HomeMy WebLinkAbout0503.094--,,-,---' -.
City of Palo Alto
______ .. _. ___ E~ity Manager's.Rep.ort
1'0: HONORABLE CITY COUNCIL
FROM: CITY MA."iAGER DEPARTMENT: c"mmuuity Sen'ices
AGENDA DAn;, No""",be< 14. 1994 CM!!; 503:94
Palo All. c"mmDDlty ChUd Care Open!ioD.oJ a.od fl •• ucl.! Sial u<
Report
REQUEST
The purpose of this report is to transmit FAeCC's status report to the City COlHK'ii.
On April Ii, 1994, Council dire<ted Palo .-J,o Community Child Care (PACCC) to return
in ~'1ober 1994 v.-ith &. 5ti!tus report in Ibe area.s of ;adI11Jnistralion, accounting, buman
res.ource~ and subsidy administration, after (;1)r(!pktio!1 of the COIilract \loith Child
Developmc;nt, Incorporated (CDI). Afs.o at that time, PACCC' was. cJire-..led 10 repon b~c;';
to ('Anndl on its finandal wndition in Octohcr, after completion of the Hs(':al sear, 3nd a[ie,
asse~ing 'the financial impact of its sum!l~er session.
RECOMMENDATIONS
There are. no recommendations for action at this time.
!'Q!.IO' IMP!.ICATIONS
The report does not represent any cbange to existing City policies,
EXEClJ1TyE SIJMlIiARY
PACCC has made substantial progress in all four areas in which it contracted for coru.ulting
services with CDI. The agency continues to slrengilien itsell through the ongoing
implemenlation of r""ommendations made by CDI and PACCC. Transitional Le3den;hip
Team.
As the result of strong leadership from the PACCC Board of Directors, an adequately and
professionally staffed central office, and a team of qualified, dedicated child care
professionals who staff the thirteen cellters, PACCC is re-eme.rging as the child care moeel
it was originally designed to 0..
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Program quality is an important compo"""! of PACCC's provision of ehUd care ,elViees, as
evidenced by the active pa.~icipation of alJ of PAecC's progra.rru. in the narionill
aoc:reditation process. PACCCs '(wwlvement in the accreditation process has already
resu.'ted in quality improvements and ph)"ical enhancements to its programs,
Su«eclul fund-raising: endeavors, ongoing staff training, commitment to (he accreditation
process, actM participation in tbo· City /1' A USD School Age Child Care Commi ltee, and lhe
establishment of linkages with other child eare provide" in the oommu~jty, including the
Family Child Care A.<SOCiation of the Mid·Peninsula, are examples of how PACCC has
moved quickly.uul successfully toward fulfilling its mission of delivering quality child care
:s.erv':ces in parti.ership with the City.
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PACCC has signifi-:antly improved its administ.ration of the City's $352,tXX) subsidy I.':omrad
by CfJntinuing to refh1c its operating pro<:cdures. During the firsr quarter or the current
fiscal year, PACCC sen'ed 53 children with City subsidy funds. During that peTiod, PACCC
maintained an active subsidy waiting list of 24 children. Integral to PACCC"s operation of
the sutlsidy program is a "par.::ntaJ choice" component., which offer.\ subsidized parents the
abillt)' to choose from non-PACCC centers in Palo Alto. During the first quarter of fJ.s.c.aJ
year 1994-9:5, there were four aJfitiat~ centers. in the:: program, City staff continues to monitor
the subsidy l."(mtr.Kt quarterly.
Firumciai l:.sy§
PACCC has prcMded to City staff copies of their audited financial slatements for the year
ending JUn< 30, 1994; revenue and expenditure information for the first three months of the
current fi.s<:al ~ (July through Septemoor); and =h flow projections for the balance of
the fiscal year. Staff reviewed this information and it appears that on", PACCC complete,
repaymenl of the Ci:y loan (in August 1995), they will be in • positive cash flow posilion,
meaning that their operating revenu~s will be S'""fficient 10 cover operating expenses.
I'ACCC L, planning (0 rely on grants and fund-raising activities for any <apital expenses that
are required above and beyond normal operating expenses.
