Loading...
HomeMy WebLinkAbout0589.093G) . , < , " . ".' ' .. ' .. , .. November 10, 1993 THE HONORABLE CITY COUNCIL PALO ALTO, CALIFORNIA 10 P.l0 .lto Co .. ualty Chi14 Care &D4 ci~y of Palo Alto CU%rent 9ta~u • .. po~~ &D~ LoDq-~~ Relatloaahip Members of" the Council: Report in Brief At the October 11, 1993 City Council meetin9, staff was directed t~ york 'With PA.CCC and return to Council with a r~col!!Jllended nine-mon'th ~orkplan which vould address PACCC's interi~ financial and program administration needs thrcuqh June 30, 1994, and a p~an to address the lonq-term relationship between the City and PACCC. This report transmits the attached proposal submitted to the city by PACCC and contains statf'5 response to PACCC's proposal. Bagkground on August 26, 1993, council authorized a loan to PACCC of $50,000 to help it lDeet payroll expenses. At the s.al!Ie time, Council directed staff to provide assistance in addressing PACOC's financial .anagement problems, and appropriated another $50,000 to the Finance Departaent for this purpose~ These funds .,i11 be fully expended by December 31, 1.993. The $50,000 does not include the considerable tilfle spent by ether Finance staff, including the Finance Director, Accountinq Manager, and Financial Systems Analyst. Summary of Major Financial Issues City Finance staff h~ve been working at the PACCC central Office since August 26~ Top priority was given to understanding the cash flow situation, in terms of both parent fee revenue and payroll and non-salary expenses. 'It quickly became apparent that the first $50,000 advance (which was repaid thr~u9h PACCC not billing for subeidy payments or subsidy administration for three uonths) was not sufficient to addres.s PACCC's immediate cash flow problellls. Staff subsequently reC01D!l:lended a. $75,000 loan from the city t.o PACCC~ council approved this loan on OCtober 12, to be repaid by ;:rune 30, l.St94. CKR:589:93 • :0.. Paqe 2 PACCC bas no reli~ble financial reports after the audited 1990-91 financial statements. Although preliminary financial statements were prepared for the 1~9~-92 tisc~l yeAr, the financial informa­ tion. containe.d in the.se statements is suspect4 N¢ transactions had been posted to PACCC's ge.neral ledger since May, 1993. No fiscal year-end cloSin9 of the books at June 30, 1993 was performed, &0 that transa.ctions froll. the 1992-513 and the current 1993-94. fi.o;c.al years bl\ve: been c01l!Jl!.ingled~ Financial reports for the 1992-93 fiscal year cannot be prepared until the general ledger has been properly updated and the accounts reconciled. This in turn Means that any .valu~tion of the viability of PACCC operations must be postponed. There is no adopted bUdget 5vailable for the current fiscal }·ear .. Althouqb it appears that PACCC's severe cash flow problems have been resolved tor the short-term, the qeneration of accurate financial information continues to be the hiqhest priority for the City's financial task force at PACCC4 Financial Considerations And projectiqns tl'sinq what information is aVi!ilable, staff bas attelilpted to estiaate what PACCC's onqoing revenues and expenditures would be for an everi1ge 1Slonth during the school year (September t.