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HomeMy WebLinkAbout020122-06.4 ADMINISTRATIVE STAFF REPORT 6.4 TO: Mayor and Town Council February 1, 2022 SUBJECT: Resolution No. 4-2022, establishing guidelines for use of the Town’s Child Care Fund BACKGROUND In 1989, the Town adopted an ordinance imposing a fee on new development to assist in providing child care facilities within the Town. The fee was based on the shortage of existing facilities and the demand for child care created by new development. The ordinance (codified at Chapter 32-126 of the Danville Municipal Code) provides that the fees deposited into the Child Care Fund may be used for any of the following purposes: • To establish school-age child care facilities on SRVUSD campuses • To purchase land for development of preschool or school age child care facilities • To construct or improve child care facilities Since adoption of the fee, the Town has: loaned funds to Kids Country to establish facilities at school district sites; helped fund the Town’s purchase of portables for use as teen centers at the three SRVUSD middle schools in Town; and, loaned funds to a non-profit child care provider for renovations and improvements to a newly acquired site for their facility. While the original ordinance established the parameters for how the fund can be spent, it does not provide any guidelines on administration of the fund or priorities. At the Town Council’s study session of November 9, 2021, the Council directed Town staff to prepare guidelines for the future use and administration of the fund. DISCUSSION While the ability to provide new child care facilities is limited by the lack of available sites, there is a developing need to expand and/or or rehabilitate existing facilities. This includes those owned by Kids Country, the Town and the nine existing private child care facilities in Town. The proposed guidelines focus on those uses of the fund. The guidelines proposed in the attached resolution are intended to provide generally applicable rules for use of the Child Care Fund, allowing Town staff to work with eligible child care providers to develop plans for use of the Fund. The guidelines include the following: Guidelines for use of Child Care Fund 2 February 1, 2022 • Explicitly stating that the Fund can be used for the expansion and/or renovation of existing facilities. The Child Care ordinance and General Plan policies establish a goal of providing safe child care facilities that meet all applicable standards. As some existing facilities age, capital renovations are necessary to maintain those standards. • Clarifying that, except in unusual circumstances, the fund will be used to make loans, not grants, to child care providers. While the details of any loan can be negotiated (term, payment schedule, etc.), the Town’s past practice has been to structure loans so that they become interest free if the provider remains in business during the life of the loan. That would be the standard procedure going forward. • The typical limit on a loan would be $50,000. This ensures that there are sufficient funds available to have multiple providers obtain loans at any given time and that the Town can reserve funding for maintenance of the Town-owned teen centers located at middle schools in Town. It should be emphasized that any appropriation of funds from the Child Care Fund requires approval by the Town Council. Thus, should a particular project arise that does not fit squarely within these guidelines, the Town Council would still have the ability to approve funding for that project, consistent with the underlying ordinance. PUBLIC CONTACT Posting of the meeting agenda serves as notice to the general public. FISCAL IMPACT None. Any use of the fund requires separate approval by the Town Council. RECOMMENDATION Adopt Resolution No. 4-2022, establishing guidelines for use of the Town’s Child Care Fund. Prepared by: Robert B. Ewing City Attorney Attachment: Resolution No. 4-2022 RESOLUTION NO. 4-2022 ESTABLISHING GUIDELINES FOR USE OF THE TOWN’S CHILD CARE FUND WHEREAS, Policies 19.08 to 19.10 of the 2030 Danville General Plan encourage the provision of an adequate supply of quality child care facilities in the community; and WHEREAS, Chapter 32-126 of the Danville Municipal Code requires new development to pay a specified mitigation fee to assist in the establishment and maintenance of quality child care facilities as called for in the General Plan, which revenues are accounted for in the Town’s Child Care Fund; and WHEREAS, Chapter 32-126 provides that the Fund can be used to purchase land or to construct or improve child care facilities within the Town; and WHEREAS, any appropriation from the Child Care Fund requires approval of the Town Council and it would be beneficial to provide guidelines for use of the Child Care Fund to assist Town staff and child care providers in evaluating priorities and eligibility for funding; now, therefore, be it RESOLVED, that the Danville Town Council establishes the following guidelines for use of the Town’s Child Care Fund: • The Fund may be used to pay for expansion and/or renovation of existing child care facilities if the proposed work assists in providing a safe, quality facility. • Funds may be loaned to eligible child care providers on an interest free basis. While the Town Council may approve a grant to a child care provider, such a grant would only be appropriate in unusual circumstances. • The maximum amount of a loan to any provider shall not exceed $50,000. • The Town shall reserve sufficient amounts in the Child Care Fund to provide any needed renovation to the Town’s Teen Centers, located at middle school campuses within the Town. DocuSign Envelope ID: 0DD2D629-6D4D-45F6-8E05-1DA517108139 PAGE 2 OF RESOLUTION NO. 4-2022 APPROVED by the Danville Town Council at a regular meeting on February 1, 2022 by the following vote: AYES: NOES: ABSTAINED: ABSENT: ______________________________ MAYOR APPROVED AS TO FORM: ATTEST: _______________________________ ______________________________ CITY ATTORNEY CITY CLERK DocuSign Envelope ID: 0DD2D629-6D4D-45F6-8E05-1DA517108139