Staff"';11 continue to meet wiLlt PACCC on a .quarterly basis. through the end of this fiscal
year to mnniwr its attainment of its fiscal plan. but believes that FAeCC's progress in
fInancial reporting and accountability is significant, """d would not recommend any further
a.'"'Iion beyond the moni toring already planned.
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"sr·" IMPACT
TbcTe is DO fu.ca1 impact a.s.socialed \\ith tt.is report.
ENytBONMfNTA', "S-Sf:SSMElfi
There is DO oeec.1 fur an eD"Iiron.m:ntal ~ent.
mMJIME""I'S
Palo Aito Community Child C""-TC. Inc,
Repon to Cit). Coun<..-ll N~mhC'r 14, 1994,
PREPARFD BY: Il::nc Hc:1L. HW{J1hli ~rvices Di,:islun
DEPARTMfXr HEAD RE\~-'-~~~~@-(;;! -
PAUL 1lllLTGEN
Director of ComfTIunit'1 Scr...-ices
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DEPARTMENT HEAD REVIEW: ~ t./r;t&'-~
EMU; HARRISON
DirectlJi of Fina[)ce
CITI' MANAGER .... J>J>ROVAL:
CC: N/A
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Palo Alto Community Child Care
Ccmprehensive Child Core S .. roic",
3990 Ventura Ct . P,,10 Alto. CA 94306 ~4!~,) ~g3 2361
PALO ALTO COMMUNI11' CHILD CARE, lNC.
REPORT TO el11' COUNCIL
NOY 14, 1994
The pvrpose of this report is to provide too ci!y coune>i with a statu. 'eport 00 the
administration, human resources, accounting and firlancia! s1a.bt,ity or Palo Artc
Community Chiid Cat. (PACCC) as an aganey. Tr,,"$ also selVes as an update on the
progress PAcec h·as made lowaid agaIn bemg a la.ade{ :n 1M8 plo .. ~sion of qualrty
t::,hlld care and the cocrdina1ion of reiated s.erv:.ce.s f.:,r f-:a~~!Ie-S 1,'\0'1'119 aOO/or lito,;';:;r1g jn
Pato Alto and other chad care prc.'v;ders.
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Sii1C~ Octo!:)er 'i993, PACCC h2l.s ~f3n dB~'\F"rHJ. roS'!:r.i;\l :m~',~eiTierrtir,g ar-:I
documenting admin!.sirative pvlic!es ar;d proc&jIJr~.; noct!ss.3.r}, 10 sUCCe.&s1u:i:.r
operata the organization. Recommenda!io:1s from COl (ktact'lmBnl A) aM th9
Transitional Leadership '"am (CMR:21":!t4) hav& t>&en accomp!!she<J or are in the
process of Iinal implementation,
Ct'ld Cali! and RI~~
PACCC has a renewed oommrtmef'!t to Ir,e communtty to pmyide and be: 8:,n 2dvoca:1e
lor high Quality, a1fcrdable ChilO care and r&iated s5Nicas, PACCC has incrsasad the
number of affiliated centers this year wi!'> the addItion ~I Ch,ldron's Creative L9aming
Center at NixOn Elementary &"..hool and tile Min .. lrrlan1 Car.tOf ~r a total of n;".
elliliales. I\I'fdiated cemers at" eligobla to participate in the PACCC stall OeveIopment
and training, purchase employ .... b&ooflls and enroll famihes servOO by ttl. City's
subsidy program,
PACCC's commitment te improve the quality of care to our dl9I'lls has resutted in
NAEVe AcctediWion lor tile Neighborflood InfarrI T addle< Cooter and Ohione I\Jds
CIIJ). All Of the remainir>q 11 PACCC center; are going Ihrough tile NAEVC
Accreditation Proeas9.
