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Home My WebLink AboutMINUTES - 05011990 - FC.1 FC.1 TO: BOARD OF SUPERVISORS Contra ?r \. CostaFROM: Finance Committee ;� f Count DATE: May 1 1990 SUBJECT: CHILD CARE FINANCING ISSUES SPECIFIC REQUESTS)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: 1 . Consider increased funding for the child care broker function in fiscal 1990-91, if private sources of funds cannot be secured by the Child Care Council. 2. Refer the issue of fully funding the child care broker function with transient occupancy revenues for fiscal 1991-92 and 1992-93 to the Finance Committee next year. 3 . Request the Child Care Council to coordinate child care efforts with the cities, pursuant to the designation of the Council as the County' s child care coordinating body by the Board of Supervisors. 4. Direct the County Administrator to prepare a plan for financing a Child Care Affordability Fund as a cooperative venture with the Cities and report back to the Finance Committee on May 21. This plan will include information on: a. the type of child care activities that Cities are currently funding and the amount of funding; b. alternative approaches to establishing this cooperative venture; and C. the financial needs of other children programs currently funded by the County. CONTINUED ON ATTACHMENT: X _YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF OARD COMMITTEE APPROVE OTHER SIGNATURE(S): Tom To lakson ACTION OF BOARD ON May 1, 1990 APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS(ABSENT I ) 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: ATTESTED �Q9O Supervisor Sunne McPeak Karl Wandry, Community Development PHIL BATC OR,CLERK OF THE BOARD OF Child Care Council SUPERVISORS AND COUNTY ADMINISTRATOR Child Care Task Force County Administrator M382 (10/88) BY s•�,�C� 6 DEPUTY -2- BACKGROUND: This report addresses several Board referrals on child care. On February 27, the Board directed that the issue of financing the broker function be discussed again by the Finance Committee, to ensure that child care organizations have an opportunity to present their needs and concerns. Also, on January 23 , the Board referred to the Finance Committee the issue of whether to establish a Child Care Affordability Fund, using $250,000 from future transient occupancy taxes. A meeting was held on April 4 , 1990, to discuss the issues of child care broker function and the Child Care Affordability Fund. Those attending included representatives from the Contra Costa Child Care Council, Supervisor McPeak' s office, the Child Care Task Force, the Community Development Department and the County Administrator' s Office. The purpose of the meeting was to clarify the issues and discuss what is needed so that the Finance Committee will be fully aware of all of the issues. Child Care Broker Funding The following is a display of the funding that has been committed by the Board of Supervisors in previous actions: Revenue Source 1989-90 1990-91 1991-92 1992-93 Co. Housing Bond Trust Fund $10,000 $10,000 $10, 000 $10, 000 Developer Fees 10,000 10,000 Grants 22,500 Other Funds 15,000 County TOTS - 25,000 25, 000 $42,000 $35,000 $35,000 $35,000 Issues 1. The Child Care Council is requesting full funding of $52,000 for the broker function from the County for fiscal year 1990-91, as described in Attachment A. On February 27, 1990, the Board of Supervisors committed $35,000 total funding for fiscal year 1990-91 and directed the Child Care Council to continue their efforts to seek grants for funding of the broker function. The Council indicated that they have applied for grants from United Way and Stulsaft for 1990-91. There is a recommendation to the United Way Allocation Committee to grant $15,000 to the Child Care Council for the broker function. If this is approved, it would bring the total available to the Council for 1990-91 to $50,000. 2 . The Child Care Council indicated that the Internal Operations Committee intended to fully fund the broker function from TOT from hotels built in the Pleasant Hill-BART Station area. Staff reminded the group that at that time more than one hotel was being planned in the area which would have afforded additional TOT. The March 29, 1988 Board Order stated, "Indicate the Board' s intent to continue funding for the Child Care Council' s coordinating role from the TOT from any hotel built within the Pleasant Hill-BART Station redevelopment project area. " Since the total available TOT from the Pleasant Hill-BART Station is unknown, it is recommended that the Finance Committee consider increasing