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HomeMy WebLinkAboutMINUTES - 06271988 - IO.1 To: BOAYtl?*OF SUPERVISORS I. 0. 1 FROM: VVI Itra a INTERNAL OPERATIONS COMMITTEE DATE . June 20, 1988 C"^ SUBJECT: Child Care Issues SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: A. INCOME TAX DEDUCTION FOR DEPENDENT CARE ASSISTANCE 1 . Support legislation to increase the maximum child care expense which is eligible for a federal income tax deduction from $2400 for one child to $3600 for one child, and from $4800 for two or more children to $7200 for two or more children. 2 . Support legislation to implement a federal income tax rebate program under which a family would receive a rebate from the Internal Revenue Service for any eligible child care deduction which exceeds a taxpayer' s federal income tax liability. B. DEPENDENT CARE ASSISTANCE PROGRAM 3 . Direct the County Administrator to formulate a dependent care assistance program for recommendation to the Board. After the program is adopted: a. Urge the chambers of commerce and Contra Costa Council to sponsor training for small employers on the benefits of offering dependent care assistance programs to their employees. b. Authorize the Director of Personnel to request proposals from several private firms to provide consultation to the County in the marketing and training related to the dependent care assistance program for County employees. C. Request the Director of Personnel to prepare a brochure for County employees on the relative advantages and disadvantages of the dependent care assistance program and on federal and state child care income tax deductions so employees have the information necessary to make informed decisions about the extent to which they should utilize the CONTINUED ON ATTACHMENT: _ YES SIGNATURE: _ RECOMMENDATION OF COUNTY ADMINISTRATOR X RECOMMENDATION OF BOARD COMMITTEE X APPROVE OTHER S _ r . SIGNATURE s : Sunne W. McPea Tom Torlakson ACTION OF BOARD ON June zu, I APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS (ABSENT AND CORRECT COPY OF AN ACTION TAKEN AYES; NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. CC: Listed on Page 5 ATTESTED 0?, /98ff P L BATCHELOR, CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR BY ,DEPUTY M382/7-83 Page 2 dependent care assistance program versus the income tax deduction in order to take the maximum advantage of each. d. Request the Director of Personnel to prepare a general brochure on the dependent care assistance program and child care income tax deduction which can be made available to private employers and their employees in the County, but which will not infringe upon the properietary materials prepared by private firms doing consulting work in this area. e. Request the Director of Personnel to meet with the Subcommittee consisting of Ken Jaffe, Teri Dean, Naomi Zipkin, Bette Boatmun, and Carol Brilon in an advisory capacity for the preparation of educational and training materials for County employees, and in the preparation of both County-specific and general brochures on the relative advantages and disadvantages of the dependent care assistance program and child care income tax deduction. f. Request the Director of Personnel to report to the Board of Supervisors by February 1, 1989 on the extent of participation in the dependent care assistance program and, on the projected savings to the County in Social Security taxes and retirement contributions. Indicate at this time the Board' s intent to dedicate all such savings to the proposed child care affordability fund. 4 . Indicate to the Director of Personnel and employee organizations the Board' s preference to wait to implement the dependent care assistance program until January 1, 1989 thereby allowing time this fall for the necessary marketing, education, and training of County employees on the advantages of the dependent care assistance program and child care income tax deduction so all employees who are interested will have as much information available as possible. In connection therewith authorize the Director of Personnel to Meet and Confer with employee organizations on delaying implementation of the dependent care assistance program from August 1, 1988 to January 1, 1989. 5 . Request the County Administrator to obtain from the Internal Revenue Service and Franchise Tax Board data on the utilization during 1987 of the dependent care assistance program and income tax deduction for child care, and to obtain such additional information as may be available to accurately project the cost to the federal and state governments of implementing recommendations 1 and 2 above. C. CHILD CARE LEGISLATION 6. Endorse S. 1855, the Act for Better Child Care Services of 1987, and direct the County Administrator to transmit the Board' s support to Congressmen Miller and Dellums and each member of the Senate Committee on Labor and Human Resources, the Majority Leader of the Senate, the Minority Leader of the Senate, and Senators Cranston and Wilson. Page 3 7 . Take the following position on legislation pending in the State Legislature and direct the County Administrator to transmit the Board' s position to appropriate members of this County' s legislative delegation and other appropriate members of the Legislature, as well as the County's lobbyist: AB 1967 - SUPPORT AB 3148 - SUPPORT AB 3961 - OPPOSE SB 304 - SUPPORT if amended to include Contra Costa County SB 722 - SUPPORT AB 1763 - SUPPORT AB 2736 - SUPPORT AB 3145 SUPPORT if amended to remove the penalty for progressive local juris- dictions which have already established child care coordinator positions 8 . Request the Subcommittee consisting of Ken Jaffe, Teri Dean, Naomi Zipkin, Bette Boatmun, and Carol Brilon to continue to serve as a legislative committee on child care issues and authorize them to advocate for the Board' s positions on the above legislation, and to work cooperatively with the County Administrator in this regard. 9. Request the County Administrator to report to our Committee September 26, 1988 on the outcome of all legislation dealing with child care which was reviewed by our Committee on June 20. D. TRANSIENT OCCUPANCY TAX AND SALES TAX REVENUE 10. Request the Public Works Director to report to our Committee September 26, 1988 on the amount of sales tax revenue which is expected to be generated from proposed development at Buchanan Field Airport. 11. Request the Director of Community Development to determine the amount of transient occupancy tax which would be generated countywide by an increase in the transient occupancy tax by each jurisdiction of 1% (for the County an increase from 8 . 5% to 9 . 5%) , and report the results to our Committee on September 26, 1988. E. OTHER RELATED CHILD CARE ISSUES 12. Request the Director of Community Development to report to our Committee as soon as possible on the contract with the Contra Costa Child Care Council for implementation of the needs assessment review pursuant to Ordinance 88/1 and on the status of grant applications to foundations to support the Contra Costa Child Care Council in its coordinative role on behalf of the County. 13 . Request the Director of Personnel to report to our Committee September 26, 1988 on the various options which are available for providing sick child care for County employees, including the possibility of subsidizing child care consultants in existing programs. Page 4 14. Request the Director of Public Works to be present at our Committee meeting on September 26, 1988 to continue the discussion of the use of available County property which might be used for a public-private sector youth entertainment project. 15. Request the County Administrator to meet as soon as possible with staff from the Social Services, Department, the Contra Costa Child Care Council and the Community Services Department regarding the request for proposals for GAIN child care services to resolve outstanding issues identified in the Council' s letter to Supervisor Torlakson dated May 5, 1988 and report to our Committee in writing as soon as possible. BACKGROUND: On March 29, 1988 the Board of Supervisors approved a number of recommendations made by our Committee dealing with various child care issues. In response to those referrals, our Committee met with a number of child care advocates in the community as well as staff from the County Administrator' s Office, the Personnel Department, Community Development Department, Public Works Department, Social Services Department, and County Counsel' s Office on June 20, 1988 . Rather than attempting to repeat or summarize all of the reports provided to us, we have attached several documents which provide the background for the recommendations we have made above. These include: 1. A report from the County Administrator' s Office on the federal income tax deduction for child care expenses and the dependent care assistance program. 2. A report from the Director of Personnel on sick child care and the implementation of the dependent care assistance program for County employees. 3 . An analysis by the County. Administrator' s Office of 5. 1855 . 4. A report from our Committee summarizing the pieces of State legislation on which we are recommending the Board take a position. 5. A report from the Redevelopment Director on the Pleasant Hill-BART sales tax and the proposed transient occupancy tax from the hotels which are proposed in the Pleasant Hill-BART area. 6 . A report from the Public Works Director on surplus County property which might be utilized as a youth entertainment center. 