To further PACCCs commitmeni to community outreaci1 an aiiiance haS oeen formed
wi!t11he Family Ctlild care Association of the Mid Peni!"lsula in or, effort to plovide staff
d8Y8«lpmeol and parent 9ducation opportUn~ies, PACCC !'>as applied 10' funding 10
help creale a tending library of boo!<s, periOOicals and develOpmental lools fN child
care professionals and parents in the community. PACCC is sponsoring a series of
wofk...~$ fer parents and prafassionals that addfE:SS devs4Jpmer.til.1 issues that arise
in the course of childhood.
ventura Facility
The use of the Ventura facilily has increased tremendously OV9r l~e Iasl year Vamur.
is lISed by the Sojourner Truth Child D9velopmeT't Center lor
infantilodd\elslpreschoolers, a PACCC e&nter; Head Start, a Santa Clara County
Office of Educat'oOn preschool; Country Day Little School, an ind<Jpeoooot prsscmol;
Heffalump, an independent Pfest:hoot and PACCC affiliate and PMIRS.
Spaee is also used by communily groups fOl Hispanic parent1T19 classes, ESl classes,
the Ventura teen program, a neighborhood youth sports program, summer Aocr&al:on
camp, the mobile recreaiio1l program during ihe school year, Theater Wor..s for
rehearsals, Share!ood program and brown bag lunch programs for S8niors and low
income lamilies, \/9I1MB Neighborhood Association and Mav<!, free cMahood
immunizalion for all ages program.
Volunteers Irom the community have been active at Veotura with th<! ccmmcmty
gardens aM war\( days, planting, cleaning and paiMing tr,s neighwrhood f.,,;ily. TI1e
community response from services clubs, neighborrtOod grovps and the City has ~n
very positive. It shoulo also be no~ed that vaooa\lsm and graft:1i ras s'gnrtic2.mi),
decreased, We are pleased by the increase ir. :ocal nSignborr,ooa use of the faci'~/.
FinMj;laLU~
Section ole) of Ihe Fiscal 1994-95 "'gleement lor Child Co's Scbsidy Program
requirl3s PACCC to submit QlJarterly income statements to the Crty. In acc(\idar.ce wnh
this requirement, we have pro\1ded the City with the results otour first quart~r. Ttle
income st&l:ement shows a 'iOss for the accounting period; however. enrollment and
income in the months 01 July and August are tradrtionally substantally lower than Ihe
remainder of the fISCal year. Tha apparem discrepancy between the budget"" amoum
anct the actual expense is largely aMbutab'e tu the extra payrol! period that iell o'ITmg
the month 01 July. This did not have a negative impact on our cash flow. We are
confident that the Shortfalls wili be made up during the regular school.
In add~ion to the required infomnation, we have prov'.oed Ihe City with a ropy of our
balance sheet as of the end of the first quarter and cash liow projections through JI.lOO
1995. We present this information not only so the City can see the status ollho loan ~
made during tl1e prior fiscal year, bu1 also 10 give some assurance tha!"'e remain cash
flow posmve desp~e the first quarter loss and wil! ablato mae! our current obligations.
We are also pleased to report that for Ihe first Urne in rscam history we ... "'. able to
fund our operations through Ihe summer period .. ~ho~1 drawing upon tho $50,000
advance available from the City.
Section 6{1} of the Agreement requires PACCC 10 subm'~ ao aU<!rt of our fmancial
records lor the 1993-1994 fisCal year. The audtt was conducted by Wiiham L. Myers,
CPA, a pract~ioner with ronsiderabla experience with both governmemal and
nonproftt agencies, particularly child care agencies. PI\CCC is in agreement wrth tne
one finding regarding the absence of appropriate fixed asset comrol and has plans to
correct that deficiency by conducting a complete inw-enlory of flxOO assets during the
current fiscal year.
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Bo!h PAC;:CC finllflCial personnel and Mr. Myers will make themselves available
shoudd City staff have questions abo\J1 the financial documenls submitted.
Once again PACCC would ~k'" to thank the City Council and Slaff for thair suppon
during the difficuft limes 0' IIlIs past year and we are delighted to be able to report 10
you the progress we have made.
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MAHAGEMENI
Stal'.JS Report
CDI Recommendations
10194
Auachment A
IntsnI care ... Con/inoo /0 r9t.1uce the number of mlent slots PACCC provid<Js,
,.., infant '"""', oombi". with pr9SChooi /0 share administrative cost aM
controIstBff expenses until /fie infanl. oant9rs show flO ""'" of mollOY be site.
