SR-301-001 (6)
"
..
..
.,
b-/J
3t?/~oO/
JUN 1 3 1989
CjED:EVC
COUNCIL MEETING: June 13, 1989
Santa Monica, California
?Cl- co\
TO:
Mayor and City Council
FROM:
City staff
SUBJECT:
Recommendation to Authorize the City Manager to
Negotiate and Execute a Contract with Moore Iacofano
Goltsman to Prepare the Santa Monica Child Care
Master Plan
INTRODUCTION
This staff report requests that the City Council authorize the
City Manager to negotiate and execute a contract with Moore
Iacofano Goltsman (MIG) to prepare the Santa Monica Child Care
Master Plan.
BACKGROUND
In January of 1989, Council directed city staff to submit an
application for funding to the State Department of Education to
prepare a comprehensive child care master plan. In March, the
City was awarded a $25,000.00 grant from the state to help fund
the effort. An additional $35,000.00 Eatch is to be provided by
the city.
The Santa Monica Child Care Master Plan is a collaborative effort
between the city, the Santa Monica/Malibu Unified School
District, Santa Monica College, and Connections for Children.
The plan will be prepared in two phases. The first phase will
assess community needs for care and evaluate both
publ ic and
6-'N
- 1 -
JUN 1 3 1989
.,
--
..
-"
private resources available for the development and enhancement
of child care services in the city. Phase Two will define
implementation and financing measures, and then develop a
long-range plan that defines the goals, objectives and roles of
the public and private sectors.
In February, a request for proposal was issued for a technical
consultant to research and prepare the plan. Four proposals were
received responding to the RFP. A selection committee,
comprised of representatives from the college, school district,
Connections for Children and City staff reviewed the proposals
and interviewed the top candidate. Proposals were evaluated on
the firm's approach to the tasks, responsiveness to the RFP,
strength of the project team and the ability to work within the
City4s budget and timeline.
The committee unanimously selected the firm Moore Iacofano
Go1tsman (MIG) to prepare the Master Plan. The MIG proposal,
which includes sub-consultants from the Child Care Law Center and
Economic planning Systems, reflects the multi-disciplinary
approach necessary to deliver a comprehensive, action-oriented
Child Care Master Plan for the City of Santa Monica. It is
projected that the project will be completed no later than June
of 1990.
BUDGET/FINANCIAL IMPACT
All necessary budgetary actions were incl uded as a part of FY
1988-89 Mid Year Budget Review. Adequate appropriation
- 2 -
,
.
<fL{
.
I
--~
"" /
F'
~'1 -~.L 1-
,/ / f"
f, . -
-- -IF
/!" I r"'L../
I
C/ED:CNS:BS:mpccc
City Council Meeting 11/28/89
3t?/~rPtO/
o C 1 2 1989
~.. 9 E\ ."l~~
. '
? Cd - :J?!
Santa Monica, California
TO:
Mayor and city Council
FROM:
City Staff
SUBJECT:
Request to Approve Operating structure for Child Care
Center at Marine Park, Approve Classification
Specification and Adoption of Resolution Establishing
Salary for Child Care Program Coordinator, and
Authorize Changes to the City's Employee Dependent
Care Assistance Program
INTRODUCTION
This report outlines a general operating structure for the
proposed childcare center at Marine Park, requests authorization
to create a new position of Child Care Program Coordinator to
direct the Center, and proposes changes to the City's Dependent
Care Assistance Program which provides childcare subsidies to
lower-income employees.
BACKGROUND
In October of 1988, the City Council approved the use of a
portion of Marine Park as the site for a 3,000 square foot child
care center for children of city employees as well as
neighborhood residents and other families in the community. The
approval of this site allowed City staff to begin implementation
of the final phase of its comprehensive Employee Child Care
Benefit Program which provides for up to 53 new child care slots
to serve a mix of infants, toddlers and pre-SChool children.
,\-C
- 1 -
N&t' e C) rost
DEe .1. 2 1989
.
.
Since that time, city staff have completed the following planning
activities for the center:
(l) Meetings have been held with the Recreation and Parks
Commission to outline the operating structure and renovation
plans for the child care center.
(2) A Request for Proposal (RFP) was issued to solicit proposals
from potential operators of the center. The RFP was sent to over
50 providers in Santa Monica and throughout the state. Four
proposals were received -- three from non-profit providers and
one from a private firm.
