DATE: August 21, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Public Works Department
TITLE: AMENDMENT 3 TO THE PROPERTY USE AGREEMENT WITH VISTA COMMUNITY CLINIC FOR THE USE OF THE JUNIOR SEAU CLUB 55 FITNESS CENTER
RECOMMENDATION
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Staff recommends that the City Council approve Amendment 3 to the Property Use Agreement with Vista Community Clinic for the use of the Junior Seau Club 55 Fitness Center located at 448 Country Club Lane, extending the term of the agreement through June 30, 2025; and authorize the City Manager to execute the amendment upon receipt of all supporting documents.
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BACKGROUND AND ANALYSIS
On June 24, 2015, the City Council approved a five-year Property Use Agreement with Vista Community Clinic (“VCC”) for the operation of the Junior Seau Club 55 Fitness Center (“Club 55”). The Agreement was further extended through June 30, 2023 by Amendment No. 1, which provided for two additional one-year options. Amendment No. 2 allowed VCC to exercise the first one-year option, and extended the term through June 30, 2024. At this time VCC would like to exercise its second one-year option and is requesting an extension through June 30, 2025.
Amendment 3 extends the term of the Agreement by one year, commencing retroactively on July 1, 2024 and expiring on June 30, 2025 (“Amendment”). This is VCC’s final one-year extension option as provided in Amendment No.1. With the impending expiration of the Agreement with VCC, staff will be re-evaluating future use of this space, which could include negotiating a new contract with VCC or seeking a new operator.
Club 55 has approximately 50 members at this time. Oceanside residents under the age of 55 pay an annual membership fee of $65, while residents 55 years and over pay an annual membership fee of $55. All non-Oceanside residents pay an annual membership fee of $65. VCC continues to market Club 55 to the community while attempting to recruit new members.
FISCAL IMPACT
The cost to operate Club 55 during FY 2024-25 is $69,987. To cover the cost, $43,409 will be charged to Club 55 account 900439101.5395, $13,201 will be charged to Community Development Block Grant (CDBG) account 822138500237.5395, and an additional $10,627 will be charged to City Manager Contingency account 150150101.5450. VCC will utilize the collected annual membership fees estimated at $2,750 to offset the remaining balance. The Club 55 account 900439101.5395 has $43,409, the CDBG account has $13,201, and the City Manager account has $82,735 in the proposed FY 2024-25 budget, respectively; therefore, with an estimated amount of $2,750 in annual membership fees collected, there will be sufficient funds available.
|
Description |
Amount |
Account |
Available Balance |
|
Amendment 3 with VCC |
$43,409 |
General Fund Club 55 900439101.5395 |
$43,409 |
|
|
$13,201 |
CDBG 822138500237.5395 |
$13,201 |
|
|
$10,627 |
City Manager Contingency 150150101.5450 |
$82,735 |
|
TOTAL |
$62,237 |
|
|
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
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Prepared by: Bryan Smithwick, Property Agent I
Reviewed by: Hamid Bahadori, Public Works Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Amendment 3