That the City Council approve and authorize the City Manager to execute a five-year lease extension with the Orange County Head Start for the use of the City-owned property at 1060 West Lambert Road to provide Head Start classes. 

At its Regular Meeting of June 17, 2019, City Council approved converting the annual land lease with Orange County Head Start (OCHS) to a month-to-month lease for the property located at 1060 West Lambert Road. This was done so that City engineering staff could evaluate the location to determine if it could be utilized in the plans for the development of Vista Grande Park. Staff has reviewed the potential use of City-owned property along Lambert Road, that includes the OCHS school site, a City-owned building (the former Scout Hut), and Water Division facilities adjacent to the Coyote Creek channel, and have determined that the area along the south-east corner of Idaho Street and Lambert Road will not be included in the plans for the overall Vista Grande Park development project. As a result, staff has prepared a proposed five-year lease extension with the OCHS for City-owned land that the school is located at, from July 1, 2023, through June 30, 2028.

Under the proposed lease, OCHS will continue to be responsible for the portable classrooms on-site that they own, along with the maintenance, utilities, and condition of the preschool site. The OCHS program currently provides preschool and other child care services to more than 150 families at the site, including 52 La Habra families.  An additional 21 La Habra families are provided services at locations closer to the parent's places of employment. OCHS has committed to funding more than $50,000 in repairs and maintenance to their classrooms, but will only do so if they are able to secure a long-term site lease.

If approved by City Council, the proposed lease payment to the City will increase from $1,000 per month to $1,100 per month, with a three percent annual increase through the term of the lease.

If approved, this land lease agreement will require Orange County Head Start to pay the City (General Fund) $1,100 per month, with a three percent increase each year, beginning July 1, 2023, and ending June 30, 2028. The total five-year value of this lease to the City's General Fund is approximately $70,000.

Goal 6.E  Build and maintain partnerships and collaborations with other government agencies, the business community, local non-profit organizations
Goal 7.C  Provide and maintain quality public services for our residents