(3) A proposal review committee was created comprised of
representatives from the City staff, Connections for Children,
Santa Monica Community College Child Development Department, and
two directors of child care centers. The committee reviewed
proposals, relevant supplementary information, and made site
visits as necessary.
(4) Preliminary planning for renovation of the facility was
conducted by the City's Engineering Division in consultation with
an architectural firm specializing in child care center design
and with a local child care center director with expertise in
infant care and state licensing requirements. Construction
documents have been completed and Council will be asked to award
a construction contract at the December 12th Council meeting.
Construction is projected to begin in mid-January of 1990 and to
be completed in July of 1990. The Center will open for
operations in September of that year.
..
- 2 -
.
.
(5) City staff have conducted extensive research on the necessary
steps and variables involved in setting up a new child care
center. These activities have included visiting a range of
centers, including two new centers supported by municipalities,
and interviews with child care professionals in order to fully
develop the operating plan for the center.
(6) A review has been made of the employee childcare subsidy
portion of the city's Dependent Care Assistance Program (DeAP) to
assess the current level of subsidies in light of the Marine Park
program and current market rates for other child care programs as
well.
DISCUSSION
What appeared to be a relatively straight forward task
identifying an operator for the center -- turned out to require a
great deal of analysis and deliberation. Of the four applicants,
two were identified for further review and interviews. The
review committee based its analysis on a variety of factors
including experience, cost effectiveness, curriculum philosophy
and development, staffing and administrative capacity. As a
result, the committee concluded that while the two finalists
exhibited strengths in a range of areas, the match between the
City's goals and the proposals submitted were not strong enough
to develop a recommendation to select an operator from this group
of applicants.
As a result, an alternative approach is being presented for
Council approval - that of operating the Center within the City's
- 3 -
.
.
Department of Cultural and Recreation Services, initially
directly under the perview of the Department's Administrative
Division. Center operations will be directed onsite by a newly
created position -- Child Care Programs Coordinator.
This al ternati ve is recommended as it is evident from the low
response to the three RFP's issued by the city for various child
care programs over the past several years, that there is a
critical scarcity of experienced child care operators available
to take on another site and also able to meet the specific goals
outlined for the City's proposed center. Given the high level of
professional expertise in the Santa Monica child development
community (and the expressed commitment by these child care
professionals to offer assistance with the City's center), and
the City's program management expertise, it was decided that the
alternative to run the Center directly was the most feasible.
Consequently, the following operating structure was developed and
sets forth the proposed "next steps" for implementing the
center.
Operating structure
(1) Center Operator: The center will be operated by the City'S
Department of Cultural and Recreation Services. In addition, an
Employee Childcare Advisory Commi ttee is currently being
reactivated with representatives from the city's employee
bargaining units to further provide input during the design
stages to occur in the next nine months. Once the center is
- 4 -
.
.
operational, a parent resource committee will be developed so
that the center refelcts the needs and views of parents.
2) Center Goals: In approving the initial concept of the center,
the city Council asked for the creation of a program that
stressed both quality and affordability. While certainly not
mutually exclusive, the balancing of these two important
variables is an extremely difficult challenge one that is
currently being debated by child care professionals both locally
and nationally. The quality of services provided are very much
impacted by the experience and training of staff (and the salary
levels needed to recruit and retain this staff), the ratio of
teachers to children, and classroom size. Affordability involves
a fee schedule that does not prohibit access by lower income
famil ies . Thus pressure is put on center administrators to
either keep staffing costs lower or seek subsidies for operations
from other sources. Given the Council direction to address both
of these issues, city staff have worked closely with childcare
professionals to prioritize these needs and to develop a program
that provides a quality program for the children and their
parents yet also addresses the critical issue of affordability.
(3) Center Staffing: The key to the successful operation of the
center will be the hiring of the Child Care Program Coordinator
who will be responsible for startup and operation of the center.
It will be the Coordinator's responsibility to make the center
operational, obtain licensing, hire and train staff and work with
other city staff on the center's marketing program. There
- 5 -
.
