Leaders in Desert Hot Springs are trying to get the city's financial house of cards in order just weeks after declaring a fiscal emergency. That's turning out to be costly to one very popular program.
The city has ended its contract with the Boys and Girls Clubs of the Coachella Valley.
The entire city council agreed on the move, even though there's some disagreement about why it was the right thing to do.
"What we'll do today is send the notice in writing and begin a series of negotiations to see what we can do about getting out from under the financial burden of providing $250,000 to the Boys and Girls Club," said Desert Hot Springs Interim City Manager Bob Adams, who provided the club with the 180-day notice earlier this evening.
The city promised to give the Boys and Girls Club $250,000 for 10 years, a total obligation of $2.5 million.
Instead of closing, the Boys and Girls Club wants to work with the city and keep the doors open.
"We're planning on re-negotiating with the city. we're planning to stay there, we're planning to stay there for the next 20 years."
When we talked with Mayor Adam Sanchez on the phone, he said the decision doesn't have anything to do with the city's budget crisis. He said the contract was "poorly written," and provides no accountability or transparency. He has since clarified his statement, saying it's a combination of both the city's finances and the contract.
The Boys and Girls Club says the contract is fine.
- Read the City of Desert Hot Springs Press Release
- First Amendment to Use/Lease Agreement between DHS and Boys and Girls Clubs