~rough mid­ June).. rt is important to note that PACCCts summer programs do not have the 83aa cash flo~ profile and will be of concern in planning a lonq tena financial strategy.. It is also important to note that vithin the last two weeks of October J approximately $98 f 189 in delinquent parent fee billinqs was sent out. since the billings were as .uch as six months overdue, staff realistically antiCipates receiving 15 to 85 percent of the total billed. Revenues: Parent Fees Expenditures Payroll Benefits, rents, insurance, other Non-fixed expenditures Net Monthly Income $214,000 .l35 1 CtOO 40,000 25,000 14,000 The above figures are estimates I based on the information gathered by staff froll the past two months ~ transactions. However, the timing of receipt for parent fees ar~ difficult to estizate~ On­ gOinq expenditures total appro~imately $200,000, but the payroll fi<jUre of $1.35,000 does not include a controller I a fUll-ti.ll\e. EXecutiVe Director (4 half-time position is included), nor the .additional accounting; assistance City staff h.as been providing. The non-fixed expenditures are difficult to predict, since there were several months of backloq previous to this ~onth~ O'.R: 589: 93 ----------- I !'" In addition, PACCC's revenue!;. typically drop during the &u.mmer months (mid-June through August) when dema~d for school-age chlldcare decreases. staff was ur.able to estimate summer revenues and expenditures due to lack of financial data. However, PACCC \lOuld need to retain revenues adequate to cover on-qcing expenses as well ~s charges for additional administrative services during ~e sum.er months in order to maintain year-round viability. Reapon •• to £AQCC's Proposal for Interim Plan tbrY June 30 1994 PACCC haa examined severAl options for identifying and obtaining the services neceseary to continue the prevision of high-quality child care services at each of its fourteen centers in Palo Alto and to manage itself as a :financially viable agency. These options included discussions with Child Development Inc. tCDI}~ the california Association for Non-Profits (CAN) and Palo Alto's Senior Coordinating Council (Sec). After assessing these options, PACCC has concluded that the most viable option is one involving COl. PACCC is proposing that it enter into a short-term contract with (COl), a professional child care agency which operates 70 programs st~tewide and administers $10 million in state subsidy funds. CD! would provide financial and adainistrative .a~aqement servicEs on a fee-for-service basis. PACCC ana CDI have delineated four .ajor areas for 'Which COl' Iii service. would be purchased: 1) Hanaqement; 2) Accounting; 3) Huaan R~sources; and 4) Subsidy Administration. PACCC ad:l:lininistration has recognized the immediate need. for an interim plan ~o brinq the financial and administrative manaqement expertise to its operation. community Services staff has been working with PACCC's Executive Director and the PACCC Board to develop the proposed interim plan. Staff supports the proposed contract ~~anqement with CD!. However, staff has the following concerns with certain portions of PACCC'S proposal: Management 1. The relationship between the PACCC Board, PACCC staff, and CDl requires further clarification. While PACCC's proposal recom­ mends that PACCC and CDl "work closely· toqether, the deci­ sion-makinq structure remains unclear. This is especially t.p.ortant qiven that the entir-e PACCC organization will be subject to financial and administrative analysis. CMR:589:9J '----------- • --< Page .. Subsidy Administr~tion 2. PACCC has identified the need for CDl to assess its adminis­ trative policies and procedures for the City's suhsidy contract. While city gtaff aeknow1.eO:qes the va.st i:mprovetlents PACCC has .. ade to the sub&i~y program during the past four months, it remains unclear what internal resources PACCC will utilize to continue to p~operly administer the contract. It is important to .ention the extensive cont~act monitorinq currently provided by the Human services Division, and the need for PACCC to enUl1ciate how the central office 'Mill perform this function. contract oversight Ogmmittee City staff agrees with PAOCC that it should establish a Contract Manaqement Team includin9 