ADMINISTRATIVE REPORT

Date: November 17, 1998
Author/Local: P.Coates/6042
RTS No. 186

CC File No. 2402

TO:	Vancouver City Council
FROM:	Director of Community Services, Social Planning
SUBJECT:	Childcare Endowment Reserve Report 1 of 2

CONSIDERATION

A. THAT Council authorize payment of an operating subsidy of up to a total of $36,000 to the Vancouver Society for Children’s Centres for the 12 infant/toddler spaces at Library Square Children’s Centre for the period January 1 - December 31, 1998. Source of funds: City Childcare Endowment Reserve.

B. THAT Council authorize payment of an operating subsidy of up to a total of $72,000 to the Vancouver YWCA for the 24 infant/toddler spaces at the Leslie Diamond Centre for the period January 1 - December 31, 1998. Source of funds: City Childcare Endowment Reserve.

C. THAT Council authorize payment of an operating subsidy of up to a total of $72,000 to Collingwood Neighbourhood House for the 24 infant/toddler spaces for the period January 1 - December 31, 1998. Source of funds: City Childcare Endowment Reserve.

D. THAT Council authorize payment of Phase II start-up funding of up to $110,400 to the Vancouver Society of Children’s Centres to cover the start-up costs for the childcare programs at Dorothy Lam Children’s Centre. This grant is to be disbursed over the period September 1, 1998 to August 31, 2000, at the discretion of the Director of Social Planning. Source of funds: City Childcare Endowment Reserve.

E THAT Council authorize payment of an operating subsidy of up to a total of $24,000 to the Vancouver Society of Children’s Centres for the 24 infant/toddler spaces at the Dorothy Lam Children’s Centre for the period September 1 - December 31, 1998. Source of funds: City Childcare Endowment Reserve.

F. THAT Council instruct staff to prepare an interim Operating Agreement with Vancouver Society of Children’s Centres for the Dorothy Lam Children’s Centre for the period September 1 - December 31, 1998, in keeping with the existing operating agreement for Library Square Children’s Centre.

GENERAL MANAGER’S COMMENTS

The General Manager of Community Services submits Recommendations A to F for CONSIDERATION.

COUNCIL POLICY

The Civic Childcare Strategy, approved by Council October 1990, recognized the need to ensure the availability of start-up and operating subsidies to sustain those new childcare facilities being opened in high density neighborhoods, as a result of rezoning negotiations or City initiated projects. In May 1991, Council approved the creation of the Childcare Endowment Reserve.

On December 15, 1994, Council approved the terms and conditions of the Childcare Endowment Reserve, including eligibility criteria and the process of accessing these funds.

In April 1996, Council clarified that the City Childcare Endowment Reserve was to be established as an interest bearing fund.

Approval of grant recommendations requires eight affirmative votes

PURPOSE

This report is one of two reports to Council regarding the Childcare Endowment Reserve.

The purpose of this report is to:

· authorize payment up to the maximum subsidies available for 1998 as per the approved existing Operating Agreements,
· seek Council approval for the balance of the start-up funds and a 1998 maximum subsidy for the new Dorothy Lam Children’s Centre,
· request that Council instruct staff to prepare an Operating Agreement for the Dorothy Lam Children’s Centre for the period September 1 - December 31, 1998.

BACKGROUND

On April 8, 1996, Council approved childcare agreements covering the period 1995 to 1998 with three eligible childcare operators, the Vancouver Society of Children’s Centres (VSOCC), the Vancouver YWCA(YWCA) and the Collingwood Neighborhood House Society(CNH). The agreements laid out the terms and conditions for accessing infant and toddler operating subsidies and set the maximum contribution level per space per annum for the term of the agreements. Social Planning was directed by Council to administer the Childcare Endowment Reserve funds, to report back on the actual funding spent each year and to seek Council annual authorization of payments up to the contribution limits for each eligible childcare operator.

In November 1997, Social Planning reported on the 1995 and 1996 expenditures and Council authorized the maximum contribution levels for 1997. Council also approved the Phase I start-up funds for the Roundhouse Children’s Centre now named the Dorothy Lam Children’s Centre.

As of November 1, 1998, there is approximately $1,600,000 in the Childcare Endowment Reserve plus the Bentall’s $850,000 contribution on which annual interest is paid.

DISCUSSION

1. Authorization of 1998 Payments covered by the existing Three Year Operating Agreements

The finalizing of the 1997 infant/toddler operating subsidy dollars required from the Reserve by the eligible infant and toddler programs has taken much longer than expected because of confusion regarding the amount of provincial funding available for salaries as the Wage Supplement Initiative (WSI) changed over to the Compensation Contribution Program (CCP). However the 1997 expenditures have now all been submitted, the required operating subsidies verified by Social Planning, and payments made. The three childcare operators are now in urgent need of their 1998 subsidies. It is therefore recommended that the followingmaximum contribution limits be approved as per the final year of the existing three-year operating agreements and that authorization be given to make the necessary payments based on verification of actual expenses.

1998 Maximum Subsidy Contribution - Existing Agreements
Operator	Eligible Spaces	1997 Max. Subsidy	1997 Actual	Recommended 1998 Max Subsidy
VSOCC	12	$36,000	$31,800	$36,000
YWCA	24	$72,000	$72,000	$72,000
CNH	24	$72,000	$65,459	$72,000

2. Authorization for Start-up and 1998 Operating Subsidy for the Dorothy Lam Children’s Centre

The new Dorothy Lam Children’s Centre, the first of five childcare facilities to be built by Concord Pacific, is eligible for additional start-up funding and the 1998 infant/toddler operating subsidy. It is recommended that Council authorize payment of the balance of the start-up funds to VSOCC of up to $110,400 to assist with the start-up costs incurred during the first two years of operation of the childcare programs at the Dorothy Lam Children’s Centre. This grant is to be disbursed at the discretion of the Director of Social Planning based on actual expenses, and any funds not used will remain in the Childcare Endowment Reserve.

3. Preparation of an Interim Operating Agreement for the Dorothy Lam Children’s Centre

An Operating Agreement with an eligible childcare operator is required to lay out the terms and conditions under which the start-up and operating subsidies can be accessed from the Childcare Endowment Reserve and to set the maximum amount of the infant/toddler operating subsidy. This agreement also addresses issues related to the licensing of the childcare operator to occupy and use the City- owned facility. These terms may need to be modified starting 1999 depending on the decisions made by Council regarding the future of the Childcare Endowment Reserve outlined in the companion report.

It is therefore recommended that staff be instructed to prepare an interim Operating Agreement for the period September 1 - December 31 1998, as per the conditions of the existing agreement with VSOCC for the Library Square Children’s Centre. The maximum operating infant/toddler subsidy contribution for this 4 month period will be $1,000 per space for a total of $24,000.

CONCLUSION

The Childcare Endowment Reserve funds continue to be required to support the infant and toddler programs at Library Square, the YWCA Leslie Diamond Centre and Collingwood Village. Start-up dollars and an operating subsidy are also required for the newly-opened Dorothy Lam Children’s Centre. Social Planning recommends authorization of payments of the 1998 infant/toddler operating subsidy up to the contribution levels contained in this report, for the operators who have existing three-year operating agreements.

Council is also asked to authorize the Phase II start-up funding and a 1998 operating subsidy for the Dorothy Lam Children’s Centre and to instruct staff to prepare an interim operating agreement with VSOCC.

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(c) 1998 City of Vancouver