02/14/2011 Council Packet - Laserfiche WebLink

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• • • AGENDA ITEM 3B STAFF ORIGINATOR: Jeff Karlson MEETING DATE: February 14, 2011 TOPIC: Lease Agreement Extension with School District VOTE REQUIRED: 3/5 BACKGROUND The Centennial School District's two -year lease extension with the City for space at city hall to house the Early Childhood Family Education Program (ECFE) will expire June 30, 2011. Before the new city hall was built in 1999, the school district expressed interest in renting space for the ECFE and subsequently entered into a 10 -year lease with the City. The lease was extended in July 2009 for two years. The annual amount of the lease is $120,000 plus $4,964 for annual maintenance of the building. Rick DeGardner and I met with school officials at their request to discuss the lease agreement. School Superintendent Paul Stremick informed us that the school district has hired a consultant to conduct a building and facilities study to assess their current building space. The district has been experiencing a steady decline in enrollment in the younger grades and they are looking into the feasibility of combining five elementary schools into four. This would create more building space for the district to accommodate their ECFE program. The study will be completed this coming fall. Dr. Stremick pointed out that if the study shows that the district still needs space at city hall, the district would seek a longer term lease with the City in 2012. Dr. Stremick requested a one -year lease extension, beginning July 1. The terms of the agreement would not change. RECOMMENDATION Approve a one -year lease extension between the City and Centennial School District No. 12 from .luly 1.2011 to June 30, 2012. P64