1998-0818_BOYS & GIRLS CLUB OF CAPISTRANO VALLEY_H1a_Agenda ReportAGENDA ITEM August 18, 1998
TO: George Scarborough, City Manager
FROM: Al King, Jr., Community Services Director
SUBJECT: Consideration of Proposed Memorandum of Understanding for the Development of
a Youth Services Facility at the San Juan Capistrano Community Center Site (Boys
& Girls Club of Capistrano Valley, Inc.)
RECOMMENDATION:
It is recommended that the City Council approve the proposed Memorandum of Understanding
between the City of San Juan Capistrano and the Boys & Girls Club of Capistrano Valley for the
development of a proposed youth services facility to be located at the San Juan Capistrano
Community Center.
SITUATION:
A. Background
Having received City Council direction to proceed with the concept of the Boys & Girls Club
of Capistrano Valley proposal to construct nearly 11,000 square feet of youth services facility
at the San Juan Capistrano Community Center site, staff was directed to develop a proposed
Memorandum of Understanding to address important issues associated with the Club's
proposal. Representatives from the Club and the City have been meeting and the City
Attorney has prepared the draft MOU. Further, the Club has suggested several revisions.
Key issues addressed in the proposed Memorandum of Understanding include:
1. Fund-raising levels the Club must reach prior to the initiation of a lease agreement
with the City, namely, that the Club shall raise through its fund-raising drive the total
sum of money equal to one-third (1/3) the cost of constructing the Club facility
($13,8003,000).
2. Club performance standards.
3. The establishment of a City Council review process to address management,
operational and performance related matters in conjunction with the Club's operation
of the facility.
4. Site specifications, purposes and uses associated with the Club's proposed facility.
5. Default Matters r
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Agenda Item
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August 18, 1998
The attached proposed Memorandum of Understanding is now jointly recommended by the
City staff and Club representatives. If approved by the City Council, the Memorandum of
Understanding shall be in effect for a maximum period of two (2) years or until the Club
reaches its funding commitment level of $600,000, which is one-third of the cost required to
construct the proposed Boys & Girls Club of Capistrano Valley facility, whichever occurs
sooner. Upon reaching this one-third cost requirement level, the Club shall provide written
verification to the City, and then negotiations can begin for the purpose of consummating a
leasehold agreement between the parties.
It is anticipated that by the consideration of this proposed Memorandum of Understanding
the City has concluded its review process on the project and that public and Commission
comments along with final design requirements have been addressed and incorporated in a
companion report.
B. Overview of the Agreement
A key provision of the Agreement provides that City will begin good faith negotiations for
a lease of City owned land (approximately 11,000 square feet) at the sports park to the Club
when the Club has obtained a funding commitment of at least '/s of the projected cost of
construction of the project i.e., a $600,000 funding commitment. (See Section 3 of the
Agreement)
The term of the MOU shall be 2 years, or until mutually rescinded, whichever occurs sooner.
Obviously, if a lease is executed, and implemented, then the MOU would serve no further
purpose. (See Section 4 of the Agreement)
The Agreement also addresses potential future operational problems by providing a
mechanism by which the City can focus upon and deal with significant operational problems
once the Club is constructed. The methodology entails a focusing process by the City Council
through a public hearing process with the potential for an interim assumption of day-to-day
management by City under a worse case scenario. (See Section 5 of the Agreement)
It is again emphasized that the MOU merely sets the foundation for a negotiation process to
begin with regard to consummating a leasehold relationship. The MOU in no way mandates
the completion of a lease. This is because discretion is left to the parties to come up with the
significant policy choices regarding a complete leasehold relationship. In short, mutual
agreement must be reached as to a number of issues that must be addressed in formulating a
lease arrangement.
In conclusion, our City Attorney has developed this MOU in conjunction with Club officials.
It is now ready for Council review and action.
Agenda Item
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COMMISSION/BOARD REVIEW, RECOMMENDATION:
August 18, 1998
The San Juan Capistrano Community Center Master Plan amendment process utilized to evaluate the
Boys & Girls Club of Capistrano Valley youth services facility proposal has been reviewed by both
the Parks, Recreation and Equestrian Commission and Planning Commission as public hearings and
with substantial notification to the community.
Both Commissions have recommended approval of the Club's proposal to construct an 11,000 square
foot youth services facility at the San Juan Capistrano Community Center site. Additionally, public
comments received during this project review process have also been positive and supportive of the
Club's proposal. The Parks, Recreation and Equestrian Commission has requested that staff provide
to them a copy of the City Council approved and adopted Memorandum of Understanding for their
information. Staff would plan on accomplishing this at the September 1998 Commission meeting.
FINANCIAL CONSIDERATIONS:
The Boys & Girls Club of Capistrano Valley has estimated construction costs for the new 11,000
square foot youth services facility to be $1.8 million. The proposed Memorandum of Understanding
specifies that upon reaching a funding commitment equal to one-third of this estimated cost of
construction (equivalent to $600,000), the City and Boys & Girls Club of Capistrano Valley would
begin negotiations for the development of a leasehold agreement associated with the Club's proposal.
The Boys & Girls Club of Capistrano Valley has already raised substantial dollars toward the project
prior to the start of its formal capital campaign and is optimistic of reaching the $600,000 level in the
very near future.
NOTIFICATION:
Jim Williams, Executive Director
Boys & Girls Club of Capistrano Valley
31371 El Camino Real
San Juan Capistrano, CA 92675
Jim Sieger, Principal
Marco Forster Middle School
25601 Camino Del Avion
San Juan Capistrano, CA 92675
Ken Friess, Board Member
Boys & Girls Club of Capistrano Valley
31371 El Camino Real
San Juan Capistrano, CA 92675
Agenda Item
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August 18, 1998
ALTERNATE ACTIONS:
1. Approval of staff recommendation.
2. Approval of staff recommendation with modifications.
3. Request additional information regarding the proposal and continue the item for additional
discussion and consideration.
RECOMMENDATION:
It is recommended that the City Council approve the proposed Memorandum of Understanding
between the City of San Juan Capistrano and the Boys & Girls Club of Capistrano Valley for the
development of a proposed youth services facility to be located at the San Juan Capistrano
Community Center.
Respectfully submitted,
Al King, Jr.
Community Services Director
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Attachments
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