations, improvements or additions upon the Premises for the purposes set forth in Section 3.3 herein, provided, however, that Options comply with all applicable laws and obtain all permits from City and other governmental entities as may be required for such purposes. This Lease shall not commit the City to issue any permit and City reserves the full discretion allowed by applicable law to approve or deny any permit. All such alterations, improvements and additions shall be made at Options’ sole cost and expense. 3.6 Operations Costs, Taxes and Assessments. Options shall pay all costs for electricity, water, telecommunications and other utilities serving the Premises during the term of this Lease. Options shall pay for any and all taxes, assessments or other charges which may be levied upon the Premises during the term of this Lease. Options shall pay for any and all taxes, assessments or other charges which may be levied upon any personal property or improvements placed or erected upon the Premises. 3.7 Maintenance and Repairs. Except as provided herein, Options shall be responsible for the maintenance and security of the Premises at all times during the term of this Lease. Options shall, at its sole cost and expense and to the satisfaction of the City, keep the Premises in a clean, neat and maintained appearance. Options, shall upon the expiration or sooner termination of this Lease, surrender the Premises, including any alterations, improvements or additions thereon, to the City as set forth in Section 3.13 below in good condition, ordinary wear and tear and damage from causes beyond the reasonable control of Options excepted. Any damage to Premises cause by Options’ use shall be repaired at the sole cost and expense of Options. Unless a replacement Head Start grantee or the federal government requests otherwise, Options shall remove the modular buildings and Head Start personal property, at its own cost and expense, within 60 days of the expiration or termination of this Lease whichever is earlier. 3.8 City’s Reasonable Right of Entery. City shall be entitled, at all reasonable times, and upon reasonable prior notice, to enter the Premises for the purpose of inspecting the Premises, or for determining Options’ compliance with the terms and conditions of this Lease. 3.9 Assignment and Subletting. Options shall not assign, mortgage, hypothecate or sublet this Lease, or any interest in it or portion thereof; without the prior written consent of City. City shall have sole and absolute discretion in approving or denying any such request. 3.10 Insurance. Options shall, at its sole cost and expense, obtain and maintain in force throughout the term of this Lease a comprehensive general liability insurance policy upon the Premises of not less than $2,000,000 combined general aggregate limit for bodily injury, casualty and property damage. The policy shall be aggregate limit for bodily injury, casualty and property damage. The policy shall be “per occurrence” and not “claims made”. Options shall obtain insurance from a carrier with an A.M. Best’s rating of not less than A: VIII, licenses and admitted to business in California, and satisfactory to City. Options shall deliver to City certificates of insurance naming the City as additional insured. Insurance endorsements provided to City shall contain a provision that the company writing said policy will provide City with twenty (20) days’ notice in writing in advance of any cancellation or lapse of the effective date or any reduction in the amounts of insurance. 3.11 Indemnification. Options agrees to defend (with counsel acceptable to City), indemnify and hold City, its officials, officers, directors, employees, agents, and volunteers free and harmless against and from any and all losses, claims, demands, actions or cause of actions, for damage to persons or property; including wrongful death and attorneys’ costs and expenses of suit, resulting from any cause arising out of or pertaining to Options’ use or occupation of the Premises except to the extent caused by negligent or intentional acts of the City, its agents or employees. 3.12 Termination. In the event of a failure by Options to perform or abide by any one or more terms or provisions of this Lease, City may immediately terminate this Lease and commence legal proceedings to remove Options from the Premises. City or Options may terminate this lease at any time, with or without cause, upon thirty (30) days prior written notice to the other Party. 3.13 Surrender of Premises. On the expiration or the termination of this Lease, whichever is sooner, Options shall surrender to City the Premises and all Options’ improvements and alterations in good condition (except for ordinance wear and tear), except for those alterations that Options has a legal right to remove or is obligated to remove by state or federal law. Options shall remove all personal property within 30 days if a replacement Head Start grantee will be taking over. Removal of the modular trailers shall be as provided for in Section 3.7. 3.14 Signs. Options may not allow any signage to be affixed to the Premises without the prior written consent of City, which consent shall not be unreasonably withheld. 3.15 Waiver. The waiver by either Party of the breach of any provisions of this Lease shall not be deemed to be a waiver of any subsequent breach of that or any other provision. 3.16 Captions. The various headings contained herein and the grouping of the provisions of this Lease into separate paragraphs are for the purpose of convenience only, and shall not be considered in interpreting the provisions of this Lease. 3.17 Successors and Assigns. This Lease shall apply to and be binding upon the heirs, successors, executors, administrators and assigns of the Parties hereto. 3.18 Quiet Enjoyment. Upon Options paying the rent required hereunder and observing and performing all of the covenants, conditions and provisions of this Lease, Options shall have quiet enjoyment of the Premises for the entire term hereof, subject to all the provisions of this Lease. 3.19 Entire Agreement. This Lease constitutes the entire agreement between the Parties relative to the Premises, and no prior leases or understanding pertaining to any such matters shall be effective for any purpose. This Lease may only be modified my mutual consent in writing signed by the Parties hereto or their respective successors in interest. 