Fees W<JfiI raised as of July 1, 1994.
vile and STC has been ccmbinad and is now the Sojourner Truth Child
D<IYeIopment Center. Enrollment in Ih. preschool room ~as increased but
we slil cooside1' tt under enrolled.
NITC arod DeC administration has been combined and both tacil~ies are
close 10 capacity.
PACCC, as a matter of policy, has chosen to not reac-ce Ihe number of infant
slots.
Sct.oDI Agfl ... Evafuat. schoolege sites in Septemoor to ensure (ul/enrollment.
If vt,OOr anrcJled, devekJp marketing plan.
o ""arl<elinQ plans aIe beinQ 6eveiDped al WHKC and EKe.
Fiv€ Year Finar,ciaJ Flan ... DByeiop a fiva yesr financial pan that yit3lds .a
1200,0(}() res9fVO 8CCOU'1t at 1M end of rr,. yoo,..
o This will be part of the long range planning process and coordinatad by Ihe
fina"". com m ittee.
Management Inronmation System .. .Dev6iop Ii mathcd whereby monthly or
wookIy rspons can show proi&Ctad reVMIJ(J as wella. past ravenue wilect&d,
pro;&cied staff costs as well as staff costs paid.
o W. aIe now producing actuals and cash projections tIlat are sharad w,th the
Board of Directo~ and PACCC Center Directors
Ra!ios. .. Majma;" oonsistent slatting ratios mrougl1out sll programs· Infant 1:4;
Preschooil:8; ScIJooI Age 1:10.
• Ongoing
FaciIitJe9 ... Obtain tfwj }'NIleasss at aJI sites with a clear undBrstanditlfl about
nr.t cosmo fire and isbiIity insurance and other occupancy cosmo Leases should
a6 be cumwrt and signed. Insurance poiiciss are usually void without signed
lesses.
• In process
Ventura siI8 sllould have usage and/or lease arrangements with all olllet
~ in the facility.
o AccomplisMd
ACCOUNTING
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AaX>unIs Rea.MIbIe ... oo 8OXUn/$ M*11o be writtBn "" as documentBtion is nor ... o role or if wiJ be ""'Y time-constJmlng to r9CCmtruct. PACCC .1IouId _ on r:vrr.-pctJ/alm.
p,.. \!UII,ec:9'abIes have 0000 WTin"" oft, sent 10 oollect1ons or parent
~isso<y not<>s have been prepared and signed and
~ coi9<:ted.
Vacation 8fId SO< Acoruals .. .Need /0 be ~ _ centor directors by
.."",."... 11$ centnJJ """'" rec:<lfds are 001 oomplel& 8.00 correct accruals M*1
10 be 6rItertId info the ADP sys18m.
• In~.
C<ner AenI .. .AcXfIic>na/ 0ftf7t8f roots whicJi lIra not being biI/gd by the PAUSD
need I<> be astablisl>ed end the prope; __ a=ved.
• In process
Cross Training Ac::::ou1Jting pe{W,1r?e} rrged to be ooss~trd,:fjP.>d to do a,~dJ
other's .;00.
• In proc<>ss.
Year--eoo 19'"~~. ,G~...s.B sJ·.·:m~j be deane by Ji.I:Y 31, 1994 *7tn Au.;pac
r9P"9$~nt8tfy'& t,uppJrt
• ACCDMPUSHEDl!'!
Compute< ... The syo!Um may oo9d a rompleta overt>alJl if the oom~1ef network
I1WI19irls 1NIStabIe. ~ ne<lds 818: a<:CXXJrrtmQ. HRIS, word ptCJC$$$ing,
~ c!rid atf& aQ,oitJi>mltion. Ail staff should be IldequataIy IIBj~-ed.
N9twork stabilized. 3 PC's purchased for COOfdlnators and HR, Controllers
system os!x>u\ to be rep(ao9d
• Accounting so/!ware I..iJlIlfacled
• 0!Iler QJIIwaTe 10 be upgraded as woritsWions purchased.
Policies IIwoIving eo..radoo Hou<s ... CorIC'acts /0( children 8lId fitaff shooId be
revi:Iati Enrplo~'8e CCiI&aCtS .,.. an open invitation tor Iitigatioo. The siiminaOOn
01 ",fIItaCt8Q' hcu~ tor chiIcItan MXi/d simpIKy booIckesping tor drectofS 8lId
adlnirlislnrt"..
