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DATE: June 4, 2018
TO:
FROM:
Agenda Item #3.H
Honorable Mayor and Members of the City Council through City Manager
Eric W. Danly, City Attorney
SUBJECT: Adoption of an Ordinance Authorizing Assignment of Lease of Boys and Girls
Club Facilities at Lucchesi Park to the Boys and Girls Clubs of Central Sonoma
County
RECOMMENDATION
It is recommended that the City Council adopt the attached Ordinance Authorizing Amendment,
Assignment and Assumption of the Lease of the Boys and Girls Club Facilities at 203 Maria
Drive on Lucchesi Park by the Boys and Girls Clubs of Central Sonoma County.
BACKGROUND
On May 21, 2018, the members of the City Council present unanimously approved the
introduction of the attached ordinance, with Vice Mayor Healy, Council Members Miller, King
and Barrett, and Mayor Glass present, and Council Members Albertson and Kearney absent. The
staff report for the introduction of the ordinance reviewed the history of the portion of Lucchesi
Park leased to the Boys and Girls Club for construction and operation of club facilities for
conducting Boys and Girls Club programs. Included with the May 21 staff report were copies of
the earlier City Council actions that approved the Boys and Girls Club Lease and First
Amendment.
DISCUSSION
The Boys and Girls Clubs of Central Sonoma County have 39 locations with a budget of $10
million. The clubs comprising Boys and Girls Clubs of Central Sonoma County together offer
over 150 enrichment programs annually to over 7,000 young people. The board of the Boys and
Girls Clubs of Marin and Southern Sonoma Counties has wanted resources to be better utilized,
and thus far consolidation of operations has eliminated over $500,000 in management overhead,
allowing funds raised in Petaluma to directly benefit youth through programming. Since August,
the Petaluma clubs have been operating in the black and have sound financial projections going
forward.
Boys and Girls Clubs of Marin and Southern Sonoma Counties and Boys and Girls Clubs of
Central Sonoma County wish to transfer the lease at 203 Maria Drive on Lucchesi Park to Boys
and Girls Clubs of Central Sonoma County to ensure the Boys and Girls Club programs
continue. The attached ordinance and lease amendment have been prepared to transfer the lease
to 203 Maria Drive to the Boys and Girls Clubs of Central Sonoma County consistent with City
Charter requirements.
FINANCIAL IMPACTS
The only costs to the City of the lease transfer are the staff time involved in readying the
transaction for Council approval and related implementation.
ATTACHMENTS
1. Ordinance authorizing amendment, assignment and assumption of the lease of the Boys
and Girls Club facilities at 203 Maria Drive on Lucchesi Parr by the Boys and Girls
Clubs of Central Sonoma County
2. Exhibit A to the ordinance amending the Boys and Girls Club lease.
2
ORDINANCE NO. N.C.S.
