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HomeMy WebLinkAboutItem 13 - Authorization to update the Master Fee Schedule to add a Childcare Fee Department Name: Parks and Recreation Cost Center: 7003 For Agenda of: August 18, 2020 Placement: Consent Estimated Time: N/A FROM: Greg Avakian, Director of Parks and Recreation Prepared By: Meghan Burger, Recreation Supervisor Aleah Bergam, Administrative Analyst SUBJECT: AUTHORIZATION TO UPDATE THE CITY’S MASTER FEE SCHEDULE TO ADD A CHILDCARE FEE ASSOCIATED WITH PROVIDING CHILDCARE DURING SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT’S (SLCUSD) PERIOD OF DISTANCE LEARNING RECOMMENDATION Adopt a Resolution (Attachment A) updating the City’s Master Fee Schedule, as follows: 1. Add the hourly rate for City childcare at $4.44 per hour to be charged in association with providing full and/or part time childcare during a State of Health Emergency. The following package options may be offered depending upon guidance from the State and County: i. Full Time: $200/week (Monday – Friday, 8 am – 5 pm) ii. 2-Day Option: (Tuesday, Thursday, 8 am – 5 pm) iii. 3-Day Option: (Monday, Wednesday, Friday 8 am-5 pm) iv. Half Day Program: (Monday – Friday approximately 8 am – 12 pm or 1 pm - 5 pm) REPORT-IN-BRIEF Childcare in 2020 – Part of the City’s META Goal for Economic Recovery This report presents a summary of the planning efforts conducted by the City’s Youth Services Program to provide childcare to San Luis Obispo school children during the Fall 2020 term. The Council adopted META Goal for Economic Recovery includes childcare as part of the strategic objectives. On July 16, 2020, San Luis Coastal Unified School District (SLCUSD) announced that Fall 2020 will be distanced learning, consistent with State of California’s directives, resulting in an increased need for full-day childcare. Historically, in non-COVID-19 times, the City has provided before (less than an hour early drop off) and after school childcare to school aged children who are enrolled in TK-6th grade at five City school sites. This recommended action assumes that distance learning will be in effect through the end of December 2020. This report does not contemplate plans beyond calendar year 2020 as not enough is known at this time and staff will return to Council as more information becomes available and experience is gained from providing this extended service. Item 13 Packet Page 155 Staff recommends a fee of $4.44 per hour for childcare in a State of Health Emergency. Staff also is also proposing to allocate $43,000 in funding received from CAPSLO and SLCUSD facility savings (in existing Parks and Recreation Operating Budget) to be used as a scholarship fund. DISCUSSION Background 1. State and County Guidelines for Providing Childcare. Staff’s planning efforts for the modified program and fees are based on adhering to published allowable group sizes, which requires a staff to child ratio of 1:14 and a recommended 6-foot distancing at all times. The City must follow both State and County guidelines, which includes Community Care State Licensing, during this health emergency. 2. Utilize the City operated Summer Camp model for basis of fall programming. The City successfully ran a seven -week Summer Camp, full days, serving over 60 campers per week at three camp sites, from June 15 – July 31, in compliance with CDC regulations for childcare and summer camps. Based on CDC regulations for childcare, childcare programs will continue to run at a limited capacity and require additional space to accommodate children, as well as increased staff hours to manage the sanitization and safety of the site. 3. SLCUSD Announces Distance Learning on July 16, 2020. In partnership with SLCUSD, the quarterly facility usage fees of $14,200 has been waived during the temporary distanced learning period and SLCUSD has agreed to provide additional room space at several City school sites for the City’s Youth Services Program. 4. Community Outreach. The City administered a survey on July 22, 2020 to past and current childcare users, as well as SLCUSD families (who perhaps were not previous users). 449 families responded. Of those, 298 families indicated a need for childcare in the fall (some with multiple children), and 196 families requested full-time care (defined as Monday-Friday 8 a.m. to 5 p.m.). Additional families indicated a need for specific days or a half -day option. 5. Prioritizing essential workers. As part of the childcare needs survey/initial sign-up, families are asked if they are essential workers. While in pre-COVID-19 times, programs were available on a first-come, first-served basis, during this health crisis, City staff will prioritize spots for self - identified essential workers. Youth Services staff will prepare to make spots available in Phase 2 for families in need, named by SLCUSD principals. 6. Hours of Operation and Location. At the writing of this report staff anticipated only running full-time care, however families seem to be equally in need of part-time care and so it is likely that the City will run both full-time and half-day programs starting in September 2020, with the first session in August being strictly full-time care. Item 13 Packet Page 156 7. Enrollment and Selection. In order to provide the most equitable access to limited childcare spots, the City used a lottery system to assign spaces. On August 1, 2020, staff used a random number generator to pick names from the lottery list. Essential workers were given top priority. As of the completion of this report, there were 400 children in the lottery system with 136 children offered spots (all from essential worker homes). Proposed Program Overview – The “Bubble” Approach Under Best Case Scenario Using a “Bubble” approach, City staff has planned to initially open