the future funding of the broker function from available TOT next year. This will allow the Committee the opportunity to review the County' s financial status and to determine if there is federal, state or private funding available. -3- 3 . At the February 12, 1990 Finance Committee meeting, Supervisor Torlakson recommended that the Child Care Broker coordinate his efforts with each of the cities in order to avoid duplication of effort, keep informed of all projects in the County for better coordination efforts. He requested the Child Care Council to seek co-funding from the cities for the broker position. The current contract with the Contra Costa Child Care Council for the broker function does not require this level of effort. The tasks set out in this contract deal with facilitating the intent of County Ordinance 88-1 with developers (see Attachment B) . To increase the role of the broker to include coordination with the cities would necessitate an increase in cost according to the Child Care Council. The estimated increase is $15,000 per year. However, even though this is not viewed as a role of the broker function, the Contra Costa Child Care Council was designated as the child care coordinating body for Contra Costa County. As such, the organization was directed to" . . .increase and direct resources from all parts of the community to the development of child care services. It is intended to support and expand existing direct or indirect services, not to duplicate them. " On February 27, 1990, the Board requested the Child Care Council coordinate the broker' s efforts with the cities and determine if there is a potential for co-funding the position. This is consistent with the designation as County coordinating body. Child Care Affordability Fund The Board has approved in concept the establishment of a Child Care Affordability Fund, but has not adopted a financing plan for the Fund. An historical account of the Board' s action appears in Attachment C. This year on February 27 , the Board directed the Child Care Council to contact cities relative to increasing city TOT to help finance a Child Care Affordability Fund. The proposal would establish a $250,000 fund in fiscal 1990-91, using future TOT revenue from the Embassy Suites Hotel near the Pleasant Hill BART station. Community Development revenue estimates from the hotel appear in Attachment D. An estimated 60-80 'children would be served by this fund from throughout the County. However, the Child Care Council estimates that over 4,000 families cannot afford the going rate for child care for one pre-school child. Currently, a Child Care Fund of $336,000 is administered by the Council and is described in Attachment E. Pending federal and state legislation may assist in addressing child care needs in the future. In Washington, a bill will go to Conference Committee soon for 1990-91, which will expand the Head Start Program into a day care program, increase social service grants for care of children in low-income families and provide funding to states to improve the quality of child care. In Sacramento, AB1853 would encourage counties and cities to jointly prepare and submit community child care plans to a state child care partnership council. The bill would declare the intent of the legislature to provide funding for approved County plans in the 1991-92 fiscal year. The Board of Supervisors will be facing many tough budget decisions in the near future. Earmarking future general fund revenues would limit the Board' s flexibility in deciding future budget priorities. Therefore, it seems appropriate to refer this issue to the Budget Committee in July, where budget priorities will be established. Further, more will be known in July about federal and state child care legislation. Finally, in July, the Child Care Council will have more time to seek financial support from the cities. ATTACHMENT A Child Care Broker Budget Personnel Broker 25 , 380 Office Assistant (50% ) 8, 000 $ 33 ,380 Fringe @ 23% 7 , 677 $ 41, 057 Operating Expenses Rent 600 Utilities/Maintenance 300 Supplies 250 Postage 150 Telephone 600 Printing/Duplicating 1 , 000 Staff Development 600 Local Travel 600 $ 4 , 100 Administration Overhead @ 15% $ 6, 774 TOTAL 51,931 ATTACHMENT B Child Care Council staff, working with trained volunteers will review each of these and make written comments and -recommendations regarding their adequacy to the Director of the Community Development Department. c. Brokering Function We believe it will be necessary for someone with child care expertise, knowledge of the child care community and knowledge