REPORT TO THE CITY COUNCIL FROM: BRIAN BARR, Director General Services Department AARON A. AGUIRRE, Director Parks, After School, Recreation and Community Services Department SUBJECT ..Title Approve the Second Amendment to the Lease Agreement between the City of Fresno's Parks, After School, Recreation and Community Services (PARCS) Department and Fresno Economic Opportunities Commission (EOC) to extend the term of the Lease Agreement through September 1, 2027, for program sites located at Mosqueda Community Center and Willow and Balch Park, and authorize the PARCS Director or their designee to execute the Second Amendment on the City's behalf (Districts 3, 5 & 7) ..Body RECOMMENDATION Staff recommends the Council approve the Second Amendment to the Lease Agreement between the City of Fresno's Parks, After School, Recreation and Community Services (PARCS) Department and Fresno Economic Opportunities Commission (EOC) to extend the term of the Lease Agreement through September 1, 2027, for program sites located at Mosqueda Community Center and Willow and Balch Park, and authorize the PARCS Director or their designee to execute the Second Amendment on the City's behalf. EXECUTIVE SUMMARY The PARCS Department is currently in an agreement with EOC Head Start for the leasing of various City-owned properties throughout Fresno. The lease term was from April 1, 2011, for a ten (10) year term with an option to renew for a successive term of five years, ending March 31, 2026. EOC Head Start provides early, continuous, intensive and comprehensive child development and family support services to pregnant women, families with children zero to three and children with disabilities. These services are being provided at Mary Ella Brown Community Center, Mosqueda Community Center, Willow and Balch Park, and Romain Playground under this Lease Agreement. These services were also provided at Ted C. Wills Community Center until 2024, when EOC voluntarily closed this location. This Amendment will extend the lease term at Mosqueda Community Center and Willow and Balch Park through September 1, 2027, and formally terminate EOC's leased space at Mary Ella Brown Community Center and Romain Playground at the completion of current term on September 1, 2026. The intention of the extension is to allow the City and EOC additional time to negotiate new lease agreements to continue EOC Head Start services at Mosqueda Community Center and Willow and Balch Park's after September 1, 2026. After September 1, 2026, the space vacated by EOC at Mary Ella Brown Community Center and Romain Park will be returned to PARCS for the purposes of community programming. The reduction in Head Start programming sites is supported by EOC as they are in the process of making updates to services in response to community needs assessment feedback. BACKGROUND EOC Head Start is a federally funded community-based pre-school program for income eligible pregnant women and children ages birth to five, inclusive of children with disabilities. They provide comprehensive child development and family support services, including education, social, emotional, health, nutrition, family support, and disability services. EOC Head Start is committed to building strong children and families. EOC Head Start has been providing the preschool services at five different City-owned properties since 2011. Mary Ella Brown Community Center which is located at 1350 E. Annadale Avenue, Ted C. Wills Community Center at 1445 E. Thomas Avenue, Romain Playground at 745 N. First Street, Willow & Balch Park at 4995 E Balch Avenue, and Mosqueda Community Center at 4670 E. Butler Avenue. EOC Head Start terminated services at Ted C. Wills in 2024 due to low enrollment. On March 26, 2026, Council approved the First Amendment to extend the lease term through September 1, 2026, for Mary Ella Brown Community Center, Romain Playground, Willow & Balch Park, and Mosqueda Community Center This Second Amendment will extend the lease term at Mosqueda Community Center and Willow and Balch Park through September 1, 2027, and formally terminate EOC's leased space at Mary Ella Brown Community Center and Romain Playground at the completion of current term on September 1, 2026. The General Services Department & PARCS have been meeting and discussing the future of the EOC Head Start agreement but have not finalized a new agreement for Mosqueda Community Center and Willow and Balch Park and will not have one prepared by the end of the current lease term. With the lease expiring September 1, 2026, both parties have determined it is appropriate to extend the lease term for an additional one year to continue negotiations and finalize the new lease agreements for Mosqueda Community Center and Willow and Balch Park. The new lease expiration date will be September 1, 2027. After September 1, 2026, the space vacated by EOC at Mary Ella Brown Community Center and Romain Park will be returned to PARCS for the purposes of community programming. The reduction in Head Start programming sites is supported by EOC as they are in the process of making updates to services in response to community needs assessment feedback. The City Attorney's Office has reviewed and approved the Second Amendment to the Lease Agreement as to form. ENVIRONMENTAL FINDING Pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15378, the second amendment to the lease agreement for the lease of property does not qualify as a "project" for the purpose of CEQA. LOCAL PREFERENCE Local preference is not applicable to this agreement. The City is amending the current lease agreement and did not need to request a quote. FISCAL IMPACT This Amendment makes no changes to the payment terms outlined in the existing agreement. Extending the contract term will result in continued lease revenue through September 1, 2027. Attachments: Second Amendment First Amendment with Original Lease Agreement