HomeMy WebLinkAbout07/06/1999, 4 - AMENDMENT TO LEASE AGREEMENT BY BOY SCOUTS OF AMERICA FOR USE OF STRUCTURAL ADDITION AT RECREATION CENTER counat MmfingDi�
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AQcnbA Report '.4
CITY OF SAN LUIS O B I S P O .
FROM: �y�Paul LeSage, Parks &Recreation Director
�J Prepared By: Kathy Mills, Recreation Manager H
SUBJECT: AMENDMENT TO LEASE AGREEMENT BY BOY SCOUTS OF
AMERICA FOR USE OF STRUCTURAL ADDITION AT
RECREATION CENTER
CAO RECOMMENDATION
Approve the First Amendment Of Lease Agreement between the City of San Luis Obispo and the
Los Padres Council of the Boy Scouts of America to require payment of a lease in the amount of
$800.00 per month after January 31, 2000 through conclusion of the lease term on January 31,
2001, should the scouts continue to occupy the space during this period of time.
DISCUSSION
Background
In 1951 the City entered into a lease agreement with the Los Padres Council of the Boy Scouts of
America(hereafter,`Boy Scouts"), in which they agreed to construct an 800 square foot addition
to the City Recreation Building, and the City agreed to rent the addition to the Boy Scouts for a
dollar a year for a 25 year period. The lease also contained an option to renew for an additional
25 year period. The initial term expired without the Scouts having exercised their option to
renew, however in 1984 the City entered into a new lease agreement for a five year tern with
automatic one year renewals until January 31,2001, for a dollar a year.
In the Fall of 1998, several concerned individuals and members of local organizations, including
the American Civil Liberties Union of San Luis Obispo, (ACLU), the Gay and Lesbian Alliance
of the Central Coast, (GALA), Parents and Friends of Lesbians and Gays on the Central Coast,
Atheists United of San Luis Obispo, National Organization for Women for San Luis Obispo,
(NOW) Central Coast Diversity Coalition, requested that the City terminate the lease prior to its
expiration because of the Boy Scouts' admission policies. These groups have now established a
united organization recognized as A United Coalition Of Individuals And Organizations For
Equal Rights Of All Citizens In San Luis Obispo.
During the public comment portion of the Human Relations Commission(HRC)meeting of
March 10, 1999,members of the organization listed above and representatives from the Boy
Scouts presented information to the HRC. Twenty seven individuals spoke and requested that
the HRC place the matter on an upcoming agenda for discussion. The HRC agreed to review the
lease and directed staff to bring the matter back on April 7, 1999.
4-1
Council Agenda Report—Application to State Department of Education for Environmental
Education Grant
Page 2
At the April 7th HRC meeting,public testimony was received on both sides of the issue. On a
motion passed 6:1,the HRC voted: (1)that Article C of the lease agreement date the sixth of
March, 1984-between the City of San Luis Obispo and the Santa Lucia Area Council, Inc.,Boy
Scouts of America be implemented without prejudice. (2)that the 120-day period of notice be
extended to allow the lease to expire no later that January 31, 2000, and{3)that if the Boy Scouts
wish to extend the lease up to January 31,2001,they may do so at fair market value. An excerpt
of the Minutes is attached(Attachment 1). The current lease agreement is also attached for
reference(Attachment 2).
Per the action of the HRC, staff took steps to determine the fair market value rent of the offices at
the Recreation Center currently occupied by the Boy Scouts. The real estate appraisal firm of
Schenberger, Taylor, McCormick, and Jecker was retained to determine an appropriate rent.
Using inspection, analysis, and a rental survey they concluded that a fair market value rent ranges
from $0.90 to $1.10 per square foot. A summary of their findings are included as Attachment 3.
The fiill report is available at the City Clerk's Office for review. The recommended rent of
$800.00/month is approximately $0.97 per square foot, or mid range of the rent survey. Staff
also asked several people familiar with the downtown rental market for their estimates of a fair
rent value. Consistently, the quoted figure was $1.00/square foot. Staff contacted the
CEO/Scout Executive of Los Padres Council of the Boy Scouts of America, Mr. Leonard Lanzi,
and provided him with the rental information. After conferring with the Executive Council, Mr.
Lanai indicated that the proposed rental fee was acceptable and returned a signed copy of the
amendment to the agreement(Attachment 4).
At the April 7' HRC meeting, the Commission also agreed to recommend to the City Council
that a policy be adopted (based on the already approved Bylaws of the HRC) prohibiting
discrimination practices by organizations who negotiate a subsidized lease agreement with the
City. In addition, the Commission recommended that the policy specifically list "race, religion,
sex, sexual orientation, national origin, age, physical, mental, or economic status", as is referred
to in the Human Relations Commission's Bylaws. This recommendation is currently being
analyzed by staff and will be brought back to the Council at a later date.
FISCAL EMPACT
There will be an increase in revenue directed to the Indoor Facilities Account of the Parks and
Recreation Department of$800 per month commencing in February of 2000 and concluding at
the end of the term of the lease, or when the Boy Scouts vacate the building.
ATTACHMENTS
1 HRC Minutes: 4/7/99
2 Current Lease Agreement
3 Appraisal Summary
4 First Amendment of Lease Agreement
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Attachment 1
LEASE AGREFJIENT
This Agreement is made and entered into in the City of San Luis
Obispo, County of San Luis Obispo, State of California, on this 6th
day of March , 1984, by and between the CITY_OF SAN LUIS OBISPO,
a chartered municipal corporation of the State of -California, herein-
after referred to as "LESSOR" , and the SANTA LUCIA AREA COUNCIL, INC. ,
BOY SCOUTS OF AMERICA, hereinafter referred to as "LESSEE" ; jointly
referred to hereinafter as the "parties" .