7. A report from the Social Services Director on GAIN child care along with correspondence from the Contra Costa Child Care Council to Supervisor Torlakson expressing concerns about the manner in which the child care contracts for the GAIN program have been awarded. Page 5 On this last issue in particular we feel it is urgent that the County Administrator' s Office meet with the Social Services Department, Contra Costa Child Care Council, and the Community Services Department to clarify any misunderstandings and insure that the most appropriate agency is administering the child care program for GAIN. The legislation which we are recommending the Board support was selected from some 47 bills identified by the County Administrator' s Office which are currently still pending in the Legislature dealing with child care. We will continue to work on many of these issues at our September 26 meeting and will return further recommendations to the Board following that meeting. cc: County Administrator Public Works Director Community Development Director Director of Personnel County Counsel Social Services Director Director, Community Services Katherine Ertz-Berger Teri Dean Jim Kennedy J ATTACHMENT #1 OFFICE OF COUNTY ADMINISTRATOR CONTRA COSTA COUNTY Sunne Wright McPeak Administration Building Tom Torlakson Martinez, California To: INTERNAL OPERATIONS Date: June 17, 1988 Child Care Income Tax Claude L. Van Marter Deduction and Dependent From : Assistant Administra Subject: Care Assistance A subcommittee, consisting of Ken Jaffe, Teri Dean, Naomi Zipkin, Bette Boatmun and Carol Brilon, has reviewed federal income tax child care deductions and the dependent care assistance program in an effort to determine what changes are needed to achieve the goal of having a family not have to spend more than 100 of their gross income on child care. Attached are six examples which we believe are fairly typical of the problems confronted by single parents and low-income two-parent families. Among the conclusions which can be drawn from these examples are the following: 1. For most low-income taxpayers the current federal child care deduction provides very little benefit because of the combination of the relatively low percentages of child care expenses which are allowed and the low income tax brackets in which these taxpayers find themselves. 2. Assuming that child care expenses which are paid through a dependent care assistance program are not deductible as a child care expense on the taxpayers income tax return the dependent care assistance program is only financially attractive to the extent that actual child care expenses exceed the federal allowable maximum of $2400 for one child and $4800 for two children, or where the allowable child care deduction exceeds the taxpayers federal tax liability. Otherwise, the taxpayer is sacrificing the child care deduction for non-taxable income which would be taxed at a lower rate than the child care deduction. 3 . The goal of holding child care expenses to 100 of gross income cannot be achieved without a tax rebate program similar to the renters credit in California which is paid even if there is no tax liability. For many taxpayers their federal tax liability is already so low that the child care exemption at, existing levels eliminates the total tax liability, but leaves a substantial available deduction which cannot be taken. Internal Operations June 17, 1988 Page 2 4 . Because the federal maximum deductible child care expenses are capped at $2400 for one child and $4800 for two or more children, many families will spend their 100 of gross income simply covering the difference between the federal maximum and their actual costs. At $6000 for two children, $1200 is not allowable. Therefore, a family with a $12,000 income will be at their 10% limit even if they were allowed a 1000 deduction for the first $4800 in expenses. RECONNENIDATIONS 1. Allowable child care expenses should be increased to $3000 for one child and $6000 for two or more children. 2. A rebate must be implemented where the allowable child care -deduction exceeds federal tax liability. 3 . The dependent care assistance program should be used carefully to cover only expenses which exceed the federal maximums or, in the absence of a rebate program, where the allowable child care deduction exceeds the taxpayers tax liability. 4. Federal tax laws should be based on the net out-of-pocket expense to the family rather than arbitrary limits and percentages, which discriminate against low-income families with high child care expenses. It should be possible to provide a rebate for all reasonable child care expenses which exceed 100 of the family' s gross income. 5. The County should indicate its willingness to allocate any savings as a result of the dependent care assistance program to child care programs. The county (and nearly every other employer) will achieve savings in reduced retirement and FICA contributions for nearly every employee. 6 . The subcommittee has recommended that training should be available to small employers on why they ought to offer dependent care assistance programs to their employees. Internal Operations June 17, 1988 Page 3 7. Because of the complexities involved in the child care dependent care assistance program, a brochure should be available to employees explaining how to calculate the relative benefits of the two programs and how to figure the maximum tax advantages which .'can be achieved by using the two systems in tandem. There are undoubtedly other recommendations which members of the subcommittee would like to add to the above. CLVM:clg Attachment INCOME TAX DEDUCTION FOR CHILD CARE EXPENSES Features of federal income tax deduction for child care expenses: 1 . Limited to $2400 in expenses for one child. 2 . Limited to $4800 in expenses for two or more children. 3 . Maximum deduction is $720 for one child. 4 . Maximum deduction is $1440 for two or more children. 5. Deduction cannot exceed the lesser of two spouses incomes. 6 . Deduction is a straight deduction from tax liability after tax due is figured. 7. Maximum deduction is 300 of $2400 or $4800 (gross income not exceeding $10,000 ) . 8 . Minimum deduction is 200 of $2400 or $4800 (gross income exceeding $28,000) 9. No maximum income. Anyone can take deduction, but it is limited to 200 of allowable expenses. 10. No rebate if deduction exceeds tax liability. California deduction is a flat 300 of federal deduction. EXAMPLE 1• Two wage earners - one earns $20,000; the other earns $10,000. Take standard deductions. Two children in child care. Actual expenses = $6 ,000. Maximum allowable expenses $4,800 $6,000 Percent of expenses deductible 20% 500 Deduction $ 960 $3 ,000 Tax Liability $3 ,244 $3 , 244 Child care deduction 960 3 ,000 Net Tax Liability $2,284 $ 244 Out-of-pocket child care expenses $5,040 = $3 ,000 = 16% of gross 10% of gross income income Page 2 EXAMPLE 2 • Single parent earning $9,900. Takes standard deduction. Two children in child care. Actual expenses $6,000. Maximum allowable expenses $4,800 $6 ,000 Percent of expenses deductible 300 83. 50 Deductible $1,440 $5,010 Tax Liability 436 436 Child Care Deduction (cannot 436 436 exceed tax liability) Net Tax Liability -0- $ ( 4,574)rebate Out-of-pocket child care expenses $5,564= $ 990= 56% of gross 10% of gross income income EXAMPLE 3 : Single parent earning $15,000. Takes standard deduction. Two children in child care. Actual expenses $6,000 . Maximum allowable expenses $4 ,800 $6 ,000 Percent of expenses deductible 270 750 Deductible $1,156 $4, 500 Tax Liability 1,201 1, 201 Child Care Deduction 1,156 4, 500 Net Tax Liability $ 45 $ ( 3 , 299)rebate Out-of-pocket child care expenses $4,844 = $1 , 500 = 32% of gross 10% of gross income income EXAMPLE 4: Single parent earning $10,000. Takes standard deduction. One child. Actual child care expenses $3 ,000. Maximum allowable expenses $2,400 $3 , 000 Percent of expenses deductible 290 670 Deductible $ 696 $2 ,000 Tax Liability 736 736 Child care Deduction 696 2 , 000 Net Tax Liability $ 40 $ ( 1 , 264 )rebate Out-of-pocket child care expenses $2304 or $1, 000= 23% of gross 10% of gross income income Page 3 EXAMPLE 5: (Suggested by Subcommittee to be Target group) Two wage earners - one earns $14, 000; the other earns $8,000. Take standard deductions. Two children in child care. Actual expenses = $6,000. Maximum allowable expenses $4,800 Percent of expenses deductible . 230 Deduction $1,104 Tax liability $1,474 Child care deduction $1,104 Net tax liability $ 370 Out-of-pocket child care $4, 896 = expenses 22 . 20 of gross income EXAMPLE 6: (Suggested by Subcommittee) One wage earner - earns $18, 000. Takes standard deduction. One child in child care. Actual expenses = $3 ,000. Maximum allowable expenses $2, 400 Percent of expenses deductible 250 Deduction $ 600 Tax liability $1,651 Child care deduction 600 Net tax liability $1, 051 Out-of-pocket child care $2,400= expenses 13 . 3% of gross income ATTACHMENT #2 • `•r Contra Personnel Department Costa Administration Bldg. County Ma Pine Street Martinez, California 94553-1292 DATE: June 15, 1988 TO: Internal Operations Committee FROM: Harry Cisterman, Director of Person n By: Kim Franklin, Personnel Analy SUBJECT: Status Report Regarding the Implementation of the Dependent Care Assistance Plan and the Sick Child Care Facility At the meeting of March 21, 1988 the Internal Operations Committee requested detailed information regarding the development and implementation of the County's Dependent Care Assistance Plan. Additionally, the Internal Operations Committee directed staff to explore the option of marketing the County's Dependent Care Assistance plan to other public jurisdictions and private agencies. A synopsis of the components of the Dependent Care Assistance Plan which list proposed marketing strategies, cost and systematic concerns are included in the report together with the status of a County operated sick child care facility. Implementation of the Dependent Care Assistance Plan. The Personnel Department will be responsible for marketing the Dependent Care Assistance Plan to the employees. The marketing plan will consist of an ongoing publicity campaign to educate employees about the program as well as the development of work site meetings which will be designed to introduce and explain the new employee benefit. The Personnel Department will also be responsible for enrolling employees in the program, reviewing completed forms, determining eligibility of reimbursement claims, and authorizing reimbursement for dependent care expenses. Following authorization from the Personnel Department, a payroll deduction form will be forwarded -to the payroll section of the Auditor's Office. The payroll system will be modified to deduct the specified amount from the employee's salary prior to the deduction of federal and state income tax. Deductions will be posted to individual trust accounts which will then be available for disbursement to employees on a bi-monthly basis. A monthly trust fund balance report will be generated by the payroll which itemizes trust fund deposits, withdrawal, and ending balances. This report will be maintained in the Personnel Department so that employees may receive current information regarding the status of their account. s Internal Operations Committee -2- June 15, 1988 There will be an estimated one-time start-up fee of $1000 to modify the payroll system to accommodate the salary deductions. Additionaly, $100 a month will be required to maintain the operation of the system and to produce the trust fund balance reports. The