Introduced by
Attachment 1
Seconded by
AN ORDINANCE OF THE COUNCIL OF THE CITY OF PETALUMA
AUTHORIZING AMENDMENT, ASSIGNMENT AND ASSUMPTION OF
THE LEASE OF THE BOYS AND GIRLS CLUB FACILITIES AT 203
MARIA DRIVE ON LUCCHESI PARK BY THE BOYS AND GIRLS
CLUBS OF CENTRAL SONOMA COUNTY AND AUTHORIZING THE
CITY MANAGER TO EXECUTE ON BEHALF OF THE CITY ALL
DOCUMENTS RELATING TO THE LEASE AMENDMENT
WHEREAS, on September 17, 1990, a staff report and ordinance were presented to the
City Council to permit the Council to authorize lease of a one -acre portion of Lucchesi Park at
203 Maria Drive to the Petaluma Boys and Girls Club for construction of a 25,000 -square foot
club facility to serve the East Petaluma area; and
WHEREAS, the City Council introduced ordinance 1825 N.C.S. approving the Boys
and Girls Club lease on September 17, 1990, and adopted the ordinance October 1, 1990, with
the ordinance taking effect 30 days later, on October 31, 1990 authorizing a lease of
approximately one acre of Lucchesi Park at 203 Maria Drive for construction of a club facility
for a 50 -year initial term commencing on March 1, 1991, with an option to extend the lease by
an additional 25 -year term; and
WHEREAS, following approval of the Boys and Girls Club lease, the City Council on
July 1, 1991 adopted Resolution 91-194 N.C.S. approving a lease amendment to permit the
Boys and Girls Club to mortgage or otherwise encumber the lease as a lender may require for
purposes of financing the improvements to be constructed on the property; and
WHEREAS, following the 1991 lease amendment the Petaluma Boys and Girls Club
was succeeded by a different corporate entity, Boys and Girls Clubs of Marin and Southern
Sonoma Counties, corporation number CO249360; and
3
WHEREAS, Boys and Girls Clubs have been serving communities in Sonoma County
for over 50 years, and, until recently, local Sonoma County Boys and Girls Clubs have operated
independently of the larger county -wide organization, Boys and Girls Clubs of Central Sonoma
County; and
WH * EREAS, Boys and Girls Clubs of Central Sonoma County began operating clubs in
Petaluma in August of 2017 at the request of Boys and Girls Clubs of Marin and Southern
Sonoma County; and
WHEREAS, the Central Sonoma County Boys and Girls Club organization now
operates clubs at McKinley and McDowell Schools, Burbank and Eden Housing communities
as well as the location at 203 Maria Drive on Lucchesi Park subject to the City lease; and
WHEREAS, the Boys and Girls Clubs of Marin and Southern Sonoma Counties and
Boys and Girls Clubs of Central Sonoma County have indicated a desire to transfer the lease on
Lucchesi Park at 203 Maria Drive to the Boys and Girls Clubs of Central Sonoma County to
ensure that the Boys and Girls Club programs continue; and
WHEREAS, Section 46 of the Petaluma City Charter provides that certain City Council
actions must be taken by ordinance, including certain actions for acquisition, sale or lease of real
property;
NOW, THEREFORE, be it ordained by the council of the City of Petaluma as follows:
SECTION 1: The City Manager is hereby authorized and directed to execute all
documents relating to amendment, assignment and assumption of the lease at 203 Maria Drive
on Lucchesi Park, by the Boys and Girls Clubs of Central Sonoma County, corporation no.
C1825660, including a lease amendment substantially in accordance with that attached as
Exhibit A to this ordinance, and/or revised versions of such documents and/or additional
documents as may be recommended and approved by the City Attorney to accomplish the
amendment, assignment and assumption of the lease at 203 Maria Drive on Lucchesi Park by the
Boys and Girls Clubs of Central Sonoma County.
SECTION 2: If any part of this Ordinance is for any reason held to be unconstitutional,
unlawful or otherwise invalid by a court of competent jurisdiction, such decision will not affect
the validity of the remaining parts of this Ordinance. The City Council of the City of Petaluma
hereby declares that it would have passed and adopted this Ordinance and each of its provisions
irrespective of any part being held invalid.
M
SECTION 3: The City Council finds that this Ordinance is not subject to the California
Environmental Quality Act ("CEQA") pursuant to Section 15060(c)(2) of the CEQA Guidelines
because the activity has no potential for resulting in a direct or reasonably foreseeable indirect
physical change in the environment, and pursuant to Section 15060(c)(3) of the CEQA
Guidelines because the activity is not a project as defined in Section 15378) of the CEQA
Guidelines.
SECTION 4: This Ordinance will become effective thirty days after the date of its
adoption by the Petaluma City Council.
SECTION 5: The City Cleric is hereby directed to post and/or publish this Ordinance or
a synopsis for the period and in the manner required by the City Charter.