RECITALS
The parties enter into and execute this Agreement with knowledge
of and reliance upon the following facts:
1. LESSOR is the owner of the real property and all improvements
thereon, commonly known as the corner of Santa Rosa and Mill Streets,
San Luis Obispo, California, whose legal description is:
All of lots 1 and 2 in Block 32 of the City of San
Luis Obispo, according to the official map of said
City filed for record in the Office of the County
Recorder of the County of San Luis Obispo, State of
California, containing 1.0333 acres, more or less,
together with improvements thereon.
2. LESSEE, in accordance with a previous agreement between the
parties, dated March 5, 1951, constructed a certain structure addition
to the northeast corner of the building located on the property describes
in paragraph 1. ("the addition") . At all times subsequent to construc-
tion of the addition, LESSEE has occupied the addition and rented the
same from LESSOR.
3. LESSEE desires to continue to rent the addition.
AGREEMENT
NOW,. THEREFORE, in consideration of the mutual and respective
covenants and promises set forth herein, and subject to all the terms
and conditions hereof, the parties agree as follows:
a. Premises. LESSOR hereby leases to LESSEE and LESSEE hereby
demises and leases from LESSOR, for the term, at the rental and upon the
conditions hereinafter set forth, that certain structure addition,
constructed by the LESSEE on the northeast corner of the City recreation
building, - located at Santa Rosa and Mill Streets., in the City of San
Luis Obispo (as depicted in red in attached Diagram A) hereinafter refer
to as "the premises".
b. Term. The term of this Agreement shall commence on the date
this Agreement is entered into, and shall expire January 31, 1989.
From year to year thereafter, but not beyond January 31, 2001, this
Agreement shall continue and automatically renew itself unless sooner
terminated as hereinafter provided.
c. Termination. Notwithstanding any other provision of this
lease, LESSOR may terminate this Agreement at any time after January
1989, without cause, by giving one hundred twenty (120) days written
notice to LESSEE.
d. Merit. LESSEE agrees to pay LESSOR as rent for the demised
premises One Dollar ($1.00) per year, payable in advance, annually,
on the 31st day of January. LESSEE shall pay the LESSOR the first
five (5) years rent upon execution of this lease by both parties hereto.
In the event this lease is terminated, prepaid rent will be prorated.
All rent shall be made payable to the "City of San Luis Obispo" and
shall be sent to the LESSOR at the address to which notices to LESSOR
are given.
e. Use of Premises. The demised premises shall be used by LESSEE
for a boy scout office headquarters. LESSEE agrees and covenants to
use and maintain the premises and to devote the same only to such
purpose. The premises shall not be used for any other purpose without
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the prior written consent of LESSOR. I.f at any time during the
term or any renewals hereof, said premises are used for or devoted
to any other purpose or purposes, without the prior written consent
of LESSON this lease shall immediately terminate, and LESSOR, its
officers, -or agents, may re-enter and take posse-ssion of said
premises and remove all persons therefrom.
f. Utilities. LESSEE shall be solely responsible for all
utilities on the premises.
g. Maintenance of Premises. LESSEE agrees to keep and maintain
the premises in good order and condition at its expense to the
satisfaction of LESSOR. LESSOR reserves the right at any time to
make such reasonable rules and regulations as in its -judgment may
from time to time be necessary for the safety, care, cleanliness of
the premises, and LESSEE hereby agrees to strictly comply therewith.
h. Nuisance. LESSEE shall not commit or suffer to be committed
nuisance, waste, or unlawful act in or about the premises.
i. Compliance with laws. LESSEE agrees and promises to comply
with and obey all applicable federal, state, county,. and municipal
laws, ordinances or regulations, including, but not limited to,
those pertaining to discrimination.
j . Assignment. The use of the premises authorized herein is
of a personal nature, and assignment, sublease, or transfer by
LESSEE of this Agreement or of any privileges given hereunder shall
not be permitted. LESSEE agrees not to assign this lease nor sublease
nor sublet the demised premises or in any other manner part with
possession or occupation of the same without the prior written consent
of LESSOR.
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Any other assignment or sublease, or attempted assignment or subleases
by LESSEE shall be void, shall confer no rights on any third party,
and shall be good cause for termination of this Agreement by LESSOR
at its option. This Agreement shall not be assignable by operation of
law.
k. -
LESSEE not agent of LESSOR. Neither-- LESSEE nor any of LESSEE'
agents or contractors are or shall be considered to be agents of LESSOR
in connection with the performance of LESSEE's rights and obligations
under this Agreement.
1. Release. LESSOR shall not be responsible to LESSEE for any to
of property from said premises, however occurring. LESSEE hereby waives
any and all claims for damages that may be caused by LESSOR in re-enteri
and taking possession of the premises thereby and all claims for damages
to or loss of property belonging to LESSEE as may be in or upon the 1. .
premises at the time of such re-entering. LESSEE also waives any and
all claims against LESSOR for damages to any property of LESSEE from
any cause arising at any time.
m. Indemnification. LESSEE agrees to and shall defend, indemnify
and save harmless LESSOR and its officers, agents, and employees, from
and against any and all claims, demands, liability, cost, expenses,
damages, causes of action and judgments for loss or damage to property
or for death or injury to persons, in any manner arising out of this
. Agreement or out of the performance or attempted performance of the
provisions hereof, . including, but not limited to, any act or omission
to act or act of negligence by LESSEE, its agents, employees, or
independent contractors directly responsible to LESSEE excepting only
such injury or death as may be caused by the sole negligence or willf--'
conduct of LESSOR, or its officers, agents, employees, or independent
contractors directly responsible to LESSOR. 4-6
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n. Insurance. LESSEE agrees to and shall take out and maintain
during the entire time of this Agreement, in companies acceptable to
LESSOR, a public liability and property damage insurance in the amount
of at least Five hundred thousand dollars ($500,000) combined single
limit for bodily injury and property damage. All- such insurance
or the endorsements must include the following provisions:
(1) If the insurance policy covers on an "accident" basis,
it must be changed to "occurrence".