.
appears to be burgeoning interest in the child care communi ty
regarding this proposed position which provides evidence that the
center will be able to recrui t an able and conuni tted
professional. It is projected that the Coordinator will be hired
early in 1990. The classification specification for this
posi tion was approved by the Personnel Board at its regular
meeting of September 27, 1989. A salary resolution establishing
the salary rate for this new classfication as ~ell as the
Classification specification are included as Attachments I and II
of this report.
In addition to the Program Coordinator, the administrative
support staff (a half-time Staff Assistant II) will be hired one
month before Center operations begin and the teaching staff will
start two weeks prior to opening for training and inservice.
Proposed salaries for teaching staff range from $8. OO/hour for
aides and an average of $lO. 83/hour for teachers (including a
lead teacher/assistant coordinator required for the infant care
component). This salary structure provides for somewhat higher
hourly rates than the average in the Santa Monica area (ranging
from 20 to 25% depending upon the classification). This decision
was reached after analyzing the severe negative impacts that high
staff turnover (oftentimes caused by the notoriously low salaries
of the childcare field) would have on center operations. A
recently completed national study by the Child Care Employee
Project" "The National Childcare Staffing study, II indicated an
average teaching staff turnover rate of 41% in 1988 as compared
to a rate of 15% in 1977. Critical to the success of any center
- 6 -
.
.
is the training and commitment of its teachers -- thus the salary
schedule for the Marine Park center, while still low compared to
other educational professionals, addresses this need through
salary enhancements.
(4) Center Curriculum: The center's philosophy and curriculum
will reflect a child-centered, developmental program that
provides children with a range of choices based on age and the
uniqueness of each child. While a general curriculum will be
developed prior to center operations, over time the curriculum
will further "evolve" based on the preferences of the children
and parents as well as the innovation of the teaching staff.
Flexibility and sensitiv1ty to the range of parental preferences
will be incorporated.
(5) Age Groups and Staff/Child Ratios: As approved earlier by
the Council, the center will serve a mix of age groups including:
12 infants (under 24 months), 21 toddlers (21 months to 3 l/2
years) and 20 pre-schoolers (3 l/2 years to kindergarten).
Factors used in arriving at this mix included the current space
constraints at the Marine Park facility, the maximum number of
children allowable in each space, the appropriate class sizes,
the need to address the variability in development among children
of the same age, and the need to ensure adequate spaces in the
next classroom to each enrolled child as they get older.
Few centers offer infant programs, in particular, and therefore
the design of the infant area and the development of staffing and
operating procedures for this group will be especially important.
- 7 -
.
.
A critical issue in implementing the program is the number of
teaching staff to children in each classroom. The proposed
ratios (teaching staff: children) are as follows: infants (l:3),
toddlers (l:7), and preschoolers (1:10). The ratios for infants
and toddlers are consistent with those standards established by
the state of California for state-subsidized programs as well as
those of the National Association for the Education of Young
Children (NAEYC). The preschool ratio approaches these standards
and exceeds those minimal state requirements required for the
licensing of non-state supported programs.
(6) Affordability In general, affordability is addressed
through setting the general monthly parent fees at or below
market rates for this area. Pending a final determination of the
level of subsidy available for the program, monthly fees have
been initially proposed at approximately $600 for infants, $440
for toddlers, and $400 for preschoolers.
In addition, support to low-income community residents is
proposed through the use of a sliding-scale based on the family's
income and number of children. The schedule will be consistent
with the City's Childcare Scholarship Program for community
residents funded through Connections for Children. As budgeted,
this support, through reduced fees, is equivalent to support for
nine families at a 50% subsidy level (or more or less depending
upon the income level of the interested families).
Affordability for lower-income City employees will be addressed
through the City's Employee Dependent Care Assistance Program
- 8 -
.
.
(D-CAP) . Currently, the program provides monthly subsidies of
$100 for any qualifying employees whose annual household income
is less than $45,000. In light of the opening of the Marine Park
center and also given the availability of more detailed data on
child care needs and household income for the employee workforce
as a part of the recently-conducted Traffic Management Program
survey, the following changes to the employee subsidy program are
proposed to ensure maximum participation from those in need of
financial assistance to obtain quality childcare: (a) increase
the annual household income cap from $45,000 to $50,000, (b)
provide the subsidy for each qualifying child in the family as
opposed to a flat subsidy for a family regardless of the number
of children in eligible care, (c) provide different levels of
subsidy for infant, preschool and school-aged care based on an
analysis of the actual market rate cost of care for each
category, and (d) provide these subsidies on a sliding scale
based on the level of household income for each qualifying
family. The schedule (included as Attachment III) provides for a
maximum per child of a $200/month and a minimum of $lOO/month --
the current level.
