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Home My WebLink AboutLR Proposed Update to Master Fee Schedule - Childcare____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: July 15, 2024 Disposition: Resolution 15327 Agenda Item No: 5.c Meeting Date: July 15, 2024 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Library and Recreation Prepared by: Paul Navazio, Finance Director Craig Veramay, Assistant Library and Recreation Director City Manager Approval: ___________ TOPIC: PROPOSED UPDATE TO MASTER FEE SCHEDULE - CHILDCARE SUBJECT: RESOLUTION AUTHORIZING AN UPDATE TO THE MASTER FEE SCHEDULE TO ESTABLISH CHILDCARE PROGRAM RATES FOR THE 2024-25 SCHOOL YEAR RECOMMENDATION: Adopt the resolution authorizing an update to the Master Fee Schedule to establish Childcare Program rates for the 2024-25 school year. BACKGROUND: The City’s Library and Recreation Department provides Childcare Program services, which are, in general, fully cost-covered through fees paid by program participants. The Childcare Program also provides subsidized services supported by State Childcare Grant funds allocated to the City for this purpose. The City Council’s policy regarding the City’s childcare program is for the program to be fully self- sustaining financially, such that the program revenues are adequate to cover all programmatic expenditures. In December 2022, following a comprehensive rate study, the City Council adopted Resolution No. 15178 authorizing updates to its Master Fee Schedule to include fees charged for Childcare Program services to become effective in August 2023 for the 2023-24 school year. Furthermore, the adopted resolution authorizes annual fee increases, based on annual increases in the San Francisco-Oakland-Hayward All Urban Consumers’ Price Index (CPI-U), not to exceed 3.0% per year. ANALYSIS: The February-to-February increase in the referenced CPI index was 2.37%. This CPI-based adjustment is insufficient to maintain full-cost recovery for the City’s Childcare Program. Staff recommend that the City Council approve an increase to the Childcare Program fees for the 2024-25 school year by 9.0%, rounded up to the nearest whole dollar, as shown in Attachment 1 (Proposed Fiscal Year 2024-25 Childcare Program Fee Comparison). This level of increase is required in order to cover projected Fiscal Year 2024-25 program costs, as the collective bargaining agreement with the Service Employees International Union (SEIU), Local 1021, will significantly increase employee compensation in order to be competitive in the labor market and to recruit and retain the most talented childcare staff. Therefore, staff SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 recommends Childcare Program rates be updated to cover increased employee compensation. The City Council will consider approval of the new agreement during its July 15, 2024, City Council meeting. Additionally, the existing childcare program fee schedule currently includes several fee categories that are no longer in use. These fees are no longer required, and staff recommend the elimination of those fees, as shown in Attachment 1. FISCAL IMPACT: The City’s Childcare Program currently generates fee-based revenues of approximately $3.2 million. Applying a CPI-based (2.37%) rate adjustment would yield increased program revenues of approximately $75,000. In contrast, Childcare Program costs are projected to increase by an estimated $290,000 for Fical Year 2024-25. To cover this increased cost and maintain full-cost-recovery for the City’s fee-based Childcare Program, fee adjustments of 9.0% are required for the 2024-25 school year. This fee increase is projected to yield increased program revenues of approximately $288,000. OPTIONS: The City Council has the following options to consider on this matter: 1. Adopt the resolution authorizing the recommended 9.0% increase in Childcare Program fees for the 2024-25 school year. 2. Adopt a reduced rate adjustment for 2024-25 and allocate City General Fund resources to subsidize 2024-25 Childcare Program costs. 3. Direct staff to return with more information. 