members from the City's community services staft and the Finance Department to oversee the implemen­ tation of the contract with COl. PACCC needs to provide further clarification rega, -"ding the specific function of this team and the at .. '!! time inyo]-,ed in participating on this team. Direct City involvaaant in the committee should be limited to Hu..an Services staff. The Finance Department could monitor PACCC's financial operatio~s througb a periodic reportinq p~oce5S. Mmuntina staff supports the level of professional accounting personnel recouended by PACCC that will be provided by CD,I. This should provide PACCC vith the expertise neeessary to successfully conduct dl!ly-to-day financial operations. It is staff's asseSSlDent that the clean-up effort vill not be completed by Dec~r 31, 1993, and that COl finance staff will need to be cledicated to the activities to ensure that it will be. concluded in A timely manner. It is pl~~ed that direct involvement of city Finance Department statf in PACCC financial operat.ions will cease by December 31, .199). R~est tq the City Although the financial operations contained earlier in the report seem to indicate that PACCC should be able to finance the cost of ccntractinq with CDI for the various aanaqement services recommend­ ed, there ra.ains some uncertainty reqardinq the accuracy of these projections. rt is steff's preliminary assessment that the combination of net monthly cash flow and the receipt of the monies frOJI outstanding accounts receivable could generate sufficier,t fundinq for PACCC ongoing operations including the retention of COI. However, in the event that staft projections fall short of current expectations, we support the use of the remainder of the sUbsidy administration contract as a means of dealing with that unlikely situation~ Since the present subsidy administration CJIR:589:93 4qreement is or. It: J:Qonth-to-month basis and does not provide tl1e flexibility to permit access to all remaining subsidy administra­ tion funds as was permissible in past years, staff reco~ends that the subsidy contract be changed from a monthly basis to a contract year ending date of June 30, 1994. This approach is preferable to PACCC~s alternative request for anothar loan. An evaluation of PACOC/s tinancial condition in January, 1994 will be instrumental in determining the viability of this approach as well as PACCC's ability to repay the outstanding $75,000 loan that they received in septeJtbe.r, 1993. strategic Planning Process City staft agrees with PAOOC's asse5B~ent that a team conSisting of members of the PACCC Board, PACCC staff r City staff .. and the community is necessary to provide input into PACCC's development of its lonq-term strategy~ conclusion sta~f continues to work closely with the PACCC Board and staff to assist PACCC in its financial recovery and to assist ths agency in developing a long-term strategic plan to meet the child care needs of thE: communi ty ~ staff will have a better understanding of PACCC's ability to achieve its lonq-term goals when the agency is able to generate accurate financial informQtion~ Onc~ the financial information is known, PACCC will be in a positior, to assess its viability as a community-based child care provider in Palo .Alto~ By directly entering into is. contract with COl to provide management services to the organization, PACCC is strengtheninq its ~bility to emerqe as a financially viable professional child care aqency. CDl will provide PACCC with the necessary child care management expertise th~t will enablQ PACCC to determine how best to serve the comaunity~s need for quality child care services. Recqmmcndatjons staff recommends that the Council: 1 ~ Review and cOmlllent on the attached report from Palo Al to community Child Care .. Inc~ (PAOCC)~ 2. Direct the City Attorney to modify the existing PACCC suhsidy adainistrative contract to permit access to all remaining administrative funds in the event that additional operatinq funds are required~ 3 ~ Dire.ct PACCC to, report back. to the City council on January 24,. 