HomeMy WebLinkAbout2001-12-17 City Council (6)City Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: HUMAN RESOURCES
DATE:
SUBJECT:
DECEMBER 17, 2001 CMR: 452:01
APPROVAL OF RENEWAL AGREEMENT WITH CHILDRENFIRST,
INC. IN THE AMOUNT OF $53,000 FOR BACKUP CHILDCARE
SERVICES FOR CITY OF PALO ALTO EMPLOYEES ~
RECOMMENDATION
Staff recommends that Council:
Approve and authorize the Mayor to execute the attached renewal agreement with
ChildrenFirst, Inc. in the amount of $53,100 for backup childcare services for a one year
term commencing December 20, 2001.
Authorize the City Manager to exercise the option to execute a second renewal agreement
to renew the contract for another term commencing December 20, 2002, at the rate
specified in the Renewal Agreement (Attachment A), provided the City’s desired service
level remains unchanged, ChildrenFirst, Inc. is responsive the City’s needs, and the
quality of its work is acceptable during the term of the contract.
BACKGROUND
In 1998, the City Manager created an interdepartmental committee, comprised of
representatives from the Human Resources, Community Services, and Administrative
Services Departments, to explore ways the City might address its employee retention and
recruitment challenges through the provision of "work/life" benefits, including child care,
elder care, and flexible scheduling. The Work/Life Committee identified backup childcare
as a worthwhile benefit to improve job satisfaction and performance by providing employees
with an alternative when their regular childcare arrangements fall through. Backup childcare
could be utilized, for example, when an employee’s regular child care provider is ill, regular
child care center is closed for an in-service day or when his or her work schedule has been
changed resulting in a temporary gap in child care. Employers have found that backup care
benefits not only those employees with children who use it, but also their co-workers whose
workload can be adversely impacted by the absenteeism caused by child care problems. It
is estimated that every one-dollar invested in backup care yields three to four dollars in
savings due to improvements in productivity, retention and recruitment.
CMR: 452:01 Page lof 3
On December 13, 2000, the City Council approved a Resolution to amend the Compensation
Plans to include backup childcare as an employee benefit. On December 26, 2000, the City
entered into a one-year Participation Agreement with ChildrenFirst, the national leader in the
design, development and operation of backup childcare centers. This center provides quality
care in an educational and safe setting for the infants through school-age children of parents
whose employers are members of the center.
DISCUSSION
Since its inception, the backup childcare plan and the services of Children_First have been
received very favorably by employees (see attached article) and met the Plan objective of
improving morale, productivity, recruitment, retention and commitment.
The initial annual cost of $26,000 was a one-time charter membership rate and the
membership cost for subsequent years is based upon actual utilization and inflation. Based
upon actual utilization by City employees during the ftrst nine months, the contracted
number of visits available to City employees per week will be increased from 4 visits to 6
visits, effective upon execution of the renewal agreement. In addition, the renewal
participation agreement will allow employees to use ChildrenFirst Centers anywhere in the
Bay Area, such as San Francisco.
RESOURCE IMPACT
Membership costs for the second year (December 2001 to December 2002) will be increased
to $53,100 which includes a 10% municipal discount. If the City chooses to execute a
second renewal agreement (for December 2002 to December 2003) for the same usage levels,
membership costs for that third year would be $57,600. Funding for the increase cost is
available in the current and proposed budget in the General Benefits and Insurance Service
Fund.
POLICY IMPLICATIONS
This request does not represent a change in existing policies.
ENVIRONMENTAL REVIEW
This is not a project under the California Environmental Quality Act (CEQA).
ATTACHMENTS
Attachment A: Renewal Agreement with ChildrenFirst, Inc.
Attachment B: Employee letter "In the Loop".
CMR: 452:01 Page 2of 3
PREPARED BY: Leonard Zucker, Manager, Employee Benefits
DEPARTMENT HEAD:
ROUNDS
Director of Human Resources
CITY MANAGER APPROVAL: ,
EMILY HARRISON
Assistant City Manager
CMR: 452:01 Page 3of 3
ChildrenFirs?Inc?
Participating
Company:
Liaison:
Title:
Address:
Telephone:
Facsimile:
E-mail:
Participation Agreement
Renewal
: Cit~ of Palo Alto
¯ Mr. Leonard Zucker
Employee Benefits
Manager
250 Hamilton Ave.
Palo Altor .CA 94301
650=329-2235
650-327-3809
leonard zucker@,city..~l.o:alto.ea_u s
ChildrenFirst Inc. Local Office:
Account
Manager:
Title:
Address:
Telephone:
Facsimile:
E-mail:
Shelby Newton
Director, West Coast Client
Services
550 South Hope Street
Terrace Suite 235
Los Angeles, CA 90071
213.280.4443
213.622.7693
snewtor~@,ehild renfi~st. ,eom
Participation Agreement, as amended (original date):
Location of Ceater(s):ChildrenFirst Palo AltoUses per Week by Center:
Term: 12 months
Annual Membership Fees:
December 20, 2000
___Up to 6
Comraencement Date:December 20, 2001
Year 1:$53,100
Year 2:$57~600
Other:
Special Terms (attach, if any):Yes X No
_Childj’enFirst Inc. ("ChildrenFirst") and Participating Company hereby agr~ to renew the
Participation Agreemen.t ("Agreement") on the" ~errhs provided above. All the terra.~ and
conditions of the Agreement shall remain in full force and effect except as modified by this
Renewa! and the attached Special Terms, if any.
Executed under seal as of the date below.
Parti,:ipating Company ChildrenFirst Inc.
City of Palo Alto
By:By:
Its duly ~ t) t~Its dully authorized: Date: 12..-[ ~b I ~
75 F~deral Street, Boston, Massachusetts 02110 Phone: 617-646-7000 Faxl: 617-646-7070
-_www. childrenfi.r~t, c9_~
8/00
Childrenl-:irst veryaay
Childcare? Not a !~roblem. Then my family moved out of
the area, my mo~er-in-law returned to work and my hus-
band’s grandmothei: was diagnosed with cancer. So as
you can imagine, I was very relieved when I heard about
the City’s back-up childcare benefit. Being a full-time
working mother of five and a wife, having backup childcare
gave me one less thing to worry about. There aredays
when the teenagers have school and the younger o.nes
don’t and Grandma is not available, so I registered my
three younger children with ChildrenFirst. The staff is very
professional and friendly. My husband and I completed
the necessary paperwork including a photo of everyone we
authorized to pick up..the children.
ChildrenFirst is not a place where the children play all day.
The center has areas for the
different age groups with vari-
ous activities from arts to
~,omputers~ Itshours are 8:00
a.m. to 5:45p.m. durihg the
week. Parents pro~vide lunch
and the staff provide a great
learning experience. My
youngest enjoyed herself so much
that she wants (o go to ChildrenFirst
everyday.
ChildrenFirst
3 Palo Alto Square
(650-) 493-3777
It’s a relief know!ng that my children can go to a safe
learning environment when family is not available.
Thanks City of Palo Alto and ChildrenFirst!
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