INTRODUCED and ordered posted/published this
ADOPTED this day of
AYES:
NOES:
ABSENT:
ATTEST:
day of
, 2018 by the following vote:
David Glass, Mayor
APPROVED AS TO FORM:
Claire Cooper, City Cleric Eric Danly, City Attorney
5
, 2018.
Attachment 2 - Exhibit A to Ordinance N.C.S.
Second Amendment to Lease Agreement
for Property at 203, Maria Drive on Lucchesi Park
THIS SECOND AMENDMENT ("Second Amendment") to the Lease Agreement
("Lease") for City -owned property located at 203 Maria Drive on Lucchesi Park in Petaluma,
California, is entered this day of , 2018, by and between the City of Petaluma
("City"), a California Municipal Corporation and Charter City, and Boys and Girls Clubs of
Central Sonoma County, Corporation number C1825660, ("Assignee") as successor to Boys
and Girls Clubs of Marin and Southern Sonoma County, Corporation number CO249360.
WHEREAS, on September 17, 1990, a staff report and ordinance were presented to the
City Council to permit the Council to authorize lease of a one -acre portion of Lucchesi Park at
203 Maria Drive ("Property") to the Petaluma Boys and Girls Club ("Lessee") for construction
of a 25,000 -square foot club facility to serve the East Petaluma area; and
WHEREAS, the City Council introduced ordinance 1825 N.C.S. approving the Lease
on September 17, 1990, and adopted the ordinance October 1, 1990, with the ordinance taking
effect 30 days later, on October 31, 1990 authorizing a lease of the Property for construction of
a club facility for a 50 -year initial term commencing on March 1, 1991, with an option to extend
the Lease by an additional 25 -year term; and
WHEREAS, following approval of the Lease, the City Council on July 1, 1991 adopted
Resolution 91-194 N.C.S. approving the first amendment to the Lease ("First Amendment") to
permit the Lessee to mortgage or otherwise encumber the Lease as a lender may require for
purposes of financing the improvements to be constructed on the Property; and
WHEREAS, following the First Amendment the Lessee was succeeded by a different
corporate entity, Boys and Girls Clubs of Marin and Southern Sonoma Counties, corporation
number CO249360, as Lessee; and
WHEREAS, Boys and Girls Clubs have been serving communities in Sonoma County
for over 50 years, and, until recently, local Sonoma County Boys and Girls Clubs have operated
independently of the larger county -wide organization, the Assignee; and
WHEREAS, Assignee began operating clubs in Petaluma in August of 2017 at the
request of the Lessee; and
WHEREAS, Assignee now operates clubs at McKinley and McDowell Schools,
Burbank and Eden Housing communities as well as the Property subject to the Lease; and
G
WHEREAS, the Lessee and Assignee have indicated a desire to transfer the Lease on
the Property to Assignee to ensure that the Boys and Girls Club programs continue; and
WHEREAS, Section 46 of the Petaluma City Charter provides that certain City Council
actions must be taken by ordinance, including certain actions for acquisition, sale or lease of real
property;
NOW, THEREFORE, in consideration of the promises and mutual covenants contained
in this Second Amendment, and for good and valuable consideration, the sufficiency of which is
hereby acknowledged, the City and Assignee (together, the "Parties") hereby agree as follows:
1. Parties. The Lease is hereby amended to substitute the Assignee for
references to the Petaluma Boys and Girls Club.
2. Notice. Notice shall be given to the Assignee as follows:
. Boys and Girls Club of Central Sonoma County
3. No Other Changes. Except as modified above, the Lease remains unchanged
and continues in full force and effect.
IN WITNESS WHEREOF, authorized representatives of the Parties have executed this
Second Amendment as of the day and year first written above.
City of Petaluma Boys and Girls Clubs of Central Sonoma County
By By
John C. Brown Jennifer Weiss
City Manager Executive Director
Approved as to form
By
Eric W. Danly
City Attorney
Attest
By
Claire Cooper
City Clerk
VA