1994 with a status report on PACCC management and finan~ial operations~ CKR:589:9J ------------ .. :- paqa 6 Respectfully submitted, lLEIIE HERTZ Child , Youth Coordinator f!W1~> PAUL THILTGEN o ector Of~:6iiiojl"'ity services AttachJ>ent aIR:589,93 , , ! t " t t ,. , ; , ~ ~ (. -;affi!~~~ )' >" • PALO ALTO COMMUNITY CHILD CARE, INC, REPORT TO CITY COUNCIL OCTOBER IS, 1993 PURPOSE OF REPORT "The pwpose of this report is to respond l(J the City Council's n::qlJesl [01 informatkm about how PAa:c g<J< into IIle financial and management ditflcuilics it is now experiencing and what solutions PACCC is purposing to resolve this crisis both shon term and long Ioerm and what finaoc'.a! assistance from !he City will be needed. BACKGROUND Palo Alto CommuniI)' CbiId Care (I' ACCC) is a non-profit community based organizstioo delivering full-lime and part-time child care servkes for infan.lloddl"" and preschoolen, and at"" scboo! care for cbildree altcnding grades K-5 in !he Palo AlIO Unified ScbooI DisIrict PAa:c cmrallly provides care for more !han 700 childree at fourteen (14) differen' w.,. .. ,d empIoymem for more !ban 80 people. The annual PAa:c btIdget is approlWruiJely $25 million. PACCC began in !he 1970"5 as a porenl-based cooperative organization v.i!h a handful of infaDIItoddler and preschool sires. During !he mid 70 -mid 80's !he eny Ioolmd to PAa:c DOt only as die Cily supp<ll1«I provider of communiI}' based. high quali.y child care but abo as !he city" child care ooordioaIing agency. PACCC provided admillistrntion for die cil)'" cbild care JUbsidy program and provided coosuIwioo servia:s to peop!e or groups wanting 10 ..... or improve qualil)' child care programs in Palo AlIO. In !he mid 1980's. as !he city's support foc Ihese admiDistrali"" flIDClions was wilhdr.l.wn, PAa:c responded by reducing ilS Slaff and !he..moe. provided '" die commu.il)' were reduced oc eliminared. PAa:c ooncenlrat<ld 00 _8 !he provida-of quaIiIy child care programs. The number of PAa:c sites expanded dramatlI:a!ly in !be !ale 1980's wbeo afw ""hooI care ",.. added at aD PAUSD e1emen<ary schoo!w.,. >'" PACCC did 00l incn:a.;e ilS admioistraIion 10 adequately deal wilh Ihal exparuiOlL During !he past Iwo yea1'S addiliooal copacity bas been provided at some of !he schoo! sites where demand COl' after schoo1 care exceeded supply. Today. PAeceS after school care cluld population is approxima!ely 75% of !he 1oIaI-. wiIh infanll_ accounting C ... 10% and preschocl making up !he Ji.ual15%. DutiI>g Ihese expansion periods. PACCC ir=sed ilS ~Iies 10 pro,ide qualil)' communiI)' based child care Ie an ever increasing popu1a1ion. However, PAeces administrative and !inanciaI mIDagrmentcomponcnts did not evolve to socces.sfully operate its "grass. roots" deli"1:'l')' system. 1. Uupn ..... ''''''' growlh wilhout adequate adminis1Jalive sySlemS in pJace to manage !hat growth_ 2_ La.;k of creative Iea<Ie<>hip to fUld allematiye funding soortes 10 offset ro:!octions from !he Ci.y's support 3. High lumo_ in management statTin!he ,"" four years resulling in die inabilil}' to mainLain. develop or modemize administrative SYSlems. '~ ·-.r' PACCC bas DOW entered a period of e'ialuation and transition in ..... hi~h it mU.s.t redefine what is required to mCCl quality child care needs and servir;es wilhi'i.a fi . ..calJy sound and administratively eft1cieru organization. 