(2) The policy must cover personal injuries as well as
bodily injuries.
(3) The policy shall include coverage for errors or omissions
by LESSOR and its officers, agents, employees, independent contractors
directly responsible to LESSOR.
(4) The policy shall require the insurance carrier to give LESS,
in writingthirty (30) days prior notice of any cancellation of such
insurance or a reduction in the amount thereof, or any major change.
(5) The policy shall provide that the insurance will act as
primary insurance and that no other insurance effected by LESSOR or othe
named insureds will be called to contribute to the loss covered thereund
(6) The City of San Luis Obispo, its officers, agents and
employees shall be named as additional insuredsunder the policy.
Approval of the insurance by LESSOR should not relieve or
decrease the extent to which LESSEE may be held responsible for payment
of damages resulting from its operation.
o. Effective Waiver. LESSOR' s waiver of breach of any one term,
covenant, or other provision of this Agreement is not a waiver or bread'
of any other terms, nor subsequent breach of the term or provision
waived.
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J
P. Surrender of possession. At the expiration or termination
of this Agreement, LESSEE promises and agrees to deliver unto LESSOR
the said demised premises in as good condition as of the date this
Agreement was entered into, reasonable wear and tear excepted.
q._ Notices. Unless otherwise provided, 'all notices required
herein shall be in writing, and delivered in person or sent by United
States mail, postage prepaid. Notices required to be given to LESSOR
shall be addressed as follows:
City Administrative Officer
City of San Luis Obispo
P. O. Box 321
San Luis Obispo, CA 93401
Notices required to be given to LESSEE shall be addressed as follows:
Santa Lucia Area Council, Inc.
Boy Scouts of America
1123 Mill Street
San Luis Obispo, CA 93401
provided, that either party may change its address by notice in writi'
to the other party and thereafter notices shall be addressed and trans-
mitted to the new address.
IN WITNESS WHEREOF the parties hereto have executed this Agreement
as of the date and year first above written.
LESSOR
CITY OF SAN LUIS OBISPO
B
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ATTEST:
CITY CLE RX PAMELA GE
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LESSEE
SANTA LUCIA AREA COUNCIL, INC. $,
BOY SCOUTS OF AMERICA
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—.o—•-0-.e-.. o— EXHIBIT "A"
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Attachment 2 `�
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Commissioner Culpepper notified the audience of the NAEIR program which services nonprofit
organization with industrial resources/supplies. Anyone interested should call(800)289-4551.
(The Commission stood in recess from 6:40 to 7:05)
2. REVIEW OF BOY SCOUT LEASE OF CITY PROPERTY:
Chairman Multan reviewed the staff report which recommended (1)an HRC recommendation to
the City Council that the lease of city property by the Boy Scouts of America be allowed to
expire at the end of its term, January 31, 2001, and (2) an HRC recommendation that the City
Council adopt a formal nondiscrimmation policy concerning the subsidized use of city property.
There were no comments/questions. Chairman Multari opened the floor to receive public
testimony.
PUBLIC COMNMNTS:
Hank Alberts, SLO Co. pres., American Civil Liberties Union, commended the Commission for
their valuable work. Six years ago the city initiated an aggressive, precedent-setting policy to
ban smoking in the city. The Council should take the same aggressive attitude to make the city
discrimination free as well. He finds the Mayor's attitude expressed in the newspaper towards
the Scout issue unsettling. He feels the Mayor's contention is the majority of citizens feel that
certain groups do not deserve equal protection. Equal protection,when it comes to human rights,
should not be subject to majority vote. He doesn't believes the citizens want discrimination to
continue for two more years. Attacks on gays have increased sharply, even prompting President
Clinton to initiate legislation concerning hate crimes. It is imperative that the city terminate the
lease now and thus send a clear message that intolerance and discrimination against anyone will
not be tolerated. He disagrees with the staff report suggestion that people should wait two more
years to suffer the injustices of discrimination just to keep community peace and unity. Justice
delayed is justice denied.
Rick Fabrick SLO resident, feels the city should break the lease immediately. Prejudice,racism,
and discrimination is taught If the lease is not terminated,both the city and the Scouts will be in
violation of the antidiscrimination clause of the lease. City property should not be used to deny
gays and atheists their rights.
Allison Peterson Los Osos resident, is a dir. of a local nonprofit agency. She feels the question
is not whether the Boy Scouts is a good or bad organization, but the issue involves the policy and
the charter of the city. In order for nonprofit organizations to received funding they must sign a
statement noting the policies of the organization do not discriminate and the charter of the city
states the same thing in their leasing/rental agreements. The realization is the city should
mandated their charter and execute the 120-day eviction of the Scouts.