These changes are proposed in order to address current equity
issues within the existing structure (the same amount of subsidy
is received regardless of the number of children in care, the
type of care, or the specific income level of a qualifying
family) and in order to ensure affordability of care, including
but not limited to the Marine Park center.
FISCAL/BUDGETARY IMPACT
- 9 -
.
.
Included in the initial City Employee Child Care Benefit Program
approved by the council several years ago was the assumption
that both start-up and operating subsidies would be necessary for
the expansion of the supply of childcare for City employees and
residents. As stated previously, the specific amount of start-up
and operating subsidy necessary is highly dependent on such
factors as staff salaries and fringe benefits, staff/child
ratios, classroom sizes and special programs such as infant care
and financial support for low-income families. The amount of
revenues generated to cover these costs is primarily dependent on
parent fees as well as available subsidies. Attachment IV
provides the projected budgets for the center. These include an
initial start-up budget for FY 1989-90 (Attachment IVA), a
general l2-month operating budget with revenue projections
(Attachment IVB), and a FY 1990 lO-month operating budget with
revenue projections (Attachment IVC).
To summarize the budget projections, start up costs (including
furnishings, equipment, and staff time prior to opening) will
total $64,9l7 in FY 1989-90 and $27,696 in FY 1990-9l for a total
of $92,613. Appropriations needed for FY 1989-90 include:
$14,920 in account number 01-400-50l-39001-l100-xxxxx for salary
costs related to the new Child Care Program Coordinator, and
$44,775 in account number 01-400-501-39001-8809-00000 for
equipment and furnishings .
On an annual basis, the estimated operating budget is $437,891
with estimated parent-generated revenues ranging from $254,196 to
$306,660 depending on a variety of factors including vacancy
- 10 -
.
.
rates, number of part-time spaces available at higher hourly
rates, and the number of low-income families utilizing the center
on a sliding fee basis. The annual operating subsidy could range
from $l3l,231 to $183,695 depending upon these factors. The
percentage of the operating budget which will have to be
subsidized, therefore, ranges from 30% to 42% consistent with the
level of SUbsidy for many employer-based programs (for example,
UCLA's Childcare center).
The FY 1990-91 ten-month operating budget, beginning in September
of 1990, is projected to be $354,355.Because enrollment will be
phased in over several months to ensure a successful start-up
period, revenues will be somewhat decreased over the annual
projection. Revenues from parent and registration fees for that
year are estimated to be $197,431 (minimum revenues). Thus an
operating subsidy of $156,924 will be required during the first
year of partial operation.
As mentioned previously, the operating plan and budgets are based
on the desire to contribute to the expansion of both high quality
and affordable childcare, including much-needed infant care. An
analysis of the required annual operating SUbsidy indicates that
approximately 53% of the subsidy is attributable to the goal of
providing quality care (33% to salary and fringe benefit
enhancements and 20% to adequate staff/child ratios), 20% to the
inclusion of infant care, and 27% to address affordability
through reduced fees. Final decisions regarding the level of
subsidy within the range identified will be proposed in the
context of the FY 1990-9l budget.
- 11 -
.
.
The impact of the changes in the City's D-CAP program is
difficult to project. However, based on an analysis of workforce
composition, it is projected that these changes will not result
in any substantial cost increases -- a 25% increase would result
in a $9,000 overall increase to the D-CAP program.
Adequate
funds are appropriated in the FY 1989-90 budget in account number
01-700-274-00000-ll97-00000 to cover the projected increase.
RECOMMENDATIONS
City staff recommends that the city Council: (l) approve the
initial operating structure for a child care center at Marine
Park; (2) approve the new classification specification for Child
Care Program Coordinator and adopt the attached salary resolution
establishing salary rates for this classification; (3) approve
changes in the D-CAP Program as specified; and (4) appropriate
start-up funds for staffing and furnishing and equipment needed
in FY 1989-90 as indicated in this report.
