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HomeMy WebLinkAboutMINUTES - 06282011 - C.92RECOMMENDATION(S): Accept a report from the Employment and Human Services Department on the current status of the Child Care Affordability Fund and Approve and Authorize the Employment an Human Services Director to execute a contract with the Contra Costa Child Care Council to provide child care subsidies in the amount of $250,000 for the period of July 1, 2011 through June 30, 2012 as recommended by the Family and Human Services Committee. FISCAL IMPACT: The funding for these child care subsidies is provided by funds contributed by County employees to their Dependent Care Accounts and left unclaimed. BACKGROUND: In 1991, the Board of Supervisors earmarked $250,000 of Transient Occupancy Tax (TOT) from the Embassy Suites Hotel to support/expand county-wide child care for low-income families. In 1997, the Board approved a recommendation from the Family and Human Services Committee that the Family and Children’s Trust Committee (FACT) be responsible for establishing priorities for use of the Child Care Affordability funds, developing and managing the competitive process APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 06/28/2011 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Elaine Burres, 925-313-1717 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: June 28, 2011 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: Elaine Burres C. 92 To:Board of Supervisors From:Family and Human Services Committee Date:June 28, 2011 Contra Costa County Subject:2011-12 Child Care Affordability Funding Allocation BACKGROUND: (CONT'D) for awarding these monies, and monitoring the resulting programs for contract compliance and achievement of outcomes. In 2002, the Board approved a two-year funding cycle for disbursement of the funds. Effective July 1, 2008 the 2008-2009 County budget modified the funding stream such that Childcare Affordability funds would no longer be generated from the revenue of the Transient Occupancy Tax but, instead, be funded by residual funds in the County Employee’s Dependent Care Account. The $250,000 appropriation for Child Care Affordability is now transferred to EHSD each year from the Dependent Care account, to support the Childcare Affordability contracts. The resulting change in the funding stream created an unanticipated situation that the Committee addressed in January, 2009 when it elected to continue funding its current contract and future contracts at the same $250,000 level until the funds were exhausted. It is anticipated that the Child Care Affordability funds will be depleted by the end of FY2013-2014. The FACT Committee believes that Contra Costa Child Care Council has provided exemplary services to children and their families as indicated by data collection, contract monitoring, and site-visits. At this time, the Council has successfully met their goals and objectives of their contract obligations. The FACT Committee strongly endorses Contra Costa Child Care Council. CONSEQUENCE OF NEGATIVE ACTION: Funding for child care subsidies will not be distributed to needy parents in the community. CHILDREN'S IMPACT STATEMENT: This contract supports two community outcomes established in the Children's Report Card: 2) Children and Youth Healthy and Preparing for Productive Adulthood; and 4) Families that are Safe, Stable, and Nurturing. ATTACHMENTS FACT Report 1 Employment and Human Services Department Contra Costa County ________________________________________________________ TO: Family and Human Services Committee Supervisor Federal Glover, Vice Chair Supervisor, Gayle B. Uilkema, Chair FROM: Joe Valentine, Director, Employment and Human Services Department Rhonda Smith, FACT Staff RE: Annual Child Care Affordability Report DATE: May 31, 2011 RECOMMENDATION(S)__________________________________________________ ACCEPT this report on the current status of the Child Care Affordability Fund from the Family and Children’s Trust Committee (FACT) and direct the Employment and Human Services Department (EHSD) to negotiate a contract for the period July 1, 2011 through June 30, 2012 with the Contra Costa Child Care Council in the amount of $250,000. Additionally, the Director requests that the Family and Human Services Committee (FHS) consider delegating the authority to extend the negotiated contract for up to an additional year and a half, as it is clear that funds would be depleted prior to the end of FY 2013- 2014. BACKGROUND__________________________________________________________ In 1991, the Board of Supervisors earmarked $250,000 of Transient Occupancy Tax (TOT) from the Embassy Suites Hotel to support/expand county-wide child care for low- income families. In 1997, the Board approved a recommendation from the Family and Human Services Committee that the Family and Children’s Trust Committee (FACT) be responsible for establishing priorities for use of the Child Care Affordability funds, developing and managing the competitive process for awarding these monies, and monitoring the resulting programs for contract compliance and achievement of outcomes. In 2002, the Board approved a two-year funding cycle for disbursement of the funds. Effective July 1, 2008 the 2008-2009 County budget modified the funding stream such that Childcare Affordability funds would no longer be generated from the revenue of the Transient Occupancy Tax but, instead, be funded by residual funds in the County Employee’s Dependent Care Account. Up to a maximum of $250,000 is now transferred 2 to EHSD each year from the Dependent Care account, to support the Childcare Affordability contracts, depending upon the balance in the fund. The resulting change in the funding stream created an unanticipated situation that the Committee addressed in January, 2009 when it elected to continue funding its current contract and future contracts at the same $250,000 level until the funds were exhausted. It is anticipated that the Child Care Affordability funds will be depleted prior to end of FY2013-2014. CURRENT CONTRACTOR REPORTS______________________________________ Having successfully completed the 2010-2011 Child Care Affordability Request for Proposal, the Contra Costa Child Care Council was awarded the grant and provides parent-choice