Reso 2025-147 Boys & Girls Club Lease Agreement

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IN THE CITY COUNCIL OF THE CITY OF SAN LEANDRO RESOLUTION NO. 2025-147 RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE AGREEMENT BETWEEN THE CITY OF SAN LEANDRO AND THE BOYS AND GIRLS CLUB OF SAN LEANDRO FOR THE USE AND OPERATION OF THE POOL FACILITY LOCATED AT 2200 SAN LEANDRO BOULEVARD AND TO APPROPRIATE $65,488 FROM THE GENERAL FUND UNDESIGNATED FUND BALANCE TO SUPPORT FISCAL YEAR 2025-2026 LEASE COSTS WHEREAS, the City of San Leandro (“City”) and the Boys and Girls Club of San Leandro (“BGCSL”) have maintained a long-standing partnership for the provision of aquatic recreation services to the community; and WHEREAS, in 2003 the City Council approved a 20-year lease agreement with BGCSL for use of the pool facility located at 2200 San Leandro Boulevard, which was subsequently amended and extended through January 2025; and WHEREAS, the City and BGCSL have negotiated a new lease agreement to ensure uninterrupted access to the pool facility, which provides essential aquatic programs such as swim lessons, recreational swim, lap swim, youth competitive programs, and community rentals; and WHEREAS, the proposed lease provides a ten-year initial term with an automatic ten-year renewal option, establishes clear responsibilities for operations and capital renewal, ensures cost- sharing of utilities and maintenance, and incorporates safeguards that protect the City’s financial and operational interests; and WHEREAS, the new lease requires monthly payments beginning at $21,992 in FY2026, with a 1% annual escalation, for a projected 20-year cost of approximately $5.49 million, inclusive of utilities and common area maintenance; and WHEREAS, funding for FY2026 lease costs was not included in the adopted budget, and an appropriation of $65,488 from the General Fund undesignated fund balance is required to support Year 1 lease payments; and WHEREAS, this agreement supports the City Council’s adopted priorities of Quality of Life, Infrastructure, Public Safety, and Economic Development by maintaining a safe, accessible, and fiscally responsible aquatics facility for residents. NOW, THEREFORE, the City Council of the City of San Leandro does RESOLVE as follows: 1. That the City Council of the City of San Leandro hereby authorizes the City Manager to execute the Lease Agreement between the City of San Leandro and the Boys and Girls Club of San Leandro for the use and operation of the pool facility located at 2200 San Leandro Boulevard; and