Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Standing Committee on City Services and Budgets

FROM:

General Manager of Corporate Services and Director of Social Planning

SUBJECT:

Ray-Cam Co-operative Association - Contract Extension

 

RECOMMENDATION

POLICY

CITY MANAGER'S COMMENTS

PURPOSE

The purpose of this report is to seek Council approval for a three year contract extension with the Ray-Cam Co-operative Association for the provision of four social service programs at the Ray-Cam Centre.

BACKGROUND

Ray-Cam Co-operative Association (Ray-Cam), located on East Hastings St., provides services to a diverse community that is challenged by social, multicultural and socio-economic issues in addition to the current problems faced by the Downtown Eastside. Ray-Cam is a non-profit community based organization that provides a wide range of social, recreation and job-training programs to local residents. Over 98% of the recipients of Ray-Cam's services are low income, considered living in high-risk situations and in need of substantial support. This full range of services and programs offered by Ray-Cam have a total budget in 2002 of approximately $1.5 million (see Appendix A).

Within these services and programs, there are four specific social service programs that the City supports by providing funding through an operating agreement. Following is a brief description of the four programs funded by the City:

The City has provided funds to supplement the operating costs of these four social service programs operated by Ray-Cam for a number of years. Ray-Cam received funding from a number of sources other than the City but it was insufficient to meet the full costs of the operation. In 1993, Council approved the transfer of financial support to Ray-Cam from the Community Services grant stream to a three-year operating agreement with a renewal clause. This agreement specified that Ray-Cam would provide four core programs of: childcare, out-of-school care (latchkey), a family program and youth programs.

A further three year extension to the original contract was approved by Council on April 16, 1996, that included modifications to the original terms, then another extension was approved on April 6, 1999. Ray-Cam has not requested any further modifications to the existing contract, and City staff are satisfied that the contract continues to accurately represent the interests of the City in relation to the four programs provided.

2001 Results
The four programs co-funded by the City contract remain financially stable. The total fund balance for the four program funds as of year end 2000 was a cumulative deficit of $19,373. Over the three year period of the last operating agreement Ray-Cam has been able to maintain levels of funding from sources other than the City and has been able to increase program revenues and fundraising efforts to overcome prior deficits. As at the end of 2001 the four program funds have a surplus balance of $ 6,468.

                     2000               2001 Excess Revenue             2001


                     Fund Balance            Over Expenditure               Fund Balance

Day Care Program

   

$ (4,846)

  

$10,203

  

$ 5,357

Out of School Care Program

$ (5,907)

  

$ 4,776

  

$(1,131)

Family Program

   

$ 0

   

$ 0

    

$ 0

Youth Worker Program

 

$ (8,620)

  

$10,862

  

$ 2,242

         

$(19,373)

  

$25,841

  

$ 6,468

* $( ) denotes a deficit

DISCUSSION

The current three year contract with Ray-Cam expired on December 31, 2001. City staff and Ray-Cam staff have met to discuss renewal of the contract, which included a review of the operation, the 2001 financial results, alternative funding sources as well as the ongoing commitment from the Provincial Government.

Ray-Cam submitted a request for City funding of $128,042 for 2002. After review, City staff agree that this is the appropriate level of City funding, in accordance with the terms of the contract.

FUNDING

Recommended City funding is $128,042 for 2002. Funding for 2001 was $119,300. The recommended amount of $128,042 for 2002 represents the required City funding for the excess cost over the other sources of funding available to adequately administer the four programs, as per the agreement.

It is recommended that, for the duration of this agreement, the City will provide the full cost of future negotiated wage settlements as related to the four programs, after taking into account the funds received from other sources. If, for reasons other than negotiated wage settlements, in either 2003 or 2004 this funding level is not adequate, Ray-Cam staff can discuss with City staff to determine an appropriate funding level and City staff would report back to Council, as outlined in the agreement. Specifically, the agreement states that the City and Ray-Cam will reach agreement on the total eligible program costs and the funding which will be available from sources other than the City for these costs.

The total budget for the four programs is detailed in the table below.