Lora Hutson, multi-organization member, cited a letter (Attachment 3), noting the Boy Scouts
and the city openly acknowledge that the Scouts practice discrimination against atheists,
homosexuals and place restrictions on Unitarian Universalists. This is in violation of the lease
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agreement which clearly states that the Scouts must be in compliance with all laws, including
antidiscrimination laws. The city should terminate the lease agreement immediately. She
encourages the city to enforce and honor its own policy. She recited the Council's oath of office
and asked the HRC to recommend this item be place on Council's agenda immediately.
Elden Haslet Atascadero resident, feels reverse discrimination taking place against those who
hold to a high-moral standard. He feels vendetta groups are forming against those who practices
good. He believes in the Boy Scouts have a right constitutional right.to raise their children the
way they wani to be raised, not mandated by other groups.
Leonard I'an-M Los Padres Council of the Boys Scouts of America executiveJCEO, is
responsible for all programs that serve both SLO and Santa Barbara Counties. He described the
many services of the Scouts and how these services add to the quality of life in SLO. The Scouts
realize that they cannot be everything to everyone in the community. They ask their membership
to subscribe to a declaration of religious principle found on every membership application. He
described other educational programs offered by the Los Padres Council which do not require
subscription to their membership standards. The service center at 1123 Mill St. is important to
support their 3,000 local member;and participants. With the end of the lease approaching, a task
force was formed to determine whether or not the current space would meet future needs. The
Jan. 2001 provides sufficient time to prepare for future requirements. The Scouts have served
this community since 1951. They are growing and their needs are changing. He recommended
supporting the lease term to the end of Jan. 2001.
Chairman Multari asked if through the variety of programs that the Boy Scouts presently offer,
are some programs open to persons who are atheists or homosexuals.
Mr. Lanzi replied yes.
Chairman Multari asked if these nondiscriminatory programs are serviced out of the Mill St.
office.
Mr. Lanni replied yes,the Exploring Program.
Commissioner Wolff asked if a boy participates in the Exploring Program and is gay, is he
allowed to be a member of the Boy Scouts.
W. Lanzi replied he would be a participant in the program. The Exploring Program is not a
membership program of the Boy Scouts.
Jack Crawford, local district Scout chairman, urged the HRC to follow staff's recommendation.
The city attyhas determined after thorough research that there does not appear to be any
applicable laws, ordinances, or regulations with which the Boy Scouts have failed to obey. The
city is in no position to terminate the lease for lack of consideration or as gift of public funds.
The context in which this issue has come up would suggest that termination of the lease before
its tens is more in the nature of a punitive action and for the city's convenience and would be
colored by an illegal purpose.
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Mary Stallard. Gay and Lesbian Alliance (GALA) pres., stated they cannot prevent the Boy
Scouts from discriminating against gays and atheists; however, the Council does have policies
prohibiting discrimination and she asked the city uphold their policies. She requested an HRC
recommendation to Council to exercise the 120-day eviction clause or if that poses an undue
hardship, allow the Scouts to remain in their space until Jan. `01, but pay fair market value for
the space occupied.
Hush Wadman,city resident, stated good human relations are maintained primarily by the
exercise of politeness, charity, goodwill, and understanding. The law is merely the safety net
which picks up those cases where such goodwill and understanding have failed to resolve the
issue. He does not wish to have his taxes used to support a set of beliefs he finds offensive. The
Boy Scouts discriminate against gays and atheists. He is saddened if the conduct of this city's
affairs is guided by the bottom line safety net of governments. He-would like respect and
kindliness to prevail long before the lawyers are called in. The Boy Scouts should understand
what they are doing is hurtful and should offer to move out voluntarily rather than being forced
to move.
Bob Ladd. Morro Bay resident, GALA, Atheists United, and ACLU member, stated there will be
a new Council in 2001 and this situation could become an election issue.- The Boy Scouts
practice what is called institutional discrimination and is hard to recognize because it's carried
out by respected community members. The Boy Scouts also discriminate against women. By
saying homosexuals or atheists could join by renouncing homosexuality or atheism is ludicrous.
By allowing the Scouts to rent space on city-owned land, they are given legitimacy, especially in
the eyes of the children admitted or denied admission to the Boy Scouts. This sexual cast system
sets up its rulers to be heterosexual, religious males whose mind set is concerned with
domination rather than cooperation. Selective enforcement of discrimination laws should not be
accepted.
Annie King, National Organization of Women rep., feels the city atty.'s report is the legalistic
bottom line which she hopes HRC and Council will rise above. The morally correct thing to do
would be for the Boy Scouts to voluntarily leave, but barring that, for the city to ask them to
leave or ask them to pay the fair market rate to the end of the existing lease. By the very fact of
the issue that has arisen, it has shown that the Boy Scouts are not contributing to the quality of
life in our city. She urged the Commission to recommend to Council that they terminate the
lease immediately.
Pete Evans, address unstated,urged the Commission to uphold a nondiscriminatory position.
Dale German. Church of the Nazarene pastor, appreciates the civility of the evening's discussion
when there is such a diversified opinion. His church is comprised of 450 members who
completely support the Boy Scouts. The Scouts have a long tradition of wholesomeness and
value in the community.
Wendy Fertschneider, city resident, feels subsidized rent is equivalent to a grant in a sense and
those standards should be followed. She hopes that the government and other funding agencies
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will say to the Boy Scouts that they cannot receive public moneys unless they adhere to the high
standards of nondiscrimination and maybe then the Scouts would change their polices regarding
discrimination. In preparation for her remarks she interviewed a gay Eagle Scout and a gay
chaplain who worked for the Scouts and felt the Boy Scout are a fabulous organization and every
boy should have access. She urged the HRC to recommend lease termination within 120 days.
