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HomeMy WebLinkAboutCS Child Care Program Fee Increasef SAN RAFAEL THE CITY WITH A MISSION Agenda Item No: 6.c Meeting Date: January 17, 2017 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Community Services Prepared by: Carlene McCart, Director City Manager Approval: TOPIC: Child Care Program Fee Increase SUBJECT: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING AN AMENDMENT OF THE MASTER FEE SCHEDULE FOR A 5% FEE INCREASE FOR CHILD CARE PROGRAM SERVICES EFFECTIVE JULY 1, 2017 EXECUTIVE SUMMARY: The Child Care Program, under the Community Services Department is composed of two services: School Age Care and Parkside Preschool, each supported by user fees established in the City's Master Fee Schedule. Staff recommends that the Master Fee Schedule be amended to provide for a 5% increase in fees, effective July 1, 2017, to cover increased staffing and operational costs of the seven Child Care Centers and Parkside Preschool and Capital Reserve Fund expenses RECOMMENDATION: Approve Resolution BACKGROUND: The City of San Rafael initiated Preschool and Child Care programming in 1963. An estimated 43,000 children have been served in the 42 years since the program opened. Today, the City of San Rafael Child Care Program: ■ Operates on 8 sites in the San Rafael and Dixie School Districts at Coleman Elementary, Dixie Elementary, Glenwood Elementary, Mary Silvera Elementary, Vallecito Elementary, Venetia Valley Elementary, Parkside Children's Center at Albert Park, Pickleweed Children's Center at Pickleweed Park ■ Manages 7 School Age Child Care Centers and 2 Preschools ■ Serves 1,234 families ■ Cares for 1,477 children FOR CITY CLERK ONLY File No.: 9-3-65 X 9-10-2 Council Meeting: 01/17/2017 Disposition: Resolution 14266 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 ■ Provides Preschool for 68 low income children, and 50 full tuition children ■ Employs 33 permanent full time and 15 part time/seasonal staff ANALYSIS: The proposed fee increases apply to Child Care services and the Parkside Preschool. The Pickleweed Preschool is funded through State and non-profit sources, which mandate that no user fees be assessed. Fees are assessed for student registration processing and program attendance. All participants are charged annual registration fees. Families have options to register for full or part time attendance. In addition the fee schedule reflects the varied school and holiday calendars. The proposed fee increases were developed to respond to the following criteria: 1. Operating Expense — The Budgeted expense for the Child Care Program in Fiscal Year 2016-2017 is $3,915,628 Increased employee costs due to medical, retirement and contract negotiations will be estimated and included in the operating expenses for Fiscal Year 2017-2018. 2. Estimated revenue for FY 2016-2017 is $3,886,660 3. Capital Project Reserve Fund Maintenance — The City owns the Parkside Children's Center and seven modular classroom buildings, along with all furnishings, and pays for upkeep, renovations and major repairs. The Reserve goal of 10% of the annual Child Care Program operating budget supports the major repair and replacement of these facilities along with furniture and appliance replacement. The Reserve Fund goal is $391,562, which allows for replacement of one of the modular classrooms every two years (lifespan of 10 years), and projects such as interior/exterior painting, playground equipment replacement, furniture and appliance replacement. Currently there is $1,103,856 in the Child Care Reserve Fund. $50,000 is budgeted for the interior painting of Parkside Children's Center in February of this year. An Estimated $600,000 will be spent on modular classroom replacement in FY 2017-18. An estimated $830,899 will remain in the Reserve fund at the end of FY2017-18. The fee increase is needed in part to cover anticipated capital expenses through 2021 as outlined in Table 1 Table 1 City of San Rafael Fixed Asset Cl 3 Estimates 2017-2021 Children's Center Project Estimate FY Parkside Interior Paint $ 50,000 16/17 Dixie Classroom Replacement $300,000 17/18 Mary Silvera Classroom Replacement $300,000 17/18 Coleman/Vallecito Exterior Paint $ 25,000 16/17 Pickleweed Roof Repair $ 7,500 18/19 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paae: 3 Venetia Valley Classroom Replacement Parkside Exterior Paint Estimated Total $300,000 19/20 $ 35,000 20/21 $1,017,500 Estimated Enrollment - For the 2017-18 Academic Year enrollment will continue at capacity at six of the seven Child Care Centers, 1,450 students. The increase will be publicized starting with enrollment in January 2017 for the following school year, and placed into effect on July 1, 2017 at the start of the 2017-2018 Fiscal Year. FISCAL IMPACT: The following depicts the current and proposed fees, comparisons with similar services, costs and revenue projections. Table 2 City of San Rafael School Age Full Day After School Current Rates Type Current Proposed % Increase Annual Registration $40.00/child $42.00/child 5% $55.00/family $58.00/family 5% Full Day Service $50.50 $53.00 5% Recreation $39.50 $41.50 5% (Full)Day Increase Kindergarten Full $32.50 $34.00 5% Day 2017 Kindergarten Part $13.50 $15.00 5% Day School Minimum $32.50 $34.00 5% Table 3 School Age Full Day After School Current Rate Comparison City Rate per San Rafael San Rafael Proposed San day +/- Increase Rafael 2017 Proposed Increase 2017 City of $8* $50.50 +84% -0- 5% Emeryville* City of $55 $50.50 -9% 5% 5% Larkspur City of $50 $50.50 same -0- 5% Novato City of $40 $50.50 +20.8% -0- 5% Pacifica* SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4 Town of $52 $50.50 -3% 3% 5% San Anselmo City of San $52 $50.50 -3% 2% 5% Mateo *State/City subsidized Table 4 Parkside Preschool Rates Days Time Fee per Month 5 Days 7:30 - 6:30 $1,325 3 Days 7:30 — 6:30 $ 975 2 Days 7:30 — 6:30 $ 630 Table 5 Preschool Rate Comparison City Rate per San Rafael San Rafael Proposed month +/_ Increase in $1,325 +8% 3% proposed Emeryville* 2017 City of $1,142 $1,325 +14 3% proposed Belmont City of $1,220 $1,325 +8% 3% proposed Emeryville* City of $ 880 $1,325 +33% -0- Pacifica* Town of San $1,049 $1,325 +21%% 3% Anselmo *State/City subsidized Table 6 City of San Rafael Fee Increase History Year % Increase 2012/2013 4.3% 2013/2014 none 2014/2015 5% 2015/2016 none 2016/2017 none 20176/2018 Propose 5% effective July 1, 2017 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5 The total revenues that will be collected with the proposed increase will generate $194,300 in additional revenue for total revenue of $4,080,960, adequate to address the anticipated rising costs of personnel, employee benefits, materials, supplies, maintenance and capital improvements into the foreseeable future. Rate comparisons are difficult to accurately estimate due to different program models and subsidy policies in similar Bay Area jurisdictions. With the proposed increase, San Rafael will meet its anticipated expenses and remain within a reasonable market range for fees in the most comparable programs. On December 8, 2016 the City Council Finance Committee reviewed the recommendation with the Assistant City Manager, Finance Director, Community Services Director and Child Care Senior Supervisor and recommended the proposal for fee increase go forward for City Council consideration. OPTIONS: The City Council has the following options to consider on this matter: 1. Staff's recommended action 2. Adopt resolution with modifications. 3. Direct staff to return with more information. 4. Reject recommended action RECOMMENDED ACTION: Approve Resolution of the City Council of the City of San Rafael Approving an amendment of the Master Fee Schedule to establish a 5% Fee increase for Child Care Program services effective July 1, 2017. ATTACHMENTS: Resolution Exhibit A School Age Child Care and Parkside Preschool Program Fee Schedules RESOLUTION NO. 14266 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING AN AMENDMENT OF THE MASTER FEE SCHEDULE FOR A 5% FEE INCREASE FOR CHILD CARE PROGRAM SERVICES EFFECTIVE JULY 1, 2017 WHEREAS, the City of San Rafael initiated preschool and child care programming in 1963; and WHEREAS, the City manages seven School Age Child Care Centers and 2 Preschools; and WHEREAS, 1,234 families, and 1,477 children are served each year in the Child Care and Preschool Programs; and WHEREAS, the Programs are located at seven sites in the San Rafael City Schools and Dixie School Districts; and WHEREAS, the Child Care Programs are financially supported by participant fees, budgeted to collect $3,886,660 in fee revenue to cover $3,915,628 in expense for FY 2016-2017; and WHEREAS, fees are based on direct Program costs; and WHEREAS, fees for Child Care Program services have not increased since 2014; and WHEREAS, costs for personnel, materials, services, facility management and capital replacement are projected to increase in the next fiscal year; and WHEREAS, a 5% increase in fees is necessary to meet anticipated costs; and WHEREAS, the City will implement the fee increase for services rendered starting July 1, 2017. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Rafael hereby approves an amendment of the Master Fee Schedule for a fee increase for child care program services effective July 1, 2017, as set forth in Exhibit A hereto. I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City held on Tuesday, the 17th day of January, 2017, by the following vote, to wit: AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBER: None ESTHER C. BEIRNE, CITY CLERK Exhibit A School Age Child Care and Parkside Preschool Program Fee Schedules Effective July 1, 2017 School Age Child Care Program Fee Schedule Full Day Program $53.00 $55.50 7:30 a.m. — 6:30 p.m. Recreation Day $41.50 $43.50 10:00 a.m. -4:00 p.m. Kindergarten Full Day $34.00 $35.50 1:40 p.m. — 6:30 p.m. Kindergarten Part Day $15.00 $15.75 1:40 p.m. — 3:00 p.m. School Minimum Day $34.00 $35.50 1:40 p.m. — 6:30 p.m. School Conference Week $44.00 $49.50 12:05 p.m. — 6:30 p.m. Parkside Preschool Program Fee