of the ordinance to assist in "putting it all together" . We envision that this child care "broker" will • Provide technical assistance to developers . in understanding the ordinance and the criteria established for the needs assessment/supply survey/response plans. • Develop and dissiminate to developers a list of possible consultants they might use in doing their needs assessment/supply survey/response plan. (We would not make recommendations, but simply offer the developers options) ♦ Facilitate dialogue and communication between the developers . and the Community Development Department, as well as, between the developers and the child care providers . • Facilitate and assist developers in forming collaborative approaches to meetingthe requirements of the ordinance. • Develop materials for developers which will increase their knowledge and understanding of child care and ,offer options of how they might meet the requirements of the ordinance. ATTACHMENT C OFFICE OF THE COUNTY ADMINISTRATOR C 0 N T R A C 0 S T A C 0 U N T Y Administration Building 651 Pine Street, 11th Floor Martinez, California DATE: January 22, 1990 TO: Finance Committee FROM: Phil Batchelor, County Administrator SUBJECT: CHILD CARE ISSUES BOS Policy/Decisions CHILD CARE BROKER 2/24/87 BOS requested CAO/CDD to develop plan to establish & fund child care broker function (approved police for on-going funding from TOT from any hotel built in PH-BART station redevelopment area) 4/28/87 CC Child Care Council was awarded contract for broker function 3/29/88 BOS approved intent to fund the child care broker function from the Transient Occupancy Tax from any hotel built in PH-BART redevelopment area (Embassy Suites). 8/2/88 CDD to negotiate contract with CC Child Care Council-$35,000 for broker position (Committed $10,000 from Co. Housing Bond Trust Fund) 3/13/89 CDD to contract with CC Child Care Council-$35,000 ( $10,000 Co Housing Bond Trust, $10,000 Developer pledge, $15,000 United Way) 9/12/89 BOS approved extension of term of above contract thru 6/30/90 CHILD CARE AFFORDABILITY FUND 2/11/88 Recommended by McPeak-establish CC afford. fund with IOC to explore new revenue sources including TOT 2/23/88 BOS referred to IOC the proposal to establish Child Care Affordability Fund (no revenue was identified to fund) ATTACHMENT D CONTRA COSTA COUNTY REDEVELOPMENT AGENCY DATE: November 1, 1989 TO: Internal Ope io Committee/Child Care Task Force FROM: Jim Kennedy, UeriAy Director-Redevelopment t SUBJECT: Sales &Tiansient Occupancy Tax Estimates Pleasant Hill BART Station Area. ------------------------------------------------------------------------------ ------------------------------------------------------------------------------ This serves to update an estimate provided to the Internal Operations Committee in June, 1988. 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 follows: Estimated Sales Tax and Transient Occupancy Tax (TOT) accruing to the County of Contra Costa from the Pleasant Hill BART Station Area. Year Revenue Source 1991 1992 1993 1994 1995 Sales Tax $67,055 $119,555 $148,055 $472,055 $495,660 Transient Occupancy $527,425 $553,796 $580,165 $638,184 $669,830 Tax TOTAL (Estimate) $594,480 $673,350 $891,275 $1,110,239 $1,165,490 These estimates are significantly lower than 1988 estimates for the following reasons: 1) Sales tax projections no longer include a major sub-regional retail center at Pleasant Hill BART (BART Development site) . A neighborhood serving retail center has replaced the sub-regional center for purposes of these projections. 2) Only one hotel , the Embassy Suites (currently under construction) is assumed in the Transient Occupancy Tax (TOT) estimates. Because of the softness in the hotel market a second or third hotel may never be built. If the market were to improve a conservative estimate would include one additional hotel of approximately 250 rooms in 1995, which would generate approximately 5690,000 in TOT in addition to that shown above. ATTACHMENT E CHILD CARE FUND The Child Care Council currently administers a Child Care Fund which is comprised of a number of subsidy programs . During the current fiscal year, supporters of the Fund include: City of Concord $120 , 000 for children of low-income working parents State Dept. of Ed. $ 92 ,000 for children at risk, GAIN children and low-income children State Dept. of Ed. $ 66 , 000 for children at risk County Dept. of Social $ 35 , 000 for children at risk Services (FACT) Local Employers $ 20 , 000 for children of employees City of Walnut Creek $ 3 , 500 for children- of low-income parents i