4. Take no action. RECOMMENDED ACTION: Adopt the resolution authorizing an update to the Master Fee Schedule to establish Childcare Program rates for the 2024-25 school year. ATTACHMENTS: 1. Proposed 2024-25 Childcare Program Fee Comparison 2. Resolution amending the Master Fee Schedule to establish Childcare Program rates for the 2024-25 school year. a. Exhibit A – Proposed 2024-25 Childcare Program Fees Attachment 1 - Childcare Fee Comparison - Current and Proposed Fee Schedule Effective August 1, 2024 PROPOSED Child Care Fees - Effective August 1, 2024 Program Category Unit of Measure Fee Type CURRENT FEES PROPOSED FEE Effective August 1, 2024 Full Day Program Day Regular Rate $61 $66 Recreation Day Day Regular Rate $48 ELIMINATE After School Day Rate Day Regular Rate $27 ELIMINATE Minimum Day/K-Full Day Regular Rate $39 ELIMINATE Minimum Day Conf/ * K-Full 8/23-9/07 Day Regular Rate $50 ELIMINATE K-Part/TK-Part Day Regular Rate $18 ELIMINATE *K-Part 8/23-9/07 Day Regular Rate $23 ELIMINATE Preschool Tuition Month Regular Rate $1,595 $1,739 Registration Fee Annual Regular Rate $77 $84 Summer Kid's Camp Week Regular Rate $365 $398 5 Days/wk Month Regular Rate $531 $579 3 Days/wk Month Regular Rate $281 $306 3 days/wk incl. Wed Month Regular Rate $345 $376 Kindergarten Part Day (3 Days/Wk)Month Regular Rate $190 $207 Kindergarten Part Day (4 Days/Wk)Month Regular Rate $242 $264 Kindergarten Full Day (3 Days/Wk)Month Regular Rate $418 $456 Kindergarten Full Day (5 Days/Wk)Month Regular Rate $717 $782 5 Days/wk Month Regular Rate $547 $596 3 Days/wk Month Regular Rate $302 $329 3 days/wk incl. Wed Month Regular Rate $359 $391 Full Day Program Day Drop In Rate $66.00 ELIMINATE Recreation Day Day Drop In Rate $53.00 ELIMINATE After School Day Rate Day Drop In Rate $35.00 ELIMINATE Minimum Day/K-Full Day Drop In Rate $44.00 ELIMINATE Minimum Day Conf/ * K-Full 8/23-9/07 Day Drop In Rate $55.00 ELIMINATE K-Part/TK-Part Day Drop In Rate $23.00 ELIMINATE *K-Part 8/23-9/07 Day Drop In Rate $28.00 ELIMINATE CHILDCARE REGULAR FEES CHILDCARE AFTERSCHOOL PROGRAM FEES - MILLER CREEK SCHOOL DISTRICT SITES CHILDCARE DROP IN FEES CHILDCARE AFTERSCHOOL PROGRAM FEES - SAN RAFAEL CITY SCHOOL DISTRICT SITES RESOLUTION NO. 15327 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING AN UPDATE TO THE MASTER FEE SCHEDULE TO ESTABLISH CHILDCARE PROGRAM RATES FOR THE 2024-25 SCHOOL YEAR WHEREAS, the City’s Library and Recreation Department provides Childcare Program services which are, in general, fully cost-covered through fees paid by program participants; and WHEREAS, in December 2022, following a comprehensive rate study, the City Council adopted Resolution No. 15178, a resolution authorizing updates to its Master Fee Schedule, to include fees charged for Childcare Program services to become effective in August 2023 for the 2023-24 school year; and WHEREAS, Resolution No.15178 authorizes annual fee increases, based on annual increases in the San Francisco-Oakland-Hayward All Urban Consumers’ Price Index (CPI-U), not to exceed 3.0% per year and WHEREAS, an increase in Childcare Program fees of 9.0% is required in order to cover FY2024-25 program costs, particularly in light of new labor agreements with the collective bargaining group representing Childcare Program employees. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Rafael does hereby approve and authorize increases in Childcare Program fees for the 2024-25 school year of 9.0%, rounded to the nearest whole dollar, as reflected in Exhibit A attached hereto, to be effective August 1, 2024; and be it, FURTHER RESOLVED, that the City Council authorizes staff to make modifications to the Childcare Program Fee Schedule, as may be required, to address changes in program offerings, provided that any fee modifications are consistent with the structure of the approved fees and support overall cost-recovery targets for the City’s Childcare Program. I, LINDSAY LARA, 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 on Monday, the 15th of July 2024, by the following vote, to wit: AYES: COUNCILMEMBERS: Bushey, Kertz & Mayor Kate NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Hill & Llorens Gulati LINDSAY LARA, City Clerk Exhibit A Child Care Fees - Effective August 1, 2024 Program Category Unit of Measure Fee Type REGULR FEE Full Day Program Day Regular Rate $66 Preschool Tuition Month Regular Rate $1,739 Registration Fee Annual Regular Rate $84 Summer Kid's Camp Week Regular Rate $398 5 Days/wk Month Regular Rate $579 3 Days/wk Month Regular Rate $306 3 days/wk incl. Wed Month Regular Rate $376 Kindergarten Part Day (3 Days/Wk) Month Regular Rate $207 Kindergarten Part Day (4 Days/Wk) Month Regular Rate $264 Kindergarten Full Day (3 Days/Wk) Month Regular Rate $456 Kindergarten Full Day (5 Days/Wk) Month Regular Rate $782 5 Days/wk Month Regular Rate $596 3 Days/wk Month Regular Rate $329 3 days/wk incl. Wed Month Regular Rate $391 CHILDCARE AFTERSCHOOL PROGRAM FEES - SAN RAFAEL CITY SCHOOL SITES CHILDCARE AFTERSCHOOL PROGRAM FEES - MILLER CREEK SCHOOL DISTRICT SITES CHILDCARE REGULAR FEES