marketing aspect of the Dependent Care Assistance Plan is vital to the success of the program. It is very important that employees understand the options available in the area of -tax savings for dependent care expenses. For example, eligible employees may receive a tax deduction for dependent care purposes in either one of two ways: as a tax credit deducted from income- tax returns or as a pre-tax.salary reduction under a Dependent Care Assistance Plan. The County should not be in the position of providing tax advice to employees because -the tax laws are quite complex and to do so would increase the the County's liability. Therefore, it is recommended that the County enlist the services of a benefits consulting firm to provide training to staff on the development of educational materials to orient employees to the program. The William M. Mercer-Meidinger-Hansen, Inc. consulting group has proposed an hourly fee-for-service of $140 per hour to provide such training. Alternatively, Mercer Inc. will administer the Dependent Care Assistance Plan for the following fees:' System Requirements $ 2000-3000 - Software System Set-up $ 2000-3000 Reimbursement Claims Adjudication $ 1.60 per claim Ongoing Processing $ 1.15 per participant per month Typically, 5 to 10% of an agency's employees will participate in a salary reduction program. Consequently, the County could expect to pay as much as $6000 in start-up fees, plus an additional $130 per month in administrative costs if the County elects to contract with a benefits consulting group to provide these services. Please note that the estimates provided for the implementation of the Dependent Care Assistance Plan do not include the Pesonnel Department's administrative costs. It is recommended that the Personnel Department administer the County's Dependent Care Assistance Plan in conjunction with staff from the Auditor's Office. It is also recommended that the County contract with a benefits management group to provide training and consulation to insure that the County's Dependent Care Assistance Plan is in compliance with the applicable IRS regulations. Internal Operations Committtee -3- June 15, 1988 Marketing of the Computer-Software to Public and Private Industries In the past, the County has maintained a policy of free exchange with regard to systems developed with tax-payer funds with other government jurisdictions. Conversely, the County has adopted a policy of charging private agencies for the use of systems designed by the County. The likelihood of marketing the system that the County designs for tax-deferred child care reimbursement to outside agencies is quite remote. The payroll system utilized by the County is a copyrighted system licensed by Management Science of America. Therefore, the County is legally unable to sell or market the system. The only items that the County could make available are the forms and procedures developed for use with the Management Science of America system, but these items are worthless without the compatible payroll system. Sick Child Care The Internal Operations Committee received a report from the Personnel Department which provided information on the operational costs and considerations associated with the establishment of a sick child care facility at the March 21, 1988 meeting. There have been no changes in the information that was provided to the Internal Operations Committee since that time. Therefore, staff is awaiting further direction from the I.O. Committee with regard to the implementation of a sick child care program. In the interest of maximizing cost effectiveness and increasing the probability of use by larger numbers of employees, it is recommended that the County develop a center which will provide basic child care services, but which can also accommodate a small number of sick children. Subsidizing slots in established child care centers is another option which the County might consider in lieu of implementing its own child care center. Staff has recently been in contact with representatives of the Richmond YWCA to discuss the possibility of subsidizing slots for County employees in their newly developed infant care program. This option could also be expanded to included subsidization of other types of child care services (i.e. of after school care, sick child care etc. ) in various locations throughout the County. This subsidy program could be implemented as a pilot program offered to a limited number of employees. HDC:KF:jd Contra Personnel Department Costa Adrninisuation Bldg. 651 Prne Street County Martine:. California 945531292 DATE: March 15, 1988 T0: Internal Operations Committee FROM: Harry D. Cisterman, Director of Personnel By: Kim Franklin, Administrative Analyst SUBJECT: Sick Child Care Program In accordance with your request, a report on the establishment of a sick child care program is provided below. BACKGROUND Within the last few years the number of women who comprise the national workforce has increased. In addition, the number of men who are single parents has also increased. It is estimated. that in California, one worker in four has a child under the age of 14 who requires child care. The changing demographics of the workforce has had a pronounced affect on employee's needs for child care, consequently, Contra Costa County has become more aware of its responsibility as an employer -to effectively respond to the child care needs of its employees. On July 16, 1986, a survey was conducted by the staff of the Personnel Department in order to ascertain the child care needs of the employees and to determinethe level of interest in an employer-sponsored child care program. A total of 3,483 questionnaires were distributed in 25 different County departments and 1,038 employees responded (300) . In the latter part of September, an additional 3,099 questionnaires were sent to 13 departments that had not previously participated in the survey. A total of 820 questionnaires were completed and returned to the Personnel Department (26.4%) . In combining the two surveys it was estimated that a total of 5,982 employees received questionnaires with 1,858 employees responding. Of those employees who responded, 1,349 (72%) expressed no present or antici- pated need for child care services. Although 72% of the respondents expressed no need for child care services, 25% of the respondents indicated. a present or anticipated need for child care services while 3% were undecided. Major problems most commonly reported were: 1) Affordability of child care 2) Availability of extended day care (after school, weekends) 3) Availability of sick child care or emergency care 4) Availability of quality day care resources Based upon the information collected, it was concluded that there is a demonstrated need for a child care program which includes provisions for sick child care. A final survey was conducted on July 5,1987 by staff of the Personnel and Health Services Departments in order to gain more finite information on the number of employees who would participate in a County-sponsored sick child care program. A representative sampling of parent-employees from both the Health Services and Social Services Departments were surveyed. In total, 311 responses were received from employees who have children under the age of twelve years. Complete survey results are provided in attachment A. The following summary highlights the significant findings of the survey: - 50% of employees surveyed have children within the age range of 6-12 years. - 73% of the respondents stated that either they or their spouse stay home from work when their child is ill. - 60% of the respondents state that they would utilize the services of a sick child care center if one were available to employees. - The preferred locations for a sick child care center are: Martinez (45%) Richmond (21%) Pittsburg (15%) Concord (14%) PROGRAM DESIGN, IMPLEMENTATION AND OPERATION The proposed staff for the sick day care program includes one full-time administrator with a background in early childhood education, who would serve as the Center Director; one full-time Nurses Aid and one half-time Registered Nurse responsible for screening the children for eligibility for admission to the center. Please note in the attached detailed cost estimate (attachment B) that approximately $17,000 has been allocated to the start-up costs for marketing purposes. This is based on an analyses of other hospital-based sick child care centers located throughout the country. The anaylsis which was conducted by the National Association for Sick Child Day Care (NASCDC) concluded that underutilization of sick day care centers can be attributed to poor marketing strategies. Therefore, the Contra Costa Health Plan (CCHP) Marketing Director has recommended that a comprehensive survey of potential users of the center be conducted in order to insure that the sick day care program is responsive to the user's needs. Consequently, we have included cost estimates for having a consultant assist in the survey and promotional activities of the program. The result of these activities would directly impact program planning. 2 - . i It is also recommended that program staff time be made available to provide worksite informational seminars about program content to the employees. We believe that this may " personalize " the center concept and would be an effective way to introduce the program to employees. Estimates are based on the operation of a 15 bed facility filled at 100% occupancy. The summary of start-up and annual costs is as follows: One-Time Annual Start-Up Ongoing Costs Costs I. . NONPERSONNEL COSTS A. Equipment/Furniture $ 5,539.00 $ ----- B. Misc. Furnishings, Toys, etc. 2,310.00 1,090.00 C. Medical Supplies 339.99 775.87 D. Food Costs ------ 10,058.00 E- Marketing Costs 16,750.00 6,400.00 F. Misc. Operating Costs 860.00 788.00 II. PERSONNEL COSTS A. Staff 3,024.00 571782.00 B. Benefits (23%) 695.52 13,289.86 TOTALS $29,518.51 $90,183.73 Given the above estimates, the cost of setting up the program and the first-year operations would be approximately $120,000 and the cost of operations for successive years would be $90,000. Using straight line depreciation of equipment and furniture over 10 years, the daily cost of operation per bed would be: 1. Equipment and Start-up Medical Supplies ($5,879/10 years) Annual Ongoing Costs. $ 588 90,184 $90,772 2. $90,772 divided by 15 beds results in an annual cost per bed of $6,051. 