SR-301-001 (10)
&xfu1 ~ifJ1/l f ten frtllVi #: L.(7(p2
~L._
CCS: HS: BS:J R: F: \HSD\SHARE\STREPTS\H I LLAN DA. WPD
Council Meeting: December 15, 1998
DEe 1 5 ..
Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Continue the Lease of 2801 25th Street (commonly
known as the Old Firehouse) to Hill 'an Dale Learning Center for
Continued Child Care Use.
INTRODUCTION
This report recommends that Council authorize the City Manager to continue its lease
with Hill 'an Dale Family Learning Center (Hill 'an Dale) at 2801 25th Street
(commonly known as the Old Firehouse) for up to five years for $1 per year for
continued use as a child care center in Santa Monica.
BACKGROUND
Hill 'an Dale provides child care to thirty-six children from two months to three years
at 2801 25th Street. Children at age three transition to their child care center at 1540
26th (MGM/Colorado Place). Hill 'an Dale is accredited by The National Academy of
Early Childhood Programs, a division of the National Association for the Education of
Young Children.
In July of 1986, after a competitive bid process, the City executed a lease agreement
with Hill 'an Dale for 10 years at $1 per year. Hill' an Dale received the contract
because of their strong proposal and' a commitment from R.A. Watt of Watt Industries,
Inc. to renovate the firehouse and cover start-up costs up to $180,000. Hill 'an Dale
has invested up to $35,000 in additional improvements at the Firehouse for new
awnings, carpets, playground, and repainting.
DISCUSSION
The lease requires Hill 'an Dale to use its best efforts to enroll 50% of its students
'L
nrr . I: tMD
from Santa Monica. They will offer a tuition reduction subsidy to a minimum of 20%
of the Santa Monica children at an average of 45 % below the standard fee. The lease
specifies that one half the subsidized children are from low income families and that
their subsidy level will be 90% below the standard fee. Hill 'an Dale can satisfy the
enrollment and tuition subsidy goal by considering their total enrollment for the Old
Firehouse and its 26th Street location. This will allow children to transition into the
preschool without fear of losing their subsidy.
Hill 'an Dale will submit an annual report to the City specifying the number and
percentage of Santa Monica residents enrolled including the number of children served
by the annual scholarship fund.
Prior to 2003, staff recommends initiating an open and competitive proposal process
to allow other child care organizations the opportunity to lease the facility.
FISCAL/BUDGETARY IMPACT
There is no financial impact on the City;
RECOMMENDA TION
Staff recommends that Council authorize the City Manager to continue its lease with
Hill 'an Dale Family Learning Center (Hill 'an Dale) to use 2801 25th Street as a child
care center until June 30, 2003 for $1 per year.
Prepared by:
Julie Rusk, Manager
Julie Taren, Sr. Administrative Analyst
Human Services Division
Community and Cultural Services Department