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Home My WebLink AboutHA26631 - Lease Agmt 4 Headstart Pgrm at One Quail Pl PALM DESERT HOUSING AUTHORITY STAFF REPORT REQUEST: APPROVAL OF FIRST AMENDMENT TO LEASE AGREEMENT BETWEEN DESERT SANDS UNIFIED SCHOOL DISTRICT AND THE PALM DESERT HOUSING AUTHORITY FOR HEAD START PROGRAM AT ONE QUAIL PLACE SUBMITTED BY: Jessica Gonzales, Management Analyst DATE: July 12, 2012 CONTENTS: First Amendment to Lease Agreement — Contract No. HA26630 Desert Sands Unified School District Interest Letter Recommendation By Minute Motion: 1. Approve the First Amendment to the Lease Agreement (Contract No. HA26630) substantially as to form, by and between Desert Sands Unified School District and the Palm Desert Housing Authority for the continuance and implementation of a Head Start Program at One Quail Place; and 2. Authorize the Executive Director to finalize the Lease Agreement after review by Desert Sands Unified School District; and 3. Authorize Chairman to execute such amendment to the Lease Agreement and necessary documents. Housin� Commission Recommendation The Housing Commission was unable to review this item due to lack of quorum at its regular meeting of July 11, 2012. Executive Summary Approval of this request will authorize an amendment to the Lease Agreement("Lease")with Desert Sands Unified School District("DSUSD")and the Palm Desert Housing Authority("Authorit�')for the Head Start Program at One Quail Place. The amended Lease term will be modified to be five (5) years, beginning August 1, 2012, with no increase to the current rent fee of$0. In lieu of rent, DSUSD is responsible for utilities and maintenance cost associated with the use of the Premises and currently is paying a fixed amount of $350.00. Staff recommends increasing annually by 5% the monthly fixed amount, not to exceed $450.00 to cover any rise in utility and maintenance costs during the term of the Lease. Backqround DSUSD has been has been operating a Head Start Program("Program")at One Quail Place since 2001 and has had continued success with the program benefiting lower-income households. Staff recommends that the Authority modify the existing Lease that will be terminating July 31, 2012, in order to maintain the Program. Staff Report Lease Agreement with DSUSD for Head Start Program at One Quail Place Apartments July 12, 2012 Page 2 of 6 The Desert Sands Unified School District("DSUSD") has been operating the Head Start Program ("Program") since 2001, in the recreational building (a.k.a. Club House) at One Quail Place. The Program has been a direct benefit to the residents of One Quail Place who receive priority enrollment to the Program. DSUSD has received funding from the State to adequately provide for staffing, instructional material, furniture, nutritional meals, and snacks for the children enrolled and continue operation of the Program. The Program accommodates 17 pre-school children of lower-income households for a full day/full year program. The children who attend the early childhood educational program will participate in a program that helps them grow mentally, socially, emotionally, and physically. They receive free medical services, healthy meals, and snacks; and enjoy playing indoors and outdoors in a safe environment. DSUSD has expressed a desire to renew the Lease to continue to accommodate the Program at One Quail Place. The existing Lease term was approved for a five-year period with the option of three(3)one-year extensions and will be expiring on July 31, 2012. By modifying the existing Lease term to be five(5)years beginning August 1, 2012,the Program can continue to be operated at the same location. DSUSD will continue to be responsible for the utilities and maintenance cost associated with the use of the Premises. Staff recommends increasing annually by 5%the monthly fixed amount, not to exceed $450.00 to cover any rise in utility and maintenance costs during the new term of the Lease. All other terms and condition of the Lease will remain unchanged. Based on the continued success of the program and the benefit provided to lower-income households, it is staff's recommendation to move forward with the approval of the First Amendment to the Lease Agreement and continue the Head Start Program at One Quail Place. Fiscal Analvsis The fiscal impact of this new Lease term is the cost of the any maintenance and utilities of the Premises above the reimbursement by DSUSD for the fixed monthly payment. Submitted by: �--� �', Jessi a onzales, Managem�nt Analyst De� rtment Hea � Fi e Department: / , L J n Moore, Director of Housing Paul S. Gi son, Finance Director A v . � l,, ,� ��-t BY HQUSG AUTH 5-� Jo . Wohlmuth, Executive Director �� `?— �—�� " �E�y�� n�: , _ �7rs'�Q�� ;;� Yip� ��,�t� ��y lerk"s Office G:\RDA\HOUSING\REMAL\ONE QUAIL PIACt\ONE QUAIL PIACE HEADSTAA'I�FIRS7 AME W MEM HA26630-8dd2\O.Q.HEADSTART-15T AMENDMENf TO IEASE AGRMM-STAFF ftEPORT 7d242.DOC Staff Report Lease Agreement with DSUSD for Head Start Program at One Quail Place July 12, 2012 Page 3 of 6 JNlFtEO S C <�'��° Desert Sands Unified School District a i::r.��}t:,in;;i�t:c.s F�;,urr„nr2-�2i':o r nr�.�r;•r:�_:.: y' � `"0.„Ge"` " EARLY CHILDHa4D EDUCATiQN ,� �:_,,�F:t« � s,� :'r:.ur,T�.y,� p .