3. Given 260 work days per year, the working day cost per bed would be $23.27. Listed below are four options which Staff has developed for the provision of child care services for mildly ill children. A. LEASE AND REMODEL A RESIDENTIAL FACILITY The County may choose to lease a residential building and make the necessary modifications as specified in the California State Day Care Licensing regulations. Cost data was provided by staff of the General Services Department's Lease Management Division. Cost estimates are outlined below. - 3 - Lease and remodel of a typical 1,500 square foot residential building: I. PROJECT COST FOR DEVELOPMENT A. Remodel 1,500 sq. ft. @ $35/sq. ft. $ 52,500 B. Site Work 5,000 C. Project Design and Administration - 35% 20,125 of construction. D. Site Selection and Lease Negotiations 5,000 Total Project Cost 82,625 II. ANNUAL COSTS A. Base Rent $.80 X 1,500 sq. ft. $ 1,200/mo B. Utilities maintenance and Janitorial 1,500 sq. ft. X $.45 675 mo C. Total monthly costs $' 1,875/mo x 12 mos Total Annual Cost $22,500 If the County required the owner to remodel the premises according to County plans and .specifications, at the owner's expense, the County's cash outlay would be reduced by the remodeling cost ($52,500) and site work ($5,000) and the rent would be increased during the first five years by approximately $1,300 per month. If there is an immediate need for a facility, there are two buildings available now in. downtown Martinez that might be suitable for conversion. Both of the buildings have recently been remodeled and upgraded for office use. Since these buildings have plumbing, electrical, heating, etc. , which meet current building code requirements, the remodeling cost of $35 per square foot should be reduced somewhat. The locations are: - 611 Escobar Street - 4,000 sq. ft. $1,500 to $1,800 per month. - 815 Estudillo Street - 1.,962 sq. ft. - $1600 per month. B. LEASE A MODULAR BUILDING The County may elect to operate a child care facility along the lines of the San Diego County Child Care Center although some modifications will be nessecary to provide sick child care services. In 1981, the San Diego County Board of Supervisors donated two mobile trailers to serve as the child care facility. In addition, $50,000 was allocated to renovate the trailers in accordance with State licensing regulations. A child care task force was appointed by the Board of Supervisors subsequent to the completion of the trailer renovation. The task force was responsible for defining the program objectives, developing program content, and establishing a non-profit corporation to operate the center. It should be stressed that although the initial capital was supplied by the County, daily operations are conducted by a non-profit corporation which leases the center from the County for $1.00 per year. 4 - I The reduction of overhead expenses reduces the yearly operational. costs considerably and allows parent-employees affordable, assessable child care. The center opened on September 20, 1982 with a total enrollment of four children. Currently, there are 45 children enrolled on a full-time basis. The costs for child care are $65 per week for full-time care and $1.75 per hour for part-time care. The total start-up cost of the project was $60,800 (see attachment). The center is now totally self-supporting through revenue generated by the child care fees. Staff has conducted a rudimentary analysis of the cost of leasing a modular building to be located on County property. Monthly operational costs would be reduced significantly since no rent would need to be paid on County property. The estimated cost for a modular office unit with toilet and kitchenette amenities is as follows: 1. PROJECT COSTS FOR DEVELOPMENT A. Set up .and tear down $20,000 ,B. Site preparation, sewer, utilities, and handicap ramp . $38,000 C. Architect, engineer, contingency (35% of construction) $20,300 Total Start-Up Cost $780,300 II. ANNUAL COSTS A. Rental of modular office unit with toilet $1,210/mo. and kitchenette, base rent $.90 X 1,345 square feet. B. Utilities, maintenance and janitorial $605/mo. 1,345 square feet X $.45 C: Total monthly costs $1,815 Total Annual Cost $21,780 C. CONTRACT WITH A NON-PROFIT ORGANIZATION The County may choose to contract with a local non-profit organization to provide sick child day care services. There are obvious advantages to this type of arrangement. Many non-profit agencies have extensive experience in the area of child care and are also insured which may reduce the County's liability. Staff has already made initial contact with the West County YWCA in order to determine their level of interest in contracting with the County to provide the desired services. No cost data is available at this time regarding this option. 5 - D. DEVELOP A FACILITY FOR WELL AND SICK CHILD CARE The County may choose to operate a child care facility which provides "regular" child care services but which also has an adjoining area to accommodate mildly ill children. This option is particularly attractive as it would allow the County to serve more children since licensing requirements for sick children are quite restrictive. This is turn makes it possible for the County to provide a benefit for a greater number of employees while still addressing the severe deficiency in the area of sick child care. CONCLUSION There are certain operational considerations which must be addressed regardless of the. method selected for the development and implementation of a sick child day care program. The following ideas will be helpful in adjusting the child care program to employee utilization patterns and also in maximizing cost efficiency. - Implement an educational campaign so that employee's will know about and understand the program. - Design a sick child care program which is flexible so that it will meet the changing needs of its users. - Involve parents in program planning to ensure that the program is designed to serve the needs of its users. - Start with a relatively small program and add on more components as the demand for services grows. - Allow time for parents to assess the program and to make new arrangements before expecting full utilization of the day care center. Direct involvement by the employer in the area of child care services is advantageous to the organization as awhole. It can reduce turnover, decrease absenteeism, raise employee morale, and improve recruitment. Above all, employer-supported child care is a practical solution to a critical problem. 6 - ATTACHMENT #3 OFFICE OF COUNTY ADMINISTRATOR CONTRA COSTA COUNTY Administration Building Martinez, California To: Internal Operations CommitteEbate: June 6,1988 Supervisors Sunne McPeak & Tom Torlakson From: Claude L. Van Marter, Subject: ANALYSIS OF 5. 1885 Assistant Administrat (ACT FOR BETTER CHILD CARE SERVICES OF 1987 ) On March 29, 1988 the Board of Supervisors directed that a number of reports be provided to your Committee on June 20, 1988. Among these was an analysis of 5. 1885, the Act for Better Child Care Services of 1987 . This report fulfills that requirement. Introduction: 5. 1885 was introduced November 19, 1987 by Sen. Christopher Dodd and is co-authored .by 22 other Senators. The bill has been referred to the Senate Committee on Labor and Human Resources. The following analysis references section numbers as the bill was introduced. Section 1 - .Section 1 contains the short title, "Act for Better Child Care Services of 1987" , and the table of contents. Section 2 - Section 2 sets forth a number of findings regarding the need for additional child care resources and establishes as the purpose of the legislation to meet those unmet needs. Section 3 - Section 3 contains a number of definitions of words and phrases as they are intended to be interpreted in this legislation. Section 4 - Section 4 authorizes $2. 5 billion for federal fiscal year 1988 and such sums as may be necessary for fiscal years 1989, 1990, 1991 and 1992. Section 5 - Section 5 sets forth the formula by which funds which may be appropriated are to be allocated among the states. • First, up to $12. 5 million each fiscal year is reserved for the territories and possessions of the United States. • Second, up to $75 . 0 . million each fiscal year is reserved for transfer to the Secretary of the Interior to make payments for child care services for Indian Children on Indian reservations. • Third, up to $125 .0 million each fiscal year is reserved for grants to states which can demonstrate that all licensed and regulated child care services within the state satisfy the minimum child care standards set forth elsewhere in the bill and that all such child care services are subject to the enforcement provisions specified in the State plan. In these cases, a state can reduce its non-federal match from 20% to not less than 15% and the $125 million grant is available to make up the difference between the 15% and 20% match requirements. A S. 1885 (continued) -2- June 6, 1988 • The remaining funds (approximately $2, 287, 500, 000) are allocated to the states, excluding the territories and possessions, 500 on the basis of the number of children under the age of 5 in the State and 500 on the basis of the number of children in the state who are receiving free or reduced price lunches. These allocations are based on the proportion of such children in the State compared to the number of such children in all the states. In order to compensate states where the per capita income is below the national average the ratio of children under the age of 5 and the ratio of children receiving free or reduced price school lunches are adjusted by a factor resulting from dividing the per capita income of the United States by the per capita income of the state. However, this adjustment is limited to a range of . 8 to 1. 2. In other words, if the per capita income of the United States is $10, 000 and the per capita income in California is $13,000 the adjustment would be .7692 but is limited to . 8 . Likewise if the per capita income in the United States is $10, 000 and the per capital income in Mississippi is $6, 000, the adjustment factor would be 1. 667 but is limited to 1. 2. The Secretary of HHS is also authorized to reallocate funds determined not to be needed by a state to other states. If California' s share of the funds were to approximate 100, then the state would receive approximately $228,750, 000 each fiscal year under the provisions of 5. 