three sites (Phase 1) and consider expanding to a fourth site or expanding rooms at the original three sites (based on SLCUSD facility availability) to increase capacity (Phase 2), should staff resources be available. Notably, hiring is anticipated to be a challenge based on the summer camp experience, State licensing requirements, and distance learning by Cal Poly and Cuesta Community College. Because of those challenges, staff is pursuing a phased approach. Training and safety requirements are time intensive. Table 1: Program Overview Bubble Approach Following a 1 staff to 14 children ratio approach per room (3-4 rooms per school site). *Staff will overlap, ensuring there are often 2 staff in the room to ensure social distancing and maintain sanitization standards, as well as work with SLCUSD staff to support the rigorous academic demands. Dates and Hours Phase 1 Mon-Fri: 8:00 am – 5:00 pm Phase 2 Will add more rooms or a fourth site and at that time evaluate possibility of a Half-Day and/or a 2 or 3-Day per Week option if the demand is great enough. Registration and Fees Weekly Rate: $200, based on an hourly rate of $4.44 Families may request a payment plan to pay by the week, although registration will span a three to four-week period, depending on the month. Facilities CL Smith Elementary: 42 children; Sinsheimer Elementary: 48 children. Bishop’s Peak Elementary: 46 children; Phase 2 add a classroom at each site - TBD children served TBD Who Would it Serve? School Age children, Grades TK-6 Safety Protocols to be followed (CDC Guidelines) Include, but not limited to: • Check-in station for families with temperature checks and health screening questionnaire conducted by “Safety Monitor” • Social and family groupings procedures • 1:14 ratio per classroom, per State regulation • Sanitization of rooms and playground equipment in between class uses • Segregation of outdoor space by room • On Site “Safety Monitor” doing hourly cleanings of all rooms, equipment, restrooms, etc. • Sanitization station for toys that have been used • Hourly hand washing of participants • Staff wear masks throughout the day (awaiting updated information on Item 13 Packet Page 157 requirements for children) • Assigned seating area for meals • Snack provided as pre-packaged only • Procedures in place for COVID positive staff or participants, in compliance with Public Health and CDC recommendations. Changes to the Approved Master Fee Schedule Staff recommends establishing a reduced hourly rate for City run childcare during distanced learning from the currently adopted $5.25 to $4.44. Both rates would be approved by Council. During distanced learning, if childcare can be provided at school district sites the following childcare package options could be made available, again dependent upon State and County health orders and staffing availability. 1. Full Time: $200/week (Monday – Friday, 8 am – 5 pm) 2. 2-Day A Week Option: (Tuesday, Thursday, 8 am – 5 pm) 3. 3-Day A Week Option: (Monday, Wednesday, Friday 8 am – 5 pm) 4. Half-Day Program: (Monday – Friday 8 am – 12 pm or 1 pm - 5 pm) Based on analysis and comparable rates of other agencies providing similar services, staff believe this rate to be fair to support working families impacted by the SLCUSD distance learning school notification. The YMCA is offering similar programming in San Luis Obispo and is charging $175 per week. The City of Arroyo Grande is offering similar programming and is charging between $175-$195 per week. If the City charged the current $5.25 hourly rate, the City would recover more than 100% of the program costs and so staff recommends reducing the hourly rate from $5.25 to $4.44. The reduced hourly rate proposed assumes that Council supports continued subsidy to the staffing and operating costs of this Youth Services program consistent with the adopt ed Fiscal Policies for the 2019-21 Financial Plan at High Cost Recovery (60% - 100%). Recognizing that the additional cost of childcare (paying for 45 hours of care per week as opposed to 15 per week) will financially impact some users, staff has allocated $43,000 of CAPSLO payments and SLCUSD facility savings to use as a scholarship fund. In addition, SLCUSD will support families in need through the Community Foundation. Finally, the City continues its partnership with CAPSLO-Child Care Resource Connection, which permits qualified families to use City childcare without paying upfront for services (City staff bills CAPSLO-CCRC on their behalf). Policy Context The budget policy for cost recovery for Recreation Programs is located in the 2019-2021 Financial Plan (Page 475), and reads as follows: Item 13 Packet Page 158 Childcare services are deemed a High-Range Cost Recovery service at (60% - 100%). Public Engagement Since the original childcare program closure in March (when normal school year registration occurs), staff has communicated with past and potential users via email, website, and social media updates regarding a shift in programming and delay in registration awaiting decisions from SLCUSD. Staff continues to attend SLCUSD public forums, have direct contact with administrators, and share best methods for staying current on information. On July 22, 2020, a survey and original lottery sign up was to all Parks and Recreation childcare users, past and present, as well as to families at six school sites. The SLCUSD Superintendent’s weekly newsletters have also provided information about need for childcare as local families navigate distance learning. CONCURRENCE The City’s Finance Department concurs with the recommendation. ENVIRONMENTAL REVIEW The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: Yes Budget Year: 2020-2021 Funding Identified: Yes Item 13 Packet Page 159 Fiscal Analysis: Funding Sources Total Budget