Title
Introduction of Ordinance Approving a Lease and Authorizing the Interim City Manager to Execute Documents Necessary to Implement the Terms of the Lease with Karen Zimmerman and Kenneth Edgerly, dba ABC Preschool for Five-Years with Five One-Year Renewal Options on Land Adjacent to the Mastick Senior Center. [Requires four affirmative votes] (Recreation and Parks 280)
Body
To: Honorable Mayor and Members of the City Council
From: David L. Rudat, Interim City Manager
EXECUTIVE SUMMARY
The ABC Preschool has operated in two modular buildings and play yard behind Mastick Senior Center (Mastick) since 1983. This lease agreement will provide the preschool with continuity through a five-year term with five one-year options to renew, for a total of a ten-year term. The rental revenue is budgeted in the Recreation Fund and is used for site improvements as needed and to help fund Mastick operating expenses.
BACKGROUND
On April 18, 2000, the Alameda Unified School District (AUSD) conveyed the Mastick School site property to the City of Alameda. The site houses Mastick, two apartments, as well as ABC Preschool, which occupies two adjoining modular buildings and yard area, which are located directly behind Mastick at 1525 Bay Street. ABC Preschool has been in operation at this location since 1983. Karen Zimmerman and Kenneth Edgerly have been the proprietors since June 1995 and are licensed to provide childcare services to children between the ages of two and six years of age. The City assumed the Lease Agreement with ABC Preschool upon acquisition of the Mastick School site property from AUSD. The term of the Agreement between ABC Preschool and AUSD expired on June 30, 2002. Since then, the City entered into subsequent lease agreements, with the most recent agreement being a three-year Lease Agreement, effective November 1, 2011 with two three-year options to renew. On November 1, 2017, the agreement reverted to a month-to-month agreement.
DISCUSSION
The new Lease Agreement with ABC Preschool is for a five-year term, providing for five one-year extension options to renew. The monthly lease rent is $2,374 with an annual adjustment based on the April Consumer Price Index for the San Francisco metropolitan area. This long-term agreement will provide ABC Preschool with the continuity and stability required to operate the preschool.
The lease requires minimal staff management and the revenue generated is part of the total revenue budget for Mastick, in addition to activity fees, donations, Mastick rental fees, cell tower lease, apartment rental fees and the General Fund.
FINANCIAL IMPACT
The revenue generated from this lease agreement is budgeted in the Recreation Fund 280 in the amount of $28,488 for Fiscal Year 2018-19. Future years revenue will be budgeted and deposited in the Recreation Fund. This revenue is utilized to fund site improvements, as needed, at the preschool facility and to offset Mastick Senior Center operating expenses.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action does not affect the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
This action is not a project and is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15378 (b)(4) of the CEQA Guidelines, because it involves governmental fiscal activities (payment for archival services), which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.
RECOMMENDATION
Authorize the Interim City Manager to execute a five-year lease with five one-year options for real property at the Mastick Senior Center property with Karen Zimmerman and Kenneth Edgerly, dba ABC Preschool.
Respectfully submitted,
Amy Wooldridge, Recreation and Parks Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Lease Agreement