1885, assuming the full authorization is appropriated. Section 6 - Section 6 requires the Governor to designate to the Secretary a lead agency for purposes of this legislation. The lead agency must have the capacity to administer the funds, to coordinate support programs and services with other involved state and local agencies and must have the authority to establish policies and procedures needed to carry out the purpose of the legislation. This section also spells out the duties of the lead agency. Section 7 - Section 7 requires each state, in order to receive funds under the legislation, to submit a plan covering a five year period of time. Section 7 spells out in some detail what must be included in the plan. The plan must provide that not more than 100 of the funds received will be used to administer the plan. The plan also must do all of the following: • Provide that all child care providers receiving funds are licensed or meet specified regulatory standards that are at least as stringent as those applied to other child care providers. • Provide that procedures will be established to comply with minimum federal standards, the development of which are provided for elsewhere in the legislation. • Provide that the state will not reduce the level of regulation of child care providers which was in effect on the date of enactment of the legislation, even if such standards already exceed federal standards. A , 5. 1885 (continued) -3- June 6, 1988 • Provide that federal funds provided under the legislation will only be used to supplement or increase the level of funding expended for child care programs (a maintenance of effort requirement) . • Provide for a low interest loan program and a grant program that will be available to nonprofit child care centers and family day care homes to help them establish programs and make renovations and improvements to existing facilities. • Provide that at least 75% of the funds will be used to provide child care services on a sliding fee scale and that at least 10% of this 75% will be used to extend part-day programs as described below. • Provide that no more than 150 of the funds will be used for activities to improve the quality and availability of child care for all families, including the development of local resource and referral programs, improving compliance with licensing standards, providing in-service training to child care staff and personnel in centers, ensuring that providers can meet the minimum federal safety and health standards and ensure that staff receive adequate salaries. • Provide that child care assisted with these federal funds will be reimbursed at the market rate in the area and that higher reimbursement will be provided for infant care, services to adolescent parents and care for handicapped children. • Provide that priority for services will go to children with the lowest family incomes. • Provide for parental involvement in state and local planning, monitoring and evaluation of child care programs and services. • Provide that within five years the state will have in place a licensing, enforcement and inspection program meeting specified standards. • Provide for the collection of specified data on the number of children being assisted and other related data. Section 8 - Section 8 spells out certain special rules for using the allotment of federal funds, including that funds are to be provided by contract or grant to eligible child care providers or by distributing child care certificates to parents of eligible children. Certificates can be used only when a resource and referral program is available to help parents locate child care services. In addition, as was noted above a minimum of 10% of the 75% of funds going to direct child care services must be used to enable part-day programs to extend their hours of operation to meet the needs of working parents and other parents of eligible children. Section 9 - Section 9 allows a state to apply for a planning grant in the first year where it cannot otherwise meet the requirements of the state plan. This planning grant cannot exceed one percent of the allotment that would go to the state. S. 1885 (continued) -4- June 6, 1988 Section 10 - Section 10 requires any state which is not in compliance with the minimum federal standards to use a portion of its allotment during the five year period to bring itself into compliance with those standards. No state can receive any further assistance under the act after five years after the minimum federal standards are released unless it is in compliance with those standards. Section 11 Section 11 requires the Governor to establish an interagency advisory committee on child care to assist the lead agency in carrying out its responsibilities. The Advisory Committee must have between 15 and 30 members and must include specified representatives. This section spells out the functions of the Advisory Committee and provides for the number of meetings, reimbursement of expenses, etc. Section 12 - Section 12 requires the Governor to establish a state committee on licensing of not more than 15 members with specific composition. This section defines the function of the state committee on licensing and requires the committee to make a report to the Governor within 12 months and defines particular items which must be included in the report. The Governor in turn must forward the report to the Secretary of HHS with the Governor' s comments. Section 13 - Section 13 requires the state to recognize and provide funding for resource and referral programs. This section defines the requirements for a resource and referral program in order to obtain recognition from the state. The section also specifies the information which a resource and referral service must gather and provide in order to be recognized as a resource and referral service. Section 14 - Section 14 requires that all child care providers complete at least 15 hours per year of in-service, continuing education and requires the state to ensure that such training is available. The section requires the state to make grants and enter into contracts with organizations to develop a system of child care training. The section spells out what an organization receiving such a grant must provide. The state is also required to establish a clearinghouse to collect and disseminate training materials. The section also defines the content of training which is to be provided. Section 15 - Section 15 requires the Secretary of HHS to establish and Administrator of Child Care to carry out the provisions of the legislation. This section spells out the duties of the Administrator. Section 16 - Section 16 provides for review of state plans by the Secretary for conformity with the legislation and notes what the Secretary must do when he finds a state out of compliance. Section 17 - Section 17 provides for the conditions under which payments are made to states including the 200 local match requirement. S. 1885 (continued) -5- June 6 , 1988 Section 20 - Section 20 prohibits any provider receiving funds under this legislation from discriminating against any child on the basis of race, color, national origin, etc. CLVM:cm ATTACHMENT #4 OFFICE OF COUNTY ADMINISTRATOR CONTRA COSTA COUNTY Administration Building Martinez, California To: Board of Supervisors Date: June 20, 1988 . Internal Operations From: Committee Subject: Child Care Legislation We recommend that the Board take positions on the following child: . care legislation: 1 . AB 1967 (Bates) - Last amended March 10, 1988. Provides, beginning in 1989-90, that all State-funded child care and development programs will receive an annual cost-of-living adjustment equal to the inflation adjustment applied to school district revenue limits. Status: Passed by the Assembly June 25, 1987. Passed Senate Education Committee March 16, 1988. Pending in Senate Appropriations Committee. Position: Support 2. AB 3145 (Cortese) - Last amended April 27, 1988. Establishes a grant program to assist counties and cities to fund the initial cost of a county or city child care coordinator or coordination group. Prohibits awarding a grant where a city or county already has a child care coordinator or coordinating group. Grants could not exceed $25,000 and require at least a 50% match, which can include in-kind contributions. For 1988-89, the Department of Education is directed to use $250,000 of specified carryover funds to finance the grants. Thereafter grants are to be funded out of the Budget Act. Status: Passed the Assembly Human Services Committee March 23 , 1988. Passed Assembly Ways and Means Committee June 9, 1988 by' 18 : 4. On third reading on the Assembly floor. Position: Support if amended to delete prohibition on counties and cities receiving funds if they already have a child care coordinator or coordinating group in place. Board of Supervisors June 20, 1988 Page 2 3 . AB 3148 (Cortese) - Last amended April 25, 1988. Appropriates $42. 5 million to expand the State' s preschool and subsidized child care programs. Specifies how the funds are to be distributed, but also indicates that if SB 1758 is chaptered the funds will be distributed as provided for in SB 1758 rather than as specified in this bill. Status: Passed Assembly Human Services Committee March 23 , 1988. Passed Assembly Ways and Means Committee on June 9, 1988 by 20: 2. On third reading on Assembly floor. Position: Support 4. AB 3961 (Ferguson) - Last amended April 5, 1988. Exempts from meeting the educational requirements imposed upon child care licensees any religious organization operating a child day care center. Status: Passed Assembly Human Services Committee June 15, 1988 by 7 : 0. Pending in Assembly Ways and Means Committee. Position: Oppose 5 . SB 304 (Presley) - Last amended June 29, 1987. Authorize the Board of Supervisors in Riverside County to impose a fee of up to $10 on civil filings for dissolution of a marriage, legal separation, or nullity of a marriage and on the response to such a petition to fund the operating expenses of a child waiting room within the courthouse for children in the courthouse for court appearances or whose parents are in the courthouse for family mediation services. Status: Passed by the Senate April 2, 1987. Pending in Assembly Judiciary Committee. Position: Support if amended to include Contra Costa County. 