Available* Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $997,873 State Federal Fees Other: Total To run youth services programming during the SLCUSD distance learning announcement (August 2020 - December 2020) will require an additional $126,043 in staffing budget compared to the budget allocated to run normal before and after school programming. The projected increase in revenue for this time period is a maximum of $215,460 and assumes fully attended (as projected) and fully paid for by attendees. Two variables which create uncertainty in cost recovery include: scholarship need and attendance (could be varied due to impacts of COVID on students). Additionally, most other Parks and Recreation Programs and other General Fund revenues are limited potentially creating cash flow impacts to the General Fund hence the business need for increased revenues and the policy direction to not fully subsidize this program. The revenue projections are calculated at 100% capacity. See Table 2 and Table 3 below with the original and adjusted expenditure and revenue budgets. Table 2: Youth Services FY 20-21 Adopted Expenditure Budget Original FY 20-21 Budget Adjusted FY 20-21 Budget (*only increased program costs for Aug-Dec 2020) Change Staffing $855,543 $981,586 $126,043 Operating $142,330 $142,330 $0 Total Budget $997,873 $1,123,916 $126,043 Table 3: Youth Services FY 20-21 Adopted Revenue Budget Original FY 20-21 Budget Adjusted FY 20-21 Budget (*modified programming Aug- Dec 2020) Change Revenue $549,040 $764,500 $215,46 Cost Recovery 55% 68% Item 13 Packet Page 160 Note that the cost recovery for the original FY 20-21 Budget is lower than the High Cost Recovery policy (60%-100%) approved by Council for childcare services; this is due to program uncertainties surrounding COVID-19. Staff adjusted revenue budgets down to account for no summer programming to maintain a conservative revenue budget. Staff was able to run summer programming and will present adjusted revenue assumption with the October budget revision. The adjustment will correct the cost recovery to approved levels. Notably a Summer Program was held though for only 7 weeks and about half the number of students of a normal year. ALTERNATIVES 1. Council could decide not to authorize proposed new fee. This alternative is not recommended because the City would have to charge the current hourly rate which is higher than the proposed fee and could be a barrier to families in need. 2. Council could request a modification to the new fees. This alternative is not recommended because the fees were calculated based off cost recovery goals and other local childcare provider rates. Attachments: a - Draft Resolution Item 13 Packet Page 161 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ADOPTING NEW FEES AND AMENDING THE 2020-21 MASTER FEE SCHEDULE WHEREAS, Section 2 of the City’s 2019-21 Financial Plan, titled “User Fee Cost Recovery Goals” defines the level of cost of services for the various City services; and WHEREAS, Section 2(G) of the City’s 2019-21 Financial Plan provides that cost recovery for Recreation Programs directed to youth and seniors should be relatively low. In those circumstances where services are similar to those provided in the private sector, cost recovery levels should be higher; and WHEREAS, Section 2(G) of the City’s 2019-21 Financial Plan set cost recovery goals for child care services at High-Range Cost Recovery (60%-100%); and WHEREAS, on June 2, 2020, the City Council approved the City’s Master Fee Schedule listing all applicable service fee levels for fiscal year 2020-21; and WHEREAS, San Luis Coastal Unified School District (SLCUSD) announced on July 16, 2020 that Fall 2020 schooling would commence via distance learning due to COVID-19; and WHEREAS, over 300 working families have requested childcare during the months of August – December 2020; and WHEREAS, the City will provide modified childcare programming to kids from 8:00 a.m. – 5:00 p.m., an expansion of before and after care; and WHEREAS, the City has not previously provided a full day childcare program during the school year and as such a full-time care rate did not exist; and WHEREAS, the standard school year hourly rate is based off of the program premise of before and after school care, and families are used to paying for 14 hours of care opposed to 45 hours of care per week; and WHEREAS, the ability to provide childcare during the SLCUSD distance learning period supports the economic recovery of the City, supporting the benefit to providing care at a lower hourly rate while maintaining the cost recovery policy goals approved by Council in the City’s current Financial Plan; and WHEREAS, the Master Fee Schedule will be updated to reflect all new fees becoming effective July 1, 2020. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: Item 13 Packet Page 162 Resolution No. _____ (2020 Series) Page 2 R ______ SECTION 1. The Parks and Recreation Department will begin charging fees for Childcare during a State of Health Emergency as set forth in Exhibit A to this Resolution. These fees will be adjusted annually between any Cost of Services study with the Consumer Price Index Los Angeles/Riverside. Upon motion of Council Member _____________, seconded by Council Member ______________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on _____________________. ____________________________________ Teresa Purrington City Clerk Item 13 Packet Page 163 Resolution No. _____ (2020 Series) Page 3 R ______ Exhibit A New Fees Parks and Recreation Fees Fee Description FY 2020-21 Rate Youth Services State of Health Emergency Childcare Fee Hourly $4.44 Weekly $200 2-Day Option (Tuesday, Thursday) $80/week 3-Day Option (Monday, Wednesday, Friday) $120/week Half Day Option (Mon-Friday 8am -12 pm or 1pm – 5pm) $100/week Item 13 Packet Page 164