Peggy Koteen, Atheists United of SLO Co. board member, hopes that the HRC will look above
the law and make the bottom line a moral and ethical issue of how the city wants to represent
itself. By subsidizing rent to the Boy Scouts, the city is not being open to all its citizens. She
recommends Council's agendizing this issue for an immediate decision. Subsidized
discrimination should not be tolerated. She urged termination of the lease immediately. A
compromised situations would be to require fair market rent until the lease expires in `01.
Glen Lubeck(Inaudible), Creston resident,believes the Scouts have a moral foundation that they
will not waiver from. Homosexuality is a learned,immoral chosen behavior. The Scouts want to
hold on to their small spot until they can get organized and relocated. The city has to choose
between a moral or immoral nature. Public opinion is swinging away from the moral foundation
of the bible and what is put forth by the Scouts. He hopes the Commission makes the right moral
decision.
Donald Kohn. Los Osos resident, was a Scout Master for many years and is still active in the
program. Women are leaders and members in the young adult programs. He reminded the HRC
the Scouts built their facility,so market value should be placed on the land alone.
Leslie Dannabaum (Inaudible), Santa Margarita resident, stated her family is involved in
Scouting and she fully supports staff s recommendation.
Bob Neubv. SLO resident, is in support of the Boy Scouts. The Scouts are planning on
relocating and it's only a short period of time before the lease expires in `01. They should be
allowed to stay until a suitable site is found.
Jannis Somers, SLO resident, is a volunteer for the Scouting organization and has three Eagle
Scout sons. The Boy Scouts are involved with the community and many man hours come back
to the community. Many community leaders were once Boy Scouts. The HRC needs to support
the boys. She supports staff's recommendation.
Dennis Ahern, SLO resident, has been involved in Scouting for years. The Scout organization
recognizes the usefulness and the need for women to be Scout Masters. The organization is
moving forward in the direction that is most valuable to the youth.
Santos Martinez, SLO resident, is proud of what the Boy Scouts has done with his life. He could
have easily have taken the wrong path if Scouting wouldn't have been available. He has given
back to his community and is involved with his church. He has been in law enforcement for 15
years and has seen the end product of lads who do not get mentoring. The Commission and
Council should take into consideration the kids that are lost or do not have mentors that can
benefit from the Boy Scouts.
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Rich Ellis. SLO resident, county employee, is concerned about the harm that is caused by
discrimination. Half the teenage and child suicides are caused by them being homosexual and
not having anywhere to turn or programs to be involved with. He is a gay Christian who has not
been discriminated against and would like to see the community help gay lids have pride and not
feel they have nowhere to turn.
Ellen Sturtz. Morro Bay resident, feels this issue wouldn't be="occurring if there wasn't
discrimination.- She is not against the Boy Scouts, but feels it's just unfortunate they
discriminate. She is a believer in the separation of church and state. The Boy Scouts can do
anything they want,but not on public land with public money.
Becky Jorgensen. Central Coast Chapter of parent and Friends of Lesbians and Gays (PFLAG),
asked the HRC to recommend termination of the lease immediately.
Gary Holloway, address unstated, is a member of the Boy Scouts community. He stated the
Scouts are the only organization on the list of city properties leased to nonprofit organizations
who have built their own facility. The Scouts have maintained, paid utilities, and insured the
property. The Scouts provide an invaluable service to the community. GALA has an
opportunity to provide mentoring to the gay community. He's sorry the Boy Scouts are being
attacked.
Linda Donnelley Morro Bay resident, urged the HRC to support the lease until it expires in
2001.
Seeing no finther speakers come forward,the public comment session was closed.
(The Commission stood in recess from 8:20 to 8:35)
COMMISSION COMMENTS:
Mrs. Mills distributed late correspondence from the SLO Green Party requesting immediate
termination of the Boy Scouts' lease(Attachment 4).
The Commission reviewed its bylaws and its charge to advise Council on its actions to create an
environment within the city in which all persons can enjoy equal rights and opportunities
regardless of race, religion, sex, sexual orientation, national origin, age, physical, mental, or
economic status.
Chairman Multari suggested forwarding to the City Council a recommendation that they
formulate, with the assistance of the HRC and staff, a formal policy with regard to non-
discrimination relative to subsidized use of city property. He does not want to prohibit certain
groups from use of city property. Certain groups, a church for example, may have policies that
some may interpret as discriminatory,but if they are willing to pay the fair market amounts, then
perhaps that is all right.
w.
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Commissioner Wolff stated if Council creates a policy that is different than the mission
statement of the HRC, which has been approved by Council, then a conflict in policy exists. A
formal policy is needed.
Commissioner Tyson raised the question if it would be appropriate for Council to adopt a non-
discrimination policy in general and not just in relation to subsidized use.
Chairman Multari moved to (1) recommend that the City Council formally adopt a policy based
Mn the already approved bylaws of the Human Relations Commission reg ding
nondiscrimination. (2) included in this is an explicit policy with regard to subsidized use of city
property with regard to discrimination practices of the organizations renting thoseproperties and
Q) if the City Council would like the Human Relations Commission to assist them in the
formulation of these policies,that the Human Relations Commission stands ready with the aid of
staff to receive the remand. The motion was seconded by Commissioner Tyson
After discussion. Chairman Multari amended his motion by eliminating_part three The
amendment was accepted by Commissioner Tyson
At the suggestion of Commissioners Avery and Wolff Chairman Multari amended his motion to
Specifically list race, religion, sex, sexual orientation, national origin age physical mental or
economic status, as is referred to in the Human Relations Commission's Bylaws Commissioner
Tyson accepted the amendment to the motion
AYES: Chairman Multari and Commissioners Tyson,Avery, WoM Culpepper,
Lawrence, and Brown
NOES: None
ABSTAIN: None
The motion carried 7-0.