6. SB 722 (Hart.) - Last amended May 3 , 1988. Authorizes a tax credit equal to 30% of the cost, not to exceed $30, 000 per year, paid by a taxpayer for the startup expenses of establishing a child care program or constructing a child care facility in California to be used primarily by the children of the taxpayer' s employees or for contributions to Board of Supervisors June 20, 1988 Page 3 6. (continued) California Child Care information and referral services, or for both. The bill also authorizes a tax credit equal to 500 of the cost, not to exceed $600 for a contribution to a full-time qualified care plan and $300 for a contribution to a part-time qualified care plan made on behalf of any dependent of the taxpayer' s California employee. Status: Passed by the Senate January 21, 1988. Passed the Assembly Revenue and Taxation Committee May 2, 1988. Scheduled- for hearing in Assembly Ways and Means Committee June 22, 1988. Position: Support 7. AB 1763 (Wright) - Last amended January 20, 1988. Authorizes a tax credit of 500 of the cost up to $100,000 for startup expenses of establishing a child care program to be used primarily by the children of the taxpayers ' employees. Status: Passed by the Assembly January 28 , 1988 . Pending in the Senate Revenue and Taxation Committee. Position: Support 8 . AB 2736 (Hansen) - Last amended April 28, 1988. Authorizes a tax credit_ of 500 of costs incurred for child care assistance provided to employees, up to $2500 per employee. The same tax credit of 500 of costs incurred is available for providing information and referral services to assist employees in obtaining child care services. Also authorizes a tax credit for the cost incurred by an employer to construct or renovate real property to be used as a child care facility. This tax credit would be the lesser of 500 of the cost, $2,500 times the number of full-time employees, or $100,000 and would be taken at a rate of loo a year for 10 years. Status: Passed the Assembly Revenue and Taxation Committee April 18, 1988. Pending in Assembly Ways and Means Committee. Position: Support ATTACHMENT #5 CONTRA COSTA COUNTY REDEVELOPMENT AGENCY DATE: June 15, 1988 TO: Supervisor Sunne W. McPeak Supervisor T lakson INTERNAL ER IO S COMMITTEE FROM: Jim K nedy, D uty Director-Redevelopment SUBJECT: Sale Tax Transient Occupancy Tax Estimates- an ill BART Station Area. -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attached is an estimate of sales and transient occupancy taxes that may be reasonably expected to be generated from development in the Pleasant Hill BART Station Area. A summary of tax revenue estimates is as follows: Estimated sales tax and transient occupancy tax revenue accruing to the County of Contra Costa from the Pleasant Hill BART Station Area: L,_j Year Revenue Source 1990 1991 1992 1993 1994 Sales Tax $20,805 $35,805 $97,055 $835,555 $859,555 Transient Occupancy $522,151 $532,699 $543,248 $1,123,880 $1,862,338 Tax TOTAL (Estimate) $542,956 $568,504 $640,303 $1,959,435 $2,721,893 JK:krc Attachment ra25/estimate.mmo CONTRA COSTA COUNTY COMMUNITY DEVELOPMENT DEPARTMENT DATE: June 9, 1988 TO: Jim Kennedy FROM: Gerald E. Raycraf SUBJECT: Pleasant Hill BART Sales Tax Revenues ----------------------------------------------------------------------- ----------------------------------------------------------------------- Per your request, I have prepared an estimate of anticipated sales tax and Transient Occupancy Tax Revenues in the Pleasant Hill BART Station Area. Sales Tax Revenues by Year and Type Spec. Type Amount of Taxable Gross Plan of Retail Sales/ Taxable County Year Area Retail l (sq.ft. ) sq.ft./yr2 Sales/Yr Portion/yr 3 Generated 4 10B CS 440 $250 110,000 1,100 1990 10B R 5,250 300 1,575,000 15,750 1990 10B CS 1,582 250 395,500 3,955 1990 15 R 5,000 300 1,500,000 15,000 1991 1 CS 18,500 250 4,625,00 46,250 1992 7 & 8 MS 10,000 150 1,500,000 15,000 1992 7 & 8 R 4,000 300 1,200,000 12,000 1993 7 & 8 CS 600 250 150,000 1,500 1993 12 & 13 CR 50,000 400 20,000,000 200,000 1993 12 & 13 MS 350,000 150 52,500,000 525,000 1993 12 & 13 R 4,000 300 1,200,000 12,000 1994 l0A R 4,000 300 1,200,000 12,000 1994 1. R = Restaurant = $300 taxable sales/square foot/year CR = Convenience Restaurant(s) _ $400 taxable sales/square foot/year CS = Convenience Retail Shopping = $250 taxable sales/square foot/year MS = Mall-type Shopping = $150 taxable sales/square foot/year 2. Source: Richard Berksen, Economic and Planning Systems 3. County Sales Tax Revenue is calculated at 1% of Gross Taxable Sales 4. Represents first full year the project may produce Sales Tax Revenue Sales Tax Revenue Cumulative by Year 1990 1991 1992 1993 1994 1,100 1,100 1,100 1,100 1,100 15,750 15,750 15,750 15,750 15,750 3,955 3,955 3,955 3,955 3,955 20,805 15,000 15,000 15,000 15,000 35,805 46,250 46,250 46,250 15,000 15,000 15,000 97,055 12,000 12,000 1,500 1,500 200,000 200,000 525,000 525,000 835,555 12,000 12,000 859,555 GR6/salestax.rev . I Transient Occupancy Tax (TOT) By Year Specific Year # of Rooms Total Room Tax 3 Plan Area Generated Taxed Receipts/Yr Generated 10B 1990 170 -$6,142,950 $522,151 7/8 1993 175 6,706,875 570,084 12/13 1994 216 8,435,880 717,050 1. Based on 70% occupancy rate.* 2. Room Rate based on $90-$110 range in 1988 is assumed to be:* 1988 $ 95 1990 99 1993 105 1994 107 3. TOT is calculated at 8.5%.* *Source: Richard Berkensen, Economic and Planning Systems. Transient Occupancy Tax Cumulative, by Year 1990 1991 1992 1993 1994 $522,151 $532,699 $543,248 $ 553,796 $ 564,345 570,084 580,943 717,050 522,151 $532,699 543,248 $1,123,880 $1,862,338 GR6/salestax.rev Specific Plan Area Assumptions Specific Plan Area 1: 18,000 square feet of convenience retail is proposed with the Park Regency Project. While some of this will most likely be located in Area 3, for discussion purposes, all is assumed to be located in Area 1. Specific Plan Area 2: None - Previously developed. Specific Plan Area 3: See Area 1. Specific Plan Area 4: None. Specific Plan Area 5: None - Previously developed. Specific Plan Area 6: None - Southern Pacific ROW. Specific Plan Area 7 & 8: One 250 room luxury hotel with a restaurant, a small amount of convenience retail and one floor level of retail within an office building is assumed. This appears to reflect the developers latest proposal . The restaurant- is assumed to be 4,000 square feet; the convenience retail within the hotel is assumed to be 600 square feet; and the floor level retail within the office building is assumed to be 10,000 square feet. Specific Plan Area 9: None. Specific Plan Area 10A: A 4,000 square foot restaurant is assumed within one of two office buildings. Specific Plan Area 10B: A 5,250 square foot restaurant, and 440 square feet of convenience retail is located within the 242 room Embassy Suites Hotel . 1,582 square feet of retail has been approved adjacent to an office building. Specific Plan Area 11: None - BART parking structure. Specific Plan Area 12 & 13: A 4,000 square foot restaurant is assumed within one 308 room hotel . 350,000 square feet of retail and 50,000 square feet of convenience restaurants are assumed within a retail complex. Specific Plan Area 14: None. Specific Plan Area 15: A free-standing 5,000 square foot restaurant is assumed. Specific Plan Area 16: None - Southern Pacific ROW. GR/jb GR6/salestax.rev ATTACHMENT #6 OFFICE OF COUNTY ADMINISTRATOR CONTRA COSTA COUNTY Administration Building Martinez, California Internal Operations To: Committee ( Supervisors Date: June 10, 1988 McPeak and Torlakson) Phil Batchelor, County-Owned Property From: County Administrator ./ '- j/�j Subject by D. Bell, Deputy %- Attached is a report prepared by the Public Works Department concerning County-owned property. The report is compiled in response to the Committee request for a review of property that might be suitable for a variety of entertainment projects to raise revenue for child care programs. Most of the sites included on the Public Works list are not well suited for such use because of topograhic considerations or poor location. My staff and Public Works staff will be available to discuss each of the listed sites with your Committee. DB: lmj Attachment cc: Mike Walford, Public Works Director PUBLIC VKKW DEPART CONTRA COSTA COUNTY DATE: June 9, 1988 TO: D. Bell, Deputy County Achnini for FIM: J. Michael Walford, Pubic Works D' r SUBJECT: Surplus County-owned Space As you requested I have had the Real Property Division search the entire list of County-am-)ed property to determine if the County owns any property which might be suitable for develcpnent of an amusement and/or recreation project for children and young people. The criteria used were a-minimum area of three acres and that the property is either currently vacant or has 3+ acres of unused land. We did not consider current zoning or General Plan designation. We also did not include land purchased with special district funds which would have to be paid off for the County to use the property. The attached list and maps show the properties identified. It is our opinion that none of these properties is suitable for the proposed use, but they are the only vacant (General Fund money purchase) properties that the County owns of the required size. JMW:PBG:rs bell.t6 Contra Cosa County RECEIVED in 101988 Office of Cern!" Administrator VACANT COUNTY PARCELS OVER 3 ACRES IN SIZE ASSESSOR'S PARCEL NO. SIZE IDCATION PROPOSED USE 033-130-017 3.64 acres Delta Road, Future corpora- Oakley-Brentwood tion yard 078-120-011 154 acres Marsh Creek Rd. Cattle grazing (Approx. 60 Near Morgan for County Jail acres in use) Territory Road Farm Clayton-Brent- wood 125-010-016 490 acres Concord Avenue Buchanan Field 25 acres (Funds generated (Restricted use) available for on B.F. must go non-aviation use to B.F. per FAA ex t sales tax and possessory interest tax.) 149-230-005 8 acres Oak Park Blvd., Diablo Valley Pleasant Hill Justice Center former school leased to R various tenants 155-280-006 15 acres Glacier Drive @ County Offices (approx. 10 Muir Rd., (Community acres in use) Martinez Developnent) 159-140-047 11.24 acres Blum Road, Corp yard site 159-150-001 13.67 acres Martinez (2/3 Rd. Fund 150-049-050 +3 acres 1/3 G.F.) 355-010-004 12.02 acres 0mudngs Skyway. None (Road Fund) & Hwy. I-80 Crockett 355-160-011 6.9 acres - 3 San Pablo Scenic view- acres usable Avenue - point (Road Crockett Fund) The above list does not include land purchased with special district funds, such as the Flood Control District, Fire Districts, etc., which would have to be paid back for the County. to use the property. PBG:rs .t6 4 O M V x ' civ _,,.,� Sallooi h 4 a '3RV ��-- --. 52�3'1'13S _ ,�+ g Mu CL cj� 9n l0 0 - 1 c "i s Q a CS N 00 a , to +9 0 � Q '•� /f i a. M. Q � � cv COit y= LLJ O CU O 2 Atsis rww^ + eft o..v-.._yt- �"' a C'� .�.:w�`_ �•. a� : (/yam,}'fie 1'1 � CO Q C.) M �, j .. 4. �AT i_`v .0 ..�/.