Council pulls Ranchwood Park lease amendment for daycare, asks staff for utility and cost details
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Summary
Councilmembers paused approval of a two-year lease amendment for a daycare at Ranchwood Park after questions about whether the proposed rent covers utilities and maintenance; council directed staff to return Aug. 6 with utility bills, meter details and analysis of long-term options.
Los Banos councilmembers on July 16 removed from the consent agenda a proposed two-year lease amendment for Ranchwood Park and asked staff to return with more financial detail before approving the agreement.The item, Resolution No. 6953, would amend the lease with Marlene Pennington for use of the Ranchwood Park facility for daycare: the proposed amendment covered a two-year term at $2,500 per month in year one and $2,600 per month in year two, according to the staff report.
Why it matters: Council members said Ranchwood Park was built for community use and that long-term leasing to a childcare provider can reduce public access and may impose ongoing maintenance and utility costs on the general fund. Members asked whether the rent covered utilities, maintenance and the site’s separate metering.
Discussion and staff responses: Council members asked whether the building has a separate electrical meter and whether the lessee pays utilities under the existing lease. Acting Public Works Director Joe Heine said the building does have a separate meter and that some stewardship and maintenance costs are charged to the general fund; he offered to return with a detailed accounting. Council members said the current monthly rent appears low compared with other city facility rentals and asked whether the city should increase rent or consider selling the building rather than continuing to subsidize utilities and upkeep.
Council action: Councilmember moved and seconded a motion to pull the item from the consent agenda and return it to the next council meeting with additional analysis; the motion carried by voice vote. The council requested that staff report on: current utility billing for the Ranchwood building, whether utilities are billed directly to the lessee, the age and condition of the facility, prior lease language regarding utility responsibility, and comparative rental revenue from other city facilities.
Next steps: Staff said the current lease term has expired and that they will bring the amendment back at the Council’s Aug. 6 meeting with the requested financial and contract detail.
