Should Portland extend lease with Urban Office and Parking Facilities for the CityKids Childcare and Development Center space by five years (amend CLM Contract 10014)?

The City of Portland ordains.Section 1. The Council finds:Ordinance 174928, passed by the Council On September 27, 2000, authorized a contract with Joyful Noise Inc. to provide childcare and development services for City employees and established the CityKids Childcare and Development Center (CityKids) at the Portland Building, with lease costs covered by the Bureaus located in City Hall, the Portland Building, Columbia Square, and the 1900 FAB Building (later expanded to include the Vanport building, all others included in the blended rate program).The Bureau of Human Resources (BHR), as the CityKids' program manager, entered into a lease effective September 25, 2000, with the Bureau of General Services (now the Bureau of Fleet and Facilities (BFF)) for space at the Portland Building, with an expiration date of October 15, 2005. The lease was amended to extend the term date several times through December 31, 2015.In anticipation of the Portland Building reconstruction project, scheduled for December 2017 through 2020, and to ensure childcare continuity, CityKids was relocated to an approximately 8,205 square foot ground floor retail space available at the Crown Plaza Parking Garage Building (Crown Plaza) at 138 SW Clay Street.Ordinance 187760, passed by the Council on May 25, 2016, authorized a 10-year lease with Urban Office and Parking Facilities (Landlord) to accommodate the CityKids program at Crown Plaza through August 31, 2026. The initial period of ten years allowed the City to justify the capital investment for improvements required of both the City and the Landlord. On October 1, 2025, in accordance with the terms of the Lease, the City exercised its five-year option to extend through August 31, 2031, and agreed to the Landlord's base rent determination for the extended term.BHR expects to amend the contract with Joyful Noise for a term equivalent to the CityKids lease term. The contract is beneficial to the City in that it places a priority on available spaces for City employees in a priority hierarchy with the final category being made available to the general public once the steps offered City employees have been exhausted. Any City employee, no matter where assigned, is able to take advantage of the priority hierarchy.The total rent costs over the 5-year term are projected at $1,167,883, and the operating expenses are estimated at approximately $72,400, and another $16,000 for BFF P&PM time managing the lease payments, for a total of approximately $1,256,283 or $251,256 average per year. The Landlord is making a one-time contribution of $74,000 towards a refreshing of the space to include painting. Partial carpet replacement, new bathroom flooring, and replacement/repairing of cove base.NOW, THEREFORE, the Council directs:The above Findings represent the commitment of this Council and the BHR and the BFF.A lease for childcare space consistent with this Ordinance, including all associated lease costs, may be executed with the Crown Plaza Landlord, for occupancy and use by Joyful Noise Inc. dba CityKids Childcare and Development Center as per this Ordinance. All legal documents shall require approval as to form by the City Attorney, or a designated deputy, prior to execution.The lease's fiscal and performance commitments are assigned to BFF and BHR will ensure their contractor, Joyful Noise Inc., will occupy and use the leased space in compliance with the terms and conditions of the lease, and will make best efforts to support BFF's lease administration.Payments for the City's contribution of the cost of CityKids shall be paid for by all buildings and bureaus participating in the downtown blended rate program.The City Administrator or designee is authorized to prepare future budget documents to account for all legal, contractual and fiscal obligations of the CityKids lease executed with Landlord at Crown Plaza.