Prepared by: Barbara stinchfield, community Development Manager
Department of Community and Economic Development
Kate Spellman, Senior Management Analyst
City Manager's Office
- 12 -
.
.
Attachment I
RESOLUTION NO.
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA ADOPTING A SALARY RATE
FOR THE CLASSIFICATION OF
CHILD CARE PROGRAM COORDINATOR
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES
RESOLVE AS FOLLOWS:
SECTION 1: The following monthly salary level is
hereby established for the indicated permanent classification,
effective November 29, 1989:
CHILD CARE PROGRAM
COORDINATOR
$3,730/Month E-Step
($3,991/Month with PERS)
SECTION 2: The City Clerk shall certify to the
adoption of this Resolution, and thenceforth and thereafter the
same shall be in full force and effect.
APPROVED AS TO FORM:
~~~~~
ROBERT M. MYERS
City Attorney
- 1 -
.
.
Attachment II
CITY OF SANTA MONICA
CHILD CARE PROGRAM COORDINATOR
DEFINITION: Under administrative direction, manages the City's
Child Care Program. Responsibilities include program develop-
ment, supervision, budget, enrollment and facilities management.
TYPICAL DUTIES:
Plans, organizes, coordinates, implements and supervises
child care programs and activities at City-operated child care
facilities.
Serves as director of Marine Park site of City's Child Care
Program.
Oversees the care, safety and well-being of all children
participating in City-operated child care programs.
Encourages parental involvement and education, plans paren-
tal educational programs, and serves as a resource in parenting.
Oversees semi-annual parent conferencing.
Establishes and maintains public relations with public and
private groups.
Represents city Child Care Program at City-wide meetings,
and to community groups and professional organizations.
Provides information and referral services for citizens
regarding child care.
Assists in the preparation and management of the Child Care
Program budget.
Develops and administers the receipt of revenues, fees, and
accounts receivable.
Prepares grant applications, monitors contracts for com-
pliance, and supervises their activities.
Remains abreast of local, state and Federal codes and reg-
ulations governing the operation of child care facilities.
Makes recommendations to Director of Cultural and Recreation
services on Child Care Program policies.
Hires, trains, schedules, supervises, disciplines and evalu-
ates child care staff employees.
Plans and coordinates in-service training and continuing
education programs for staff.
Prepares and maintains records and reports.
Requisitions supplies and equipment.
Performs other related duties as assigned.
BASIC QUALIFICATIONS:
MINIMUM STANDARDS: Applicants must be able to demonstrate
the following:
Knowledge of: principles of infant and child development;
principles and practices of public administration, grants manage-
ment, finance, and budget administration; supervision; staff
scheduling: curriculum and program development; state child care
licensing procedures; and available community resources.
.
.
Ability to: plan, develop, organize, implement and evaluate
child care programs and activities; develop and manage daily
operational procedures; prepare and maintain records and reports;
develop and administer the billing and collection of revenue j
promote, establish and maintain effective working relationships
with community organization representatives, funding source
representatives, and members of the general public; communicate
effectively orally and in writing with members of the public and
staff; hire, train, organize, discipline and evaluate employees;
create and maintain a staffing schedule that ensures required
staffing ratiosj and obtain Red Cross First Aid and Cardiopulmo-
nary Resuscitation certificates within six months of appointment.
License: Possession of a valid driver's license.
DESIRABLE TRAINING AND EXPERIENCE:
Graduation from an accredited college or university with a
bachelor's degree in Child Development, Early Childhood Education
or a closely related field.
Three years of progressively responsible experience in the
management of a licensed child care center, including two years
of supervisory experience.
California Children's Center Supervisory Permit and addi-
tional training in child care center administration, curriculum
development, and supervision are highly desirable.
SUPERVISION RECEIVED:
Works under administrative supervision of Director of Cul-
tural and Recreation Services or designee, who outlines work and
periodically assesses performance.
SUPERVISION EXERCISED:
Exercises technical supervision over professional and cleri-
cal employees in the Child Care Program, outlining work in prog-
ress and frequently assessing performance.
mkk89037/1-2
.
.