^'.M l�iV f' •m \/ k � ri•SII iC•1iZ �� � f'lP� „;.4C1/,.s } —�— �N7' CR£EKui ': r•r,_... r .. O ANNEL Ln OL:cna rr- pNtfiO4CO2 2 O C31Y'1 �^"J•' yc.,..:t^~ -Y., .... - - y t'J i� CPAtr to Cj i J• {(')• �w > 100, 2 0 E 0 fSC I on to u Cd Z 41 to, ug a Cr co (r- N IT z "T ;I-C\J tc) CL q:a-q: snd C\j (M co Q:00 Lo I- w 1 .CO OD PO co K-) K) AV. 0% LJ co t1 N to C\j WRGAN 0 0 ;3-N M 0i oC5 ro ti rG 2i 2 M CL L-L N po ro co V) All w wd, 4 3 0 � r r O C4 A h0 � � iD`c1 r+ C V o'to a 0119 '� Y {n ♦� 14 Y r s O W Z f� d Ic.CC N co 4 � •� �dJ •� yid� ,0 few 1 w ` ' N 0 P N 0 'd .K -. 7 (20N 71L N , 0 . 6" G�e"f Jn37J 1: r� 0 � v u yr e~j6 O C x t U ` N � no L,I J ti Y co Z co 1 r Y x K - +• �' hrry OiL qm —0t) "�♦ Olt M G e 17 f Q+ '3A• VIS343 31NOw �a a cr m p N a° 1 2 P �y 0 `- Rte, U') co CV . • n L Q 'RJ'r 4 M.11 sr, L�4P '•r.I�"'•ff 4• y N1 h'm6 1— "b �a �t•o, .. ysr CV N O T � e 3 • r j � ♦X Go � O W �Fxj \ � •• � Y Y to s� �m %• i. J t ��• om�Q � aC_� Q �' 1 r• F-NY}N w �, !" t N M Y N _ -{I �Y r DO) Cb • o a ci to W U-) .t <�..y 3 _ CV „ (^*i � M ._� m h 0y .a•..sr F M d n h �„ N - i NMS N. � «•r � i Jin J ` � a< M •�.^v .. \ �\ F it m • \ " y 9Z'$CZ/ QNQ �0. Z " Q N\ \ \ r L i CK) M�• u o \ \ IZ �ti M Y's c. , d v —+� °s ars c^:Qr _ ••• 6 t or- N } d d � r d O .n d �~`L d as d,, CA q V� Z � �3 .y - _ r ma LLJ a o ds .fi Faiw' V V 1 z .y W \\ r .s ^ of M1w �N" •1 �1•�^• ,G< . * 1 end 076y�y � f f ATTACHMENT #7 SOCIAL SERVICE DEPARTMENT CONTRA COSTA COUNTY GAIN CHILD CARE REPORT TO BOARD OF SUPERVISORS JUNE 20, 1988 The contract for Child Care Administration has been awarded to Community Services Department. We are pleased with this outcome because the Community Services has offered several other services to our GAIN clients aside from child care referral services . Among the services they will provide are: 1 . Assistance with child care services for 6 months after the GAIN participant secures employment. 2 . Development of special plans for children with "special needs" . 3 . A data base with a printed directory of all licensed child care providers indexed and sorted by each category. 4 . Development of sick child care facilities . 5 . Provision of services by nutritionist, speech therapist, psychologist, and special needs coordinator to work with GAIN participants to develop special services for GAIN children with special needs . 6 . Head Start services for GAIN participant ' s children. Community Services will begin their office hours at the three Social Service GAIN offices on June 22 , 1988 . They will be on- site once a week for four hours to interview GAIN participants about licensed child care and to place the participant' s name on all subsidized child care waiting lists . Since May 9 , 1988 , when GAIN began in Contra Costa County, the GAIN Case Managers have approved, or are in the process of approving 27 child care plans . To date, there have been no GAIN participants who have been unable to participate in GAIN due to lack of child care. Child Care Council raised an objection to our department' s method of paying for GAIN child care. The Council contends that child Gen 9c (New 3/86) A page two care payments should be made directly to the provider of the care. Because GAIN is a new program and we only have estimates on how many GAIN participants will need child care for their children, we chose to have our GAIN Case Managers authorize the payments directly to the GAIN participant. In this way, our department will be able to more closely monitor child care costs , enabling us to have better control of that segment of our GAIN budget. We also believe that because the purpose of the GAIN program is to encourage self sufficiency, the GAIN participant should take responsibility for making their child care payments . We will have a procedure whereby we can issue vendor payments or two party checks to the child care provider should the GAIN participant fail to pay the provider. We plan to reevaluate this policy after GAIN has been operating in our county for a year. CONTRA COSTA COUNTY COMMUNITY SERVICE DEPARTMENT CHILD CARE DISCOVERY PROGRAM TELEPHONE 646-5545 Hi There: The Community Services Department welcomes you to the GAIN Program. Our role is to help you find Child Care. We manage the Child Care Discovery Program. We will use our skill and our computer to match your need for childcare with a nearby child care provider. After you have signed up with the Child Care Discovery Program you may call us at any time of the business day for additional referrals or just for advice about childcare. Our telephone number is 646-5545 (you may call collect) . *Ask for"Child Care Discovery". We will meet you at any of the places listed below or By Appointment we will come to a location near you. Antioch Social Services Office Monday Afternoons Brentwood 125 Oak Street (United Council) Friday Afternoons Concord 2425 Bisso Lane, in Stanwell Park All day Tuesday & Thursday Martinez . Muir Road, Social Services Office Monday Afternoons Richmond Social Services Office Wednesday Afternoons IDA DANIEL BERK BoB LoFASo Executive Director Manager,Discovery Program Contra Costa County RECEEIVED SOCIAL SERVICE DEPARTMENT CONTRA COSTA COUNTY JUN 1 '.11988 Offfc,o of Covn:tY Adr:i;.^,i trator TO: Phil Batchelor DATE: June 9, 1988 County Administrator FROM: James RydingswordV/ CC: Board of Director Supervisors SUBJ: CHILD CARE COMPONENT OF THE GAIN PROGRAM On May 24, 1988, Tom Torlakson forwarded to our Department for response, a letter from Teri Dean, Co-President of the Contra Costa Child Care Counsel. Attached is a copy of Ms. Dean's letter, Supervisor Torlakson's request, and our Department's response. In her letter Ms. Dean raised several questions regarding GAIN Child Care. Supervisor Torlakson requested that our agency respond to Ms. Dean's letter with a copy to his office. This we have done. In addition, we are forwarding copies of Ms. Dean' s letter and our reponse to the other four Supervisors. Should you have any questions or comments regarding our response to Ms. Dean's letter or on GAIN Child Care in general, please contact me. JR:dp Disk:9 PHIL.DOC Gen 9c (New 3/86) SOCIAL SERVICE DEPARTMENT CONTRA COSTA COUNTY e TO: Tom Torlakson DATE: June 9, 1988 Supervisor, District 5 FROM: James Rydingsword CC: Phil Batchelor Director County Administrator SUBJ: CHILD CARE COMPONENT OF THE GAIN PROGRAM ----------------------------------------------------------------- ----------------------------------------------------------------- On May 24, 1988, you asked our Department to respond to a letter you had received from Teri Dean, Co-President of the Contra Costa Child Care Counsel. Attached is our response to Ms. Dean's letter. We are also forwarding our response to the other Board members and to Phil Batchelor, County Administrator. We hope that our letter addresses all of the concerns that Ms. Dean raised. If there is any other information or any questions that you might have about our response to Ms. Dean' s letter or on GAIN Child Care in general, please contact me. JR:dp Disk: 9 Tom Gen 9c (New 3/86) Please reply to: Social Service Department Contra 2401 Stanwell Drive,#200 James A. RydingswordCoC`ta P.O.Box 5488 Director Costa Concord,California 94524 County June 3 , 1988 Teri Dean Co-President Contra Costa Child Care Council 3020 Grant St. Concord, CA 94520 Dear Ms. Dean: Your letter of May 5, 1988 to Supervisor Tom Torlakson regarding GAIN child care has been referred to me for reply. 1. In your letter you expressed concern over the collection of State Department of Education (SDE) fees. You stated that the child care providers are reluctant to give up these fees to expand the GAIN Child Care Administration contractor' s child care services or resources. State GAIN regulations require the county to ensure that there is a mechanism for collecting fees from GAIN participants receiving GAIN child care subsidies. The fees collected must be used to expand child care services or resources (EAS 42-750.25 copy attached) . Our county's GAIN plan envisioned that SDE fee collections paid to child care providers by GAIN participants could be utilized to accomplish the expansion of child care services in this county. How the contracted agency accomplishes this is left up to them. Thus, if the contracted agency decides to allow the subsidized centers to use the fee money to serve more children, that would meet our requirements. However, since our GAIN participants are AFDC recipients we expect very few, if any, GAIN participants will be paying SDE fees. Thus, this issue is a remote one and may never occur. GAIN legislation also requires that local "resource and referral programs shall assist the county welfare departments to determine the child care needs of Greater Avenues for Independence participants, provide them with a listing of available child care services in the service area , and facilitate the efforts of county welfare departments, school districts, local child care providers and parent groups for the expansion of child care services. " 2 . Your second area of concern was with the GAIN participant being responsible for paying the child care provider with GAIN child care funds. You stated there is higher risk that GAIN participants will not pay the child care providers. You also stated that the GAIN child care administrative agency would be placed in an awkward position of making referrals and not being able to ensure that providers will be paid. We are equally concerned about child care providers being paid for their services in a prompt and timely manner. GAIN can issue advance payments for supportive services. Therefore, in cases where it appears necessary for the success of a particular GAIN participant's plan, our department could make advance payments for child care. However, we must be cautious with advance payments as they could lead to overpayments, putting the county in jeopardy of having to use county funds to cover the costs. We are certainly sympathetic to the needs of the child care providers and are committed to cooperating with them in any way possible. In our department's experience, it does not appear that GAIN participants will have any more of a problem paying their child care providers than the general public. GAIN participants will tend to be motivated towards successful GAIN participation and compliance because of the program' s philosophy. We will, however, be exploring these payment issues further. 