Title
Adopt a Resolution to Approve and Authorize 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 at 2200 San Leandro Boulevard and to Appropriate $65,488 from the General Fund Undesignated Fund Balance to Support the Fiscal Year 2025-2026 Lease Costs
Staffreport
COUNCIL PRIORITY
• Quality of Life
• Infrastructure
SUMMARY
The City of San Leandro and the Boys and Girls Club of San Leandro (BGCSL) have had a long-standing partnership for the community pool facility located at 2200 San Leandro Boulevard. The prior 20-year lease (2003-2023), extended through January 2025, is expiring. A new 10-year lease with an optional 10-year auto-renewal has been negotiated. The agreement ensures uninterrupted aquatics programming for the community, establishes clear financial and operational responsibilities, and incorporates safeguards that protect the City’s interests.
RECOMMENDATIONS
Adopt a Resolution approving and authorizing the City Manager to execute the Lease Agreement with the Boys and Girls Club of San Leandro for the continued use and operation of the pool facility for a 10-year lease with an optional 10-year auto-renewal.
BACKGROUND
• In 2003, the City entered into a 20-year lease with BGCSL for use of the pool and related facilities. Under that agreement, the City paid $4,225 per month plus 70% of all utilities and was responsible for building-wide maintenance
• The agreement was amended twice, most recently in 2023, extending operations through January 2025.
• The proposed new lease, effective November 1, 2025, establishes modernized terms for cost-sharing, facility maintenance, and operational responsibilities.
Analysis
The basis for the recommended action is to provide the City with continued, reliable access to a centrally located pool facility at a cost far less than developing, constructing, and operating a new municipal pool. The agreement clearly defines roles, responsibilities, and financial obligations between the City and the Boys and Girls Club of San Leandro (BGCSL), creating predictability for long-term budgeting and operational clarity.
Key Benefits of the Agreement:
• Exclusive City use of the pool ensures uninterrupted aquatics programming, including swim lessons, recreational swim, lap swim, rentals, and youth competitive programs.
• City lease payments begin at $21,992 per month covering exclusive facility use, shared utilities, and common area maintenance. Unlike the prior lease ($4,225/month plus 70% of utilities with full building maintenance responsibility), the City is no longer responsible for building-wide costs. BGCSL now assumes responsibility for structural improvements (roof, HVAC, parking lot, drainage).
• Lease payments are suspended if the pool is unavailable for 120+ days due to BGCSL-caused issues. Annual reviews, structured communication protocols, and dispute resolution provisions protect City interests.
• Leveraging an existing partnership avoids the cost of a new pool while expanding access for residents, including commitments to serve underprivileged youth.
• Provides stability for long-term planning, capital investment, and program development. The auto-renewal option ensures continued access while allowing flexibility to revisit terms, balancing security with adaptability.
Current Agency Policies
• Recreation and Parks Master Plan (2025): calls for expanding aquatic access and leveraging partnerships.
• City Fiscal Sustainability Framework: emphasizes shared cost responsibilities with nonprofit partners.
Previous Actions
• 2003 - Council approved 20-year lease with BGCSL.
• 2023 - Council approved Amendment No. 2, extending agreement to September 2024.
• 2024 - Short-term extension through January 2025.
Applicable General Plan Policies
• Policy 56.03: Provide diverse recreational opportunities for all residents.
• Policy 56.05: Maintain and expand partnerships that maximize public benefit.
Summary of Public Outreach Efforts
• Community feedback collected during registration and facility use highlights the importance of uninterrupted aquatics access.
• BGCSL leadership is supportive of the new agreement.
Legal Analysis
The City Attorney has reviewed and approved the agreement as to form.
Fiscal Impacts
• The lease requires the City to make monthly lease payments to BGCSL beginning at $21,992 per month, with an automatic 1% annual increase as outlined in Exhibit C.
• Over the potential 20-year term (initial 10 years plus auto-renewal), total lease payments are projected to be $5,492,07.
• These payments cover exclusive facility use, utilities, and common area maintenance.
• Under the previous agreement, the City paid $4,225 per month plus 70% of utilities (average $9,000 per month) and was responsible for maintaining the entire building. The new structure eliminates building-wide maintenance costs, reducing financial exposure and aligning payments with actual aquatics operations.
• This General fund program will require a Council appropriation of $65,488 for Fiscal Year 2026 from the General Fund Undesignated Fund Balance into account 010-61-031-5620. The new lease amount is not included in the Fiscal Year 20266 adopted budget.
ATTACHMENTS
A: Resolution for Boys & Girls Club Lease Agreement
B: Draft Boys & Girls Club Lease Agreement
PREPARED BY: Vicente Zuniga, Recreation and Parks Director, Recreation and Parks Department