PROPOSAL:
Discuss Childcare Center Lease
SYNOPSIS:
AQMD has a lease agreement with National Pediatric Support Services to operate an on-site childcare center for the period September 1, 2002, through August 31, 2005. After reviewing information on lease and invoice payments and enrollments at the center, the Administrative Committee recommends the Board discuss options with respect to the lease.
COMMITTEE:
Administrative, September 12, 2003, Discussed
RECOMMENDED ACTION:
Discuss options with respect to the lease agreement with National Pediatric Support Services for operation of the on-site childcare center.
Barry R. Wallerstein, D.Env.
Executive Officer
Background When the Board approved the lease agreement with National Pediatric Support Services for operation of the on-site childcare center, the Board requested that periodic updates on lease payments and enrollments be brought to the Administrative Committee. On September 12, 2003, the Administrative Committee reviewed a report on the childcare center (copy attached) that included a summary of lease payments, payments of invoices for electricity and telephone services, and enrollment information.
Proposal In light of this information, a question was raised as to whether NPSS is in default with respect to the terms of the lease and it was recommended that the Board discuss options, including the option to terminate the lease agreement effective June 30, 2004. District Counsel will advise the Board of the District’s rights and obligations under the lease in a memorandum prior to the October meeting.
Fiscal Impacts Under the lease agreement, NPSS’s monthly lease payment for the childcare center is $2,945, for an annual AQMD revenue of $35,340. The monthly rent represents a charge of 21¢ per square foot, based on the 14,287 square feet of property covered by the lease agreement. Attachment
Childcare Center Report to the Administrative Committee / / /
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