       

2002

2001 Difference % Change

City Four Programs

$128,042

$119,300

$ 8,742

7.3%

City childcare grant*

11,600

23,250

(11,650)

(50.1)

MCF** Funding

  

304,700

352,051

(47,351)

(13.5)

Other

      

144,010

70,047

73,963

105.6

       

$588,352

$564,648

$ 23,704

4.2%***

Notes:

* The decline of the City grant is due to allocation. The City grant is made up of two parts: an enhancement grant of $9,450 and an inner-city grant of $10,200. However, of the $19,650 for 2002, approximately $8,050 is allocated to programs outside of these four (as the funding has been provided for specific services). The combined total for these two grants was $23,250 in 2001.

** Funding from the Ministry of Children and Families (MCF) has declined partially because the funding structure changed. The Ministry used to fund the total cost of a special needs child's contract and not collect funds from the parents. Now, if a parent can get a subsidy or pay a portion of the childcare fee for their special needs child they pay that amount to Ray-Cam (and this is reflected in the increase in other revenues section, thus reducing MCF funding). As well, MCF funding includes a Special Contract for children who require support over and above the inclusion contract resources and provides funding for the staffing costs for very special needs children who require one-to-one care to be in daycare. The contract funding follows the child if they go to another daycare so the decline can also be attributed to some of the special contracts being moved or discontinued.

*** The increase of 4.2% is primarily due to CUPE 15 wage settlements and benefit cost increases for medical premiums and extended health costs and some expansion of the programs. The City portion of the funding continues to cover top-up funding for staff costs for the four programs.

2002 Funding Summary
The total budget for the four programs for 2002 as recommended by City staff is $588,352 (see table below) with the Ministry of Children and Families funding approximately 52%, and as such provides the largest portion of funds.

The City of Vancouver recommended funding level is 22% for the top-up of staffing costs for the four programs covered under this contract, plus an additional 2% from grant funding for the childcare program.

Other funding, which includes Ray-Cam program revenue and fund raising and Federal government funds, will provide approximately 24% of the four programs' funding.

Four Program's 2002 Budget

     

Latchkey

Childcare Youth Family Total % Funded

City Four Programs

$ 22,526

$

0 $ 40,227 $ 65,289 $128,042 22%

City childcare grant

0

11,600

0

0 11,600 2%

MCF* Funding

84,200

187,372 33,128

  

0 304,700 52%

Other

  

27,043

92,369 5,000 19,598 144,010 24%

 

$133,769

$291,341 $ 78,355 $ 84,887 $588,352 100%

*Ministry of Children and Families

FINANCIAL IMPLICATIONS

The Ray-Cam Co-operative Association concluded 2001 with a small net operating surplus and has eliminated the accumulated deficit of prior years. Staff are recommending to Council a three-year extension of the operating agreement at a cost of $128,042 for 2002; source of funds to be the Operating Budget.

CONCLUSION

The recommended three-year contract renewal with Ray-Cam Co-operative Association will provide the Association with the funding necessary to operate four needed social service programs:
- Childcare/Special Needs Daycare - Out of School Care (Latchkey/After School)
- Family Program - Youth Worker Program

- - - - -

APPENDIX A

Ray-Cam Budget for its Full Range of Programs
(Includes the City Funded Four Social Programs)

Below is a summary of Ray-Cam's revenue sources, for all programs, including the four social programs, that identifies the changes in those sources of funds since the agreement was last reported to Council.

REVENUE

   

2002

2001

Change % Change

City (four programs)

 

$ 128,042

$ 119,300

$ 8,742

7.3%

City (day care grant)

19,650

23,250

(3,600)

(15.5)

Province of BC

    

469,051

405,148

63,903

15.8

Ray-Cam program revenues

653,765

329,568

324,197

98.4

Ray-Cam fundraising/other

142,921

67,556

75,365

111.6

Federal Government

  

74,261

65,997

8,264

12.5

TOTAL

    

$1,487,690

$1,010,819

$505,696

47.2%*

 

* Increases in revenues are primarily from Ray-Cam program revenues and fundraising/other, as the Association has raised new funds to cover costs of the expansion of their facilities and programs.

* * * * *

cs021107.htm

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