subsidies for families. Services are based on the priorities developed from the 2009 FACT Needs Assessment which determined that the highest priority for services was “the provision of parent-choice child care subsidies for low-income working parents and/or parents in school or work training programs who have toddlers needing child care or children who would benefit from preschool enrollment.” In addition to administering the subsidy program, Contra Costa Child Care Council provides the families receiving assistance: 1) free workshops, education and resources to parents to help them build strong families and make the best child care choices; 2) free child care referrals to give parents choices and help parents meet their life/work needs; and 3) free or minimal cost training for child care providers to help them build sustainable businesses and to provide quality, healthy, and age-appropriate care, including caring for children with special needs. Currently, 21 children from 13 families receive much needed supportive childcare assistance from the Council. The average age for children receiving childcare services is 4.9 years, with the youngest child being 1.7 years old and the oldest being 11.79 years. 80% of child care providers are Licensed Child Care Centers, while 41% are Family Childcare Homes and 20% of the children are cared for by an approved relative. Family demographics indicate that 77% (10) of the families receiving subsidized childcare are low-income working parents while the remaining 23% (3) of the families are in school or work training programs. The FACT Committee believes that Contra Costa Child Care Council has provided exemplary services to children and their families as indicated by data collection, contract monitoring, and site-visits. At this time, the Council has successfully met their goals and objectives of their contract obligations. 3 FUNDING AND THE TRANSITION PLAN___________________________________ As the table below illustrates, Child Care Affordability funding will be depleted before the end of FY 2013/14. Estimated Account Balance as of June 2011 $594,520 Spend-Down FY 11/12 Earned FY 11/12 Estimated as of June 2012 Spend- Down FY 12/13 Earned FY 12/13 Estimated as of June 2013 Spend- Down FY 13/14 Earned FY 13/14 Estimated as of June 2014 (250,000) 40,000 384,520 (250,000) 40,000 174,520 (250,000) 40,000 (35,480) In an effort to address this issue in collaboration with Contra Costa County Child Care Council, the FACT Committee has developed a transition plan to ensure that families supported by FACT subsidized childcare funding will continue to receive services. As a part of routine contract monitoring, the FACT Committee will oversee the actions taken under the transition plan and request changes as necessary to better meet the needs of family. The initial stage of the transition plan states that over the next two and a half years, current families supported by FACT funds will continue as is with one exception. Child Care Council has stated that they will began to offer FACT funded families the option of choosing center based preschool under Preschool Makes a Difference (PMD) funding, where appropriate. This is a new option for families seeking preschool services and is funded by First 5 Contra Costa. PMD is a collaboration between Contra Costa Child Council, Contra Costa County Office of Education, Contra Costa Employment and Human Services Department, and West Contra Costa Unified School District. The PMD program is a partnership between early care providers and parents who receive scholarships for children whose parents qualify for the program based on income eligibility and service need. PMD supports licensed child care providers (in-home and center based) by improving the quality of Contra Costa County’s early childhood education programs, and provides support and financial incentives to child care providers who maintain and/or improve quality. In 2014, the families receiving FACT funded subsidized care will be transitioned to either a PMD or the Child Care Alternative Payment (CAP) Program once the Childcare Affordability Funds are thoroughly depleted. The CAP program acts as an intermediary between California Department of Education (CDE), the child care provider, and the family, to provide care through vouchers. Vouchers provide funding for a specific child to obtain care in a licensed child care center, licensed family day care home, or license- exempt care. With a voucher, the family has the choice of which type of care to utilize. Vouchers reimburse care providers based on the market rates charged by private providers in their region. 4 It is the belief of the FACT Committee that the transition plan proposed provides for the continuation of parent-choice subsidized child care without creating an interruption in services to those currently receiving support. REQUEST TO EXTEND CURRENT CONTRACT_____________________________ At this time, the committee requests that the FHS Committee authorize EHSD to extend the existing contract it has with the Child Care Council (due to expire on June 30, 2011) until the Child Care Affordability funds have been exhausted and waive the requirement of conducting an additional RFP process. This request is based on the following rationale: 1. Based on current estimates, the funding available will not cover a full 2-year cycle, 2. The Child Care Affordability RFP process requires a comprehensive needs assessment, including an extensive service provider and consumer survey which represent a significant monetary and staffing cost, and 3. Historically, prior RFP’s for this funding have resulted in only one bidder, despite extensive outreach efforts on the part of the Committee and EHSD. Additionally, over the past year and a half, the current contractor has complied with the conditions of the contract in an exemplary fashion. Based on the above information, the FACT Committee and EHSD recommend extending the existing contract with the Contra Costa Child Care Council until Child Care Affordability Funds have been depleted. Additionally, the FACT Committee and EHSD recommend continued funding to the Contra Costa Child Care Council for FY 2011-2012 and requests the Family and Human Services Committee forward this recommendation to the full Board for approval.