Attachment III
PROPOSED SUBSIDY SCHEDULE
CITY DEPENDENT CARE ASSISTANCE PROGRAH
Before/After-
Income Full-Time Care School Care
Infants Other*
$30,000 or less $200 $l48 $100
$30,00l-$35,OOO $l75 $l36 $ 90
$35,00l-$40,OOO $l50 $l24 $ 80
$40,001-$45,000 $125 $112 $ 72
$45,001-$50,000 $100 $100 $ 63
*Includes full-time preschool care as well as summer and vacation
care for school-age children.
Note: Employees currently on the program for part-time care will
continue to receive the maximum $lOO/month subsidy regardless of
income level. Newly enrolled employees will be reimbursed based
on the new proposed schedule.
- 1 -
.
MARINE PARK CHILDCARE CENTER
.
Attachment IVA
INITIAL STARTUP BUDGET
staffing
Program Coordinator - salary
benefits
staff Asst. II (.5) - salary
benefits
Teachers (2 weeks training)
Training Consultant
Equipment and Furnishings
Office Equipment
Office Furniture/Applicance
Indoor Play Equipment/Furniture
Outdoor Play Equipment
Telephone Installation
Supplies
Publicity
TOTAL START UP
- 1 -
FY 89-90
Jan.- June
FY 90-91
July-Aug.
l4,920
5,222
5,968
2,088
879
35l
6,760
l,OOO
$ l7,046
$ 20,142
$ 8,175
10,600
25,000
$ 6,000
650
4,000
l,OOO
$ 44,775 $ lO,650
$ 64,917
$ 27,696
$92,613
.
.
.
Attachment IVB
MARINE PARK CHILDCARE CENTER - 12 MONTH OPERATING BUDGET
EXPENSES:
Staffing
Program Coordinator
Staff Assistant II (.5 FTE)
Lead Teacher
Teachers (5.0 FTE)
Aides (7.0 FTE)
Fringe Benefits
Substitutes
Overtime
Total Staffing
Operating
Telephone
Computer/Telephone Lines
Office Supplies
Curriculum Supplies
Staff Training
Parent Education
Nutrition (Snacks)
Hygenic Supplies
Prof. Memberships and publ.
Equipment Replacement
TOTAL OPERATING BUDGET (12 MONTHS)
REVENUES:
Parent Fees
Part-Time Fees
Registration Fees
Vacancy Factor 5%
Sliding Scale Fee Reduction
$35,808
10,554
27,036
l09,602
ll6,424
$299,424
92,671
13,872
2,800
$408,767
$ 1,440
384
2,000
5,000
4,000
1,000
8,500
5,000
300
1,500
29,124
$437,891
$293,280
11,880
1,500
(l4,664)
(25,920)
Maximimum Revenues (including part-time fee rates,
100% capacity, and no sliding scale fee reductions)
- 1 -
$306,660
f
.
.
Minimum Revenues (including 5% vacancy factor, no
part-time fees, and maximum use of sliding scale
fee reductions)
PROJECTED OPERATING SUBSIDY:
Based on maximum revenue projections
Based on minimum revenue projections
- 2 -
$254,196
($13l,231)
($183,695)
.
.
Attachment IVC
MARINE PARK CHILDCARE CENTER - TEN MONTH OPERATING BUDGET
FY 1990-91
EXPENSES:
staffing
Program Coordinator
.5 staff Asst. II
Lead Teacher
5 Teachers
7 Aides
Fringe Benefits
Substitutes
Operating Expenses
TOTAL EXPENSES (lO months)
REVENUES:
Parent Fees
Registration Fees
Vacancy 5%
Sliding Scale Fee Reductions
TOTAL REVENUES (10 months)
PROJECTED OPERATING SUBSIDY
$29,840
8,795
22,530
91,310
97,020
Based on minimum revenue projections and
phased enrollment
- 1 -
$249,495
77,220
3,468
24,172
$354,355
$228,980
1,500
(ll,449)
(21,600)
$197,431
($l56,924)
.
.
,
CITY ~F SANTA MONICA
INTER-DEPARTMENT MEMORANDUM
DATE:
December 8, 1989
TO:
Mayor and Councilmembers
FROM:
city Clerk
SUBJECT:
INCORRECT STAFF REPORT: ITEM ll-C
The Item 11-C contained in this envelope should be inserted in
your packet. The Item 11-C which you received on Wednesday,
December 6, 1989, is incorrect and should be discarded.
We are sorry for any inconvenience this may have caused you.