Schedule Attendance Category Pre -Registration Only Annual Registration $42.00/child; $58.00/family Full Day Program, $1,365/month 5 Days per Week, 7:30 a.m-6:30 p.m. Full Day Program, $1,025/month 3 Days per Week, 7:30 a.m. — 6:30 p.m. Full Day Program, $ 661.00/month 2 Days per Week, 7:30 a.m. — 6:30 p.m. ROUTING SLIP / APPROVAL FORM INSTRUCTIONS: Use this cover sheet with each submittal of a staff report before approval by the City Council. Save staff report (including this cover sheet) along with all related attachments in the Team Drive (T:) --> CITY COUNCIL AGENDA ITEMS 4 AGENDA ITEM APPROVAL PROCESS 4 [DEPT - AGENDA TOPIC] Agenda Item # Date of Meeting: 1/17/2016 From: Carlene McCart Department: Community Services Date: 12/9/2016 Topic: Increase in fee schedule for Child Care Program Services Subject: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING AN AMENDMENT OF THE MASTER FEE SCHEDULE FOR A 5% FEE INCREASE FOR CHILD CARE PROGRAM SERVICES EFFECTIVE JULY 1, 2017 Type: ® Resolution ❑ Ordinance ❑ Professional Services Agreement ❑ Other: Staff Report APPROVALS ® Finance Director Remarks: approved 12/30/16 ® City Attorney Remarks: Approved with recommended changes and comments. ETD 1/3/17 ® Author, review and accept City Attorney / Finance changes Remarks: ® City Manager Remarks: Esther Beirne From: Carlene McCart Sent: Friday, January 13, 2017 1:47 PM To: Esther Beirne Subject: FW: Child Care Program Fee Increase For the packet. From: Mary Sackett Sent: Friday, January 13, 2017 1:19 PM To: Carlene McCart Subject: Child Care Program Fee Increase Ms. McCart: Please share this email with the City Council. I am a parent with children in the childcare center at Vallecito elementary school. I am not opposed to the fee increase. Ideally it would reflect that the staff will receive a pay increase, it appears that the benefit costs are increasing but does not reflect whether the staff will be paid more. On this topic, the City Council should be aware, if they are not, of a impact of capacity enrollment at Vallecito Elementary School. The full program, and turning families away has a huge impact on our school and our community. I ask the City Council look for options for Vallecito students, whether that is transporting the students by bus to another location or increasing enrollment. The hardship is insurmountable and extreme, and really impacts the families. A few stories: One kindergarten family got in line on the day of registration, only to learn there were no spots. Both of his parents work, and school lets out around fpm. The parents could not find any other option for their child. As a result, they bought a car for a disabled aunt who lives in Sacramento. The aunt drives down on Monday, and lives with the family through Thursday in order to provide care for the child after school before the parents are able to work. Two other children have a mother who took a teaching position in San Rafael City Schools. However, the family was not in childcare previously, and thus could not be given a spot when school started this year (despite requesting a spot at registration time). The family has gone through a number of options, JCC, nannies, parent days off, still no spot at Vallecito. I am sure there are many other stories. This is a real problem. It effects the families, it effects the students, it effects our schools, it effects the environment, it keeps us from having qualified teachers who live in the district, and it effects San Rafael. I ask that you find a solution for the Vallecito families by creating an additional program (off site with transportation) or additional spaces. Mary Sackett Case No. 44328 Name Jeff Swenerton Department San Rafael City Council Address San Rafael, CA Created/Received 1/17/2017, 3:21pm Comments in Favor of Child Care Program Fee Increase (Agenda Item No: 6.c, January 17, 2017) As a parent of two children at Parkside Children's Center at Albert Park and a resident of San Rafael, I would like to strongly recommend you approve the resolution to increase fees in the San Rafael Child Care Program. These programs are indispensable to working families in the county and the proposed fee increase is a reasonable and necessary adjustment to allow these programs to continue to provide excellent high-quality childcare. As the parent of children who have attended Parkside for both preschool and after care since 2013 (and will continue to attend through 2025), 1 can tell you that the programs are engaging, thoughtful, and instructive; the staff is dedicated and professional, and the facility is well designed and spotless (though perhaps needing a coat of paint). In a county that otherwise lacks many programs for working families, the Child Care Program has allowed us to afford to live in Marin and participate in the community, while ensuring that our children are safe, engaged, and learning. Please vote to increase the fees in the Child Care Program to allow facilities like Parkside to meet their anticipated costs and continue to provide excellent care to Marin families.