1he PACCC board of diret.,1.ors and sutff are com mined to this change. CHRONOLOGY OF RECENT CRISIS AND RESPONSES TO DATE Feb. 1993 Resignation of PACCC Controll" May 1993 Resignation of PACCC E=:ouve Directoc July 1993 AdminismUive support from the City reduced to $75.000 ~,..fiscal y_ 199:>-94. As administrative support from the City was red,-=! (nom $130,000 in fly 1991-92 to $100,000 in fly 1992-93 and $75.000 in 19931,94, PACCC did not ru"",.n adequate plan in effect 10 offset tt.ose ""'oetions. 100y -A,g. PACCC B03!d adrnowlcdges the nee4 for SIIUCt1ltlll change whi<;h 1993 could not be accomplished without o\ltside~. PACCC Board meets with Cali!omia Non-Profit Association to explore imerim board. managemenl and' consui:atior .. Aug. 1993 City approves PACCC's ""lues! for all ad"""", o( 550,000 10 cover ir.sufficient cub flow to make payroll City provide>. financial pcr;soo.ne1 assistance to cleon up past year and CID'reIJ' financial re<oo!s. Sept. 1993 PACCC recoostitutes its' Boatd or Directors (see al!aChmen. A) and hires • full time inlOrim Executive Directoc 10 facilitue ne<:<ssary managemen. cnanges. Sept. 1993 PACCC Boatd directs sufi .... d representative< 10 explore thin! party involwment £0£ belp in deIIcl<lping fUWlCialsys"""'. Boatd develops outline fo< shO<t and loog leOn tmtsitiao plans. Sept. 1993 City awro-PACCC request for shon term loan of $75,000 10 talCh "l' with all past due payahles. PACCC agrees 10 rerum 10 the City CotmciI in November with respomes 10 quesboos asked by Coancil and in1erirn fm:mcial plan. Oct. 1993 PACCC mpays Augus. 1993 $50.000 advance. SHORT TERM MANAGEMENT PROPOSAL FOR FISCAL YEAR 1993-94 PACCC BoanI ofDitecl«s.md iIaff haw considered sevetal options 10 deal with the short term resoIUIioos 10 !he im"""'i'" fiDaz>ciai coodition ofPACCC and long range. planning for !he future of PAccc. Expl0m00 of sI!o<t term resolutions included discussion with coosulla,u. """"'" in OOII-profit fiDar><iaI systems and agency orpnizalion, the Senior Cootdirulting Council. Inc. (SeC} and Child Developmeollncorpor.olcd (COn. MItr those discussions it becamo apparent that with !be sbort lime fame in whidJ 10 mal<e substanti<ll changes 10 PACCC. CD! had Ibe resources and _ledge 10 assisI us in reoo.1SIr'UCting • fin.1nciaIJy soond organization for the remainder of the_year. PACCC Boord and staff met with Vern P1asket, CEO of COl and Carol Ande!>On. President of COl, regarding the possibility of contracting with them for mal'agemem se,vi<e< for PACCC for the remaindc< of the 1992-93 fiscal year. The following propooaI is divided into 5 areas: M.".gemen~ Accounting, Human Resoum:s, Subsidy Adminislralion and CoJllr1iC! Oversigh~ COl and PACCC management statT will work clooely together in developing the acmal worlc plan. • I~ i MANAGEMENT: Tasks: CDl consultants wiiJ wad: closely with PACCC ED. rrog'."m Cooroinator And Board. Areas In be re"jewed include, but are no< limite<! to the PACCC SlnJclUre, econumies 0( scale, revenue f:;"I;pOlnStOn, expense reduction. complete overn.ll agency hudgel, human ~ and SUbsidy systems. PersoDnel: Consultation se:rv=:.oes provided by Carol An&rson and other senior !1lal'Iagement emplo)"eS ol CD! which may include the Human Resources Di=IOr, Dire<:toc of Administration. Cbairman. and Controller. Costs: $25lhour .ot 10 exceed $6,()()Q{mo. Tenn of consulting se,,'i<;es 1211193 to 1>'30194. ACCOUNTING: Ta.,ks: May include but are !I()( liml1eil1O the foDowinJ!: warlo: side by side with City staff to tran.o;.itioo financial dean .. up. ~pavise accounting tlSks, inch.ding moodily budget reporting, payroD, accouolS receivable and payable, re,-jew of coupon payment sysICmS in\ernal COlI""", processing of cootnldS, enrollment and sWfing projeclioru and audilS. F!nisb the fwancial clean-up p<'<)O'!