Chairman Multari asked for HRC comment regarding the lease of city property by the Boy
Scouts.
Commissioner Culpepper recommends letting the lease stand until it expires in 2001.
Commissioner Wolff proposed for discussion a recommendation that the lease termination notice
be exercised but extended to allow the lease to expire no later than January 31,2000. This seems
to be a reasonable amount of time. The Boy Scouts are not on trial. They have a right to have
their polices,but not at the tax payers' expense.
Chairman Multari asked, for discussion, if the city would then be allowed to extend the lease
fiather if the Boy Scouts were to pay the full market rent for the property.
Commissioner Wolff believes that could be a reasonable option, but doesn't believe that would
occur.
4-16
Y ` '
Commissioner Brown noted the Boy Scouts have stated they are planning to relocate.
Commissioner Avery believes in this particular situation, the$1 lease option is unique in that the
Boy Scouts have participated in maintaining and building the structure themselves.
Commissioner Brown feels the HRC has an obligation to demonstrate its commitment to
nondiscrimination. She does not support letting the lease continue to its term in January 2001. It
is unfortunate that this is seen as an attack on the Boy Scouts.--.She supports Scouting and
believes it's wonderful to have organizations that provide activities for children. She feels the
higher issue is the rights of the gay and atheist communities to pursue equal rights and that this is
a step in that pursuit.
Commissioner Tyson favors immediate termination of the lease without cause. The city atty. has
neglected to include in his report decisions by the Supreme Court in several cases(Attachment 5)
which decided that when a state leases public property in the manner and for the purpose shown,
the Fourteenth Amendment must be complied with by the leasee as certainly though they were
binding covenants written into the agreements themselves. Commissioner Tyson has written to
the city atty. pointing out that materials received from staff reveal a bias in favor of the city
continuing a policy of providing the Boy Scouts with use of city property at less than market
rent, therefore condoning that organization's discriminatory practices. Free rent of government
property to the Boy Scouts implicates Fourteenth Amendment concerns. He is not opposed to
the Boy Scouts as an organization. This issue is a First and Fourteenth Amendment issue that
should be taken to Council as soon as possible.
Commissioner Lawrence is sympathetic to all sides of the issue. The Boy Scouts is a fine
organization, but she questions why sexuality and religion is now an included discriminatory
factor in the organization. She added that in consideration of what is happening in
Europe/Yugoslavia, this issue seems petty. She doesn't believe neither the termination of the
lease nor the expiration of the lease is the real solution to the real issue.
Chairman Multan has been involved with the Boy Scouts and has found the organization
beneficial to the youth of the community. There are many men in the community in positions
that seems to be doing good for the greater community and society that were once Boy Scouts.
All this respect, admiration, and gratitude towards Scouting makes it all the more disappointing
and dismaying to learn that this organization prohibits the membership for persons that are
homosexual or atheists. He supports Commissioner Wolff s recommendation of letting the lease
run to the end of this calendar year, giving the Boy Scouts a notice of 120 days or more, and
advising them that come Jan. 31, 2000, the automatic renewal will not be exercised. If the Boy
Scouts have difficulty finding another location, they can stay to the year 2001,the termination of
the original agreement, provided they pay the fair market value as determined by the City
Council.
4-17
12
Commissioner Wolff moved that the Human Relations Commission recommends(1lthat Article
C of the lease agreement date the sixth of March 1984 between the i of San Luis Obi o and
the Santa Lucia Area Council Inc. Bo Scouts of America, be implemented thout udice
(2) that the 120-day period of notice be extended to allow the lease to expire no later than
January 31. 2000. and (3)that if the Boy Scouts wish to extend the lease up to January 31 2001
the ma do so at air market value The motion was seconded by Commissioner Lawrence
Commissionef Tyson questioned if we're opening the city up to a lawsuit Based on the First
and Fourteenth Amendment, action on this motion is in violation as decided by the Supreme
Court in numerous decisions.
Chairman Multari supports the motion. The HRC is charged with knowledge of policy and a
sense of moral and ethic responsibility in light of its charge. He feels reaching a compromised
solution is worthwhile for the community.
AYES: Commissioners Wolff,Lawrence,Avery, Culpepper,Brown, and
Chairman Multari
NOES: Commissioner Tyson
ABSTAIN: None
The motion carried 6-1.
It was the consensus of the Commission to air a Council to agrendize this 'tem as soon as
convenient and take timely action
3. 1999-2001 FINANCIAL PLAN SUBMITTAL,
Mrs-Mills reported the request for the$50,000 additional leveraging funds and a separate request
for additional funding to participate in the United Way health assessment survey was forwarded
to the Budget Review Team. The recommendations of the Budget Review Team were to drop
the $50,000 for leveraging funds as that it didn't directly come from a staff recommendation.
The discussion on the health assessment was that the survey is underway and participation was
recommended at a lesser rate of$5,000. The recommendations will be forwarded to Council in
June and there will be an additional opportunity for anyone to make further requests.
Chairman Multari recommend readgendizing finther HRC discussion in May.
4. SUBCOMMITTEE REPORTS:
Due to the lateness of the hour, subcommittee report presentations were postponed.
