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HomeMy WebLinkAboutE-13 Staff Report - Options Lease Extension Year 1 of 2CONSENT ITEM E-13 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: MIKI CARPENTER, DIRECTOR OF COMMUNITY RESOURCES DATE: NOVEMBER 6, 2023 SUBJECT: APPROVAL OF AMENDMENT ONE TO LEASE AGREEMENT, WHICH ALLOWS FOR ONE YEAR EXTENSION, WITH OPTIONS FOR LEARING 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 October 19, 2020, a three-year lease with two optional one-year extensions was approved with the Head Start Grantee, Options for Learning. The original three-year lease has now expired. This action exercises the first of two, one-year extensions available. RECOMMENDATIONS: Staff recommends that City Council take the following actions: 1) Approve Amendment One to Lease Agreement, which allows for a one-year Lease extension to Options for Learning for Space at 328 N. Orange Place; and 2)Authorize the City Manager to execute Amendment One to Lease Agreement, in a form acceptable to the City Attorney, on behalf of the City, subject to non-substantive changes made by the City Manager and the City Attorney. ANALYSIS: The original three-year lease has now expired and both parties are interested in exercising the first of two (2), one-year extensions. 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. 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 Approved City Council November 6, 2023 Options for Learning Lease Extension November 6, 2023 Page 2 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 extension of the Lease. 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 Fiscal Review by: Reviewed and Approved by: Talika M. Johnson Sergio Gonzalez Director of Administrative Services City Manager Attachment: 1) Amendment Number One to Lease Agreement 1 CITY OF AZUSA FIRST AMENDMENT TO LEASE AGREEMENT BETWEEN THE CITY OF AZUSA AND OPTIONS FOR LEARNING 1.PARTIES AND DATE. The First Amendment to the Lease Agreement (“First Amendment”) is entered into on the day of November, 2023, by and between the City of Azusa (hereinafter referred to as the “City”) and Options for Learning, a California non-profit corporation (“Options”). City and Options are sometimes collectively referred to herein as the “Parties.” 2.RECITALS. 2.1 Agreement. The Parties entered into that certain Lease Agreement for real property at 328 N. Orange Place in the City of Azusa, California on October 20, 2020 (“Agreement”). 2.2 First Amendment. The Parties now desire to amend the Agreement in order to extend the Agreement an additional one-year term. 3.TERMS. 3.1 Term. Pursuant to Section 3.2 of the Agreement, the City hereby exercises the option to renew the Agreement and extend the term of the Agreement for 12 months from October 20, 2023, to October 19, 2024, unless earlier terminated as provided in the Agreement. 3.2 Remaining Provisions of Agreement. Except as otherwise specifically set forth in this First Amendment, the remaining provisions of the Agreement shall remain in full force and effect. SIGNATURES ON THE NEXT PAGE Attachment 1 2 IN WITNESS WHEREOF, the parties have executed this First Amendment to the Agreement on this 6th day of November, 2023. CITY OF AZUSA OPTIONS FOR LEARNING By: By: Sergio Gonzalez Paul Pulver City Manager Executive Director ATTEST: By: Jeffrey Lawrence Cornejo, Jr. City Clerk APPROVED AS TO FORM: By: Best Best & Krieger LLP City Attorney