SR-01-22-2013-3FCity Council Meeting: January 22, 2013
Agenda Item: 3:F
To: Mayor and City Council
From: Karen Ginsberg, Director of Community and Cultural Services
Subject: Annual Report on the City's Child Care Linkage Program
Recommended Action
Staff recommends that the City Council receive the Child Care Linkage Program Annual
Report for Fiscal Year 2011 -12.
Executive Summary
In compliance with Santa Monica Municipal Code 9.72.090, this report transmits
information regarding the revenue received pursuant to the City's Child Care Linkage
Program for the reporting period of FY 2011 -12. The Child Linkage Fee revenues for
FY 2011 -12 total $65,664. Staff will continue to monitor development projects and
revenue collection of child care linkage fees.
Background
On December 5, 2006 Council adopted ordinance Chapter 9.72 of the Santa Monica
Municipal Code (SMMC) to establish a child care linkage fee program. This ensures
that developers of new residential and commercial projects mitigate the increased
demand for childcare generated by the new development.
Developers can satisfy the ordinance requirements by either paying a fee or by
agreeing to participate in the construction or establishment of one or more child care
facilities. Child care linkage fees shall be paid by the date final inspection is received
and prior to certificate of occupancy.
Following adoption of the ordinance the City established a Child Care Linkage Fee
Reserve Account for the collection of fees to be used to create new child care spaces.
The ordinance requires an annual report to City Council within 180 days after the last
day of each fiscal year. Since adoption of the ordinance in 2006, Council has been
provided an annual update in the City Manager's Biweekly Update to Council for Child
Care Linkage Fee Program revenues indicating that no fees had been collected. Fees
are computed annually on July 1St, increasing by a percentage equal to the Construction
Cost Index as published by Engineering News Record. For FY 2011 -12, fees were the
following:
Project
Fee
Residential
$130.48 /dwelling unit
Office
$6.20 /square foot
Retail
$4.42 /square foot
Hotel
$3.11 /square foot
Discussion .
In FY 2011 -12, fees totaling $65,027 and interest totaling $637 were collected and
deposited into Child Care Special Revenue Account 4.365203. The ending balance as
of June 30, 2012 for Special Revenue Account 4.365203 totaled $65,664. Since
construction activity has increased, it is anticipated that Child Care Linkage Fee
revenues will continue to increase over time. Staff will continue to closely monitor
proposed development projects and revenue collection.
Section 9.72.070 of the ordinance specifies that funds collected in the Child Care
Linkage Fee Reserve Account shall be expended on the construction and establishment
of child care facilities within the City of Santa Monica, exclusive of ongoing operating
expenses and general maintenance. Staff is preparing administrative guidelines to
expend fees collected on eligible projects as set forth in Chapter 9.72 of the SMMC.
The guidelines will be structured to enable the City to set the scope of service for
projects to meet current or emerging community needs. Staff will report back ,to Council
on public improvements for which these fees will be expended.
K
Financial Impacts & Budget Actions
There is no budget impact resulting from the approval of revenue report of the Child
Care Linkage Program for reporting period of FY 2011 -12.
Prepared by: Sergio Ramirez, Senior Administrative Analyst
Approved:,
Karen Ginsberg
Director, Community and Cultural
Services
3
Forwarded to Council:
Rod Gould
City Manager