>S begun by Cily Firumce DepaI1ment salf, close and audil pre,io", year's tax reports. Accouoting Analy .. will ossist accounting supervisor 10 complete above tasks. COl financial S!aIf ""ill warlo: closely with City Finanre S!aIf during December 10 expedite smooth transition of fi.oaDciaI system5. PenonneI: aa:ounling supervisor and accounting anaIySlIO be hite<! by COl wi<h involvement of PACCC. Execulive Director. HUMAN RESOURCES: S3,6OOImo. S216tVmo. Tasks: administm benefits program, ",,,jew staff rue. for compliance with labor laws, write staff _IS Iwldbool:, complele census reports. and explore HRIS implemenlation feasibility. Undu the guidance of the PACCC Program Coordinator and Executive Director review and develop job description and appraisals. Per.ionneI: human resoorce specialist hired by COL S26401mo. SUBSIDY ADMINI:JTRATJON: TASKS: review subsidy a.dmini.sttatioo including, buy not limited 10. record keeping, reporting SYSlemS In the City, waiting 1i51 proces=.. enroUmenI and anendance , I , P=onmI: Costs: mMitoring and hilling prot:edures. MaJu=. Ie4:Ol1lmendatiOri to PA('''CC regarding staffing respor1stbilitics. consultant set'Vice!. not to c){ceed 80 hours (or the period Decem bcr 1993 throlJgh June 1994. $160<) Term of consulting sen'ice:; 12'119193 '0 6130194 CONTRACT OVERSIGHT: PAOX will =ate. contr.lct management team Ihal will include "'P'="rmlves from the City of Palo Alto. PACCC Bco.rd and Executi", DUec!or. This team will initially mee. wecldy with CDI and Ihrough time relax the freqoeacy to bi-wecldy '" eval""", the effoctivenes.' of Ihe relalion..nip. SUMMARY OF COST OF COl PROPOSAL: • •• ... MOI'i'IllLY COST S6,OOO SS.760 $2,640 WfAL CONTRACT COSTS $42.000 • WfAL $40,320 ••• $7.000 •• $18.200 ••• Sl.JIll!l • $109.120 iDcIicaiI::5. "DOt .. exoccd'" dollar &mOWlL The .amouot of aJOSGIl1rIg sr:rvic:es. nec:ded VOIill be detc:rmird in Ibc: ocmiDg..u.tsas tbe CODb'3C:t for SC'ZVices is. flnaIiz,ed wilb a>i. The S7.DOO e&dmatt ror I::Idit aid tax: prep;nt.iw IU'\'itt$ is also .. "not 10 exceed"" number. The =-::t COA will bc.dtleamiaod 'Wk:II PACCC aad CDI ~ wiib City FinaDoe Staff to ~ __ dcoD-up"" be kit"lIIe cad O(~. Employee ""'" icdude __ By coolnoCling will> CD! for the above services. PACCC will reduce its existing e"l""""'" by $27,000 during the anticipoled seven moolhs of the conlracL To accomplish this PACCC will redoce staff support '" the financial manasement, occounting and blL'Il8!l "'-"""= areas of the opeation during the term of this con_l REQUEST TO TIlE CfIY The preIlminary firumciaI pop:tions from City stiff indica", Ihal PACCC should ~..ave sufficient finan..'iaI stability ID food the CD! con_t without additional support from the City. However. • . "',\ .. '", ""'. ---~ •• 'l-.,'; ~ -- "" /' compJete and accurate ftru".ncials are nol expected before the beginning of January SO risk continues or temponry cash shortages ov~ the coming months. In order to assure PACCC's cootinued stability we're making the following ;eqUC':its: "The City C;'I;lend I line of credit a.gainst the existing suhsldy contract. Th.is line of credit shooJd be ~-ed as a payment uming issue only and will have no effect on the delivery of care !o the dtildren in the subsldy p..rogr.un. -or- The City extend o loan to fund me 00'" of !he CD! proposal for !he m""ths of Docember and January. expocted to be $23.500. After !he tiruutc'.als are complcled. PACCC will be in a position to deresmine wbe!her additional financial L<sistance from !he Ciry will be needed through !he remainder of !he rISCal year _ These might include one of!he [onawing requests: Extension of the tenn., of !he $75.000 IoaIl An additional klCg = IoaIl to help defray Ibe costs of