HomeMy WebLinkAboutE-9 Staff Report - Options Lease ExtensionCONSENT ITEM
E-9
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: MIKI CARPENTER, DIRECTOR OF COMMUNITY RESOURCES
DATE: SEPTEMBER 16, 2024
SUBJECT: APPROVAL OF AMENDMENT TWO OF LEASE AGREEMENT, ALLOWING FOR
ONE YEAR EXTENSION, 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 to the Grantee of the
Head Start Program. 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 expired in October
of 2023 and a one-year extension was approved at that time. That extension expires October 19, 2024.
This action exercises the second of two, one-year extensions available.
RECOMMENDATIONS:
Staff recommends that City Council take the following actions:
1) Approve Amendment Two of Lease Agreement, which allows for a one-year lease extension to
Options for Learning for the property at 328 N. Orange Place; and,
2)Authorize the City Manager to execute Amendment Two 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:
Options for Learning, as the Head Start Grantee, has been leasing space from the City, since January of
2014. On October 19, 2020, a three-year lease agreement, with two optional one-year extensions was
approved by City Council. The original three-year lease expired in October of 2023 and a one-year
extension was approved. That one-year extension is set to expire on October 19, 2024. and this action
would allow for the final, and second of two (2), one-year extensions, to be executed.
Approved
City Council
September 16, 2024
Options for Learning Lease Extension
September 16, 2024
Page 2
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
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 their
program and City staff and resources. The families enrolled in their program have benefitted from
programs the City has developed to support families and children. Based on the service Options for
Learning provides to qualifying Azusa residents, and 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 for Learning shall pay the City 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 Two to Lease Agreement
1
CITY OF AZUSA
SECOND AMENDMENT TO LEASE AGREEMENT
BETWEEN THE CITY OF AZUSA
AND
OPTIONS FOR LEARNING
1.PARTIES AND DATE.
The Second Amendment to the Lease Agreement (“First Amendment”) is entered into on the
day of September, 2024, 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 agreed upon the first of two, one-year extensions on
November 6, 2023, which extended the Agreement through October 19, 2024.
2.3 Second 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, 2024, to
October 19, 2025, 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 16th day of September, 2024.
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