SR-12-10-2013-3BCity Council Meeting: December 10, 2013
Agenda Item: -3-B
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 2012 -13.
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 2012 -13. The Child Care Linkage Fee revenues
for FY 2012 -13 total $215,986. Staff will continue to monitor development projects and
revenue collection of child care linkage fees.
Background
On Decelnlbe_. 5. =006 Council adopted ordinance Chapter 9.72 of the Santa Monica
Municipal Code (SMMC) to establish a child care linkage fee program. This fee is
intended to address the increased demand for childcare triggered by the development
of commercial projects adding floor area of at least 7,500 square feet or multi - family
residential projects.
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 final inspection date and prior to
the issuance of the Certificate of Occupancy. Fees are computed annually on July 1St,
increasing by a percentage equal to the Construction Cost Index as published by
Engineering News Record.
1
For FY 2012 -13, the fees were the following:
Project
Fee
Residential
$133,48 /dwelling unit
Office
$6.34 /square foot
Retail
$4.53 /square foot
Hotel
$3.17 /square foot
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 received
an annual update on Child Care Linkage Fee Program revenues with the first actual
receipts realized in FY 2011 -12 as reported to Council on Jw u, iv 2 — 2013.
Discussion
In FY 2012 -13, fees totaling $215,031 and interest totaling $955 were collected and
deposited into Child Care Special Revenue Account 4.365203. The revenues collected
in FY 2012 -13 were added to the prior year Special Revenue Account 4.365203
balance of $65,664. The ending balance as of June 30, 2013 for Special Revenue
Account 4.365203 totaled $281,650. 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 restricted to costs related to property acquisition,
development and construction of child care facilities within the City of Santa Monica in
addition to any administrative costs incurred by the City to manage the reserve account.
Eligible expenditures shall not include ongoing operating expenses and general
maintenance of child care facilities.
W
Staff is completing administrative guidelines to expend fees on eligible projects as set
forth in Chapter 9.72 of the SMMC. These guidelines will be structured to enable the
City to set the criteria and priorities for projects to meet current or emerging community
needs. To that end, the Early Childhood Education Center (ECEC), a partnership
project between the City and Santa Monica College to be built in the Santa Monica Civic
Center, is identified as a priority project for disbursement of funds. Staff will return to
Council with specific project recommendations for use of the Child Linkage Fee
revenues.
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 2012 -13.
Prepared by: Sergio Ramirez, Senior Administrative Analyst
Approved:
Karen Ginsbergf,
Director
Community and Cultural
W,
Forwarded to Council:
Rod Gould
City Manager