ADMINISTRATIVE REPORT Date: June 27, 1996 TO: Vancouver City Council FROM: Director of Community Services, Social Planning SUBJECT: Childcare Capital Allocation - Expansion of Childcare in City-Owned Buildings RECOMMENDATION THAT Council approve a capital grant of $67,850 to the Pooh Corner Daycare Society for the renovation of the Pooh Corner Daycare to allow for expansion of up to 13 new childcare spaces; source of funds to be the Childcare Capital Funds. MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of the foregoing. COUNCIL POLICY Approval of grant recommendations requires eight affirmative votes. PURPOSE The purpose of this report is to inform Council of the proposed expansion of Pooh Corner Daycare centre and to recommend approval of a capital grant. BACKGROUND The number of children requiring childcare in the West End has been steadily increasing since 1991, but the number of spaces available has actually decreased because of the recent closure of the privately-owned Marigold Daycare Centre. The City Childcare Co-ordinator has been working with West End childcare operators to explore potential expansion options. Pooh Corner Daycare, a 24-space toddler/3-5 group day care, is located at 975 Lagoon Drive on the edge of the Stanley Park, in a heritage "B" home owned by the Park Board. Although the building is large and could accommodate more children, the daycare is only licensed to use one of the three floors available because of building code deficiencies. The daycare's fundraising efforts to date have focused on maintaining the existing licensable space, upgrading the playground, improving security, repainting, and replacing old appliances. The volunteer Board members have recently raised over $70,500 to fund the upgrading projects. Over the past ten years, Park Board has invested an additional $94,000 in major structural and site improvements. At the request of the Childcare Co-ordinator, the Pooh Corner Society undertook a full review of their expansion potential from a capital and operating perspective. DISCUSSION Pooh Corner Daycare Society has determined that if the current heritage facility could be renovated to meet the relevant standards/codes, up to 13 licensed childcare spaces could be added, wheelchair accessibility improved and the long term financial viability of the service enhanced. Pooh Corner Daycare Society is requesting a civic contribution to the proposal outlined in Appendix I. The proposal includes a Building Code Upgrade - sprinklers, a renovation of the cramped cubby area on the ground floor, and a major interior renovation of the upper floor and attic loft. This will improve the overall safety standards of the building, increase indoor play space by over 1/3 and create much needed storage space. It is anticipated that the total costs will be approximately $135,700. Increased operating costs will be entirely offset by increased revenues from user fees. The Pooh Corner Daycare building is a City-owned facility, so the proposed expansion is eligible for consideration under the City-owned Childcare Capital program. A civic grant of $67,850 will provide Pooh Corner with the leverage needed to raise matching funds from the Ministry of Women's Equality. This request for funding is consistent with the childcare capital grant program criteria. The opportunity to add up to 13 new childcare spaces within an existing City-owned facility at a reasonable cost is supported by the Childcare Co-ordinator, particularly as the addition of spaces will enhance the long term viability of the Pooh Corner Daycare service. Pooh Corner's request is therefore being recommended. CONCLUSION The West End is in urgent need of new licensed childcare spaces. A renovation of the existing Pooh Corner Daycare, located in a Park Board heritage home would add up to 13 new spaces at a projected cost of $135,700. Pooh Corner has requested civic support. Staff are recommending a childcare capital grant of $67,850 and the board of Pooh Corner has agreed to raise the balance from other funders. * * * * *