Rancho Santa Margarita’s branch of the Boys & Girls Clubs of Capistrano Valley is on its way out of town after negotiations with city leaders to renew their contract abruptly ended last month.
It comes after officials in the past year raised concerns about the cost of the youth recreation programs that the city pays $120,000 annually to help fund, decreased attendance and outside residents utilizing the club’s services.
There have also been accusations the Boys and Girls Club was politically indoctrinating kids.
In response, parents and residents have come out in defense of the club, arguing it provides inexpensive quality after-school programs and mentorship for kids in the city and calling the concerns by officials a false flag.
Now, residents are raising concerns about what they say is a lack of transparency around the negotiation process.
City council members did not respond to emailed questions on the issue.
Contract Negotiation Ends Abruptly
At the end of last month, the club’s leadership rejected an initial offer for a new two-year agreement from city officials, according to a city staff report.
“Unfortunately, it became clear during contract negotiations that the City’s priorities did not align with the mission of BCCCV,” Nicole Watson, CEO of the Boys & Girls Clubs of Capistrano Valley, said in a Monday statement.
The contract is set to expire on Aug. 8, and the organization will need to vacate the Bell Tower Regional Community Center by Aug. 13.
City Manager Jennifer Cervantes is expected to give city council members an update on the negotiations and the current contract at tonight’s 7 p.m. city council meeting.
“No counter-offer was made by the BGCCV; instead, they advised that they would be terminating service at the Bell Tower upon the current expiration of the Agreement,” reads a staff report. “The City suggested continued discussions and indicated that there was room for negotiation, which was not accepted.”
City spokeswoman Laura Lopez said the club ended negotiations for a potential contract despite being asked if they would consider a multi-year agreement at the same current annual rate.
“The Boys and Girls Clubs representatives were asked if they would consider a two- to three-year agreement at the existing rate, which they also declined,” she said in a Tuesday email.
Lopez did not provide the initial proposed contract offered to and rejected by the Boys & Girls Club or comment on what the stipulations of the agreement were.
Cindy Ashley, a member of the Canyon Democrats, is raising concerns about the lack of transparency about what really happened that upended negotiations between program leaders.
“The Boys & Girls Club went through all sorts of hoops to meet the demands that the city council had raised,” she said in a Tuesday phone interview. “I feel like the city is mischaracterizing what happened in the negotiations because if the city wanted them to stay they would be there.”
“They’re painting it like the Boys & Girls Club just walked away, and I am positive that is not accurate.”
Ashley said a lot of parents and residents are planning to speak in support of the club at tonight’s city council meeting.
A Year of Uncertainty For The Boys & Girls Clubs
The expected closure comes after Rancho Santa Margarita Mayor Anthony Beall publicly accused the city’s branch of the Boys & Girls Clubs of indoctrinating children with political messaging.
During a Jan. 8 council meeting, he claimed the organization was inappropriately advertising an online reading list promoting political, diversity-related subjects. The list — which included books like “White Fragility” and “White Rage: The Unspoken Truth of Our Racial Divide” — has been removed.
Those same concerns were echoed by Aliso Viejo Councilmember Mike Munzing. The Boys and Girls Club is still operating in Aliso Viejo for at least a few more years.
[Read: Are South OC’s Boys & Girls Clubs On the Chopping Block?]
“For me, it’s a political issue,” Munzing said in a January interview. “It’s hard not to look at that reading list and sense there’s some political view involved in that.”
Aliso Viejo Councilmember Richard Hurt said it’s unfortunate to see the organization leave neighboring Rancho Santa Margarita and the branch in his city does amazing work for kids.
“When I can, I go out there to support some of their events, and they just do an amazing job,” Hurt said in a Wednesday interview. “It’s easy to say what they’re doing from the dias and never go out there and spend time at a branch and see what the kids are learning and understanding.”
Aliso Viejo’s contract outlines a $177,500 annual amount for services for the Boys & Girls Clubs, according to the five-year agreement executed in 2022.
Ashley said Rancho Santa Margarita City Council members are pushing a political agenda.
“The Boys & Girls Club teaches kindness and character and provides mental health help if needed and wonderful opportunities,” she said. “I feel like our mayor needs to read some of those books.”
It also comes after Rancho Santa Margarita City Councilmembers Jerry Halloway and Bradley McGirr last year expressed support for a proposal to not renew the contract with the Boys & Girls Club and turn the Bell Tower Regional Community Center into a museum.
After pushback from parents, council members extended the organization’s contract for one year despite voicing concerns regarding low attendance, few transportation offerings for children, a high number of attendees from outside the city and the overall cost of the program.
They also required the club to give them a report after six months on how they are addressing the operational and cost concerns officials expressed.
This time around, the contract is set to expire without renewal.

The Boys & Girls Clubs of Capistrano Valley has three locations: Rancho Santa Margarita, Aliso Viejo and San Juan Capistrano.
They provide after-school and summer programs and activities for local youth that include fine arts, sports, tutoring and community service at a low cost.
The Rancho Santa Margarita branch has been operating in the city since 2012 and last year served around 350 kids between January and October, according to the club’s website
What’s the Future For Youth Programming?
Watson said they recognize the challenges this situation will create for families in the area.
“The closure of the Club will have a significant impact on local youth and families, as it has long served as a vital resource providing after-school and summer programs that promote academic success, character development, healthy lifestyles, and life and workforce readiness within a safe and supportive environment,” Watson said.
“We believe that the absence of these services may affect the overall well-being and development of local youth by limiting access to mentorship, educational support, and recreational activities that foster personal growth.”
She also said the club will help families find alternative afterschool programs.
Ashley said there is no real other affordable option for parents for after-school programming now that the Boys & Girls Club is leaving.
“It’s incredibly impactful to the community,” she said. “They have no backup plan for anything comparable.”
Angelina Hicks is a Voice of OC Tracy Wood Reporting Fellow. Contact her at ahicks@voiceofoc.org or on Twitter @angelinahicks13.
Hosam Elattar is a Voice of OC reporter and corps member with Report for America, a GroundTruth initiative. Contact him at helattar@voiceofoc.org or on Twitter @ElattarHosam.