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HomeMy WebLinkAboutMINUTES - 06242014 - D.5RECOMMENDATION(S): ACCEPT report; APPROVE the recommendations for allocation of funding from the Child Care Affordability Fund for the 2014-2015 fiscal year; and APPROVE and AUTHORIZE the Employment and Human Services Director to execute a contract in the amount of $120,000 for the period of July 1, 2014 through June 30, 2015 with the Child Care Coordinating Council, for the provision of child care subsidies to eligible low income families. (100% Child Care Affordability Fund) FISCAL IMPACT: A Trust Fund account exists in the County treasury for this purpose. This account was funded through Transient Occupancy Tax received from the Embassy Suites Hotel. There is a current balance of $185,206.23. Current year (2013-2014 fiscal year) will reduce this balance by $120,000 leaving $65,206.23 available for 2014-15 fiscal year. During the 2008-2009 budget process, the Board of Supervisors modified the funding stream such that Childcare Affordability Funds would no longer be generated from the Transient Occupancy Tax but, instead, is funded by the residual funds in the County Employee's Dependent Care account. The balance remaining in the Child Care Affordability Fund from the Transient APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 06/24/2014 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Dorothy Sansoe, 925-335-1009 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 24, 2014 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: D.5 To:Board of Supervisors From:FAMILY & HUMAN SERVICES COMMITTEE Date:June 24, 2014 Contra Costa County Subject:Recommended allocation of Child Care Affordability Fund FISCAL IMPACT: (CONT'D) Occupancy Tax remained available for use, but no additional revenue has been added. It is anticipated that the fund balance in the Child Care Affordability Fund will be depleted in 2014-15. 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. The $250,000 appropriation for Child Care Affordability is now partially funded 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. Initially it was anticipated that the Child Care Affordability funds will be depleted by the end of FY 2013-2014; however a small amount is still available for distribution. The Employment and Human Services Department has requested, and the Family and Human Services Committee has agreed, to request Board of Supervisors approval to authorize the Child Care Council to enter into a contract for the 2014-15 year in the amount of $120,000 and for the 2015-16 year for up to $120,000 to the extent funds are available. CONSEQUENCE OF NEGATIVE ACTION: Funding for child care subsidies will not be distributed to needy parents in the community. CHILDREN'S IMPACT STATEMENT: These funds 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 Child Care Affordability Fund Report 1 Employment and Human Services Department Contra Costa County ________________________________________________________ TO:Family and Human Services Committee Supervisor Federal D. Glover, Chair FROM: Kathy Gallagher, Director, Employment and Human Services Department Natasha Paddock, FACT Staff Mary Kay Miller, FACT Chair RE:Annual Child Care Affordability Report DATE: June 9, 2014 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, 2014 through June 30, 2015 with the Contra Costa Child Care Council in an amount not to exceed $120,000. 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 one year, as it is anticipated there will be additional funds in the account for FY 2015/16. 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. The goal of the Child Care Affordability funds is to assist low-income families whose children are at risk of child abuse and/or neglect or poor developmental outcomes to 2 reduce that risk to their child(ren) and improve their families self-sufficiency by providing parent-choice child care subsidies. 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 has been transferred 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. At the time of the last report to the FHS in 2012, it was anticipated that all funds would be depleted by the end of FY 2013/14. It is now, however, anticipated that all remaining funds in the County Employee s Dependent Child Care account will not be fully depleted until sometime during FY 2015/16. 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 2010 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, 35children from 21 families receive much needed supportive childcare assistance from the Council. The largest group of children served is 2-5 year olds. 62% of child care providers families use are Licensed Child Care Centers, while 38% are Family Childcare Homes and 0% of the children are cared for by an approved relative. Family demographics indicate that 82% (19) of the families receiving subsidized childcare are low-income working parents, 9% (2) of the families are in school or work training programs and 9% (2) are served in the at-risk category. 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 3 monitoring, and site-visits. At this time, the Council has successfully met the goals and objectives of their contract obligations. FUNDING AND THE TRANSITION PLAN___________________________________ If our request to continue funding of this contract at the $120,000 level for FY 2014/15 and a slightly lesser amount, approximately $65,000, for FY 2015/16, it is now anticipated that all the remaining funds will have been spent by the end of that year. Over the next year and a half, families supported by FACT funds will continue as is with one exception. The Child Care Council has stated that they will encourage any new FACT funded families to choose child care services at a certified Preschool Makes a Difference (PMD) site, when appropriate. This is a new opportunity for families applying for FACT services. During FY 2015/16, the families receiving FACT funded subsidized care will gradually be transitioned to the Council s Child Care Alternative Payment (CAPP) Program as the FACT Funds become depleted. The CAPP program is funded by the California Department of Education (CDE), and will be able to offer services for eligible FACT families who are able to document and maintain the CDE eligibility requirements. The Child Care Council anticipates this transition to be fairly seamless for families, for although they may be attending PMD sites, FACT scholarships will continue to be aligned with CDE programs specifications such as reimbursement and family fee requirements. It is the belief of the FACT Committee that the proposed transition plan 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, 2014) 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. 4 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 through FY 2015/16 and requests the Family and Human Services Committee forward this recommendation to the full Board for approval.