TO: ADAM PIRRIE, CITY MANAGER
FROM: MELISSA VOLLARO, RECREATION AND HUMAN SERVICES DIRECTOR
DATE: JANUARY 13, 2026
Reviewed by:
City Manager: AP
SUBJECT:
Title
AUTHORIZATION TO ENTER INTO A REVISED LEASE AGREEMENT WITH ABC’S FOR ME PRESCHOOL AND TINY TOTS PROGRAM, LLC (FUNDING SOURCE: GENERAL FUND)
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SUMMARY
ABC’s For Me Preschool and Tiny Tots Program, LLC has leased the previous childcare center at the Alexander Hughes Community Center and the previous Tiny Tots classroom in Lewis Park since 2010 to provide early childhood education and childcare services to the community. The last amendment to the lease agreement was approved by the City Council in 2022, extending the term of the agreement until 2027. The lessee recently approached City staff and requested to modify the terms of the lease due to declining enrollment. As such, the attached proposed lease agreement does not include use of the Lewis Park classroom, which is no longer in use, as well as a reduction in lease payments due to the reduction in space utilized.
The proposed lease agreement also includes several updates to lease terms that reflect current operational practices, as most terms have not been updated since the original lease was developed in 2010. These changes support the City’s commitment to providing quality early childhood education opportunities that support Claremont families as well as our small business community.
RECOMMENDATION
Recommended Action
Staff recommends the City Council authorize the City Manager to execute a five-year lease agreement with ABC’S For Me Preschool and Tiny Tots Program, LLC, and authorize the execution of any future non-substantive administrative amendments related thereto.
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ALTERNATIVES TO RECOMMENDATION
In addition to the recommendation, there are the following alternatives:
A. Reject the recommendation
B. Request additional information from staff
FINANCIAL REVIEW
Under the current lease agreement, ABC’s For Me Preschool and Tiny Tots Program, LLC provides a monthly lease payment of $9,937.32 for use of a portion of the Alexander Hughes Community Center and the Lewis Park classroom equating to approximately 2,709 square feet of interior area. With the removal of the Lewis Park building from the lease, the interior leased space will be reduced by 633 square feet, or approximately 24 percent. Therefore, staff propose the monthly lease payment be reduced to $7,000, due on or before the 15th of each month. Lease payments will be adjusted annually beginning October 1, 2026, based on the Consumer Price Index (CPI) for the Los Angeles-Riverside-Orange County area, not to exceed three percent (3%) annually.
The City will continue to be responsible for utilities (electric, water, and natural gas) and major facility maintenance, while the lessee will be responsible for janitorial services, internet, telephone, alarm services, and the maintenance and replacement of furnishings/equipment used in the program.
The staff cost to prepare this report is estimated at $842 and is included in the operating budget of the Recreation and Human Services Department.
ANALYSIS
Since 2010, ABC’s For Me Preschool and Tiny Tots Program, LLC has operated early childhood education and childcare services at City facilities, leasing the former childcare center at the Alexander Hughes Community Center and the former Tiny Tots classroom at Lewis Park. The most recent amendment to the lease agreement was approved by the City Council in 2022, extending the lease term through 2027. ABC’s For Me approached the City in fall of 2025 and requested to renegotiate the terms of the lease due to declining enrollment, primarily driven by the statewide expansion of Universal Transitional Kindergarten (UTK).
Initially limited to part-day programs at two local elementary schools, UTK expanded steadily in both capacity and hours in the Claremont Unified School District (CUSD). In 2024, all seven local elementary schools offered full-day UTK with extended care at no cost, significantly reducing the number of four-year-olds enrolling in community-based preschool programs. While enrollment among two- and three-year-olds remains stable, many families in this age group prefer half-day participation, further reducing overall program utilization. At the same time, cost-of-living pressures have led some families to delay or forgo private preschool enrollment, particularly when no-cost public options are available.
After review of its operational plan, ABC’s For Me requested to consolidate its operations into a single site located at the Alexander Hughes Community Center and discontinue use of the Lewis Park building, reducing the indoor leased space by approximately 633 square feet. To ensure quality and affordable early childhood education and after-school care programs remain available to Claremont residents, the proposed lease agreement will reduce the monthly lease payment by $2,937.32 per month, for a total monthly lease amount of $7,000.
The lessee also requested the City place a maximum percentage cap on yearly lease payment increases, which are based on the Consumer Price Index (CPI) for the Los Angeles-Riverside-Orange County area. A maximum percentage cap on CPI was not present in the original lease, leading to several significant increases, especially over the past few years. The proposed agreement caps CPI increases at a maximum of three percent (3%) annually, which is a term that is included in many of the lease agreements for other City-owned properties.
In addition to the changes to the leased premises and payments, there are several miscellaneous changes to reflect current operational practices. These include updated insurance requirements, facility access policies, special event requirements, scholarship policies, and marketing policies.
LEGAL REVIEW
The City Attorney has reviewed the agreement and approved it as to form.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds that it applies to the following City Planning Documents: Council Priorities, Sustainability Plan, Economic Sustainability Plan, General Plan, 2024-26 Budget, and the Youth and Family Master Plan.
CEQA REVIEW
This item is not subject to review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by: Prepared by:
Melissa Vollaro Joslyn Villegas
Recreation and Human Services Director Recreation and Human Services Coordinator
Reviewed By:
Eric Ey
Recreation and Human Services Manager
Attachment:
Proposed Lease Agreement