Commissioner Brown passed out social health surveys to the Commission for distribution.
Commissioner Wolff distributed a copy of the SLOCO Access newsletter (Attachment 6). He
requested staff provide a list of Commission and liaison assignments at the next meeting.
13 4-18
Attachment 3
FIRST AMENDMENT OF LEASE AGREEMENT
That certain Lease Agreement dated March 6, 1984, by and between the
CITY OF-SAN LUIS OBISPO and THE SANTA LUCIA AREA COUNCIL INC.,
BOY SCOUTS OF AMERICA, is hereby amended as follows;.
1. The name of the Lessee is changed to LOS PADRES COUNCIL INC.,
BOY SCOUTS OF AMERICA.
2. The term of the Lease set forth in Paragraph "b" is hereby amended as
follows:
The term of this Agreement shall expire on January 31, 2000, provided
however it may be extended to January 31, 2001, at the option of
Lessee, by giving 30 days advance written notice to Landlord, upon the
payment of rent as specified in Paragraph "d." Lessee may terminate
this agreement at anytime by giving thirty days advance written notice
to Landlord.
3. The rent set forth in Paragraph "d" is hereby amended as follows:
Commencing February 1, 2000, Lessee agrees to pay Lessor as rent for
the demised property eight hundred dollars ($800.00) per month,
payable in advance.
4. All other terms and conditions of the Agreement dated March 6,
1984 shall remain in full force and effect.
4-19
IN WITNESS WHEREOF, the parties hereto have executed this First
Amendment to Lease Agreement by their proper officers duly authorized.
LOS PADRES COUNCIL, INC. CITY OF SAN LUIS OBISPO
BOY SCOUTS OF AMERICA
By: lC. By:
HarvIcy . LynnMayor
Counresident
Dated: June 8, 1999 Dated:
ATTEST:
Leonard M. Lanzi
Scout Executive/CEO City Clerk
APPROVED AS TO FORM:
7
-r
J. Johnson
Council Attorney 2City Attorney
4-20
Attacbment 4
SCHENBERGER, TAYLOR, pals of theFlrr
WCORMICK & JECKER sdPZ<^�
Tayloorr,,SREA, MA'
Ilk. 1 N C O R P O R A T E D %. McCormick, MA.
21d W. Jecker. SRA
Rea!Estate Appraisers Consultants and Investment AnelysGs Todd O.Murphy, MA!
Founded In 1972
June 10, 1999
Mr. Paul LeSage,Director
Parks and Recreation Department
City of San Luis Obispo
1341 Nipomo Street
San Luis Obispo,California 93401
Dear Mr. LeSage:
As you requested, I have completed an inspection, analysis, and rental survey for
the Boy Scout office located at:
1123 Mill Street
San Luis Obispo, California
The intended use of this rent survey is to provide a comparative basis for decision
making purposes.
Your attention is directed to the Assumptions and Conditions of Appraisal section
wherein all significant assumptions and conditions to this appraisal are specified.
Following is the report showing significant details of the investigation together with
exhibits and analyses.
As a result of my investigation and analysis,it is my opinion and conclusion that the
estimated market rent range for the subject property on the "as is" basis, as of
May 7, 1999,is $0.90 to$1.10 per square foot with a most probable rent of:
One Dollar Per Square Foot, Triple Net
Thank you for this opportunity to be of service.
Respectfully submitted,
Rollie A. McCormick,MAI
California License#AG005"1
RMC:al 4-21
1411 MARSH STREET, SUITE 107 • SAN LMS nRISPO • CAI IF(1RNiA . oadm . (ans) See.W79 . GAv iannN MAA Aonc
AGENDA f
DAl E A 4l ITEM #
GAY AND LESBIAN ALLIANCE
• GALA
P.O. Box 3558 Rereived
San Luis Obispo,CA 93403
805-5414252 JUN 2 8 1999
Mayor Allan Settle Clty Qt 8 O.
990 Palm Street
Administration
San Luis Obispo,CA 93401
Dear Sir:
Thank you for the time and consideration the City of San Luis Obispo has taken to discuss the
issues surrounding the Boy Scouts lease. We recognize that the contract discussions have
catalyzed sensitive debate.
The GALA Board of Directors would like to restate our position,which agrees with your decision
to not renew the lease and to allow adequate time for the Scouts to relocate. It is a satisfactory
compromise_ We also agree that charging fair market rent at the end of 120 days is also a fair
compromise.
It is our desire to live peacefully in our own community;free of discrimination. It was never our
desire to cause polarization,only awareness followed by action.
We are pleased that our City's policies support basic rights.We are confident that the City will
review similar cases and take steps to avoid the debate that has surrounded the Boy Scouts and
their lease. >la-9l0 AJ-10 0 OlS
Sincerely, 6661 8 Z Nnr
quom -
Mary Stallard 013A13�3a
GALA President 1999
CC: City Council Members
City Administrator FAO
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-A UnitedCoafit:wn of Individuals andganizations
For Equal Rights of Ad Citizens in San Luis Obispo
48 Rafael Way
San Luis Obispo,CA 93405
805-544-7634 RECEIVED
June 25, 1999 MEETING AGENDA JUN 2 9 1899
DATE ` 9q ITEM #
SLO C17Y
Mayor Allen Settle COUNCIL DD DIR
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San Luis Obispo City Council Members CAO ❑FIRE CHIEF
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San Luis Obispo, CA 93403-8100 M . � o ura DIR
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We,the United Coalition of Individuals and Organizations for Equal Rights of All
Citizens in San Luis Obispo have concluded that the city of San Luis Obispo must
invoke the 120 day clause of the Boy Scouts/City of San Luis Obispo lease
agreement because:
1. the city will be in breach of the existing lease agreement by doing any other
action.
