Council directs staff to negotiate new Boys & Girls Club agreement after debate over attendance and funding

Rancho Santa Margarita — Following extensive public comment and focused questioning from council members, the Rancho Santa Margarita City Council on Jan. 8 directed staff to negotiate a new agreement with the Boys & Girls Clubs of Capistrano Valley to address concerns about attendance reporting, resident access and funding parity.

Nicole Watson, CEO of the Boys & Girls Clubs of Capistrano Valley, described the organization’s history in the city and said the club’s Rancho Santa Margarita operating budget is $382,111. She told the council the city’s original 2013 contribution of $120,000 (87% of operating support at that time) now represents about 31% of the RSM location’s budget and that the club must raise roughly $240,000 annually through membership fees, day‑camp fees and fundraising. Watson said the club’s six‑month report documents a 33% increase in average daily attendance in Rancho (reported increase from 62 to 82), expanded transportation and added services, and she said the club would participate in a new RFP if the city chose that route.

Council members pressed for a direct cost‑per‑child comparison between Rancho and San Juan Capistrano locations, citing a June to July 2024 extension that required the club to produce comparative data. City staff and the club stated a like‑for‑like comparison is difficult because locations serve different communities and programming; staff said it has conducted spot counts but has not independently verified the club’s reported average daily attendance figures.

Several residents and club supporters urged the council to preserve and fund the program, speaking to tutoring, mental‑health support, nutrition partnerships and long‑term community benefits. Board members and founding supporters described multi‑decade fundraising and argued the club subsidizes RSM operations from regionwide donations.

Mayor Beal explained his dissent on the motion, repeating concerns about what he called a per‑child funding disparity and citing portions of the record alleging a recommended reading list and perceived political content posted by the club. He said those issues and the lack of complete comparative data reduced his confidence in moving straight to a new long‑term contract without firmer accountability measures.

Councilmember Figueroa moved to direct staff to negotiate a new agreement that addresses council comments and requested the Boys & Girls Club meet with city staff by the end of January; Councilmember Barrett seconded the motion. The council approved the motion 4–1. The motion directs staff to negotiate terms covering service levels, verifiable average‑daily‑attendance reporting and nonresident participation and to return with recommended contract language promptly so parents have adequate notice if services change.

Staff and the club were asked to pursue constructive discussions immediately; the city manager said staff would attempt to balance accountability requests with operational continuity to avoid service disruptions for children.