3.20 Partial Invalidity. Any provision of this Lease, which shall prove to be invalid, void or illegal shall in no way effect, impair or invalidate any other provision thereof and such other provision shall remain in full force and effect. 3.21 Governing Law and Venue. This Lease shall be governed by the laws of the State of California. Venue shall be in Los Angeles County. 3.22 Attorney’s Fees. In the event of any action or proceeding brought by either Party against the other under this Lease, the prevailing Party shall be entitled to recover its attorney’s fees and court costs in such action or proceeding, including costs of appeal, if any, in such amount as the court may adjudge reasonable. 3.23 Notices. Any and all notices and demands which are required under the terms and conditions of this Lease or which either City or Options desire to serve upon the other, shall be in writing and shall be deemed served when delivered personally, or when deposited in the United States mail, first class postage prepaid, return receipt requested, addressed as follows: To City at: City of Azusa 213 E. Foothill Blvd. Azusa, CA 91702 Attn: Sergio Gonzalez, City Manager Copy to: Best, Best & Krieger LLP 5 Parks Plaza, Suite 1440 Irvine, CA 92614 Attn: Marco A. Martinez To Options at: Options for Learning 885 S. Village Oaks Drive Covina, CA 91724 Attn: Paul Pulver, Executive Director Copy to: Options for Learning 885 S. Village Oaks Drive Covina, CA 91724 Attn: Head Start Director Any notice so given shall be considered served on the other party three (3) business days after deposit in the United States mail, first class postage prepaid, return receipt requested, and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred regardless of the method of service. 3.25 Authorization to Enter Agreement. Options has all requisite power and authority to conduct its business and to execute, deliver and perform the Lease. Each Party warrants that the individuals who have singed this Lease have the legal power, right and authority to make this Lease and bind each respective Party. 3.26 No Discrimination. Options herein covenants for itself and its administrators, and assigns, and all persons claiming under or through it, and that this Lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the use, occupancy or enjoyment of the Premises, nor shall Options or any person claiming under or though Options establish or permit any such practice or practices of discrimination or segregation with reference to the use, occupancy or enjoyment of the Premises. [Signatures on following page] IN WITNESS WHEREOF, the Parties have executed this Lease on the date first set forth herein above. CITY OF AZUSA OPTIONS FOR LEARNING By: By: Sergio Gonzalez, City Manager Paul Pulver, Executive Director ATTEST: By: Jeffrey Lawrence-Cornejo, Jr., City Clerk APPROVED AS TO FORM: By: Marco A. Martinez, City Attorney EXHIBIT “A” (Description of the Premises) The Azusa Facility has 6 classrooms in four (4) modular trailer buildings, which can serve up to 12 classes. The facility includes an office modular trailer used by program staff for storage, conferences, staff lounge, computer use and similar office type uses. A built-in place administrative building, owned by the City of Azusa, is also on the Premises. The facility also has a play area, outdoor storage shed(s) and includes designated parcels in the neighboring community garden (there is an annual fee for each community garden parcel, which is separate from the Lease rent). Four modular buildings for which a federal interest remains: • Serial# 91-114-002 (American Modular Systems, Inc.) – classroom modular • Serial# 91-114-003 (American Modular Systems, Inc.) – classroom modular • Serial# 91-114-006 (American Modular Systems, Inc.) – classroom modular • One modular trailer used for storage, conferences, etc. Options understand that the grant conditions and requirements associated with these modular buildings cannot be altered or nullified through a transfer of ownership. EXHIBIT "B" TO LEASE (Description of Head Start Program) The Azusa site provides classrooms that enable low income pre-kindergarten children, generally ages 3 and 4, and their families to receive comprehensive services that include, but are not limited to, cognitive, social, emotional and physical growth and development. The focus of this program is to a) support school readiness and parent involvement in the child's growth and development, and b) assist families to solve problems and move forward in their lives. The site may provide the following program options: a. Full-day, full-year Head Start/State Preschool classes, which also meet the needs of working parents. b. Part-day, part-year Head Start classes. c. California State Preschool classes. Children receive a variety of medical, dental, nutrition assessment and other services. Parents are provided a variety of workshops, home visits, teacher conferences, opportunities to volunteer in the classroom and learn teaching skills, social services, health services for parents, mental health counseling and referral for a wide variety of other services. Options for Learning seeks to collaborate with a wide variety of other community and regional service organizations, both public and private, to assist both children and families. Options for Learning invites the enrollment of preschool age children with disabilities, and works closely with public special education departments and the Regional Center to meet the needs of these children, while providing them a "main streamed" opportunity to develop skills alongside other children. · Each class will have a lead teacher and an associate teacher, who have college training in child development, have received in-service training, and receive ongoing training and mentoring. All teachers will meet the rigorous training and staffing standards of Head Start. Options for Learning operates the nationally recognized High/Scope curriculum in its classrooms. Options for Learning will work closely with the Azusa Unified School District on transition for the children and families from Head Start to kindergarten.