2. the unlawful use of public property for religious purposes; a lawful use
necessitates non-governmental sponsorship or endorsement of public-owned
property for religious purposes.
3. the requirement of the city to provide competitive bidding of public-owned space
for use by non-discriminatory groups.
In reference to(1.),the city's only viable option within the original agreement was to
give a notice of 120 days, note 3(c.):
3(c.)Termination.Notwithstanding any provision of this lease,LESSOR may terminate this
Agreement at any time after January 31, 1989,without cause,by giving one hundred twenty(120)
days written notice to LESSEE.
And the city cannot offer an extension to the Boy Scouts to occupy a publicly-owned
building beyond 120 days because no such stipulation exist within the original
contract which is clarified by Chief Justice Duvall from the case Dartmouth vs.
Woodward as defined in the excerpt below:
Chief Justice Duvall states, "In my judgment it is perfectly clear,that any act of a legislature which
takes away any powers or franchises vested by its charter in a private corporation or its corporate
officers,or which restraints or controls the legitimate exercise of them,or transfers them to other
persons,without assent,is a violation of the obligations of that charter.If the legislature mean to
claim such an authority,it must be reserved in the grant."
In reference to (2.)above, it is essential that the city of San Luis Obispo uphold the
lawful"Use of Public Property for Religious Purposes" as stated in the ACLU policy
document number 99:
1
A United Coa. -ion of TndtviduaCs and _ ganizations
For EauaCR.ights of A00Citizens in San Luis Obispo
48 Rafael Way
San Lois Obispo,CA 93405
805-544-7634
(a)"The free exercise and establishment clauses of the Fust Amendment are not necessarily in
opposition,but may be accommodated with each other.Use of public facilities for religious speech or
activities,even when those facilities are public parks and streets,of course, involves religious use of
government funded facilities.But where the facilities are,and are known to be,public forums,made
available to all non-governmental speakers or groups on an equal,nondiscriminatory basis,there is no
government funding of the religious activity,as such,and ordinarily there is neither the fact nor the
appearance of government sponsorship.Both in fact and in public perception such areas are public
forums maintained at government expense,intended not to sponsor or support any particular group or
the particular content of any speech but to provide a forum for all non-governmental speech or
association. The test of whether the use of such a public forum is compatible with the
Establishment Clause is whether the particular public forum is and is known to be open to all
groups on a first-come,fust-served basis and there is neither the fact nor the appearance of
governmental sponsorship or endorsement of the activity or expression.
Public parks and streets are so traditionally and universally known to be public forums it is clear there
is ordinarily no violation of the Establishment Clause in their use for activities or speech with
religious content.By contrast,places in government building are not generally perceived as public
forums.Therefore,religious uses of such places must be scrutinized closely to insure that there is
neither the fact nor appearance of government sponsorship or endorsement.Thus,even though the
government purports to hold an auditorium,meeting room or other government facility
available as a public forum to all non-government groups,if in fact,over the course of a period
of time,none but religious groups avail themselves of the facility there may well be the fact or
appearance of government sponsorship.The criteria that go into evaluating any particular case
include the comparative frequency and duration of religious uses and non-religious uses.Where in
fact non-religious uses are common and widely known to exist,then religious uses of similar
frequency or duration may be compatible with the Establishment Clause."
The Boy Scouts have been determined by the California Supreme court to be a
private/religious organization which has the ability to practice membership
discrimination. The city of San Luis Obispo and the Santa Lucia Area Council.
of the Boy Scouts openly acknowledges that the Boy Scouts employ an active policy
of discrimination against homosexuals,Atheists,and place restrictions on Unitarian
Universalists. Therefore,the city of San Luis Obispo cannot provide 24 hour, 7-days-
a-week:, month to month leasing of public-owned space to the Boy Scouts because it
would endorse and sponsor a sectarian organization which is a clear violation of the
Establishment Clause.
In reference to(3.)above,the City of San Luis Obispo is obligated to make available
by competitive bid the use of public space to all citizens of the city of San Luis
Obispo that will honor all non-discrimination policies, as well as the provision stated
in 3(i.)of the current lease agreement.
3(i)Compliance with laws. LESSEE agrees and promises to comply with and obey all
applicable federal, state,county,and municipal laws,ordinances or regulations,including,but not
limited to,those pertaining to discrimination.
2
f A United CoaCu in of Individuafs and ,w anizations
For EauaCRights of Ad Citizens in San Luis Obispo
48 Rafael Way
San Luis Obispo,CA 93405
805-544-7634
Upon giving the 120 day written notice,the city of San Luis Obispo will finally be
able to lawfully comply with the requirement to provide competitive bidding of the
publicly-owned space located on the corner of Mill and Santa Rosa Streets to non-
discriminatory groups.
In conclusion,we must respectfully insist that the Mayor and City Council on July
6`s invoke the 120 day written notice clause to vacate provided in the lease
agreement with the Boy Scouts.
In Unity,
Lora Hutson Hank Alberts,President
Multi-Organizations Member ACLU of San Luis Obispo
County
Becky Jor eson esidennt Angie King,President
Parents and Friends of Lesbians National Organization for
and Gays of the Central Coast Women of San Luis Obispo
County
ntral Coast Div ity Coalition of
San Luis Obispo County
Concerned Individuals of Support:
3