City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: APRIL 26, 2022 FROM: PARKS, RECREATION AND COMMUNITY WARD: 2
SERVICES DEPARTMENT
SUBJECT: second AMENDMENT TO LEASE AGREEMENT WITH CONCILIO CHILD DEVELOPMENT CENTERS TO OPERATE THE NATI FUENTES CENTRO DE NIÑOS AT BORDWELL PARK FOR $2,604.94 PER MONTH AND EXTEND THE TERM FOR AN ADDITIONAL ONE-YEAR PERIOD FROM JULY 1, 2022, through June 30, 2023 ISSUE:
Approve Second Amendment to the Lease Agreement with Concilio Child Development Centers for 14,635 square-foot Nati Fuentes Centro de Niños Childcare Center at Bordwell Park for total monthly rent in the amount of $2,604.94 and extend the term for an additional one-year period from July 1, 2022, through June 30, 2023.
RECOMMENDATIONS:
That the City Council:
Approve the Second Amendment to the Lease Agreement with Concilio Child Development Centers, with total monthly rent of $2,604.94 for an additional one-year period through June 30, 2023; and Authorize the City Manager, or his designee, to execute the Second Amendment to the Lease Agreement with Concilio Child Development Centers, including making minor and non-substantive changes.
BACKGROUND:
Concilio Child Development Centers (Concilio) is licensed to operate the Nati Fuentes Centro de Niños to provide childcare services for low to moderate-income families. According to the license agreement previously approved by the City Council, Concilio was not required to pay rent for the lease of City property during the initial three years of operation starting in 2008.
Effective January 1, 2013, following negotiations, Concilio agreed to begin paying a monthly rent of $1,500 per month, and be open to negotiation every two years.
Effective November 1, 2016, Concilio and Staff from Parks, Recreation and Community Services Department (PRCSD) renegotiated the terms of the agreement to include maintenance responsibilities. Concilio requested PRCSD take on additional maintenance responsibilities including on-going maintenance of HVAC system, fire and security alarms monitoring and certification, additional landscaping and irrigation, refuse services, as well as as-needed, non-routine maintenance items. Additional rent in the amount of $1,029 per month above the base rent of $1,500 per month was negotiated in exchange for the PRCSD taking additional maintenance responsibilities. Both parties entered into a five-year agreement with the option to extend for five additional one-year extensions for the term of July 1, 2016, through June 30, 2021.
On June 15, 2021, City Council approved the first amendment to the agreement with Concilio to extend the lease period of July 1, 2021, through June 30, 2022. Per the original agreement a 2.5% increase was applied to the base rent increasing the amount to $1,537.50.
DISCUSSION:
The Second Amendment to the Lease Agreement will continue having PRCSD providing routine maintenance services to Concilio. Non-routine maintenance services will be charged at cost for Concilio requests to be completed by PRCSD Staff.
Concilio is licensed to operate the Nati Fuentes Centro de Niños to provide childcare services for low to moderate-income families. PRCSD confirms the services provided by Concilio benefits the Riverside community, and the Department is agreeable to continuing the lease agreement.
STRATEGIC PLAN ALIGNMENT:
Lease agreements with non-profit organizations contribute to Strategic Priority 2 – Community Well-Being, and Goal 2.5 by creating a partnership that contributes to the community’s social service needs. Affordable childcare addresses social service needs of low-income and moderate-income families, by providing a safe space for children while parent’s work.
The item aligns with each of the five Cross-Cutting Threads as follows:
Community Trust – Childcare is deemed a critical need for many families. This lease agreement assists the community by supporting non-profit organizations that can provide affordable childcare to the community.
Equity – This lease agreement promotes affordable childcare services to low income and moderate-income communities.
Fiscal Responsibility – Lease agreements generate rental income for the City, offsetting costs for facility maintenance and lease administration.
Innovation – Lease agreement with non-profit organizations assist the City in providing social services to address the community’s needs.
Sustainability & Resiliency – This lease agreement partners the City of Riverside and Concilio to ensure that critical social service needs will continue to be met and accessible to the community.
FISCAL IMPACT:
The total fiscal impact of this action is revenue generation of $31,259.28. This includes the monthly base rent and additional rent for maintenance services. Funds will be deposited in the General Fund, Parks and Recreation-Parks, Land & Building Rental account number 5215000-373100.
Prepared by: Pamela M. Galera, Parks, Recreation and Community Services Director Certified as to
availability of funds: Edward Enriquez, Chief Financial Officer/City Treasurer Approved by: Kris Martinez, Assistant City Manager
Approved as to form: Phaedra A. Norton, City Attorney
Attachment: Second Amendment to Lease Agreement
2nd Amendment Centro de Niños Childcare Center ● Page 2