3 . Your last concern was that the County was seeking to reimburse the child care administrative agency on a Unit Cost Reimbursement basis. Our GAIN budget is based on a fixed unit fee. That is how the state pays us. To be fiscally sound we must also pay the Child Care contracted agency on a fixed fee basis. The services we expect from the contracted agency include placing all referred GAIN clients on all appropriate SDE waiting lists, referring clients wanting licensed child care to licensed providers, and developing the child care plan with all clients wanting licensed care. Our department's staff, in the GAIN group orientation session, provides counselling on how to choose child care. The developing of on-site care with county school districts and licensed child care slots is a contracted goal. Our. RFP stated that one of the objectives of the program would be to pursue the development of school on-site child care. It is regrettable that the Child Care Council chose not to submit a proposal to us for child care administration. I hope this letter answers your concerns. Sincerely, y in wor rector ��aes, ial Sery e Department cc:Tom Torlakson, Supervisor, District 5 Tom Powers, Supervisor, District 1 Nancy Fanden, Supervisor, District 2 Robert Schroder, Supervisor, District 3 Sunne McPeak, Supervisor, District 4 Phil Batchelor, County Administrator George Roemer, Director, Justice System Programs JR:dp NONLINKING FACTORS OF PUBLIC ASSISTANCE ELIGIBILITY Regulations GREATER AVENUES FOR INDEPENDENCE 42-750 (Cont.) ( 42-750 SUPPORTIVE SERVICES (Continued) 42-750 \` (b) The regional market rate means care costing no more than 1.5 standard deviations above the mean market cost of care for that region. (1) The mean market cost for care in a region shall be determined based on a statistically valid survey of the rates established by child care providers for pr'i'vate clients. (A) The regional market rate shall be updated every two years with recent survey data. .234 Reimbursement to child care providers for GAIN participants shall not exceed the fee charged to private clients for the same service. Reimbursement shall be made at a rate lower than that charged to private clients for the same service, if the child care program agrees to charge a lower fee. .235 GAIN funding will be available to pay for child care services when the child is temporarily absent from care, if it is agreed to pursuant to .223(g) above. Payment may be made for temporary absences only for the following verified reasons: (a) Illness or quarantine of the child; (b) Illness or quarantine of the parent; (c) Family emergency; (d) Court ordered visits with a parent or other relative of the child; or C (e) Other reasons approved by the CWD. .24 If a GAIN registrant terminates AFDC dependency due to unsubsidized employment, payment for child care services in accordance with Section .221 above shall be available for a transition period of three months. (a) This transition period commences immediately following the discontinuance of AFDC. .25 The CWD shall ensure that there is a mechanism for collecting fees from' 4_ participants receiving GAIN child care subsidies in _a_c_cordance__wi_th__ the# L most recent version of the SDE Family Fee Schedule. o —--- _ fee is charged-tfVa participant- s-f-ami-ly--i-n come;--tne-ludi-ng tke- AFDC sr_a-nt,_1_s-1_e_ss than 50 percent of_ the annually adjusted state median. ,income. - -.._ _ .251 The fees collected by the CWD, or agency contracting with -the CWD, ---shall be used to expand child care services or resources. CALIFORNIA-SDSS-MANUAL-EAS MANUAL LETTER, NO. EAS-86-05 Effective 6/13/86 Rev. 94 replaces Issue 27 Tom Torlakson `' 300 East Leland Rd. Supervisor, District Five ?� y:;;a Suite 100Pittsburg,California 94565 Contra Costa Count �-` (415 County ) 427-8138 -Board of Supervisors r DATE: May 24 , 1988 , TO: James Rydingsword, Director, Social Services FROM: Tom Torlakson, Supervisor, District V i 'I . i SUBJECT: CHILD CARE COMPONENT OF THE GAIN PROGRAM Attached is a copy of a letter dated May 5, 1988 , from Teri Dean, Co-President of the Contra Costa Child Care Council. Ms. Dean raises several questions regarding the child care component of the GAIN program. I would appreciate your responding to Ms Dean' s letter, with a copy to my office. Thank you for your assistance in this matter. TT:cad cc: Vicki Glover Attachment s- /terYf RECEP ED i ; CONTRA cc c COSTA Child Care Cou c ni l May 5, 1988 Supervisor Tom Torlakson 300 E. Leland Rd. Pittsburg, CA 94565 Dear Supervisor McPeak;, Our agency (and our two ancestor ijeen in discussions with the Department of Soc_a.L Services about the child care component of the GAIN program for well over a year. We conceptually support the program and would like to work with the Department of Social Services to insure the child care needs of GAIN participants are addressed in a manner which reflects sensitivity to both the families and the child care providers. Unfortunately, at this point in time, that appears impossible. There are several items in the Request for Proposals for Child Care Administration under GAIN which pose serious obstacles to our participation in this program. Specifically, they are as follows : 1 . Fees According to the RFP issued, the Child Care Administration agency is to "for those GAIN participants receiving California State Department of education (SDE) child care subsidies , collect fees in accordance with the most recent version of the SDE Family Fee Schedule. These fees shall be used to expand Contractor ' s child care services or resources. " While fees are not part of the cost of care ( the state reimburses the full cost of care) , subsidized centers use the fee money to provide an increased level of service - either more days or serve more children. Therefore, they have expressed extreme reluctance to just give up this money. 1 ADMINISTRATION I I WEST BRANCH EAST BRANCH IJ SOUTH BRANCH CENTRAL BRANCH 3020 Gran!513727 Band;Avenue 300 r a,,Leland b 106 300n E-ecuGve Park.ag c t 3020,ran;Si Co^co•d.CA 94520 Ro—i,ond.CA 94805 �s:wg.CA 94565 San Ramon,CA 94563 Concerti,CAP.c20 t4151676-5442 (415)233-KIDS 1415;427-KIDS (415)8300508 (415) 1415,676-6177 -rl„Uiiior Also, there is some question about the county' s authority to determine the use of this money since it comes under the auspices of a program's contract with the state. (There is no question about the County's authority to determine the use of the fees when the child's care is being subsidized with GAIN subsidy money, only once a child has moved into a SDE subsidized slot) . 'l. Payment Mechanism Again, according to the RFP issued, "The participant will be responsible for paying the provider with County-authorized VAIN child care funds. " This is the major problem in the whole plan. It poses two major difficulties - a) If a provider agrees to accept the children of GAIN participants, it places them at higher risk of not being reimbursed for the services they provide. While it has been suggested that this procedure will merely put GAIN participants on an equal footing with other full fee paying parents, this is clearly not the case when they will be paying providers retroactively, anywhere from six to eight weeks after care -has begun. Parents who pay providers directly are virtually always required to pay before care starts . However, our concern is not just for the providers . In fact our informal discussions with providers indicate they will simply refuse to accept children of GAIN participants under these conditions . Thus, we are also concerned that parents will be unable to participate in the program or be forced to use exempt care, which may not be their preference. b) It puts the Child Care Administration agency in the awkward position of making referrals (almost placements ) and not having the where-with-all to insure that the providers are indeed paid. Every time we 've raised this issue with county staff their response has been that their attorney has advised them that they cannot pay providers directly because it would mean that the provider might be construed to be a county employee. Please be clear - no one is suggesting that the county pay the providers. We are suggesting that the contracted agency pay the providers - just as we do with all of our other subsidy programs, including PIC which is a county contract. 2 As far as we have been able to determine, no other Bay Area county is proposing the payment mechanism that Contra • Costa County is proposing. 3 . Unit Cost Reimbursement The County is seeking to reimburse the contracted Child Care Administration agency on a Unit Cost Reimbursement basis. This ; means that the agency would be paid on a 'per referral' basis. Which might be OK, if referrals were all the agency is being asked to do. However, that is not the case. The county is seeking parent education and counselling for all GAIN participants - whether or not they choose licensed child care and need referrals - as well as, some significant resource development. (The Child Care Administration agency is to "pursue the development of on-site care with County school districts" and "develop and monitor sufficient licensed day care slots pursuant to the Child Care Needs Assessment in the GAIN Plan. " None of these activities is directly related to actual child care referrals and, therefore, to be reimbursed on a per referral basis would not be financially possible for our agency. Please let me underscore the fact, that we want very much to work with the County on this project. However, as currently constructed, we do not think that what is being proposed is in the best interests of parents and children, or child care providers. Nor, can we maintain our own fiscal responsibility by entering into such a unit cost reimbursement contract. I will be in touch in the next few days to answer any questions you might have. As always, thank you for your ongoing support and understanding of the needs of children and families, as well as, child care providers . Sincerely yours, Teri Dean Co-President 3 $.00TAL SERVICE DEPARTMENT CONTRA COSTA COUNTY TO: Sunne Wright McPeak DATE: June 9, 1988 Supervisor, District 4 FROM: James Rydingsword CC: Phil Batchelor Director County Administrator SUBJ: CHILD CARE COMPONENT OF THE GAIN PROGRAM ----------------------------------------------------------------- ----------------------------------------------------------------- On May 5, 1988, Teri Dean, Co-President of the Contra Costa Child Care Counsel, sent a letter to Supervisor Torlakson asking several questions about the Child Care Component of the GAIN program. Supervisor Torlakson requested that our office respond to Ms. Dean. Attached is our response to Ms. Dean's letter. If in your review of the correspondence you have any questions or comments about GAIN Child Care, please contact me. JR:dp Disk: 9 CCCOMP.DOC Gen 9c (New 3/86)