�.,i� Debra Loukatos, ECE Coordinator 760 771-8775 47-950 Dune Palms Rd. Fax 760 771-8826 La Gluinta, CA. 92253 June 27, 2012 Palm Desert Housing Authority To Whom It May Concern: On behalf of Desert Sands Unified School District Early Chiltlhood Education Program we would like to continue the lease with Palm Desert Housing Authority in the use of the building at One Quail Place Apartmen�Complex for the following 5 years. The purpose of the lease is to continue the collaboration between Palm Desert Housing Authority and Head Start ta operate a Head Start program at this location. One Quail Piace Head Start will serve 17 families in a full day program. The goal of this collaboration is to provide low income and poverty level families with quality preschool services through Federal and/or State funds. We are looking forward to continue the collaboration with Palm Desert Housing Authority to meet the needs of the families in Palm Desert with quality preschool services. Thank you for the support given to our program, Sincerely, � Berta Sanchez, ECE Facilitator Staff Report Lease Agreement with DSUSD for Head Start Program at One Quail Place Apartments July 12, 2012 Page 4 of 6 FIRST AMENDMENT TO LEASE AGREEMENT FOR HEADSTART PROGRAM AT ONE QUAIL PLACE APARTMENTS THIS FIRST AMENDMENT ("`Amendment") to the LEASE AGREEMENT (the "Lease") is made as of August 1, 2012, ("Effective Date") by and betwoeen the PALM DESERT HOUSING AUTHORITY, a public body having a principal place of business at 73-510 Fred Waring Drive, Palm Desert, California, (the "Landlord") and DESERT SANDS UNIFIED SCHOOL DISTRICT, a California public school district, having a principal place of business at 47950 Dune Palms Rd, La Quinta, CA 92253 (the "Tenant"). The Landlord and the Tenant may be referred to herein individually as a "Party" and collectively as the "Parties." RECITALS A. The Landlord is a public body. B. The Tenant is engaged in operating a federal HeadStart Program ("Program") and requires a licensable classroom facility and playground ("licensable" within the meaning of the Program). C. The Landlord and Tenant desire to enter into this Amendment to the Agreement. D. The Parties entered into that certain Lease by and betw�een Palm Desert Housing Autharity and Desert Sands Unified School District dated June 14, 2007 ("AgreemenY'). E. The Landlord has a�ailable a licensable classroom facility ("Premises") and adjacent playground, located at One Quail Place Apartments, or as more particularly described in Exhib� "A' attached hereto and made a part hereof. F. The Tenant has represented to the Landlord a need for a Premise to continue to accommodate the Program and desires to lease from Landlord and Landlord desires to lease to Tenant the Premises on the terms and conditions set forth in the�greement. NOW, THEREFORE, the Parties agree to amend the Agreement as follows: 1. Leased Premises. Landlord leases to Tenant, and Tenant hires from Landlord, for the term, at the rerital and upon the conditions in the Lease the Premises. Tenant accepts condition of Premises and agrees to maintain Premises in licensable condition as required by the federal Head Start Program requirements including but not limited to furnishing all utilities, services, materials and supplies necessary in the operation of the Program to be used by participants and as provided for in Section 4.2. 2. Term af Lease 2_1 Term. The term of this Lease shall be five (5) years, commencing on the date (the "Term Commencement Date"� of this First Amendment, beginning August 1, 2012. In the event that all conditions of the lease are satisfactorily met, the Authority shall have three (3} options to renew this lease for G:\ADA�HOUSING\REMAL\ONE QUAIL PLACF�ONE QUAIL PfACE HEADSTARI�FIRST AMENDMEM HA26630-8-1-12\O.Q.HEADSTAftT-15T AMENDMEM�TO LEASE AGRMM-STAFF REPORT}32-12.DOC Staff Report Lease Agreement with DSUSD for Head Start Program at One Quail Place Apartments July 12, 2012 Page 5 of 6 additional one (1) year extension terms. (Amends Section 2.1 of the Lease as of the commencement date herein). 3. Utilities& Maintenance 3.1. Tenant's Payment for Utilities and Maintenance. Tenant shall pay Landlord for utilities and maintenance, as rent, the fixed sum of Three Hundred Fifty Dollars ($350.00} per month, vuhich shall be paid in advance on the first day of each month during the term of this Lease increased annually by 5°�, not to exceed a monthly cost of$450.Q0 per manth, (Arr�nds Section 4.3 of the Lease as of the commencement date herein}, All other terms of the Agreement to remain unchanged and in full force and effect. IN WITNESS THEREOF, the Parties have executed this First Amendment on the date first above written. "Tena�t" "Authority" DESERT SANDS UNIFIED SCHOOL DISTRICT, PALM DESERT HOUSING AUTHORITY, a a California public school district public body By: Title: BY� Title: Executive Director BY� Title: ATTEST: Rachelle D. Klassen, Secretary G:\RDA\HOUSING\RENfAL\ONE qUAll PIACk�ONE qUAIL PIACE HEADSTARTFIRST AMENDMEM HA26630-e-1-12\O.q.HEAPSTART-15T AMENDMEM TO lEASE AGftMM-STAFF REPORT x1242.DOC Staff Report Lease Agreement with DSUSD for Head Start Program at One Quail Place Apartments July 12, 2012 Page 6 of 6 EXHIBIT A PR�PERTY DESCRIPTI�N One Quail Place Apartments, a multi-family apartment complex located at: 72-600 Fred Waring Drive, CA 92260. PREMISES Located at rear of One Quail Place Apartments along Park View Drive, Bottom floor of Recreation Room No. 2. Pa�wcv�Ew ---�. � O r—� � Recreation Room No.2-Bottom Floor � 9 Q� r �o�o, _�� #s o�fl_��1� !s�Isal � ., ` ,� -�" �--'. 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