HomeMy WebLinkAbout0155.094aJ . ,
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February 10~ 1994
Honorable city CO'.mell
Palo Alto , California
~~o COMXt:TlJITY CHILD CARE (,PACCC) STJ..TUS REPC~_:!'.
Members of thp. Co'..:,ncil:
.R..e .. S!'-ort in Bl:iAf
15
At the November 15, 1993 City Counejl meeting, palo .Alto Community
Child Care vas directed to repcrt back. to the Cit:' Council in
January., i994 'With a status report on PACCC's m!':il~~gement and
financial operations, as well as PACCC's plan to repay the $75 1 000
loan it received from the city on october 7, 1993. J'~CCC needed
more time to prepare their response and requested that their report
be aqendized for the Council on February 14 ..
This report transmits the status report subrr,itted to the city by
Palo Alto cClllDlunit}' Child Care.
Respectfully submitted~
~ Yfl. /:I:zd:
ILENE liERTZ }-~
Child Care Coordinator
PACTL THILTG£N
O· ectcr of Ccmmuni~y Services
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Attachment: Status Report
Related ~~s: 5J4:93~ 589:93
CHR:155:94
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II Palo Alto ~ommunity ~hild Care
Ccmprehensive Child CaceSeroices
3990 Vl:.'nturd Cr . Palo Alto, CA 943061415) 493-:.7361
Honorable City Council !\-fe~be.s
Palo Alto, ('.a
February J 4. J 994
PURPOSE OF REPORT
The pwpose of this report is to provkte the City Council with a finaJ"CiaJ vrogrcss report
and propose. repayment plan rO! the $75,000 Joan.
BACKGROUND
PACCC has been in the process of evaluating and defining wnat is required to meet qualily
child care needs and servires within a fiscally WYnd and adminislr<L.'ivc1y effictent
orga,..-nzation. The following chronology is an i nJormational recap of events and respon ~
to date.
Feb. J993
May 1993
July 1993
July -Aug.
Aug, 1993
Sepl 1993
Resignatioo of PACCC Cor.troner
Resignation of PACCC Ex<cutive Director
Administrative support from tfle City reduced to $75,000 for fiscal year
1993--94. As adm[nistrati,,-c support from the O,y WdS reduced from
$130.000 in Uy 1991·n to $100,000 in fly 1992-93 and S75,OOO in
1993/,94, PACCC did nut have an adequate plar. in effect to offset U,ose
reductions.
PACCC Boord ack!lowledg .. the nool for S!Tw:tura] change which 1993
rouid DOl be accomplished without outside assistance. PACCC Board
meet'i v..ith California Non-ProfIt A ssociation to ex.pIme interi m board
management and consultaticm.
City approves PACCCs request for an advance of$...~,OOO:o cover
insufficient cash How to maJ.::e pzyroll. City provides financial personnel
assjstancc 10 clean up past year and curre:1t financial records.
PACCC recoostilutcs i~' BoaJd (Jf DircclJ.'rs (see attachment A).and hires a
fuU time interim EXe;"Cutive Di.J'e(~tor to facilitafe necessary 1lla.J:1dgemer.t
ct~llge~
Sept 1993
sept 1993
Oct 1m
Nov. 1993
Dee. 1993
Jan. 1994
Feb. 1994
PACCC Board directs ,!Off and representatives to explore third party
involvement for help in developing financial s)''items. Board ::.icvelops
outline for short and long !.em! tr.msirion plans.
City approves PACCC req-JeSt for short Ierm Joan of $75,000 to catch up
with all past doe payable .. PACCC agree' to return to the City Council in
November with responses to questions asked by CoullCil and inten'll
financial pl2Jl.
PACCC repay' August 1993 550,000 .dv211ce.
PAce:: returned 10 Cour.cil with • shM = management proposal for the
fiscal y= 199>-94 which included CO!lL"aCting wiL; Olild Development
Inc. for management services.
'The fmanda1 staffon loan from the City transitions out of PAC'CC and COl
begins L1teir work..
PACCC convenes the Intermediate Planning Process team comprised of 3
C..ommunity members. 3 City represelltative~ and 3 PACCC representatives
and work begin.) on designing the delivery system for child care services
through 1~.
Tile financial boo"" are clOS«! (unaudited) for 1992-93 and trail balances
for the fIr>l ~ monl,' of fjy 93-94 have b<en procuced.
I'INANCIAL UPDATE
PAce:: has resolved !he short term cash flow problem and has begun the task of
fmanciaIly re.wucturing the organization to pro\,lde for prompt ~}' ment of bills and
development of • reason.ble cash reserve.
We are requesting an c'l:tcnsion: of L~ $7S,OCXJ loon I{) accommodate the following
rqJayment scbedule~
• $5,000 in each of February, March. April, May ""d JWle for a total of $2-'),000
repaid by the original due dare.
SuspensiCln of payments during Juty, August and September.
$S,(X)() I mootn payment resuming in October unn] full repay rnent by fiscal year
end, June 30, 1995.
Our currCtH cash position \AIoi.ll support a $5,000' month repnyment of the loan through the
school year. However, the Stimmer is a time of iTdrntional cash flow problems, and despite
new str-.d.egies fOf deii vering sum mer care. it i.s G(lf. yet clear that sum mel ca.sh flow will
supJX'lf1 contim!oo payment. It is theref{)re pruoent to wait until we have fcc.ei\'ed summer
revenues to resume payments.
OrganizationaJ Changes currently under discussion have tht! poten ti al to inC'i"t':a.Se funds
available 50 that repayment might be IKX-:ei<rdted Itl October, hov.'cver PACCC would not
recommend further acceleration untH it cash reserve eql!lv.a1ent to one 11100th'S payroll is
established.
•
If Council aprrove:s. this!'equest PACCC will work ',\lith Cit'll staff to form<:lli~ the
repayment of the !oar. as outline<l abo,e. •
Executive Dir .... 1Dr
Palo Alro CnmmLlllity auld Care
Steve: Lytle
President of the Boord of Directors
Palo Arto ComnulI,ity OUld C.are