the CDI proposal I'ACCC will reiJJnl to Cily Council a! !he elki of January after firtanc-i21s are complete with a finaoci.aI progress report and a formal request, if necessary. INTERMEDIATE AND LONG RANGE STRATEGIC PLANNING PROCESS The goal of PAeces Straregic Planning Process is to two -fold. Phase _, the intenne<fuae plaDning process, will define and docoment !he dellvery system'and an implomentJllioD plan fQC PACCC cI!ild care servi<eo tImH!gb rJy 95-96. Phase two of the process will look at Ioog range SiTOOtural issues for PACCC beyond 1995. The delivery system must be administratively efficient and financially manageable 10 meet !he quality cbild care standards expecled by !he COI1lJlIIJJWY of Polo Alto. The delivery system must also be capable of responding to cbanges during !he =< fi"" years. The lUst phase of the ~ plan must be finalized by M:uch 15. 1994, to meet PACCC and City budget cycles, and its delivery system in place commencing July 1. 1994, the begimring of the new IiscaI year. The strategic planning process will be gu;de<l by. traru.itioo leadership team made up of PACCC boanI and sta!!; and will inclcde City SIaff and Child Care Task Fo"", and ol"'" rommunity members. This leadership team will can DpOD oommunity momb= and professionals I/) share Ihelr expertise as approj>riaIe. This groopwill meet a minimum of once a month between December 1.1993 and M:uch 15. 1994. Each meeting will focus on a speciIlC componenl 0< subsystem of cI!ild care delivery systems. The olSC ..... ions and finding. of each ses. .. on will be documeJJred and used as ;he iDfonnation base f.,..!he Img ienn stnI<gic plan. Proposed DlafL Agenda for !he Leadership Team Sessions: Dec. Petooptions aDd upiniens: wha! does PACCC provide? Wbat should PACCC provide? The Palo AI", cluld care marlreIplace: an overview of oilier child care provider.; in Palo Alto. Evolving trends of Ibe Palo Alto maricetplare: supply and demand. Infanlffoddler. PreschooL and A&r School OtiId Care and school age .swnmer programs:: wbat are the sim ~ .. .uies and di fferences? Unda what eio:umsIances can !hey be combined? .. Jan. Feb. Fmanci.al nwtag~( and delivery system models for child care: What are t1.e basic components and subsysv.ms'!' Centralized versus site·1Jased financial management ()(her possible source.5 of funding. The committee wiD also recei"1"'e a m~nl updale 00 PAeces cwrenf fmanciaI stability. Su kommittees will be formed to resean:b financial models. Pr=tation on aD delivery 'Y"""" alternatives lVaililbJe 10 PACCC. Recommendations gD the 2 or 3 modeIs continued in vesLigation. Refine tile delivery system rnOOeIlhat will be in place for 1994-95 & 1995-96 and repon bacl: to PACCC Board and Ciry Council willi recommeOOacioo. GrotJp "'...,.,"""'" 10 establish g<>OIs and objectives for tile secood phase tllat WOIIId taIre PACCC beyond 1996 The soeond phase would include loog .,. .... SIra"'gic planning and would taIre place during 1994-95. Issoes. (0 be e;qHored include; more sopbislicated ma"agemmt models !hot would allow PACCC Ie provide a broader ranjlO of children', senices 10 tile oommunity; _ communiI)' seMoe progtacn deli"")' mOOds. e.g. Senior Coordination Council; n",,-profit versus fo<-profi~ commoruty based versus "outside" IIdminisIration and Ioog Imn fund rising possibilities. The result of Ihis planning process would insure tile delivery of qualliy, community based child care Into tile oext century. Gi.." tile reoewt<I rommilment of tile PACCC Board and !he support from tile City IiIld member.< of tile <00IDluni1y. we are OOIIlident PAcxx:can move fOtWald in. productive and liscal.Iy soond llIJI!llI<r to insure tile provision of qoality. communiI)' based child care to tile residents of Palo AlIO.