• Empo,ees areCU'TUfltty-. wiD· 8trtploJ@8S.
• C!liIdron's sc!1eduIes will be evaluated dumg 95196 I>uOget process.
HEAlTH
HeaI!t1 and Safely Training ... Training i5 ooedad on CAL OSHA requi'M16nfs
and otII&I heallh and safar; iss",," (heafth manual. lK:t:id&nt (Spotting.
~ 1Jdr7MistraIIon, communicable a:s811S8S, daily health obs9fVStjon',
IPP, 1tO'1Iars~, AlOS, B8P, DFWP, t:a/Jd washing, use 01 glaV9S,
ordering 01 "'Wk', etc.)
• Healtn manual d""eIoped end lraining in process.
Doctor .. Jdootlt,.. fOOdica/ potS()Il to provide ongoing supporl in advisory role and to _ pojci8s BOO {JfOCIKJurw;
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• ,No progress.
Employee Acoountability .. .Dowe/op {JroCf1dure Iw 6IT".p/oy!H'$IKOO(Jn/ability of
lIiI 00eIthIstJJety ;"SU8$. Develop int9maJ ptOaIdures to ensure ii/I _~'tIiy
requ/relrenla a18 m&I in • ti"*Y rr.anr.er (worl<&r' oompemalioo ~ng, !PP
docum6ntatk>n, bnsing, etc.).
, H&<Jth a'1d safety checI<s III eac/1 of It1e centers completed. Any 00Iicier0es
doctJmented and corrected. Training ongoi<19.
SUBSIDY
Waiting Ust .. .D61'61op a oomputeriled $)!$18m for ma,'lapirl\l IN parMf_ng
list
, Accomplislled.
Policies and Procedures HandiJoo k ... Deveiop written providl>f agroom<>nt
• Acccmplisiled.
Provide Agfe<lf11 errt ... Devo/op ",Tiffen provider ag"fflmenn;
• To !)e ~e:Oped.
HUMAN BESOU8W
Internal Aud~s ... Canduct regular internalal.x.fts of {&x;rm at L<adl sire. · '0 be scheduled.
Policies and procedure Manual. .. SIlouId be developed lor 811 irllorma Cion frx
any emp/<ryee's respoosbIities.
• In process.
8enetils ... S6t ptiicy /or vacaOOn 8CCfIJaJ:; 800 troct. by s=unting personnel.
Audit empjoyee benefit &nroIlmetrt and daOucOOns annually. £VaJuate aoo
redesign benefit pacI<age.
• PoHcy compleled, Benefit package avail'aIion to "" scI>6duIed and
completed in time for !his years budge! process.
Employee Handbook ... CcmpIe(e prior to FsJl enrollment
• . Handbook draft is a1m0Sl completed and wi» be reviewed by peI$OnoeI
committ9EI and staff.
Job DescI iptions ... Complete job d&!Jcti¢OM prior to FBI entnlmsn!, ,,!rpl/tin !<>
staff and ha"" them sign form.
• Job descriplions have been COrl'pleted.
EvaluatiOns .. .Dowe/op evsJuatjons to CDirldde with job desaiption$. J(tIroduce 10
staff and &JCp/ajn ptOC8SS. CIeatty estabiisIl p&rfomIarrce standar<is.
• In process.
Training ... Needs shouki be idarrttfied for every Javel of pa=nt>eI. CoukJ be
done by seli neeas assassment or management SllOuid identify noods.
Speci6cII/y -management, indudng (lrectors s.t,ou/d be trairI&d in E E
ffIIations, ItIbor laws, $l.IpfJrvision and admir>isttalJv& responsitilities.
~ Center Director manual ~ indudes supervision and
management responsibilities.
• 0nQ0Ing training has been in~iated 10 address the above mentioned n%ds.
HRIS .. lmjHm&nt $yst8m within one yeaf.
• A_ell and comparisons 01 available systems statt9<i.
Employment letter ... DellfJiop stBndall1 empioyment leltef.
• Completed.