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Los Banos council approves two-year lease extension for Pennington's daycare at Ranchwood Park

6441464 · August 7, 2025
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Summary

The City Council voted to authorize a third amendment to the lease with Marlene Pennington, keeping Pennington's Daycare at Ranchwood Park for two more years amid broad public support and staff assurances about utilities and operations.

The Los Banos City Council on Aug. 6 approved Resolution No. 6953, authorizing a third amendment to the lease between the city and Marlene Pennington for rental of the Ranchwood Park facility, extending the arrangement for two years at $2,500 per month in year one and $2,600 in year two.

The vote came after more than a dozen parents, current and former students, staff and local residents spoke in support of keeping Pennington's Daycare in the city-operated facility. Owner Marlene Pennington told the council, “For 44 years, Pennington's has provided affordable quality childcare for working families in our community,” and said the center serves roughly 70 families. Teacher Maria Barbara told the council the center currently enrolls “about 73 families with 84 children.”

Why it matters: Pennington's provides early-childhood care and extended hours that residents said are essential for commuting parents and low-income families. Speakers said the day care accepts subsidized vouchers, provides hot meals and has long-term staff, and they warned that losing the facility would force some parents to stop working or drive farther for child care.

Staff summary and terms: Joe Heim, representing parks and public works staff, told the council that Pennington's currently pays on-site PG&E and that water-meter configuration issues remain under review; staff said they will work with finance and utilities to install a dedicated water meter and resolve billing mechanics over the next months. Heim said the city reviewed the Ranchwood facility against the College Greens rental building and that Pennington's performs custodial duties and handles opening and closing, reducing ongoing city maintenance costs. The lease dates back to February 2010; the amendment sets the monthly rent as described and represents a roughly 20.83% increase from the prior lease amount with a 4% increase in year two.

Public response and council action: Councilmembers heard roughly two dozen public speakers, and the city clerk reported 27 letters in support. Parents, teachers and longtime residents recounted multi‑generational ties to the program; several speakers emphasized that Pennington's provides hours and services used by hospital and other shift workers. The council adopted the resolution after a motion and second; the mayor called for the ayes and the motion carried.

What the council directed: In addition to approving the lease amendment, council members asked staff to finalize the utility meter work and to continue monitoring contract performance and community needs. No sale or immediate demolition of the building was proposed during the item.

Ending: With the lease approved, Pennington's will continue operating at Ranchwood Park while staff completes meter installation and the city and tenant continue routine repairs and oversight.