City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: SEPTEMBER 15, 2026 FROM: PARKS, RECREATION AND COMMUNITY WARD: 1
SERVICES DEPARTMENT
SUBJECT: LEASE AGREEMENT WITH CONCILIO CHILD DEVELOPMENT CENTERS FOR THE 14,635 SQUARE-FOOT NATI FUENTES CENTRO DE NIÑOS CHILDCARE CENTER AT BORDWELL PARK, FOR THE TERM OF JULY 1, 2026, THROUGH JUNE 30, 2031, IN THE AMOUNT OF $2,972.54 PER MONTH FOR YEAR ONE, WITH THE OPTION TO EXTEND FOR FIVE (5) SEPARATE AND CONSECUTIVE ONE-YEAR PERIODS ISSUE:
Approve the Lease Agreement with Concilio Child Development Centers for the 14,635 square-foot Nati Fuentes Centro de Niños Childcare Center at Bordwell Park, for the term of July 1, 2026, through June 30, 2031, in the amount of $2,972.54 per month for year one, with the option to extend for five (5) separate and consecutive one-year periods.
RECOMMENDATIONS:
That the City Council:
Approve the Lease Agreement with Concilio Child Development Centers, for the term of July 1, 2026, through June 30, 2031, in the amount of $2,972.54 per month for year one of the term, with the option to extend for five (5) separate and consecutive one-year periods; and Authorize the City Manager, or designee, to execute the Lease Agreement, amendments, and extensions 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 lease of City property during the initial three years of operation starting in 2008.
Following negotiations in January 2013, Concilio agreed to start paying monthly rent, in addition to a monthly Maintenance Services fee. Since then, the lease agreement was extended through June 30, 2026.
DISCUSSION:
Staff from Concilio and the Parks, Recreation and Community Services Department (PRCSD) have been in discussion to renegotiate the terms of the new lease agreement. Concilio desires PRCSD to take on additional maintenance responsibilities, including on-going maintenance of the HVAC system, fire and security alarms monitoring and certification, additional landscaping and irrigation, refuse services, as well as some as-needed, non-routine maintenance items.
Additional rent in the amount of $1,233 per month above the base rent of $1,739.54 per month will be invoiced on a separate line item in exchange for PRCSD taking on additional maintenance responsibilities.
The new Lease Agreement also allows the City to charge Concilio, at cost, for any as-needed, non-routine maintenance items that Concilio requests to be completed by PRCSD staff.
The term of the Lease Agreement will be through June 30, 2031, with the option to extend for five (5) separate and consecutive one-year periods. Base rent will increase automatically by 2.5% annually as per the terms of the Lease Agreement.
FISCAL IMPACT:
The total fiscal impact of the actions of this report is $35,670.48 in revenue for year one of the agreement. The rent component of this agreement is for base rent of $1,739.54 and additional rent for maintenance services of $1,233, for a total of $2,972.54 per month. Funds will be deposited in the General Fund, Parks & Recreation, Land and Building Rental Revenue account 5200000-373100.
Prepared by: Vanessa Mayne, Senior Administrative Analyst Approved by: Pamela M. Galera, Parks, Recreation and Community Services Director Certified as to
availability of funds: Julie Nemes, Finance Director
Approved by: Kris Martinez, Assistant City Manager
Approved as to form: James Johnson, City Attorney
Attachments:
Lease Agreement
Presentation
Lease Agreement Centro de Niños Childcare Center ● Page 2